Semafo ramps up gold production in West Africa

At a time when miners have been hard pressed to deliver good news, Semafo (SMF-T) managed to pull out a nugget for the market on Jan. 7.

The Saint-Laurent, Quebec-based miner with operations in West Africa announced record gold production for 2008.

The company says it managed to turn out 195,500 oz, for the year, eclipsing last year’s total of 106,400 oz. and exceeding its own guidance for 2008 of between 165,000 and 185,000.

And while the company has producing mines in Guinea, Mali and Burkina Faso, it was its Mana Mine in Burkina Faso that was the key to the boost in output.

Mana went into production in April 2008. In the third quarter of last year it turned out 26,800 oz. of gold from 226,600 tonnes of ore grading 4.18 grams gold at a cash cost of US$358 per oz.

While fourth quarter results for Mana have not yet been released, the company did announce at the beginning of December that the mine had turned out a record 10,000 oz. of gold for the month of November.
Mana has proven and probable reserves of 9.8 million tonnes grading 2.93 grams gold for 924,600 oz.m of gold. All three of its mines together have reserves of 24 million tonnes with an average grade of 2.4 grams gold for 1.96 million oz. of gold.

“We are extremely pleased with the start up of the Mana Mine, which has allowed us to capture the benefits of a strong gold price environment,” Benoit La Salle, Semafo’s president and chief executive said in a statement.

In Toronto on Jan. 7 Semafo shares were up 5% or 6¢ to $1.36 on 204,500 shares traded. The company’s shares have moved between $1.72 and 75¢ over the last 52-week period and it has 232 million shares outstanding.