Vancouver-based junior True Gold (TSX-V:TGM) has released a feasibility study for its flagship Karma project in Burkina Faso.
According to the feasibility report, Karma will produce 97,000 ounces of gold per year over an 8.5-year mine life. Cash costs are forecasted at US$591 per ounce.
Design of the mine is based on conventional heap-leach technology.
The project requires an initial capital investment of US$131.5 million. Capital expenditures over the life of the project are forecasted to be US$171.4 million.
The proposed implementation schedule – which includes pre-stripping and mine site construction – is expected to take 18 months, once True Gold receives project debt.
Karma received an environmental permit in September.
About 500 people will be employed during construction and nearly 300 full-time positions will be needed during production.
Construction of the mine, however, will require the relocation of nearby residents. Prior to building the leach pad, 35 people will be moved, while 400 people will be moved during the second year of operations.
A financial agreement has been reached with the community for re-settlement.
The company anticipates the first gold pour at Karma by the end of 2015.
"The Karma Project is an ideal foundation upon which to build a mining company. It is straightforward, financeable, resilient and has tremendous room to grow," said Mark O'Dea, True Gold executive chairman.
