PERTH (miningweekly.com) – Gold miner Resolute Mining has flagged a potential underground development at its Syama project, in Mali, after a review of the mining plan.

Earlier this year, Resolute announced that it would remove Stage 3 of the cutback from the openpit mine life plan, to deliver both cash flow and capital management benefits, with the company cutting some $113-million from the planned capital expenditure programme.

The miner said on Tuesday that with the removal of the Stage 3 cutback, Resolute had the opportunity to consider alternatives to exploit the 2.9-million ounce of resource that is currently beneath the planned openpit mine.

A conceptual study has indicated the potential for an underground development, which could deliver between 1.5-million and 2-million tonnes of ore a year, over an initial five-year period.

Underground access could be garnered through a separate boxcut-and-portal or an in-pit portal, which would provide access directly into fresh rock and potentially reduce underground development requirements, Resolute said.

The miner has now launched a prefeasibility study to determine the preferred stoping method, mine layout and production rate. The study would take up to six months to complete.

Meanwhile, Resolute also announced solid results for the financial year ended June, with revenue up 7% on the previous financial year to A$619-million.

The company’s gold production reached 435 855 oz during the year under review, compared with the 398 451 oz produced during 2012, at an average cash cost of A$811/oz.

Net profit after tax declined to A$84.9-million, compared with A$105.1-million reported in 2012, and reflected a A$79.3-million impairment charge related to the market value of Resolute’s investment in Noble Mineral Resources, as well as other gold equity investments, and a A$40.5-million unrealised foreign currency gain on intercompany loans with subsidiaries.

For 2014, Resolute predicted that gold production would be some 345 000 oz, after the Golden Pride operation, in Tanzania, reached the end of its mine life.