Fortuna Silver Mines (TSX: FVI; NYSE: FSM) announces that it will develop its Séguéla gold project in Côte d’Ivoire, which the company acquired through a merger with Roxgold earlier this year.
“With a nine-year life in reserve, 130,000 ounces of annual gold production in the first six years, and a compelling economy, Séguéla is expected to become our fifth operating mine with first gold by mid-year. -2023 “, said Jorge, President and CEO of Fortuna. A. Ganoza.
Groundbreaking on the plant site is scheduled for next month and the accommodation camp is expected to be completed in November.
Roxgold completed a feasibility study on Séguéla in May that described an 8.6-year-old surface mine producing an average of 120,000 ounces. gold per year. The investment costs were estimated at 173.5 million US dollars. Fortuna acquired the West African-focused gold producer in early July in a cash and equity transaction valued at US $ 884 million.
The feasibility study predicted an average life of the all-inclusive sustaining cost of the mine of US $ 832 per ounce. Priced at US $ 1,600 per ounce of gold. and a 5% discount rate, the net present value of the project is estimated at US $ 380 million after tax. Its internal rate of return was calculated at 49%.
“The decision to begin construction on the still growing Séguéla project marks an important milestone for the company,” said Paul Criddle, COO of Fortuna, West Africa. “The team further reduced project risk by advancing the detailed design and starting the sourcing of long lead items, including the SAG factory and the execution of critical path agreements, including including the EPC agreement with Lycopodium for the processing plant. This helped protect Séguéla’s critical path as well as manage cost risk by locking in substantial elements of the initial investments in fixed price contracts.
Exploration drilling at Séguéla is continuing. Fortuna recently drilled a 30 meter high point grading 17.2 g / t gold at the Sunbird prospect on the property.
Séguéla has proven and probable reserves of 12.1 million tonnes grading 2.8 g / t gold for 1.1 million ounces. The reserves are contained in five deposits: Antenna, Koula, Ancien, Agouti and Boulder. The government of Côte d’Ivoire has a 10% stake in the project.
Fortuna owns four operating mines in four different jurisdictions: Caylloma (silver-gold-zinc-lead mine) in Peru; Lindero (gold) in Argentina; San José (silver and gold) in Mexico; and Yaramoko (gold) in Burkina Faso.
Visit www.fortunasilver.com for more information.