Name and Location
Syama gold mine expansion project, Mali.

Client
Resolute Mining.

Project Description
The project involves the multifaceted expansion of the Syama operation and includes the expansion of the current sulphide openpit and the establishment of a parallel one-million-ton-a-year oxide processing circuit.

Expanding the openpit will extend the mine life to 15 years, with potential for further extensions through an underground operation.

After expansion, yearly production at Syama will average about 270 000 oz, up from the 85 362 oz produced during 2010/11.

The proposed expansion has been designed to be executed without disrupting ongoing operations at the mine.

Value
Initial capital for the expansion is estimated at $266-million, including the oxide plant, additional infrastructure, preproduction mining costs and the construction of the high-voltage grid power interconnection.

The company reports that it can fund the expansion from its existing cash and bullion holdings and from future cash flows from its three existing operations.

Duration
The project could be completed as early as the June quarter of 2014.

Latest Developments
Resolute continues with a comprehensive review of the $266-million Syama expansion in light of the prevailing market conditions particularly impacting on the gold sector, with $113-million having been identified for immediate deferral, with no adverse effect on the mine plan or longer-term revenue.

A further reduction in capital spend and improved operating costs are expected, as the pit development has been revised to a two-stage expansion.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Resolute Mining, tel +61 8 9261 6100, fax +61 8 9322 7597 or email contact@rml.com.au.