Lycopodium wins West African contract

Lycopodium has secured an engineering contract with Scarborough-based West African Resources at its Sanbrado gold project in Burkina Faso, which has commenced early works.

Under the contract, local outfit Lycopodium will design and build a 2 million tonnes per annum treatment facility along with associated infrastructure.

The two parties have signed a letter of intent for an engineering, procurement and construction management contract.

West African said it has begun construction of the mine camp at Sanbrado, along with earthworks.

The company expects to award an underground mining contract this quarter and the open-pit contract in the first quarter next year.

“The award of the EPCM contract, the order of the mill package, and the key construction team hires keeps West African Resources on track to pour gold at Sanbrado in the second half of 2020,” managing director Richard Hyde said.  

“Infill drilling continues, which is expected to increase the current underground mine life past five years.

“Optimisation studies to be completed by quarter one 2019 will include resource and reserve updates, and planned higher process plant throughput rates resulting in increased annual gold production.”

Lycopodium gas completed a number of EPCM contracts in Burkina Faso, including processing plants for Canadian listed companies Semafo and Endeavour Mining.

Shares in Lycopodium finished down 0.87 per cent at $4.55 each today, while West African shares were up 1.79 per cent.