Canadian Mining Journal


GOLD: Feasibility and financing lined up for Semafo’s Natougou project

BURKINA FASO – Semafo Inc. of Montreal says the feasibility study is positive for its Natougou gold project 320 km east of the capital, Ouagadougou. The project boasts an after tax 5% net present value of US$262 million, an after tax internal rate of return of 48%, and a payback period of 18 months with gold at US$1,100 an ounce.

Semafo plans to begin construction by the end of this year, and the first gold pour is targeted for the second half of 2018. The study covering the first three years of production puts annual output at 226,000 oz and all-in sustaining costs at US$374 per oz. During that time, the average head grade will be 5.72 g/t Au. The maiden open pit reserves are 9.6 million tonnes grading 4.15 g/t Au or 1.28 million oz of gold.

The initial capital expenditure will be US$219 million, including $42 million for pre-stripping and US$18 million as a contingency.

With development in mind, Semafo has amended its financial facility with Macquarie Bank by increasing it to $120 million from $90 million. The rate is set at LIBOR plus 4.75% per year. The expanded facility combined with the company’s cash position of US$167 million at the end of 2015 and cash flows from ongoing operations, is expected to cover the development of the Natougou project.

Detailed information about the Natougou project is available at

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