West African gold miner Noble Mineral Resources has halted surface mining operations at its Bibiani project in Ghana, as it evaluates funding options for an underground development.
The company says it intends to appoint Ferrier Hodgson as corporate advisor on its funding options.
The proposed underground mine would deliver higher margin gold production “to ensure the long-term sustainability of the project.”
The review is being conducted by the Noble’s joint technical and operating committee which includes representation from company’s largest shareholder Resolute Mining.
Today's announcement follows other set-backs for Noble, including the failure of its SAG mill motor last month.
Noble had been in the process of refurbishing and recomissioning its surface operation at Bibiani with the aim of ramping up production.
The company had raised $34 million through banking group Investec and Resolute to fund orders and aquisitions to support its above ground operations.
Noble recently appointed Craig Dawson as chief executive who will take on the role from July 22.
Mr Dawson formerly served as general manager, operations at Sandfire Resources and held senior management roles with Aditya Birla Minerals and Northern Mining.
