Mali has already climbed to number 17 on the list of global producers, and experts predict the West African nation could reach an even higher ranking if several new projects under development come into production as planned.
While the country has a gold mining past that is the stuff of legend, its modern-day mining renaissance was ushered in by the highly successful Sadiola Hill mine, owned by partners
Randgold has made considerable progress at Syama since carrying out a restructuring program aimed at reducing waste stripping levels, optimizing power and throughput, and reducing staff. This multi-front effort is credited with having boosted production in the latest quarter to 49,710 oz., up from 35,563 oz. in the previous quarter, while reducing cash operating costs to US$299 per oz. from a high of US$428.
Sadiola Hill, on the other hand, continues to churn out hefty profits for AngloGold and Iamgold, each of which holds a 38% stake in the open-pit operation. The government of Mali has an 18% interest, with the remainder held by the International Monetary Fund.
During the first quarter of this year, Sadiola Hill produced 139,397 oz. gold at an average cash cost of US$106 per oz. and a total cash cost of US$128 per oz. Gold production from 1999 to 2005 is expected to average 424,000 oz. annually at a direct cash cost of US$148 per oz.
At the end of 1999, Sadiola Hill contained total reserves and resources of about 7.7 million contained ounces, of which 4.5 million oz. are in the proven and probable category.
The partners are also advancing their nearby Yatela deposit, which is expected to produce 1.2 million oz. gold over its 5-to-6-year mine life, beginning next summer. Cash costs are projected at US$154 per oz.; total costs, at US$174 per oz.
The partners estimate it will cost US$70 million to bring Yatela into production. Imagold will be responsible for US$23 million to secure its 40% stake. AngloGold will provide the balance for its 40% interest, with the remainder held by the government of Mali. The project’s reserves total 1.4 million oz. in 12.3 million tonnes of oxide ore grading 3.6 grams, with total resources (including reserves) amounting to 2.6 million oz.
A nearby deposit, Alamoutala, could extend the life of the Yatela mine by a year or two. It has a drill-indicated oxide resource of 2 million tonnes grading 2.5 grams.
The third significant producer in Mali will be Randgold’s Morila mine, a 5-million-oz. deposit being developed in the southeastern portion of the country. AngloGold is paying US$132 million for 40% of the project in a transaction scheduled to close shortly.
While some mining is under way, full production is slated to begin in the third quarter of this year. The US$105-million operation is designed to process 250,000 tonnes per month at a grade of 4.02 grams for about 13 years. Its forecast life-of-mine operating cost is US$146 per oz.
Randgold is also exploring in Mali. Reserves at the Loulo project were recently upgraded to 1.71 million contained ounces, averaging 3.8 grams per tonne. Priority targets have been delineated for follow-up work.
In western Mali,
The first 10 holes of this program have returned some high-grade results, including: 24.4 metres grading 18.2 grams; 9.3 metres of 17.27 grams; 6.5 metres of 22.22 grams; and 25 metres of 19.63 grams. These intercepts are from depths of fewer than 100 metres from surface and within the confines of an open-pit resource.
Once the drill program is completed, late this year, a final feasibility study will begin. The study will focus on the open-pit resource, which was previously calculated at 1 million tonnes grading 6.7 grams (based on a due diligence study by an independent firm). If all goes as planned, additional work will be carried out to upgrade the high-grade component of underground resources (currently 1.2 million tonnes of 8.7 grams) while initial surface mining is undertaken.
Be the first to comment on "Mali enjoys gold boom"