Semafo shaking up Kiniero operation

Unsatisfactory production from the Kiniero gold mine in eastern Guinea has led Semafo (SMF-T) to put a new mining plan in place.

Kiniero, which produced only 8,600 oz. gold during the second quarter of 2007, exploited narrow veins in a single pit. Structures in the 2007 mine plan have proved to be less predictable, with a significant increase in the stripping ratio: it has risen to 17 from 10.

Semafo will mov mining to the comparatively low-strip West Balan pit for the balance of the year. The pit has a stripping ratio of 7 and a projected cash operating cost of US$350 to US$375. Pre-stripping is underway.

Scheduled maintenance, which had been planned for year-end, has been moved up to take advantage of mining downtime and to provide full mill availability for when West Balan is brought on stream.

Semafo has revised its 2007 production guidance for Kiniero to 30,000 oz. and expects to pour 45,000 oz. there in 2008.