The Goldenrae alluvial gold mine in Ghana, West Africa, has entered into production, two weeks behind schedule but 10% below budget. At operating costs of below US$130 per oz., part-owner Sikaman Gold (TSE) expects to produce about 22,000 oz. of gold in the mine’s first full year of production. Goldenrae is a joint venture between Sikaman (34%), ITM International (51%), the government of Ghana (10%) and a local co-operative (5%).
A floating wash plant, capable of treating 35.7 million cu. ft. of material per annum, is expected to reach full capacity within 4-6 weeks. Over the life of the mine, operating costs are expected to range from US$130 to US$170 per oz.
The alluvial gravel is mined first by removing vegetation with a bulldozer, then removing topsoil with a front-end loader, according to Sikaman’s interim report. The gravel is then excavated and fed into the floating wash plant.
Preliminary reserves on the 25,000-acre property are estimated to total 643 million cu. ft. containing 230,000 oz. of gold. With the aim of starting a second treatment plant, Sikaman continues to explore the Kwabeng and Pameng mining leases.
Goldenrae represents the first property that Sikaman has developed from an exploration play into a producing mine. By the end of the month, the company expects to have the Bogosu project, its other Ghanian gold deposit, into production.
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