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REG - Resolute Mining Ltd - September 2022 Quarterly Activities Report

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RNS Number : 3073E  Resolute Mining Limited  27 October 2022

27 October 2022

Quarterly Activities Report

For the quarter ending 30 September 2022 (September quarter or the Quarter)

 

Highlights

•    Total Recordable Injury Frequency Rate (TRIFR) a record low of 0.62,
with a 30% decrease from the preceding quarter

•    Net Debt down $26.3 million to $156.5 million with Cash and Bullion
of $63.5 million

•    Gold poured of 90,387 ounces (oz), reflects the fourth consecutive
quarter of increased production and highest gold production since the December
2020 quarter

•    Unit cash costs of $1,389/oz reduced by 6% benefiting from lower
open pit mining and processing costs at Syama and higher production

•    All-In Sustaining Cost (AISC) of $1,513/oz was 2% lower than the
June quarter

•    Quarterly gold sales of 90,404oz at an average realised gold price
of $1,809/oz

•    Updated Mineral Resource Estimates for Syama North with a 40%
increase to 2Moz

•    Commenced Pre-Feasibility Study (PFS) for Syama North development
alternatives at the Sulphide processing circuit with results expected in Q1
2023

•    Updated forecast production reflecting prioritisation of Syama North

•    $35 million repaid off the Syndicated Loan Facility

•    First instalment of $10 million from the final Bibiani tranche was
received, with the second instalment of $10 million received post quarter end

•    Moody's increased Resolute's ESG rating classification to "robust"

•    At quarter end, Resolute held 161,500oz of gold forward contracts at
an average price of $1,901/oz

•    Full year 2022 production and cost guidance maintained at 345,000oz
at an AISC of $1,425/oz

 

Note: Unless otherwise stated, all dollar figures are United States dollars
($).

 

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) is pleased to
present its Quarterly Activities Report for the period ended 30 September
2022.

Terry Holohan, CEO and Managing Director, commented, "Resolute recorded its
fourth consecutive quarter of increased production, despite a historically
challenging wet season. Operations at Syama continue to progress, capitalising
on the increased capacity of the Sulphide processing circuit with a record
44,746 ounces of gold poured from the sub-level cave mining operation.

During the Quarter Resolute was pleased to announce a 40% increase in Mineral
Resources to two million ounces at Syama North where gold is being discovered
at about $10/oz. These results confirm the potential for a new open pit
operation adjacent to the Syama processing complex. As a result, a PFS
investigating low capital expansion options for the Syama North satellite pit
and enhancement of the crushing and milling circuit performance commenced.

In addition, a heliborne aeromagnetic survey of the 85km strike was completed,
which provides detailed aeromagnetic information to aid the interpretation of
regional structures in the Syama Belt.

Whilst cost pressures continued to be experienced, full year production and
cost guidance of 345,000 ounces at an AISC of $1,425/oz, has been maintained."

 

Operations Overview

The September Quarter was another strong one for Resolute with gold poured of
90,387oz, consolidating on the improved performance across the Syama
operations. At the Syama Sulphide operation the grade continued to increase,
driving a 5% increase in gold poured. The Syama Oxide operations capitalised
on the preparatory work undertaken in the prior half year in advance of the
wet season, with improved grades and recoveries increasing gold poured. Mako's
reduction in gold poured was due to lower grades in accordance with the mine
plan and downtime for a SAG Mill reconfiguration during the Quarter.

As noted in Table 1 below, unit cash costs (AISC excluding non-cash
adjustments) improved compared to the prior quarter, notwithstanding some
continuing cost pressures on fuel and consumables. AISC reduced to $1,513/oz,
despite being impacted by $124/oz in non-cash adjustments relating to higher
processing costs for stockpiles, as well as gold in circuit inventory charges.

The Company's performance compared to the previous quarter and prior
comparable quarter is set out in the table below:

Table 1: Resolute Group Operational Performance Summary

Refer to the Appendix for a complete summary of Resolute's production and costs in the September 2022 quarter and the year to date.

