Name of the Project
Segele gold project.

Location
Ethiopia.

Project Owner/s
Akobo Minerals.

Project Description
A scoping study has confirmed the potential economics of the project.

Akobo Minerals is planning to mine the gold mineralisation using methods such as shrinkage stoping. Ore will be brought to surface using an incline shaft.

At peak production, almost 6 000 t a month of rock will be mined and this material will be fed into an industry-standard crushing and gravity circuit, with cyanidation where necessary.

The mine life is estimated at 27 months.

The company plans to buy a plant capable of processing 20 t/h, but will initially operate it at 10 t/h. The mine plant will be a turnkey solution comprising a grinder, concentrator and cyanide leach containers.

Akobo will manage the processing plant, but will appoint a mining contractor to do the mining.

The plant is expected to extract 90% of all gold in the mineralisation; this will be confirmed by ongoing metallurgical testwork.

Potential Job Creation
None stated.

Net Present Value/Internal Rate of Return
None stated.

Capital Expenditure
Total capital expenditure for establishing the mine plant is estimated at $8-million.

Planned Start/End Date
Mining operations are expected to start at the end of 2022.

Latest Developments
Akobo Minerals has announced an updated mineral resource estimate (MRE) for its Segele project, showing a significant increase of 31% in gold ounces.

The updated MRE puts the average grade at 40.6 g/t for indicated mineral resources.

The findings, issued by the Australasian arm of mining and exploration consulting firm SRK, show improved potential for high-margin gold production, Akobo has said.

The newly announced increase in ounces has been derived from an increase in the tonnage and better-than-expected average gold grade than previously indicated.

In addition to the increase in the mineral resources, the classification of parts of the mineralisation have been upgraded from inferred to indicated, thereby increasing confidence in the figures.

Akobo believes the average grade of 40.6 g/t for indicated mineral resources will have a positive impact on the cash flow potential for the mine operations because this part of the resource is assumed to be accessible in the early stages of mining operations.

In March, Akobo reported that initial production at Segele was expected to start by the end of the year, ramping up in 2023. Once fully operational, Akobo estimated the yearly production at Segele to be about 45 000 oz.

The company has said this could increase depending on further discoveries and upgrades to the processing plant. The long-term goal is for the discovery of between 1.5-million and 2-million ounces of gold.

Key Contracts, Suppliers and Consultants
Peacocke and Simpson (metallurgical testwork).

Contact Details for Project Information
Akobo Minerals, tel +47 92 80 40 14 or email info@akobominerals.com.