Last year was a transformative year for Roxgold, says John Dorward, president and CEO of Roxgold Inc. (TSX:ROXG), a Canadian-based gold mining company with assets in West Africa.
The company acquired its second project, Séguéla in Côte d’Ivoire, while reporting record production of 142,204 ounces of gold at the Yaramoko Gold Mine, located in Burkina Faso. This production allows the company to generate significant amounts of free cashflow, ending the year with approximately US$42-million in cash.
Séguéla has been an exceptional acquisition for the company and has the potential to significantly impact the production profile and project pipeline of the company, comments Mr. Dorward.
“When we acquired the project last year, we recognized that it was a very attractive portfolio of properties with highly prospective early and advanced stage opportunities. However, since getting our boots on – and our drills in – the ground, we have been able to quickly grow our resource base and gain an understanding of the upside potential of the project. We will be releasing a PEA on Séguéla in early Q2 of this year, which will allow us to communicate to the market our vision of the project and the potential for it to add value to Roxgold as a company,” adds Mr. Dorward.
Africa is a challenging environment for mining companies. In some jurisdictions, political instability and security threats have tended to scare off investors who believe the risks are too high. But it’s a perception that should not be applied to the continent as a whole, says Mr. Dorward. Yaramoko is located in western Burkina Faso, which is considered more secure compared to the remote east and northern regions.
“Côte d’Ivoire is turning into a top-tier global mining district, and we believe Burkina Faso remains one of the world’s most mining-friendly jurisdictions,” says Mr. Dorward. “For example, Yaramoko was in production only five years after its first discovery hole. If you look at other mine-friendly jurisdictions like Canada or Nevada, you can expect a multi-decade timeline on your project when you account for the permitting process.
“But we continue to work with the government, our communities and our employees to ensure we have a safe working environment. Safety starts with the people, and we believe that security starts with your relationship with the communities in which you operate,” he adds.
Another potential value lever for Roxgold is the recently discovered Boussoura project located at the southern end of the prolific Houndé Greenstone Belt. Two drill rigs are currently working at Boussoura with the ultimate goal of delivering Roxgold’s third project.
For more information, visit roxgold.com
Produced by Randall Anthony Communications. The Globe’s editorial department was not involved in its creation.