Avesoro reports increase in Youga gold mine reserves

21 June 2018 (Last Updated June 21st, 2018 11:40)

Canadian firm Avesoro Resources has reported a 29% increase in mineral resource and mineral reserve estimate at its Youga gold mine in Burkina Faso.

Canadian firm Avesoro Resources has reported a 29% increase in mineral resource and mineral reserve estimate at its Youga gold mine in Burkina Faso.

The total mineral reserve estimation at the mine has increased by 147.4koz to 660.1koz of gold, while total measured and indicated mineral resource increased by 15% to 924.2koz of gold grading 1.73g/t Au.

The life of the mine (LOM) has been extended by two years to 2027 and the total gold production is projected to be 614koz.

“We are evaluating options for optimising the Youga process plant to allow the 2018 annual production guidance of 110-120koz to be maintained.”

The pre-tax net present value (NPV) has risen by 42% to $188.3m, while the post-tax NPV increased to $151.6m.

Avesoro Resources CEO Serhan Umurhan said: “This updated mineral resource and mineral reserve estimate for Youga consolidates the results of the successful 2017 drilling campaign undertaken in Burkina Faso, and increases the Mineral Resources and Reserves at the Youga mine itself, as well as at the high grade Balogo deposit that provides ore to the Youga processing plant.

Umurhan noted that the company acquired the mine for $70.2m in December last year and expects to add further years to the Youga life of mine with an ongoing drilling programme of 139,000m this year.

Announcement regarding further mineral resource and mineral reserve estimate upgrades at the mine is anticipated to be made in the first quarter of next year.

Umurhan added: “In anticipation of further growth in Mineral Reserves, we are evaluating options for optimising the Youga process plant to allow the 2018 annual production guidance of 110-120koz to be maintained in subsequent years by increasing mill throughput.”