A group of lenders led by the African Development Bank (ADB) and including
SML is 80%-held by African GeoMin Mining Development (AGMD), with the government of Niger holding the remaining 20%. Semafo and
The project, which was mothballed in 2001 pending higher gold prices, was revived late last year via a US$12.5-million loan from ADB.
The funds will be applied to construction of a fully engineered, 6,000-tonne-per-day carbon-in-leach (CIL) plant at Tiawa, 130 km west of the Nigerian capital of Niamey. A year-long construction period is to begin in the third quarter.
The partners have already built roads, a landing strip, a surface water dam, a storage reservoir, a water pipeline, and an electrical power station.
Initial plans call for the CIL plant to process oxide ore and 4,000 tonnes per day of transition ores from open pits on the Samira Hill and Libiri deposits. Beginning in the second year of operation, ore will be blended from the upper portions of the Libiri pit. The average stripping ratio is expected to be 3-to-1.
During the first year of operation, production is expected to reach 135,000 oz. at a cash cost of US$177 per oz. Over the 6.3-year mine life, it should average 100,000 oz. at US$203 per oz.
ONA/Managem, Morocco’s largest mining company, controls Semafo and will act as operator at Samira Hill.
Combined, the two deposits host a measured and indicated resource of 15 million tonnes grading 1.6 grams gold. Minable reserves stand at 10.1 million tonnes grading 2.21 grams gold. Both deposits are open at depth.
The debt financing is subject to certain conditions, final documentation, and ratification by SML.
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