New wash plant for Sikaman project (April 06, 1992)

A floating wash plant at the Goldenrae alluvial gold project in eastern Ghana, Africa, has failed to perform to specification and will be replaced this year by a new facility, shareholders of Sikaman Gold Resources (TSE) were told at the annual meeting.

President Tom Griffis said the existing plant has underperformed since operations commenced in October, 1990. Throughput has been significantly reduced from the projected volume; production in 1991 totalled 5,500 oz. of fine gold.

In addition to the new plant, plans call for a second plant to be built on site to boost overall capacity in 1993 by at least 50%. With two plants in operation, estimated annual output is 24,500 oz. at an average cash operating cost of $US170-190 per oz.

Sikaman, which last year sold its interests in two other gold projects (Abosso and Bogosu) in Ghana, has a 34% interest in Goldenrae. An English firm, ITM International, owns 51% of Goldenrae, the government of Ghana 10% and a local company 5%.

Sikaman recently completed financing arrangements with an international bank for its Sol Wood placer gold mine project in California. The company is hoping the project, which has underground potential, will provide it with immediate cash flow.