Name of the Project
Segele gold project.

Location
Ethiopia.

Project Owner/s
Scandinavian gold exploration and mining company 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 reached an agreement with South African engineering company Solo Resources for the delivery of a processing plant for gold production at the Segele mine. In terms of the agreement, Solo will design the processing plant, as well as order and ship all necessary parts to Ethiopia.

Akobo will be responsible for transport to Segele and the construction of local infrastructure. Solo personnel will be at site to supervise the installation and commissioning, alongside Akobo consultants and processing plant staff.

The commissioning of the plant is expected to start by end of the first quarter of 2023.

The plant will be tailored to process Segele mine ore.

The plant is designed to process 10 t/h of mass, with the possibility of upgrading to 20 t/h. The current dimensions will be able to process 4 000 oz a month of gold.

The agreement concluded between Akobo and Solo is a fixed-price contract that is meant to provide protection against the continued uncertainty in the global economy. Entering into the fixed-price contract does, however, lead to some cost increase in relation to the scoping study, Akobo CEO Jørgen Evjen has said.

There are also other moderate cost increases, owing to the higher prices for steel, fuel and other raw materials.

Nonetheless, Evjen has said that Akobo does not expect that the total investments associated with the startup of mining activities to be significantly higher than what is estimated in the scoping study.

Key Contracts, Suppliers and Consultants
Peacocke and Simpson (metallurgical testwork) and Solo Resources (processing plant).

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