Development Highlights:
Approximately US$64 million of the US$110.8 million capital estimate spent to date and the project remains on budget.
Project commissioning remains on target for Q2 2016.
Overall construction program approximately 75% complete and on schedule.
Bulk earthworks complete.
Tailings Storage Facility ("TSF") complete
1,237 metres of decline and lateral underground development completed against a plan of 972 metres.
Processing Facility approximately 80% complete and on schedule.
Since the last update (see Roxgold Press Release dated December 10, 2015), development of the Yaramoko Gold Project has advanced considerably with significant infrastructure packages now complete. Underground mine development rates are ahead of plan and the Project continues to track on time and on budget with the first gold pour remaining on schedule for next quarter.
Work progressed across the property with all contractors mobilized and established. In January, the Project personnel levels peaked at 750 people on site. At the end of January, the Company had spent approximately US$64 million and remains on target to complete the Project within the budget of US$110.8M.
Roxgold President & CEO, John Dorward states: "We are very pleased with the progress on the Project in recent months. With a number of important infrastructure works now complete, the team is focusing on underground development and the start of commissioning activities."
Bulk Earthworks
Bulk earthworks are complete and the TSF and the Water Storage Facility are being handed over to the operations group.
Mine Development
During the month of December 2015, the underground mine access infrastructure was completed with the Armtec tunnel installed and the boxcut backfilled.
Underground development has advanced well, with the underground contractor, African Underground Mining Services ("AUMS"), delivering several months of above plan development rates. Total development meterage stood at 1,237 metres as at the end of January against a planned level of 972 metres.
As at the end of January 2016, the ramp had advanced 610 metres from the portal and level development was advancing on four levels, namely the 5270, 5253, 5236 and 5219 levels.
Since the last update, the deposit has been cross-cut at the above mentioned four levels, exposing the 55 Zone vein. The Company is encouraged by what has been observed here with the orebody and thickness consistent with that of the block model. Initial chip sampling of the crosscuts indicate that ore grades are also consistent with expectations.
The vent raise contractor, Bauer Drilling, is on site and has completed the pilings for the first vent raise. Initial site works for the raise boring contractor, Murray & Roberts, are well advanced. All equipment associated with the final installation of the ventilation fans are on site.
Construction of the surface mine infrastructure, including workshops, offices and back-up power station remain on schedule. The surface settling ponds are complete and the recycling of underground water has commenced.
Roxgold’s management team continued to advance preparations for the operational phase. The recruitment of all department heads, senior technical and senior operational personnel is complete and significant progress has been made in recruiting the local workforce.
IT and communication systems’ installation has continued across site. Configuration of the business systems software (accounting and inventory modules) is ongoing and is expected to be finalized during Q1 2016.
The Environmental and Social Management System ("ESMS") has been developed and is being installed in advance of the Project becoming fully operational.
