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  • Yaramoko Mine, Burkina Faso

Yaramoko Mine Video

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Commodity
Gold
Ownership
90%
Burkina Faso Government holds 10%
Mill throughput
512,276
tonnes in 2020
Claim block area
23,000
hectares
Deposit type
Orogenic gold
Mining method
Longhole stoping
with cemented
rock fill

OPERATING HIGHLIGHTS

 20211

2022E1,2

Tonnes milled (000)

259

516

Gold production (koz)

57.5

95 - 115

AISC2,3,4,5 (US$/oz Au)

--

$1,300 - $1,650

Notes:

  •  Refer to Fortuna news releases dated January 18, 2022, "Fortuna reports 2021 full year record production of 305,859 gold equivalent ounces and issues 2022 annual guidance" | Tonnes milled and gold production for 2021 is for the second semester of 2021.
  • Cash Cost and all-in sustaining cost (AISC) are non-GAAP financial measures which are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures disclosed by other issuers.  Refer to "Non-IFRS Financial Measures" in the Company’s 2021 management discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2021 dated November 10, 2021 (“Q3 MD&A 2021”), which is available under Fortuna's SEDAR profile, and the note regarding “Non-IFRS Financial Measures” on this website. 
  • The following table provides the cash costs and AISC for the four operating mines for the nine months ended September 30, 2021 as follows:
    • MineCash Cost(a)AISC(a),(b),(c)
      SILVER(US$/t)(US$/oz Ag Eq)
      San Jose, Mexico74.2214.13
      Caylloma, Peru85.1718.17
      GOLD(US$/oz Au)(US$/oz Au)
      Lindero, Argentina6351,182
      Yaramoko, Burkina Faso7201,188
    • (a) Cash Cost and AISC are non-GAAP financial measures. Refer to the note regarding "Non-IFRS Financial Measures" on this Website
    • (b) Presented on a cash basis
    • (c) Silver equivalent was calculated using the realized prices for gold (US$1,783 per ounce), silver (US$25.80 per ounce), lead US$0.98 per pound) and zinc (US$1.31 per pound) for the nine months ended September 30, 2021
    • (d) Further details on the cash costs and AISC for the nine months ended September 30, 2021 are disclosed on pages 21, 23 and 24 (with respect to cash costs) and pages 22, 24 and 25 (with respect to AISC) of the Q3 MD&A 2021 which is available under Fortuna's SEDAR profile at www.sedar.com and is incorporated by reference into this news release, and the note regarding “Non-IFRS Financial Measures” on this website
    • (e) The estimated increase in all in sustaining costs at Yaramoko for 2022 are due to decreased estimated gold ounce production coupled with increased operating and capital costs as mining moves to the deeper regions of the underground mine
  • The most comparable financial measure to cash costs is cost of sales. Please see the condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2021 and pages 21, 23 and 24 of the Q3 MD&A 2021 for a reconciliation
  • AISC includes production cash cost, commercial and government royalties, mining tax, export duties (as applicable), worker’s participation (as applicable), subsidiary G&A, sustaining capital expenditures, and Brownfields exploration and is estimated at metal prices of US$1,700/oz Au, US$22/oz Ag, US$2,100/t Pb, and US$2,700/t Zn. AISC excludes government mining royalty recognized as income tax within the scope of IAS-12.
  • The most comparable financial measure to AISC is cost of sales. Please see the condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2021 and pages 22, 24 and 25 of the Q3 MD&A 2021 for a reconciliation.
  • Totals may not add due to rounding.

LOCATION

The Yaramoko Mine is situated in the Houndé greenstone belt region in the Province of Balé in southwestern Burkina Faso. The property is located approximately 200 kilometers southwest from the capital city of Ouagadougou (Latitude: 11° 45’ 25” N, Longitude: 3° 16’ 58” W).

Our operations add value to Burkina Faso’s formal economy by providing contracts and stable jobs for local people and by helping to expand the revenue base of our host government through income taxation, national social security system contributions and the royalties we pay every time we ship gold.

