Semafo enjoys record-breaking July

High grades and increased mill availability helped Montreal-based Semafo (SMF-T) produce a record 18,587 oz. of gold from its Samira Hill and Kiniero mines in West Africa in July.

The haul represents a 19% increase from the previous monthly record of 15,602 oz. poured in March.

In Niger, Samira Hill, which began producing in October, squeezed 12,567 oz. of gold out of 150,834 tonnes of ore averaging 2.9 grams gold per tonne, for an average recovery rate of 90%.

Second-quarter production from the mine totalled 20,030 oz., as 307,062 tonnes grading 2.4 grams gold were run through the mill; the average recovery rate was 88 %. The quarterly performance was short of plan owing to a mechanical problem with the spout feeder, which limited the plant availability; a new spout feeder and trommel were installed in June.

At last count, Samira Hill was home to reserves totalling 9.6 million tonnes running 2.21 grams gold per tonne, or 591,700 recoverable ounces. Total resources contained in the Samira, Libiri and surrounding deposits are pegged at 25.1 million tonnes of 1.53 grams gold, for around 1.5 million contained ounces. Semafo believes the Samira Hill and Libiri deposits are just two of several significant gold deposits in the emerging Samira Horizon gold belt.

In 2004, Samira produced 22,006 oz. of gold from 436,398 tonnes of ore averaging 2.11 grams gold; another 4,234 oz. were contained in the processing circuit. The mine is expected to pour 120,000 oz. at a cash operating cost of US$225 per oz. in 2005.

In Guinea, Kiniero churned out 6,020 oz. of gold in July. The mill treated 53,942 tonnes of ore containing 3.6 grams gold per tonne at a recovery rate of 93 %. The mine’s second-quarter contribution was a record 18,155 oz. thanks to higher-than-expected mill throughput. The mill treated 163,851 tonnes averaging 3.7 grams gold at a recovery rate of 93 %.

Mechanical problems in late 2004 saw Kiniero produce just 41,049 oz. of gold from 411,948 tonnes running 3.36 grams gold. Subsequent repairs and maintenance and the commissioning of a second ball mill boosted throughput by more than 25% to more than 50,000 tonnes of oxide ore per month. Semafo expects Kiniero to produce around 60,000 oz. of gold at US$250 apiece in 2005.

At the end of 2004, reserves at Kiniero stood just shy of 2 million tonnes grading 4.58 grams gold, for 260,900 contained ounces. Total measured and indicated resources were 5.3 million tonnes of 3.22 grams gold, for 545,200 contained ounces.

A newly discovered deposit on the nearby Jean-Gobele property, in the West Balan zone, hosts total reserves and resources of 722,422 tonnes grading 3.36 grams gold, or 77,900 contained ounces. The zone remains open in all directions.

“We are delighted that in July, the Samira Hill milling operation performed above expectations,” said Semafo CEO Benoit La Salle in a prepared statement. “We had experienced low milling availability over the past few months and we are extremely pleased with the outcome of our efforts, bringing this operation to new heights.”

“Performance at the Kiniero mine has shown great production stability and is now confirming the true potential of this operation,” he added.

The Samira Hill mine is owned 40% by Semafo, 40% by Nova Scotia-based Etruscan Resources (EET-T), and 20% by the government of Niger. Semafo owns 85% of Kiniero, with the balance held by the Republic of Guinea.