Resolute Mining is anticipating higher-than-expected production from the Syama gold mine in Mali, Africa, over its 11-year mine life following an upgrade at the site.
The mine is now projected to deliver around 2.9 million ounces at an average all-in sustaining cost (AISC) of under $1000 an ounce over its life of mine.
This ends up higher than Resolute’s production of 214,360 ounces at an average AISC of $1203 at Syama during 2020, with the mine expected to deliver 250,000-300,000 ounces per year at an average AISC of around $1000 per ounce until 2029.
Resolute interim chief executive Stuart Gale said the upgrade followed a period of exploration and mine design work at the Tabakoroni Underground together with the extension of its oxide operations.
“Syama has a significant gold endowment and there is still a great deal of exploration to be undertaken in this exceptionally prospective area,” he said.
“We remain very confident that the Syama LOM (life-of-mine) will continue to develop and extend beyond what we have published today.”
There is limited depth of drilling at Syama and Tabakoroni to date.
Resolute will continue Syama oxide operations until 2023, in the same year it will start developing the $86 million Tabakoroni underground mine.
Operations at Tabakoroni will start the following year until 2030 based on a maiden ore reserve of 2.9 million tonnes at 4.6 grams per tonne of gold containing 430,000 ounces.
Resolute is supporting its long-term plan with the building of a Syama hybrid power station, which comprises a thermal generation and battery storage system.
The battery and the first of three 10-megawatt heavy fuel oil (HFO) generating units have been commissioned, with the remaining units also slated for commissioning this month.
“In addition, we also remain focussed on identifying further extension and development opportunities at Mako in Senegal, to extend our mining activities beyond the current Mako LOM,” Gale said.
Resolute stated that there was significant exploration upside at Mako and it would continue to focus on near mine exploration.