The study has been lodged with the Government of Ghana, which owns a 10% free carried interest in the project. Delivery of the study to the Ghanaian Minerals Commission was a key commitment made by Resolute Mining as part of the government’s approval of the company’s acquisition of Bibiani in 2014.
Resolute Mining, listed on the ASX and a major gold producer on the stock exchange, is seeking to re-establish a successful underground mine at Bibiani. The study contemplates production of up to 1.2 Mtpa from long hole open stope underground mining.
[quote]Processing of the ore will occur at the existing Bibiani processing plant. The majority of the US$72 million of upfront capital is allocated to the refurbishment of the plant. The project has a short lead time to production of only nine months from commencement.
An initial ore reserve has been established of 5.4 Mt at 3.7 g/t containing 640 000 oz.
Gold production is expected to be maintained at approximately 100 000 ozpa which will sustain a five year mine life on the initial ore reserve.
All-in-sustaining-costs are expected to be US$851/oz for life of mine production of 561 000 oz of gold.
MD and CEO John Welborn congratulated the Resolute Mining team on the completion of the study.
“Bibiani is a key growth asset for the company, and the completion of the feasibility study and the establishment of our first ore reserve at the project is an important milestone. We are delighted with the results of the study which demonstrate a viable development plan for Bibiani, competitive costs, and excellent upside potential.”
“The feasibility study is a major improvement on the scoping study completed a year ago and demonstrates the potential for even better results. In the current environment of rising gold prices Bibiani offers the company an increasingly attractive growth opportunity. Further successful exploration to upgrade and extend the ore body will boost project economics, extend the mine life and further enhance value.”
In recent years Resolute Mining has operated a highly successful 1.5 Mtpa underground mine at Mt Wright in Queensland, and we are well advanced in its plans to develop a 2.4 Mtpa sub-level cave at Syama in Mali.
“Given our previous operating history in Ghana, and mining expertise, Bibiani is seen as a key part of Resolute’s future,” Welborn concludes.