MOMENTOUS MILESTONE Over 14 000 oz of gold was poured in the six weeks since production started at the Yaramoko gold mine
Gold mining company Roxgold expects its key asset, the high-grade Yaramoko gold mine, located in the Houndé greenstone region of Burkina Faso, in West Africa, to reach commercial production in the third quarter of this year, as ramp-up activities continue to progress well.
“We have poured over 14 000 oz of gold in the six weeks since production started at Yaramoko,” comments Roxgold president and CEO John Dorward in the company’s production results for the second quarter.
The company explains that stoping activities started in July, as scheduled, with drilling of the first panel under way, ahead of the delivery of production ore expected later in the month.
An opening ceremony for the Yaramoko mine took place on July 7. Burkina Faso Prime Minister Paul Kaba Thieba was in attendance, as was Minister of Mines Professor Alpha Oumar Dissa. Also in attendance were several government Ministers, high-ranking government officials, members of neighbouring communities, Roxgold employees and local media.
Prior to the ceremony, the eastern ventilation shaft was commissioned mid-quarter and is now operating. The western ventilation shaft was subsequently completed in June and is currently being commissioned.
Dorward reports that commissioning at the processing facility is complete with ramp up occurring without any unexpected interruptions. Operating time, throughput rate and gold recovery have swiftly hit or exceeded targets and the near-term focus is to improve the efficiency of these areas as the mine continues to ramp up its production levels.
The company’s cash and gold position by the end of June, was about $48-million. This figure includes a cash balance of about $33.8-million, receivables from gold sales of about $6-million and gold bullion inventory at a market value of about $8.2-million.
Roxgold’s financial results for the 2016 second quarter will be reported on August 17.
Second-Quarter Production
The company highlights that first gold was poured on May 16, with gold production totalling 14 482 oz. Additionally, 40 339 t of ore was milled at the processing facility at an average throughput rate of 32 t/h or 761 t/d (above nameplate capacity of 750 t/d).
Roxgold states that the average mill operating time was 95.8% in the second quarter with a mill feed grade of 13.4 g/t.
Average gold recoveries of 97.5% were above the design rate of 96.9% and year-to-date underground production as of June 30 was 54 745 t, grading at 14.77 g/t for 25 993 oz of contained gold.
Expectations
The 11 000 m advanced definition and expansion drill programme at the 55 zone is now complete and results are expected in August.
Roxgold also intends to complete an updated mine plan for Yaramoko, prior to the end of the year, which will incorporate recent resource drilling.
Following the delineation of a maiden resource at Bagassi South, in the 117 zone on the Yaramoko permit, reported on April 27, the company intends to continue assessing the technical and economic aspects of the deposit in the fourth quarter of this year.
In April, Dorward commented that Roxgold was pleased to be able to show another milestone in terms of growth on the Yaramoko permit, as it continued to focus on delivering the Yaramoko gold project on time and within budget.
“We are encouraged to have a second mineral resource on the Yaramoko permit (at Bagassi South) that highlights the prospectivity of the permit and Roxgold’s potential for organic growth.”