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
The mine is on track to start producing gold early in 2023.

Latest Developments
Akobo Minerals has declared an inaugural cash flow estimate for the Segele mine of $42-million in 2023 and $15.1-million in 2024.

The first cash flow estimate follows Akobo signing a deal with Solo Resources as a partner to develop the Segele processing plant, as well as an updated mineral resource estimate undertaken by consultancy SRK Australasia.

Based on the current inferred and indicated mineral resource estimate of 94 000 t grading 22.7 g/t gold, for 68 811 oz, the company is confident that Segele will be a highly profitable mine operation with estimated free cash flow of $50-million up until the end of 2024.

The cash flow model is based on the assumption of an average gold price of $1 800/oz for 2023 and 2024.

“With more targets being explored and the fact that the orebody is open at depth, we are confident that mining operations will continue for many years beyond 2024,” CEO Jørgen Evjen has said.

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.