A group of lenders led by the African Development Bank (ADB), and including Semafo (SMF-T), has approved a US$27-million loan to La Socit des Mines du Liptako (SML) to develop the Samira Hill gold project in Niger.
SML is 80%-held by African GeoMin Mining Development (AGMD), with the government of Niger holding the remaining 20%. Semafo and Etruscan Resources (EET-T) each hold a 50% participating interest in AGMD.
The funds will go toward the construction of a fully engineered 6,000-tonne-per-day carbon-in-leach (CIL) plant at Tiawa, about 130 km west of the Nigerian capital of Niamey. A yearlong construction period is expected to begin in the third quarter.
The partners have already built roads, a landing strip, a surface water dam, a storage reservoir, a water pipeline, and an electrical power station.
Initial plans call for the CIL plant to run through oxide ore and 4,000 tonnes per day of transition ores from open pits on the Samira Hill and Libiri deposits. Beginning in the second year of operation, ore will be blended from the upper portions of the Libiri pit. The average stripping ratio is expected to be 3-to-1.
Combined, the two deposits host measured and indicated resources of 15 million tonnes grading 1.6 grams gold. Mineable reserves stand at 10.1 million tonnes grading 2.21 grams gold. Both deposits remain open at depth.
During the first year of operation, production is pegged at 135,000 oz. at a cash cost of US$177 per oz. Over a 6.3-year mine life, production is expected to average 100,000 oz. at US$203 per oz.
The debt financing is subject to certain conditions, final documentation, and ratification by SML at a meeting slated for June 3.
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