Democratic Republic of Congo – Aim-listed Armadale Capital, the investment company focused on natural resource projects in Africa, expects to begin construction at its Mpokoto gold project in south eastern Democratic Republic of Congo by December, subject to receipt of financing.
This is in line with the company’s plan to achieve commercial production in in the first half of 2016.
Armadale said that prior to construction, it will undertake additional metallurgical testwork in the fourth quarter of 2015 to further optimise the identified two-phased processing routes for gold recovery at the 678 000 oz Mpokoto gold project.
Further, the company’s definitive feasibility study (DFS) is continuing to progress well, with completion now targeted for the fourth quarter, to allow inclusion of results of planned metallurgical work and further input from mining contractor Africa Mining Contracting Services group (A-MCS), which should positively enhance results of the DFS.
Armadale reports positive engagement and progress with A-MCS to finalise the proposed financing package of up to US$20 million for Mpokoto; which includes provision of finance to fund the plant and power plants; and a mining contract to govern provision of mining services going forward.
Armadale chairman Peter Marks says Mpokoto continues to advance at pace towards commercial production. Having recently defined a two phase process route for gold recovery the company believes there is potential to further optimise these results through additional metallurgical testwork.
“We believe the results from this will favourably impact the projected economics of the project, which are already extremely competitive with estimated cash costs of $647/oz and an NPV of $32.3 million.
“We continue to progress our very constructive engagement with A-MCS, who are providing active input to the DFS process as well as the necessary framework to conclude our financing agreements, which will bring with it up to US$20 million of financing. With additional upside available, Mpokoto maintains its status as a low capex, low opex gold mine,” Marks says.
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