Market cap: $203 million
Cash estimate: $37 million
Country: Burkina Faso
Ownership: 100 percent
Resources: 1.99 million tonnes @ 11.83 g/t Au
Project status: Construction — brownfields exploration
Roxgold announced high-grade gold mineralization from development infill drilling on the 55 Zone on the Company's 100% owned Yaramoko project in Burkina Faso. The Company released the first 21 holes of a planned 67 hole program covering the 300 metre long high-grade zone that comprises the first development area in the 55 Zone. Infill drilling at 12.5 metres spacing in the 55 Zone included a number of high-grade intervals including; 5.9 metres (4.8 metres true width) grading 200.7 g/t Au, 5.7 metres (4.8 true) at 135.3 g/t Au and 4.2 metres (3.1 true) grading 123 g/t Au. Step-out diamond drilling on the Bagassi South target continues to hit wide zones of mineralization including 9.4 metres grading 8.9 g/t Au extending the QV1 structure an additional 30 metres to the southeast. The mineralized zone is believed to be cut off by a younger dyke and thus remains untested to the southeast on the other side of the dyke. The Bagassi South trend has been outlined by artisanal workings, geological mapping, geophysics, soil geochemistry and drilling over 1.75 kilometres strike length. The main zone is a complex 200 metre wide zone of sheared quartz, sericite and pyrite alteration zone, hosting an array of en echelon quartz veins while the mineralization towards the dyke in the south east is hosted in wider zones of quartz breccia. On the main 55 zone, the Company has outlined a probable mineral reserve estimate of 1.99 million tonnes grading 11.8 g/t Au. The April 22, 2014 feasibility study outlines a low capex and low operating cost project, with after-tax NPV (5%) of USD$250 million, and an IRR of 48%. The report projects a pre-production capital cost of USD$106.5 million and an all in sustaining operating cost of USD$590/ozAu. The economics were calculated using a USD$1,300 gold price with the project remaining robust down to USD$1,100 gold (NPV USD$168 million with an IRR of 35.2%). The project is estimated to average 99,500 oz. of gold per year. The Company is currently starting earthworks and expects to commence plant construction and underground portal access in Q2/2015. The project is expected to be commissioned with first production in Q2/2016. The Company has approximately C$37 million in hand and expects to close US$75 debt facility with BNP Paribas and Societe Generale in Q2 2015.
Discovery history and key intervals: Riverstone acquired Yaramoko project in 2006 and Roxgold optioned the property in 2010. First drilling by Roxgold on Bagassi Central: 6 metres @ 24.6 g/t Au. Bagassi South (2012): 2 metres @ 141.4 g/t Au.
Current holes: 5.9 metres @ 200.7 g/t Au (55 Zone); 9.4 metres @ 8.9 g/t Au (Bagassi South)