The Scandinavian-based Ethiopian gold exploration and mining company has today released an improved gold production mine plan for its first 12 months of mining operations in the Eastern and Western winzes (tunnels). The updated plan improves the current production schedule and will have a significant effect on the initial revenue and EBITDA from the Segele mine. Most of the improvements will come in the first part of production.
Table 1: Comparison to previously released revenue and EBITDA estimates
| Updated version | Previous version* | Difference |
12 months revenue** | 39,0 mUSD | 29,4 mUSD | 9,6 mUSD |
12 months EBITDA | 28,8 mUSD | 20,0 mUSD | 8,8 mUSD |
* Source:
** Gold price estimate of 1950 USD per ounce
Following from the advanced operational understanding developed over the last few months of owner operator mining and hiring of a Mine Planner, the company has revised its mine plan and estimations for the first 12 months of gold production. Due to the specific nature of the Segele ore body, the mining will focus on developing stopes (pockets) targeting the high-grade gold areas of the ore body first. The very first Stope 00 developed will be a trial stope in an area that is not explored, before moving into the identified gold rich ore body. The trial stope will give valuable information and experience regarding geology, stope practice and feed to commission the plant. The next Stope 01 is then expected to be one of the best stopes in the life of the mine.
The mine plan primarily focuses of the upper part of the resource and the first 12 months of production. Future optimisation will extend this plan and recover more gold. The optimised part of the mine plan indicates a recovery of 77 % with potential upside. The following assumptions have been used:
- 50 % of crosscuts counted as ore with a grade of 22.7 g/t
- No ore recovery from winzes and incline shaft (Upside)
- No pillar drawing/pillar robbing at the end of LOM (upside)
- No use of backfill to recover barrier pillars (upside)
Table 2: Details of initial stope-groups to be mined, representing next 12 months of production. Showing gold endowment from Segele SRK Mineral Resource Estimate*
Stope group no. | Avg. grade | Tonnage | Ounces | Classification** |
1 (group) | 74.61 g/t | 4,272 t | 10,248 oz | Indicated mineral resource estimate |
2 (group) | 43.78 g/t | 6,167 t | 8,680 oz | Indicated mineral resource estimate |
3 (group) | 15.99 g/t | 5,203 t | 2,676 oz | Indicated mineral resource estimate |
* Mineral Resource Estimate of 94ktons at an average grade of 22.7g/t and totally 69k ounces.
** Source:
The updated mine plan uses the SRK Mineral resource model as it's basis. The production schedule is adjusted according to the actual mine development plan.
Early production plan for Western and Eastern Winzes (Stope group 1 and 2 from Table 2). High grades areas indicated.
In conclusion, while we acknowledge the ongoing challenges in our operational environment that have created significant delays, including procurement and logistics issues, we want to assure our stakeholders that we are fully committed to addressing these obstacles. Though uncertainties still persist and may impact our future progress, we remain focused on diligently working through these challenges day by day, with the aim of achieving our production goals.
For further information, contact:
Jørgen Evjen, CEO,
Mob: (+47) 92 80 40 14
Mail: jorgen@akobominerals.com
LinkedIn: www.linkedin.com/company/akobominerals
Web: www.akobominerals.com
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