PERTH (miningweekly.com) – Gold miner Resolute Mining has initiated a strategic review of its Bibiani gold mine, in Ghana, assessing plans to recommission the mine.
The ASX- and LSE-listed gold miner said that the review would assess capital requirements, evaluate funding alternatives and investigate recently received expressions of interest from third parties seeking to acquire the asset.
The company told shareholders that the review would look to maximise value for Resolute shareholders, while ensuring that all local stakeholders continued to benefit from the economic and social advantages that re-establishing the operation would provide.
No binding agreement has been entered into regarding the financing or divestment of Bibiani, the miner said.
The project was acquired by Resolute in 2004, and was placed on care and maintenance shortly after, to allow exploration activities to enable the development of an economically viable, long-term, large-scale operation.
A 2018 feasibility study into a Bibiani restart estimated that the project could produce some 100 000 oz/y over a ten-year mine life, at a total capital cost of around $115-million.
The project is currently estimated to host some 21.7-million tonnes, grading 3.6 g/t gold for 2.5-million ounces of contained gold.