Gold miner Resolute Mining will spend $US241 million to expand production at its Syama gold mine in West Africa, according to a feasibility report released today.
Resolute said its expanded open pit mine plan for Syama comprised a 15-year mine life, with 270,000 ounce annual production at $US720/oz.
Further extensions are also possible through an underground operation, the study said.
Life of mine revenue is expected to come in at around $US1.9 billion.
The $US241 million capital spend includes an 1 million tonne per year oxide processing plant, additional infrastructure, pre-production mining costs and construction of a high voltage power grid.
“The extremely robust results of the expansion DFS confirms Syama as a highly profitable, long life operation,” chief executive Peter Sullivan said.
“We look forward to presenting the board with this compelling and fully funded growth option for consideration later this month.”
At 11:30AM, WST, Resolute stocks were steady at $1.57.
