Nabanga Project

Located 250 kilometers south-east of Ouagadougou, the Nabanga Gold Project lies within the Nabanga exploration permit.

Positive PEA Results

On September 30, 2019, SEMAFO announced positive results from a preliminary economic assessment (PEA) for the Nabanga deposit. For more information on the PEA, consult the technical report here.

Highlights

- Pre-tax NPV of $147M and after-tax NPV of $100M, using a 5% discount rate

- LoM gold production of 571,000 oz at AISC of $760/oz and a recovery of 92% during the 8 years of operations

- Pre-production capital expenditure of $84M, including 20% contingency, and $56M in LoM sustaining capital

- Project economics (base case of $1,300/oz gold price):

- After-tax 5% NPV: $100M

- After-tax IRR: 22.6%

- Payback period: 4.4 years

- Preferred mining method - open-pit / underground mining on the upper and at-depth portions of the ore zone, respectively

- Opportunities exist to improve returns through an increase in resources and additional cost saving measures in the mining operations and development

Mineral Resources

The PEA is based on mineral resources estimated as at December 31, 2018 for the Nabanga deposit.

Classification Tonnes Mt Au g/t Ounces Koz
Inferred Resources1 3.4 7.7 840

(1) Nabanga mineral resource is reported above a 3.0 g/t Au cut-off grade

Qualified Persons & Technical Report

The Nabanga deposit PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no guarantee that inferred resources can be converted to indicated or measured resources and as such, there is no certainty that the PEA will be realized. A technical report for the PEA prepared in accordance with National Instrument 43-101 will be filed at www.sedar.com within 45 days of the news release.

The PEA was conducted by the firm DRA Met-Chem and revised by Patrick Moryoussef, Eng., Vice-President, Mining Operations, SEMAFO and Qualified Person, as defined by National Instrument 43-101. Patrick Moryoussef has reviewed this press release for accuracy and compliance with National Instrument 43-101. The PEA is based on SEMAFO’s technical report on the resources of the Nabanga gold deposit as at December 31, 2018, available on SEDAR at www.sedar.com or available here.