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Enter Symbol
or Name
USA
CA



Roxgold Inc (2)
Symbol ROXG
Shares Issued 372,116,228
Close 2020-07-07 C$ 1.545
Market Cap C$ 574,919,572
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Roxgold produces 32,812 oz Au in Q2

2020-07-08 06:37 ET - News Release

Mr. John Dorward reports

ROXGOLD PRODUCES 32,812 OUNCES IN SECOND QUARTER; GUIDANCE MAINTAINED

Roxgold Inc. has released its preliminary production results for the second quarter of 2020 from the company's Yaramoko mine complex located in Burkina Faso.

Highlights:

  • Produced 32,812 ounces of gold at an average grade of 8.2 grams per tonne in Q2, totalling 65,192 ounces produced for the year to date;
  • Reported quarterly plant throughput of 1,399 tonnes per day (tpd) for a total of 127,309 tonnes which exceeded increased nameplate capacity of 1,100 tpd by approximately 27 per cent;
  • Maintained upper end of annual gold production guidance at 120,000 and 130,000 ounces subject to existing operating conditions being maintained;
  • Continued operations with management and mitigation of COVID-19 with no new infections at site;
  • Advanced Seguela infill and infrastructure drilling to support feasibility study, which is on track for early 2021.

"Our operations in the first half of this year have continued to operate well thanks to the foresight and rapid response of our regional teams to manage and mitigate the impacts of COVID-19 on our employees, contractors and communities in which we operate," said John Dorward, president and chief executive officer. "Despite these challenges, Yaramoko continued its strong operating performance with gold production of 65,192 ounces for the first half of the year -- putting the company well on its way towards achieving our annual production guidance of 120,000 to 130,000 ounces. It was pleasing to see record mined ore grade of 10.6 grams per tonne at Bagassi South with development ore grades exceeding expectations, whilst mining activities in the 55 zone reported higher grades in newly accessed stoping areas.

"Meanwhile, we are continuing to advance Seguela towards the completion of a feasibility study ahead of an ultimate construction decision early next year. Drilling activities at the project ramped up in May with four rigs active as we look to build ounces through the strike and depth extension potential at Ancien, Agouti and Boulder -- highlighted by recent exploration results from Seguela, which returned seven m of 28.8 g/t along strike at Ancien -- followed thereafter by testing of high-priority satellite deposits on our land package."

                           Q2 2020 PRODUCTION METRICS                    
                                                         Q1 2020              Q2 2020

Ore mined                                                134,472              112,523
Ore processed (tonnes)                                   125,879              127,309
Ore processed (tpd)                                        1,383                1,399
Head grade (g/t)                                             8.7                  8.2
Recovery (%)                                                97.9                 98.0
Gold ounces produced                                      32,380               32,812
Gold ounces sold                                          30,126               36,279
Average realized selling price (per ounce)                $1,595               $1,712

Operating summary

The Yaramoko mine complex produced 32,812 ounces, based on processing 127,309 tonnes at an average grade of 8.2 grams per tonne and average mill recoveries of 98 per cent. Mining activities reported 112,523 tonnes of ore mined, which was lower than last quarter as Yaramoko operated with reduced personnel due to COVID-19 travel restrictions and isolation protocols in Q2. The balance of processed ore was supplemented with stockpiled material.

Mining operations at the 55 zone and Bagassi South saw notable improvement through the quarter, as mined grades at Bagassi South averaged a record 10.6 grams per tonne in the quarter, while 55 zone reported higher grades at depth with an average mined grade of 11.6 g/t in June. Decline development in the 55 zone has now reached the 4734 level, which is approximately 580 metres below surface, with increased ore drive development. Decline development at Bagassi South has commenced on the 5061 level, which is approximately 250 metres below surface, and continues to advance as planned. Good progress on ore development has seen the Bagassi South mine largely developed, providing additional stoping access for the remainder of the year.

The processing plant availability was 96.7 per cent in the quarter and reported an average throughput rate of 1,399 tonnes per day exceeding nameplate capacity by approximately 27 per cent. Gold ounces sold of 36,279 ounces were higher than production due to the timing of gold shipments at the end of the prior quarter.

Corporate update

As announced on June 30, 2020, the company successfully executed documentation to refinance its existing Yaramoko facility and secured an additional $20-million (U.S.) as a revolving credit facility to provide increased liquidity and financial flexibility. The amended facility refinances the current outstanding loan balance of $37-million (U.S.) with revised repayment terms extending the repayment period from June 30, 2021, to Dec. 30, 2022, which reflects the company's continued success in extending the project's mine life. The updated loan repayment schedule for 2020 is as follows:

  • June 30, 2020 -- no repayment;
  • Sept. 30, 2020 -- no repayment;
  • Dec. 31, 2020 -- $1.48-million (U.S.).

The company also lodged its 2019 income tax return in Burkina Faso in April, 2020. As the company had fully utilized its cumulative losses in 2018, the company's position was an income tax payable of $5.6-million (U.S.), which was also paid in April, 2020.

2020 guidance

Based upon Q2 production results, Roxgold remains on track to meet its annual production guidance target of between 120,000 and 130,000 ounces from the Yaramoko mine complex absent any significant deterioration in operating conditions.

                       UPCOMING CATALYSTS                                                                  
Event                                                      Timing

Continuing infill, expansion and
feasibility-support drilling program at Seguela           Q3 2020
Satellite target exploration at Seguela                   H2 2020
Drilling results from Boussoura                           H2 2020
Underground drilling program in
55 zone at Yaramoko mine complex                          H2 2020
Feasibility study for Seguela                             H1 2021
Seguela construction decision                             H1 2021

Qualified persons

Paul Criddle, FAusIMM, chief operating officer for Roxgold, a qualified person within the meaning of National Instrument 43-101, has reviewed, verified and approved the scientific and technical disclosure contained in this news release.

About Roxgold Inc.

Roxgold is a Canada-based gold mining company with assets located in West Africa. The company owns and operates the high-grade Yaramoko gold mine, located on the Hounde greenstone belt in Burkina Faso, and is also advancing the development and exploration of the Seguela gold project, located in Ivory Coast.

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