Despite low gold prices, the Sadiola Hill gold mine in Mali continues to churn out profits for partners
The open-pit mine is owned by SEMOS, a Malian company held 38% by each of Anglogold and Iamgold. The government has an 18% stake, whereas 6% is held by International Finance Corp.
The partners achieved commercial production at Sadiola Hill in March 1997. Last year, the US$303-million, open-pit operation churned out 506,113 oz. gold at an average cash cost of US$104 per oz. and a total cost of US$126 per oz. (T.N.M., Feb. 1/99).
In the latest quarter, ended March 31, Sadiola Hill produced 116,149 oz. at a cash cost of US$115 per oz., compared with 131,778 oz. at US$101 per oz. a year earlier. Total cash costs were US$137 per oz., compared with US$124 per oz. in the 1998 first quarter. This year’s higher costs were attributed to lower headgrades (2.8 grams, down from 3.4 grams a year earlier) and higher stripping ratios.
On the financial front, Iamgold reported a net profit of US$2.8 million (4 cents per share) in the first quarter, down from US$3.7 million (6 cents per share) a year ago.
Iamgold and Anglogold are advancing a second mine, Yatela, situated nearby, which hosts 1.92 million oz. gold contained in 19.7 million tonnes of soft oxides averaging 3 grams gold per tonne at a cutoff grade of 1 gram. Of this total, 17.9 million tonnes grading 3 grams are classified as drill-indicated. The project is owned by SADEX, a 50-50 joint-venture between the company and Anglogold.
As part of the prefeasibility study (scheduled for completion at the end of June), the partners assessed several processing options. Results to date suggest that the heap-leach option is “more attractive” than the carbon-in-pulp (CIP) option.
Capital and average production costs are estimated at US$65 million and US$186 per oz. gold produced, respectively, for a
3-million-tonne-per-year, heap-leach operation with a mine life of at least five years. The average stripping ratio is expected to be 4.5-to-1, while recoveries of 85% are anticipated.
Adding to the picture at Yatela is the nearby Alamoutala deposit, which hosts a drill-inferred resource of 2 million tonnes of soft oxides grading 2.5 grams gold per tonne using a 1-gram cutoff. This contained resource of 160,000 oz. gold would be factored into any operation established to exploit Yatela, and would extend the life of the operation to 11 years.
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