Volta Resources scales back plans for Kiaka mine; stock down 18.75%

TORONTO - Shares in Volta Resources Inc. (TSX:VTR) closed down nearly 19 per cent Friday after the company announced it was scaling plans for its flagship Kiaka gold project in Burkina Faso.

The company cited current market conditions and lower gold prices for the decision to look at a lower risk and smaller scale development plan.

On the Toronto Stock Exchange, Volta shares were down three cents at 13 cents.

Volta said the Kiaka project is a potential large scale development that is "highly leveraged to benefit from gold prices exceeding $1,350 per ounce."

Bullion was trading near US$1,280 on Friday.

"Recognizing the near-term shift in gold prices, the company in consultation with its technical and financial advisers, believes it is prudent to review a lower risk development approach on a smaller scale utilizing a mining plan which will result in a higher grade of ore processed," it said in a release.

The company said it will review data collected to date from the current feasibility study to review its options.

"Fortunately the Kiaka project lends itself to be selectively mined and processed because of the presence of clearly defined higher grade zones that exhibit excellent continuity occurring within the broad zone of mineralization," it said.

Volta Resources has a portfolio of gold exploration projects in Burkina Faso and Ghana.