It would be nice to see some of this in EET share price ... a big gap here today ...
Samira Hill Performs at a Cash Operating Cost of US$ 192/oz and a Total Cash Cost of US$ 225/oz
MONTREAL, March 17 /CNW Telbec/ - SEMAFO (TSX - SMF) is pleased to
announce its first financial results of the Samira Hill Gold Mine operation
for the last quarter of 2004 (all currency figures are in U.S. dollars). The
Samira gold mine, inaugurated on October 5th, 2004, processed, during the last
quarter of 2004, a total of 398,411 tonnes of ore at an average grade of
2.03 g/t, leading to a total gold production of 21,521 ounces, in addition to
the 4,234 ounces of gold in the circuit at the end of December 2004. A total
of 1,325,362 tonnes of waste was extracted at an average strip ratio of 3.3:1.
Gold sales for the last quarter of 2004 totalled $7,076,691. During this
period Semafo sold a total of 19,138 ounces of gold at an average price of
$370 per ounce which was all delivered against forward sales contracts.
The cash operating cost per ounce at the Samira Mine for the last quarter
of 2004 was $192 on produced ounces and $200 on sold ounces. The total cash
cost of the operation was $225 per ounce. These achievements are mainly
attributable to the high percentage of throughputs of oxide ore at an average
grade of 2.03 g/t and are consistent with the initial feasibility estimates.
In addition, the plant operation witnessed a considerable reduction in cost
associated to significantly less consumables (cyanide, lime, and peroxide).
The Samira Hill Gold Mine statistics continue to impress the management team
as results from the last quarter of operation fall on target with the
estimates from the feasibility study.
Benoit Lasalle, Semafo's President and CEO, commented on the successful
start-up: "We are delighted that the commencement of the mining and milling
operations have gone according to schedule. We have become Niger's first gold
producer and the low operating cost of the operations will ensure our success
for many years."
The proven and probable reserves as of December 31, 2004 stand at
9,637,200 tonnes at 2.21 g/t Au containing 591,700 ounces of gold, using a
gold price of US$ 353 per ounce. The total measured and indicated mineral
resources stand at 25,110,400 tonnes at 1.85 g/t Au containing 1,495,000
ounces of gold. The Samira Hill Gold Mine is scheduled to produce 618,000
ounces of gold in its 6.3 years of operation as estimated by Resources Service
Group Pty Ltd ("RSG") of Perth Australia.
The Samira Deposit is believed to be one of significant gold deposits
within what is now recognized as an emerging gold belt known as the "Samira
Horizon". Semafo has reinforced its position along this belt and has allocated
a $500,000 exploration budget to further increase its resource portfolio.
The Samira Hill Gold Mine is Semafo's second operating mine following the
successful construction and operation of the Kiniero Mine in Guinea. The
Samira Hill Gold Mine is owned 40% by Semafo, 40% by Etruscan and 20% by the
State of Niger. However; the cash flow attributable to Semafo represents 80%
of the free operating cash flow from the mine until complete repayment of
Semafo's investment in the operating company.
The common shares of Semafo are traded on The Toronto Stock Exchange
under the symbol "SMF".
Semafo is a mining company whose mission is to explore, develop and
minemajor gold deposits in West Africa. Semafo currently operates the
Kiniero mine in Guinea and the Samira Hill mine in Niger
More extensive information on Semafo can be found on our home page at
semafo.com
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS
RELEASE |
