
SEMAFO Plans to Increase Mana's Processing Capacity by 6,000 Tonnes per Day
http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=8300625
Semafo Inc SMF 9/8/2011 8:57:56 AMMONTREAL, QUEBEC, Sep 08, 2011 (MARKETWIRE via COMTEX News Network) --
SEMAFO (TSX: SMF) today announced plans to increase the processing capacity by 6,000 tonnes per day ("tpd") at its Mana property in Burkina Faso. The expansion project is aimed at increasing capacity at the plant to 14,000 tpd, representing as much as an additional 120,000 gold ounces annually and potentially bringing Mana's total production to more than 300,000 ounces per annum.
This phase of expansion is in consideration of the positive drill results received from the Fofina, Fobiri and Yaho zones and is to include the construction of a satellite crushing and milling facility. The new facility, which is currently planned for the Fofina-Fobiri area, will prepare the ore for final processing at the Mana plant. This approach will play an important role in supplying increased ore to the processing plant as well as substantially expedite the overall production process of ore from the southern region in a highly economic manner.
Commenting on the expansion, Benoit Desormeaux, SEMAFO's Executive Vice-President and Chief Operating Officer said, "With the geological results delineating the surrounding area's significant potential, we are capitalizing on the opportunity to ensure that SEMAFO is prepared for the forthcoming increase in ore volume associated with these new zones."
Capital expenditures for the expansion project are estimated at $100-$125 million and will be fully funded through SEMAFO's cash flow. The anticipated payback period is less than one year.
As part of the plant expansion the Corporation also plans to build a water pipeline, for which an engineering analysis is already underway. The year-round accessibility will safeguard adequate water supply levels at the mill at all times and is scheduled for commissioning in the second quarter of 2012.
The expansion is scheduled to begin in early 2012 and is expected to be completed during the second half of 2013.
All amounts are in US dollars unless otherwise stated.