Environmental Social Governance

Resolute's TRIFR at 30 September 2022 was 0.62, a record low attributable to
an ongoing focus on training and safety. The Company is also pleased to report
that Moody's has increased Resolute's ESG rating in the Asia Pacific Mining
& Metals sector, ranking Resolute 5th out of 66 in the sector with scores
above the sector average across each ESG component. The Company is also
pleased to report it is significantly aligned (84%) with the World Gold
Council's Responsible Gold Mining Principles (RGMPs) following its Year 2
external assurance process, against a mid-2023 deadline.

Syama, Mali

The Syama Sulphide operation produced 44,746oz, an increase of 5% from the prior quarter with further improvements in grades, at a lower AISC of $1,411/oz. The Oxide operations also delivered higher production at reduced costs, producing 13,876oz at an AISC of $1,746/oz. Further details of these two operations are set out below:

Syama Sulphide

Table 2: Sulphide Production and Cost Summary

Underground ore mined reduced by 3% impacted by the wet season compared to the
prior quarter. This was offset by a 9% increase in the Sulphide ore grade to
2.71g/t, attributable to improved mining methods over the last 12 months plus
scheduled access to higher grade zones.

Tonnes milled continue to be high with another consecutive record quarter of
52kt roasted for the Syama operation. Processing grade increased from the June
quarter by 10% reflecting the improved mining grade as well as continued
recovery from gold in circuit and concentrate ponds. As a result, gold
recovered was higher at 40,964oz and gold poured of 44,746oz was a 5% increase
from the prior quarter.

The AISC for the September quarter of $1,411/oz was 3% lower than the June
quarter, with reductions in both processing maintenance costs and sustaining
capital costs. The remainder of the improvement resulted from the increase in
gold poured. Unit cash costs for the September quarter of $1,237/oz were
significantly lower than AISC, due to various non-cash charges associated with
inventory movements.

Syama Oxide

Table 3: Oxide Production and Cost Summary

The preparation in the first six months of the year, particularly during the
June quarter, for the annual wet season ensured Oxide mining continued at the
Tabakoroni Splay pit and Syama North at Beta and BA04 with ore mined in line
with expectation and a significant reduction in waste moved. It is expected
that Q4 2022 will further benefit, in terms of grade and costs, from the work
completed over H1 2022.

Throughput for the Quarter was impacted by the wet season as expected, however
an increase in processed grade to 1.35g/t from the planned higher-grade ore
mined at BA04, and higher recoveries resulted in a 9% increase in gold poured.

Oxide AISC of $1,746/oz was 25% lower than the June quarter. Unit cash costs
for the September quarter of $1,588/oz were significantly lower than AISC, due
to various non-cash charges associated with inventory movements.

Mako, Senegal

Gold production at Mako during the Quarter totalled 31,765oz at an AISC of
$1,413/oz. The operational performance for Mako is set out in the table below.

Table 4: Mako Production and Cost Summary

Ore mined at Mako continued to increase quarter on quarter, with improved
mining performance due to favourable conditions in the pit, as the cutback
widens. Mine grade reduced by 11% compared to the June quarter, which was in
line with mine plan expectations.

Tonnes processed increased by 5% due to increased plant uptime and
modifications to the SAG Mill configuration which enabled an increase in
throughput rates. Process grade of 2.02g/t reflected the lower mine grade as
noted above, which impacted the overall gold poured of 31,775oz for the
Quarter.

AISC increased 17% to $1,413/oz, reflecting the higher material mined
impacting mining cost as well as continued pressure on consumables. AISC was
also impacted by the lower ounces produced during the Quarter.

Exploration

Total exploration spend for the September quarter was $3.1 million, with
accelerated drilling programs continuing in Mali and Senegal throughout the
Quarter. The full year guidance for exploration expenditure remains at $15
million.

Syama Exploration

At Syama, diamond and RC drilling programs continued to evaluate the Sulphide
resources located below the historic Oxide open pits at Syama North, with
drilling planned for the remainder of 2022.

