Based in Vancouver, British Columbia, Canada, Red Back Mining differentiates itself by operating in west Africa. Red Back’s August 2007 purchase of the Tasiast Mine (pictured) in Mauritania on Africa’s west coast is expected to contribute to the production of more than 245,000 ounces of gold this year. The total output of its two mines is expected to more than double by 2010, with 500,000 ounces anticipated that year.

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Gold is where you find it, and Red Back Mining Vice President of Corporate Development Simon Jackson says there are few things more important to the success of a gold mining outfit than the location and quality of its ore bodies. That’s why Red Back’s August 2007 purchase of the Tasiast Mine in Mauritania on Africa’s west coast has been a reason for the company to celebrate.

Combining Tasiast with the company’s original mine, the Chirano Mine in southern Ghana, Red Back is expected to produce more than 245,000 ounces of gold this year, according to Jackson. The total output of the two mines is also expected to more than double by 2010, with 500,000 ounces anticipated that year. Based in Vancouver, British Columbia, Canada, Jackson says Red Back stands out by operating in west Africa.

“There are only a few companies that produce gold commercially in Ghana,” he says.

Although the company is relatively small now, it has already become the 20th largest gold producer in the world, and is looking forward to becoming even larger. “When you’re in a marketplace with the majors, you always look relatively small,” Jackson says. “We’re growing toward becoming an intermediate producer.” The company’s ore bodies are ideal for the company to continue growing, Jackson says, but he also credits the work force and locals with helping Red Back succeed.

Strong Holdings
Originally founded as an Australian exploration company, Red Back moved to Canada in 2004 and became part of The Lundin Group of Companies. The Chirano Mine produced its first gold pour in October 2005. The mine is located in southwestern Ghana, nearly 62 miles from Kumasi, Ghana’s second-largest city.

Chirano Mine is made up of 11 gold deposits along a strike length of about five and a half miles. A fleet of 250-ton hydraulic excavators and 100-ton trucks is used on the site, and approximately 10 percent of the total volume of oxidized ore does not require blasting to excavate.

In Mauritania, Red Back holds 100 percent interest in the Tasiast Mine, which includes the mine itself as well as an exploration land package covering a 37-mile strike length. The mine is located in northwestern Mauritania, and commenced commercial production in January 2008. It is the first mine in the Aoueouat greenstone belt, which the company says is similar to other greenstone belts that hold major gold deposits.

Sitting on Gold Mines
Jackson says Red Back is fortunate to have the holdings it does, because besides the work force, the ore bodies are the most important things for a gold producer. “It all goes back to the ore bodies,” he says.

Both Tasiast and Chirano are desirable holdings because they are relatively easy to exploit. “They’re very simple ore bodies in terms of their geology and metallurgy,” Jackson says. Because both mines are rich in ore, Red Back can think in the long-term and put the appropriate capital into each one without worrying about whether or not they will last, he adds.

Community Member
Aside from the strength of its ore bodies, Jackson says, Red Back is buoyed by the strength of its people. He says the company invests significantly in its people, both in terms of compensation and relationships. Jackson calls Red Back’s work force one of the “magic contributors” to the company’s success.

Of the 450 employees working at Chirano, only nine of them are from outside Ghana, Jackson says, and three members of the mine’s senior management team are native to the country. This is because the country has a relatively long history of gold mining, with an experienced work force readily available.

It’s a different story in Mauritania, where gold mining activities have been relatively sparse until now. “The Mauritanian people are not experienced gold miners, so we have put in place extensive training programs,” Jackson says.

Red Back also works to provide communities with fresh water wells and training for sustainable farming.

Feeling Optimistic
Jackson says Red Back has reason to be optimistic about its future in west Africa, with plans to expand both Chirano and Tasiast. “In addition to that, we’re continuing to explore in both regions,” he says.

The strength of both mines and their ore bodies is what gives the company its confidence, Jackson adds. “I was told a long time ago that you need to make sure that the deposit is solid and is what you think it is before you start to develop,” he says.