Fortuna Silver Mines Inc. has announced that the Board of Directors of the company has decided to proceed with the construction of an opencast mine at the Séguéla gold Project in Côte d’Ivoire. The company is ready to immediately commence construction with long lead items procured, and development teams established on the ground.
In July 2021, Fortuna completed the acquisition of Roxgold Inc. which was advancing the Séguéla Project (see news release dated 2 July 2021).
Jorge A. Ganoza, President and CEO of Fortuna, said: “With a nine-year mine life in reserves, 130 000 oz of annual gold production in the initial six years, and compelling economics, Séguéla is planned to become our fifth operating mine with first gold by mid-2023.”
Ganoza added: “Fortuna is in a solid financial position to fund the remaining US$162 million initial capital investment and our teams in West Africa are primed and ready to start.
“Parallel to construction, the company plans to continue with well-funded drill programmes to test multiple remaining targets on the Séguéla property, where over the last 12 months, the exploration team has successfully delivered gold discoveries at the Koula, Sunbird and Gabbro North prospects.”
Paul Criddle, Chief Operating Officer – West Africa of Fortuna, commented: “The decision to commence construction of the still growing Séguéla Project, marks an exciting milestone for the company.”
Criddle concluded: “The team has further de-risked the project by advancing detailed design and commencing procurement of long lead items, including the SAG mill and the execution of critical path agreements including the EPC agreement with Lycopodium for the processing plant. This has allowed Séguéla´s critical path to be protected as well as managing the cost risk by locking in substantial components of the initial capex in fixed price contracts.
“Bulk earthworks contractors have been mobilised and will break ground at the plant site in October with the accommodation village expected to be completed in November of 2021.”
The updated Séguéla Project total initial capital investment is US$173.5 million. US$11.5 million of this amount has previously been approved by the Board for early works items. The anticipated construction schedule is approximately 20 months, with ramp-up to name plate capacity expected in 3Q23.
Read the article online at: https://www.globalminingreview.com/exploration-development/30092021/fortuna-to-construct-opencast-mine-at-sgula-gold-project/