The exploration drilling program at Syama North, initiated in 2021, recorded
significant Oxide and Sulphide gold mineralisation intersections in and around
the originally mined-out Oxide pits of A21 and Beta/BA-01 located within 4-8
km of the main Syama mining and processing complex.

Diamond and RC drilling has continued throughout 2022 with two rigs targeting
mineralisation extensions at both the A21 and Beta pits. The drilling was
highly successful with all the holes intersecting gold mineralisation and the
majority returning significant intersections. These excellent drill results
were reported to the market in June 2022 (see ASX announcement 16 June 2022).

Since the June announcement drilling has continued and results have been
consistently positive with ore grade intervals seen in most holes both down
dip, which will extend the Mineral Resources, and in-fill. A further
announcement on exploration drilling results and an updated Mineral Resource
Estimate for Syama North was reported to the ASX on 30 August 2022.

 

Better results received during the Quarter include:

QVRD557 - 20m @ 9.80g/t from 133m

BARD261 - 5m @ 30.02g/t from 134m

QVRC540 - 22m @ 2.81g/t from 94m

QVRC559 - 5m @ 18.38g/t from 97m

QVRC560 - 17m @ 4.10g/t from 137m

QVRC561 - 14m @ 5.56g/t from 111m

QVRC562 - 12m @ 4.40g/t from 43m

QVRC573 - 9m @ 16.00g/t from 123m

QVRD530 - 17m @ 5.22g/t from 189m

QVRD538 - 46m @ 1.83g/t from 143m

QVRD538 - 30m @ 3.88g/t from 202m

QVRD566 - 30m @ 3.84g/t from 183m

QVRD568 - 19m @ 8.22g/t from 140m

 

Of particular interest is the very wide mineralised zone in QVRD538 which
appears to be a zone of coalesced mineralised shears producing two excellent
intersections of 46m @ 1.83g/t Au from 143m and 30m @ 3.84g/t Au from 202m.

The mineralised interval including internal dilution is 89m @ 2.41g/t over the
entire zone.

Subsequently, an up-dip hole was completed and this hole QVRD566, confirmed
and expanded the wide mineralised zone with intersections of 30m @ 3.84g/t and
9m @ 3.67g/t Au.

Diamond drilling is now concentrating on further expanding this wide zone with
50m spaced holes in a pattern around QVRD538.

The high-grade results at the southern end of the A21 deposit reported in the
June announcement (QVRC533 - 27m @ 6.62g/t Au) have been supported with very
high-grade results in QVRD557 (20m @ 9.80g/t Au), QVRC559 (5m @ 18.38g/t Au),
and QVRD568 (19m @ 8.22g/t Au).

Syama North Mineral Resource Estimate

The Syama North deposit was re-estimated in July 2022 using mineralisation
wireframe constrained Ordinary Kriged methodology.

The Global Mineral Resources at Syama North is now estimated at 20 million
tonnes at 3.1g/t Au for 2.0 million ounces at a cut-off grade of 1g/t Au.
Resource classification, with almost 50% in the Measured and Indicated
classifications, and material types are shown below in Tables 5 and 6.

Using a 1g/t Au cut-off this new resource constitutes a 40% increase in total
resource ounces from the previous estimate quoted in the 31 December Reserve
and Resource Statement.

Table 5: Syama North Mineral Resources at 30 July 2022 (1g/t cut off)

 

Table 6: Syama North Mineral Resources at 30 July 2022 (1g/t cut off)

The drilling program will continue for the remainder of the year and is
expected to extend into the first half of 2023. Drilling now is concentrating
on converting the majority of the Inferred resources to Indicated category by
in-fill drilling, exploring extensions of wide mineralised intervals
intersected this year, a down dip.

A pre-feasibility study into low capital expansion options for the Sulphide
operations has commenced, with the results expected towards the end of 2022.

