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Press release from Marketwire

SEMAFO: Siou Adds 769,300 Ounces at 4.94 g/t Au to Mana's Gold Reserves, Up 28% to 2.4 Million Ounces

Mana Mine Plan Indicates Increase in Production, Lower Total Cash Cost SEMAFO to Host Conference Call Today at 11:00 (EDT)

Thursday, September 19, 2013

SEMAFO: Siou Adds 769,300 Ounces at 4.94 g/t Au to Mana's Gold Reserves, Up 28% to 2.4 Million Ounces

08:27 EDT Thursday, September 19, 2013

MONTREAL, QUEBEC--(Marketwired - Sept. 19, 2013) - SEMAFO Inc. (TSX:SMF)(OMX:SMF) today announced Mana's mineral reserves and resources estimation as at June 30, 2013. Owing to Siou's proven and probable reserves of 4,842,900 tonnes at an average diluted grade of 4.94 g/t Au for 769,300 ounces, Mana's gold reserves increased 28% to 2.4 million ounces, net of depletion. Mana's measured and indicated resources total 2.4 million ounces at an average grade of 2.12 g/t Au. Siou continues to demonstrate its potential with inferred resources of 6,227,600 tonnes at 3.97 g/t Au for 795,300 ounces as at June 30, 2013. The Siou mineralization remains open laterally and at-depth. Reserves and resources have been calculated using a gold price of $1,100 and $1,400 per ounce, respectively. All dollar amounts are in US dollars unless otherwise specified.

"We are proud that SEMAFO is scheduled to bring the high-grade Siou deposit to production within two years of its discovery. We are progressing well towards production at Siou, with mining activities anticipated for the second half of 2014," said Benoit Desormeaux, SEMAFO's President and Chief Executive Officer. "The Siou deposit brings quality ounces to Mana's reserves by augmenting the average head grade at the processing plant, which, in keeping with our corporate strategy, will ultimately increase production and reduce our total cash cost per ounce."

Reserves & Resources - At a Glance

  • Siou proven and probable mineral reserves, to a depth of approximately 180 meters, total 769,300 ounces at 4.94 g/t Au
  • Siou inferred mineral resources of 795,300 ounces at 3.97 g/t Au
  • Proven and probable reserves at Mana of 2,389,300 ounces
  • Measured and indicated resources at Mana totalling 2,446,300 ounces
  • 20% increase in the average mineral reserve grade at Mana to 2.77 g/t Au
  • Mining and production activities at Siou are now expected to begin in the second half of 2014

MANA PROPERTY - MINERAL RESERVES AND RESOURCES (As at June 30, 2013) (1, 2, 3)

June 30, 2013
PROVEN RESERVES PROBABLE RESERVES TOTAL RESERVES*
DEPOSITS Tonnes Grade
(g/t Au)
Ounces Tonnes Grade
(g/t Au)
Ounces Tonnes Grade
(g/t Au)
Ounces
Wona-Kona 9,151,800 2.25 661,600 9,680,400 2.13 662,900 18,832,200 2.19 1,324,500
Nyafé 262,600 5.85 49,400 4,100 5.02 700 266,700 5.84 50,100
Fofina 1,742,300 2.53 141,600 1,014,800 2.94 96,100 2,757,100 2.68 237,700
Siou 3,394,400 5.55 605,500 1,448,500 3.52 163,800 4,842,900 4.94 769,300
ROM Pad 131,000 1.83 7,700 - - - 131,000 1.83 7,700
TOTAL RESERVES MANA 14,682,100 3.11 1,465,800 12,147,800 2.36 923,500 26,829,900 2.77 2,389,300

*Please refer to Appendix 1 for information pertaining to the parameters used in the estimation of Mana's mineral reserves.

June 30, 2013
MEASURED INDICATED TOTAL RESOURCES
DEPOSITS Tonnes Grade
(g/t Au)
Ounces Tonnes Grade
(g/t Au)
Ounces Tonnes Grade
(g/t Au)
Ounces
Wona-Kona 939,500 2.63 79,400 16,111,300 2.90 1,499,900 17,050,800 2.88 1,579,300
Nyafé 300,200 5.60 54,100 229,500 5.84 43,100 529,700 5.71 97,200
Fofina 519,400 1.92 32,000 555,700 4.04 72,200 1,075,100 3.01 104,200
Yaho 4,654,400 1.05 157,200 9,895,200 0.99 316,200 14,549,600 1.01 473,400
Filon 67 26,100 2.72 2,300 8,900 3.59 1,000 35,000 2.93 3,300
Fobiri 468,900 1.80 27,100 114,200 1.52 5,600 583,100 1.74 32,700
Siou 241,200 1.22 9,500 1,832,100 2.49 146,700 2,073,300 2.34 156,200
TOTAL M&I MANA 7,149,700 1.57 361,600 28,746,900 2.26 2,084,700 35,896,600 2.12 2,446,300
June 30, 2013
INFERRED
DEPOSITS Tonnes Grade
(g/t Au)
Ounces
Wona-Kona 4,470,800 2.79 401,200
Nyafé 150,800 5.86 28,400
Fofina 210,500 5.36 36,300
Yaho 470,800 1.45 22,000
Filion 67 5,500 6.32 1,100
Fobiri 577,600 1.39 25,800
Maoula 2,628,200 1.62 137,100
Siou 6,227,600 3.97 795,300
TOTAL INFERRED MANA 14,741,800 3.05 1,447,200
  1. The Corporation indirectly owns 90% of SEMAFO Burkina, which directly holds the interest in the Mana Mine reserves and resources.
  2. Mineral reserves and resources were estimated using a gold price of US$1,100 and US$1,400 per ounce respectively.
  3. Rounding of numbers to the nearest hundreds of tonnes may present slight differences in the figures representing the ounces contained.

