HomeBusiness and policyFortuna announces positive construction decision for Séguéla

Fortuna announces positive construction decision for Séguéla

Fortuna Silver Mines has made a decision to proceed with the construction of an open pit mine at the Séguéla gold Project in Côte d’Ivoire.

The company is ready to immediately commence construction with long lead items procured, and development teams established on the ground. In July 2021, Fortuna completed the acquisition of Roxgold Inc. which was advancing the Séguéla Project.

Jorge A. Ganoza, President and CEO of Fortuna, commented:

“With a nine year mine life in reserves, 130,000 ounces of annual gold production in the initial six years, and compelling economics, Séguéla is planned to become our fifth operating mine with first gold by mid-2023.”

Ganoza added, “Fortuna is in a solid financial position to fund the remaining $162 million initial capital investment and our teams in West Africa are primed and ready to start,” Ganoza concluded, “Parallel to construction, the company plans to continue with well funded drill programs to test multiple remaining targets on the Séguéla property, where over the last 12 months, the exploration team has successfully delivered gold discoveries at the Koula, Sunbird and Gabbro North prospects.”

Paul Criddle, COO – West Africa of Fortuna, commented, “The decision to commence construction of the still growing Séguéla Project, marks an exciting milestone for the company.”

Criddle continued, “The team has further derisked the project by advancing detailed design and commencing procurement of long lead items, including the SAG mill and the execution of critical path agreements including the EPC agreement with Lycopodium for the processing plant.

“This has allowed Séguéla´s critical path to be protected as well as managing the cost risk by locking in substantial components of the initial capex in fixed price contracts.” Criddle added, “Bulk earthworks contractors have been mobilized and will break ground at the plant site in October with the accommodation village expected to be completed in November of 2021.”

The updated Séguéla Project total initial capital investment is $173.5 million. $11.5 million of this amount has previously been approved by the Board for early works items. The anticipated construction schedule is approximately 20 months, with ramp-up to name plate capacity expected in the third quarter of 2023.