Aeromagnetic Survey

Additionally, in the September quarter, a high-resolution helicopter borne
aeromagnetic survey was completed across the entire 85 km strike of the Syama
belt under licence to complement the original low-resolution survey undertaken
by BHP in 1993. A total of 30,000 line kilometres were completed with the
processed data expected to be delivered in the December quarter.

The detailed aeromagnetic information will provide an excellent geophysical
dataset to aid the interpretation of regional structures related to the
mineralised systems in the Syama Belt.

African Gold Limited Earn-in agreement

Subsequent to quarter end, on 12 October 2022, the Company executed an earn-in
agreement with African Gold Ltd over the Syama Shear Zone Project (earn-in
project) located North of Resolute's Syama operations in Mali.

Resolute can earn up to an 80% interest in the earn-in project by completing
an agreed minimum exploration program over two years and the subsequent
completion of a feasibility study over eight years.

Syama North and Group Forecast Production Update

Syama Sulphide

Since the release of the life of mine plan ("March 2022 LOM Plan") 1  (#_ftn1)
the Company has had significant exploration success at Syama North 2  (#_ftn2)
with a 40% increase in this resource (Syama North Resource). The Syama North
Mineral Resource now totals 20 million tonnes at 3.1g/t for 2 million ounces
(Moz) of gold to a nominal depth of 150 metres.

Given the strong performance of the Sulphide processing circuit post the
planned major shutdown in Q1 2022, the Company is confident in its ability to
process Sulphides. Assuming significant amounts of the Resource convert to Ore
Reserves, Syama North is expected to provide flexibility to enable the
expansion of the Sulphide circuit. As a result, the Company has recently
commenced a PFS into low capital expansion options to further expand the
Sulphide operations with the results expected in the first quarter of 2023.

As a consequence of these developments, the Company has deferred the
development of the Tabakoroni underground (Tabakoroni), which is located ~35km
south of the Syama processing plant. The March 2022 LOM Plan assumed first
production from Tabakoroni in 2026, at an estimated capital cost of $80-100
million. The Syama North open pit option has been prioritised due to it being
lower capital, its proximity to the processing facilities and strong
metallurgical similarities to the existing Syama Underground mill feed 3 
(#_ftn3) .

The Syama North PFS is evaluating a number of low capital options to expand
the capacity of the Sulphide circuit by between 30-50% from a nominal 2.4
million tonnes per annum to between 3.1 and 3.6 million tonnes per annum
(Sulphide Circuit Expansion). It is envisaged that this expanded capacity
would be fed by material from the Syama North Resource, approximately 54% of
which is in the Inferred Resource category. There is a low level of geological
confidence associated with inferred mineral resources and there is no
certainty that further exploration work will result in the determination of
indicated mineral resources or that the production target itself will be
realised.

One of the options being considered is the conversion of the existing Oxide
crushing and milling circuit to provide the necessary additional capacity for
the Sulphide Circuit Expansion. The Oxide crushing and grinding circuit has an
Oxide capacity of 1.5Mtpa, with a modelled sulphide throughput capacity of up
to 1.0Mtpa 4  (#_ftn4) . The Syama roaster will require the addition of oxygen
to handle the expanded milling and crushing capacity. This would also provide
the flexibility to process Oxide material from Syama North or from future
discoveries. Further work is required to provide a reliable capital estimate
for this expansion. It is expected that the earliest such an expansion could
be delivered would be H1 2025. The Mineral Resource, and assumptions
underpinning the potential Sulphide Circuit Expansion have been prepared by
competent persons in accordance with the requirements in Appendix 5A (JORC
Code) 5  (#_ftn5) .

