Name of the Project
Kobada gold project.

Location
Southern Mali.

Project Owner/s
African Gold Group.

Project Description
A definitive feasibility study (DFS) has shown the significant production potential of the Kobada project. The project is based on one mining exploitation permit (Kobada) of 136 km² and two exploration permits (Faraba and Kobada Est) of 77 km² and 45 km² respectively.

The project has proven and probable reserves of 45.03-million tonnes grading 0.87 g/t gold, and mineral resources of 61.54-million tonnes grading 1.06 g/t gold. There exists a significant opportunity to increase the size of the measured and indicated resource through targeted, but limited, infill drilling in the inferred resources, which would be an opportunity to increase mine life life-of-mine (LoM.

The DFS proposes the construction of a three-million-tonne-a-year operation producing 1.2-million ounces of gold over a 16-year LoM, with average gold production estimated at 100 000 oz/y over the first ten years of operation.

The proposed process plant design is based on a proven and established gravity/carbon-in-leach technology, which comprises crushing, milling and the gravity recovery of free gold, followed by the leaching/adsorption of gravity tailings, elution and gold smelting, as well as tailings disposal. Services to the process plant will include reagent mixing, storage and distribution, water and air services. The crushing and milling circuits will be built in two phases: the first phase will treat only oxide ore, while the second phase, later in the LoM, will treat sulphides and/or a blend of sulphides and oxides.

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 $355-million and an internal rate of return of 45%, with a payback of 2.3 years on the start of construction.

Capital Expenditure
Preproduction capital is estimated at $152-million, excluding working capital and contingencies.

Planned Start/End Date
Construction of the process plant and associated infrastructure, including Phase 1 of the tailings storage facility, is expected to take 19 months.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
Minxcon Group South Africa (mineral resource estimate); DRA Americas (mining and mineral reserves); Maelgwyn Mineral Services (metallurgical testwork); ABS-Africa (environmental and social studies); Epoch Resources(tailings storage facility); and SENET (processing plant and infrastructure, including economic valuation and report compilation).

Contact Details for Project Information
African Gold Group, email info@africangoldgroup.com.