Boungou Development

Development

Boungou is a high-grade gold deposit located in the Est region in southeastern Burkina Faso. Construction is underway with first gold pour scheduled for the third quarter of 2018.

Highlights

  • Mining: Open pit
  • Processing: 4,000 tpd /CIP plant
  • Mine life: +7 years*
  • Capital expenditures: $231 million*
  • After-tax 5% NPV: $262 million at base case of $1,100/oz Au
  • After-tax project IRR: 48% at $1,250/oz Au
  • During the three years,
    • Average production of + 226,000 oz
    • Average total cash cost of $283/oz
    • Average all-in sustaining cost of $374/oz
    • Average head grade of 5.72 g/t
  • Ownership: 90%

*based on year-end 2016 mineral reserves and resources.

 

2017 Update

At the end of June, construction of the mine was 35% complete and $69 million of the $231 million had been spent.

By end of July, construction of the processing plant was progressing well, and more than two million tonnes of the total pre-strip material had already been moved from the pits. The water storage facility has been excavated and has accumulated about 250,000 cubic meters of water. Installation of the vertimill - our first long-lead item - will begin in mid-August. In September, construction of the mining camp will be complete as will resettlement of the local inhabitants.

 

Construction Schedule

Geology

The Boungou permit, which contains the Natougou deposit, lies within the Diapaga Greenstone Belt, a northeast-southwest orientated belt that extends over 250 kilometers in length and over 50 kilometers in width. SEMAFO holds four contiguous permits, collectively known as the Tapoa Permit Group, covering approximately 70 kilometers in strike length along the Diapaga belt. Laterite and alluvium cover extensive (lateral) portions of the permit however both are generally less than 10 meters in thickness.

Exploration

The aim of the 2017 exploration programme is threefold: to upgrade the inferred resources on the West Flank to the indicated category; to investigate the potential for an underground operation; and to carry out exploration drilling on both proximal and local permits.

More on the 2017 programme