As noted above, for the nine months to 30 September 2022, Syama Sulphide gold
poured was 117,971oz. Should the post-roaster shut run rate from Q2 and Q3 be
maintained, gold poured for the full year 2022 would be approximately
160,000oz, compared to guidance of 145,000oz. This strong result for the nine
months to 30 September 2022 reflects the following factors:

·      Gold recovered from circuit and concentrate ponds of 16,924oz for
the nine months to 30 September, with more gold expected to be recovered in Q4
2022. From 2023 onwards gold poured is expected to more closely align with
gold recovered ex ROM where the present grade improvements are noted;

·      Following the planned shutdown, the crusher (85.3%), mill (94.8%)
and roaster (94.6%) have each achieved excellent availability; and

·      As flagged in the December 2021 Quarterly Activities Report, the
maintenance shutdown resulted in approximately 16,000oz of reduced production.

A number of low capital throughput initiatives are planned for execution in
2023 which are expected to increase the sustainable throughput of the Sulphide
circuit capacity to 2.4 million tonnes per annum from Q1 2024. Whilst
definitive production and cost guidance for 2023 will be provided to the
market in January 2023, the Company expects the Sulphide gold production for
2023 and 2024 to average around 160,000 to 165,000 ounces per annum.

Considering the current performance, as well as the ongoing PFS into the
Sulphide expansion options, production and cost forecasts for 2025 and beyond
are unable to be reliably estimated until the completion of the PFS. As such,
forecasts for 2025 and beyond which were previously provided in the March 2022
LOM Plan have been withdrawn.

Syama Oxide

The March 2022 LOM Plan had Syama Oxide mining and processing extending to
2025 and 2026, respectively, with annual production between 2022-2024 forecast
at 76,000 ounces per annum. In light of the inflationary pressures experienced
in 2022, together with an expectation of an expanded Sulphide circuit fed by
Syama North, the Company has re-optimised the remaining Syama Oxide Ore
Reserves.

Based on the current gold price, cost profile and the potential to expand the
Sulphide circuit, Oxide mining is expected to cease in 2024 with processing of
stockpiles expected to continue in 2025.

Oxide production is expected to be 60,000-65,000 oz in 2022, compared to 2022
guidance of 75,000oz. The lower production is largely due to lower than
expected grades. Over the last nine months, grade control drilling has been
carried out sufficiently ahead of production to provide greater confidence in
the mined grade than was the case in 2021. The lower Oxide production is
expected to be more than offset by higher Sulphide production, resulting in
overall Syama production guidance for 2022 of 220,000oz being maintained.

Definitive production and cost guidance for 2023 will be provided to the
market in January 2023. However, the Oxide gold production for 2023 and 2024
is expected to average around 65,000-70,000 ounces per annum, with 2023
expected to be 20-25% higher than 2024. More information on the future of
Oxides at Syama will be provided following the completion of the Syama North
PFS in Q1 2023. The Mineral Resource, and assumptions underpinning the
production at Syama Oxide have been prepared by competent persons in
accordance with the requirements in Appendix 5A (JORC Code) 6  (#_ftn6) .

In summary, the Syama forecast gold production (Sulphide + Oxide) for 2023-24
of between 220,000 and 235,000 ounces per annum is below the indicative
production provided in the March 2024 LOM of 245,000 to 260,000, reflecting:

·      reduced throughput in 2023 reflecting the requirement for two
mill relines, compared to one reline in the March 2022 LOM;

·      lower Sulphide grade in 2024 reflecting the detailed optimisation
undertaken of the sub-level cave following the first two full years of
operation;

·      lower forecast Sulphide recoveries to align with current
performance; and

·      a reduction in Oxide grades in 2024 which reflects the
re-optimisation of remaining Ore Reserves in the current inflationary
environment.

Mako

The March 2022 LOM Plan estimated the remaining production from the Mako
operation to be 607koz between 2022 and 2027. The AISC over this period, was
expected to average between $1,071/oz and $1,145/oz and within a range of
$800/oz to $1,400/oz. Whilst production over this period is not expected to
materially change, given the current inflationary pressures experienced in
2022 previously provided AISC forecasts for Mako have been withdrawn.
Definitive cost guidance for 2023 will be provided in January 2023.

