Semafo (SMF.TO) boosts mineral reserves to 357,100 ounces
2006-01-17 15:06 ET - News Release
Mr. Benoit La Salle reports
INCREASE IN MINERAL RESERVES BY 37% AT THE KINIERO GOLD MINE
Semafo Inc.'s in situ proven and probable mineral reserves stated as of Dec. 31, 2005, at its Kiniero gold mine in Guinea have increased by 96,200 ounces, representing a 37-per-cent increase over the recovered mineral reserves reported in the 2004 year-end statement. Beyond this increase, the mineral reserves extracted during the year 2005 at the Kiniero gold mine have been replaced.
The Kiniero mine in situ total proven and probable mineral reserves as of Dec. 31, 2005, stand at 2,596,000 tonnes at a grade of 4.28 grams per tonne (g/t) gold (Au) representing 357,100 ounces, using a gold price of $450 (U.S.) per ounce. This compares with 1,972,000 tonnes at a grade of 4.58 g/t Au representing a total of 260,900 recoverable ounces, as at Dec. 31, 2004, using a gold price of $400 (U.S.) per ounce.
Since official opening of the mine in April, 2002, the Kiniero mine has produced more than 190,000 ounces of gold. At a production rate of 60,000 ounces per year and, strictly taking into account the mineral reserves, the minimum expected mine life at Kiniero is six years.
In addition, the measured and indicated mineral resources increased by 35 per cent, reaching 8,175,200 tonnes at a grade of 2.79 g/t Au and representing a total of 733,300 ounces (545,200 ounces as of Dec. 31, 2004), thus leading to total mineral reserves and resources of 10,771,200 tonnes at a grade of 3.15 g/t Au, representing 1,090,400 ounces of gold (806,100 ounces as of Dec. 31, 2004).
The table below shows the details of the reserves and resources estimations as of Dec. 31, 2005.
RESERVES AND RESOURCES AT KINIERO MINE
AS OF DEC. 31
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Mineral reserves 2005 (2) 2004 (1)
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Proven mineral
reserves
Tonnes 1,279,000 1,316,800
Grade (g/t Au) 4.07 4.42
Ounces 167,400 169,200
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Probable mineral
reserves
Tonnes 1,317,000 655,200
Grade (g/t Au) 4.48 4.91
Ounces 189,700 91,700
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Total mineral
reserves
Tonnes 2,596,000 1,972,000
Grade (g/t Au) 4.28 4,58
Ounces 357,100 260,900
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Mineral resource 2005 (3) 2004
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Measured mineral
resources
Tonnes 2,493,400 2,195,800
Grade (g/t Au) 2.87 3.00
Ounces 230,200 211,700
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Indicated mineral
resources
Tonnes 5,681,800 3,079,500
Grade (g/t Au) 2.75 3.37
Ounces 502,400 333,500
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Total mineral
resources
Tonnes 8,175,200 5,275,300
Grade (g/t Au) 2,79 3.22
Ounces 733,300 545,200
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Total mineral 2005 (3) 2004
reserves and
resources
---------------------------------------
Tonnes 10,771,200 7,247,300
Grade (g/t Au) 3.15 3.59
Ounces 1,090,400 806,100
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(1) In 2004, mineral reserves included consideration for metallurgical and mining recoveries, and a gold price of $400 (U.S.) per ounce.
(2) Two thousand five in situ mineral reserves at Kiniero at $450 (U.S.) per ounce; cut-offs of oxide at 0.96 g/t Au and sulphides at 1.80 g/t Au.
(3) Two thousand five mineral resources at Kiniero cut-offs: oxide and sulphides at 0.70 g/t.
Benoit La Salle, president and chief executive officer of Semafo, comments, "The Kiniero operation has now achieved a new milestone in surpassing one million ounces in total mineral reserves and resources, thus demonstrating the ability of the Kiniero exploration team to replace its reserves annually."
In 2006, Semafo will expand its local and regional exploration programs to further increase the mineral reserves and resources and, consequently, the expected mine life of its Kiniero gold mine.
The mineral reserves and mineral resources estimations reported above are documented in conformity with Canadian National Instrument 43-101. The estimations are based on a technical report that will be made available on SEDAR. Michel Cormier, geological engineer and Semafo's qualified person, has supervised the preparation of the technical report on the reserves and resources estimates for the Kiniero mine, as of Dec. 31, 2005. He has reviewed this press release for accuracy and has confirmed that the information relating to mineral reserves and mineral resources outlines above derived from the technical report prepared for Semafo by experienced mining geologists under his technical supervision.
We seek Safe Harbor.
AI