Mining Plan

The following life-of-mine production simulation is based on a technical report to be prepared in accordance with National Instrument 43-101, which will be filed within 45 days of this press release. Production from Siou is expected to begin gradually in the second half of 2014 with full production in 2015, when it is anticipated that Mana's consolidated production will increase significantly. Production from the Fofina deposit is scheduled to commence in 2016. Additional information is provided in the following table.

LIFE OF MINE SIMULATION

Year 1 Year 2 Year 3 Remaining Life of Mine Total LOM (4)
(1-10 Years)
Siou
Waste (t) 2,766,000 11,942,000 14,250,000 28,709,000 57,667,000
Pre-stripping waste (t) 2,925,000 9,416,000 3,411,000 17,657,000 33,409,000
Ore processed (t) 187,000 807,000 962,000 2,887,000 4,843,000
Head grade (g/t) 4.75 6.56 5.45 4.33 4.94
Recovery (%) 96% 96% 96% 96% 96%
Gold recovered (oz) 27,429 163,457 161,774 385,856 738,516
Cash operating cost per tonne(1) ($) 46 47 56 50 50
Total cash cost per ounce(2) ($) 364 282 383 421 380
Pre-stripping costs ($) 3,752,000 14,804,000 4,424,000 32,939,000 55,919,000
Total strip ratio 18.8
Wona-Kona
Waste (t) 20,524,000 11,800,000 12,054,000 106,473,000 150,851,000
Pre-stripping waste (t) 10,753,000 5,000,000 4,433,000 31,788,000 51,974,000
Ore processed (t) 2,332,000 1,611,000 1,097,000 13,792,000 18,832,000
Head grade (g/t) 2.09 1.96 2.10 2.24 2.19
Recovery (%) 82% 81% 81% 81% 81%
Gold recovered (oz) 128,723 82,124 60,194 808,294 1,079,335
Cash operating cost per tonne(1) ($) 45 43 42 44 44
Total cash cost per ounce(2) ($) 866 895 821 795 813
Pre-stripping costs ($) 19,758,000 9,794,000 7,780,000 58,191,000 95,523,000
Total strip ratio 10.8
Fofina
Waste (t) - - 2,170,000 18,224,000 20,394,000
Pre-stripping waste (t) - - 597,000 3,123,000 3,720,000
Ore processed (t) - - 424,000 2,334,000 2,758,000
Head grade (g/t) - - 3.55 2.52 2.68
Recovery (%) - - 91% 87% 88%
Gold recovered (oz) - - 43,812 164,674 208,486
Cash operating cost per tonne(1) ($) - - 29 33 32
Total cash cost per ounce(2) ($) - - 331 518 478
Pre-stripping costs ($) - - 731,000 3,824,000 4,555,000
Total strip ratio 8.7
Others (Nyafé + ROM Pad)
Gold recovered - 3,000 3,000 24,000 30,000
Mana Consolidated
Waste (t) 23,290,000 23,742,000 28,474,000 156,768,000 232,275,000
Pre-stripping waste (t) 13,678,000 14,416,000 8,441,000 52,568,000 89,103,000
Ore processed (t) 2,519,000 2,485,000 2,547,000 19,279,000 26,830,000
Head grade (g/t) 2.29 3.45 3.60 2.64 2.77
Recovery (%) 84% 90% 91% 84% 86%
Gold recovered (oz) 156,152 248,581 268,780 1,382,824 2,056,337
Cash operating cost per tonne(1) ($) 45 44 45 43 44
Total cash cost per ounce(2) ($) 778 490 476 655 621
Pre-stripping costs ($) 23,510,000 24,598,000 12,935,000 94,954,000 155,997,000
Sustaining capital ($) 15,000,000 15,000,000 15,000,000 94,157,830 139,157,830
All-in sustaining cost (3) ($/oz) 1,025 649 580 792 765
  1. Cash operating cost per tonne is a non-IFRS financial performance measure with no standard definition under IFRS and is calculated using tonnes processed.
  2. Total cash cost per ounce is a non-IFRS financial performance measure with no standard definition under IFRS and represents the mining operation expenses and government royalties per ounce sold.
  3. All-in sustaining cost is a non-IFRS financial performance measure with no standard definition under IFRS and represents the total cash cost, plus sustainable capital expenditures and pre-stripping costs per ounce.
  4. LOM: Life of Mine

Summary of Siou Capital Expenditures

Owing to Siou's proximity to the Mana processing plant, capital expenditures will be minimal as there is no need for the construction of a new plant, tailings dam, camp and other significant ancillaries. Siou's estimated 2014 capitalized expenditures of $25 million include minor infrastructure, mining and auxiliary equipment, crop compensation and road construction costs. Production simulations also take into consideration the use of local contractors for the transportation of ore from Siou and Fofina to the Mana processing plant over distances of approximately 15 and 17 kilometers, respectively.

