SEMAFO Inc.
TSX : SMF
OMX : SMF

SEMAFO Inc.

February 19, 2015 08:24 ET

SEMAFO's Reserves and Measured and Indicated Resources Increase to 5.0 Million Ounces

Siou Reserves Up 27% Year over Year

MONTREAL, QUEBEC--(Marketwired - Feb. 19, 2015) - SEMAFO Inc. (TSX:SMF)(OMX:SMF) today announced its 2014 year-end mineral reserve and resource statement. As at December 31, 2014, total proven and probable mineral reserves were 2,240,300 ounces of gold. Measured and indicated resources totaled 2,756,900 ounces, representing a 13% increase over 2013. Reserves and measured and indicated resources increased to 5.0 million ounces of gold.

Highlights

  • Mana total mineral reserves and resources increased by 250,000 ounces
  • Mana reserve grade augmented by 7% to 3.01 g/t Au
  • Siou's reserves stand at approximately 1.0 million ounces
  • Siou remains open at depth and laterally
  • Measured and indicated mineral resources increased by 13%

The changes in reserves are net of 2014 depletion due to production. All mineral resources reported are exclusive of mineral reserves. Reserves and resources were estimated using a gold price of $1,100 and $1,400 per ounce, respectively. All amounts are in US dollars unless otherwise stated.

Mana

At the end of 2014, Mana's mineral reserves totaled 23,144,000 tonnes at an average grade of 3.01 g/t Au for 2,240,300 ounces, compared to 25,516,100 tonnes at an average grade of 2.81 g/t Au for 2,302,500 ounces the year prior. The slight decline in reserves is mainly due to a revision of the geological interpretation of Wona-Kona, more specifically in the Wona North pit.

Siou

Due to 25,000 meters of definition drilling completed below 180 meters vertically to convert a portion of resources into reserves, Siou's proven and probable reserves increased by 27% to 980,000 ounces by year-end 2014, net of 97,200 ounces from mined depletion in the year. Measured and indicated resources at Siou totalled 2,800,000 tonnes at 2.22 g/t Au for 199,500 ounces, an increase of 28% compared to 2013.

Fofina

As a result of recent definition drilling, the Fofina deposit attained 2,443,200 tonnes at an average grade of 2.62 g/t Au for a total of 205,700 ounces in proven and probable reserves as at December 31, 2014, net of 88,100 ounces from mined depletion in 2014.

Wona-Kona

At the end of 2014, Wona-Kona reserves stood at 13,275,500 tonnes at a grade of 2.27 g/t Au for 970,100 ounces, representing a 3% increase in grade. Measured and indicated resources at Wona-Kona increased by 13% to 1,787,000 ounces.

SEMAFO's 2015 initial exploration budget has been established at $18 million, and activities are expected to involve up to eight auger rigs and four RC rigs for 310,000 meters of auger and 105,000 meters of reverse-circulation drilling. A $6 million provision has been made for pursuing exploration activities on the Banfora property, which now totals 1,600 square kilometers over 15 permits.

The mineral reserves and resources were estimated as at December 31, 2014 in accordance with the definitions adopted by the Canadian Institute of Mining Metallurgy and Petroleum and incorporated into National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101). Mineral reserves and resources estimates for the Mana Mine were carried out by an in-house team under the direction of Michel Crevier P.Geo MScA, Vice-President, Exploration and Mine Geology and SEMAFO's Qualified Person, who has reviewed this press release for accuracy and compliance.

About SEMAFO

SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation operates the Mana Mine in Burkina Faso, which includes the high-grade satellite deposits of Siou and Fofina. 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 "expected", "estimated", "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 invest $18 million in our initial exploration program in 2015, 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 2013 Annual MD&A, as updated in SEMAFO's 2014 First Quarter MD&A, 2014 Second Quarter MD&A and 2014 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.

Mana, Burkina Faso (1)(2)(3)

DEPOSITS DECEMBER 31, 2014
PROVEN RESERVESPROBABLE RESERVESTOTAL RESERVES
TonnageGrade
(g/t Au)
Ounces(3)TonnageGrade
(g/t Au)
Ounces(3)TonnageGrade (g/t Au)Ounces(3)
WONA-KONA6 304 6002,32470 1006 970 9002,23500 00013 275 5002,27970 100
NYAFÉ262 6005,8549 4004 1005,02700266 7005,8450 100
FOFINA2 410 0002,62203 30033 2002,292 4002 443 2002,62205 700
SIOU5 224 0004,46749 8001 748 2004,10230 2006 972 2004,37980 000
ROMPAD186 4005,7434 40000,000186 4005,7434 400
TOTAL MANA14 387 6003,261 507 0008 756 4002,60733 30023 144 0003,012 240 300
DEPOSITS DECEMBER 31, 2014
MEASUREDINDICATEDTOTAL RESOURCES
TonnageGrade
(g/t Au)
Ounces(3)TonnageGrade
(g/t Au)
Ounces(3)TonnageGrade (g/t Au)Ounces(3)
WONA-KONA1 507 2001,8790 70020 733 9002,541 696 30022 241 1002,501 787 000
NYAFÉ300 2005,6054 100229 5005,8443 100529 7005,7197 200
FOFINA1 219 6002,77108 600467 0003,6755 2001 686 6003,02163 800
YAHO4 654 4001,05157 2009 895 2000,99316 20014 549 6001,01473 400
FILON 6726 1002,722 3008 9003,591 00035 0002,933 300
FOBIRI468 9001,8027 100114 2001,525 600583 1001,7432 700
SIOU885 5001,4039 8001 914 5002,59159 7002 800 0002,22199 500
TOTAL MANA9 061 9001,65479 80033 363 2002,122 277 10042 425 1002,022 756 900
DEPOSITSDECEMBER 31, 2014
INFERRED
TonnageGrade (g/t Au)Ounces(3)
WONA-KONA2 935 0002,93276 800
NYAFÉ150 8005,8628 400
FOFINA217 8004,1729 200
YAHO470 8001,4522 000
FILON 675 5006,321 100
FOBIRI577 6001,3925 800
MAOULA2 628 2001,62137 100
SIOU5 957 3003,44658 700
TOTAL MANA12 943 0002,831 179 100

(1)The Corporation indirectly owns 90% of SEMAFO Burkina, which directly holds the interest in the Mana Mine reserves and resources.

(2)Mineral reserves and resources were estimated using a gold price of $1,100 and $1,400 per ounce, respectively.

(3)Rounding of numbers to the nearest hundreds of tonnes may present slight differences in the figures representing the ounces contained.

(4)All mineral resources reported are exclusive of mineral reserves.

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