Aim-listed West Africa-focused gold mining company Amara Mining hosted a site visit in May to its 6.8- million-ounce Yaoure gold project in central Côte d’Ivoire for equity analysts, investors and journalists.
The group viewed the Yaoure central pit, which was previously mined by Amara, where a 6 000 m drilling programme is currently under way. They also visited the core sheds and viewed the nearby Kossou barrage, a 175 MW hydroelectric power dam, which is expected to provide low-cost power for Yaoure.
A presentation was given by the senior management team on the results of the prefeasibility study (PFS), which was announced earlier in May, and Yaoure’s geology.
The Yaoure gold project is the largest gold development asset in West Africa, with indicated mineral resources of 4.4-million ounces and an inferred resource of 2.6-million ounces. The recently announced PFS demonstrated that Yaoure has the potential to be one of the top 20 gold mines in Africa by production.
With average production of 247 000 oz a year over a ten-year life-of-mine and all-in sustaining costs of $648/oz, Amara’s plan suggests an internal rate of return (IRR) of 33% at a gold price of $1 250/oz and a net present value of $513-million. Yaoure is one of the few development projects in West Africa that remains resilient at low gold prices, with an IRR of 24% at $1 100/oz. The compelling economics are driven by the excellent existing infrastructure in Côte d’Ivoire, with low-cost hydroelectric power from the Kossou dam, which is 5 km from the mine, and a dual carriageway to within 40 km of the site.
Following a period of optimisation work, Amara is fully funded to deliver a bankable feasibility study (BFS) for Yaoure in 2016.
About Amara Mining
Amara is a gold explorer and developer, with assets in West Africa, focused on unlocking the value in its development projects. At Yaoure, this will be done by increasing the confidence in the existing mineral resource and economics, as Amara progresses through to the BFS stage. With its experience of bringing new mines into production, Amara aims to further increase its production profile.