SEMAFO Reports Operating Results for 2007 and Guidance for 2008
Annual Gold Production up 12% to 106,400 oz
Montreal, Quebec, February 7, 2008. - SEMAFO (TSX - SMF) today announced that fourth quarter 2007 gold production was 26,700 ounces, an increase of 24% over the same period in 2006. Gold production totaled 106,400 ounces in 2007. For the year, Samira Hill was within guidance range, producing 79,300 ounces, however Kiniero fell below guidance, producing 27,100 ounces due to geological issues.
SAMIRA HILL
|
|
For the three months
ended December 31, |
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For the twelve months
ended December 31, |
OPERATING RESULTS |
|
2007 |
|
2006 |
|
2007 |
|
2006 |
Ore mined (tonnes) |
|
475,800 |
|
316,700 |
|
1,595,000 |
|
1,098,600 |
Ore processed (tonnes) |
|
420,700 |
|
226,900 |
|
1,510,500 |
|
880,600 |
Head grade(g/tonne) |
|
2,06 |
|
2,29 |
|
1,99 |
|
2,14 |
Recovery (%) |
|
77 |
|
78 |
|
83 |
|
80 |
Gold production (ounces) |
|
20,000 |
|
12,700 |
|
79,300 |
|
47,600 |
Samira Hill operations achieved plan in 2007. It is estimated that Samira Hill will produce between 68,000 - 73,000 ounces of gold in 2008.
KINIERO
|
|
For the three months
ended December 31, |
|
For the twelve months
ended December 31, |
OPERATING RESULTS |
|
2007 |
|
2006 |
|
2007 |
|
2006 |
Ore mined (tonnes) |
|
93,300 |
|
148,800 |
|
384,500 |
|
458,500 |
Ore processed (tonnes) |
|
131,100 |
|
138,500 |
|
465,100 |
|
576,200 |
Head grade(g/tonne) |
|
1,84 |
|
2,16 |
|
1,99 |
|
2,70 |
Recovery (%) |
|
92 |
|
92 |
|
92 |
|
94 |
Gold production (ounces) |
|
6,700 |
|
8,900 |
|
27,100 |
|
47,200 |
While 2007 was disappointing at Kiniero, the company announced a series of initiatives and detailed action plan in the third quarter of 2007 aimed at returning the mine to satisfactory production levels. "We definitely commenced 2008 on positive note having received the West Balan mining permit," said Benoit Desormeaux, Semafo's Chief Operating Officer. "The permit, coupled with the extension of the overall West Balan structure will create added opportunity for this property in the future." It is anticipated that Kiniero will produce between 37,000 - 42,000 ounces of gold in 2008.
MANA
2007 was an excellent year at Mana. Construction is tracking towards plant start-up this month. On the exploration front, the first stage of an overall program aimed at increasing the project's resource and reserve base was completed in the latter part of the year. Drill results to date have been positive. It is estimated that Ma
na will produce between 60,000 - 70,000 ounces of gold in 2008.
2008 Production and Cost Outlook
For the 2008 year, we estimate overall production will be between 165,000 and 185,000 ounces comprising 65,000 to 70,000 ounces in the first half of the year and 100,000 to 115,000 ounces in the second half with overall cash operating costs for the year of $400 - $450 per ounce.
As more fully disclosed in the Risk Factors in our Annual Information Form filed on Sedar, and as may be amended, numerous factors could cause our estimates and expectations to be incorrect or could lead to changes in our plans. Under any of these circumstances, the estimates described above could change materially.
OBJECTIVES FOR 2008:
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Achieve ongoing stable production at both the Samira Hill and Kiniero gold mines;
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Successfully start-up the new Mana mine;
-
Continue the expanded exploration process initiated in 2007 to increase resource and reserves and ultimately extend mine life;
-
Increase gold sales by 60%;
-
Pursue strategic initiatives aimed at increasing shareholder value.
"While not satisfied with overall performance in 2007, production results at Samira Hill, timely Mana mine construction and the ability to address challenges at Kiniero all serve to validate our operating team's commitment to the success of the organization," said Mr. Benoit La Salle, President & CEO. "We are particularly pleased with the results of exploration programs initiated in 2007 aimed at increasing resource and reserves and look forward to issuing continued progress reports that will reflect positively in this area in 2008 and beyond".
Audited Financial statements for the year ended December 31, 2007 as well as the Company's resource and reserve statement will be released in March, 2008.
About SEMAFO
Semafo is a Canadian-based mining company with gold production and exploration activities located in West Africa. The Company currently operates two gold mines with a third, the Mana mine in Burkina Fas
o, in the latter stages of construction. Semafo is committed to evolve in a conscientious manner to become a major player in its geographical 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 &am
P; CEO
TEL :  (514) 744-4408
E-MAIL :  BLASALLE@SEMAFO.COM 
RENMARK FINANCIAL COMMUNICATIONS INC. :
TINA CAMERON : TCAMERON@RENMARKFINANCIAL.COM
ERIC ST-PIERRE : ESTPIERRE@RENMARKFINANCIAL.COM
TEL :  (514) 939-3989
FAX : (514) 939-3717
WWW.RENMARKFINANCIAL.COM
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Semafo Inc
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PRODUCER |
CODE : SMF.TO |
ISIN : CA8169221089 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Semafo is a gold producing company based in Canada. Semafo holds various exploration projects in Burkina Faso. Its main assets in production are KINIERO in Guinea, SAMIRA HILL in Niger and MANA in Burkina Faso. Semafo is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 1.5 billions as of today (US$ 1.1 billions, € 1.0 billions). Its stock quote reached its lowest recent point on December 14, 2001 at CA$ 0.10, and its highest recent level on September 16, 2011 at CA$ 10.00. Semafo has 324 860 000 shares outstanding. |