Lumina Gold secures ‘slightly better’ Ecuador terms with Cangrejos mining permit, analyst says
The contract includes $25 million in advance royalty payments to the government split into four stages.
Roxgold’s share price is up 77% since the start of the year after announcing a robust feasiblity study for its Yaramoko project in Burkina Faso in April on the back of a string of stellar drilling results and a number of financing deals to push the project forward.
On Tuesday the company reached another milestone when the Burkina Faso Ministry of Environment and Sustainable Development approved the Environmental and Social Impact Assessment for the ultra-high grade Yaramoko project.
“The approval of the ESIA is a major achievement for our Company and brings us to the final stages of the permitting process for Yaramoko,” said John Dorward, President and Chief Executive Officer.”
After receipt of a mining permit and mining convention from authorities in the West Africa nation, expected in the fourth quarter and the finalization of a deal with the national electricity provider, Roxgold would be able to start underground development towards the end of the year.
In June the company received a $75 million debt financing mandate and has started sourcing long-lead equipment for the proposed mine.
Yaramoko stands out as a project thanks to a combination of one of the high-grade undeveloped deposits in the world containing probable reserves of 759,000 oz of gold at an average grade of a whopping 11.83 g/t gold and some of the lowest costs in the industry – all in sustaining costs of $590 an ounce.
The Yaramoko feasibility improves on the PEA and calls for a low capex – only $106 million placing it in the bottom 5% of African gold projects – underground mine producing 99,500 ounces on average annually for an initial 7.4 years.
Roxgold owns 100% of Yaramoko, but the government of Burkina Faso is entitled to 10% of the project after the formal award of permits.
Burkina Faso with a population of 16 million people, is the continent’s fourth largest gold producer after Mali and has commissioned eight new mines over the past six year.
