Resolute Mining has started production at its all-new Syama underground gold mine, an important milestone for the Australian miner.
The extraction of first ore from Syama sublevel cave marks the start of the main caving operation at the underground mine and the achievement of a major milestone for the gold miner.
“Syama will be the world’s first, purpose built, fully automated sublevel cave gold mine,” said John Welborn, managing director and CEO.
“It is a world-class, long-life, low-cost asset that will deliver long term benefits to our shareholders, stakeholders, and local Mali communities for years to come. Syama will be the most sophisticated and advanced gold mine in Africa. Our investment in exploration, infrastructure, technology, power, and innovation at Syama has transformed a world-class orebody into a world-class mine,” he added.
Since starting construction in 2016, approximately 400,000 tonnes of developing and long hole stoping ore have been extracted from the mine.
Resolute expects that mining rates will gradually build up over the first half of 2019, and will reach nameplate capacity of 200,000 tonnes per month by the end of June next year.
“The combination of mine automation, improved recoveries, and lower cost power has the potential to increase Syama site production to 300,000 ounces of gold per annum and reduce life-of-mine (LOM) all-in sustaining costs (AISC) to below US$750 per ounce,” noted Welborn.
Adding,”[t]he Syama underground mine is an achievement that builds Resolute’s African development expertise demonstrated in earlier successes at Obotan and Golden Pride. The new mine also builds on the company’s underground technical achievements demonstrated in pioneering the sublevel shrinkage mining method at the Mount Wright underground mine in Ravenswood, Queensland.”
Last Tuesday (December 11), the Queensland government extended the prescribed project status of the Ravenswood expansion project (REP) to the end of November 2020.
Welborn commented on the extension, stating, “[t]he Queensland government shares our view that the economic and social benefits of continuing gold mining in Ravenswood are significant for the region and for Queensland. The prolonged life of Mt Wright, and the collaborative and proactive approach to receiving regulatory approvals for our expansion plans, is allowing further enhancement opportunities to be identified and progressed.”
As per the company’s REP, its Ravenswood project is set to deliver 1.5 million ounces of gold production over a 13 year mine life with LOM AISC reduced to AU$1,097 per ounce and average gold production of approximately 115,000 ounces per year.
As of 12:35 p.m. EST on Monday (December 17), Resolute was up 4.74 percent, trading at AU$1.11.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.