Roxgold posts 79% resource increase at two mines

Roxgold Inc. [ROXG-TSX; ROGFF-OTC] on Friday July 14 released an updated mineral reserves and resource statement for its flagship Yaramoko gold project in Burkina Faso, West Africa.

The company also released a NI 43-101-compliant maiden resource estimate for its recently acquired Seguela gold project in Cote D’Ivoire.

Roxgold shares eased 2.86% or $0.03 to $1.02 on active volume of over 2.0 million. The shares are trading in a 52-week range of 72 cents and $1.15.

Roxgold said the Seguela Project hosts an indicated resource of 496,000 ounces at a grade of 2.4 g/t gold. On top of that is an estimated inferred resource of 34,000 ounces, also at 2.4 g/t, material that is contained in the Antenna deposit.

A Preliminary Economic Assessment for Seguela is expected to be completed by the fourth quarter of 2019.

Roxgold said that as of December 31, 2018, company-wide measured and indicated mineral resources for Yaramoko and Seguela now stand at 1.32 million ounces, grading 4.8 g/t gold. That marks a 79% increase from a December 31, 2016 estimate.

Meanwhile, Roxgold said it has maintained proven and probable reserves at Yaramoko at 658,000 ounces at 8.2 g/t gold, following production of 260,000 ounces, grading 14.4 g/t gold in 2017 and 2018 from Yaramoko’s 55 Zone.

Roxgold’s key asset is the high-grade Yaramoko gold mine, which is located in the province of Bale in southwestern Burkina Faso, 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.

After completing a Feasibility Study in 2014, Roxgold has developed a significant high-grade gold discovery at Yaramoko’s 55 Zone, which is expected to produce 652,000 ounces over the next seven years, at a life-of-mine average of 11.5 grams/tonne.

Roxgold has also outlined an inferred resource of 220,000 ounces gold in the Bagassi South Zone, a satellite discovery, located 1.8 km south of Zone 55. The company has said it expected to reach the commercial production milestone at the Bagassi South Project by the second quarter of 2019.

“The addition of Sequela to Roxgold’s development pipeline has substantially increased our resource inventory,” said Roxgold President and CEO John Doward. “With the newly defined indicated mineral resources at Seguela and our upcoming drill program, we believe there is an encouraging line of sight to further increases in the company’s near-surface mineral resource inventory in the coming years,” he said.