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WEST AFRICA | GUINEA & BURKINA FASO
Landscape in Guinea where the Tri-K
project will be developed
EMERGING NEW GOLD MINE IN GUINEA
LSE and Oslo-listed, West Africa focused gold junior Avocet
Mining is intent on developing its mining project portfolio as its
second gold project, Tri-K in Guinea, assesses funding options
– a necessity in light of geological and production challenges at
its Burkina Faso-based mine Inata. “Our new project approach is
reflective of market conditions which call for smaller, cost-effective
start-up operations while maintaining visibility for longer-term
growth alternatives as market conditions improve,” finance director
MIKE NORRIS tells LAURA CORNISH.
IN SHORT
Guinea’s Tri-K project represents the immediate and upside potential for
Avocet Mining as it remains on track to move into construction in 2016.
T he combination of cash
constrained markets and a
weaker gold price has seen
companies move away from
large, capital intensive projects. New
project development, especially in the
junior sector, requires small-scale, lower
capital expenditure (capex), easy-to-build
mining operations which can move into
production quickly and start generating
cash quickly as well.
This is the approach Avocet Mining is
taking for its project development, primarily
in Guinea where it hopes to elevate its
status from a single mine operator once
Tri-K becomes operational. “What we are
configuring at the moment is reflective
of tight market and finance conditions
– spending tens of millions of dollars
rather than hundreds of millions. This is
10 MINING REVIEW AFRICA
| JUNE 2015
Mike Norris
the only practical and effective short-term
tactic which best ensures the successful
development of new mining projects.
The key however is making sure we have
visibility for quick and easy expansions
and growth in the longer term as our
circumstances, and market circumstances
allow,” Norris outlines.
has revealed a viable and “robust” five to
seven year heap leach operation with good
grades of 1.89 g/t at 7.9 Mt, producing in
the region of 50 000 – 70 000 ozpa of gold
for less than $800/oz – based on the near-
surface oxide zone which equates to only
20% of the total resource.
“Our recent focus on the project has
been adjusting
the capex profile
Tri-K – A bigger future
(decreasing the
for Avocet
capital and operating
Situated in north-east Guinea,
costs) to improve
Avocet is focused heavily
Tri-K’s targeted gold ounce
cash flows as the
on the advancement and
production profile
gold price has
development of its Tri-K gold
weakened. And it is shaping up to be
project, which Norris describes as the
more robust than a few years back
company’s “new mining frontier”. Tri-K has
when our original capex numbers were
a 480 000 oz maiden ore reserve (7.9 Mt
significantly higher.”
averaging 1.89 g/t).
“It is exciting to have a new focus, which
A feasibility study completed in 2013
50 000 –
70 000 ozpa