Name and Location
Banfora gold project, Burkina Faso.

Client
Gryphon Minerals.

Project Description
An optimisation study on the Banfora project has highlighted significant enhanced project economics using additional control data for in-pit resources.

The study considers the development of a two-million-tonne-a-year heap-leach start-up operation, as well as the upside potential for expansion by adding a conventional one-million-tonne-a-year carbon-in-leach (CIL) processing plant.

The 2014 feasibility study only considered a two-million-tonne-year heap-leach operation.

With the addition of the CIL plant, Banfora’s mine life is expected to decrease from 9.2 years, estimated in the original scoping study to seven years.

Gold production is expected to increase from 70 600 oz/y in the 2014 feasibility to 133 000 oz/y.

Net Present Value/Internal Rate of Return
The optimised study has increased the project’s after-tax net present value, at a 5% discount rate, from A$90-million in 2014 to A$210-million.

The project’s internal rate of return has increased from 20.5% to 42.2%.

Value
Capital costs, including working capital and contingencies, are estimated at A$130-million, from $97-million in the 2014 feasibility study.

$85-million has been earmarked for the heap-leach operation and $45-million for the CIL.

The CIL costs could be funded with early cash flow from the initial heap-leach operations.

The 2014 study estimated costs at about A$97-million.

Duration
Not stated.

Latest Developments
With the optimisation and additional capacity studies completed and a mining permit granted, Gryphon can progress to the completion of debt funding due diligence, which is one of the final hurdles to starting development at the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Gryphon Minerals, tel +61 8 9287 4333, fax +61 8 9287 4334 or email admin@gryphonminerals.com.au.