SEMAFO Releases Feasibility Study for Natougou

Gold Investing

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.

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.

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