TORONTO, Feb. 8, 2016 /CNW/ - Roxgold Inc. (the "Company"
or "Roxgold ") (ROG.V) is pleased to provide a development update
for the Yaramoko Gold Project (the "Project").
Development Highlights:
- Approximately US$64 million of
the US$110.8 million capital estimate
spent to date and the project remains on budget
- Project commissioning remains on target for Q2 2016
- Overall construction program approximately 75% complete and on
schedule
- Bulk earthworks complete
- Tailings Storage Facility ("TSF") complete
- 1,237 metres of decline and lateral underground development
completed against a plan of 972 metres
- Processing Facility approximately 80% complete and on
schedule
Since the last update (see Roxgold Press Release dated
December 10, 2015), development of
the Yaramoko Gold Project has advanced considerably with
significant infrastructure packages now complete. Underground mine
development rates are ahead of plan and the Project continues to
track on time and on budget with the first gold pour remaining on
schedule for next quarter.
Work progressed across the property with all contractors
mobilized and established. In January, the Project personnel levels
peaked at 750 people on site. At the end of January, the
Company had spent approximately US$64
million and remains on target to complete the Project within
the budget of US$110.8M.
Roxgold President & CEO, John
Dorward states: "We are very pleased with the
progress on the Project in recent months. With a number of
important infrastructure works now complete, the team is focusing
on underground development and the start of commissioning
activities."
Bulk Earthworks
Bulk earthworks are complete and the TSF and the Water Storage
Facility are being handed over to the operations group.
Mine Development
During the month of December 2015,
the underground mine access infrastructure was completed with the
Armtec tunnel installed and the boxcut backfilled.
Underground development has advanced well, with the underground
contractor, African Underground Mining Services ("AUMS"),
delivering several months of above plan development rates. Total
development meterage stood at 1,237 metres as at the end of January
against a planned level of 972 metres.
As at the end of January 2016, the
ramp had advanced 610 metres from the portal and level development
was advancing on four levels, namely the 5270, 5253, 5236 and 5219
levels.
Since the last update, the deposit has been cross-cut at the
above mentioned four levels, exposing the 55 Zone vein. The Company
is encouraged by what has been observed here with the orebody and
thickness consistent with that of the block model. Initial chip
sampling of the crosscuts indicate that ore grades are also
consistent with expectations.
The vent raise contractor, Bauer
Drilling, is on site and has completed the pilings for the
first vent raise. Initial site works for the raise boring
contractor, Murray & Roberts, are well advanced. All equipment
associated with the final installation of the ventilation fans are
on site.
Construction of the surface mine infrastructure, including
workshops, offices and back-up power station remain on schedule.
The surface settling ponds are complete and the recycling of
underground water has commenced.
AUMS is fully mobilized with a full complement of personnel and
equipment for pre-production and operational phases on site.
Processing Plant
Construction of the Processing Plant by the lump sum
Engineering, Procurement and Construction ("EPC") contractor, the
DRA/Group Five Joint Venture, is approximately 80% complete.
All procurement associated with the EPC contract is completed
with approximately 90% of the mechanical equipment on site and
awaiting installation. The balances of the remaining packages are
either in Burkina Faso or en-route
from ports in Ghana or
Cote D'Ivoire.
Plant civil and concrete works are complete and the majority of
structural steel has been erected.
Since the last update, key mechanical packages such as the
thickener, kiln, screens, cyclone pack, agitators, carbon transfer
pumps, reagent mixing and crusher plant have been received on site
and installed.
The Carbon-in-Leach ("CIL")
tanks had been erected to their full height by the end of January
with top of tank steel also in place.
The workshop, warehouse and reagent storage sheds are complete.
The site office, mess and security buildings are scheduled to be
completed and occupied in March
2016.
Handover and commissioning processes have commenced across the
site and physical commissioning of key packages will commence in
February 2016.
The Yaramoko Gold Project remains on schedule to pour first gold
in Q2 2016.
Operational Readiness
Roxgold's management team continued to advance preparations for
the operational phase. The recruitment of all department heads,
senior technical and senior operational personnel is complete and
significant progress has been made in recruiting the local
workforce.
IT and communication systems' installation has continued across
site. Configuration of the business systems software (accounting
and inventory modules) is ongoing and is expected to be finalized
during Q1 2016.
The Environmental and Social Management System ("ESMS") has been
developed and is being installed in advance of the Project becoming
fully operational.
Financing Update
The Company's cash position, including the restricted
US$15 million cost over-run account,
is approximately US$36 million.
Available Project financing remaining from the US$75 million 6-year senior secured project
finance facility is US$24 million,
while a further US$10 million is
available from AUMS in exchange for underground development work
(see Roxgold Press Release dated September
29, 2014).
As at the end of January 2016,
approximately US$64 million of the
US$110.8 million pre-production
capital estimate had been spent.
Remaining estimated pre-production capital required for the
development of the Yaramoko Gold Project is approximately
US$46.8 million.
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.
Photo Gallery
Shareholders are encouraged to follow the progress of the
Yaramoko Gold Project in our Photo Gallery on our website at
www.roxgold.com
About Roxgold
Roxgold is a gold exploration and development company with its
key asset, the high grade Yaramoko Gold Project, located in the
Houndé greenstone region of Burkina
Faso, West Africa. The
Company is currently in construction and expects to be producing
gold by Q2 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."
Forward-Looking Information
This news release contains forward-looking information. Forward
looking information contained in this new release includes, but is
not limited to, the expected completion of the balance of the AUMS
equity financing facility and the terms thereof, and the expected
use of proceeds thereof. 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
equity financing facility, 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.