SEMAFO (TSX:SMF) released results of a feasibility study for its Natougou gold project in Burkina Faso. It has also entered into a commitment letter with Macquarie Bank to amend its existing credit facility.
As quoted in the press release, highlights included:

• During the first three years
  • Average annual production of more than 226,000 ounces
  • Average total cash cost¹ of $283/oz and all-in sustaining cost² of $374/oz
  • Average head grade of 5.72 g/t at a gold recovery rate of 93.8%
• Production of some 1.2 million ounces at total cash cost of $408/oz and a gold recovery rate of 92.9% over a projected mine life (“LOM”) in excess of 7 years
• LOM all-in sustaining cost of $518/oz including capitalized stripping and sustaining capital expenditures
• Maiden open pit mineral reserves of 9.6 million tonnes at a grade of 4.15 g/t Au for 1,276,000 ounces of contained gold
• Initial capital expenditures: $219 million, which includes $42 million in pre-stripping expenditures and an $18-million contingency
• Project economics (base case at $1,100/oz):
  • After-tax 5% NPV: $262 million
  • After-tax IRR: 48%
  • Payback period: 1.5 years
• Targeted construction start-up: year-end 2016
• Expected first gold pour: second half of 2018 with first year of full production in 2019

Click here for the full press release.