CY22 Guidance

The Group maintains its full year 2022 production guidance of 345,000oz,
noting the strong performance at the Syama Sulphide and Mako operations which
are expected to offset Syama Oxide's lower production. The higher production
at Syama Sulphide and Mako is expected to largely mitigate inflationary
pressures including elevated fuel and consumable prices experienced in 2022.
As a result, the Group maintains its cost guidance at an AISC of $1,425/oz.
However, we note that unit costs may be adversely affected if input costs
continue to rise.

Corporate

Cash, Bullion and Listed Investments

()

(*Included in Operating Cash flows are $4.9 million of royalties, $6.1 million
of VAT and taxes, and movements in Bullion.)

Chart 1: Quarterly Cash and Bullion Movements in US dollars

The average realised gold price achieved for the Quarter was $1,809/oz
compared to the average Spot price of $1,730/oz. Asset sale proceeds of $11.8
million consisted of $10.0 million received for Bibiani and $1.8 million in
cash as part of the B2Gold acquisition of Oklo Resources (Oklo). In addition
to the cash received for the Oklo Shares, the Company received 1.2 million
B2Gold shares which had a value of $3.6 million at 30 September. Debt
repayments consisted of $25.0 million on the Term Loan Facility in line with
the biannual repayment schedule and $10.0 million on the Revolving Credit
Facility (RCF) upon receipt of the first instalment of the deferred Bibiani
payments ($22.7 million outstanding at 30 September 2022).

Included in the above is $12.9 million of working capital outflows relating to
consumables and critical spares. The continued impact of inflation across the
operations has resulted in ongoing outlays required to maintain adequate
levels of fuel, reagents and consumables as well as critical spares.

Before assets sales, debt service and government dividends the business
generated $17.5 million in free cash flow during the Quarter.

Balance sheet

Net debt decreased by $26.3 million to $156.5 million at 30 September 2022.
Total borrowings at 30 September 2022 were $220.0 million comprising $185.0
million drawn on the Term Loan Facility and RCF, overdraft facilities in Mali
of $34.7 million and Senegal of $0.3 million.

Bibiani sale proceeds

On 24 August 2022, Resolute agreed with Asante Gold Corporation (Asante) to a
deferred payment arrangement for the final tranche of $30.0 million (plus $2.7
million in respect of an environmental bond) previously due on 22 August 2022.
The revised payment terms are as follows:

·    payment of $10.0 million on or before 19 September 2022 (received);

·    payment of $10.0 million on or before 19 October 2022 (received post
quarter end); and

·    payment of $12.7 million and all interest payable on or before 18
November 2022.

The terms of the revised pay arrangements under the Share Sale Agreement
include payment by Asante of interest on outstanding amounts at commercial
rates. Upon receipt of these amounts, $30.0 million will be applied to the
Company's Revolving Credit Facility (RCF) as a mandatory prepayment (see
announcement dated 10 March 2022 for further details).

Hedging

At 30 September 2022, Resolute's forward sales commitments were:

Table 8: Committed Hedging Forward Sales in US dollars

The Company also has in place 12,000oz of zero cost collars in the March 2024
quarter comprising put options at an average of $1,600/oz and call options at
an average of $1,873/oz.

Resolute maintains a policy of discretionary hedging in compliance with
funding obligations, which require a minimum of 30% of the next 18 months of
forecast production to be hedged.

 

Reporting Calendar

25 January 2023 - December Quarterly Activities Report

 

Investor and analyst conference call
Resolute will host two conference calls for investors, analysts, and media on Thursday, 27 October 2022, to discuss the Company's Quarterly Activities Report for the period ending 30 September 2022. Both calls will conclude with a question-and-answer session.
Conference Call 1 (pre-registration required)

Conference Call 1: 12:00 (AWST, Perth) / 15:00 (AEDT, Sydney)

Pre-Registration Link: https://registrations.events/direct/OCP60142
(https://registrations.events/direct/OCP60142)

Participants will receive a calendar invite with dial-in details once the
pre-registration process is complete.

