Toronto, Ontario – April 14, 2020 – Roxgold Inc. (“Roxgold” or the “Company”) (TSX: ROXG) (OTCQX: ROGFF) is pleased to announce the results of a Preliminary Economic Assessment (“PEA”) for the high-grade Séguéla Gold Project (“Séguéla”) in Côte d’Ivoire. The PEA was prepared in accordance with Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The PEA provides a base case assessment of developing the Antenna, Ancien, Agouti and Boulder deposits as open pit mines feeding a central gold processing facility. Roxgold expects to continue its evaluation of Séguéla with the intent of growing the resource base and advancing to the feasibility stage.
A webcast and conference call to discuss the PEA results will be held on Wednesday, April 15 th, 2019, at 8:00AM Eastern time – details of the call are outlined in the “Séguéla Gold Project PEA Conference Call” section below.
Séguéla Gold Project Overview
The Séguéla Gold Project is located approximately 240 kilometres north-west of Yamoussoukro, the political capital of Côte d’Ivoire, and approximately 480 kilometres north-west of Abidjan, the commercial capital of the country. The Séguéla property covers an area of 36,300 hectares, defined by two exploration permits. The property is generally accessible yearround by road vehicle. Bituminised national highways facilitate transport between Abidjan, Yamoussoukro and the town of Séguéla (population 65,000) which is the nearest major town to the property. The project is accessible from the town of Séguéla via approximately 20 km of dirt roads.
Capital Costs Summary
The capital required to develop Séguéla is estimated to be $142 million (including $20 million contingency) with an additional $36 million of sustaining capital and $11.5 million of closure costs over the eight-year mine life. The mining production capital relates to mining activities prior to first material being delivered to the processing facility, where 301,000 tonnes of mineralized material and 397,000 tonnes of waste are mined in order to establish a reasonable stockpile ahead of operations commencing. All contractor mobilization and setup are included in the pre-production capital allowance.
The processing plant capital relates to a facility with a nominal throughout of 1.25 Mtpa. The capital cost estimate is based on an engineering, procurement and construction management (“EPCM”) implementation approach and horizontal (discipline based) construction contract packaging. Equipment pricing was based on actual equipment costs from other recent similar scale Lycopodium projects and considered representative for Séguéla.
The surface infrastructure includes site electrical distribution, tailings management facility, water dams and accommodation camp. A summary of estimated capital costs is presented in Table 5 and annual estimated capital costs are shown in Table 6. Capital cost estimates in the PEA reflect the joint efforts of Knight Piésold Consulting, Lycopodium Limited, CSA Global Pty Ltd., ECG and Roxgold. Roxgold compiled the capital cost data into the overall cost estimate. Table 7 outlines the responsibilities of each contributor to the cost estimates.
SOURCE: Roxgold Inc.
DATE: APRIL 14, 2020