Semafo Inc. said Sept. 30 that a preliminary economic assessment outlined a posttax net present value of US$100 million, at a 5% discount rate, with an internal rate of return of 22.6% and a payback period of 4.4 years for the Nabanga gold project in Burkina Faso.
Life-of-mine gold production is 571,000 ounces at an all-in sustaining cost of US$760 per ounce and a gold recovery of 92% during eight years of operation.
The PEA estimated initial capital expenditure at US$84 million and sustaining capital expenditure at US$55.9 million.
Based on the PEA, the preferred mining method is a combination of contract-operated open pit and underground mining. The company noted that the Nabanga deposit remains open to the north and many of the ore shoots are open at depth, with the rest of the 800-square-kilometer property largely unexplored. Semafo said more than 9,600 meters of underground development are planned over the life of the operation to unlock different mineralized zones.
