A Definitive Feasibility Study (DFS) is expected to commerce for Papillion Resources’ Fekola gold project in Mali this coming December quarter.
This was announced by the Australian Perth-based company of the proposed US$292m mine following favourable prefeasibility outcomes.
Papillon MD, Mark Connelly, was speaking at the first day of the 2013 Paydirt Africa Down Under conference in Perth. He said all key milestones for the mine had been achieved to date within the prescribed timetables and the focus would turn next quarter to the key DFS work and exploratory project.
“Our approach to Fekola is aggressive development with a view to rapidly advancing it to production. The prefeasibility study satisfied us that Fekola is a very robust technical and economic mine and particularly in this environment, has a very low all in cash cost of around US$725 per ounce – close to half the current gold price.
“Fekola will be a mine with very strong cash margins across a range of gold prices.”
A mining licence for Fekola is currently in progress. The mine has a proposed open pit output of 300 000 ounces of gold per year over a nine year mine life with a Measured and Indicated 4.21 million ounce resources at 2.38 grams per tonne gold resource – with a resource update imminent.
The prefeasibility study defined average pre-tax annual operating cash flow of around US$130 million at a gold price of US$1 100 an ounce via the project’s 4 Mtpa processing facility.
Papillon has planned a 20 000 metre drilling programme commencing towards the end of this year to further add to its Mali gold resource inventory.
Mali, West Africa is third largest gold area in Africa.
Paydirt 2013 Africa Down Under Conference is Australia’s largest mining conference, and kicked off on Wednesday, in Perth, Australia. A showcase for the $40 billion investment to date by Australian mining companies, explorers and suppliers, in co-developing Africa’s vast mineral wealth and its mining industry – and largest gathering in the world of Federal and African resources ministers and business heads outside of the African continent – the three day conference runs over two hotel venues in the Perth CBD.
The intense Conference programme, which has attracted at least three Federal Ministers and up to 16 African mining ministers, including prominent South African Minister, Susan Shabangu.