Roxgold Continues to Rapidly Advance Séguéla Towards Formal Construction

Roxgold Inc. (“Roxgold” or the “Company”)  is pleased to announce an update on the advancement of the Séguéla Gold Project (“Séguéla”) in Côte d’Ivoire. The Company has taken several key steps in advancing Séguéla towards project construction in the coming months.

Séguéla gold project status update

EPC contractor selection

Roxgold has awarded preferred contractor status to Lycopodium Minerals Pty Ltd. (“Lycopodium”) and is currently negotiating the engineering, procurement, and construction (“EPC”) agreement for the 1.25Mtpa carbon-in-leach processing facility and other supporting infrastructure to be constructed at Séguéla. Lycopodium has a long established track record of developing and commissioning high quality gold projects on time and on budget in West Africa, having completed the construction of more than a dozen gold development projects in West Africa since 2009, including three projects in Côte d’Ivoire in the last three years. The fixed price agreement increases confidence in the total capital cost for the project, as it is by far the largest scope at Séguéla. With this agreement in the final stages of negotiation and several other key scopes now tendered and priced, approximately 65% of the pre-production capital estimate has now been fixed or finalised. This level of detail provides increased confidence around the pre-production capital estimate, which is expected to be in-line with the previous estimate of $142 M, as outlined in the Preliminary Economic Assessment (“PEA”) for the Definitive Feasibility Study (“Feasibility Study”). The Feasibility Study results are due for release next quarter.

Long-lead / critical path items

Along with the award of the preferred contractor status to Lycopodium, the Company has commenced detailed engineering and procurement of long-lead time items. Specifically, the SAG mill order has been awarded to Metso Outotec Corporation. Similarly, the plant site bulk earthworks tender has been awarded and contract expected to be executed and works commenced in Q2 to support the project critical path.

Infrastructure early-works

The Company has continued to advance its early works program at site including upgrading of the site access road and construction of the accommodation village. Contracts were awarded for camp bulk earthworks and camp construction, with first concrete poured last month. Surveying has been completed for the 33kV and 90kv power lines to tie into the existing 90kV transmission line running across the property which is connected to the 225kV ring main system around the country. These early work activities will enable a rapid ramp up to full construction upon completion of the Feasibility Study and Mine Financing in the second quarter of this year.

Mining contract

The Company has undertaken a competitive tender process and has conducted a detailed assessment of proposals received. The Company is currently completing diligence on the shortlisted parties and plans to award the mining contract later this year to allow for contractor mobilization, site establishment, and commencement of pre-production mining early next year.

“The Séguéla Project has rapidly become a cornerstone asset for Roxgold, and we believe that the Project will provide significant value to all our stakeholders,” commented John Dorward, President and Chief Executive Officer. “The Feasibility Study is on track to be announced in the second quarter, which we believe will demonstrate the ongoing evolution of the Séguéla PEA with an enhanced mine life and project economics with the inclusion of the high-grade Koula deposit into the mine plan.

“With today’s announcement awarding Lycopodium as our preferred EPC contractor, we now have direct visibility on a fixed-cost basis of over half of the overall project capital requirement. This has provided more certainty that the capital estimate in the Feasibility Study will be consistent with the estimate of $142 million in the PEA Study.

“Meanwhile, our early works activities have allowed us to begin our engagement with the local communities, initiating a Roxgold training program and hiring over 100 local workers in support of the project, with additional sub-contracting employment opportunities to carry out minor works. Roxgold is committed to having an enduring positive impact on our people and on the communities near our operations with the conviction that our presence in host communities should provide employees and neighbours with opportunities for growth and development.”

Catalysts and next steps