Bagassi long section showing ore reserve mining blocks. (Image: Roxgold)
BURKINA FASO – Toronto-based Roxgold has received permitting approval for the development of the Bagassi South underground gold mine. Bagassi is part of the Yaramoko project 200 km southwest from the capital city of Ouagadougou.
The Bagassi project has a pre-tax net present value (5% discount) of $68 million (all U.S. dollars) using a gold price of $1,300/oz. The internal rate of return will be 75% and the payback 1.4 years.
The proven and probable reserves are reported as 1.8 million tonnes grading 11.5 g/t gold or 662,000 oz. of contained gold. There are also measured and indicated resources of 1.3 million tonnes at 17.13 g/t and inferred resources of 669,000 tonnes at 16.1 g/t gold.
Bagassi South has a pre-production capex requirement of $8.7 million (including contingency) for development of the underground mine. Sustaining capital will add another $25.0 million to the costs.
Underground mine construction and development is to begin in Q1 2018.
Roxgold has filed an application for an extension of its Yaramoko mining permit to include the Bagassi South deposits. The Burkina Faso government is expected to make a decision on the application in Q2 2018.
The latest technical report is available at www.Roxgold.com/yaramoko.