JOHANNESBURG (miningweekly.com) – ASX-listed gold miner Resolute Mining has lodged a positive feasibility study for its 90%-owned Bibiani gold project, in Ghana, with the Ghana government, which owns a 10% free-carried interest in the project.
The study, which confirmed a viable development pathway for the project, contemplated production of up to 1.2-million tonnes a year from long-hole open-stope underground mining. Processing of the ore would occur at the existing Bibiani processing plant, with most of the $72-million upfront capital allocated to the refurbishment of the plant.
The study established an initial ore reserve of 5.4-million tonnes at 3.7 g/t containing 640 000 oz. Gold production was expected to be maintained at about 100 000 oz/y, which would sustain a five-year mine life on the initial reserve. All-in sustaining costs were expected to be $851/oz for life-of-mine production of 561 000 oz of gold.
Resolute noted that the project had a short lead time to production of only nine months from commencement.
“Bibiani is a key growth asset for the company, and the completion of the feasibility study and the establishment of our first ore reserve at the project is an important milestone,” said Resolute MD and CEO John Welborn, adding that the study not only demonstrated a viable development plan for Bibiani, but also competitive costs and “excellent” upside potential.
“The feasibility study is major improvement on the scoping study completed a year ago and demonstrated the potential for even better results.”
Welborn added that, in the current environment of rising gold prices, Bibiani offered Resolute an “increasingly attractive” growth opportunity. He also noted that further successful exploration to upgrade and extend the orebody would boost project economics, extend the mine life and further enhance value.
“We remain committed to working with our partner, the government of Ghana, as we move towards our mutual goal of developing a long-life, robust, profitable gold operation at Bibiani,” said Welborn.
The method of mining and the production rate envisaged at Bibiani was consistent with Resolute’s capability in operating large mechanised underground gold mines. In recent years, the company had successfully operated a 1.5-million-tonnes-a-year underground mine at Mt Wright, in Queensland. Resolute was also well advanced with plans to develop a 2.4-million-tonnes-a-year sub-level cave at Syama, in Mali.