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African Gold Group lifts mineral reserve at Kobada project to 1.25 million gold ounces

Published: 08:09 27 Sep 2021 EDT

gold nugget
This new study will also form the basis for an updated feasibility study, expected to be delivered before mid-October this year

African Gold Group Inc. reported that it has lifted the proven and probable reserves at its flagship Kobada gold development project in Mali by nearly half a million ounces to around 1.25 million ounces of gold.

The new reserve estimate upgrades the previous report from June 2020, and increases the life of mine, and includes deeper sulphide material within new pit shells, opening up the potential to mine below the shallower oxides as the asset develops. It will also form the basis for an updated feasibility study, expected to be delivered before mid-October, 2021.

"We are delighted to announce these results from our upcoming 2021 DFS at the Kobada Gold Project in Mali," African Gold CEO Danny Callow in a statement.

READ: African Gold Group renews its Faraba exploration permit to further increase its exploration upside

"With the inclusion of significant exploration drilling within our oxides and fresh rock, we have achieved a massive 66% increase in delivered gold ounces and now have an asset that can deliver an average of 100,000 ounces of gold per annum for the first 10 years, with a mine life of 16 years," he added.

Callow also noted that, as well as the material increase in reserve, the results demonstrated that there was "significant upside" potential at Kobada in the short-term "with more than 50km of shear zones yet to explore, as well as an additional estimate of more than 280,000 inferred ounces within the new pit shell that requires minimal drilling to convert into measured and indicated resource".

"We have spoken at length about the upside potential of the Kobada asset, and the delivery of 1.25 million ounces of reserves from 3.1 million ounces of measured, indicated and inferred resources is a validation of the quality of the Kobada gold project," he told investors.

"Based upon just these near-term convertible ounces, there remains the potential to further increase the measured and indicated resources and thereby increase shareholder value."

The company noted that the mine plan had been optimized for targeted mining tonnes of 20 million tonnes per annum of ore and waste, with a flow-through of 3 million tonnes to the mill, which generates 100,000 ounces of finished gold.

There is potential for additional optimization, it added, especially following further drilling of inferred ounces within the ultimate pit shell, which could add additional ounces without increasing waste.

In September this year, the company revealed it had increased the measured and indicated resource at Kobada by 44%.

The total resource was pegged at more than 3.1 million ounces, which included a 44% increase in measured and indicated (M&I) resource of 1.71 million ounces, and a 26% increase to the inferred resource to 1.43 million ounces.

Contact the author at giles@proactiveinvestors.com

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