Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – The final applications to secure permits to start underground mining at the Gokona pit at North Mara, in Tanzania, were set to be submitted after the board of the newly renamed Acacia Mining approved the project’s definitive feasibility study.
The gold miner, formerly called African Barrick Gold, expected to obtain the outstanding approvals to start the operations during the first half of the 2015 financial year.
“… [The] Gokona underground project generates strong economic returns and improves the social situation at the mine, as well as our entry into highly prospective exploration ground in Burkina Faso,” commented Acacia CEO Brad Gordon.
The project, which would use the ongoing exploration decline in the Gokona pit, would need preproduction capital expenditure of $37-million.
The underground project was expected to produce 450 000 oz of gold over a five year life-of-mine, with all-in sustaining costs of under $750/oz.
As Acacia awaited the permit approvals, it would continue to progress the exploration decline to obtain a “better understanding” of the orebody, while completing the detailed design of the underground mine.
Meanwhile, Acacia also moved to expand its African footprint as it entered an earn-in agreement with Sarama Resources.
Acacia would earn an interest of up to 70% through the provision of up to $14-million in staged payments over a four-year period at Sarama’s South Houndé project, in Burkina Faso.
Acacia could increase its interest to 75% subject to meeting certain other conditions, the company said in an update to shareholders.
“Acacia’s entry into this transaction represents an exciting step in our continued efforts to expand our footprint throughout Africa,” said Gordon.
The South Houndé project comprised seven contiguous exploration licences spanning 814 km2.
“Previous exploration by Sarama has identified a number of high-quality exploration targets and includes the 1.5-million-ounce inferred gold resource at Tankoro,” he concluded.