TSX-listed West Africa-focused gold miner Semafo produced 244 600 oz of gold at its Boungou and Mana mines, in Burkina Faso, in 2018 – in line with its guidance of producing 235 000 oz to 265 000 oz.
The company achieved a consolidated all-in sustaining cost (AISC) of $951/oz for the year.
Boungou achieved an AISC of $596/oz for 2018 and Mana an AISC of $1 056/oz.
Semafo noted on Friday that its gold sales had increased by 15% year-on-year to $297-million.
The company further commented that underground development had started at Siou – the high-grade gold deposit located about 20 km from Mana – in the third quarter of 2018 and remains on budget and on schedule.
Semafo is expecting consolidated production of between 390 000 oz and 430 000 oz this year, representing a 68% year-on-year increase. Its AISC guidance for this year has been set at between $685/oz and $735/oz – a reduction of 26% year-on-year.
The company expects an initial exploration budget of $19-million, half of which is allocated to Boungou.
“In 2019, at Boungou, we expect to process about 1.3-million tonnes of ore at an average grade of 5.72 g/t with an average gold recovery rate of 94%.”
Semafo further expects the Mana mill to process around 2.4-million tonnes at an average grade of 2.68 g/t, with an average gold recovery rate of 86%.
The company added that a total of 2.3-million tonnes of ore will be extracted from the Siou and Wona pits at an average grade of 2.76 g/t, with the remaining balance sourced from low-grade material.
“[About] 350 000 t of ore will be sourced from Siou in 2019, which means that the 2020 mine plan will include some Siou high-grade, openpit ounces at a very low strip ratio.”