Name and Location
Bibiani underground gold redevelopment project, Ghana.

Client
Resolute Mining.

Project Description
The results of Resolute’s first pass underground scoping study has delivered an underground mining inventory of 4.3-million tonnes grading 4.2 g/t of gold, at a 3.25 g/t gold cutoff for 574 000 oz, close to the existing underground decline and level development requiring minimal development capital expenditure.

Other key results from the study that support a redevelopment of the underground mine include:
• observed stable underground geotechnical conditions, which support long-hole stoping mining methods;
• an extensive orebody strike length, with potential for further economic ore zones as project development continues;
• existing level development available on the 7, 8 and 9 levels provide early access at low capital cost to potential stoping blocks while evaluation work and mine development continues into new areas; and
• an established operating site with a processing plant and associated facilities, including grid-connected power, reducing any significant capital costs.

Net Present Value/Internal Rate of Return
Not stated.

Value
The scoping study indicates a positive gold project, with a $30-million start-up capital risk and a short payback – $15-million will be required for underground development and a further $15-million for plant and infrastructure upgrades.

Duration
Not stated.

Latest Developments
Resolute is hoping to turn its recently acquired Bibiani project into a high-margin, long-life operation.

Surface operations at Bibiani were suspended in May 2013, as owner Noble Mineral Resources revised its operational strategy to produce higher-margin ounces.

Resolute completed the acquisition of the Bibiani project from Noble, which went into administration at the end of 2013, in June 2014.

Resolute CEO John Welborn has said that Resolute will undertake more drilling to build the resource inventory at Bibiani, which will assist it in justifying the scale of production planned for the project.

The company is also working to improve the project financials, with Welborn saying that most of the savings will come down to optimising the orebody.

“There are a lot of ounces in the ground at Bibiani. We now need to do the work that can define a project within our paramenters and then we will make an investment decision.”

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Resolute Mining, tel +61 8 9261 6100, fax +61 8 9322 7597 or email contact@rml.com.au.