During the fourth quarter of 2013, four to five auger drills are scheduled to continue exploration activities in the Siou vicinity.

The database for the estimation of the reserves and resources comprised a total of 898,600 meters of drilling (6,470 core and reverse-circulation drill holes) and 667,000 assays.

SEMAFO's senior management will host a conference call to discuss the results of Mana's updated reserves and resources estimate and the mine plan.

Conference Call: Date: Thursday, September 19, 2013
Time: 11:00 AM (EDT)
Tel. local & overseas: +1 (416) 981 9000
Tel. North America: 1 (800) 760 5095

The conference call will be archived for replay until October 9, 2013. To access the archived conference call, please dial 1 (800) 558-5253 and enter pass code 21674000 followed by the number sign (#).

A live audio webcast of the conference will be accessible through SEMAFO's website at www.semafo.com. The webcast will be available for replay for a period for 30 days.

Mineral reserves and resources were estimated as at June 30, 2013 in accordance with the definitions adopted by the Canadian Institute of Mining Metallurgy and Petroleum and incorporate into National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101). Mineral reserves and resources estimates for the Mana Mine were carried out internally under the supervision of Michel Crevier P.Geo MScA, Vice-President Exploration and Mine Geology and SEMAFO's Qualified Person who has reviewed this press release for accuracy and compliance.

About SEMAFO

SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation currently operates two gold mines: the Mana Mine in Burkina Faso and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner through the responsible development of its high potential Mana property. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.

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 "indicates", "increase", "scheduled", "progressing", "anticipated", "strategy", "expected", "will", "estimated", "committed", "evolve", "become", "pursuing", "growth", "opportunities" 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 to increase production and lower total cash cost, the ability to bring the Siou deposit to production within two years of its discovery, the ability to begin mining activities at Siou in the second half of 2014, 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 2012 Annual MD&A, as updated in SEMAFO's 2013 First Quarter MD&A and 2013 Second 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.

The above information has been made public in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act.

Figure 1: http://media3.marketwire.com/docs/899258.pdf.

Appendix 1

Parameters for Reserve Pit Optimization
(As at June 30, 2013)
ZONE/PARAMETER WONA KONA NYAFÉ FOFINA SIOU
Max. Slope Angle Oxide 34º 36º 36º 34º
Max. Slope Angle Transitional 34º - 36º 34º
Max. Slope Angle Sulphide 52º 52º 52º 52º
Mining Ore Oxide ($/t) 1.51 4.50* 4.50* 5.76*
Mining Ore Transitional ($/t) 2.08 5.06* 5.06* 6.27*
Mining Ore Sulphide ($/t) 2.59 5.53* 5.53* 6.74*
Mining Waste Oxide ($/t) 1.43 1.22 1.22 1.28
Mining Waste Transitional ($/t) 1.96 1.84 1.84 1.77
Mining Waste Sulphide ($/t) 2.48 2.35 2.35 2.35
Mining Dilution Oxide 10 % 15 % 15 % 10 %
Mining Dilution Transitional 10 % - 20 % 10 %
Mining Dilution Sulphide 10 % 15 % 20 % 10 %
Mining Metal Recovery 97.5 % 97.5 % 97.5 % 97.5 %
On-site General & Admin. (Average) ($/t) 3.92 3.92 3.92 3.92
Processing Metal Recovery Oxide 94 % 87 % 92 % 96 %
Processing Metal Recovery Transitional 87 % - 74 % 96 %
Processing Metal Recovery Sulphide 81 % 29 % 26 % 96 %
Grade Control ($/t) 0.25 0.75 0.75 0.75
Rehabilitation ($/t) 0.10 0.10 0.10 0.10
Milling Ore Oxide ($/t) 13.82 13.82 13.82 13.82
Milling Ore Transitional ($/t) 16.05 16.05 16.05 16.05
Milling Ore Sulphide ($/t) 17.52 17.52 17.52 17.52
All amounts in US dollars.
*Includes haulage costs to the plant.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
SEMAFO
Robert LaValliere
Vice-President, Investor Relations
Cell: +1 (514) 240 2780
robert.lavalliere@semafo.com


Sofia St Laurent
Communications & Investor Relations
Tel. local & overseas: +1 (514) 744 4408
North America Toll-Free: 1 (888) 744 4408
sofia.stlaurent@semafo.com
www.semafo.com


Maria Bang
Brunswick Group Stockholm
+46 (8) 410 32 189
mbang@brunswickgroup.com

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