SEMAFO Signs Underground Mining Services Contract with AUMS

SEMAFO Inc. (TSX:SMF) reported that it has signed a mining services contract with African Underground Mining Services (“AUMS”) to provide turnkey mining services for Siou underground. AUMS is a well-known and reputable mining contractor with underground experience in Burkina Faso and across Africa.

As quoted in the press release:

Under the mining services contract, AUMS will be responsible for supplying the mining fleet and a skilled labour force for Siou underground in addition to ensuring development, production and auxiliary services. SEMAFO will provide technical services including geology and engineering as well as leveraging the existing surface infrastructure at Mana.

The mining services contract has a term of 70 months. The economic terms of the mining services contract are consistent with the economics presented in the Mana pre-feasibility study filed March 29, 2018 on SEDAR.

Preparatory work has already commenced on Siou underground with full project deployment scheduled for the third quarter of 2018. Both SEMAFO and AUMS have solid reputations for completing projects on time and on budget.  Production from Siou underground is expected in early 2020.

Click here to read the full SEMAFO Inc. (TSX:SMF) press release.