Resolute Mining has announced a 54 per cent upgrade in ore reserves at its Syama mine in Mali as it unveiled a positive pre-feasibility study on underground mining at the project.
The gold miner said ore reserves at Syama were up 1.1 million ounces to 3.15 million ounces after the addition of 14.3 million tonnes of underground ore.
Resolute said its pre-feasibility study supported a high-volume, low-cost and financially viable underground operation extending long term production at Syama by at least seven years to beyond 2025.
It said recent drilling continued to upgrade and extend the Syama ore body at depth.
The company expects to begin a definitive feasibility study on underground mining at Syama next year after a 16,000 metre infill drilling campaign.
Resolute chief executive Peter Sullivan said he was extremely pleased with the outcomes of the Syama underground pre-feasibility study.
"This is a significant addition to the reserve inventory complimenting the successful work by our development and operating teams to reduce costs, improve plant performance and optimise capital spend at Syama," he said.
"This supports long term gold production beyond 2025."
Resolute shares were up half a cent to 55 cents at 10am.