Canada-based intermediate gold producer Semafo is on a path to set new internal records in 2019, with an anticipated record production, cash flow and development activity across its operations in Burkina Faso, after reporting a stellar performance in 2018.

Over the next year, Semafo aims to achieve record production of 390 000 oz to 430 000 oz of gold at an all-in sustaining cost (AISC) of $685/oz to $735/oz – expected to be the best in the company’s history.

“All areas, including exploration, development, construction and operations, made 2018 a solid year and set the stage for a successful 2019,” says Semafo president and CEO Benoit Desormeaux.

During the year ended December 31, 2018, Semafo completed the construction of Boungou mine on time and within budget; reported a maiden inferred mineral resource for the Bantou zone of 361 000 oz at 5.35 g/t gold; achieved a 42% mineral inferred resource increase to 840 000 oz at 7.7 g/t gold at Nabanga; and delivered on several 2018 exploration, development, construction and operational milestones at the Burkina Faso-based operations, Boungou, Mana, Bantou and Nabanga, which laid the groundwork for 2019.

The group’s strategic goals for 2019 include increasing and improving mine life at Boungou and Mana and advancing its two development projects, Bantou-Savary and Nabanga.

“The combination of Bantou-Savary is in progress and, when complete, will result in a 1 250 km2 district-scale land package on the prolific Houndé greenstone belt in a country we know well,” he says.

This followed the February 2019 non-binding letter of intent between Semafo and Savary Gold to contemplate the acquisition by Semafo of all of the outstanding common shares of Savary it did not already own.

Savary’s Karankasso project is contiguous to the Bantou zone, with both projects located about 170 km south of Mana.

Semafo has set its initial exploration expenditure for 2019 at $19-million – $9-million of which will be spent at Boungou, $4-million at Mana, $3-million at Bantou and $2-million at Nabanga, with the remaining $1-million set aside for the Côte d’Ivoire-based Korhogo.

At Boungou, the 2019 exploration programme comprises 41 000 m of reverse circulation (RC), and 1 000 m of diamond and 100 000 m of auger drilling.

“The bulk of the RC drill work will follow up on recent discoveries at Dangou and Tawori and test regional gold anomalies on the Pambourou and 045 Trend Sectors. The auger programme will provide a complete coverage of the property and identify future exploration targets,” says Desormeaux.

With the prospectivity of the combined Savary-Bantou properties, the Bantou exploration budget of $3-million will be enhanced when the Savary proposed acquisition closes in April 2019.

Mana’s exploration programme includes 18 600 m of RC and 58 000 m of auger drilling.

Meanwhile, the 2019 programme on Nabanga will test the northern extension, further explore the down-plunge extensions confirmed by recent drilling and test-drill auger geochemical anomalies proximal to the deposit for satellite mineralisation.

Meanwhile, Semafo posted cash flows of $110.2-million from operating activities, or 34c a share, during the year ended December 31, 2018, compared with $107-million, or 33c a share, in 2017.

The company achieved consolidated yearly gold production of 244 600 oz, an increase on the 206 400 oz in 2017, in line with the 2018 guidance of 235 000 oz to 265 000 oz.

Gold sales reached $296.7-million in 2018, up from 2017’s $259-million.

The company reported AISC of $951/oz for the year under review, compared with $942/oz in 2017.