Fortuna about to break ground at Séguéla in Côte d’Ivoire
Bulk earthworks contractors have been mobilised at Canadian company Fortuna Silver Mines’ Séguéla gold project in Côte d’Ivoire and is about to break ground where the processing plant will be situated.
Long lead items have been procured, and the accommodation village is on track to be completed by the end of November 2021. The Fortuna Board of Directors recently decided to proceed with the construction of an open pit mine at Séguéla.
According to Jorge A. Ganoza, President and CEO of Fortuna, the company is ready to get construction under way immediately. Fortuna acquired the asset from Roxgold in July 2021.
“With a nine year mine life in reserves, 130,000 ounces of annual gold production in the initial six years, and compelling economics, Séguéla is planned to become our fifth operating mine with first gold by mid-2023,” says Ganoza.
Ganoza adds that Fortuna is in a solid financial position to fund the remaining USD162-million initial capital investment and that their teams in West Africa are ready to start.
“Parallel to construction, the company plans to continue with well-funded drill programs to test multiple remaining targets on the Séguéla property, where over the last 12 months, the exploration team has successfully delivered gold discoveries at the Koula, Sunbird and Gabbro North prospects,” says Ganoza.
According to Paul Criddle, COO – West Africa of Fortuna, the decision to commence construction of the still growing Séguéla Project, marks an exciting milestone for the company.
“The team has further de-risked the project by advancing detailed design and commencing procurement of long lead items, including the Semi-Autogenous Grinding (SAG) mill and the execution of critical path agreements including the Engineering, Procurement and Construction (EPC) agreement with Lycopodium for the processing plant.
“This has allowed Séguéla´s critical path to be protected as well as managing the cost risk by locking in substantial components of the initial capex in fixed price contracts,” says Criddle.
The updated Séguéla project’s total initial capital investment is USD173.5-million. About USD11.5-million of this amount has previously been approved by the Fortuna Board for early works items. The anticipated construction schedule is approximately 20 months, with ramp-up to name plate capacity expected in the third quarter of 2023.
WhyAfrica provides you with business intelligence that matters. WhyAfrica specialises in African affairs and natural resources. Africa is our business, and we want it to be yours too. To subscribe to WhyAfrica’s free newsletter or digital magazine, and for more news on Africa, visit the website at www.whyafrica.co.za or send a direct message. WhyAfrica will launch its first ever digital magazine in November. If you are interested in contributing or advertising, please contact me at firstname.lastname@example.org. To coincide with the first launch, we have a range of different packages and combo deals to give your company the greatest exposure to a rapidly growing, African readership.