Montreal, Quebec, February 26, 2007 - SEMAFO (TSX - SMF) today announced that the government of Burkina Faso has, by official decree, issued to Semafo Burkina Faso SA the mining permit for the Mana Gold Mine.
This milestone is a significant achievement for both Burkina Faso and Semafo. Burkina Faso will once again become a gold producer as several modern facilities will commence operations over the next twelve months. Semafo anticipates commercial gold production for year end at the rate of 4,000 tonnes per day, producing 125,000 ounces per year for the first three years.
Using a gold price of US$525 per ounce, mineral reserves as at June 30th, 2006 were 10.6 M tonnes at a grade of 2.9 g/t Au containing 997,400 ounces of gold. The planned project mine life currently stands at 8 years. Using a gold price of US$600 per ounce, the project's Internal Rate of Return is 43%.
The current situation of the project is as follows:
v EPCM contractor GENIVAR is onsite with a highly qualified team managing construction;
v Civil works is underway with foundations presently being laid for the mill and permanent housing.
v Architectural and urban development plans have been approved by both regional administrators and the population of the Somona village concerning the village's relocation;
v The new Komatsu mining fleet is on site and includes 2 excavators, 3 bulldozers, 10 dump trucks, 2 loaders and one grader;
v The tower crane is on site and currently being installed;
v The electrical power station, comprising eight -1000 Kwh generators, has been ordered with delivery scheduled for Q-2 2007;
v The crusher has been ordered with delivery scheduled for Q-3 2007;
v The ball mill has been ordered and is being supplied by Outokumpu. Delivery is scheduled for Q-3 2007;
v The steel works contract has been awarded to Dakar-based contractor CMA, builder of the Samira Hill gold mill in Niger. Steel erection is scheduled to begin in Q-2 2007;
v Contacts for general construction, concrete works, electrical and mechanical installations and road building have been awarded locally;
The common shares of Semafo are traded on The Toronto Stock Exchange under the symbol "SMF".
This press release contains << forward-looking statements >>, including, but not limited to, the statements regarding the Company's expectations as to the market price of gold, strategic plans, future commercial production, production targets, timetables, mine operating costs, fixed assets expenses, mineral reserve estimates and to the company's perspectives. Forward-looking statements express, as at the date of this press release, our estimates, forecasts, projections, expectations and beliefs as to future events or results. Forward-looking statements are reasonable, but involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, uncertainty as to calculation of mineral reserves, risks related to the grade of reserves, risks related to hedging strategies, risks of delays in construction and requirements of additional financing.
Semafo is a mining company whose mission is to explore, develop and mine
major gold deposits in West Africa. Semafo currently operates the Kiniero mine in Guinea,
the Samira Hill mine in Niger and is developing the Mana project in Burkina Faso
For more information contact :
Benoit La Salle,
President & CEO
Tel : (514) 744-4408
Fax: (514) 744-2291
E-Mail : firstname.lastname@example.org
Tel: (514) 744-4408
Fax : (514) 744-2291
Christopher Wells : email@example.com
Neil Murray-Lyon : firstname.lastname@example.org
Tel : (514) 939-3989
Fax: (514) 939-3717