Conference Call 1 will also be streamed live online at:
http://www.openbriefing.com/OB/4917.aspx
(http://www.openbriefing.com/OB/4917.aspx)

Conference Call 2 (pre-registration required)

Conference Call 2: 09:00 (London) / 16:00 (AWST, Perth)

Pre-Registration Link: https://registrations.events/direct/OCP60143
(https://registrations.events/direct/OCP60143)

Participants will receive a calendar invite with dial-in details once the
pre-registration process is complete.

Conference Call 2 will also be streamed live online at:
http://www.openbriefing.com/OB/4918.aspx
(http://www.openbriefing.com/OB/4918.aspx)

About Resolute

Resolute Mining (ASX/LSE: RSG) is an African gold miner, developer and
explorer with more than 30 years of experience across Australia and Africa. To
date the company has produced over nine million ounces of gold. It currently
operates the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.
Resolute's gold production and cost guidance for FY2022 is 345,000oz at an
All-In Sustaining Cost of $1,425/oz.

Through all its activities, sustainability is the core value at Resolute. This
means that protecting the environment, providing a sage and productive working
environment for employees, uplifting host communities, and practicing good
corporate governance are non-negotiable priorities. Resolute's commitment to
sustainability and good corporate citizenship has been cemented through its
adoption of and adherence to the Responsible Gold Mining Principles (RGMPs).
This framework, which sets out clear expectations for consumers, investors,
and the gold supply chain as to what constitutes responsible gold mining, is
an initiative of the World Gold Council of which Resolute has been a member
since 2017. The Company is on track to reach full compliance with the RGMPs in
2023.

Contact

Appendix

September 2022 Quarter Production and Costs (unaudited)

Year-to-date 2022 Production and Costs (unaudited)

Competent Persons Statement

The information in this report that relates to the Exploration Results and
Mineral Resources is based on information compiled by Mr Bruce Mowat, a member
of The Australian Institute of Geoscientists. Mr Bruce Mowat has more than
five years' experience relevant to the styles of mineralisation and type of
deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person, as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (the JORC Code). Mr Bruce Mowat is a full-time employee of the
Resolute Mining Limited Group and holds equity securities in the Company. He
has consented to the inclusion of the matters in this report based on his
information in the form and context in which it appears. This information was
prepared and disclosed under the JORC Code 2012 except where otherwise noted.

The information in this report that relates to the Sulphide Circuit Expansion
including the related production targets and resultant financial forecast
information is based on information compiled by Mr Terry Holohan, C.Eng (UK),
a member of the Institute of Materials, Minerals and Mining (IOM3). Mr Holohan
has more than 40 years' experience relevant to processing of Ores similar to
the type under consideration and to the activity which he is undertaking to
qualify as a Competent Person, as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (the JORC Code). Mr Holohan is a full-time employee of the
Resolute Mining Limited Group and has consented to the inclusion of the
matters in this report based on his information in the form and context in
which it appears. This information was prepared and disclosed under the JORC
Code 2012 except where otherwise noted.

The information in this report that relates to the Syama Oxide including the
related production targets and resultant financial forecast information is
based on information compiled by Mr Terry Holohan, C.Eng (UK), a member of the
Institute of Materials, Minerals and Mining (IOM3). Mr Holohan has more than
40 years' experience relevant to processing of Ores similar to the type under
consideration and to the activity which he is undertaking to qualify as a
Competent Person, as defined in the 2012 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the
JORC Code). Mr Holohan is a full-time employee of the Resolute Mining Limited
Group and has consented to the inclusion of the matters in this report based
on his information in the form and context in which it appears. This
information was prepared and disclosed under the JORC Code 2012 except where
otherwise noted.

