Senegal will soon mine its second gold mine after that of Sabodala. The first construction works will start next June in Kédougou, in the south-east of the country.
It will be the second active gold mine in Senegal after that of Sabodala, operated by Sabodala Gold Operations, a subsidiary of the Canadian Teranga Gold corporation, in the Kédougou region (700 km southeast of Dakar).
The first strikes of construction of the basic facilities will start next June, announced Aly Ngouille Ndiaye, Minister of Mines and Industry on May 3 during a press conference.
The exploration phase dates back to 2009. Exploitation will be carried out by Mako exploration, a subsidiary of the British company Toro Gold Limited, which specializes in prospecting and developing gold mines.
According to the presentation sheet of the Mako project, on the Toro Gold site, the site has mineral resources estimated at 22.85 tonnes. The mining group estimates that production of Mako will reach 140,000 ounces of gold per year during the first 5 years of operation.
The production of the first ingot is expected in the first half of 2017.
Local private sector
According to the Senegalese minister, the initial capital cost, including working capital and reserve, is estimated at $ 170 million. He also urged the local private sector to take 25% of the share capital of the mining company as stipulated in the 2003 Mining Code in force.
It is the financial intermediation company CGF Bourse which is piloting the acquisition of the Senegalese private sector.
Registered in the British territory of Guernsey, Toro Gold holds four exploration permits in Côte d’Ivoire (in Kokumbo, Kounahiri, Boundiali and Ferkessedougou) covering a total area of 1,500 square kilometers, as well as two permits in Gabon (Zomoko) .
Gold production in Senegal reached 6,588 tonnes in 2014, according to the latest figures compiled in World Mining Data 2016, an annual report produced by the World Mining Congress [PDF]. It is mainly provided by Sabodala Gold, which has produced an average of 210,000 ounces of gold per year (approximately 6 tonnes) since 2012 [PDF].
Its parent company, Teranga Gold, which is listed on the Toronto Stock Exchange, posted net income of $ 17.8 million in 2014.