Avocet Mining PLC announced the new life of mine plan for its Inata gold mine in Burkina Faso. The announcement follows a phase of further drilling and evaluation of additional areas within the Inata mining licence and metallurgical testwork on the ore at Inata. A combination of the above two factors have resulted in a net increase in the total ounces recovered of 36%, or 253,000 ounces, compared with the previously published life of mine plan.
Annual production over the life of mine is now on average 21% higher at 116,000 ounces, with the mine life now extending to 2021. During 2013-2016, when mining was previously scheduled to occur, total tones mined are now reduced by 7%, but ounces recovered have increased by 16%. As a result, cash costs during this period (2013-2016) are on average 17% lower at USD 976 per ounce.

The new plan is therefore significantly more cash generative, with net cash flows (after capex) at current spot prices and hedging profile are estimated to average approximately USD 17 million in 2014 and 2015, and USD 30 million in 2016 to 2019. In 2020 and 2021, when mining has ceased and the plant is processing stockpiled material, over USD 100 million of net cash flow is forecast.