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MINING |Roxgold
ROXGOLD
West Africa-focused gold firm builds on a transformative 2019
Resource Global Network
MINING |Roxgold
2019 was a transformative year “With an average head grade of 9.5 g/t, we produced 142,204 oz of gold, generating for West Africa-focused gold significant free cash flow, while we continue explorer and producer Roxgold. to see improvements on our per tonne The Canadian firm delivered operating costs thanks to the increased a record gold production sum mining and processing rates.” of 142,204 ounces (oz) from its Yaramoko mine in Burkina Côte d’Ivoire expansion Faso over the entire year. In addition, Roxgold expanded into Côte Yaramoko is an underground d’Ivoire with the acquisition of the Séguéla mine complex comprised of two Gold Project from Newcrest in April. The TSXproducing zones – 55 Zone and listed company quickly got to work at the Bagassi South. The former began advanced exploration project, which hosts the Antenna gold deposit within its 3,298 km operation in October 2016 and has consistently delivered a high land package. return on capital since, while the latter came into commercial The Antenna deposit consists of near surface, potentially open pittable mineralisation production at the end of Q3 in and is located near existing infrastructure 2019. The increased capacity including grid power, transport and water from mining these two deposits resources. allowed Roxgold to process record tonnes in Q4, with the In January, Roxgold announced an updated plant reporting an average NI 43-101 mineral resource estimate of 7.1 throughput rate 30% above million tonnes (Mt) at 2.3 g/t for 529,000 oz of nameplate capacity at over 1,400 gold in Indicated and 5.2 million tonnes (Mt) at 2.8 g/t for an additional 471,000 oz of gold tonnes per day (tpd). 2
in Inferred. “Yaramoko had an exceptional quarter to finish the year, as we saw record tonnages
“Séguéla has been an exceptional acquisition
from the combined operation of 55
for our company and is really starting to take
Zone and Bagassi South,” says Roxgold’s
shape. When we acquired the project last
president and CEO John Dorward. “This
year, the Antenna deposit was well drilled by
outperformance was achievable due to the
the prior owners.
flexibility built into the plant design and the tireless optimisation work of our team.
“This meant we had a good understanding of what was there, and we recognised that it was very attractive with highly prospective
Resource Global Network
MINING |Roxgold
early and advanced stage opportunities.
g/t gold from 133 metres. In the updated
Since getting our boots on and our drills
resource, Ancien accounted for nearly half of
in the ground we have been excited to see
the new Inferred ounces with 224,000 oz of
indications of the real potential of the project.
gold an exceptionally high grade of 6.6 g/t for a near surface target.
“We understood that Antenna and its 500,000 oz plus of near-surface mineralisation could
Meanwhile, targets like Boulder and Agouti
be the cornerstone deposit for an open pit
continue to demonstrate the near-surface
operation. However, we now believe the real
potential of several of the satellite targets
upside may come from the satellite targets,
surrounding the original Antenna deposit.
including Ancien, Agouti, and Boulder,” Dorward reveals.
Drilling Séguéla
“I am very excited by Séguéla’s significant upside potential, notably at the Ancien deposit which remains open at depth
Roxgold has been rigorously testing these
and along strike, as well as the potential
satellite targets over the last six months with
within the Boulder-Agouti corridor and the
considerable success, including the most
additional 22 highly prospective targets that
recent results from Ancien in January, when
have been identified within the Séguéla
a headline hole returned 42 metres of 16.97
Project land package.
Resource Global Network
“We continue to have all hands on deck at
Here Dorward is referring to Roxgold taking
Séguéla, with four rigs turning, and we are
the Yaramoko property from virgin drill
eagerly anticipating further results over the
hole to producing gold mine in five years,
coming months.”
and from feasibility study to commercial production in just two years.
Based on the exciting recent drill results from Ancien and the other satellite deposits,
The company will also be focusing on an
Roxgold revised its timeline of economic
ongoing resource expansion programme
studies for Séguéla to incorporate the
at Yaramoko, which is four years into its
mineral resource growth from outside the
originally outlined seven-year mine life.
Antenna deposit. The company expects to
The operation continues to have a strong
publish a preliminary economic assessment
record of resource and reserve replacement,
(PEA) in Q2 and a feasibility study by the end
maintaining a resource inventory above
of the year.
700,000 oz since starting production.
“We believe Roxgold’s history will repeat itself
Following the completion of the Bagassi
as we look to rapidly advance the project
South decline development, Roxgold expects
towards production on time and at cost.”
to see an increase in capital spend at Yaramoko to secure the future of the mine.
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MINING |Roxgold
“We believe Roxgold’s history will repeat itself as we look to rapidly advance the Séguéla project towards production on time and at cost” John Dorward, Roxgold president and CEO
Resource Global Network At the 55 Zone, Roxgold will develop a dedicated underground drill platform 600 metres below surface for further infill and depth extension drilling in H2. This will also put the company in a position to start testing for parallel mineralised structures which are characteristic of similar shear-hosted systems.
Burkina Faso security concerns Roxgold’s continued investment in the Yaramoko mine provides a much needed vote of confidence to Burkina Faso’s mining sector at a time when investor trust has been severely shaken by a recent fatal attack on several buses carrying mineworkers to a gold mine in Eastern Burkina Faso. On November 7th, A total of 39 people were killed in the ambush attack on public road approximately 40 km from Canadian firm SEMAFO’s Boungou Mine. Despite this shocking severity of this incident, Roxgold has re-emphasised its faith in Africa’s fourth largest gold producer. “Burkina Faso is facing some challenging times. However, in my opinion it remains one of the world’s most mining friendly jurisdictions,” Dorward asserts. “We are fortunate to be operating in Western Burkina Faso, which is a more populated region of the country and, therefore, more secure versus the remote East and Northern portions.
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MINING |Roxgold “Regardless, security is a growing issue, not only for Burkina Faso, but for mining districts worldwide, so we continue to work with the government, our communities, and our employees to ensure we have a safe working environment. Safety starts with people, and we believe that security starts with your relationship with the communities in which you operate.” As such, Roxgold has made multiple commitments to the communities close to the Yaramoko mine in recent years, from building local supply chains to having a workforce that is over 90% Burkinabé. Many of these local employees hold permanent senior positions and therefore
John Dorward, Roxgold president and CEO
Resource Global Network take home significantly higher incomes than
price for exploration and development-
what they otherwise would. This money
ready assets,” says Dorward.
supports households, flows through the local economy and contributes to new commercial
“As a high margin producer, with a
activities in the area.
strong technical team, we have the cash
A gold firm with a niche
flows and talent to jump on projects and advance them up the value chain.” This
After witnessing a year of rising prices and
alludes to a broader acquisition strategy
heightened mergers and acquisitions in the
in the West Africa region, building on
gold sector, Roxgold believes it is in a strong
Roxgold’s current position in Burkina Faso
position to take advantage of the current
and Côte d’Ivoire.
conditions in the investor market. However, Roxgold’s internal targets for “We are seeing the big producers getting
2020 centre on achieving production
bigger while the juniors and developers tread
guidance targets at Yaramoko, advancing
water. This is creating an intriguing niche for
Séguéla towards a construction decision,
companies like us, as we believe we are well
making additional exploration discoveries
positioned to capitalise on the current low
in both countries and ensuring the continued safety and security of its employees and communities in which it operates.
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Published by Anderson Murray Media Ltd
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