30th Jan 2014 12:47
LONDON (Alliance News) - Amara Mining PLC Thursday announced the results of the first phase of optimisation work for its July 2013 Feasibility Study of the Baomahun Gold Project in Sierra Leone.
The west Africa-focused gold mining company said the first phase was to choose the size of its plant for the site to reflect current market conditions and gold price outlook.
Amara said its optimisation study demonstrated that a 1 million tonne per annum plant would allow for the selective mining of the deposit's higher grade core in a smaller open pit and a longer term mine feed from underground sources.
The company said that, based on the scenario, there is a 40% reduction in the upfront capital cost to USD90 million and a 43% reduction in the total pre-production capital costs to USD143 million.
Amara said average production in the first six years remains robust at 88,000 ounces per year based on the scenario, with total cash costs reduced by 11% to USD711 per ounce over the life of the mine.
The company said further optimisation of the feasibility study is ongoing including work on its transition from open pit mining to underground mining , negotiations with key suppliers to further reduce upfront capital costs, and an evaluation of the opportunity for long-term, low cost power.
The July feasibility study showed a maiden mineral reserve for Baomahun of 1.21 million ounces of gold at a gold price of USD1,100 per ounce based on an open pit operation with a mine life of 11.5 years and a processing capacity of 2 million tonnes per year.
Amara Mining shares were down 1.4% to 14.30 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Amara Mining