Avesoro Resources
Gold
Dual-listed Avesoro Resources expects its gold production to be between 220 000 oz and 240 000 oz in 2018 from its West African mines.

Avesoro Resources aims to achieve this gold production at operating cash cost of between US$620/oz and US$660/oz of gold produced and an all-in sustaining cost (AISC) of between $960/oz and $1 000/oz of gold sold.

Avesoro Resources has started 2018 well positioned to continue to increase gold production levels and to further reduce operating costs at its New Liberty, Youga and Balogo gold mines.

“This year, we look to build upon the operational turnaround achieved at New Liberty and to deliver further growth throughout 2018,” says Avesoro Resources CEO Serhan Umurhan.

The company’s 2017 exploration campaign in Burkina Faso, in particular at Youga, was very successful with the company having identified significant additional ounces at Gassore along strike from existing pits, and in close proximity to the processing plant.

“These additional ounces now fall within our mining plan, thereby providing us with the confidence to increase our 2018 gold production guidance at Youga above that forecast in the 2017 published life of mine plan,” Umurhan notes.

Investment in exploration is a key focus of Avesoro’s 2018 growth strategy and a means to add to the company’s already healthy 2.3 Moz grading 2.2g/t of gold. Following the success of 2017 exploration activities, the company has set an exploration budget for 2018 of $25 million that will see 24 diamond drill rigs operating across the company’s licence portfolio by the third quarter of 2018.

Avesoro plans to release an updated mineral resource statement later this year, following the planned drilling campaigns.

2018 outlook

New Liberty, Liberia

Gold production is expected to increase by 45 to 58% to between 110 000 and 120 000 oz in 2018 compared to 76 179 ounces in 2017.

Operating cash costs are expected to decrease to between $630 and $670/oz produced while AISC is also expected to decrease to between $1 020 and $1 060/oz produced.

A sum of between $45 million to $50 million of sustaining capital expenditure is planned for 2018 including $33 million of waste stripping.

Youga and Balogo, Burkina Faso

Gold production is expected to be between 110 000 and 120 000 oz in 2018 compared to 115 894 oz in 2017.

Operating cash costs are expected to be between US$540 to US$580/oz produced while AISC is expected to be between $805 to $845/oz produced

Between $20 million and $25 million of sustaining capital expenditure is planned for 2018 at these mines.

Exploration

Avesoro Resources expectsto complete 171 000 m of diamond drilling during 2018, with eight diamond drill rigs currently mobilised across the licence portfolio.

The company’s drilling contractor has placed an order for an additional 16 new diamond drill rigs, of which four are currently en-route to Burkina Faso and expected to be operational by late February 2018. The remaining 12 drill rigs will be mobilized during the second and third quarters with six rigs being allocated to Liberia and six rigs to Burkina Faso.

The drilling contractor, which is a related party to the company, is able to provide a very attractive drilling rate of between $40 and $85 per metre for HQ diamond drilling.