Sikaman’s Ghana assets to include placer bets

Scheduled to be in production by the second quarter of 1990, the concessions are held by Shefford through its 85% stake in Ghanian company Goldenrae Mining Co. Shefford is a private company based in Vancouver.

According to an independent study by Minproc Engineers of Australia, mineable reserves from two main drainage systems stand at seven million cu m grading 0.57 per cu m (or about 125,000 oz gold).

“Several other drainage systems on the properties with known mineralization of similar grades are currently being tested and will add substantially to present reserves,” said Sikaman president Thomas Griffis.

Based on results of a feasibility study, mineable reserves could be extracted at a rate of one million cu m annually using a single plant and that production will average 18,183 oz per year in the first four years.

Operating costs should be about $150(US) per oz and the average cost over the mine’s 7-year life span should be about $166(US), according to the Minproc report.

As new reserves are established a second and possibly third plant may be brought on stream, said Griffis.

With capital costs estimated at around $5.6 million, discussions have been initiated with commercial banks for $5 million in project debt financing.

While an amalgamation between Shefford and Sikaman would be subject to an independent valuation and fairness opinion, the transaction would also involve the issue of Sikaman treasury shares.

As reported (N.M., Mar 6/89), Sikaman is already planning to bring another Ghanian gold project, the 40.5%-owned Bogosu, into production at a rate of 100,000 oz annually in 1990.

Billiton B.V. of Holland (40.5%), the Ghanian government (10%) and an agency of the World Bank (9%) are also partners in the Bogosu project where five million tons of grade 0.12 oz in proven reserves have been outlined.

Sikaman is also the sole owner of a gold tailings project in Snow Lake, Man., which is expected to be producing gold later this year.

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