Perth-based gold miner Resolute Mining says it will go ahead with a $241 million expansion of its Syama gold mine in Mali, after its board of directors approved the development.
The works include an expansion of the existing open pit at Syama and the establishment of a 1 million tonne per year processing facility.
Resolute hopes to increase production at Syama to 270,000 ounces of gold a year, with cash costs of $US720/oz over the operations first nine years.
Resolute chief executive Peter Sullivan said the approval was an important milestone.
“This investment will increase our gold production and lower our average cash costs, bringing substantial benefits to all Resolute shareholders,” Mr Sullivan said.
Mr Sullivan said negotiations for an engineering, procurement, construction and maintenance contract were under way, as well as discussions regarding a new mining contract.
At close of trade today, Resolute stocks were up 5.6 per cent, trading at $1.42.
