Roxgold tables Yaramoko reserve update
Roxgold Inc. [ROXG-TSX] on Tuesday November 10 released an updated mineral resource and mineral reserve estimate for its Yaramoko mine complex in Burkina Faso, West Africa.
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.
It said Measured and Indicated Resources have increased by 4% to 857,000 ounces, increasing the total gold in Measured and Indicated Resources, plus cumulative production to date to approximately 1.4 million ounces over the life of the project.
The company went on to say that the addition of near-surface mineral reserves and mineral resources highlights the plan for an open pit operation to complement the underground mine and extend the mine life at the 55 Zone.
“The increased mineral reserves reinforce the project as a stable foundation of long-term production and free cash flow generation for Roxgold’s ambitious growth plans,” the company said in a press release.
After completing a feasibility study in 2014, Roxgold 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 g/t gold.
Roxgold has also outlined an Inferred Resource of 220,000 ounces gold in the Bagassi South Zone, a satellite discovery 1.8 km south of Zone 55.
Having produced 33,557 ounces of gold in the third quarter of 2020, Yaramoko is on target to meet company forecasts by producing between 120,000 and 130,000 ounces this year at an all-in-sustaining cost of US$930 to US$990/oz.
Roxgold is planning for an open pit operation with a reserve grade of over 7.0 g/t to complement the high-grade underground operation and extend the mine life at the 55 Zone.
In keeping with that goal, the company has launched a 14,500 underground drill program at the 55 Zone, designed to upgrade resources at depth to approximately 1,200 metres below surface.