Lycopodum secures engineering and supply contract for Yaouré project

11 January 2019 (Last Updated January 15th, 2019 15:16)

ASX-listed Lycopodium has secured an engineering and supply contract for the Yaouré Gold project in Côte d’Ivoire from Perseus Mining.

ASX-listed Lycopodium has secured an engineering and supply contract for the Yaouré Gold project in Côte d’Ivoire from Perseus Mining.

The contract award is subject to finalisation of the formal contract documentation, full project funding and receipt of exploitation permit to Perseus.

The contract is expected to generate revenue of $95.1m.

This amount will be reported in the last part of the 2020 financial year and first half of the following financial year.

The company does not expect any material impact to this financial year’s forecast given the project timing.

Earlier, Lycopodium delivered the Sissingué Gold project and completed the Definitive Feasibility Study (DFS) and Front End Engineering and Design (FEED) for the Yaouré Gold project for Perseus.

Development of Yaouré project is expected to cost $262.7m. During its first five years of operations, the firm will develop and produce 215,000 oz per year.

This project will consist of two open pit operations located adjacent to each other. Ore is expected to be sourced from three pre-existing heap leach pads near the run-of-mine pad.

This ore will be shifted to a nearby processing plant. Tailings from the processing plant will be stored in a single facility to the south of the process plant.

The plant will process ore at an annual rate of 3.3 million tonnes.

“The contract is expected to generate revenue of $95.1m.”

Yaouré has a JORC-compliant reserve of 26.8 million tonnes at 1.76 g/t of gold containing 1.52 Moz of gold.

Perseus’s Sissingué Gold Mine in Côte d’Ivoire poured its first gold in January 2018.

Sissingué is Perseus’ second gold mine, having earlier developed the Edikan Gold Mine in Ghana, which has produced around 200,000oz of gold annually since 2012.