Resolute Mining Completes Bibiani Feasibility Study
According to the study the initial ore reserve is 5.4 million tonnes at 3.7 grams per tonne.
Gold miner Resolute Mining (ASX:RSG) announced the results of it Feasibility study for the Bibiani project in Ghana which confirms “a viable development pathway”. Resolute has a 90% interest in the Bibiani project.
Bibiani to Produce 640,000 Ounces of Gold
According to the study the initial ore reserve is 5.4 million tonnes at 3.7 grams per tonne. The study has concluded that the mine will be able to produce up to 1.2 million tonnes of underground ore per annum for a mine life of 5 years.
The mine contains approximately 640,000 ounces of gold and based on the calculations above, the Bibiani mine will produce approximately 100,000 ounces of gold per annum.
The company estimates a relatively short development period of just 9 months for all refurbishment and development activities. The capital required for the project is US $72 million, including underground mining equipment of US$29 million.
All-in-Sustaining-Costs – which are generally considered the production costs plus all costs relating to sustaining current production and sustaining capital expenditure – are estimated at US$858 per ounce. So far this year the gold price has hovered between US$1200 and US$1300 per ounce, which highlights the potential of the project.
Management Sees “Excellent Upside Potential”
The Government of Ghana owns the remaining 10% interest in the mine and the Feasibility study has been lodged. Resolute has acquired the Bibiani in 2014.
Managing Director and CEO John Welborn is excited about the outlook of the project: “Bibiani is a key growth asset for the company and the completion of the Feasibility Study and the establishment of our first Ore Reserve at the Project is an important milestone. We are delighted with the results of the study which demonstrate a viable development plan for Bibiani, competitive costs and excellent upside potential.”
Resolute Mining’s share price was up 3.5% as at 10:50 AM this morning. RSG has gained 360% year-to-date and Wise-owl has initiated coverage in February 2016.
Author: Simon Herrmann
Jun 23, 2016
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.