Modern Mining October 2016

MINING News

A recent photo of the Bouly site. The operation is expected to produce 120 000 ounces of gold a year.

Nordgold launches Bouly heap leach operation

mine in July 2015 and invested US$140 million in the project (US$15 million less than initial capex guidance of US$155 million). According to Nordgold, the sig- nificant saving achieved was a result of earthworks being conducted in-house, as well as lower equipment prices combined with disciplined procurement and foreign exchange gains. In line with Nordgold’s development strategy, the project had been de-risked

prior to final board approval. According to the Feasibility Study, the IRR for Bouly is approximately 40 % at a gold price of US$1 250 per oz and approximately 26 % at a gold price of US$1 100 per oz. The payback period is expected to be 30 months at a gold price of US$1 250 per oz and 42 months at a gold price of US$1 100 per oz. Bouly is the company’s third operating asset in Burkina Faso and the second project Nordgold has developed from a greenfield stage in the country in the last six years. The launch of Bouly confirms Nordgold’s posi- tion as the second largest gold producer in the country, with total production of approximately 400 koz per year. “Bouly is another outstanding addi- tion to our global asset portfolio and once again highlights our ability to execute large mining projects on time and, in this case, under budget,” comments Nikolai Zelenski, Nordgold’s CEO. “Like Bissa, which we launched in 2013, Bouly is a best-in-class operation, which will not only increase overall production and efficiency at Nordgold, but will be another major economic contributor to our host country and its local community.” Approximately 1 000 jobs were created during the construction phase and 350 permanent jobs will be created over the mine’s 10-year life span. Direct benefits to the state will come mainly in terms of income tax and royalties, which are esti- mated to be US$120 million over the life of

LSE-listed Nordgold has announced that it has expanded its flagship Bissa mine in Burkina Faso with the launch of a heap leach operation at the nearby Bouly deposit. Bouly’s average annual produc- tion will be approximately 120 koz over a LOM of 10 years. In 2016, Bouly is expected to produce up to 20 000 ounces of gold. Bouly was completed in August this year on schedule and under budget. Nordgold started construction of the

The first Bouly gold pour (photo: Arnand van Heerden).

4  MODERN MINING  October 2016