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Roxgold delivers strong feasibility study for Séguéla

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(Kitco News) - Roxgold (TSX: ROXG) (OTCQX: ROGFF) announced Monday the results of the Feasibility Study and Mineral Reserve estimate for the high-grade Séguéla gold project in Côte d'Ivoire.

The company said that Feasibility Study confirms robust economics for the development of an open-pit mining operation at Séguéla, targeting a series of open-pit mines at Antenna, Koula, Ancien, Agouti and Boulder deposits that will feed a central gold processing facility.

The Feasibility Study considers an operation with an initial nameplate of 1.25 million tonnes per annum and mine life of 9 years. LOM after-tax net cash flow is $536 million at a gold price of $1,600 per ounce (Base Case). At Base Case scenario, the project generates robust economics with after-tax net present value of $380 million (attributable to Roxgold's 90% interest) and internal rate of return of 49%.

Roxgold added that the initial Proven and Probable Mineral Reserves are estimated at 12.1 million tonnes grading 2.8 g/t Au totalling 1.1 Moz Au – positioning Séguéla among the highest-grade open pit gold projects globally.

President and CEO John Dorward commented, "We are pleased to share with the market the results of our Feasibility Study on Séguéla which underscores the substantial value accretion that this project will bring to Roxgold and its shareholders. Séguéla has rapidly become a cornerstone asset for Roxgold, with the potential to more than double the company's production profile within a short time frame. We expect to be able to deliver this without the need for equity dilution."

Roxgold intends to make a formal construction decision upon completion of a debt financing package and signed mining convention with the Government of Côte d'Ivoire.

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