SEMAFO Initiates Feasibility Study of Wona Mineralization at Depth
SEMAFO TSX-SMF
The PFS/FS come on the heels of a positive Preliminary Economic Assessment ("PEA") completed by the engineering group Met-Chem
The PEA was based on the
DDH No. Section From To Au / Length* WDC103 16950 326.3 365.0 3.7 g/t / 38.7 m WDC126 16750 190.7 212.0 4.1 g/t / 21.0 m WDC130 18100 250.6 253.6 6.1 g/t / 3.0 m WDC130 18100 353.0 359.0 2.2 g/t / 6.0 m WDC133 17050 336.0 393.8 5.24 g/t / 57.8 m Included 17050 349.4 366.0 10.21 g/t / 16.6 m WDC 135 17100 218.3 236.0 4.4 g/t / 18.0 m WDC138 16650 183.0 210.4 7.05 g/t / 27.4 m WDC140 16900 138.7 160.2 3.90 g/t / 21.5 m WDC145 16875 261.0 308.2 3.29 g/t / 47.2 m Included 16875 292.1 298.3 9.75 g/t / 6.2 m WDC146 16975 332.7 378.2 2.33 g/t / 45.5 m Included 16975 344.8 359.8 4.09 g/t / 15.0 m WDC147 16550 162.0 186.0 3.90 g/t / 24.0 m WDC148 16875 196.0 236.7 3.78 g/t / 40.7 m WDC149 16975 266.0 326.5 3.61 g/t / 60.5 m WDC151 16925 308.0 358.6 3.02 g/t / 50.6 m WDC154 16825 232.0 282.6 3.08 g/t / 50.6 m WDC157 16825 172.0 194.6 4.19 g/t / 22.6 m * All lengths are down-the-hole lengths; additional information is required to determine true widths.
Met-Chem will continue as the Company's engineering consultant for the project and will be responsible for overseeing the PFS/FS, in conjunction with Golder Associates Ltd. and SGS
"The contracts awarded for these studies represent an investment of approximately one million dollars," said Benoit Desormeaux, SEMAFO's Executive Vice-President and COO. "The teams are currently on site collecting the data necessary to complete the studies and are working in close collaboration with SEMAFO's experienced underground mining team led by Patrick Moryoussef, Mining Operations Manager,
"We are eager to complete the studies," said SEMAFO'S President and CEO, Benoit La Salle, "We are confident that the ongoing drilling program will have a positive impact on the resources that will be used for the feasibility study. We also believe that considering the excellent drilling results and increasing gold prices, the underground resources will take on a whole new dimension moving forward."
"We consider the study to be an integral part of our organic growth strategy and key to unlocking further value for the Company and its shareholders. We were very pleased with the PEA results and look forward to realizing Mana's true potential," added
The internal rate of return on this Wona mineralization at depth is excellent with the remaining results from the 2009 drilling program yet to be included.
Financial Analysis Price of Gold $800 $900 $1,000 $1,100 IRR (Pre-tax) 12% 25% 36% 47% Operating Cash Flow ($M) 83 118 152 186
Drilling programs remain ongoing at Mana to extend the at-depth mineralization, as the structure remains open in all directions. As part of the current exploration programs, drilling to further validate the on-surface potential of the property is also in progress. The 2009 drilling results will be taken into account in the calculation of SEMAFO's updated reserves and resources as at
Patrick Moryoussef, Eng., Mining Operations Manager, SEMAFO and Qualified Person (as defined by National Instrument 43-101) has reviewed this press release for accuracy and compliance with National Instrument 43-101.
About SEMAFO
SEMAFO is a Canadian-based mining company with gold production and exploration activities in West
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include words or expressions such as "objective", "expected", "will", "complete", "ongoing", "growth", "strategy", "unlocking", "look forward", "ongoing", "further", "in progress" "committed", "evolve", "become" and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include the ability to complete the pre-feasibility study in Q2 2010 and the feasibility study in Q3 2010, the conclusion of the PFS/FS as to the economic viability of an underground mining operation at Mana, the ability of the ongoing drilling program to positively impact the resources that will be used for the feasibility study, the ability of the PFS/FS to unlock further value for SEMAFO and its shareholders, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resources, delays, political and social stability in
For further information: SEMAFO: Benoit La Salle, President & CEO, (514) 744-4408, Toll-Free: 1 (888) 744-4408, [email protected]; Sofia St Laurent, Communications, (514) 744-4408, Toll-Free: 1 (888) 744-4408, [email protected]
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