TORONTO, April 12, 2016 /CNW/ - Roxgold Inc. (the
"Company" or "Roxgold ") (ROG.V) is pleased to provide a
development update for the Yaramoko Gold Project (the
"Project").
Highlights:
- Overall construction program approximately 84% complete
- Ore development on four levels progressing well with plant
commissioning activities underway
- 2,450 metres of decline and lateral development now in place
versus a plan of 1,755 metres
- Over 23,000 tonnes of ore now on the Run of Mine ("ROM")
pad
- Processing facility approximately 90% complete and on
schedule
- Major equipment packages installed and vendor commissioning
underway
- First ore crushed in late March
- Approximately US$78 million of
the US$110.8 million capital spent to
date
- First gold production remains on target for June 2016
- Commencement of an 11,000 metre resource definition and
expansion drilling program at the 55 Zone
Since the last update (see Roxgold Press Release dated
February 8th, 2016),
development of the Yaramoko Gold Project has advanced considerably.
Performance in the underground mine continues to exceed
expectations with development rates in waste and ore above plan.
Commissioning activities have commenced in the processing plant and
the contractor and Company personnel are working in earnest towards
practical completion in May 2016.
The Project remains on budget and on schedule to produce gold in
June 2016. As of the end
of March, the Company had spent approximately $78 million and remains on target to complete the
Project within the budget of $110.8
million.
Roxgold's President & CEO, John
Dorward, commented "We are very pleased to be
transitioning the project into commissioning activities. With the
mine outperforming on development rates, contributing to a healthy
ROM pad balance, Roxgold is well positioned to advance through the
end of the construction phase and into commissioning and production
remains on schedule for first gold production in June."
In addition to the development of the Yaramoko Gold Project,
Roxgold is also pleased to advise that a resource definition and
expansion drilling program, comprising of approximately 11,000
metres of diamond drilling, is scheduled to commence later this
week. The intent of this program is to target resource expansion
opportunities in the upper 430 metres of the 55 Zone deposit with
an expectation of including the results in an updated Life of Mine
plan in late 2016.
Mine Development
The eastern ventilation shaft was completed with the raise borer
breaking through surface at the beginning of April. The first fan
is being assembled and is planned to be installed in mid-April. The
second (western) ventilation shaft raise bore is expected to be
completed in June.
The back-up diesel fired power station was completed and
commissioned in February and is now reticulating 11kV power across
the Project. Negotiations for a grid power offtake agreement are
well advanced with Sonabel, the national electricity provider. All
other required mine infrastructure is complete.
Underground development continues to advance well, with the
underground contractor, African Underground Mining Services
("AUMS"), delivering above plan development rates in ore and waste
in recent months.
The ramp has now advanced 610 metres from the portal and opened
up four levels (5270, 5253, 5236 and 5219), which are developing on
ore. This has contributed to a ROM pad inventory of over 23,000
tonnes in advance of the commencement of ore processing at the
plant.
The Company is encouraged by what has been observed in the ore
drives with the orebody profile and thickness consistent with that
of the block model. Initial face sampling of the crosscuts
indicates that ore grades are consistent with expectations.
AUMS are fully established with a full complement of personnel
and equipment for pre-production and operational phases including
the planned commencement of stoping activities in the third
quarter.
Processing Plant
Construction of the processing plant by the lump sum
engineering, procurement, construction ("EPC") contractor, the
DRA/Group Five Joint Venture (the "YJV"), is approximately 90%
complete.
In late March, the plant crushed the first ore, essentially
commencing production commissioning on the Project.
All materials and equipment required for the completion of
construction and commissioning are now on site and, in most cases,
installed.
Plant civil and concrete works are complete and all structural
steel has been erected.
Carbon-in-Leach ("CIL") tanks
are complete with the focus now on completion of piping
installation across the processing facility as well as continuing
with the installation of electrical and instrumentation cabling and
equipment.
The workshop, warehouse and reagents storage sheds are complete
and are being fitted with equipment and are receiving stock. The
office, processing plant mess and security buildings are complete
and will be occupied in April.
