Fortuna Silver Mines Inc. has provided an update on construction activities at its Séguéla gold Project, located in Côte d'Ivoire. In September of 2021, the company made a construction decision to proceed to build a 3750 tpd opencast mine at Séguéla, with first gold pour expected in mid-2023.
Paul Criddle, Chief Operating Officer -–West Africa, commented: “The Séguéla Project is advancing on schedule following the construction decision at the end of 3Q21.”
Criddle continued: “The project is successfully transitioning from detailed engineering design to construction and remains on budget and on schedule to pour gold by mid-2023.”
- The overall project is 32% complete as of 31 January 2022.
- Approximately US$48.9 million of the US$173.5 million initial capital budget accrued as of 31 December 2021.
- Approximately US$124.5 million committed.
- Major equipment packages secured.
- Major construction contracts executed.
- Tender process and selection of the preferred mining contractor completed.
- First gold pour remains on target for mid-2023.
The 156-person accommodation camp is complete and ready for occupancy. Initially, this camp will support the project's development and house the owner's and contractors' construction personnel with surplus personnel residing in the nearby town of Séguéla. The camp is approximately 2 km from the processing plant area and is complete with kitchen and mess, recreational facilities, water and sewage treatment plants, laundry services and high-speed internet. The camp management contract has been tendered and awarded to Allterrain Services.
De Simone was awarded the process plant bulk earthworks contract and activities are ongoing with excavation for ground improvement in the mill/carbon-in-leach circuit, thickener and crusher areas complete. Rock backfill in these areas is well advanced and on-track to be completed ahead of the mobilisation of the engineering procurement and construction contractor in March 2022.
Lycopodium was awarded the guaranteed maximum price contract for the engineering, procurement and construction of the gold processing facility. As of 31 December 2021 engineering activities were 55% complete, procurement activities 44% complete and construction activities are on-track to commence early 2Q22. Of note, the SAG mill purchase order has been placed and remains on-track to be delivered to site in 3Q22. Detailed engineering for the SAG mill is complete and manufacturing of core components such as shell, heads and trunnions and gear and pinion has commenced.
Site bulk earthworks
Contracts have been awarded for the site bulk earthworks contract for the construction of the tailings storage facility (TSF), water storage dam (WSD) and sediment control structure (SCS). Bush clearing and topsoil stripping of the TSF footprint has been completed. Bush clearing of the WSD commenced in early January and is on-track to be completed by the middle of 2Q22, ahead of the upcoming wet season and will be capable of storing raw water for the commissioning, ramp-up and operation of the processing plant. Procurement of materials required for the TSF, WSD and SCS construction is underway with the TSF high density polyethylene liner already secured and expected to be delivered to site by the end of 1Q22.
Contracts for the supply and installation of the 90 kV grid connection transmission line and 33 kV transmission line diversion have been awarded. Likewise, contracts for the supply and construction of the substation have been awarded. Delivery and installation of the transmission lines is expected to commence this month. Similarly, civil works for the substation are also expected to commence this month. Transformers are expected to be shipped to site by March 2022. Works is on-track to provide power to the site by the end of 4Q22 ahead of commissioning activities at the processing plant.
Contract negotiations with a preferred bidder are ongoing, targeting contract execution and the placement of orders for long lead equipment in March 2022.
As of 31 December 2021, US$124.5 million of the total approved budget of US$173.5 million, including US$8.9 million contingency, has been committed. Approximately US$108 million of total commitments to date include contracts for a guaranteed maximum price for $87 million, fixed price contract for US$7.5 million and earthworks bill of quantity/schedule of rates for US$13.5 million, mitigating risk to volatile market conditions and price escalations. Remaining commitments include the onboarding of key operational personnel, pre-production mining, equipment first fills and spare parts, mobile equipment and the implementation of livelihood restoration programmes.
Read the article online at: https://www.globalminingreview.com/mining/07022022/fortuna-provides-sgula-gold-project-construction-update/