Toronto, Ontario/Burkina Faso – TSX-V listed gold company Roxgold has selected the DRA / Group Five Joint Venture (JV) as its preferred Engineering, Procurement, Construction (EPC) contractor for its Yaramoko gold project in Burkina Faso.
The fixed price, lump sum contract is for US$34.9 million. The JV is responsible for the full delivery of engineering, procurement, project management services, construction and commissioning of the proposed 270 000 tpa gold ore processing plant including performance tests and warranties, as well as the associated plant site infrastructure. The contract terms are subject to Roxgold’s lenders’ approval and collation of final schedules.
To date, US$10 million has been spent or committed on long lead project items such as the SAG mill, detailed design and Armtec tunnel for underground mine access as well as tower steel and a transformer for the 90 KV power line. The award of the fixed price EPC contract to the DRA / Group Five JV results in over 50% of the estimated total capital cost of the Yaramoko gold project as either being now spent or fixed in nature. This important contract is further confirmation of the ongoing validity of the capital cost assumptions made in the feasibility study completed last year.
“We are delighted to have the DRA / Group Five JV partner with us on this project,” says Paul Criddle, Roxgold’s COO. “This key contract being lump sum provides us with greater confidence in our ability to execute the project. Over half of the total project scope is now either fixed in price or spent, further de-risking the delivery of the Yaramoko gold project.”
In parallel with establishing the EPC agreement, Roxgold is in the final stages of executing several other important project contracts. The accommodation camp contract has been signed as a fixed priced lump sum agreement. In addition, the earthworks agreement is due to be executed in March. “Roxgold is very pleased with the engagement of the DRA / Group Five JV as we progress in advancing the Yaramoko gold project. Our project execution planning is well advanced and we are in a strong position to shortly commence project works in Burkina Faso,” comments John Dorward, President and CEO.
DRA and Group Five’s recent successes include the Kibali gold project in the DRC, one of the largest gold plants in the world, the Edikan (Central Ashanti) gold project in Ghana as well as the Perkoa zinc project in Burkina Faso. Their experience in the region uniquely qualifies the DRA/ Group Five JV to support and successfully implement the Yaramoko project in Burkina Faso.
Roxgold’s high grade Yaramoko gold project, located in the Houndé greenstone region of Burkina Faso, West Africa. The company is currently advancing Yaramoko’s 55 Zone and subject to making a positive construction decision expects to commence development in Q1, 2015.