TSX-listed SEMAFO has announced positive results from a preliminary economic assessment (PEA) for its Nabanga gold project in Burkina Faso.
Burkina Faso – Speaking about the positive results, SEMAFO President and CEO, Benoit Desormeaux, stated, “The results highlight attractive economics for Nabanga including how the project can be developed with modest initial capital by combining open-pit and underground mining operations.
“The goal of the PEA study was to assess the initial economic viability and to identify areas for improvement to rank Nabanga within SEMAFO’s development pipeline. We believe we can improve the project economics through additional work on mining cost optimisation for open-pit operations, underground operations, and underground capital development expenditures.
"Furthermore, there remains potential to extend resources through additional exploration drilling as some mineralised zones remain open and further exploration potential exists on the property. As we move beyond the PEA, we will be looking to maximise the potential to generate shareholder value.”
Highly favourable results
Highlights of the PEA include:
• Pre-tax NPV of $147 million and after-tax NPV of $100 million, using a 5% discount rate.
• LoM gold production of 571,000 ounces at AISC of $760/oz and a gold recovery of 92% during the eight years of operation.
• Pre-production capital expenditure of $84 million, including 20% contingency, and $56 million in LoM sustaining capital.
In addition, SEMAFO believes that opportunities exist to improve returns through an increase in resources and additional cost saving measures in the mining operations and development at Nabanga.