- Gold explorer and producer Resolute Mining (RSG) has reported operations are continuing as usual while still complying with government regulations
- The ASX 200-lister operates four major projects, with three of them located in Africa
- Exploration drilling is ongoing at its Africa-based assets and the mines are continuing to process and produce gold
- However, as announced in January, Resolute is offloading its Ravenswood mine to EMR Capital and Golden Energy and Resources for $300 million
- This sale is expected to be completed by the end of the month
- Should mining activities be forced to slow down, Resolute is prepared with significant ore stockpiles and run-of-mine inventory
- The company has mined in Africa for over 25 years and has faced similar crises such as the Ebola epidemic
- Resolute Mining is up a slight 1.70 per cent and shares are trading for 89.5 cents each
While continuing mining operations, Resolute Mining (RSG) has taken actions to mitigate the impact of COVID-19.
Currently, Resolute operates the Syama Complex in Mali, the Mako Gold Mine in Senegal, the Ravenswood Gold Mine in Queensland, and the Bibiani Gold Mine in Ghana.
Luckily, the ASX 200-lister hasn’t reported any impacts from government-regulated COVID-19 rules. Mining and processing operations are continuing as normal at its Syama and Mako operations.
At Syama, underground mining and haulage is performing as expected and the sulphide processing circuit is fully operational. Open pit oxide mining operations are continuing at the Tabakoroni open pit mine, with haulage and processing tracking to plan.
A total of three drill rigs are currently active with exploration drilling focused on expanding the Tabakoroni underground resource.
At Mako, gold operations are continuing with a reduced workforce. The Ravenswood Gold Mine is also continuing to process stockpiled material while preparing for the sale of the mine to be complete.
In January 2020, Resolute announced it is selling Ravenswood to EMR Capital and Golden Energy and Resources for $300 million. This is expected to settle by March 31 2020.
At the Bibiani Gold Mine, care and maintenance activities are continuing as normal and Resolute’s corporate offices in Perth and London are having staff operate remotely using technology solutions.
“All non-essential travel has been suspended, both domestically and internationally, and we are following World Health Organisation guidelines for isolation and mitigation. Strict hygiene measures and social distancing protocols have been implemented at all sites and company locations,” Managing Director and CEO John Welborn said.
Despite the company’s projects continuing fairly normally, its three Africa-based assets face unique risks and challenges due to the COVID-19 pandemic.
To mitigate this and sustain operations, Resolute has assured it has significant ore stockpiles and run-of-mine inventory at its African assets in case it needs to reduce mining activity.
The company maintains excellent infrastructure and logistics. Additionally, existing stocks of critical consumables at Syama and Mako will maintain operations for several months and supplies for replacement consumables remain secure.
Resolute is confident in its ability to sustain operations in Africa as it has done so for the last 25 years. For over a decade, the company has poured gold continuously during which time it has faced challenges including the 2012 coup d’État and the Ebola epidemic.
“Further operational changes will be made where necessary in response to the
global pandemic,” John stated.
“We will remain Resolute, and are focused on keeping our people safe, and wherever possible keeping our mills running to produce gold,” he added.
Resolute Mining is up a slight 1.70 per cent and shares are trading for 89.5 cents each at 1:19 pm AEDT.