For details of the Ore Reserves used in this announcement, please refer to the
ASX announcement dated 4 March 2022 titled "Ore Reserves and Mineral Resource
Statement" and the ASX announcement dated 30 August 2022 titled "Two Million
Ounce Mineral Resource at Syama North". For the purposes of ASX Listing Rule
5.23, Resolute confirms that it is not aware of any new information or data
that materially affects the information included in the original market
announcements relating to exploration results or estimates of Mineral
Resources or Ore Reserves referred to in this announcement and, in the case of
Mineral Resources and Ore Reserves, that all material assumptions and
technical parameters underpinning the estimates in the relevant market
announcement continue to apply and have not materially changed. Resolute
confirms that the form and context in which the Competent Person's findings
are presented have not been materially modified from the original market
announcement.

Cautionary Statement about Forward-Looking Statements

This announcement contains certain "forward-looking statements" including
statements regarding our intent, belief, or current expectations with respect
to Resolute's business and operations, market conditions, results of
operations and financial condition, and risk management practices. The words
"likely", "expect", "aim", "should", "could", "may", "anticipate", "predict",
"believe", "plan", "forecast" and other similar expressions are intended to
identify forward-looking statements. Indications of, and guidance on, future
earnings, anticipated production, life of mine and financial position and
performance are also forward-looking statements. These forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause Resolute's actual results, performance and achievements or
industry results to differ materially from any future results, performance or
achievements, or industry results, expressed or implied by these
forward-looking statements. Relevant factors may include (but are not limited
to) changes in commodity prices, foreign exchange fluctuations and general
economic conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development, including the risks
of obtaining necessary licences and permits and diminishing quantities or
grades of reserves, political and social risks, changes to the regulatory
framework within which Resolute operates or may in the future operate,
environmental conditions including extreme weather conditions, recruitment and
retention of personnel, industrial relations issues and litigation.

Forward-looking statements are based on Resolute's good faith assumptions as
to the financial, market, regulatory and other relevant environments that will
exist and affect Resolute's business and operations in the future. Resolute
does not give any assurance that the assumptions will prove to be correct.
There may be other factors that could cause actual results or events not to be
as anticipated, and many events are beyond the reasonable control of Resolute.
Readers are cautioned not to place undue reliance on forward-looking
statements, particularly in the current economic climate with the significant
volatility, uncertainty and disruption caused by the COVID-19 pandemic.
Forward-looking statements in this document speak only at the date of issue.
Except as required by applicable laws or regulations, Resolute does not
undertake any obligation to publicly update or revise any of the
forward-looking statements or to advise of any change in assumptions on which
any such statement is based. Except for statutory liability which cannot be
excluded, each of Resolute, its officers, employees and advisors expressly
disclaim any responsibility for the accuracy or completeness of the material
contained in these forward-looking statements and excludes all liability
whatsoever (including in negligence) for any loss or damage which may be
suffered by any person as a consequence of any information in forward-looking
statements or any error or omission.

 

Authorised by Mr Terry Holohan, Managing Director and Chief Executive Officer

 1  (#_ftnref1) ASX announcement dated 4 March 2022, and entitled "Life of
Mine Production Update

(( 2  (#_ftnref2) ))(.) Refer to ASX announcement entitled "Two Million Ounce
Mineral Resource at Syama North" dated 1 September 2022.

 3  (#_ftnref3) Although metallurgical test work will be required during the
PFS and subsequent Definitive Feasibility Study (DFS), material from the Syama
North pits was successfully processed through the Sulphide circuit in 2018.

 4  (#_ftnref4) Refer to the assumptions detailed in Section 4 of the Appendix
(pages 35 to 43) to the Company's Ore Reserves and Mineral Resource Statement
at 31 December 2021, released to the ASX on 4 March 2022.  Otherwise than as
detailed in this ASX announcement, those assumptions continue to apply

 5  (#_ftnref5) Refer to Competent Person Statement below.

 

 6  (#_ftnref6) Refer to Competent Person Statement below and to the
assumptions detailed in Section 4 of the Appendix (pages 35 to 43) to the
Company's Ore Reserves and Mineral Resource Statement at 31 December 2021,
released to the ASX on 4 March 2022. Otherwise than as detailed in this ASX
announcement, those assumptions continue to apply.

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