Striked gold $$ https://web.tmxmoney.com/article.php?newsid=6874790409938138&qm_symbol=ROXG
Bagassi South Project Feasibility Study – Base Case Highlights (on a 100% basis and a gold price of $1300/oz):
- After-tax NPV5% of $50 million
- After-tax IRR of 53.2% with a 1.8 year payback on initial capital
- Average Total Cash Costs of $426/oz (including royalties)
- Average All-in Sustaining Costs of $630/oz
- Pre-Production capital of $29.6 million
- Estimated average annual gold production of 40,000 ounces
- Current mine life of 4.2 years based on reserves
- Proven and Probable mineral reserves of 170,000 ounces of gold at 11.54 grams per tonne ("g/t") Au from Bagassi South
- Represents an increase of Reserves of 26% for the Yaramoko Gold Project (55 Zone + Bagassi South)
- Conversion ratio of 91% from Indicated Resources to Reserves
- Average metallurgical recovery of 98.5% of gold
- Ongoing infill drilling at Bagassi South has the potential to increase mine life which could further improve future economics
"The Bagassi South expansion adds substantial value to Roxgold by increasing Yaramoko Gold Project gold production by approximately 40% to over 150,000 ounces in the near term. Like the neighbouring 55 Zone, the economics of this additional high grade feed source are highly accretive and generate increased cashflow from a modest capital outlay. Consistent with our commitment to offer accretive growth while managing dilution, this expansion will be funded from our own balance sheet without the need for additional equity from our shareholders. In addition, work is already underway to extend the mine life at Bagassi South through the current infill and extensional drilling program on the QV Prime structure," stated John Dorward, President and CEO.