A prefeasibility study (PFS) for the redevelopment of the Kiniero gold project, in Guinea, has confirmed good economics, paving the way for discussions with financiers to accelerate, Canadian owner Robex Resources reported on Monday.

CEO Benjamin Cohen said the company was aiming for an investment by the end of 2022, keeping it on track for its first gold pour in the first quarter of 2024.

Earlier this year, Robex announced a business combination with Cyprus-based Sycamore Mining. Closing of the transaction is expected to occur after the publication of a new National Instrument 43-101 report and satisfaction of other conditions, expected by the end of the third quarter.

The PFS confirms good economics for the redevelopment of the openpit operations at Kiniero, targeting a series of five deposits for a total of 13 bodies that will feed a central three-million-tonne-a-year gold processing facility.

The Kiniero mine will produce 712 000 oz over a 6.5-year mine life, with output averaging 110 000 oz/y at an all-in sustaining cost of $1 033/oz.

The PFS yielded an after-tax net present value, using a 5% discount, of $114-million and an internal rate of return of 31%. Payback, on an aftertax basis, is expected to be 3.5 years.

The capital cost is estimated to be $161-million.

“The new Robex team has completed a major step in de-risking Kiniero, demonstrating a robust starter project with attractive economics. We have demonstrated 1.28-million ounces measured and indicated and 1.4-million ounces inferred resources and significant near-term exploration upside. We believe this will allow us quickly to increase the life of mine and the value of the project,” said Cohen.

He added that Robex had progressed at the operational level with an expanded team implementing the proven operational DNA of its other operation, Nampala.

“With Nampala performing extremely well we can capitalise on our position to optimise the intrinsic value of Kiniero. We believe the project’s location in the heart of the prolific Kiniero district, scale, economics, permitting status, and extensive technical work make Kiniero a unique asset in West Africa.

“We are progressing quickly towards production at the heart of this new multimillion-ounce gold basin in West Africa.”

The PFS was conducted by Mining Plus UK, independent of Robex.