Total
0
Shares
Firefinch (ASX:FFX) - Non Executive Chairman, Dr Alistair Cowden - The Market Herald
Non Executive Chairman, Dr Alistair Cowden
Source: Business News
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Firefinch (FFX) has released a new life of mine plan for the Morila Gold Mine in Mali, detailing planned operations up until 2030
  • The company, formerly known as Mali Lithium, rebranded upon the purchase of Morila in November last year to reflect its broadening focus
  • Over the past 21 years, Morila has produced 6.9 million ounces of gold
  • The new life of mine plan outlines an annual production rate of 160,000 ounces of gold for a total of 1.45 million ounces by 2030
  • Up until 2028, Firefinch expects Morila to generate net pre-tax free cashflow of US$603 million (around A$783 million)
  • Firefinch also intends to continue increasing the resources and reserves, with infill and extensional drilling scheduled to begin at the Morila super pit in June
  • Shares last traded at 38 cents on May 4, 2021

Firefinch (FFX) has released a new life of mine plan for the Morila Gold Mine in Mali, detailing planned operations up until 2030.

The company, formerly known as Mali Lithium, rebranded upon the purchase of Morila in November last year for US$29.7 million (around A$38.4 million).

Over the past 21 years, Morila has produced 6.9 million ounces of gold from mining and the reprocessing of tailings.

The new life of mine plan outlines an annual production rate of 160,000 ounces of gold for a total of 1.45 million ounces by 2030.

Calculations from 2021 to 2028 are based on the probable ore reserve of 23.8 million tonnes at 1.40g/t gold for 1.07 million contained ounces of gold.

This period is expected to generate net pre-tax free cashflow of US$603 million (around A$783 million), based on an all-in sustaining cost of US$1,124 (A$1,457) per ounce.

Firefinch Managing Director Dr Michael Anderson said the company is delighted with the outcome of the new plan.

"The rapid ramp up to annual production of 150,000 to 200,000 ounces highlights the unique advantage that Morila has in leveraging sunk capital. It is worth noting that the new plan is based upon existing drill data supplemented only by drilling at the satellite pits."

Earlier this month, Firefinch reported an 80 per cent increase to the mineral resource estimate for its satellite deposits.

"We have yet to drill a hole at the Morila Super Pit — our main focus, and we are very excited to follow up the many obvious targets with the realistic aim of adding significantly to the current resources and reserves," he added.

Firefinch has scheduled extensional and infill drilling to commence in June at the super pit, with the objective of bolstering the grade, confidence and size of resources and reserves.

"As a company we will continue to contribute significantly to Mali and its people and look forward to doing so. Approximately US$895 million (A$1160 million) is expected to be contributed in taxes, royalties, wages and salaries, and local procurement over the next 10 years, meaning our operation will substantially benefit shareholders and local stakeholders alike."

Shares last traded at 38 cents on May 4, 2021.

FFX by the numbers
More From The Market Herald
Archer Materials (ASX:AXE) - CEO, Mohammad Choucair - The Market Herald

" Archer Materials (ASX:AXE) uses advanced modelling to develop chips

Archer Materials (AXE) has made progress in developing its ¹²CQ quantum computing processor chips.
Wagners (ASX:WGN) secures contract renewal with Glencore

" Wagners (ASX:WGN) secures contract renewal with Glencore

Wagners (WGN) has secured a contract renewal for haulage services with Glencore.
3D Resources (ASX:DDD) taps Exploration Manager, gears up for drilling at Adelong Gold Project

" Xantippe Resources (ASX:XTC) granted three exploration licences

Xantippe Resources (XTC) has been granted three exploration licences for the Southern Cross region in Western Australia.   
Eden Innovations (ASX:EDE) showcases EdenCrete’s strength at Port of Savannah trial

" Mayur Resources (ASX:MRL) appoints COO for cement & lime business

Mayur Resources (MRL) has appointed a Chief Operating Officer (COO) for its cement and lime business.