Mineral Reserves and Resources

Mineral Reserves – Proven and Probable as of June 30, 2022
PropertyClassificationTonnes
(000)
Au
(g/t)
Contained Au
(koz)
55 Zone undergroundProven294.834
Probable7437.42177
Proven + Probable7727.32182
55 Zone open pitProven725.7913
Probable734.6911
Proven + Probable1455.2324
109 Zone open pitProven   
Probable1601.779
Proven + Probable1601.779
Bagassi South QV Prime undergroundProven   
Probable1426.7531
Proven + Probable1426.7531
Bagassi South undergroundProven   
Probable104.441.4
Proven + Probable104.441.4
StockpilesProven1802.5915
Probable   
Proven + Probable1802.5915
TOTALProven2813.6433
Probable1,1286.33230
Proven + Probable1,4095.80263
Mineral Resources– Measured and Indicated (exclusive of Reserves) as of June 30, 2022
PropertyClassificationTonnes
(000)
Au
(g/t)
Contained Au
(koz)
55 Zone undergroundMeasured816.3517
Indicated1996.4241
Measured + Indicated2806.4058
55 Zone open pitMeasured   
Indicated464.186
Measured + Indicated464.186
109 Zone open pitMeasured   
Indicated321.632
Measured + Indicated321.632
Bagassi South QV Prime undergroundMeasured   
Indicated747.2717
Measured + Indicated747.2717
Bagassi South undergroundMeasured   
Indicated547.0712
Measured + Indicated547.0712
    TOTALMeasured816.3517
Indicated4046.0278
Measured + Indicated4856.0895
Mineral Resources– Inferred (exclusive of Reserves) as of June 30, 2022
PropertyClassificationTonnes
(000)
Au
(g/t)
Contained Au
(koz)
55 Zone undergroundInferred266.746
55 Zone open pitInferred413.625
109 Zone open pitInferred31.350
Bagassi South QV Prime undergroundInferred226.124
Bagassi South undergroundInferred496.0710
TOTALInferred1415.3925
  • Notes:
    • Mineral Reserves and Mineral Resources are as defined by the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves
    • Mineral Resources are exclusive of Mineral Reserves
    • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
    • Factors that could materially affect the reported Mineral Resources or Mineral Reserves include: changes in metal price and exchange rate assumptions; changes in local interpretations of mineralization; changes to assumed metallurgical recoveries, mining dilution and recovery; and assumptions as to the continued ability to access the site, retain mineral and surface rights titles, maintain environmental and other regulatory permits, and maintain the social license to operate
    • Mineral Resources and Reserves for the Yaramoko Mine are estimated and reported as of June 30, 2022
    • Mineral Reserves for Yaramoko are reported at a cut-off grade of 1.26 g/t Au for the 55 Zone open pit, 0.73 g/t Au for the 109 Zone open pit, 4.1 g/t Au for 55 Zone and Bagassi South underground (SLS), 3.1 g/t Au for Bagassi South QV Prime (shrinkage) based on an assumed gold price of US$1,600/oz, metallurgical recovery rates of 98.0%, underground mining costs of US$135/t, processing cost of US$31/t and G&A costs of US$28/t, surface mining costs of US$3.44/t, processing cost of US$27/t and G&A costs of US$25/t. Underground average mining recovery is estimated at 86% (SLS) and 90% (shrinkage) for Bagassi South, 92% (SLS) for 55 Zone stopes and 100% for sill drifts. A mining dilution factor of 10% has been applied for sill drifts, 0.6 meter and 0.4 meter dilution skin has been applied for SLS and shrinkage mining respectively. Surface mining recovery is estimated to average 100% and mining dilution 0% having been accounted for during block regularization to 5 meters x 5 meters x 5 meters size within an optimized pit shell and only Proven and Probable categories reported within the final pit designs. Yaramoko Mineral Resources are reported in situ at a gold grade cut-off grade of 0.9 g/t Au for the 55 Zone open pit, 0.5 g/t Au for the 109 Zone open pit, and 2.9 g/t Au for underground (Zone 55 and Bagassi South), based on an assumed gold price of US$1,700/oz and the same costs, metallurgical recovery and constrained within an optimised pit shell. The Yaramoko Mine is subject to a 10% carried interest held by the government of Burkina Faso.
    • Matthew Cobb, (MAIG #5486) is the Qualified Person responsible for Mineral Resources being an employee of Roxgold Inc. (a wholly-owned subsidiary of Fortuna), Raul Espinoza (FAUSIMM (CP) #309581) is the Qualified Person responsible for Mineral Reserves, being an employee of Fortuna
    • Totals may not add due to rounding procedures

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