A recent update nearly doubled the measured and indicated resources at Roxgold’s project in Côte d’Ivoire.SUPPLIED
With three strong assets in West Africa, Canadian-based gold mining company Roxgold Inc. (TSX:ROXG) is now well on the way to shedding its image as a one-mine, one-country operation, says president and CEO John Dorward.
He was particularly pleased with the recent resource update to the company’s Séguéla Project, located in Côte d’Ivoire, which saw a near doubling of measured and indicated resources and put the project comfortably over the million-ounce mark. Séguéla has been advancing quickly for Roxgold, with the company anticipating initial production next year.
“We are looking to deliver our feasibility study in the second quarter of this year and expect to make the formal investment decision to go ahead in Q2. We’re well financed to do that and have been awarded our exploitation permit for the project, so there are not really any significant roadblocks standing in the way of getting this project started by the halfway mark of the year,” says Mr. Dorward.
Séguéla is a very significant step forward for the company, he adds.
“We are transforming from a single project, single jurisdiction company into a multi-mine, multi-jurisdiction company, so our risk profile goes down,” says Mr. Dorward. “But this will have most impact on the production and cash flow front. The project will comfortably more than double our production, our reserves and resources, and our cash flow and earnings.”
He notes that development of Séguéla will be financed through a combination of cash on hand, borrowing facilities and cash flow over the next 18 months, and without any recourse to shareholders.
“For many investors, one of the challenges of investing in junior mining companies is that they are often diluted to pursue growth opportunities, but we are not planning to issue any shares at all,” says Mr. Dorward. “We finished 2020 with US$62-million in the bank, and we’re looking to expand our credit facilities and then have cash flow from our Yaramoko mine in Burkina Faso over the course of the Séguéla project, which has a capex in the preliminary economic assessment in the order of US$142-million, and we don’t see that changing a great deal.”
John Dorward“For many investors, one of the challenges of investing in junior mining companies is that they are often diluted to pursue growth opportunities, but we are not planning to issue any shares at all.
President and CEO, Roxgold Inc.
Roxgold’s current flagship property, Yaramoko, continued to perform well in 2020 in spite of the challenges posed by the COVID-19 pandemic, says Mr. Dorward.
“Looking back to March and April of last year, I was very nervous about what the year would bring and how we’d be able to continue operating,” he says. “We rely on the free flow of people and goods in Burkina Faso and across international boundaries for our suppliers and our expatriates. While that flow was hindered, it wasn’t stopped, and thanks to the foresight and rapid response of our regional teams to manage and mitigate the impacts of COVID-19 on our employees, contractors and communities, we were able to have a really good year and ended coming in above the upper end of our guidance range while protecting our low-cost margins.”
With Yaramoko in production and Séguéla nearing construction, Mr. Dorward is excited to note what could be the third leg to the Roxgold story – following positive new exploration drilling results from the company’s Boussoura Project, located on the Houndé Greenstone Belt in southern Burkina Faso.
“Boussoura is Roxgold’s advanced-stage exploration project that is rapidly defining mineralization over multiple areas demonstrating its large-scale potential,” says Mr. Dorward.
Since announcing the discovery of Boussoura a year ago, the company has drilled over 150 holes with consistent assay returns demonstrating broad intersections of mineralization with lower-grade halos surrounding higher-grade quartz veins – characteristic of the style of mineralization found within the prolific Houndé Gold Belt.
“The project is still in its early days, yet we are growing more confident in the scale of this project,” he says. “We will keep the drills turning at Boussoura as we look to continue to expand and define the mineralized footprint towards the goal of a maiden resource by year end.”
For more, visit roxgold.com.
Advertising feature produced by Randall Anthony Communications with Prospectors & Developers Association of Canada. The Globe’s editorial department was not involved.