Semafo Gold Reserves and Resources Update
Total Inferred resources at Mana increase by 1.4M ounces
Montreal, Quebec, March 25, 2008. - SEMAFO (TSX - SMF) announced today that its mineral reserves and resources as at December 31, 2007 totalled 4,252,100 ounces. Using a gold price of $650 per ounce for Samira and Mana and $750 for Kiniero, Semafo's proven and probable mineral reserves total 24,715,400 tonnes at 2.48 g/t Au representing 1,969,700 ounces compared to 2,042,800 ounces from 22,485,800 tonnes at 2.82 g/t Au as at December 31, 2006.
The measured and indicated mineral resources total 46,301,500 tonnes at 1.53 g/t Au representing 2,282,400 ounces compared to 2,377,400 ounces from 47,283,700 tonnes at 1.56 g/t Au as at December 31, 2006.
In addition, the inferred mineral reserves total 39,004,400 tonnes at 2.05 g/t Au representing 2,565,900 ounces compared to 1,070,500 ounces from 22,270,500 tonnes at 1.49 g/t Au as at December 31, 2006.
All calculations from the three mines were conducted
with the support of the Datamine mining software, using geologically-controlled block modelling and estimation of the grades by ordinary kriging.
Highlights (Refer to table1: Reserves and Resources Summary as at December 31, 2007)
Proven and probable mineral reserves for the Mana mine total 9,824,400 tonnes containing 924,600 ounces of gold, at an average grade of 2.93 g/t Au. This represents a nominal increase in overall ounces compared to those reported at the end of 2006.
Additionally, the total mineral resources from both the Wona and Nyafe deposits increased by 5% totalling 4,875,100 tonnes at an average grade of 2.03 g/t Au containing 317,800 ounces of gold.
A significant increase in resources in the inferred category was recorded now totalling 1,867,100 ounces compared to 444,800 ounces the year prior. This increase is primarily the result of a deep drilling campaign carried out under the Wona pit and extending toward NE. In light of these results additional drilling will be carried out in the coming months to further evaluate the zone for underground mining.
Proven and probable mineral reserves total 12,621,000 tonnes at 1.81 g/t Au containing 735,900 ounces of gold. This represents a 21% increase in overall ounces compared to those reported at the end of 2006, considering reserves mined in 2007.
Measured and indicated mineral resources total 33,366,400 tonnes at a grade of 1.15 g/t Au containing 1,228,700 ounces of gold compared to 1,316,900 ounces at the end of 2006.
Proven and probable mineral reserves, signed by Geostat System Internationnal inc. total 2,270,000 tonnes at 4.24 g/t Au containing 309,200 ounces of gold. This represents a 29% decrease in overall ounces compared to those reported at the end of 2006.Following geological challenges encountered at Kiniero during 2007, our geological models have been reviewed and adjusted leading to a decrease in tonnage and in grade.
Measured and indicated mineral resources total 8,060,000 tonnes at 2.84 g/t Au containing 735,900 ounces of gold compared to 758,800 ounces in overall mineral resources at the end of 2006.
About SEMAFO
Semafo is a Canadian-based mining company with gold production and exploration activities located in West Africa. The Company currently operates three gold mines in Burkina Faso, Niger and Guinea. Semafo is committed to evolve in a conscientious manner to become a major player in its g
eographical area of interest, while maintaining values and strengthening relationships to increase shareholder value.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding expectations of the Company as to the market price of gold, strategic plans, future commercial production, production targets, timetables, mining operating expenses, capital expenditures, and mineral reserve and resource estimates. Forward-looking statements involve known and unknown risks and uncertainties and accordingly, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, fluctuations in the market price of precious metals, mining industry risks, uncertainty as to calculation of mineral reserves and resources, risks related t
o hedging strategies, risks of delays in construction, requirements of additional financing and other risks described in the Company's documents filed from time to time with Canadian securities regulatory authorities. Although the Company is of the opinion that these forward-looking statements are based on reasonable assumptions, those assumptions may prove to be incorrect. Accordingly, readers should not place undue reliance on forward-looking statements. Readers can find further information with respect to risks in the Annual Information Form of the Company and other filings of the Company with Canadian securities regulatory authorities available at www.sedar.com. The Company disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.
