MONTREAL, QUEBEC--(Marketwire - Dec. 11, 2012) - SEMAFO Inc. (TSX:SMF)(OMX:SMF) today provided the investment community with a production update following the Corporation's challenging third quarter. For October and November 2012, production totalled 43,600 ounces of gold. During the two-month period SEMAFO'S flagship Mana Mine produced a total of 33,300 ounces of gold, representing 76% of total production. Results include 2,300 ounces that remained in Mana's gold in circuit inventory as stated in the Corporation's third quarter MD&A.
In light of the encouraging results received to date from the high-grade Siou zone, the Corporation has decided to increase the 2012 exploration budget by one million dollars in order to carry out additional drilling over the area. Accordingly, two diamond drill rigs are currently active on the zone. SEMAFO's geology team expects to complete approximately 8,000 meters of core drilling prior to year-end and thereby add this new discovery to the December 31, 2012 resource estimate. The objective is to add the Siou zone to reserves by the end of 2013.
With production having returned to more acceptable levels, the Corporation expects to attain the lower end of its 2012 production guidance of between 235,000 and 260,000 ounces of gold at a cash operating cost of $700-$750.
Production numbers are preliminary and are subject to final adjustment.
SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation currently operates three gold mines: the Mana Mine in Burkina Faso, the Samira Hill Mine in Niger and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner to become a major player in its geographical area of interest. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include words or expressions such as "expects", "objective", "preliminary", "adjustment", "guidance", "committed", "evolve", "become", "pursuing", "growth", "opportunities" and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include the ability to complete approximately 8,000 meters of drilling prior to year-end, the ability to add the new discovery to the December 31, 2012 resource estimate, the ability to add the Siou zone to reserves by the end of 2013, the ability to attain the lower end of our 2012 production guidance of between 235,000 and 260,000 ounces of gold at a cash operating cost of $700-$750, the ability to execute on our strategic focus, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resources, delays, political and social stability in Africa (including our ability to maintain or renew licenses and permits) and other risks described in SEMAFO's documents filed with Canadian securities regulatory authorities. You can find further information with respect to these and other risks in SEMAFO's 2011 Annual MD&A and 2011 Annual Information Form as updated in our 2012 First Quarter MD&A, 2012 Second Quarter MD&A and 2012 Third Quarter MD&A and other filings made with Canadian securities regulatory authorities and available at www.sedar.com. These documents are also available on our website at www.semafo.com. SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.
The above information has been made public in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act.