Burkina Faso – TSX-V-listed gold junior Roxgold has received the signed Mining Convention confirming the Presidential Decree as issued in accordance with the 2003 Burkina Faso Mining Code.

In addition, the company provides an update of the on-going development of the Yaramoko gold project.

Highlights:

  • Signed Yaramoko Mining Convention received from the Burkina Faso Ministry of Mines;
  • Overall construction programme approximately 25% complete;
  • Bulk earthworks approximately two thirds complete;
  • Water storage facility completed and collecting water from current wet season;
  • Mine access boxcut completed with portal ground preparations commenced;
  • Permanent accommodation camp approximately two thirds complete;
  • Project on track, with approximately US$ 25 million of $ 110.8 million spent to date;
  • Project financing signed and progressing to initial draw-down;
  • Project commissioning targeted for mid-2016;
  • Cash on hand of approximately $ 24 million at the end of July.

Activities on site at Yaramoko are advancing at an encouraging rate. Since breaking ground at the project in late March, works have been significantly advanced in all areas. Early works have focused on the critical path activities of bulk earthworks, camp construction and procurement.

Over 700 personnel are now on site working on the project and all contractors associated with the project have mobilized with works advancing simultaneously on all fronts. As at the end of July, the company had spent approximately $ 25 million and remains on target to complete the project within the budget of $ 110.8 million.

“We are very pleased with the start of activities to date as the project continues according to plan and budget,” comments John Dorward, President & CEO. “Initial progress has been encouraging and we are well placed to advance the construction of Yaramoko with key items of equipment and both major contractors now on site.”

Bulk earthworks

The bulk earthworks scope is well advanced and approximately four weeks ahead of schedule and approximately two thirds complete. The Water storage facility is completed and now collecting water this wet season. The tailings storage facility embankment is also completed. Both of these structures have been constructed as per design and budget.

Camp construction

The construction of the 190 man accommodation camp is progressing well and is approximately 70% complete. All accommodation building brickwork has been finished and roofing is well advanced. Painting, tiling and final fit out of the residential quarters is advancing, with several blocks nearing completion.

Brickwork for the kitchen, laundry and recreational complexes is continuing. Reticulation of plumbing and electrical services is well advanced and expected to be completed in August. Handover and commencement of occupancy is planned for September.

Mine development

The boxcut excavation is completed, as are the ground support works around the portal in advance of collaring the ramp portal. The underground contractor, an affiliate of African Underground Mining Services, has mobilised key personnel and equipment to site.

The explosives magazine is under construction with completion expected in August. Pouring of the concrete footings for the corrugated liner plate tunnel (“Armtec Tunnel”) accessing the underground workings has commenced.

Processing plant

The lump sum EPC contractor (DRA/Group Five Joint Venture) has mobilised and is on site with establishment activities well advanced. The bulk earthworks in the processing plant are completed and the area now handed over to the EPC contractor.

Concrete pouring for footings in the SAG mill, reclaim vault, CIL and crusher areas are now well advanced. Procurement activities are well advanced with all long lead contracts placed by the EPC contractor.

Long lead procurement

Critical path procurement activities are progressing well. The SAG mill is largely procured with the mill shell, motors and cast in items now on site. All SAG mill components are expected to be in country in August. The complete Armtec Tunnel for the underground access is now on site. Long lead items on the high voltage powerline such as detailed design, tower steel and transformer are well advanced with components starting to arrive on site.

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