Strong second quarter production results for Roxgold

President and CEO of Roxgold, John Dorward, commented: "Yaramoko has delivered yet another strong quarter, surpassing five million hours worked Lost Time Injury free and achieving a record quarterly processing throughput for the second consecutive quarter as a result of ongoing optimisation at the plant. With 76 280 oz of gold produced in the first half of 2018, we are well positioned to achieve the upper end of our 2018 guidance range to produce between 120 000 and 130 000 for the full year. Also during the quarter, we continued to make good progress on the construction at Bagassi South, our second high-grade underground gold mine, which continues to be on track for delivery of first ore expected in the fourth quarter later this year." 

Operating Highlights:

The company's gold production for the quarter was driven by sustained operating performance in both the mine and processing plant. The 55 Zone produced 86 831 t of ore at 12.96 g/t Au along with completing 1124 m of development. In 2Q18, approximately 80% of ore produced came from stoping activities and is a result of the extensive development that is currently taking place at Yaramoko, with four open stopes available at the end of the quarter. The plant processed a record 75 417 t at an average head grade of 14.42 g/t Au. Plant availability was 95.7% and overall recovery was excellent at 98.8% during the quarter. Importantly, the unit throughput rate at the plant has steadily increased over the last five quarters as a result of ongoing optimisation to be at 12.1% above nameplate capacity for 2Q18.  

In the second quarter, decline development reached the 4981 level, approximately 350 m below surface. Ore development commenced on the 4998 level and was completed on the 5015 level. The mine continues to be well positioned to meet future production requirements with developed reserves for stoping exceeding 18 months of planned stoping.

At the end of the quarter, ROM stocks of 45 877 t at 12.17 g/t Au had been established representing approximately two months of plant feed.

Bagassi South expansion project update

During the quarter, the company continued to advance the Bagassi South expansion project. Highlights from the second quarter include the following:

• Approval of the Bagassi South Mining decree by the Burkina Faso Council of Ministers.
• Development and construction progressing well with overall project completion currently at approximately 60%.
• Boxcut excavation and portal collar completed in early July allowing for the commencement of underground development.
• Construction of the haulage road, security building, fencing, settling pond, and TSF embankment raise has been completed.
• Engineering design, procurement and civils for the process plant expansion has been completed with Group 5 construction personnel ramping up numbers at site.
• Construction of the overhead power line to Bagassi South is currently in progress and is expected to be completed in early August.
• The secondary crusher has been manufactured and shipped.
• The processing plant tie-ins are expected to occur largely within planned maintenance stoppages in 3Q18 and 4Q18.
• Construction of the ventilation shaft is expected to commence in the latter part of 3Q18.
• Overall project completion is expected in the latter part of 4Q18.

Exploration update

According to Roxgold, 5074 m were drilled for regional exploration during 2Q18. The 1Q18 Phase 1 drilling programme at Haho to test previously outlined anomalies was completed in April. 

Drilling activities reportedly resumed on the 55 Zone in 2Q18.  An 11 000 m underground diamond drilling in-fill programme is currently in progress at the 55 Zone between the 5151 and 4900 levels, with a single rig from level 5066. In the second quarter of 2018, 3900 m were completed. This drilling programme is planned to infill to an approximate 25 m by 25 m spacing and will continue into 3Q18.

Additionally, a 15 000 m surface diamond drilling programme targeting the eastern and western boundaries of the deeper 55 Zone resource began in 2Q18.

Drilling activity also resumed at Bagassi South. The programme at Bagassi South focused on extending the QV1 western shoot and upgrading inferred resources on the QV1 and QV Prime structures. Drilling to the end of quarter had extended the QV1 western shoot 75 m down plunge with complete assays expected in 3Q18. 

Auger drilling continued during 2Q18 on the Houko and Yaramoko concessions. Auger programmes on the Houko grid located west of the 55 Zone and two additional grids targeting the western contact of the Tarkwaian basin and the Boni Shear structure were completed. An additional follow-up auger grid was initiated on the Kaho granite located on the southern part of the Yaramoko concession. 

The programme commenced in 2Q18 and was suspended in late June due to the rainy season. A total of approximately 15 000 m of Auger drilling has been completed thus far in 2018 and it is anticipated that this programme will generate a number of drill targets for testing in 4Q18.