The West Australian January 31, 2013The West Australian ©...

The West Australian January 31, 2013


The West Australian © Drilling at the Banfora gold project.




UPDATE 1.55pm: Gryphon Minerals has put a $200 million price tag on its Banfora gold project in Burkina Faso.

A bankable feasibility study for the project envisages an open pit operation producing 151,000 ounces of gold a year utilising a 2mtpa CIL processing plant, with scope for upgrades to more than 4mtpa.

Under a base level scenario of a gold price of $US1300 an ounce, Banfora would have a net present value (undiscounted) of $US205 million with an internal rate of return of 17 per cent with a payback period of 2.7 years.

The study predicts a 15-month construction period with first gold slated for the fourth quarter of 2014.

Banfora hosts a maiden ore reserve of 1.05moz and mineral resource estimate of 4.9moz.

Average cash cost for the first five years of operation is estimated at $US734 ($A706) an ounce.

Managing director Steve Parsons said the study was a significant step in Gryphon's plans to become a gold producer.

"Gryphon will continue to work closely with all stakeholders, including the Burkina Faso Government and local community, as it focuses on full funding and development of the Banfora gold project and obtains all the necessary approvals to commence construction over the coming months," he said.

Mr Parsons said the project had considerable potential for resource upgrades which would further boost its economic viability.