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Roxgold increases full-year production guidance after record Q1 output

17th May 2018

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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JOHANNESBURG (miningweekly.com) – Burkina Faso-focused Roxgold, which operates the Yaramoko mine, produced 40 452 oz of gold during the first quarter of the year ended March 31, and increased its full-year production guidance to between 120 000 oz and 130 000 oz.

The record production for the quarter was driven by improved operating performance at both the mine and processing plant.

During the quarter, 88 607 t of ore at 15.05 g/t were extracted from the underground mine while 1 437 m of development was completed, compared with the 69 237 t of ore extracted and 1 740 m of development completed in the first quarter of 2017.

The mining tonnage increased by 28% year-on-year as a result of increased productivity from stoping activities.

“During the first quarter, about 75% of ore produced came from stoping, which is a result of the extensive development that is in place at Yaramoko, with six open stopes available at the end of the quarter compared with two open stopes at the end of March 31, 2017,” Roxgold president and CEO John Dorward said this week.

During the quarter under review, TSX-listed Roxgold continued the construction work at its Bagassi South underground mine, with the boxcut excavate to the second bench level.

The high-grade 55 Zone and Bagassi South deposits are hosted within a large granitic intrusion on the Yaramoko concession area. Gold typically occurs as coarse free grain in quartz and is associated with pyrite, Roxgold says on its website.

Underground mobile equipment has been ordered for Bagassi South and is expected on site in June. The haulage road is 90% complete and civil construction of the plant is ahead of schedule, allowing for early mobilisation of the structural, mechanical and piping personnel.

The tailings storage facility's earthworks are completed and the liner installation has commenced and is expected to be completed by the end of May.

“Our Bagassi South expansion is tracking well to the schedule and budget and will be completed in the fourth quarter, while we continue executing on our extensive regional exploration programme,” Dorward added.

During the quarter, Roxgold invested $6.57-million in underground mine development, representing a sustaining capital cost of $164/oz.

For the full year, Roxgold plans to invest between $22-million and $26-million in the underground development, as well as $30-million for Bagassi South pre-production and $9-million for exploration.

The majority of the Yaramoko concession is largely unexplored.  Regional drilling programmes are currently in place with a focus on drilling along the Boni Shear, Haho, Kaho and Houko with about 64 000 m of drilling planned for this year, Roxgold says on its website.

Meanwhile, Roxgold sold 40 050 oz of gold in the first quarter, generating revenues of $53-million.

Cash operating costs were $381/oz, total cash costs were $451/oz and all-in sustaining costs (AISC) were $658/oz.

Roxgold also reduced its full-year cost guidance, with cash operating costs expected to be between $450/oz and $475/oz and AISC at between $740/oz and $790/oz.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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