PERTH (miningweekly.com) – Gold miner Resolute Mining on Friday said that the review of its Bibiani gold project, in Ghana, will be completed during the first half of 2020.
The miner in December last year initiated a strategic review of the asset to evaluate options for Bibiani, review recommissioning plans, assess capital requirements and funding alternatives, and investigate recently received expressions of interest from third parties seeking to acquire the asset.
The review would explore various options for Bibiani, including joint ventures and the partial or complete divestment of the asset, Resolute said on Friday, noting that no binding agreements had yet been signed for either the financing or divestment of the asset.
A 2018 feasibility study into a Bibiani restart estimated that the project could produce about 100 000 oz/y over a ten-year mine life, at a total capital cost of about $115-million.
The project is currently estimated to host 21.7-million tonnes, grading 3.6 g/t gold for 2.5-million ounces of contained gold.
Resolute earlier this week struck a A$300-million deal to divest of its Ravenswood gold mine, in Queensland, to a consortium consisting of private equity manager EMR Capital and energy and mining company Golden Energy and Resources. The consideration will consist of a A$100-million upfront payment, up to A$50-million of the consideration to be linked to the average gold price over a four-year period, and up to A$150-million to be linked to the investment outcomes for EMR.
Following the Ravenswood sale, Resolute's focus will be on its mines in west Africa.
Meanwhile, the miner also reiterated its production target of 500 000 oz for the 2020, after revealing that it had produced 384 731 oz in 2019, and 105 293 oz in the December quarter.
Production during the December quarter was negatively impacted on by operational issues at its Syama mine, in Mali, where the sulphide circuit remained off line for most of the quarter.
“We have started 2020 with all our operating assets generating positive cash flows and ready for a major ramp-up in gold production. Actions progressed in the December quarter will ensure that strong operating cash flows in the year ahead, combined with asset divestments and reduced capital demands, will support a stronger balance sheet for Resolute and create further opportunities for our growth and ambition,” said CEO and MD John Welborn.
The miner is expected to spend about $15-million on its operating assets in 2020, and a further $25-million on exploration and development projects.