Syama Sulphide Circuit Update

RNS Number : 3242P

Resolute Mining Limited

09 October 2019

 

9 October 2019

Resolute Mining Limited

(Resolute or the Company)

Syama Sulphide Circuit Update

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Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) advises that the roaster, a key component of the sulphide processing circuit at the Company's Syama Gold Mine in Mali (Syama), has been taken offline due to the detection of a crack in the main external shell. 

As reported in the September Quarterly Production Update (see ASX Announcement dated 7 October 2019), maintenance and repair work was completed to the sulphide crusher apron feeder and roaster refractory lining during September. The roaster was successfully brought back into service following this work and was expected to operate normally during the December 2019 Quarter. However, upon reheating and under normal operational loads, a crack has been observed in the external shell of the roaster, unrelated to the maintenance and repair work in September.

The Company is currently cooling down the roaster to assess the full extent of the issue and identify the remedial action required. At this stage, the Company envisages the repair to the crack may have a material impact on production from the Syama sulphide circuit for the December 2019 Quarter. Once investigations are complete and a repair plan has been established, a further update on the timing of such activities as well as the impact of this roaster shutdown for FY19 (to 31 December) will be provided.

For further information, contact:

John Welborn Managing Director & CEO

Jeremy Meynert General Manager - Business Development & Investor Relations

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (MAR). Upon the publication of this announcement via a Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

Contact Information

Resolute John Welborn, Managing Director & CEO Jeremy Meynert, General Manager - BD & IR Telephone: [phone] Email: [e-mail] Web: www.rml.com.au

Berenberg (UK Corporate Broker) Matthew Armitt / Detlir Elezi Telephone: [phone] Tavistock (UK Public Relations) Jos Simson / Charles Vivian / Emily Moss / Annabel de Morgan Telephone: [phone] Email: [e-mail]

About Resolute

Resolute is a successful, dividend paying gold miner with 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa which have produced more than eight million ounces of gold.

Resolute's production and cost guidance for the 12 months to 31 December 2019 has been updated to 400,000 ounces of gold at an All-In Sustaining Cost of US$960 per ounce following the acquisition of Toro Gold Limited.  

Resolute owns four gold mines. Its flagship asset is the world class Syama Gold Mine in Mali (Syama) which can produce more than 300,000 ounces of gold per annum from existing processing infrastructure. Resolute is currently commissioning the world's first fully automated underground mine at Syama which will deliver a low cost, large scale operation with a mine life beyond 2032. The Mako Gold Mine in Senegal is a high quality, low cost asset with average annual production of ~140,000 ounces of gold. The Ravenswood Gold Mine in Australia and the Bibiani Gold Mine in Ghana are existing largescale assets which provide Resolute with significant production growth potential. Resolute has a pathway to annual gold production in excess of 500,000 ounces from a Global Mineral Resource base of more than 18 million ounces of gold.

Resolute trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG.

ASX/LSE: RSG Capital Summary Fully Paid Ordinary Shares: 903,153,734 Current Share Price: A$1.43 as at 9 October 2019 Market Capitalisation: A$1.29 billion FY19 Guidance (to 31 December): 400,000oz @ AISC US$960/oz

Board of Directors Mr Martin Botha Non-Executive Chairman Mr John Welborn Managing Director & CEO Ms Yasmin Broughton Non-Executive Director Mr Mark Potts Non-Executive Director Ms Sabina Shugg Non-Executive Director Mr Peter Sullivan Non-Executive Director

Contact John Welborn Managing Director & CEO Jeremy Meynert GM - BD & IR Level 2, Australia Place | 15-17 William St Perth, Western Australia 6000 T: [phone] [e-mail]

 

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