Akobo Minerals has announced an “encouraging” maiden mineral resource estimate for its Segele project, in Ethiopia.
After 3 160 m of drilling over seven months at the site, the company has achieved an inferred mineral resource of 87 000 t at 20.9 g/t gold, equal to 52 410 oz of gold.
The current drilled area is about 30 m wide and 120 m long, with the majority of mineralisation located near surface.
Akobo says the deposit has excellent exploration potential given that it is open at depth and that there are additional targets to the east and west. Given the high grade, there is an opportunity to establish a high-margin mining operation.
The company is planning on ramping up its drilling programme and expects to expand in this resource considerably.
“Given that typical mineable grades of gold deposits are generally less than 4 g/t gold, the impressive grade of 20.9 g/t gold supports the view that a high-revenue, moderate-cash cost operation is viable at Segele,” Akobo comments.