Name of the Project
Kobada gold project.

Location
The project is located in the prolific Birimian greenstone belt, in southern Mali.

Project Owner/s
African Gold Group.

Project Description
The project has measured and indicated resources of 1.2-million ounces of gold equivalent grad­ng 1.1 g/t gold, and inferred resources of one-million ounces of gold equivalent grading 1 g/t gold.

African Gold Corp is targeting production of more than 100 000 oz/y and is running a parallel process for a 50 000 oz and 100 000 oz pro­cessing plant.

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 $126-million and internal rate of return of 55%, with a payback of 2.6 years.

Capital Expenditure
Preproduction capital costs are estimated at $45.4-million.

Planned Start/End Date
Construction is estimated at 18 months.

Latest Developments
SENET has completed the engineering assess­ment on an expanded throughput scenario at the Kobada project. The expanded scenario suggests throughput could exceed the definitive feasibility (DFS) target of 100 000 oz/y.

The positive result of the metallurgical testwork has enabled SENET to design a plant offering the flexibility required to effectively treat all ore types from the project.

The process plant comprises a three-million-tonne-a-year run-of-mine feed, combined with a gravity circuit and carbon-in-leach section.

Further, a simplified, compact process plant flowsheet has minimised the requirement for expensive and long-lead process equipment.

The DFS is expected to be delivered in the second quarter of 2020.

Key Contracts and Suppliers
SENET (DFS).

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