Resolute board gives green light for immediate development at Syama

JOHANNESBURG (miningweekly.com) – Underground development at ASX-listed gold miner Resolute Mining’s 80%-owned Syama gold mine, located in south-eastern Mali, West Africa, will get under way immediately, following a positive definitive feasibility study (DFS) confirming Syama as a long-life, low-cost mine that will continue to deliver strong operating margins for more than a decade.

The DFS indicated that the all-in sustaining costs of Syama’s 12-year initial mine life would come to $881/oz, with total gold production growing to 250 000 oz/y.

Based on this, Resolute’s board of directors resolved to approve the immediate development of the underground mine, with excavation of the decline commencing in the September quarter, following mobilisation of a mining contractor to site in July.

First development ore was expected to be delivered to the mill in December, with stoping planned to get under way in December 2017. This would allow for continuous production from Syama to be maintained from the current stockpiled sulphide material and ongoing satellite openpit oxide deposits.

Once in full production, Syama would be a consistent, large-scale underground operation.

While the current ore reserve at Syama established an operating life of more than 12 years, Resolute noted that there was strong potential for ongoing mine life extensions.

The DFS mine plan was designed to a depth of only about 600 m below surface. However, Resolute was currently testing below this level with deep drilling, which demonstrated positive initial results.

“We have a world-class orebody at Syama, and the completed DFS demonstrates that we will build a world-class underground mine,” commented Resolute MD and CEO John Welborn.

He added that Syama, which would remain Resolute’s flagship mine, would help the company achieve its ambition of becoming a 250 000 oz/y producer in its own right.

“Having rapidly strengthened our balance sheet in the current financial year, we can now proceed with confidence at Syama,” he said.

Welborn further noted that, in the 12 months since the underground prefeasibility study was completed, Resolute had reviewed every aspect of the proposed operation, identifying improvements in decline and stope design, haulage systems, and innovations in ore-processing technology.

“These enhancements and a focus on continuous improvement will help us transform an outstanding orebody into a great business for both our shareholders and our partner, the government of Mali,” he stated.

With Syama, Resolute intended to create a mine that employed the most advanced extraction and haulage technologies available to ensure a safe, productive and global best practice mine.