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AFRIcA

Resolute back on track at Syama

esolute Mining Ltd has shrugged off proves positive, the company expects de- “We are blasting more than we are min-
Rprocessing issues which afflicted it last cline development to begin early in 2021 ing and hauling at the moment, but we are
year and is now focused on fulfilling its Af- with a 12-month construction timeline. building up for success in later years,” he
rican potential, according to managing di- “We are excited by the high-grade said. “Sub-level caving operations can be-
rector John Welborn. shoots we are hitting and all indications come very successful rock factories if run
Resolute saw production from its flag- are for low capital requirements because correctly.”
ship Syama operation slip to 46,000oz of our use of long-hole stoping methods Mining rates hit record tonnages of
in the September and December quarter and the significant infrastructure already 190,000t in the March quarter, 95% of the
after it was forced to shut down the sul- in place on surface,” Welborn said. overall target for the fully automated un-
phide circuit and refurbish the ore roaster The Syama oxide circuit has been vital derground mining
at the mine. That work was completed in to overall operations during the roaster’s Syama’s recovery is opportune for Res-
December with the March quarter show- refurbishment. Tabakaroni produced olute given the company has divested its
ing the start of a rebound with 57,541oz 36,101oz gold from open pit oxide opera- only Australian asset in Ravenswood.
produced from Syama in the period. All- tions in the March quarter which made up Welborn said the company was satis-
in sustaining costs also reflected the im- the bulk of Syama’s gold production given fied with the results – despite the rampant
provements, falling from $US2,157/oz in the recommissioning of the roaster was Australian gold price in the months since
the December quarter to $US1,083/oz ongoing. the price was set – and said the $50 mil-
in the March quarter. Welborn said both “That oxide mine performed well and lion convertible note meant Resolute
numbers were set to continue improving. the pressure of the transition to under- would continue to participate in the mine’s
“The impact of the roaster issues in the ground at Syama was eased because of success.
September and December quarter saw the contribution of the oxide resources,” The sale of Ravenswood coincided with
significantly elevated costs. There was Welborn said. “And, there is sufficient a wider company rebalance which also
significant improvement on the December oxide resources to give us time to get an- saw a revising of the balance sheet.
and September quarters and we expect other sustainable underground ore source Resolute raised $194 million in a two-
that improvement to continue,” he said. [from Tabakaroni].” tranche placement and share purchase
Recoveries at Syama improved to 75% Oxide exploration has continued along plan in January and rearranged its debt
for the March quarter following the roaster the Syama belt with results produced af- finance in March, replacing existing
refurbishment with levels of 80% expected ter the quarter including hits of 7m @ 23 $US195 million high-cost bridging and
to be achieved in the June quarter. Life- g/t from 17m and 23m @ 7 g/t gold from project loans facilities – part of 2019’s ac-
of-mine recoveries are estimated at 85% 8m at Syama North and 10m @ 7 g/t from quisition of Toro Gold – with a $US300 mil-
which Welborn said would be achieved by 141m and 50m @ 5 g/t from 132m at Taba- lion syndicated senior debt facility.
the end of 2020. karoni. “It has resulted in a much simpler bal-
The turnaround at Syama was vital for Welborn said the oxide exploration ance sheet with the balance of debt re-
Resolute following last year’s decision to would continue but the company didn’t duced from $US426 million on December
commit itself fully to an all-West African expect to make further Syama-sized dis- 31 to gross of $US308 million on March
portfolio. coveries. 31,” chief financial officer Stuart Gale said.
In January, the company announced “The reality is if there was a very large The company also bought out Tau-
the sale of its remaining Australian asset, oxide orebody on the belt, we would’ve al- rus Fund Management’s 1.1% royalty on
the Ravenswood gold mine in Queens- ready found it. The opportunity is to find Mako, acquired as part of the Toro trans-
land, to EMR Capital for $50 million cash more of those smaller satellite deposits,” action last year.
upfront and a $50 million convertible note he said.
set at 6%. Welborn said the sale was a While oxide mining will continue, Reso- – Dominic Piper
culmination of a long-held ambition to be lute is eager to see sulphide production
an African-focused producer with Syama hit forecast levels. While the plant is still
at its heart. recovering, Welborn was delighted with Underground mining rates at the fully
“We have ambitions for Syama to be underground mining performance. automated Syama mine are at 95% of
a long-term 300,000 ozpa producer,” he long-term targets
said. Attention has now switched to Sy-
ama’s future with a PFS on taking the
Tabakaroni mine underground set for re-
lease later this year.
“This quarter will provide the evidence
of where that ambition comes from,” Wel-
born said. “With Syama underground set
to produce 260,000 ozpa and with the
Tabakaroni underground there is clear op-
portunity for a long-term production base.”
The current PFS is based on under-
ground sulphide resources with Resolute
intent on incorporating that ore feed into
the Syama sulphide circuit. If the PFS

aUSTRaLIa’S PaYDIRT MaY 2020 Page 51