(Ecofin Agency) - Roxgold has released on Monday, the results of the feasibility study for the South Bagassi deposit at its Yaromoko gold project, in Burkina Faso.

The deposit’s development should boost Yaramoko’s annual output by 40% or 40,000 ounces, bringing it to 150,000 ounces per annum.

Moreover, the study stated that an investment of $29.6 million will be needed to start production at South Bagassi. The net value after tax of the project was estimated to $50 million and its internal profitability rate was valued at 53.2%.

“Like the neighbouring 55 Zone, the economics of this additional high grade feed source are highly accretive and generate increased cashflow from a modest capital outlay,” said John Dorward, CEO of Roxgold.

Over the first nine months of the year, the Yaramoko project has delivered an output of 91,970 ounces of gold, of which 24,410 oz in the third quarter alone.

Louis-Nino Kansoun