Page 61 - pd294-June21-mag-web_Neat

AFRIcA

ustralia’s trio of established West African gold producers
A have made strong starts to the calendar year, while the
likely next cab off the rank continues to turn up one impres-
sive drill hit after another.
Perseus Mining Ltd and West African Resources Ltd reported
quarterly production increases of 29% and 11% respectively for
the March period, with the former achieving commercial produc-
tion at its third West African mine, Yaoure, on the very last day of
the three-month reporting window.
While Resolute Mining Ltd suffered a 5% drop in group out-
put, the 37,217oz churned out from the Syama sulphide circuit
was the highest quarterly total since 2016. It followed the ear-
lier good news that the company’s Bibiani licence had been
restored by the Ghanaian Government. Other standout hits from recent drilling were 4m @ 26.05 g/t
All three miners appear on track to achieve their full-year gold from 63m (including 1m @ 50.75 g/t), 12m @ 3.31 g/t from
guidance. 93m (including 2m @ 17.31 g/t) and 3m @ 8.43 g/t gold from 159m
(including 1m @ 24.06 g/t).
Meanwhile, Tietto Minerals Ltd struck a project-best hit of 5m
@ 109.06 g/t gold from 99m (including 1m @ 532.05 g/t) at the AG More than 5,000m of core samples are currently being pro-
South deposit, part of the Abujar project in Cote d’Ivoire. The core cessed ahead of an update to the current 3.02 moz resource at
is pictured right. Abujar which is expected later this month and a DFS in Q3.

Roxgold since its early days at Yaramoko. million, NPV of $US380 million and IRR of
“Today, by combining our companies, 49%.
we gain access to a platform for continued Early-stage construction works have be-
growth in one of the most prolific gold regions gun at Seguela with commissioning of first
in the world,” Ganoza explained on the con- ore tentatively pencilled in for late 2022.
ference call. “Seguela is a great project and continuing
“This is not just a combination of quality to get better…it is class-leading in all catego-
assets. Equally important, we are bringing ries,” Criddle said.
together two teams of high performers in the “The DFS is really just a snapshot in time
respective jurisdictions, and this is one of the that will be outdated as we advance the many
things I am personally most excited about. value-optimisation opportunities at this ex-
We’re creating a very potent business with av- ceptional project. Those opportunities include
erage projected annual EBIDTA of $US500 depth extensions at Ancien and especially at
million from 2021 to 2023.” Koula where the deep drilling is significantly
Despite being impacted by COVID-19 last extended at the base of the deposit. It’s clear
year, Roxgold still exceeded its production that an underground story is emerging.”
guidance at Yaramoko and is forecasting Roxgold has also continued to report a
output of 120,000-130,000oz at an AISC of plethora of strong exploration results across John Dorward
$US895-975/oz in 2021. its portfolio, including at the Boussoura re-
Roxgold appears to have made a very gional project where hits of 35m @ 4.1 g/t
promising start to 2021 with the 35,308oz pro- gold and 2.7m @ 59.5 g/t were recently inter- continued to turn and keep delivering new ar-
duced from Yaramoko in the March quarter sected. eas for expansion and high-grade zones like
up 9% on the output from the same time last A maiden resource estimate for Boussou- Koula and the recently discovered Sunbird.”
year. The company also recorded improve- ra, about 180km south of Yaramoko and only Dorward, whose future beyond completion
ments in a number of financial areas, includ- 10km north of the Cote d’Ivoire border, is slat- of the merger remains unclear, said his expe-
ing EBITDA (up 39% to $US27.8 million) and ed for release in the second half of the year. rience in West Africa over the past decade
net income (up 105% to $8.6 million). AISC of Ganoza said the exploration upside in Rox- had been the highlight of his career so far.
$US963/oz was in line with guidance. gold’s portfolio was one of the main reasons “It’s difficult to name a more vibrant region
Only a week before announced the pro- why Fortuna decided to make a move on the for gold development over the past 10 years
posed combination with Fortuna, Roxgold established West African player. than West Africa,” Dorward said.
reported the highly anticipated findings from “We first learned about Yaramoko back in “While many jurisdictions assert that they
a feasibility study on its Seguela gold project 2015 when the mine had a five-year mine life are mining-friendly, countries such as Burkina
in Cote d’Ivoire. Using a base case gold price and here we are six years later with a 5-6 year Faso and Cote d’Ivoire actually walk the walk
of $US1,600/oz, an initial 1.25 mtpa operation mine life,” he said. and have been proactive in attracting direct
is expected to deliver average production of “We’ve had deep exchanges with the ex- foreign investment through mining.
133,000 ozpa over the first six years, with es- ploration team and we believe Yaramoko “One fact that I have been keen to pro-
timated peak production of 151,000oz occur- continues to offer opportunities for further mote over the years is that it literally took five
ring in the fourth year. discovery. The team has four drill rigs on site years from discovery hole to first production
Pre-production capital for Seguela is esti- and we’re just very upbeat about the potential at Yaramoko. There are very few countries
mated at $US142 million, with average cash at Yaramoko. where this can be achieved and we are well
costs of $US567/oz and AISC of $US832/oz “Seguela speaks for itself. The team con- on track to delivering a similar timeframe at
over the preliminary mine life of nine years. tinues to deliver consistent results in spite of Seguela.”
Other key financial estimates for the study them being focused on development, engi-
were LOM after-tax net cash flow of $US536 neering and feasibility work. The drill rigs have – Michael Washbourne

aUSTRaLIa’S PaYDIRT JUNe 2021 Page 61