SEMAFO Provides 2011 Outlook
SEMAFO to Invest $39 Million in Exploration, Including $30 Million
at Mana
Montreal,
QC - January 27, 2011 � SEMAFO Inc. (TSX: SMF) today provided its 2011 guidance
and announced the establishment of a $39-million exploration budget,
including $30 million for the Mana property in
Burkina Faso.
�The Mana property continues to deliver excellent exploration
results,� said Michel Crevier, SEMAFO�s Geology
Manager. �Our expanded exploration program will focus on previously
established priority targets including the Fofina-Fobiri,
Kona, Massala and Saoura
areas. We will also drill on select areas based on our interpretation of
the magnetic and induced polarization survey results.�
Mana
exploration activities in 2011 are set to include:
- 69,000
meters of core drilling, including 6,000 meters over deep targets
- 130,000
meters of reverse-circulation (�RC�) drilling: 57,000 meters over
the Kona and Fofina-Fobiri areas
- 50,000 meters of air core drilling
In the first
quarter SEMAFO is scheduled to release the results of its feasibility
study of the Wona underground project, as well
as a full 43-101 report on the reserves and resources of the Mana property.
Exploration
at the Samira Hill Mine in Niger will focus primarily on the
identification of new oxide deposits. Air core and RC drilling is to be
carried out over the Boulon Jounga,
Libiri, Sikia, Tond� Babangou, Gare Gar� and Bouli areas. At the Kiniero
Mine in Guinea, core and RC drilling will be carried out mainly over the Secteur Gobel� A, Ouest-Balan D and E areas.
�Following
the positive 2010 exploration results and recognizing that we have
explored but a small fraction of the properties, we are pleased to
announce a record $39-million exploration budget for our three projects
in 2011,� said Benoit Desormeaux, Executive
Vice-President and Chief Operating Officer. �The exploration programs
include extensive infill and step-out drilling to maximize resources
development. These aggressive drill campaigns further emphasize the
Company�s strategic commitment to organic growth.�
2011
Outlook and Material Assumptions
For 2011, we anticipate production
to remain similar to 2010 levels and our production guidance for the year
is between 238,000 and 263,000 ounces of gold at a cash operating cost of
between $540 and $580 per ounce. Production from our Mana
Mine will constitute more than 72% of our total ounces produced in 2011. Mana�s annual guidance has been set at between
170,000 and 190,000 ounces of gold at a cash operating cost of between
$425 and $465 per ounce. Overall production growth will be constrained by
conditions at our Samira Hill Mine, where for the first two quarters we
will be processing transitional and lower grade ore as we carry out a pit
wall pushback. We expect the pushback to be completed in the Samira Main
pit by mid-year.
A number of
assumptions were made in preparing the 2011 forecast in this press
release, including:
- $0.92
per liter or $95 per barrel of oil
- Canadian/US
dollar exchange rate at par
- Social
and political stability in Africa
- Continued
stable production at the Company�s three mines
�Our team is
committed to maintaining solid performance levels in 2011,� said Benoit
La Salle, SEMAFO�s President and Chief Executive Officer. �We will focus
on strengthening our position as an important West African gold producer
and ensuring our ability to deliver sustainable growth.�
SEMAFO will
release its fourth quarter and 2010 year-end financial results on or
about March 16, 2011. The Company will also host a conference call
to discuss the results, the details of which will be announced at a later
date.
All amounts
are in US dollars unless otherwise indicated. �Cash operating cost� is a
measure that is not recognized under Canadian Generally Accepted
Accounting Principles (GAAP). This data may not be comparable to
data presented by other gold producers.
About
SEMAFO
SEMAFO
Inc. 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 �outlook�, �guidance�, �continues�, �will�, �set
to include�, �scheduled�, �to be�, �maximize�, �commitment�,
�anticipate�, �similar�, �expect�, �maintaining�, �strengthening�,
�ensuring�, �deliver�, �sustainable�, �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 to complete our 39$ million exploration program in
2011, the ability to release in the first quarter our feasibility study
on the Wona underground project as well as a
full 43-101 report on the reserves and resources of the Mana property, the ability of our exploration
program at Samira Hill Mine to identify new oxide deposits, the ability
of the extensive infill and step-out drilling to maximize resources
development, the ability to meet our 2011 production and cash operating
cost guidance, the ability to deliver sustainable growth, the ability
to execute on our st rategic
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.
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