PRECIOUS METALS

Roxgold eyes further potential at Séguéla

Hits 3m at 94.2g/t gold

Staff reporter

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Among the highlights, Roxgold reported 3m at 94.2g/t gold from 30m, in a wider 20m intercept grading 28g/t.

"With four rigs currently turning, I am confident that we will continue to unearth further upside from the existing four deposits as well as near-term targets on the property which are yet to be tested," president and CEO John Dorward said.

The West Africa-focused company is aiming to release a feasibility study and make a construction decision for its 90%-owned project in the first half of 2021.

A recent "exceptional" preliminary economic assessment, based on Séguéla's Antenna, Ancien, Agouti and Boulder deposits, outlined a base case after-tax NPV5 attributable to Roxgold of US$268 million and IRR of 66%.

The company had acquired Séguéla in April 2019 from ASX-listed Newcrest Mining. 

Roxgold's Yaramoko mine in Burkina Faso has not been materially impacted by COVID-19, the company said in May, and is expected to produce between 120,000-130,000 ounces of gold this year.

Roxgold had ended the March quarter with about US$50 million in cash and gold doré.

Its shares (TSX: ROXG) touched a one-year high of C$1.49 intraday on Friday.

They closed up 3.5% to $1.47 to capitalise it at $547 million (US$400 million).

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