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SEMAFO
(TSX:SMF - News) today announced a
fourth phase of plant expansion at its Mana Mine in
Burkina Faso. As a result, plant capacity is expected to attain up to 7,200 tonnes per day ("tpd")
in bedrock and up to 8,000 tpd in blended ore.
Completion of phase four will increase throughput by 1,200 tpd, representing an additional 26,000 to 30,000 ounces
of gold annually when compared to current plant capacity.
The
primary changes to the processing plant include:
-- Addition of a pebble crusher
-- Utilization of the third ball
mill, previously used as back-up
-- Addition of two CIL tanks
-- Addition of a thickener
-- Additional gensets
-- Critical spares
-- Some equipment capacity
upgrades
The
budget for this fourth phase of plant expansion is $25 million, including $18
million for enhancements to the plant and $7 million for additional mining
equipment.
"This
fourth phase of plant expansion is scheduled for commissioning by year-end
and has an estimated payback period of less than 16 months," said Benoit
Desormeaux, SEMAFO's Executive Vice-President and
Chief Operating Officer. "We expect to carry out the plant modifications
with little or no disruption to our day-to-day operations as was the case
with our recently-completed plant expansion project, which we accomplished on
time and on budget."
SEMAFO
launched this new phase of plant expansion in consideration of the potential
underground operation, continued growth in reserves and resources in the
vicinity of the plant, as well as the excellent exploration results
suggestive of the surrounding area's superior potential.
In
2010 the Mana Mine produced 179,700 ounces of gold.
Production guidance for 2011 has been established at between 170,000 and
190,000 ounces of gold.
Mana's
2010 production number is preliminary and subject to final adjustment.
About
SEMAFO
SEMAFO
is a Canadian-based mining company with gold production and exploration
activities in West Africa. The Company currently operates three gold mines:
the Mana Mine in Burkina Faso, the Samira Hill Mine
in Niger and the Kiniero Mine in Guinea. SEMAFO is
committed to evolve in a conscientious manner to become a major player in its
geographical area of interest. SEMAFO's strategic focus is to maximize
shareholder value by effectively managing its existing assets as well as
pursuing organic and strategic growth opportunities in West Africa.
Caution
Concerning Forward-looking Statements
This
press release contains forward-looking statements. Forward-looking statements
involve known and unknown risks, uncertainties and assumptions and
accordingly, actual results and future events could differ materially from
those expressed or implied in such statements. You are hence cautioned not to
place undue reliance on forward-looking statements. Forward-looking
statements include words or expressions such as "to augment",
"to attain", "expected", "up to",
"will", "increase", "scheduled",
"estimated", "carry out", "growth",
"evolve", "become", "pursuing" and other
similar words or expressions. Factors that could cause future results or
events to differ materially from current expectations expressed or implied by
the forward-looking statements include the ability for throughput to attain
up to 8,000 tonnes per day in blended ore, the
ability of plant capacity to attain up to 7,200 tonnes
per day in bedrock and up to 8,000 tonnes per day
in blended ore, the ability of phase four to increase throughput by 1,200 tonnes per day or 26,000 to 30,000 ounces of gold
annually when compared to current plant capacity, the ability to commission
the plant expansion by year-end, the ability to have a payback period of less
than 16 months, the ability to carry out plant modifications with little or
no disruption to our day-to-day operations, on time and on budget, the
ability to execute on our strategic focus, fluctuation in the price of
currencies, gold or operating costs, mining industry risks, uncertainty as to
calculation of mineral reserves and resources, delays, political and social
stability in Africa (including our ability to maintain or renew licenses and
permits) and other risks described in SEMAFO's documents filed with Canadian
securities regulatory authorities. You can find further information with
respect to these and other risks in SEMAFO's 2009 Annual MD&A, as updated
by our 2010 First Quarter MD&A, 2010 Second Quarter MD&A and 2010
Third Quarter MD&A, and other filings made with Canadian securities
regulatory authorities and available at www.sedar.com.
These documents are also available on our website at www.semafo.com.
SEMAFO disclaims any obligation to update or revise these forward-looking
statements, except as required by applicable law.
Contact:
Benoit La Salle, CA
SEMAFO
President & CEO
514-744-4408
Toll-Free:1-888-744-4408
blasalle@semafo.com
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