TORONTO, June 8, 2016 /CNW/ - Roxgold Inc. ("Roxgold"
or "the Company") (TSX.V: ROG) is pleased to report an update on
the project status of the Yaramoko Gold Mine located in
Burkina Faso.
"Since the start-up of the Yaramoko gold mine, 9,594 ounces of
gold have been recovered to inventory, of which 3,564 ounces have
been shipped. The processing plant has operated at an average
of 759 tonnes per day ("tpd"), which is above its nameplate rate of
750 tpd," commented John Dorward,
Roxgold's President and CEO. "The ramp up has occurred without any
major issues and commercial production is expected in the third
quarter."
Highlights:
- Processing plant and associated infrastructure now
complete
- 9,594 ounces of gold recovered since start-up (includes
produced and inventory)
- Processing facility has milled 24,778 tonnes of ore
- Average throughput of 759 tpd since ore commissioning commenced
(above nameplate of 750 tpd)
- 18,839 tonnes of ore on the Run of Mine ("ROM") pad at a grade
of 18.7 grams per tonne ("g/t")
- Average gold recoveries of 97.2% - in line with design
rate
- Electricity offtake agreement signed with Sonabel, the national
electricity provider
- Stoping operations to commence in July as scheduled
Mine Development
The eastern ventilation shaft has been completed with the fan
installed and operational. The second (western) ventilation shaft
is nearing completion.
Underground development continues to advance well and remains
ahead of plan. The ramp has advanced 806 metres from the portal in
the East and West declines with workings opened up on four levels,
which has enabled development on ore.
Ore milled to date has reconciled well with underground face
samples and the Company is pleased with overall performance to date
against the resource model. The Company has been encouraged by the
method in which the vein is being mined with dilution being well
managed.
The operations team is now focused on preparing for stoping
activities in the third quarter.
Processing Plant
Construction of the processing plant and associated
infrastructure is complete. Practical completion for the DRA/Group
Five Joint Venture (the "YJV") has been awarded and the contractual
performance test was completed and passed on May 13, 2016.
Since completion, the plant has operated at or above its
nameplate levels. Both plant operating time and unit throughput
rates have met or exceeded design metrics of 91.7% and 34 tonnes
per hour ("tph") respectively.
Similarly, gold recoveries, averaging 97.2%, have met or
exceeded the design rate of 96.9%. Carbon-in-leach ("CIL"), together with the
gravity circuit performance have both been positive, with a gravity
recovery contribution of 55% in May. Further improvements in this
area are a focus for the processing team.
Work on the construction of the HV powerline, which is based on
lump-sum contracts, has commenced on site. The grid
power offtake agreement with Sonabel, the national electricity
provider, has recently been signed. All other required mine
infrastructure is complete.
Financing
The Company's cash position at the end of May 2016 was approximately US$32 million. Subsequently, 3,000 ounces of gold
have been sold and the remaining approximately $8 million from the Company's US$75 million project finance facility, provided
by Societe Generale and BNP Paribas, has been drawn down.
The US$10 million shares for
services arrangement with the underground mining contractor,
African Underground Mining Services ("AUMS"), remains in place and
available to Roxgold, however, the Company does not envisage
utilizing this facility.
Expected Upcoming Catalysts
Following the maiden resource at Bagassi South, reported on
April 27, 2016 (found here), the
Company intends to complete a study on the deposit in the fourth
quarter of 2016.
The Company also intends to complete an updated mine plan for
the 55 Zone, prior to the end of the year, based on additional
resource drilling currently underway.
Roxgold is confident commercial production at Yaramoko will be
achieved before the end of the third quarter.
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.
Corporate Video
Shareholders are encouraged to view Roxgold's corporate video
which provides a summary of the Company, and captures the progress
that has occurred at Yaramoko by clicking here.
About Roxgold
Roxgold is a gold mining company with its key asset, the high
grade Yaramoko Gold Mine, located in the Houndé greenstone region
of Burkina Faso, West Africa. The Company expects to reach
commercial production in Q3 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."
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".
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.