Name and Location
Syama underground gold mine project, Mali.

Client
Resolute Mining.

Project Description
An independent underground prefeasibility study (PFS) has contributed to a 54% increase in ore reserves at the Syama project.

The deposit contains proven and probable reserves of 38.26-million tonnes grading 2.65 g/t of gold.

The PFS supports a high-volume, low-cost and financially viable underground operation, extending long-term production at Syama by at least seven years to beyond 2025.

Geotechnical studies support sublevel caving as the preferred mining method.

This will allow for a well-controlled transition period from opencut mining to underground operations, with the preproduction development schedule, including decline and level access infrastructure, to be completed in 30 months.

Net Present Value/Internal Rate of Return
Not stated.

Value
Preproduction capital is estimated at $85.6-million.

Duration
Not stated.

Latest Developments
Resolute will accelerate its underground mining plan for its Syama gold mine, targeting full production from underground mining by 2017.

Announcing the outcome of a review interrogating its options at the mine, Resolute CEO Peter Sullivan has said that the move to underground mining is an excellent result for the mine, as it immediately advances Syama to its long-term mining plan.

As part of the change to the mine plan, Resolute has accelerated mining of the Stage 1 openpit, with mining of all ore and the use of the mining equipment expected to be largely complete by the end of the June 2015 quarter.

Portal and decline development will start in early 2016 from the Stage 1 pit, from a portal about 200 m below the surface. This will allow early access to underground ore for development of initial production stopes, while continuing to extend the decline to the surface for long-term access to the underground.

Resolute will maintain mill feed from Stage 1 ore, sulphide ore from the satellite pits, Syama underground development ore and existing lower grade stocks through to 2017, when full production stoping from underground mining is expected to be ramped up.

Work has started on the detailed underground feasibility study, which will be completed in the March 2016 quarter. The previous underground prefeasibility study will be updated in the June 2015 quarter.

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.