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News Update


Pit Wall Fails at Burkina Faso Mine
News Update

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The company will suspend ore processing there while it remedies the situation.

SEMAFO Inc. (SMF:TSX; SMF:OMX) reported in a news release that a Wona pit wall failed at the Mana mine in Burkina Faso on Friday, but no one was injured and no equipment damaged as a result.

Mining is currently taking place in the southern part of the Wona pit, not in the northern portion, the area where the pit wall failed. However, the company was set to mine 45,000 ounces (45 Koz) from Mana North starting later this month and continuing until year-end 2019, according to this year's mine plan.

"To mine securely and regain access to ore in Wona North, we will have to push back the pit wall and mine approximately 6 million tons of waste material," the release noted. This will delay mining of ore there until Q1/20. Because the 6 million tons were part of the 2021 mine plan, the mining of them does not represent additional tons or cost.

The lack of ore coming from Wona North throughout the rest of 2019 will result in an insufficient amount of ore to feed the Mana mill for about 10 weeks. Therefore, SEMAFO plans to suspend processing at the mill between mid-August and October's end.

In terms of the overall impact to the Mana operation, SEMAFO expects a roughly 40–50 Koz decrease in production from it. As such, the company lowered 2019 guidance for the project to 130–140 Koz from 170–190 Koz. The all-in sustaining cost guidance for Mana, and all guidance for the Siou pit remain the same.


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