After pouring its first 22.8-kg gold bar in early May, a month ahead of schedule and US$2 million below budget at US$73 million, the doors of the Yatela heap-leach operation in western Mali officially swung open on the weekend.
Yatela, of which Iamgold (IMG-T) and AngloGold (AU-N) each hold 40%, hit full production in mid-June. By the end of the second quarter, the project had produced 21,182 oz. gold. The government of Mali has a 20% interest in the property.
Yatela is expected to process about 2.5 million tonnes of ore annually to produce 1.4 million oz. gold over six years at an average grade of 3.6 grams gold per tonne. Average total cash costs are pegged at US$175 per oz.
Mining will proceed in three stages via an open pit, which will ultimately measure 1.2 km in length, 600 metres in width and 230 metres in depth.
Yatela’s mineral reserve stands at 13.4 million tonnes grading 3.7 grams per tonne, with total measured and indicated resources of 28 million tonnes at 2.5 grams per tonne.
Yatela employs a total of 472 people, of whom 434 are Malians.
AngloGold and Iamgold acquired Yatela in 1997 as an adjunct (though not a satellite) of the Sadiola Hill mine, 25 km to the south.
Only downstream elution recovery and final pouring will be done at the parent mine.
Sadiola, in which the two companies each hold 38%, produced 136,725 oz. gold during the recent second quarter at a total cash cost (net of production taxes and AngloGold’s management fees) of US$131 per oz. Direct cash costs were US$110 per oz.
The government of Mali owns 18% of Sadiola and International Finance Corp. owns 6%.
A feasibility study is investigating the addition of a US$13.7-million pre-aeration circuit and oxygen-enriched cyanide leach to increase gold recovery from Sadiola’s sulphidic saprolite ores. It is slated for completion in October.
Iamgold expects the modifications to be ready by the beginning of 2002. Further changes to the mill circuit are also on the drawing board.
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