LONDON (Alliance News) - Amara Mining PLC said Thursday that tests on alternative throughput scenarios for its 6.3 million ounce Yaoure gold project in the Ivory Coast in West Africa showed it had a number of good development options.
Although the company said that a 6.5 million tonne per year scenario showed a reduced production profile for the mine, it still showed strong economic returns.
The study was based on an 6.5 million tonne per year scenario with a USD800 per ounce open pit design and was compared with a 8.0 million tonne per year scenario.
The 6.5 million tonnes per year scenario showed strong returns at lower gold prices, with a post-tax internal rate of return of 25% and net present value of USD388 million at USD1,100 per ounce.
It showed a post-tax internal rate of return of 33% at a gold price of USD1,1250 per ounce, and a net present value of USD613 million at that price.
Life-of-mine average total cash costs under the lower level scenario were USD594 per ounce, down 9% from the 8 million tonne per year scenario.
Plant and infrastructure capital would be USD244 million, down 13% from the more ambitious scenario.
Amara noted that such a smaller project would still result in one of the largest gold mines in Africa.
Amara said that it was fully funded for a pre-feasibility study at the mine in the first quarter of 2015 after it raised USD30.5 million in a placing and open offer in March.
Shares in Amara were trading up 1.2% at 16.07 pence Thursday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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