THE BOURSE WHISPERER: Gryphon Minerals (ASX: GRY) has released the results of a Bankable Feasibility Study for the company’s 100 per cent-owned Banfora gold project in Burkina Faso.
The company said the study had confirmed Banfora to be an economically and technically robust project.
Key commercial results of the BFS in US$. Source: Company announcement
The BFS proposes a contract mining operation at Banfora utilising a conventional industry standard Carbon In Leach (CIL) two million tonnes per annum gold processing plant, along with associated infrastructure, to mine and process approximately 16.7 million tonnes of ore from defined ore reserves over an initial eight-year period.
The plant has been designed for up scaling to plus four million tonne per annum at a later date.
Gryphon indicated this could potentially be funded from project cash flows.
A gold price of US$1,300 was used for pit optimisations and base case financial modelling.
“The completion of this BFS is a significant step towards the Banfora gold project becoming a major mining operation and towards Gryphon’s transformation into a gold producer, Gryphon Minerals managing director Steve Parsons said in the company’s announcement to the Australian Securities Exchange.
“The BFS confirms the economic viability of this low risk, conventional open pit CIL operation.
“Gryphon will continue to work closely with all stakeholders, including the Burkina Faso Government and local community, as it focuses on full funding and development of the Banfora gold project and obtains all the necessary approvals to commence construction over the coming months.
“Furthermore, we are extremely excited by the huge exploration upside the project continues to deliver on.
“We anticipate additional conversion of resource to reserve ounces with ongoing infill drilling, plus continued resource growth from step-out shallow as well as deeper drilling and more new discoveries at Banfora.”