Preproduction capital costs to develop an underground mine below the current open pit at Syama, pictured
here in an aerial view, are estimated at $95 million. (Photo: Resolute Mining)

Excavation of a decline to access the underground mine will begin before the end of September. First development ore is expected to be delivered to the plants in December, with underground stoping to begin in December 2017. This timing will allow continuous production to be maintained at Syama. Syama production during Resolute’s fiscal year to June 30, 2017, is forecast at a minimum of 200,000 oz. When the underground mine reaches capacity, production will grow to 250,000 oz/y over an initial operating life of 12 years, with strong potential for ongoing minelife extensions.

The current mine plan is designed to a depth of about 600 m below surface. Deep drilling is currently testing below this level and is demonstrating positive initial results. Underground mine development at Syama is based on a definitive feasibility study completed in June. Mining will be by sublevel caving to extract the extensive sulphide orebody beneath the current open pit.

Resolute Managing Director and CEO John Welborn said, “We have a world-class ore body at Syama, and the completed DFS demonstrates that we will build a world-class underground mine. Syama will remain Resolute’s flagship mine and will achieve our ambition of it becoming a 250,000 oz/y producer in its own right.”

Redeveloping Bibiani in Ghana: In other news from Resolute, the company reports that it has completed a feasibility study of proposed redevelopment of its 90% owned Bibiani gold mine in southwest Ghana. The mine has been on care and maintenance since 2008. The feasibility study is based on an initial ore reserve of 5.4 million mt grading 3.7 g/ mt and containing 640,000 oz of gold. The mine plan calls for production of up to 1.2 million mt/y of underground ore by longhole open stoping. Initial operating life is planned at five years, producing approximately 100,000 oz/y of gold.

The project has a lead time of only nine months from start of redevelopment to start of production. The majority of the $72 million of upfront capital is allocated to refurbishment of the existing processing plant; $29 million is allocated to underground mining equipment. An option remains for some or all of the mining to be undertaken by a contractor, which would lower the capital requirement. Life-of-mine all-in sustaining costs are estimated at $858/oz of gold produced.

Resolute sees a substantial upside for the project, with ongoing work scheduled to focus on upgrading and expanding the orebody to extend mine life and reduce operating costs.