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(Kitco News) - West Africa-focused gold producer Robex Resources (TSXV: RBX) today announced the results of the feasibility study for the Kiniero gold project in Conakry, Guinea.
The historical Kiniero gold mine comprised an open pit mining operation that produced 418,000 ounces of gold during its 12-year operational history. The mine was placed on care and maintenance in early 2014.
Robex is now restarting the Kiniero gold mine as a long-life open pit mining operation based on constructing a new 3mtpa process plant.
The ore mined from the Kiniero deposit is expected to be processed through a standard 3.0mt capacity carbon-in leach/gravity plant. The mine is expected to be an open pit using conventional mining methods.
Construction of the project started in Q4 2022, with US$27 million expected to be spent by June 30, 2023 of the initial capital costs of US$160 million (or 17% of total).
In a statement, the company said that the feasibility study has demonstrated improved economics compared to the pre-feasibility study, with 26% increase in pre-tax NPV5% to US$251 million and IRR of 42% at a base case gold price of US$1,650/oz while post-tax NPV5% stands at US$170 million and IRR at 31%.
The project’s mineral reserves increased by 165koz or 21% to 968koz from the pre-feasibility study, increasing mine life to 9.5 years (46% up compared to PFS), while all-in sustaining costs (AISC) are below initial target of US$1,000/oz, at US$ 980/oz, improving from PFS (US$1,035/oz).
Robex said that the feasibility study demonstrates Kiniero’s ability to deliver an average production of 90koz of gold per year at an AISC of US$980/oz over the mine life, as mine plan optimization efforts prioritized a stable, long mine life, rather than peak upfront production.
Importantly, over the coming years, Robex intends to continue its exploration efforts to continue to extend the mine life and increase annual production.
Robex is a multi-jurisdictional West African gold production and development company with near-term exploration potential. The company has been operating the Nampala mine in Mali since 2017 and is advancing the Kiniero gold project in Guinea.
