(Ecofin Agency) - Mining firm SEMAFO announced it has received the approval of the Burkina’s government regarding its application for an exploitation mining permit for its Natougou gold project. With the licence, the company will start developing the project within set deadlines.

Construction will commence in the next few weeks and production is expected to start in the second quarter of 2018.

The Natougou project is located in the South-Eastern part of Burkina Faso. Feasibility study conducted SEMAFO confirmed the project’s economic viability with a 48% post-tax internal profitability rate at a set price of $1,100/oz gold. The firm plans to produce over the first three years of exploitation, 226,000 oz/yr gold average.

SEMAFO is a Canadian firm listed on the Toronto stock exchange and on the North Europe market. It holds in Natougou the Tapoa permit which includes four adjacent exploration permits namely, Dangou, Pambourou, Boungou, and Bossari, covering over 772 km².

Louis-Nino Kansoun