For more information contact :
SEMAFO:
Benoit La Salle,
President & CEO
Tel : (514) 744-4408
@ : blasalle@semafo.com
SEMAFO:
Michel Crevier, g�o., MScA
Geology Manager and Qualified Person
Tel: (514-744-4408
@: mcrevier@semafo.com
Renmark Financial Communications Inc. :
Maurice Dagenais : mdagenais@renmarkfinancial.com
Eric St-Pierre : estpierre@renmarkfinancial.com
Tel : (514) 939-3989
Fax : (514) 939-3717
www.renmarkfinancial.com
Table 1-Reserves and Resources Summary as at December 31, 2007
MINERAL RESERVES |
Mines |
Mana (1)(2)
Burkina Faso |
Samira Hill (2)(3)
Niger |
Kiniero (2)(4)
Guinea |
Total |
Proven Mineral Reserves |
Tonnes |
8,558,000 |
10,339,800 |
549,000 |
19,447,300 |
Grade (g/t Au) |
3.01 |
1.81 |
3.30 |
2.38 |
Ounces (5) |
828,900 |
600,100 |
59,000 |
1,488,000 |
Probable Mineral Reserves |
Tonnes |
1,265,900 |
2,281,200 |
1,721,000 |
5,268,100 |
Grade (g/t Au) |
2.35 |
1.85 |
4.50 |
2.84 |
Ounces (5) |
95,700 |
135,800 |
250,200 |
481,700 |
TOTAL MINERAL RESERVES |
Tonnes |
9,824,400 |
12,621,000 |
2,270,000 |
24,715,400 |
Grade (g/t Au) |
2.93 |
1.81 |
4.24 |
2.48 |
Ounces (5) |
924,600 |
735,900 |
309,200 |
1,969,700 |
MINERAL RESOURCES |
Measured Mineral Resources |
Tonnes |
2,165,900 |
12,976,000 |
645,000 |
15,786,900 |
Grade (g/t Au) |
1.90 |
1.14 |
2.50 |
1.30 |
Ounces (5) |
132,000 |
476,900 |
52,900 |
661,800 |
Indicated Mineral Resources |
Tonnes |
2,709,200 |
20,390,400 |
7,415,000 |
30,514,600 |
Grade (g/t Au) |
2.13 |
1.15 |
2.90 |
1.65 |
Ounces (5) |
185,800 |
751,800 |
683,000 |
1,620,600 |
TOTAL MINERAL RESOURCES |
Tonnes |
4,875,100 |
33,366,400 |
8,060,000 |
46,301,500 |
Grade (g/t Au) |
2.03 |
1.15 |
2.84 |
1.53 |
Ounces (5) |
317,800 |
1,228,700 |
735,900 |
2,282,400 |
|
|
|
|
|
TOTAL MINERAL RESERVES AND RESOURCES |
Tonnes |
14,699,500 |
45,987,400 |
10,330,000 |
71,016,900 |
Grade (g/t Au) |
2.63 |
1.33 |
3.15 |
1.86 |
Ounces (5) |
1,242,400 |
1,964,600 |
1,045,100 |
4,252,100 |
INFERRED MINERAL RESOURCES |
Tonnes |
25,297,100 |
12,732,300 |
975,000 |
39,004,400 |
Grade (g/t Au) |
2.30 |
1.46 |
3.20 |
2.05 |
Ounces (5) |
1,867,100 |
597,800 |
101,000 |
2,565,900 |
We are presenting 100% of the reserves and resources of the mines in the above table as they are mostly attributable to Semafo Inc. in accordance with its financial structure.
(1) The Company indirectly owns 90% of Semafo Burkina Faso S.A. which directly holds the interest in the Mana mine reserves and resources.
(2) Mineral reserves estimated using $650 per ounce of gold for the Samira Hill and Mana mines and $750 per ounce of gold for the Kiniero mine.
(3) Mineral reserves and resources at the Samira Hill Mine represent the combined reserves & resources of Soci�t� des Mines du Liptako (SML) S.A. and African Geomin Mining Develoment Corporation (AGMDC). The company indirectly owns 40% of SML and indirectly controls SML through its control of AGMDC pursuant to the company's right to elect a majority of Board members of AGMDC.
(4) The Company indirectly owns 85% of Semafo Guin�e S.A. which directly hold
S THE INTEREST IN THE KINIERO MINE RESERVES AND RESOURCES.
(5)  ROUNDING OF NUMBERS TO THE NEAREST HUNDRED OF TONNES MAY INTRODUCE SLIGHT DIFFERENCES IN THE FIGURES REPRESENTING THE OUNCES CONTAINED.