Resolute Increase’s Mako’s Mine Life and Gold Production (ASX:RSG)

Resolute Increase’s Mako’s Mine Life and Gold Production (ASX:RSG)

Resolute Mining Ltd [ASX:RSG] said today they’ve increased the life of their Mako Gold Mine by an extra two years. The mine will now be producing gold until 2027, a total of nine years instead of seven.

Mako Gold Mine is located in Senegal, in West Africa. Resolute started production in Mako in January 2018 and holds 90% of interest in the mine while the Senegal government has the remaining 10%. Resolute also operates the Syama Gold Mine in Mali and owns the Bibiani Gold Mine in Ghana.

Mako’s longer mine life means more gold production too

Mako’s extended mine life to 2027 will also increase the mine’s gold production by 39%. Resolute is now expecting Mako will produce 1.24 million ounces, or 350,000 ounces more than the 890,000 ounces they had detailed in the original mine plan. They’ve also updated their AISC (all in sustaining costs) to US$848 per ounce over the nine years of the mine life.

Resolute is looking at an average production of 140,000 ounces over the next five years. Between 2020 and 2027, Resolute is planning to mine 900,000 ounces of gold at an average AISC of US$900 per ounce for this period.

The company said their exploration activities in Senegal last year were spent mostly in trying to extend Mako’s lifespan. That’s why they carried out diamond drilling in the north east corner of the Mako open pit.

According to the company, the 15 holes yielded ‘excellent’ results and confirmed there was

a coherent high-grade Iode of gold mineralisation’ present in the area.

Resolute is one of the winners today

The RSG share price jumped higher on the news. Resolute Mining Ltd [ASX:RSG] is up by close to 2.5% at time of writing, with shares trading at $1.185.

More gold production is good news for the miner, especially when gold is trading at over US$1,800.

Gold is trading at a nine-year high. The pandemic has stopped the world. The US Federal Reserve has flooded the system with money to keep the economy going, but there are fears this will bring inflation.

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Selva Freigedo