HomeExplorationAfrican Gold Group files NI 43-101 technical report for Kobada

African Gold Group files NI 43-101 technical report for Kobada

African Gold Group has announced that an updated technical report under National Instrument 43-101 (NI 43-101) for the DFS on Kobada Gold Project has been filed on SEDAR.

Significant production potential

  • 3 Mtpa operation producing 1.2 Moz of gold over a 16-year LOM
  • Average annual gold production of 100,000 oz over the first 10 years

Strong economics

  • Pre-tax NPV5% of US$506 million with an IRR of 45%
  • Post-tax-NPV5% of US$355 million with an IRR of 38%
  • Pre-production capital requirement of approximately US$152 million
  • Total project cash flow pre-tax of US$733 million with net cash flow after tax and capital expenditure of US$550 million
  • Capital payback of 2.3 year upon production commencement

Environmentally and socially responsible

  • A hybrid thermal and solar photovoltaic power plant with battery energy storage, will be funded by an independent power producer
  • Power rate of estimated US$0.20 per kWh results in estimated savings annually resulting from a 43% reduction in fuel requirement versus conventional thermal power plants
  • Substantial reduction in greenhouse gas emissions through utilisation of hybrid power plant, including 39% less carbon dioxide, 34% less carbon monoxide, 39% less sulfur dioxide and 26% less nitrogen oxides than conventional thermal power plant

Growing resource with substantial exploration upside

  • Total proven and probable mineral reserve has increased to 1,252,522 ounces of gold, a 66% increase from the mineral reserve estimate in the previous DFS report titled “NI 43-101 Technical Report on Kobada Gold Project in Mali” with an effective date of June 17, 2020
  • Total measured and indicated resource increase by 44% to 1.71 Moz and a Total resource increase to 3.1 Moz
  • High measured and indicated resource to reserve conversion rate of 73%
  • Further potential remains to significantly increase the resource and reserve along strike and depth at the Kobada Gold Project
  • Over 5,500 ha of prospective mineral trends within trucking distance yet to be explored
  • Over 50 km of new potential mineralised shear zones identified on Kobada and Kobada Est concessions
  • Faraba and Kobada Est concessions were renewed for 3 years with early exploration indicating the potential to extend shear zones even further

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