Semafo’s Kiniero, Nyafe and Wona grow

A re-optimization of the pits at the Kiniero mine in northern Guinea have boosted mineral reserves for Montreal-based Semafo (SMF-T).

Based on a gold price of US$308 per oz., and updated mill recovery and mine dilution factors, reserves at the end of 2002 rang in 36% higher than a year earlier. The increase comes despite the production of 42,005 oz. of gold from 295,919 tonnes averaging 5.42 grams gold during the first nine months of operation. The mine, formerly called the Jean-Gobele project, began production on April 25, 2002.

At the end of 2002, Kiniero’s reserve stood at about 1.28 million tonnes grading 5.56 grams gold for 229,000 contained ounces. Measured and indicated resources tally to 3.5 million tonnes running 3.66 grams, or 410,000 contained ounce a 23% increase over a year ago.

Semafo attributes the increase to the inclusion of the Gobele-C and D structures into the recent model. The estimates employ a cut-off grade of 0.7 gram gold for the oxide ore and 4.0 gram for the sulphide ore. All high assays were cut to 30 grams gold.

Meanwhile on the Mana property in Burkina Faso, three rounds of reverse-circulation (RC) drilling have managed to boost indicated resources on both the Wona and Nyafe mineralized structures. The two are estimated to hold 4.8 million tonnes of 4.71 grams or 733, 000 ounces, up from 470,000 ounces at the end of 2001. The estimate includes material in an envelop defined by drill intersection (100 metres apart) running at least 2 grams over 3 metres.

Ongoing diamond and RC drilling on the 2.5-km-lonmg Wona orebody is aimed at closing up the drilling spacing there to 50 by 25 metres. The drilling is also aimed at boosting tonnage in preparation for an internal feasibility study, which the company plans to wrap up at the end of 2003.