Modern Mining August 2019

MINING News

AMS selected as preferred open-pit contractor for Sanbrado

significant achievement and represents the excellent progress we are making in build- ing on the suite of quality projects on which AMS operates in the region.” AMS is one of the largest contract min- ing companies in Africa with established support networks in Africa, Australia and Europe. AMS, and its parent Ausdrill, have been working in Burkina Faso since 2011 and in the region for almost 30 years. West African announced the results of its updated Feasibility Study for the Sanbrado project in April this year. The study envisages an initial 10-year mine life, including 6,5 years of underground mining. The project will have average annual pro- duction over the first five years of mine life of 217 000 ounces of gold and a 14-month post-tax pay back on US$186 million pre- production capital costs. Project economics are robust, with an AISC of less than US$600/oz over the first five years and US$650 over the life of mine. Year 1 production is anticipated to be over 300 000 oz of gold from underground and open-pit ores, at an AISC of less than US$500/oz. West African is fully funded with construction underway and the first gold pour scheduled in mid-2020. Two key contracts for Sanbrado were awarded late last year, with Australia’s Lycopodium being appointed as EPCM contractor for the mineral processing facility and supporting infrastructure and Byrnecut Burkina Faso, part of the Australian-based Byrnecut group of companies, as the underground mining contractor. 

Decline advancement at the M1 South deposit at Sanbrado (photo: West African).

ating experience in Burkina Faso and 30 years’ experience in West Africa.” Ausdrill Group Managing Director Mark Norwell said: “A key focus for the new Ausdrill group has been to enhance our surface operations in Africa and target substantial growth opportunities across a range of commodities in select African countries. Being selected as preferred contractor at the Sanbrado gold project is a

ASX-listed West African Resources (West African) has appointed African Mining Services Ltd (AMS), a wholly owned sub- sidiary of ASX-listed Ausdrill, as preferred tenderer for the open-pit mining contract for the Sanbrado gold project in Burkina Faso. The contract value is US$170 million over five years. West African and Ausdrill are to enter into an option for a deferred payment arrangement for up to US$10 million at a commercial interest rate. Mobilisation activities are expected to commence in November 2019 ahead of open-pit mining commencement in January 2020. The scope of work includes site preparation, drill and blast, load and haul, and maintenance works. “The open-pit mining contract is the final major operational contract for our high-grade Sanbrado gold project, and the appointment of AMS as preferred tenderer follows the completion of a competitive ten- der and due diligence process examining safety, experience and operational capabili- ties,” commented West African’s Managing Director, Richard Hyde. “We are very pleased to appoint AMS as preferred tenderer for the open-pit mining contract as they have a strong track record in the region with over nine years of oper-

Construction underway on the Sanbrado plant (photo: West African).

4  MODERN MINING  August 2019