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Bagassi South feasibility study adds 40% more gold ounces to Roxgold's Yaramoko project

7th November 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – A new feasibility study on Roxgold's Bagassi South project, which is located on the TSX-quoted company's Yaramoko concession, in the Houndé greenstone region of Burkina Faso, has outlined the potential to lift the Yaramoko project's expected gold output by 150 000 oz/y.

The 40% increase in output is attributed to a satellite underground operation at Bagassi South and an expanded processing facility at Yaramoko.

Based on a price assumption of $1 300/oz of gold, the Bagassi South project has an after-tax net present value, applying a 5% discount rate, of $50-million, with the after-tax internal rate of return (IRR) coming in at a whopping 53.2%. An IRR of 35% is usually considered extremely attractive to investors.

Preproduction capital is calculated at $29.6-million to build the operation, which will produce 40 000 oz/y over a 4.2-year mine life.

The Bagassi South project has compliant proven and probable mineral reserves of 170 000 oz of gold grading 11.54 g/t gold, representing an increase of reserves of 26% for the Yaramoko gold project (55 Zone plus Bagassi South), Roxgold advised.

Like the neighbouring 55 Zone, the economics of this additional high-grade feed source are highly accretive and generate increased cash flow from a modest capital outlay.

Ongoing infill drilling at Bagassi South has the potential to increase mine life which could further improve future economics, the company advised.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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