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Semafo reports pit wall failure at Mana mine in Wona pit.

Global Banking News-August 6, 2019-Semafo reports pit wall failure at Mana mine in Wona pit

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Semafo Inc (STO:SMF) (TSX:SMF), a Canadian-based intermediate gold producer, reported on Monday a pit wall failure at Mana in the Wona pit. Reportedly, no mining was underway in the area, and no-one was injured.

According to the company, a pit wall failure occurred on 2 August 2019 and its team has been working diligently on assessing the impact. This incident took place in the northern part of the Wona pit where there is no active mining. No-one was injured, and no equipment was damaged.

Currently, Semafo is mining in the southern part of Wona pit. However, under the 2019 mine plan, some 45,000 ounces were expected from the northern portion of the pit between late August 2019 and year-end.

To mine securely and regain access to ore in Wona North, the company said it will have to push back the pit wall and mine approximately six million tonnes of waste material. As a result, mining of ore in the northern part of the pit will be deferred until the first quarter of 2020. These six million tonnes were part of the life of mine plan in 2021 and therefore do not represent additional tonnes or cost.

Also, after evaluating multiple scenarios to compensate for the ore from Wona North in 2019, Semafo has established that there would be insufficient ore to feed the mill for approximately ten weeks. It now expects to suspend the processing of ore at Mana between mid-August 2019 and end of October 2019.

Semafo clarified that the mining plan for the Siou pit remains unchanged. Development of Siou open pit is ongoing with ore expected in the fourth quarter of 2019 and development of Siou underground is proceeding on time and on budget.

In addition, Semafo revised its annual guidance as the impact at Mana is estimated to be approximately 40,000 ounces to 50,000 ounces of lower production than originally contemplated. Therefore, annual guidance at Mana has been revised to 130,000 ounces to 140,000 ounces from the original 170,000 ounces to 190,000 ounces. There is no change to the company's Mana all-in sustaining cost (AISC) guidance.

During the shutdown, mining costs of approximately USD22m for Siou and Wona will be capitalised in development and there will be a non-recurring charge of approximately USD7m mostly representing fixed costs for the period.

Boungou mine guidance remains unchanged at between 220,000 ounces and 240,000 ounces of gold at an AISC of between USD470 and USD510 per ounce.

Production at Mana for the first half of the year totalled 77,500 ounces, in line with Semafo's budget. In the second half of the year, it is estimated that Mana production will be split 25% / 75% between the third and fourth quarters.

((Distributed via M2 Communications - http://www.m2.com))

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Publication:Global Banking News (GBN)
Date:Aug 6, 2019
Words:493
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