Several key packages, including the SAG mill, crushing circuit,
thickener, reclaim apron feeder, and compressed air system have
been commissioned and signed off by the respective vendors'
representatives on site and are ready for ore commissioning. The
YJV's commissioning engineers and Roxgold's operational team are
working through commissioning milestones with the intent of pouring
first gold in June.
Operational Readiness
Roxgold's full operations team is in place and the focus remains
on the development of training systems and start-up procedures.
Reconciliation and reporting models, incorporating geology,
mining and processing disciplines are also now in place with ore
being delivered to the ROM pad.
Financing
The Company's cash position, including the restricted
US$15 million cost over-run account,
is approximately US$42 million. In
addition, approximately US$15.5
million remains undrawn from the Company's US$75 million project finance facility provided
by Societe Generale and BNP Paribas.
Remaining estimated pre-production capital required for the
development of the Yaramoko Gold Project is approximately
US$32.8 million.
The US$10 million AUMS shares for
services arrangement remains in place and available to Roxgold.
Following the recent equity financing, the Company does not
envisage utilizing this facility.
Expected Upcoming Catalysts
- Commencement of an 11,000 metre resource definition and
expansion drilling program in the upper 430 metres of the 55
Zone
- Maiden resource estimate for the QV1 target at Bagassi South in
May 2016
- Expected first production of gold from the Yaramoko Gold
Project in June 2016
Qualified Persons
Paul Criddle, FAUSIMM, Chief
Operating Officer for Roxgold Inc., and Craig Richards P. Eng, Principal Mining Engineer
for Roxgold Inc., are Qualified Persons within the meaning of
National Instrument 43-101, and have verified and approved the
technical data disclosed in this press release.
Photo Gallery
Shareholders are encouraged to follow the progress of the
Yaramoko Gold Project in our Photo Gallery on our website at
www.roxgold.com
About Roxgold
Roxgold is a gold exploration and development company with its
key asset, the high grade Yaramoko Gold Project, located in the
Houndé greenstone region of Burkina
Faso, West Africa. The
Company is currently in construction and expects to be producing
gold in Q2, 2016. Roxgold trades on the TSX Venture Exchange under
the symbol ROG and as part of the Nasdaq International Designation
program with the symbol OTC: ROGFF.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release."
Forward-Looking Information
This news release contains forward-looking information. Forward
looking information contained in this new release includes, but is
not limited to, the expected completion of the balance of the AUMS
equity financing facility and the terms thereof, and the expected
use of proceeds thereof. These statements are based on
information currently available to the Company and the Company
provides no assurance that actual results will meet management's
expectations. In certain cases, forward-looking information may be
identified by such terms as "anticipates", "believes", "could",
"estimates", "expects", "may", "shall", "will", or "would".
Forward-looking information contained in this news release is based
on certain factors and assumptions regarding, among other things,
the estimation of mineral resources and mineral reserves, the
realization of resource estimates and reserve estimates, gold metal
prices, the timing and amount of future exploration and development
expenditures, the estimation of initial and sustaining capital
requirements, the estimation of labour and operating costs, the
availability of necessary financing and materials to continue to
explore and develop the Yaramoko Gold Project in the short and
long-term, the progress of exploration and development activities,
the receipt of necessary regulatory approvals, including the
approval of the TSX Venture Exchange for the balance of the AUMS
equity financing facility, and assumptions with respect to
currency fluctuations, environmental risks, title disputes or
claims, and other similar matters. While the Company considers
these assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include: changes in market conditions, unsuccessful exploration
results, changes in the price of gold, unanticipated changes in key
management personnel and general economic conditions. Mining
exploration and development is an inherently risky business.
Accordingly, actual events may differ materially from those
projected in the forward-looking statements. This list is not
exhaustive of the factors that may affect any of the Company's
forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
the Company's forward-looking statements. The Company does not
undertake to update any forward-looking statement that may be made
from time to time by the Company or on its behalf, except in
accordance with applicable securities laws.
SOURCE Roxgold Inc.