TORONTO, June 8, 2016 /PRNewswire/ - Roxgold Inc. ("Roxgold" or "the Company") (TSX.V: ROG) is pleased to report an update on the project status of the Yaramoko Gold Mine located in Burkina Faso.
"Since the start-up of the Yaramoko gold mine, 9,594 ounces of gold have been recovered to inventory, of which 3,564 ounces have been shipped. The processing plant has operated at an average of 759 tonnes per day ("tpd"), which is above its nameplate rate of 750 tpd," commented John Dorward, Roxgold's President and CEO. "The ramp up has occurred without any major issues and commercial production is expected in the third quarter."
- Processing plant and associated infrastructure now complete
- 9,594 ounces of gold recovered since start-up (includes produced and inventory)
- Processing facility has milled 24,778 tonnes of ore
- Average throughput of 759 tpd since ore commissioning commenced (above nameplate of 750 tpd)
- 18,839 tonnes of ore on the Run of Mine ("ROM") pad at a grade of 18.7 grams per tonne ("g/t")
- Average gold recoveries of 97.2% - in line with design rate
- Electricity offtake agreement signed with Sonabel, the national electricity provider
- Stoping operations to commence in July as scheduled
The eastern ventilation shaft has been completed with the fan installed and operational. The second (western) ventilation shaft is nearing completion.
Underground development continues to advance well and remains ahead of plan. The ramp has advanced 806 metres from the portal in the East and West declines with workings opened up on four levels, which has enabled development on ore.
Ore milled to date has reconciled well with underground face samples and the Company is pleased with overall performance to date against the resource model. The Company has been encouraged by the method in which the vein is being mined with dilution being well managed.
The operations team is now focused on preparing for stoping activities in the third quarter.
Construction of the processing plant and associated infrastructure is complete. Practical completion for the DRA/Group Five Joint Venture (the "YJV") has been awarded and the contractual performance test was completed and passed on May 13, 2016.
Since completion, the plant has operated at or above its nameplate levels. Both plant operating time and unit throughput rates have met or exceeded design metrics of 91.7% and 34 tonnes per hour ("tph") respectively.
Similarly, gold recoveries, averaging 97.2%, have met or exceeded the design rate of 96.9%. Carbon-in-leach ("CIL"), together with the gravity circuit performance have both been positive, with a gravity recovery contribution of 55% in May. Further improvements in this area are a focus for the processing team.
Work on the construction of the HV powerline, which is based on lump-sum contracts, has commenced on site. The grid power offtake agreement with Sonabel, the national electricity provider, has recently been signed. All other required mine infrastructure is complete.
The Company's cash position at the end of May 2016 was approximately US$32 million. Subsequently, 3,000 ounces of gold have been sold and the remaining approximately $8 million from the Company's US$75 million project finance facility, provided by Societe Generale and BNP Paribas, has been drawn down.
The US$10 million shares for services arrangement with the underground mining contractor, African Underground Mining Services ("AUMS"), remains in place and available to Roxgold, however, the Company does not envisage utilizing this facility.
Expected Upcoming Catalysts
Following the maiden resource at Bagassi South, reported on April 27, 2016 (found here), the Company intends to complete a study on the deposit in the fourth quarter of 2016.
The Company also intends to complete an updated mine plan for the 55 Zone, prior to the end of the year, based on additional resource drilling currently underway.
Roxgold is confident commercial production at Yaramoko will be achieved before the end of the third quarter.
Paul Criddle, FAUSIMM, Chief Operating Officer for Roxgold Inc., and Craig Richards P. Eng, Principal Mining Engineer for Roxgold Inc., are Qualified Persons within the meaning of National Instrument 43-101, and have verified and approved the technical data disclosed in this press release.
Shareholders are encouraged to view Roxgold's corporate video which provides a summary of the Company, and captures the progress that has occurred at Yaramoko by clicking here.
Roxgold is a gold mining company with its key asset, the high grade Yaramoko Gold Mine, located in the Houndé greenstone region of Burkina Faso, West Africa. The Company expects to reach commercial production in Q3 2016. Roxgold trades on the TSX Venture Exchange under the symbol ROG and as part of the Nasdaq International Designation program with the symbol OTC: ROGFF.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would".
Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: changes in market conditions, unsuccessful exploration results, changes in the price of gold, unanticipated changes in key management personnel and general economic conditions. Mining exploration and development is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
SOURCE Roxgold Inc.