AMN - BURKINA FASO: Natougou Gold Project permit approved

The Council of Ministers of the Government of Burkina Faso has approved SEMAFO’s mining permit application for the Natougou Gold Project. Receipt of the mining permit enables development of the Natougou project to proceed on schedule.

Construction activities are expected to begin in coming weeks with the mobilisation of the bulk earthworks team on site. The first gold pour is expected in the second half of 2018.

A key component of the corporation's growth platform, the Natougou project is in southeast Burkina Faso, 320km from the capital of Ouagadougou.

In February 2016, SEMAFO announced a positive feasibility study for Natougou, which confirmed the economic viability of an open-pit, CIP project giving an after-tax IRR of 48% at a gold price of $1100/oz. Initial capital expenditures are estimated at $219 million, which includes $42 million in pre-stripping expenditures and an $18-million contingency. During the first three years, average annual production at Natougou is estimated at over 226,000 oz at a total cash cost of $283/oz and an all-in sustaining cost of $374/oz.

SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. It operates the Mana Mine in Burkina Faso, which includes the high-grade satellite deposits of Siou and Fofina,and is developing the advanced gold deposit of Natougou.

www.semafo.com

News courtesy of International Mining