Semafo pours Guinean gold (April 04, 2002)

On budget and ahead of schedule, Semafo (SMF-T) has officially opened its first gold mine, Kiniero, in Guinea. The ceremonially event was presided over by Minister of Mines Ibrahima Soumah.

The open-pit mine, which was formerly known as the Jean Gobele project, was built at a cost of US$12.4 million. Managem, a Moroccan company that owns a 50.5% equity stake in Semafo, covered the bill.

Miners will extract 888 tonnes of ore daily at a stripping ratio of 9-to-1. At that rate, reserves will last four years.

About 60,000 ounces will be poured annually, using conventional carbon-in-pulp technology.

Life-of-mine cash costs are projected at US$168 per oz.

The internal rate of return rings in at 50% and the net present value at US$6.5 million, based on a 10% discount rate.

Meanwhile, exploration in the vicinity of the mine continues, mainly at the Gobele D zone. The zone lies 200 metres east of the mine, in a prominent regional topographic high known as the Sabali Hill.

Like the producing deposits, the Sabali hill is underlain by andesitic tuffs and lavas that host gold-bearing quartz veins, veinlets and zones of silicification. The horizons strike northeasterly and dip flatly to subvertically.

Oxide and sulphide mineralization has been outlined over a strike length of 350 metres and at depth to over 150 metres. It remains open at depth.

The most recently reported gold values varied from 1.27 grams to 61.3 grams, but generally vary between 2 and 5 grams. Mineralized widths range from 1.4 to 51 metres, with the longest averaging 2.85 grams.