johndorward

Today, BNN Anchor Andrew Bell was joined by Roxgold's President and CEO John Dorward (click image above to watch the interview) to discuss the Yaramoko project and some of the reasons his company's shares are up nearly 100% year-to-date.

We highlighted those reasons in an interview we did with Mr. Dorward a few weeks ago (Read: This Gold Developer Punches Above Its Weight – Interview With Roxgold CEO John Dorward).

"We focus on margin.  We have an all-in sustaining cost of $590 per ounce, so even at todays gold price there is plenty of room for us to make a significant profit" - John Dorward (2:12)

We caught up with Mr. Dorward and his team at the Sprott Vancouver Natural Resource Symposium last week.

He told us that everything remains on track for a construction start before the end of the year.  He still expects to have the $75 million project debt facility tied up by the end of the third quarter and to pour first gold by the end of 2015.

Roxgold's Vice President of Exploration Ben Pullinger was at the meeting as well and his excitement for the potential of the 55 Zone and its surrounding areas to host much more high-grade gold was palpable.

During our meeting I was reminded just how unique the Yaramoko project is.

Although small, at $1,300 gold the Yaramoko project could generate over $60 million in annual free cash flows as a direct result of the fact that the project is one of the highest grade undeveloped gold proejcts out there.  That is assuming that the project runs at the current plan of 750tpd although it is likely it will expand from there once in production.

The average head-grade of the operation is estimated at 11.59g/t and is part of the reason for the after-tax IRR of nearly 50%.

Andrew Bell’s Commodities runs on BNN Television Monday-Friday at 11:30am Eastern, 8:30am Pacific time. Follow Andrew Bell on Twitter @TweetrBell.