Roxgold Receives Mining Permit and Breaks Ground at Séguéla Ahead of Initial Gold Production In 2022

Roxgold Inc. (“Roxgold” or the “Company”)  is pleased to announce that it has received confirmation of the signed exploitation (mining) permit from the government of Côte d’Ivoire to develop and operate the Séguéla Gold Project (“Séguéla”) in Côte d’Ivoire. Alongside this development, Roxgold has commenced early works at Séguéla to protect the project critical path and facilitate a rapid ramp up to full construction next year towards commissioning of Séguéla in 2022.

“We are delighted to announce the approval of the exploitation permit which represents a significant milestone in the development of Séguéla ,” commented John Dorward, President and Chief Executive Officer. “It has been an exceptional year in progressing Séguéla having grown the total mineral resources to over a million ounces, announcing maiden resources at Koula, Ancien, Agouti and Boulder, completing a preliminary economic assessment, and culminating in the environmental and exploitation permit approvals. We thank the government of Côte d’Ivoire for its demonstrated support and commitment to fostering a positive investment climate and we look forward to a lasting and mutually beneficial partnership. The Séguéla Project continues to be a key priority for Roxgold, and we believe that the development of the project will provide significant value to all our stakeholders.

“In addition to the positive impact Séguéla will have on the surrounding communities, the project has the potential to more than double our production for shareholders within a short time frame and without the need for additional equity. The confirmation of the permit and the start of early works is a major accomplishment towards achieving our goal of becoming West Africa’s next multi-asset producer.”

Exploitation permit

The exploitation permit has been approved by the Council of Ministers and signed as a mining decree by the President of Côte d’Ivoire, and other governmental authorities. The decree grants Roxgold an industrial mining permit for development and operation of the Séguéla Gold Project. The permit is valid for 10 years, from December 9, 2020, with opportunities to renew as further growth and expansion is proven.

The Company’s final permitting milestone at Séguéla is the completion of the Mining Convention negotiation process. Discussions with the government of Côte d’Ivoire are ongoing.

Early works

Following the receipt of the Environmental and Social Impact Assessment in September of this year (refer to Company press release dated September 28, 2020) and in anticipation of a positive development decision, the Company has broken ground at Séguéla to optimize the project critical path activities and expedite production at Séguéla.

Initial works include upgrading the site access road, construction of the accommodation village, and front end engineering of the processing plant. The intention of the early works activities is to enable a rapid ramp up to full construction next year with the aim of production commencing in 2022.

The Company is on track to complete the Feasibility Study for Séguéla in the first half of 2021.

Catalysts and next steps