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Roxgold upbeat on production outlook

Roxgold (TSX: ROXG) expects to achieve the upper end of its increased production guidance for 2018 after another strong quarter at its Yaramoko gold mine in Burkina Faso, where its second mine is nearing production.
Roxgold upbeat on production outlook Roxgold upbeat on production outlook Roxgold upbeat on production outlook Roxgold upbeat on production outlook Roxgold upbeat on production outlook

Roxgold is optimising its processing plant

Staff reporter

The company increased 2018 guidance from 110,000-120,000 ounces to 120,000-130,000oz and reduced its all-in sustaining costs outlook, from US$780-$830/oz to $740-$790/oz, in May after record first quarter results from Yaramoko.

The operation produced 35,828oz in the June quarter and achieved a quarterly processing record of 75,417t at an average head grade of 14.42g/t, 12% above nameplate capacity due to ongoing plant optimisation.

Roxgold said it was on track for first ore from its second high-grade underground gold mine, Bagassi South, in the fourth quarter.

The company received legal approval last month to operate Bagassi South, which lies just 1.8km from the Yaramoko mill.

Roxgold said Yaramoko had two months of plant feed stockpiled at the end of June and was well positioned to meet future production requirements, with developed reserves for stoping exceeding 18 months of planned stoping.

It said Bagassi South was about 60% complete and processing plant tie-ins were expected to largely occur within planned maintenance stoppages in the third and fourth quarters.

The company has regional, infill and extension exploration programmes underway.

Roxgold shares have ranged between C98c-$1.44 over the past year and last traded at $1.07.