So far, 2021 has been a year of significant progress for TSX-listed African Gold Group (AGG) as it furthers its Kobada gold project in Mali.
Kobada is an advanced stage gold development project located in southern Mali, Africa`s third largest gold producing nation. AGG owns a 90% interest in Kobada with the government of Mali retaining a 10% carried interest.
In January, the company announced multiple broad high-grade gold intersects near surface at Kobada. During the past months, AGG has been working diligently at advancing the project, focusing mainly on increasing the reserve base and optimising the free-milling sulphide metallurgical testing.
Now, following the highly encouraging results from the exploration drilling campaign and sulphide metallurgical testwork, the company has received board approval to initiate an update to the July 2020 Definitive Feasibility Study (DFS) with the goal of increasing the production profile and overall project economics beyond the robust results of the previous DFS.
The highlights of July 2020 DFS include:
- Average annual production of 100 000 oz of gold per annum for the first five years of operation.
- Total gold production of 728 654 oz over 9.4 years life of mine, based on current reserves.
- Average total operating cash costs US$704/oz for the life of mine (LOM).
- LOM All-In Sustaining Cost (AISC) of US$782/oz.
The feasibility study is being updated to reflect the improved optimisation work on the processing plant, increase in reserve base and gold price environment and results from the sulphide metallurgical testwork. AGG believes an update on the feasibility study will further enhance the economics of the project.
Delivering a world-class project
Danny Callow, CEO of AGG commented, “We are continuing our progress towards improving the scale and economics of the Kobada project through an update to the July 2020 Definitive Feasibility Study. Our target is to deliver more reserve ounces, which should show improved life of mine and economics.
“The updated study requires significant work as we will need to review resources and reserves, an updated mine optimisation and schedule, additional refinements to the processing plant and a larger tailings dam. In addition, we will work through the updates to the ESIA.
“Throughout the past 19 months we have undertaken a systematic process to review and clean up historical data, drill close to 20 000 exploration metres, optimise oxide and sulphide testwork and deliver a DFS that produces a world class project, with substantial economic returns to shareholders. The update of the DFS is the next step in our programme to continue to increase the value and free cash flow in this project.”