Roxgold aims to double West Africa production
Roxgold Inc. [ROXG-TSX] shares advanced Wednesday December 16 after the company said it has received a signed exploration permit from the government of Côte d’Ivoire for the development and operation of its Seguela Gold Project.
The company also said it has commenced early works at Seguela to facilitate a rapid ramp up to full construction next year and eventual commissioning in 2022.
Shares jumped 3.8% or $0.065 to $1.75 on volume of 471,254 and now trade in a 52-week range of $1.92 and 56 cents.
Roxgold’s key asset is the high grade Yaramoko Gold Mine located in the province of Bale in southwestern Burkina Faso, West Africa, about 200 km southwest of Ouagadougou. Yaramoko lies directly south of, and is contiguous to, the SEMAFO Inc. property hosting the flagship Mana Gold Mine, and lies within the Houndé greenstone belt. The company declared commercial production in October 1, 2016.
Seguela is located approximately 480 km northwest of Abidjan, the commercial capital of Côte d’Ivoire.
Earlier this year, the company released an updated mineral resource estimate for its Seguela gold project. It said total indicated mineral resources had increased by 7% to 529,000 ounces, while inferred resources have jumped 1,286% to 471,000 ounces in comparison to the maiden resource, which was announced on July, 2019.
“The Seguela Project continues to be a key priority for Roxgold, and we believe that development of the project will provide significant value to all our stakeholders,” said Roxgold President and CEO John Dorward. “In addition to the positive impact Seguela will have on the surrounding communities, the project has the potential to more than double our production for shareholders within a short time frame and without the need for additional equity,” he said.
“The confirmation of the permit and the start of early works is a major accomplishment towards achieving our goal of becoming West Africa’s next multi-asset producer.”
Roxgold recently released an updated mineral resource and mineral reserve estimate for its Yaramoko mine complex which consists of two high-grade underground gold mines: the 55 Zone and Bagassi South.
Annual gold production this year is expected to be between 120,000 and 130,000 ounces.
The company said total proven and probable reserves have increased by 8% to 710,000 ounces of gold, replacing depletion of 207,396 ounces during the period from December 31, 2018, to June 30, 2020.