Acacia, the African gold company, will commence mining at the Gokona Underground project at the Acacia North Mara mine having received the required final approvals from the Tanzanian Vice President’s Office.
The timing of the receipt of the approval of the Environmental Impact Assessment is in line with expectations, with commercial production from the project expected to commence in late Q2 and production ramping up through the remainder of the year.
The Gokona Underground project is expected to produce 450 000 oz over a five year life of mine, with all in sustaining costs of under US$750 per ounce.
Acacia is confident that the existing reserve will be extended as its increases its understanding of the ore body beneath the open pit, with potential for lateral extensions as well as the mineralisation remaining open beneath the 300 me vertical depth cut off used in the current mine plan.
Following the completion of the Gokona open pit in late Q2, 2015, production from North Mara for at least the next five years will comprise a blend of high grade underground material from the Gokona underground and open pit material from the Nyabirama pit.
Together these are expected to allow the North Mara mine to sustain annual production rates in excess of 250 000 oz of gold at very competitive costs.
CEO Brad Gordon says, “We are delighted to have received the approvals to commence commercial production from the Gokona Underground. This project is reflective of our new approach to operating our assets whereby we have re-engineered the mine to drive free cash flow and at the same time have significantly reduced the mine’s footprint which helps our relationships with the communities around the mine.”