News Bureau

Séguéla Gold Internal rate of return is 66%

Roxgold announces the results of a Preliminary Economic Assessment (PEA) for the high-grade Séguéla Gold Project (Séguéla) in Côte d’Ivoire. The PEA provides a base case assessment of developing the Antenna, Ancien, Agouti, and Boulder deposits as open-pit mines feeding a central gold processing facility. Roxgold expects to continue its evaluation of Séguéla with the intent of growing the resource base and advancing to the feasibility stage.

According to the key financial results at Production front Life of Mine, gold production of 841K ounces with average annual gold production of 103K ounces. Average annual gold production of 143K ounces over the first three years of production, with an estimated production peak of 154K ounces in year three Costs.

John Dorward, President, and Chief Executive Officer commented: “The PEA illustrates the substantial value accretion of the Séguéla Gold Project which stands alongside our current operations to build the foundation for Roxgold and its future.

We acquired Séguéla in April 2019 for $20 million, and through the hard work of our exploration and project team have been able to generate exceptional prospective project economics with an after-tax NPV (Net present value) attributable to Roxgold of $268 million and an IRR (Internal rate of return) of 66% at a gold price of $1,450/oz.

In the first three years of operation, the project will produce an average of 143,000 ounces of gold per year at an AISC of $600 per ounce ensuring a payback period of only 1.2 years.

“Importantly, this assessment is just a snapshot of the potential value of Séguéla. Our exploration program has returned material intersections from five of the first seven targets identified, with an additional 21 targets on the property yet to be tested.

It is our belief that, with continued drilling success, there is the potential to add significant production ounces and value to the project. Additionally, we have identified several opportunities to expand and optimize the PEA, which we intend to evaluate as we proceed towards a Feasibility Study, which is well underway and with anticipated completion in the first half of 2021.”

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