Roxgold anticipates strong 2019
Roxgold (TSX: ROXG; US-OTC: ROGFF) expects its Yaramoko mine in Burkina Faso will produce between 145,000 and 155,000 ounces this year at cash costs of $440-$470 per oz. and all-in sustaining costs of $765-795 per oz.
The company expects to have a strong year with the addition of Yaramoko’s second high-grade underground mine, Bagassi South, which is expected to reach commercial production in the second quarter of the year.
Last year production from Yaramoko reached 132,656 ounces of gold, exceeding guidance of 120,000 to 130,000 ounces. The company expects cash costs and AISC’s for 2018 will come in at between $450-475 per oz. and $740-790 per oz., respectively.
Roxgold’s expanded processing plant is ramping up and recently recorded throughput of 1,231 tonnes per day—12% above nameplate capacity.
The upgrades included a secondary crushing circuit with a throughput of 100 tonnes per hour; the conversion of the SAG mill to a ball mill; expansion of the carbon-in-leach circuit (two extra adsorption tanks and an additional thickener); expansion of the gravity circuit designed to recover 70% of head grade consisting of an additional Acacia leach reactor and two electro-winning cells; and additional raw water storage and power reticulation infrastructure.
The Yaramoko mine is situated in the Houndé greenstone belt region in the Province of Balé in southwestern Burkina Faso. The property is about 200 kilometres southwest of the capital city of Ouagadougou.
Yaramoko consists of two gold deposits: the 55 Zone, a fully operational underground mine, and Bagassi South, which is ramping up. Roxgold completed the mine build in mid-December, on schedule, and $2.8 million under budget.
Roxgold expects to spend $10-12 million on exploration at Yaramoko this year, and at the end of 2018 had about $60 million in cash and $38 million in long-term debt.
This story first appeared on The Northern Miner.