RESOLUTE Mining said it had extended the life of its Mako gold mine in Senegal by two years to 2027 following an extension exploration drilling programme.
The mine will produce a total of 1.24 million ounces of gold over its current nine year life compared to the 890,000 oz over the seven years outlined in its original plan. For Resolute, this means production will be 140,000 oz a year for the next five years. The average all-in sustaining cost over the remainder of the mine life will be $900/oz.
There was potential for additional life of mine extensions at Mako as a result of ongoing regional exploration, the firm said. “Mako has proved to be an outstanding Resolute gold mine,” said John Welborn, CEO of Resolute Mining in a statement.
“This initial extension of the mine life at Mako will be further reinforced by our investment in the significant untested exploration potential of the region,” he said.
Resolute bought Mako gold mine as part of the $274m cash and shares acquisition of Toro Gold, about 12 months ago. The mine produced 42,186 oz of gold in Resolute’s March quarter, about 38% of total production. In April, Resolute maintained its previous full year production and cost guidance of 430,000 oz at an all-in sustaining cost of $980/oz.
In an interview with Miningmx in June, Welborn said the acquisition of Mako had helped the company streamline its asset portfolio. Therefore, the firm hoped to divest of its 80,000 to 100,000 oz/year Bibiani mine in Ghana later this year.
