Name of the Project
Kobada gold project.

Location
The Birimian greenstone belt, in southern Mali.

Project Owner/s
Canadian-listed gold company African Gold Group (AGG) owns a 90% interest in the project, with the Mali government retaining a 10% carried interest.

Project Description
The project has proven and probable reserves of 754 800 oz of gold grading 0.87 g/t gold. Measured and indicated resources are estimated at 1.2-million ounces of gold grading 0.86 g/t gold. Inferred resources are estimated at 1.1-million ounces of gold grading 1.33 g/t gold.

The July 2020 definitive feasibility study (DFS) envisages the construction of a three-million-tonne-a-year plant, with production of 100 000 oz/y of gold over the first five years of operation and total gold production of 728 654 oz over a 9.4-year life-of-mine (LoM), based on current reserves.

The project will be a predominantly free-dig operation.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $226-million and internal rate of return of 41.1%, with a payback of 3.82 years.

Capital Expenditure
Initial capital costs are estimated at $136.1-million.

Planned Start/End Date
First gold is expected in the second quarter of 2022.

Latest Developments
AGG announced the final metallurgical test results from its comprehensive sulphide testwork programme in July, which incorporated variability testing to determine the optimal process route of the ore across the extent of the orebody at the Kobada mine.

The company is continuing its work on updating mineral resource estimates and the definitive feasibility study (DFS) to incorporate additional drilling and the sulphide testwork results.

The comprehensive metallurgical testing programme was conducted by specialised minerals processing technology provider Maelgwyn South Africa on composite samples from all the defined mineral zones (north, south, and central domains) of the main shear zone.

The final stage of this process, the variability testing, has proven the consistency of being able to treat the sulphides across the extent of the orebody.

Highlights from the metallurgical testing have shown that gravity gold recovery values vary from 40.40% to 73.18%, with an eighty-fifth percentile of 61.52%.

These results indicate that the sulphide ore at Kobada is amenable to gravity recovery.

Overall gold dissolution at 93.87% confirms the initial findings that consistent overall gold dissolution above 90% can be achieved on the sulphide ore.

The results indicate that cyanide consumption values vary from 0.14 kg/t to 0.46 kg/t, with an eighty-fifth percentile of 0.34 kg/t, indicating low cyanide consumption of the sulphide ore.

Additionally, lime consumption values vary from 0.23 kg/t to 0.31 kg/t, with an eighty-fifth percentile of 0.30 kg/t, confirming low lime consumption of the sulphide ore.

AGG CEO Danny Callow has indicated that the process design on gravity and carbon-in-leach for the oxides, as presented in its July 2020 DFS, is suitable for treating the sulphides as well, and this will enable the company to add substantial resources to its overall resource base.

Callow adds that the wider testwork programme has been highly successful and confirms Kobada’s excellent potential as a future new mine in Mali.

“We are looking forward to delivering an updated study in the third quarter of 2021.”

Key Contracts, Suppliers and Consultants
SENET (DFS) and Maelgwyn South Africa (metallurgical testwork programme).

Contact Details for Project Information
AGG VP corporate development Daniyal Baizak, tel +1416861 2966.