Modern Mining April 2017

MINING News

New Bouly gold mine delivers ahead of expectation

The Bouly gold mine of Nordgold in Burkina Faso is reportedly operating very successfully. The heap leach opera- tion, which represents an expansion of Nordgold’s existing Bissa mine, was com- pleted on schedule and under budget in the second half of last year. After com- ing on line in September, it reached its full capacity in November. It produced 31,4 koz in 2016, ahead of 2016 production guidance of 20 koz. In Nordgold’s financial and operating results for Q4 and FY2016, Chief Executive Nikolai Zelenski says that a highlight of the year was the successful launch of Bouly, which “once again demonstrates our strong track record in developing outstanding mining assets from the ground up, following the success of our flagship Bissa mine in 2013.” He adds that Bouly has “delivered well ahead of our expectations”. Built in 13 months, Bouly represents an investment of US$140 million by Nordgold and – according to the feasibility study – will produce approximately 110 000

ounces of gold a year over a life of mine of 10 years at an AISC of US$730 per ounce. It is located 100 km north of Ouagadougou, the capital of Burkina Faso. The combined Bissa-Bouly operations produced 213,9 koz in 2016 and 78,5 koz in Q4 2016. The standalone Bissa mine pro- duced 185,8 koz in 2016, down 21 % year on year due to lower ore mined volumes and head grade mainly related to higher waste stripping activities performed in order to facilitate pits cutbacks for higher grade ore supply in 2017. The mine increased gold production in Q4 2016 by 14 % quarter on quarter to 53,0 koz, with this increase being driven by higher throughput and grade. According to Nordgold, in 2017 Bissa will benefit from 2016 investments in the pit cutback programme which will enable ore supply from pits to match annual plant capacity. Ore will be mined from the South West, IO, Zone 51, Zone 52 and Gougre pits with a planned average stripping ratio of 8,0 t/t. The average head grade is expected to be 1,7 g/t, while increasing hardness of

ores from the deepening of pits will result in slightly lower total throughput of 3,9 Mt over the year. The seventh leach tank com- missioned in October 2016 will increase residence time and help to maintain recov- eries at approximately 87 % in 2017 while processing lower recovery harder ores. The mine will be focused on mining efficiency and productivity in 2017 as pits increase in depth and more fresh rock is mined. In 2016, Bissa continued near mine exploration with a focus on resources conversion, reserve replacement and extensions of current pits, and defini- tion of satellite pits. Exploration teams completed drilling programmes at satel- lite deposits Yimiougou and Noungou, encountering additional mineralisa- tion that will be included in the annual resource update. Mining licence applications for the Bissa satellite pits Ronguen and Zinigma are pro- gressing through the regulatory process. Contracts were awarded for feasibility and environmental studies for the Yimiougou

The new Bouly mine in Burkina Faso produced 31,4 koz in 2016, after being commissioned in September (photo: Nordgold).

4  MODERN MINING  April 2017