Fortuna Silver to build open-pit gold mine at Seguela, Ivory Coast
Fortuna Silver Mines Inc.‘s [FVI-TSX, Lima; FSM-NYSE; F4S-FSE] board of directors has made a decision to proceed with the construction of an open-pit mine at the Seguela gold project in Ivory Coast (Côte d’Ivoire), Africa.
The company is ready to begin construction immediately with long lead items procured and development teams established on the ground. In July, 2021, Fortuna completed the acquisition of Roxgold Inc., which was advancing the Seguela project to create a global premier growth-oriented intermediate gold and silver producer.
Jorge A. Ganoza, president and CEO, said, “With a nine-year mine life in reserves, 130,000 ounces of annual gold production in the initial six years, and compelling economics, Seguela is planned to become our fifth operating mine with first gold by mid-2023. Fortuna is in a solid financial position to fund the remaining $162-million initial capital investment and our teams in West Africa are primed and ready to start.
“Parallel to construction, the company plans to continue with well funded drill programs to test multiple remaining targets on the Seguela property, where over the last 12 months, the exploration team has successfully delivered gold discoveries at the Koula, Sunbird and Gabbro North prospects.”
The updated Seguela project total initial capital investment is $173.5-million. Of this amount, $11.5-million has previously been approved by the board for early works items. The anticipated construction schedule is approximately 20 months, with ramp-up to nameplate capacity expected in the third quarter of 2023.
Seguela project feasibility study economic highlights include an NPV (5% discount) after-tax of $478 million at US$1,800/oz gold price, an after-tax IRR of 58% at US$1,800/oz gold price, a 1.4-year payback period, and an average EBITDA of $153 million.
Fortuna Silver Mines is a Canadian precious metals mining company with four operating mines in Argentina, Burkina Faso, Mexico and Peru and the Seguela advanced development project in Ivory Coast.