TSX/AIM-listed gold miner Avesoro Resources has increased the total mineral reserve at its Youga gold mine by 29%, or 660 100 oz from 147 400 oz.
Burkina Faso - It has also increased its total measured and indicated mineral resource by 15% to 924 200 oz of gold grading 1.73g/t.
The mine life was extended by two years to 2027, with total forecast gold production of 614 000 oz and as such the pre-tax NPV has increased by 42% to US$188.3 million and post-tax NPV to $151.6 million.
The Life of mine (LOM) operating cash costs have been reduced to $860/oz and the LOM all-in-sustaining costs reduced to $920/oz.
Further mineral resource and mineral reserve upgrades at Youga expected to be announced in Q1, 2019 from on-going infill drilling programmes with six diamond drill rigs currently active.
Commenting, Serhan Umurhan, CEO of Avesoro Resources, said:
“This updated mineral resource and mineral reserve estimate for Youga consolidates the results of the successful 2017 drilling campaign undertaken in Burkina Faso, and increases the mineral resources and reserves at the Youga mine itself as well as at the high grade Balogo deposit that provides ore to the Youga processing plant.”
“We see the announcement, which adds two years to Youga’s mine life, as an interim step. We have added substantially to the value of the Youga gold mine since Avesoro acquired it for $70.2 million in December 2017 and with our on-going drilling programme of 139 000 m in Burkina Faso this year we fully expect to add further years to the Youga life of mine.”
“In anticipation of further growth in mineral reserves, we are evaluating options for optimising the Youga process plant to allow the 2018 annual production guidance of 110 – 120 000 oz to be maintained in subsequent years by increasing mill throughput.”