Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) is pleased to announce that successful extension exploration drilling programs, mine design improvements, and optimisation of mine scheduling work undertaken at the Mako Gold Mine in Senegal (Mako) has resulted in material improvements to an updated Life of Mine Plan (LOM).
The Updated LOM has generated a 39% increase in total gold production and a mine life extension of two further years of production. The original mine plan at Mako at the time of its development consisted of a seven-year mine life expected to produce 890,000 ounces of gold. Mako is now expected to have a total mine life of nine years and produce a total of 1.24 million ounces of gold. Production over the next five years will average 140,000 ounces of gold per annum. Expected average LOM All-in-Sustaining Cost (AISC) has been updated to US$848 per ounce.
Including 2020, Resolute now expects to mine a further 900,000 ounces of gold from Mako until early 2027 at an expected average AISC over this period of US$900 per ounce.
Managing Director and CEO, Mr John Welborn, welcomed the updated Life of Mine plan for Mako: 'Mako has proved to be an outstanding Resolute gold mine. This initial extension of the mine life at Mako will be further reinforced by our investment in the significant untested exploration potential of the region. Today's announcement is a great result for Resolute shareholders and for our principal partner at Mako, the Senegalese Government. We are delighted to increase total mine production and extend the mine life at Mako which will expand the economic benefits the mine provides to the local communities and broader population of Senegal.'
Background
Mako is located in eastern Senegal. Following initial discovery of gold in 2011, first production was achieved in January 2018 and commercial production commenced in March 2018.
Resolute acquired a 90% interest in Mako during 2019 with the Government of Senegal holding a 10% interest. In January 2020 Resolute acquired the 1.1% gold royalty interest held by the original project financiers of Mako. As a result, there are no non-government third-party interests over Mako and Resolute is well positioned to receive maximum benefit of any exploration success or future production improvements at Mako.
Mako is a conventional truck and shovel open pit mining operation. Processing is completed via a carbon in leach (CIL) plant comprising a crushing circuit, an 8.5MW SAG Mill and a gold extraction circuit. Under Resolute's operational control the mine has consistently delivered recoveries of 93-95%. Electricity is provided by a 14MW diesel fuelled power station and water is extracted from the nearby Gambia River. Mako can support an annual milling rate of 2.3 million tonnes per annum (Mtpa) without the need for additional capital expenditure. Current mine infrastructure including tailings impoundment, raw water dam and the power station, has capacity to manage the increases in mine production envisaged by the updated LOM.
Production to Date
At the time of its construction and commissioning, Mako was expected to deliver average production of 140,000 ounces (oz) per annum at an AISC of US$780/oz over a seven-year mine life. From the commencement of operations in January 2018 until June 2020 the mine has produced a total of 423,703oz at an AISC of US$719/oz. Resolute is targeting 2020 production of 160,000oz at an AISC of US$800/oz.
Exploration and Mineral Resources
Resolute's exploration activities in Senegal during 2019 was primarily focused on the existing Mako open pit with a view to expanding Mineral Resources to extend mine life. 7,000 metres of diamond drilling was completed comprising follow-up drilling of previously identified high grade gold mineralisation in the north-east corner of the Mako open pit and targeting down dip extensions of the mineralisation.
The follow-up drilling concentrated on high grade results from the north-east end of the Mako open pit to better define ore shoots for future resource modelling and estimation. The high-grade shoots are located below the base on the 2019 Ore Reserve pit shell and have the potential to expand the open pit Ore Reserves and extend mine life.
Contact:
John Welborn
Tel: +61 8 9261 6100
Fax: +61 8 9322 7597
Email: contact@rml.com.au
About Resolute
Resolute is a successful gold miner with more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa which have produced more than 8 million ounces of gold. The Company trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG. Resolute currently operates the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal. The Company is the owner of the Bibiani Gold Mine in Ghana. Resolute's guidance for 2020 has been set at production of 430,000 ounces of gold at an All-In Sustaining Cost of US$980 per ounce.
COVID-19 Business Update
Resolute is responding to the COVID-19 pandemic to ensure impacts are mitigated across all aspects of Company operations. Resolute continues to assess developments and update the Company's response with the highest priority on the safety and wellbeing of its employees, contractors and stakeholders. Further escalation of COVID-19, and the implementation of further government-regulated restrictions or extended periods of supply chain disruption, has the potential to negatively impact gold production, earnings, cash flow and the Company's balance sheet.
RESOLUTE MINING LIMITED 
