Niger gold project's costs fall as output rises
Creamer media's MINING WEKLY -- 23 March 2005
Diversified Canadian junior miner Etruscan Resources announced last week that Samira Hill Gold Mine, in Niger, which was inaugurated on October 5, 2004, produced 21 521 oz during the last quarter of 2004, in addition to 4 234 oz of gold in the circuit at the end of December, 2004.
The mine's gold sales for the period totalled $7 076 691, with Samira selling a total of 19 138 oz at an average price of $370/oz, delivered against forward sales contracts.
The production cash cost at the Samira Mine for the last quarter of 2004 was $192 on produced oz and $200 on sold oz, the company said. The total cash cost of the operation was $225 for the last quarter of 2004.
“The reduction in cost is mainly attributable to a high percentage of throughputs of oxide ore at an average grade of 2,03 g/t as compared to the initial feasibility estimates. In addition, the plant operation witnessed a considerable reduction in cost associated to significantly less consumables (cyanide, lime, and peroxide) than called for in the feasibility study,” Etruscan said.
The Samira Hill Gold Mine is scheduled to produce 618 000 oz of gold in its 6,3 years of operation and is owned 40% by Etruscan, 40% by Semafo, and 20% by the State of Niger.
The Samira Hill Gold Mine is the first of three known deposits which Etruscan is bringing to production. The second deposit to be developed by Etruscan is the Youga Mine located in Burkina Faso and the third deposit is the 1,1-million oz Agbaou deposit located in Ivory Coast.
