Australia-based gold explorer and developer Gryphon Minerals plans to start constructing a new gold mine in Burkina Faso in the first quarter of next year.

Gryphon Minerals COO Steve Zaninovich says the company is on the cusp of obtaining project finance from financial services provider Macquarie Bank that will enable the company to start construction of the project, which will be called the Banfora gold project.

“We have elected a low-cost, start-up heap-leach processing approach after originally investigating a carbon-in-leach (CIL) plant. The initial capital expenditure (capex) of the project will be about $97-million,” he says, adding that Gryphon Minerals will soon consider early site works and expects to start mainstream construction in the second quarter of next year.

Zaninovich says the company is building a simple crushing plant, with no long-lead items and low power requirements that will be met using diesel fuel generators.

Maiden production of about 80 000 oz of gold is expected at the Banfora gold mine for the first four years – averaging 70 000 oz of gold over the life of the project – and sustaining costs of less than $870/oz. Banfora will be a high-margin, high-grade, start-up heap-leach mine, he adds.

“This is a very robust project, with exceptional mineral extension potential, which is substantially ahead of its heap-leach peers in terms of initial capex and gold grades.”

Zaninovich further highlights the significant potential to push the initial openpits below the current heap-leach inventory. He says Gryphon Minerals is not ruling out the possibility of a future CIL plant accepting primary gold material.

The Banfora project has numerous regional exploration targets, with real potential for the company to uncover a multimillion-ounce gold district in the near term.

Zaninovich adds that the Banfora project covers 150 km2. The mineralisation that has been drilled so far is shallow, with 90% mineralisation less than 150 m from surface. There is scope to extend this deeper with further drilling.

The project is in a major gold-producing district and hosts significant gold deposits, such as exploration and mining investment company Randgold Resources’ Tongon gold mine, gold producer Resolute Mining’s Syama gold mine and the Morila gold mine, which is owned by Randgold Resources and AngloGold Ashanti.

“Gryphon Minerals is committed to becoming a significant West African gold producer, with a short-term focus on advancing the Banfora gold project, as well as a pipeline of new projects in the region,” says Zaninovich.

He adds that the project has several regional exploration targets, with significant potential for Gryphon Minerals to substantially contribute to the multimillion-ounce gold district in the near term.

“Our commitment to West Africa is underpinned by not only the geological fundamentals of the area but also our strong belief that exploration and development projects provide a means to create opportunities for what has historically been a deeply impoverished area,” he concludes.