TSX-listed Roxgold has delivered a robust Preliminary Economic Assessment (PEA) for its high-grade Séguéla gold project in Côte d’Ivoire.
Côte d’Ivoire – The PEA was prepared in accordance with Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). It provides a base case assessment of developing the Antenna, Ancien, Agouti and Boulder deposits as open pit mines feeding a central gold processing facility.
The Séguéla gold project is located approximately 240 kilometres north-west of Yamoussoukro, the political capital of Côte d’Ivoire, and approximately 480 kilometres north-west of Abidjan, the commercial capital of the country. It covers an area of 36,300 hectares, defined by two exploration permits.
Roxgold expects to continue its evaluation of Séguéla with the intent of growing the resource base and advancing to the feasibility stage.
- Life of mine gold production of 841 000 oz with average annual gold production of 103 000 oz.
- Average annual gold production of 143 000 oz over the first three years of production, with an estimated production peak of 154 000 oz in year three
- Average cash costs of $605 per ounce over the LOM, including a cash cost of $475 per ounce over the first three years of production.
- Average All-In Sustaining Costs of $749 per ounce over the LOM, including an AISC of $600 per ounce over the first three years of production.
- Estimated pre-production capital cost of $142 million (including a $20 million contingency).
- Conventional processing plant with a processing rate of 1.25 million tonnes per year with scalability incorporated into plant design for potential expansion.
- LOM after-tax net cash flow of $354 million at a gold price of $1,450 per ounce.
- Project payback of 1.2 years.
John Dorward, president and CEO commented: “The PEA illustrates the substantial value accretion of Séguéla which stands alongside our current operations to build the foundation for Roxgold and its future. We have identified several opportunities to expand and optimize the PEA, which we intend to evaluate as we proceed towards a Feasibility Study, which is well underway and with an anticipated completion in the first half of 2021.”