MONTREAL, March 25 /CNW Telbec/ - SEMAFO (TSX: SMF) today reported its
financial and operational results for the year ended December 31, 2007. All
amounts are in US dollars unless otherwise stated. A conference call will be
held Wednesday March 26, 2008 at 10:00 a.m. (E.S.T) to discuss the year end
results. Details to access the call can be found on the home page of the
Company's website at www.semafo.com. Semafo's consolidated financial
statements together with Management's Discussion and Analysis are available on
its website or at www.sedar.com.
- Cash flows from operating activities of $10,245,000
- Net loss of $23,110,000 in 2007 including an unrealized loss of
$17,923,000 resulting from the mark to market of financial instruments
- Gold production totalled 106,400 ounces in 2007, up 12% from 2006
- Significant progress was made on Mana mine construction, including
obtaining the mining convention
- Drilling began on high-potential extensions of the Wona structures in
Burkina Faso and the SE horizon of the Libiri pit in Niger
- The permit was obtained for West Balan in Guinea
Reserves and Resources (compliant with national Instrument 43-101)
- Reserves and resources at Semafo totaling 4,252,100
- A 420% increase of inferred resources at Mana totaling 1,867,100 ounces
The Samira Hill Mine produced, in accordance with budget, a total of
79,300 ounces of gold in 2007 at a cash operating cost of $425 per ounce
compared to 47,600 ounces, for the same period in 2006, at a cash operating
cost of $397 per ounce.
The Kiniero mine produced a total of 27,100 ounces of gold in 2007 at a
cash operating cost of $707 per ounce compared to 47,200 ounces at $407 for
the same period in 2006.
Geological issues at Kiniero contributed to the underperformance of this
property in 2007. The structures identified for mining contained lower than
anticipated mineralization. Definition drilling together with geological and
ore genesis studies ascertained lower grade structures of second order in the
mineralization process owing to swarms of much finer veins creating internal
In order to return the mine to acceptable production levels, a series of
initiatives and detailed action plans were undertaken in the third quarter,
mainly reorienting the main mill feed source to first order structures such as
The main objective of the 2007 exploration program at Mana was to develop
new targets in the vicinity of the Wona and Nyafé deposits as well as new
targets in close proximity to the Mana Mine.
Exploration carried out in 2007 demonstrated the potential for extension
over 1,300 meters. Moreover, deep drilling in the north of Wona lead to
significant increase of inferred resources totaling 1,867,100 ounces at the
end of 2007.
In Niger, the main objective of the 2007 exploration program was to
replace reserves and to increase resources mainly in the Libiri zone.
Exploration highlighted a considerable extension of the Samira Horizon
which allowed for the addition of two new zones in the resource category.
As at December 31, 2007, our mineral reserves at Samira stand at
735,900 ounces of gold compared to 703,900 ounces in 2006, resulting in an
increase of 21% considering reserves mined in 2007.
The 2007 exploration program at Kiniero focused mainly on the development
of advanced targets located in close proximity of the existing deposits with
the objective of increasing the mineral reserves and resources.
An important RC drilling program confirmed extension to the West Balan
structure over a total of 1,100 meters and the structure is still open to the
As at December 31, 2007, Kiniero presents a decrease of its mineral
reserves which is mainly related to the review of the geological
interpretation following 2007 geological challenges.
Semafo is a Canadian-based mining company with gold production and
exploration activities located in West Africa. The Company currently operates
three gold mines in Burkina Faso, Niger and Guinea. Semafo is committed to
evolve in a conscientious manner to become a major player in its geographical
area of interest, while maintaining values and strengthening relationships to
increase shareholder value.
This press release may contain forward-looking statements. These
forward-looking statements include, but are not limited to, statements
regarding expectations of the Company as to the market price of gold,
strategic plans, future commercial production, production targets, timetables,
mining operating expenses, capital expenditures, and mineral reserve and
resource estimates. Forward-looking statements involve known and unknown risks
and uncertainties and accordingly, actual results and future events could
differ materially from those anticipated in such statements. Factors that
could cause future results or events to differ materially from current
expectations expressed or implied by the forward-looking statements include,
but are not limited to, fluctuations in the market price of precious metals,
mining industry risks, uncertainty as to calculation of mineral reserves and
resources, risks related to hedging strategies, risks of delays in
construction, requirements of additional financing and other risks described
in the Company's documents filed from time to time with Canadian securities
regulatory authorities. Although the Company is of the opinion that these
forward-looking statements are based on reasonable assumptions, those
assumptions may prove to be incorrect. Accordingly, readers should not place
undue reliance on forward-looking statements. Readers can find further
information with respect to risks in the Annual Information Form of the
Company and other filings of the Company with Canadian securities regulatory
authorities available at www.sedar.com. The Company disclaims any obligation
to update or revise these forward-looking statements, except as required by
For further information:
For further information: SEMAFO: Benoit La Salle, President & CEO, (514)
744-4408, firstname.lastname@example.org; Renmark: Maurice Dagenais,
email@example.com; Eric St-Pierre,
firstname.lastname@example.org, (514) 939-3989, Fax: (514) 939-3717,