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MODERN MINING
October 2016
MINING News
LSE-listed Nordgold has announced that
it has expanded its flagship Bissa mine in
Burkina Faso with the launch of a heap
leach operation at the nearby Bouly
deposit. Bouly’s average annual produc-
tion will be approximately 120 koz over a
LOM of 10 years. In 2016, Bouly is expected
to produce up to 20 000 ounces of gold.
Bouly was completed in August this
year on schedule and under budget.
Nordgold started construction of the
mine in July 2015 and invested US$140
million in the project (US$15 million less
than initial capex guidance of US$155
million). According to Nordgold, the sig-
nificant saving achieved was a result of
earthworks being conducted in-house, as
well as lower equipment prices combined
with disciplined procurement and foreign
exchange gains.
In line with Nordgold’s development
strategy, the project had been de-risked
Nordgold launches Bouly heap leach operation
prior to final board approval. According
to the Feasibility Study, the IRR for Bouly
is approximately 40 % at a gold price
of US$1 250 per oz and approximately
26 % at a gold price of US$1 100 per oz.
The payback period is expected to be
30 months at a gold price of US$1 250
per oz and 42 months at a gold price of
US$1 100 per oz.
Bouly is the company’s third operating
asset in Burkina Faso and the second project
Nordgold has developed from a greenfield
stage in the country in the last six years. The
launch of Bouly confirms Nordgold’s posi-
tion as the second largest gold producer
in the country, with total production of
approximately 400 koz per year.
“Bouly is another outstanding addi-
tion to our global asset portfolio and once
again highlights our ability to execute
large mining projects on time and, in this
case, under budget,” comments Nikolai
Zelenski, Nordgold’s CEO. “Like Bissa,
which we launched in 2013, Bouly is a
best-in-class operation, which will not only
increase overall production and efficiency
at Nordgold, but will be another major
economic contributor to our host country
and its local community.”
Approximately 1 000 jobs were created
during the construction phase and 350
permanent jobs will be created over the
mine’s 10-year life span. Direct benefits
to the state will come mainly in terms of
income tax and royalties, which are esti-
mated to be US$120 million over the life of
The first Bouly gold pour (photo: Arnand van Heerden).
A recent photo of the Bouly site. The operation is expected to produce 120 000 ounces of gold a year.