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36
MODERN MINING
June 2016
WEST AFRICA
B
ouly, which was explored by Rand-
gold in 1996-97, was acquired by
Nordgold in 2008 when it gained
a majority interest in High River
Gold. A first JORC resource esti-
mate of a million ounces of gold at 0,78 g/t was
published in 2012. In the same year prelimi-
nary metallurgical tests showed heap leach po-
tential for weathered and transitional rock. A
scoping study was completed in 2013/14, fol-
lowed by a feasibility study in 2014/15. Based
on the positive results of the feasibility study,
Bouly
on the brink of production
Plant construction
underway at the Bouly gold
project. This is the view
looking towards the
primary crusher.
The Bouly gold project in Burkina Faso is advancing ahead
of both budget and schedule with production expected to
start in Q3 2016, says its owner, LSE-listed Nordgold. Located
5 km fromNordgold’s Bissa mine and 85 km north of Ouga-
dougo, Bouly is a 7 Mt/a open-pit, heap leach project which
will have an annual production of approximately 120 koz
over a life of mine of 10 years at an AISC of US$730/oz.
the project was approved and entered construc-
tion in the second quarter of last year.
As a result of intensive exploration pro-
grammes carried out in 2013-2014, Bouly’s
mineral resources have tripled to 3,5 Moz, and
maiden ore reserves of 1,32 Moz at 0,56 g/t Au
were declared in the course of the feasibility
study. The study demonstrated strong eco-
nomic fundamentals for the project, according
to which Bouly’s IRR is 40 % at a gold price of
US$1 250 per oz and approximately 26 % at a
gold price of US$1 100 per oz. It estimated the
payback period at 2,2 years for the US$1 250
gold price scenario.
The mining operation is expected to be low
cost given the low strip ratio of 0,7 t/t while
gold recovery is expected to be in the region of
83 %. There is the possibility of a life of mine
extension through the processing of fresh rock
ore resources.
Norgold says the total construction capex is
expected to be approximately US$145 million,