Mine closure was originally scheduled for 2013 but retreatment of the TSF material, mining of the Domba satellite pit and an agreement to acquire Birimian Limited’s Ntiola and Viper targets, have extended the life of mine to 2020.
Achieved 2017
Produced 70 019oz from ongoing TSF retreatment and Domba satellite pit. Ntiola and Viper feasibility projects completed and included in 2018 mine plan.
Targeted 2018
Complete permitting process for Ntiola and Viper deposits and ensure operational readiness to start mining. Produce 95 000oz from open pit material and TSF retreatment.
Morila reserves currently comprise TSF material of 10.3Mt at 0.54g/t for 179koz and the remaining ore from the Domba satellite pit of 270kt at 1.47g/t for 13koz, which is currently scheduled to be depleted in Q1 2018. The TSF retreatment is forecast to continue until Q1 2020.
After agreement was reached with Birimian Limited, a full feasibility study and environmental impact assessment was completed on the near mine deposits of Ntiola and Viper. The geological studies returned a total reserveof 655kt at a grade of 1.96g/t for 41koz at Ntiola and 589kt at a grade of 1.49g/t for 30koz at Viper. Exploitation of these two deposits is still subject to the transfer of the relevant portions of the permits to Morila. The related documentation has been filed with the authorities.
Domba material was fed through the oxide crusher while the hard rock crushing circuit was placed under care and maintenance awaiting the Ntiola fresh ore feed expected in the second quarter of 2018.
In summary, Ntiola has a higher grade than I initially expected, although at a much lower tonnage. BUT, this is for the reserve, not resource.
I would suspect there is potential for the Ntiola reserve to increase, depending on the viability of the surrounding resources being added to the mine. Having said that, the potential for any inferred or indicated resource to be included in the mine would have been addressed in the feasibility study I would have thought, so I'm in two minds as to whether or not it will in-fact increase...
Although, seeing as the TSF is forecast to be treated until Q1 2020, I would suspect Randgold would be keen to extract more gold from Ntiola and Viper than to not. So if they can include more resources, I suspect they'll work hard to do so.
The other note is that Ntiola ore is expected to be fed into the hard rock crushing circuit in the next 1 to 64 days.
Expect some cash inflow over the next 2-3 quarters. We should be getting ~$5 Million(AUD) from the gold plus the $1 mil (US/AUD??) payment.
Pretty good position to be in, no CR for the next 12 months.
BGS Price at posting:
51.0¢ Sentiment: Buy Disclosure: Held
