The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

SEMAFO to Augment Mana Plant Capacity

Throughput to Attain Up to 8,000 Tonnes Per Day in Blended Ore

Tuesday, February 08, 2011

SEMAFO to Augment Mana Plant Capacity10:28 EST Tuesday, February 08, 2011MONTREAL, QUEBEC--(Marketwire - Feb. 8, 2011) - SEMAFO (TSX:SMF) today announced a fourth phase of plant expansion at its Mana Mine in Burkina Faso. As a result, plant capacity is expected to attain up to 7,200 tonnes per day ("tpd") in bedrock and up to 8,000 tpd in blended ore. Completion of phase four will increase throughput by 1,200 tpd, representing an additional 26,000 to 30,000 ounces of gold annually when compared to current plant capacity. The primary changes to the processing plant include: Addition of a pebble crusher Utilization of the third ball mill, previously used as back-up Addition of two CIL tanks Addition of a thickener Additional gensets Critical spares Some equipment capacity upgrades The budget for this fourth phase of plant expansion is $25 million, including $18 million for enhancements to the plant and $7 million for additional mining equipment. "This fourth phase of plant expansion is scheduled for commissioning by year-end and has an estimated payback period of less than 16 months," said Benoit Desormeaux, SEMAFO's Executive Vice-President and Chief Operating Officer. "We expect to carry out the plant modifications with little or no disruption to our day-to-day operations as was the case with our recently-completed plant expansion project, which we accomplished on time and on budget."SEMAFO launched this new phase of plant expansion in consideration of the potential underground operation, continued growth in reserves and resources in the vicinity of the plant, as well as the excellent exploration results suggestive of the surrounding area's superior potential.In 2010 the Mana Mine produced 179,700 ounces of gold. Production guidance for 2011 has been established at between 170,000 and 190,000 ounces of gold. Mana's 2010 production number is preliminary and subject to final adjustment. About SEMAFO SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Company currently operates three gold mines: the Mana Mine in Burkina Faso, the Samira Hill Mine in Niger and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner to become a major player in its geographical area of interest. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities in West Africa.Caution Concerning Forward-looking Statements This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include words or expressions such as "to augment", "to attain", "expected", "up to", "will", "increase", "scheduled", "estimated", "carry out", "growth", "evolve", "become", "pursuing" and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include the ability for throughput to attain up to 8,000 tonnes per day in blended ore, the ability of plant capacity to attain up to 7,200 tonnes per day in bedrock and up to 8,000 tonnes per day in blended ore, the ability of phase four to increase throughput by 1,200 tonnes per day or 26,000 to 30,000 ounces of gold annually when compared to current plant capacity, the ability to commission the plant expansion by year-end, the ability to have a payback period of less than 16 months, the ability to carry out plant modifications with little or no disruption to our day-to-day operations, on time and on budget, the ability to execute on our strategic focus, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resources, delays, political and social stability in Africa (including our ability to maintain or renew licenses and permits) and other risks described in SEMAFO's documents filed with Canadian securities regulatory authorities. You can find further information with respect to these and other risks in SEMAFO's 2009 Annual MD&A, as updated by our 2010 First Quarter MD&A, 2010 Second Quarter MD&A and 2010 Third Quarter MD&A, and other filings made with Canadian securities regulatory authorities and available at www.sedar.com. These documents are also available on our website at www.semafo.com. SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.FOR FURTHER INFORMATION PLEASE CONTACT: Benoit La Salle, CASEMAFOPresident & CEO514-744-4408Toll-Free:1-888-744-4408blasalle@semafo.comORCommunicationsSofia St Laurent514-744-4408Toll-Free:1-888-744-4408sstlaurent@semafo.com