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Syama: latest DFS shows significant fall in All-In Sustaining Cost

Published by , Assistant Editor
Global Mining Review,

Australian gold producer Resolute Mining Ltd (Resolute) has provided an update to the June 2016 Syama underground definitive feasibility study (DFS) which has demonstrated a significant reduction in the Life of Mine (LOM) All-In Sustaining Cost (AISC) to US$746/oz, from US$881/oz in 2016. This material cost reduction is accompanied and assisted by a 38% increase in Underground Ore Reserves to 3.0 million oz of gold.

The DFS update presents the results of an ongoing effort by Resolute to critically examine and pursue improvements in all aspects of our flagship operation, the Syama gold mine (Syama) in southern Mali (Africa).

According to Resolute, a key focus has been the redesign and rescheduling of the underground mine following the 39% increase in Mineral Resources previously announced in October 2017.

The adoption of autonomous mining is anticipated to result in substantially lower average mining costs, while improvements to site power generation facilities will deliver significant reductions in processing costs.

Managing Director and CEO of Resolute, John Welborn, commented: “Our ambition at Syama is to transform this world gold class deposit into a world class gold mine. The updated DFS numbers capture the progress we have made in exploration, automation, and power, and confirm Resolute is transforming Syama into a robust, long life, low cost mine. We are developing a new underground mine at Syama and are on track to commence sub-level caving in December 2018.”

“The sub-level cave mine plan at Syama lends itself to automation. Our partnership with Sandvik to deliver autonomous haulage and trucking enables major productivity and cost improvements over the Original DFS. An upgrade of the Syama power station supports a further cost reduction in sulfide processing. Collectively, these improvements support life of mine production at an All-In Sustaining Cost of US$746/oz, a material improvement on the original mine design.”

“Reducing operating costs and increasing production at Syama is consistent with our journey to build an operation that utilises best-in-class technology while maintaining flexibility to incorporate further advances in mining and processing.”

Syama Underground Mineral Resource and Reserve Estimates

A new Syama Underground Probable Reserve has been calculated as 35.2 million t at 2.7 g/t for 3.0 million oz. This represents a material increase on the previous Probable Reserve of 23.9 million t @ 2.8g/t for 2.2 million oz.

The process for converting the October 2017 Resource estimate into the updated Reserve has been extensive and rigorous. The key steps have comprised:

  • the establishment of a new mine design;
  • the completion of a 3D cave geotechnical model;
  • the development of a revised cost model; and
  • the completion of a revised mine schedule. The capital and operating development cost model is based on the incumbent contractor rates for an additional three years to June 2022, with owner operating costs being developed from first principles for ore production.

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African mining news