TORONTO--(BUSINESS WIRE)-- Roxgold Inc. (“Roxgold” or the “Company”) (TSX: ROXG) (OTCQX: ROGFF) is pleased to report its preliminary production results for the second quarter of 2020 (“Q2 2020”) from the Company’s Yaramoko Mine Complex (“Yaramoko”) located in Burkina Faso.

Highlights:
• Produced 32,812 ounces of gold at an average grade of 8.2 grams per tonne in Q2, totalling 65,192 ounces produced for the year to date
• Reported quarterly plant throughput of 1,399 tonnes per day (“tpd”) for a total of 127,309 tonnes which exceeded increased nameplate capacity of 1,100 tpd by approximately 27%
• Maintained upper end of annual gold production guidance at 120,000 and 130,000 ounces subject to existing operating conditions being maintained
• Continued operations with management and mitigation of COVID-19 with no new infections at site
• Advanced Séguéla infill and infrastructure drilling to support Feasibility Study which is on track for early 2021

“Our operations in the first half of this year have continued to operate well thanks to the foresight and rapid response of our regional teams to manage and mitigate the impacts of COVID-19 on our employees, contractors, and communities in which we operate,” said John Dorward, President and CEO. “Despite these challenges, Yaramoko continued its strong operating performance with gold production of 65,192 ounces for the first half of the year – putting the company well on its way towards achieving our annual production guidance of 120,000 to 130,000 ounces. It was pleasing to see record mined ore grade of 10.6 grams per tonne at Bagassi South with development ore grades exceeding expectations, whilst mining activities in the 55 Zone reported higher grades in newly accessed stoping areas.

Meanwhile, we are continuing to advance Séguéla towards the completion of a Feasibility Study ahead of an ultimate construction decision early next year. Drilling activities at the project ramped up in May with four rigs active as we look to build ounces through the strike and depth extension potential at Ancien, Agouti and Boulder – highlighted by recent exploration results from Séguéla which returned 7m of 28.8 g/t along strike at Ancien – followed thereafter by testing of high priority satellite deposits on our land package.”

Table 1 – Q2 2020 Production Metrics
Q1 2020 Q2 2020
Ore mined 134,472 112,523
Ore processed (tonnes) 125,879 127,309
Ore processed (tpd) 1,383 1,399
Head grade (g/t) 8.7 8.2
Recovery (%) 97.9 98.0
Gold ounces produced 32,380 32,812
Gold ounces sold 30,126 36,279
Average realized selling price (per ounce) $1,595 $1,712

Operating Summary
The Yaramoko Mine Complex produced 32,812 ounces, based on processing 127,309 tonnes at an average grade of 8.2 grams per tonne and average mill recoveries of 98%. Mining activities reported 112,523 tonnes of ore mined, which was lower than last quarter as Yaramoko operated with reduced personnel due to COVID-19 travel restrictions and isolation protocols in Q2. The balance of processed ore was supplemented with stockpiled material.

Mining operations at the 55 Zone and Bagassi South saw notable improvement through the quarter, as mined grades at Bagassi South averaged a record 10.6 g/t in the quarter, while 55 Zone reported higher grades at depth with an average mined grade of 11.6 g/t in June. Decline development in the 55 Zone has now reached the 4734 level, which is approximately 580 metres below surface, with increased ore drive development. Decline development at Bagassi South has commenced on the 5061 level, which is approximately 250 metres below surface, and continues to advance as planned. Good progress on ore development has seen the Bagassi South mine largely developed, providing additional stoping access for the remainder of the year.

The processing plant availability was 96.7% in the quarter and reported an average throughput rate of 1,399 tonnes per day exceeding nameplate capacity by approximately 27%. Gold ounces sold of 36,279 ounces were higher than production due to the timing of gold shipments at the end of the prior quarter.

Corporate Update
As announced on June 30, 2020, the Company successfully executed documentation to refinance its existing Yaramoko Facility and secured an additional US$20 million as a revolving credit facility to provide increased liquidity and financial flexibility. The amended Facility refinances the current outstanding loan balance of US$37 million with revised repayment terms extending the repayment period from June 30, 2021 to December 30, 2022 which reflects the Company’s continued success in extending the project’s mine life. The updated loan repayment schedule for 2020 is as follows:
• June 30, 2020 – No repayment
• September 30, 2020 – No repayment
• December 31, 2020 - US$1.48 million

The Company also lodged its 2019 income tax return in Burkina Faso in April 2020. As the Company had fully utilized its cumulative losses in 2018, the Company’s position was an income tax payable of US$5.6 million which was also paid in April 2020.

2020 Guidance
Based upon Q2 production results, Roxgold remains on track to meet its annual production guidance target of between 120,000 and 130,000 ounces from the Yaramoko Mine Complex absent any significant deterioration in operating conditions.

Upcoming Catalysts Event Timing
Ongoing infill, expansion and Feasibility-support drilling program at Séguéla
Q3 2020
Satellite target exploration at Séguéla H2 2020
Drilling results from Boussoura H2 2020
Underground drilling program in 55 Zone at Yaramoko Mine Complex H2 2020
Feasibility Study for Séguéla H1 2021
Séguéla construction decision H1 2021

Qualified Persons
Paul Criddle, FAusIMM, Chief Operating Officer for Roxgold Inc., a Qualified Person within the meaning of National Instrument 43-101, has reviewed, verified and approved the scientific and technical disclosure contained in this news release.