PRECIOUS METALS

Roxgold eyes further potential at Séguéla

Roxgold is eyeing growth potential at the Séguéla gold project in Côte d’Ivoire as it reported further results from infill and extension drilling at the Ancien deposit.

Staff reporter
 The four key deposits at Roxgold’s majority-owned Séguéla gold project in Côte d’Ivoire

The four key deposits at Roxgold’s majority-owned Séguéla gold project in Côte d’Ivoire

Among the highlights, Roxgold reported 3m at 94.2g/t gold from 30m, in a wider 20m intercept grading 28g/t.

"With four rigs currently turning, I am confident that we will continue to unearth further upside from the existing four deposits as well as near-term targets on the property which are yet to be tested," president and CEO John Dorward said.

The West Africa-focused company is aiming to release a feasibility study and make a construction decision for its 90%-owned project in the first half of 2021.

A recent "exceptional" preliminary economic assessment, based on Séguéla's Antenna, Ancien, Agouti and Boulder deposits, outlined a base case after-tax NPV5 attributable to Roxgold of US$268 million and IRR of 66%.

The company had acquired Séguéla in April 2019 from ASX-listed Newcrest Mining. 

Roxgold's Yaramoko mine in Burkina Faso has not been materially impacted by COVID-19, the company said in May, and is expected to produce between 120,000-130,000 ounces of gold this year.

Roxgold had ended the March quarter with about US$50 million in cash and gold doré.

Its shares (TSX: ROXG) touched a one-year high of C$1.49 intraday on Friday.

They closed up 3.5% to $1.47 to capitalise it at $547 million (US$400 million).

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