Toronto-based gold miner Roxgold
says it's on track to meet the upper end of its guidance for 2020 of 120,000-130,000 oz. gold at its Yaramoko mine complex in southwestern Burkina Faso.
The mine, located 200 km southwest of Ouagadougou, produced 33,557 oz. gold in the third quarter, bringing total production to date to 98,749 oz.
The mill at Yaramoko processed 131,029 tonnes averaging 7.7 g/t for the quarter, with recoveries of 98.2%. Throughput, which averaged 1,424 t/d, exceeded nameplate capacity at the facility by 29%.
The company generated strong cash flows during the quarter, ending the period with US$56 million in cash, after selling 30,401 oz. of gold at US$1,887 per oz.
“Roxgold is pleased to report another positive quarter of operations from the Yaramoko Mine Complex, as our employees, contractors and local communities have all joined together to ensure a safe and secure working environment,” said John Dorward, president and CEO. “The processing plant continues to outperform, averaging throughput of 1,424 tonnes per day, as mining volumes were supplemented with lower grade stockpiles due to ongoing COVID-19 travel restrictions and distancing protocols requiring adjusted scheduling of mining personnel.
Last month, Roxgold received approval for its Environmental and Social Impact Assessment for its Séguéla gold project in northwestern Côte d'Ivoire. A feasibility for the project is underway and expected to be completed in the first half of 2021, followed closely by a production decision. Roxgold expects it could pour first gold at Séguéla in 2022. The next steps in the permitting process are the mining exploitation permit and completion of the the mining Convention negotiation process.
A PEA released in the spring for the project outlined potential for an 8-year mine life with production of 100,000 oz. gold per year at all-in sustaining costs of US$749 per oz. being fed by several open pit mines. With an initial capex of US$142 million, the study projected a payback period of only 1.2 years. At a 5% discount rate, and using a gold price of US$1,450 per oz., the project's after-tax net present value was estimated at US$268 million and its internal rate of return at 66%.
Since the PEA, the company has made the Koula discovery at Séguéla, which has returned drill highlights including 4 metres of 109 g/t gold and 19 metres of 26.1 g/t gold.
For the remainder of 2020, the company will be continuing with infill, expansion and satellite target drilling at Séguéla and underground drilling at the 55 Zone at Yaramoko.
It also plans to update reserves and resources before the end of the year, and to release drill results from its third asset – Boussoura gold project in Burkina Faso, 180 km south of Yaramoko, near the border with Côte d'Ivoire.
For more information, visit www.roxgold.com