Roxgold's robust Burkina Faso feasibility rocks stock
Shares in Roxgold Inc (CVE:ROG) gained more than 6% in heavy volumes on Monday, after announcing a robust feasiblity study for its high-grade Yaramoko project in Burkina Faso.
In afternoon dealings the Toronto-based junior was off its highs changing hands at $0.65, up 3.2% on the Toronto Venture Exchange. Around 2.2 million shares in the $153 million company had changed hands compared to the usual daily average of 430,000.
Roxgold's share price is up 46% since the start of the year after announcing a string of good drilling results from the West African nation and a number of financing deals to push the project forward.
Yaramoko stands out as a project thanks to a combination of a high-grade deposit containing probable reserves of 759,000 oz of gold at an average grade of 11.83 g/t gold and some of the lowest costs in the industry – all in sustaining costs of $590 an ounce.
The Yaramoko feasibility improves on the PEA and calls for a $106 million underground mine producing 99,500 ounces on average annually for an initial 7.4 years. Construction starts end-2014.
Roxgold owns 100% of Yaramoko, but the government of Burkina Faso is entitled to 10% of the project after the formal award of permits.
Burkina Faso with a population of 16 million people, is the continent's fourth largest gold producer after Mali and has commissioned eight new mines over the past six year.