Roxgold says it has awarded a SAG mill order for the Séguéla gold project in Côte d’Ivoire to Metso Outotec as part of its efforts to advance the project through to construction in the coming months.

The move comes ahead of the release of feasibility study on the project next month, which will build on a 2020 preliminary economic assessment (PEA) that outlined an operation capable of delivering over 100,000 oz/y of gold over eight years at average all-in sustaining costs of $749/oz. This study also incorporated a single stage primary crush/SAG milling comminution circuit with 1.25 Mt/y throughput.

At the same time as selecting Metso Outotec for the SAG mill contract, Roxgold has awarded preferred contractor status to Lycopodium Minerals Pty Ltd and is currently negotiating the engineering, procurement, and construction (EPC) agreement with the company for the 1.25 Mt/y carbon-in-leach processing facility and other supporting infrastructure to be constructed at Séguéla.

The fixed price agreement increases confidence in the total capital cost for the project, as it is by far the largest scope at Séguéla, Roxgold said.

“With this agreement in the final stages of negotiation and several other key scopes now tendered and priced, approximately 65% of the pre-production capital estimate has now been fixed or finalised,” the company added. “This level of detail provides increased confidence around the pre-production capital estimate, which is expected to be in-line with the previous estimate of $142 million, as outlined in the PEA.”

In terms of progressing work on long-lead time items, Roxgold said it had awarded the plant site bulk earthworks tender, with a contract expected to be executed and works commenced in the June quarter to support the project critical path.

The company has continued to advance its early works program at site including upgrading of the site access road and construction of the accommodation village. Contracts were awarded for camp bulk earthworks and camp construction, with first concrete poured last month, it said.

Surveying has been completed for the 33 kV and 90 kV power lines to tie into the existing 90 kV transmission line running across the property, which is connected to the 225 kV ring main system around the country. These early work activities will enable a rapid ramp up to full construction upon completion of the feasibility study and mine financing in the June quarter of this year.

Roxgold says it has undertaken a competitive tender process and has conducted a detailed assessment of the contract mining proposals received. It is currently completing diligence on the shortlisted parties and plans to award the mining contract later this year to allow for contractor mobilisation, site establishment,and commencement of pre-production mining early next year.

John Dorward, President and Chief Executive Officer, said: “The Séguéla project has rapidly become a cornerstone asset for Roxgold, and we believe that the project will provide significant value to all our stakeholders.

“The feasibility study is on track to be announced in the second (June) quarter, which we believe will demonstrate the ongoing evolution of the Séguéla PEA with an enhanced mine life and project economics with the inclusion of the high-grade Koula deposit into the mine plan.”