TORONTO, Sept. 12, 2016 /CNW/ - Roxgold Inc. ("Roxgold" or
the "Company") (TSX.V: ROG) is pleased to report an update on
operations and gold production from the Yaramoko Gold Mine located
in Burkina Faso.
"We are very pleased by the excellent performance of the
processing facility as well as the continued ramp up of the
underground operations. Since pouring first gold on the
16th of May 2016, the
project has steadily moved through various performance milestones,"
commented John Dorward, Roxgold's
President and CEO. "Gold production at Yaramoko reached 35,753
ounces at a mill feed grade of 15.44 grams per tonne as of
August 31, 2016 and the Company is
still on track to reach commercial production in the third
quarter."
Key Production Metrics As Of August
31, 2016
|
May
|
June
|
July
|
August
|
YTD
Total
|
Total
Development
|
(metres)
|
545
|
589
|
562
|
664
|
4,411
|
Ore Mined
|
(tonnes)
|
10, 500
|
11,767
|
13,371
|
16,459
|
84,576
|
Milled
|
(tonnes)
|
18,631
|
21,708
|
20,760
|
19,845
|
80,944
|
Head Grade
|
(g/t Au)
|
11.57
|
14.92
|
15.73
|
19.35
|
15.44
|
Gold
Recovery
|
(%)
|
97.16
|
97.65
|
98.65
|
99.10
|
98.27
|
Mill Operating
Time
|
(%)
|
74.9
|
98.6
|
98.0
|
96.7
|
96.6
|
Gold
Poured
|
(ounces)
|
2,082
|
12,400
|
10,538
|
10,733
|
35,753
|
Operations Update
In August, stoping operations were established with the
successful mining and extraction of the first stope. Due to the
good rock conditions encountered, this stope located on the 5219RL,
was increased in size from 25 metres to 40 metres in length, and
delivered 4,321 tonnes of ore at 28.49 grams per tonne ("gpt").
Clean hanging wall contacts were observed and the overall dilution
for the stope was 10.7%, which compares favourably to the
Feasibility Study assumption of 20.5%. In September, further
openings will be mined with a second stope currently being accessed
on the 5219RL.
The processing plant continues to operate very well with high
availabilities. Gold recoveries have been above the Feasibility
Study assumption of 96.9% in all months with over 99% recovery
experienced in August. In addition, the plant team continue to
observe improved operating performance in the gravity circuit.
In the coming months the focus of the team at site is to
continue to ramp up mine productivity to support mill
throughput.
HV Power Grid Update
Work continues to progress on the connection to the high voltage
national electricity grid in Burkina
Faso. The transmission line construction is complete and
Eiffage, the substation contractor, has established civil works for
the substation.
The substation transformer is scheduled to arrive at the
Abidjan, Ivory Coast port in
mid-September 2016 and is expected on
site by mid-October 2016. Progress is
positive and the Company anticipates drawing on the power supply in
Q1 2017.
Financial Position and Corporate Communications
Activities
As at August 31, 2016, Roxgold's
cash and gold position was approximately US$63.5 million. This figure includes a cash
balance of approximately US$49.4
million, receivables from gold sales of approximately
US$7.7 million and gold bullion
inventory at a market value of approximately US$6.4 million.
The Company will be attending the Precious Metals Summit and
Denver Gold Forum investment conferences in Colorado this month.
John Dorward will be providing an
update on the Company's activities at the Precious Metals Summit on
September 15, 2016 at 11:00AM MDT, which can be viewed via live webcast
here:
http://www.gowebcasting.com/conferences/2016/09/14/precious-metals-summit/day/2
Mr. Dorward will also be presenting at the Denver Gold Forum on
September 20th, 2016 at
4:40PM MDT, which will be available
via webcast on September 23, 2016 by
clicking here:
http://www.denvergoldforum.org/dgf16/company-webcast/ROG:CN/.
Upcoming Catalysts
At the 55 Zone, a drilling program commenced last week with the
intention to test the extension of the high grade zone at depth
with approximately 15,000 meters of drilling planned.
A second drilling program, commencing next month, will also be
undertaken at Bagassi South to expand on the resource at the QV'
target with approximately 4,000 metres of drilling planned.
In addition to the near-mine drilling program, regional
exploration at Yaramoko will also re-commence this month. A soil
geochemistry program has been planned in the southern portion of
the concession over a prospective granitic intrusion along the
Yaramoko shear. The targeted area is approximately 6 square
kilometres and the sampling will be conducted along 100 metre
spaced lines.
USD$2.5 million has been budgeted
for the remainder of the 2016 exploration program.
Roxgold is currently working on an updated Life of Mine ("LOM")
Plan, the results of which are scheduled to be released in Q1 2017.
As part of this update, Roxgold intends to include the results of
an initial assessment on the potential for an underground operation
at Bagassi South.
Bagassi South has an inferred resource estimate of 563,000
tonnes at 12.14 gpt containing 220,000 ounces of gold (see press
release dated April 27, 2016) and is
located approximately 1.8 kilometres from the Yaramoko processing
facility.
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.
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". 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 Mining Contract Option, 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.