Construction of facilities at the Bogosu gold project in Ghana, West Africa, is on schedule for a plant commissioning in September, shareholders of Sikaman Gold Resources (TSE) were told at the company’s annual meeting. President Thomas Griffis said the US$86-million project is fully financed. A US$10-million contingency financing is also in place. Open pit reserves (all classes) total 19.8 million tons grading 0.1 oz. gold per ton. Projected production during the first three years is 120,000 oz. per year at an average cost of US$130 per oz.
Sikaman has a 14% interest in the project. (The majority owner of the project is Billiton, with a 62.5% interest.) Griffis said the company intends to exercise its option to acquire an additional 11.5% interest in the project, the money to come from cash flow provided by the Bogosu project and two others (Kwabeng and Snow Lake) it plans to place into production.
The Kwabeng placer gold project, also in Ghana, is on schedule for plant commissioning in August. Capital costs for the project are estimated to total US$7.7 million. It is forecast that a single wash plant will produce an estimated 20,500 oz. per year during the initial three years at less than US$130 per oz. A second wash plant is being considered.
At Snow Lake in Manitoba, Sikaman is in the midst of negotiations to secure financing to place its tailings project into production. The projected rate of production is 45,000 oz. per year at US$96 per oz. (The projected life of the project is 26 months.)
The company will employ its Redox Process, which was tested at Sudbury, Ont., on the Snow Lake tailings. A feasibility study projects a recovery rate in excess of 90%. The process is described as a pretreatment step in the recovery of gold from refractory sulphide concentrate. Nitric acid is used to oxidize the sulphide minerals which contain the entrapped gold.
Other areas where the company is active include Nevada, where a joint venture partner is being sought for development of a wollastonite deposit.
Be the first to comment on "Sikaman, partners near production at Ghana project"