Etruscan, Semafo rev up Samira Hill

Partners Etruscan Resources (EET-T) and Semafo (SMF-T) expect to pour their first gold at the Samira Hill project in Niger in early September, now that commissioning of the 6,000-tonne-per-day carbon-in-leach plant is under way.

The plant’s steelwork and mechanical installations are complete, and piping and electrical work is nearing an end. Initial test runs are in progress.

During its first year of operation, Samira Hill is expected to churn out 135,000 oz. gold at a cash operating cost of US$177 per oz. The first phase of stripping is complete, and mining has begun. Over the subsequent five years, annual production is slated to average 100,000 oz. at US$203 per oz.

Initially, the plant will process oxide ore, followed by transition ore from open pits on the two deposits. Beginning in the second year of operation, the plant will treat ore from the upper portions of the Libiri pit.

The two deposits are home to minable reserves totalling 10.1 million tonnes grading 2.2 grams gold per tonne. There is also a measured and indicated resource of 15 million tonnes grading 1.6 grams gold.

Pumping from the Sirba River is expected to fill the 4.5-million-cubic-metre main water supply dam in two months. Construction of the tailings dam is expected to wrap up by early August.

Etruscan and Semafo each have a 40% interest in the project, leaving the remainder to the Nigerian government.

Meanwhile, in Mali, Semafo has received the final, US$4-million payment on the US$9-million sale of its Segala property, taking delivery of 1.4 million shares of Nevsun Resources (NSU-T).

Segala is home to an estimated reserve of 4 million tonnes grading 3 grams gold per tonne, based on a cutoff grade of 1.65 grams gold, which in turn is based on a gold price of US$350 per oz.

At Nevsun’s Tabakoto deposit, 5 km to the south, a reserve of 3.2 million tonnes grading 5.5 grams gold per tonne has been outlined (T.N.M., Aug. 25-31/03).

Plans at Tabakoto-Segala call for an open pit to target Segala once mining of the Tabakoto pit becomes depleted.

Construction is ongoing at Tabakoto, and production is slated to begin by mid-2005. The project carries a preproduction price tag of US$40 million.

A feasibility study in 2002 pegged the annual mining rate at 650,000 tonnes, and the grade, at 5.45 grams gold per tonne.

Over a life of five years, the mine is expected to produce an average of 105,000 oz. gold annually. Cash operating costs are expected to range between US$230 and US$250 per oz. The project offers an internal rate of return of 20% at a gold price of US$400 per oz.