Name of the Project
Kobada gold project.

Location
The prolific 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
Following encouraging results from an exploration drilling campaign and sulphide metallurgical testwork, AGG has received board approval to initiate an update to the July 2020 DFS to advance the Kobada project.

Recent commitments by the miner have focussed mainly on increasing the reserve base and enhancing the free-milling sulphide metallurgical testing of the project, with the updated DFS serving to increase the production profile and overall project economics beyond the robust results of the previous DFS.

AGG CEO Danny Callow has said that the company’s target is to deliver more reserve ounces, which should show an improved LoM and economics.

The updated DFS will require significant work, as AGG will need to review resources and reserves, an updated mine optimisation and schedule, additional refinements to the processing plant and a larger tailings dam. In addition, AGG work through the updates to the environmental- and social-impact assessment.

Key Contracts, Suppliers and Consultants
SENET (DFS).

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