Resolute Mining’s (ASX: RSG) ongoing optimisation of its Syama Expansion Project in Mali, which will increase gold production to 270,000 ounces per annum, has reduced capital expenditure to US$235 million from US$266 million.
This is due mostly to a US$28 million reduction from the company no longer having to relocate the sulphide crushing circuit.
Further Syama open pit mine plan refinement has also delivered a 13 million tonne reduction in material handling and improved economics with minimal ounces lost.
In addition, the parallel oxide circuit remains on schedule for commissioning in January 2015.
A pre-feasibility study is underway for Syama underground operation with positive geotechnical investigations confirming underground cavability.
Deep infill diamond drilling will begin immediately to upgrade resources below Syama pit.
Syama had produced 196,182 ounces of gold at cash costs of A$796 per ounce in the 2012-13 financial year.
It has Ore Reserves of 2.4 million ounces at a grade of 2.6 grams per tonne gold and Resources of 4.7 million ounces of gold at 2.4g/t.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.