Name of the Project
Diamba Sud gold project.

Location
In the 53.2 km² Diamba Sud exploration licence, in eastern Senegal.

Project Owner/s
Boya SAU, a wholly owned Senegalese subsidiary of Chesser Resources. The Senegalese government is entitled to a 10% free carried interest in the project upon granting of the mining licence.

Project Description
Diamba Sud comprises three openpits – Area A, Area D and Area D South – with total indicated and inferred resources of 15.2-million tonnes grading 1.6 g/t gold for 781 000 oz of gold.

A March 2022 scoping study on the project estimated a project life of 7.5 years producing 704 000 oz of gold, including 244 000 oz in the first two years of production. 

Total project mining inventory has now increased by 17%, to 13.9-million tonnes at 1.7 g/t gold for 762 000 oz of contained gold, with the project expected to produce 715 000 oz of gold over the 7.5-year mine life. During the first two years of production, Diamba Sud is expected to produce 223 000 oz.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The March 2022 scoping study estimated a pretax net present value (NPV), at a 5% discount rate, of $402-million and an internal rate of return (IRR) of 69% at a $1 800/oz gold price, with a payback of 1.25 years from commercial production.

The project’s NPV, at a gold price of $1 800/oz, has now been estimated at $296-million while its IRR is estimated to be 55%, with the payback period now estimated at 17 months from commercial production.

Capital Expenditure
Capital cost estimates for the project have decreased by $11-million to $149-million.

Planned Start/End Date
Not stated.

Latest Developments
Chesser MD and CEO Andrew Grove has said that the project economics continue to improve as the company refines the project and discovers then converts additional mineralisation into higher confidence mineral resources.

Based on the drilling under way at Area D and other numerous prospective targets, Grove expects resource growth to continue at Diamba Sud and also on the adjacent Bondala tenement.

Key Contracts, Suppliers and Consultants
Chesser Resources (study compilation and geology); Dr John Arthur (resource estimation); Peter O’Bryan & Associates (geotechnical studies); Cube Consulting (mining design and scheduling); Majesso Consulting (mining operating costs); ALS, Lycopodium, JK Tech, IMO and Mintrex (metallurgical testwork); Mintrex (process engineering and design, operating, infrastructure, and capital costs); Chesser, Earth Systems SARL and ESS (environmental, social and licensing); Chesser and Senegalese (tax and fiscal terms); and Infinity Corporate Finance, Orimco and Chesser (financial modelling).

Contact Details for Project Information
Chesser Resources, tel +61 7 3854 2387 or email info@chesserresources.com.au.