In alignment with the 2011 corporate objectives, the 2011 reserve development and delineation program at Rosebel is designed to extend resources along strike and at depth, to identify new resources near the known deposits, and to convert resources into reserves at a rate exceeding mine depletion. An estimated 91,000-metre resource expansion program is underway, and directed at six of eight known deposits (Pay Caro, East Pay Caro, Koolhoven, Mayo, Royal Hill and Rosebel). During 2010, a total of 26,152 metres of drilling were completed at the Rosebel (1,600 metres), Mayo (11,371 metres), Royal Hill (9,548 metres) and Koolhoven (3,633 metres) deposits. Several exploration targets situated in the vicinity of the Rosebel deposit have been drilled, and results 500 metres east of the deposit demonstrate promising potential for resource expansion along strike.
Extensive exploration was carried out in 2010 on the Company's Charmagne gold discovery, located 16 kilometres north of the rosebel mine, including 10,387 metres of core drilling in 76 holes. Geology and resource modelling is nearing completion and metallurgical test work is in progress. A preliminary scoping study, or concept study, is scheduled for completion in the first quarter of 2011 and is expected to provide the basis for a constrained in-pit inferred resource.
Rosebel’s attributable production in 2012 is expected to be between 360,000 and 380,000 ounces.
Rosebel is currently awaiting feasibility for its 4th expansion. The expansion is primarily an optimization of the open pit mine. Without this expansion, mill throughput would decline going forward as the ore mix will trend to higher proportions of hard rock. The cost of the staged expansion is expected to total an additional $185 million over the next seven years versus the no-expansion case with sustaining and replacement capital only. The project entails additional grinding capacity to allow mill throughput to be maintained between 12 and 14 million tonnes per year, even with the increased hard rock volumes, coupled with additional mining equipment to increase annual mining capacity to 70 million tonnes to optimize mill feed grades.
Feasibility work is planned for in 2012 with construction into 2013.