Name of the Project
Kiniero gold project.

Location
Kouroussa Prefecture, Guinea.

Project Owner/s
West African gold producer and developer Robex Resources. Robex acquired Kiniero in April 2022 as part of a merger with precious and base metals project explorer, developer, financier and miner Sycamore Mining.

Project Description
The historical Kiniero gold mine comprised an openpit mining operation, which produced 418 000 oz of gold during its 12-year operational history. The mine was placed on care and maintenance in early 2014.

A prefeasibility study (PFS) has confirmed good economics for the redevelopment of the openpit operations targeting a series of five deposits – the Sector Gobele A (SGA) Complex, Sabali, Mansounia Central, Jean and West Balan – for 13 orebodies that will feed a central gold processing facility.

The project proposes restarting Kiniero as a long-life operation, based on the construction of a new three-million-tonne-a-year process plant. The Kiniero mine will produce 712 000 oz over a 6.5-year mine life, with output averaging 110 000 oz/y at an all-in sustaining cost of $1 033/oz.

Mining activities will use conventional openpit mining methods. Drill-and-blast are planned for hard oxide and fresh mineralised material, followed by conventional truck-and-shovel operations within the pits for the movement of mineralised material and waste. Ore from the Kiniero project will be processed on site.

Existing mining infrastructure will be refurbished with minimal additional infrastructure required, except for new haul roads, which will depend on the mine layouts selected.

Production will start from the existing, previously mined Jean and SGA pits, and the newly delineated Sabali South pit to optimise the blend of oxides to fresh ore into the plant.

The project’s selected electrical supply is based on a hybrid system of a photovoltaic plant with a total installed capacity of about 18 MW, diesel generators with a capacity of about 20 MW and a 10 MW power conversion system, as well as a 30 MWh battery energy storage system.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $199-million and an internal rate of return of 49%, with a payback of three years, based on a gold price of $1 650/oz.

Capital Expenditure
The capital cost is estimated at $161-million.

Planned Start/End Date
Robex is targeting first ore in the first quarter of 2024.

Latest Developments
Robex Resources has appointed Australia-based fund management firm Taurus Mining Finance Fund No 2 as exclusive arranger for a funding package of up to $115-million for the development of Kiniero project.

The funding package comprises a $35-million bridge facility to be used for the early site work programme and the engineering leading up to a definitive feasibility study (DFS), which is expected to be released during the second quarter of 2023.

The package also includes a project finance facility of up to $100-million to refinance the bridge loan and fund capital development and working capital costs; as well as a cost overrun facility of up to $15-million to cover unforeseen expenditures in addition to contingencies built into the current design.

The mandate letter signed between Robex and Taurus includes term sheets for the three facilities containing customary terms and conditions. In particular, the bridge loan is subject to confirmatory due diligence, while the project finance and cost overrun are subject to the release of the DFS, satisfactory to Taurus funds.

Robex CEO Benjamin Cohen has said that with the potential funding source, the company can accelerate the construction of the project, and that it remains on track to deliver its first gold pour in the first quarter of 2024

Key Contracts, Suppliers and Consultants
Mining Plus UK (PFS); and Mine Planning Solution (mining and processing operating cost estimates).

Contact Details for Project Information
Robex Resources, tel +1 581 741 7421 or email investor@robexgold.com.