Endeavour Mining Corporation Teranga Gold Corporation

Gold miner SEMAFO has awarded a new mining services contract for its Siou underground mine in Burkina Faso to African Underground Mining Services (AUMS).

Burkina Faso AUMS is a 50:50 joint venture between Ausdrill and Barminco Holdings.

The contract is expected to be for 70 months and entails the supply all underground mining services for the Siou underground mine, including development, production activities and associated services.

The contract has an estimated value of US$211 million and is expected to start in Q3, 2018.

“We are delighted to have secured this work and look forward to the partnership with SEMAFO, a Canadian based mining company with gold production and exploration activities in West Africa,” says AUMS’s COO Blair Sessions.

Siou is a high-grade gold deposit located some 20 km from SEMAFO’s Mana mine in Burkina Faso. Open-pit production commenced in early 2014,

Siou has proven and probable reserves of 3 Mt at 5.29 g/t gold for 0.5M oz

It is designed to process 2 000 tpd over an eight year lifespan. Development of the underground mine is expected to take 18 months after which production will commence. The mine is expected to produce 209 000 oz at an average all-in sustaining cost of $810/oz.