"Bibiani – the pathway to production."
A positive Feasibility Study for Bibiani was completed and lodged with the Government of Ghana in June 2016 (see ASX announcement dated 23 June 2016). The 2016 Study proposed an underground mine that would produce in excess of 100,000 ounces of gold per annum at a Life of Mine All-In Sustaining Cost of US$851/oz. Mine production was anticipated to be 1.2 million tonnes per annum from Long Hole Open Stope underground mining. Processing of the ore was planned to occur at the existing on-site Bibiani processing plant. The Study identified a modest start-up capital requirement of only US$72 million and a short lead time to production of only nine months. The majority of the upfront capital was allocated to the refurbishment of the plant and to the purchase of owner operated mining fleet.
An updated Feasibility Study has commenced based on the Updated Mineral Resource Estimate. The Phase 2 drilling program has successfully increased the size, grade, and confidence in the resource and will drive improved project economics and extension to the mine life beyond the initial five years. The updated Feasibility Study will include an updated Ore Reserve. In addition to incorporating the Phase 2 drilling and increased Mineral Resource, the updated study will incorporate a review of capital expenditure and consider alternative mining rates and mining methods appropriate to the underground project.
Bibiani Resource Upgrade
Mineral Resources increased by 40% to 2.5 million ounces