AIM-listed West African focused gold mining company Amara Mining will start contributing to the global gold market when its Côte d’Ivoire-based project Yaoure pours first gold in H2, 2017.
The project is poised to be one of the top 10 gold mines in Africa by production volume and top 50 in the world. Yaoure is also one of the few projects in West Africa that will be geared towards generating strong returns at signifi cantly lower gold prices, writes Chantelle Kotze.
The 317 km2 brownfield Yaoure gold project, located in central Côte d’Ivoire, 40 km from the country’s political capital, Yamoussoukro, will have exceptionally low operating costs.
A preliminary economic assessment (PEA) undertaken at Yaoure in the first quarter of 2014 indicates that at a production rate of 325 000 ozpa over a 12 year mine life – from a single open pit containing 4.2 Moz – the project breaks even at below US$800/oz and at an all-in sustaining cost of $691/oz. It further indicates the project’s compelling financial returns. Yaoure is able to yield a 32% internal rate of return and post-tax net present value of $688 million based on a discount rate of 8% and a gold price of $1 250/oz.
Last month, Amara announced a 63%, or 1.7 Moz, increase to Yaoure’s indicated mineral resource, bringing the total indicated resource to 4.4 Moz (106.3 Mt at 1.29 g/t). The project’s inferred mineral resource is 2.4 Moz (63.0 Mt at 1.19g/t), bringing the project’s total mineral resources to 6.8 Moz. “This substantial increase in indicated resources represents the de-risking of the Yaoure deposit and our growing confidence in it,” says Amara Mining chairperson and CEO John McGloin. He goes on to say that of the total 6.8 Moz of gold at.....