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Mining industry

Sahelian Goldfields Inc. Exercises Option to Acquire 90% Interest in Poura Gold Mine in Burkina Faso

Strategic Insights

— 1 min read

Sahelian Goldfields Inc. is exercising its option to acquire a 90% interest in the Poura gold mine in Burkina Faso, West Africa from SOREMIB, the state-owned mining company. This acquisition is not contingent on any cash payment and is expected to be presented to the Cabinet of the Burkina Government shortly. The mine, which had previously produced 600,000 ounces of gold, is expected to start annual gold production at an optimum level of about 45,000 ounces by the end of 1998, with total cash production costs estimated at around US $180 per ounce.

Key Takeaways:

  • Sahelian Goldfields Inc. is exercising its option to acquire a 90% interest in the Poura gold mine in Burkina Faso from SOREMIB.
  • The acquisition is not contingent on any cash payment and is expected to be presented to the Cabinet of the Burkina Government shortly.
  • The mine had previously produced 600,000 ounces of gold and is expected to start annual gold production at an optimum level of about 45,000 ounces by the end of 1998.
  • Total proven and probable, fully-diluted, mineable ore reserves at the mine total 420,000 tonnes at a grade of 11.0 grams of gold per tonne (Au/gt).
  • Previous mining of the gold-bearing quartz vein was carried out along a 2 kilometre strike, but only to a depth of 300 metres from surface.
  • The vein remains open along strike in both directions and at depth, with additional reserves expected to be delineated as exploration and development continue.
  • Sahelian assumed operatorship of the mine in June, 1997, and has been carrying out exploration, underground development, and rehabilitation of the mine and mill.
  • The company has received an ECU 11,000,000 (US $14,500,000) grant from SYSMIN, a European Economic Community development agency, to fund its work on the mine.

Statistics:

  • Proven and probable, fully-diluted, mineable ore reserves: 420,000 tonnes at 11.0 grams of gold per tonne (Au/gt).
  • Total cash production costs: estimated at around US $180 per ounce.
  • Total anticipated gold production: 45,000 ounces per year.
  • Previous gold production at the mine: 600,000 ounces.
  • Total grant received from SYSMIN: ECU 11,000,000 (US $14,500,000).
  • Investment required to arrive at full production rate: US $3,000,000.

Sources:

  • Sahelian Goldfields Inc. press release, March 23, 1998.
  • Business Wire, March 23, 1998.
  • Sahelian Goldfields Inc. website ( archived version from 1998).

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