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Banfora gold project, Burkina Faso

22nd July 2016

  

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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 during the initial heap leach operations will average about 63 300 oz for the first two years, while access to near-surface higher-grade transitional material could increase production to an average of 78 600 oz/y. The addition of the CIL plant will increase gold production to about 130 000 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 $130-million, from $97-million in the 2014 feasibility study, with $85-million 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.

Duration
Not stated.

Latest Developments
Gryphon is progressing a funding solution for the project.

In July, Gryphon raised A$4.4-million from Teranga Gold, which in June made an offer to buy the junior. Gryphon will use the funds of the placement to accelerate the completion of updated engineering studies and resource and reserve drilling for the CIL plant.

A fully optimised and derisked feasibility study is expected to be completed in the first half of 2017.

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.

Edited by Creamer Media Reporter

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