Photo by: Bloomberg
PERTH (miningweekly.com) – Junior gold developer Gryphon Minerals would start construction at its Banfora gold project, in Burkina Faso, by the first quarter of 2015, COO Steve Zaninovich said at Paydirt’s Africa Downunder conference, in Perth.
Zaninovich said the company was on the cusp of obtaining finance from Macquarie for the $96.8-million development, and was well placed to fully fund the project going forward.
Gryphon had some $37-million in cash and investments at the end of the second quarter, and a $60-million project debt mandated with Macquarie.
“Our current development timeline is looking at early site works towards the end of this year and moving to mainstream construction from the first quarter next year,” Zaninovich said.
“We are building a very simple crushing plant, we require only low power drawdowns and there are no long lead items to be ordered.”
The Banfora project was expected to produce more than 80 000 oz for the first four years of its mine life, based on an ore reserve estimate of 17.4-million tonnes, grading 1.5 g/t gold for 826 000 oz of contained gold.
“Commissioning is slated for the final months of calendar 2015 and at this stage, we anticipate first gold production in the opening period of 2016,” Zaninovich said.
He added that Banfora is a robust project. Its exceptional 1.5 g/t gold was substantially ahead of its heap leach peers in terms of initial capital expenditure and processed grades.
“There is significant potential to push the initial openpits below the current heap leach inventory, and we haven’t ruled out the potential for a future carbon-in-leach plant to accept primary gold material.”