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 is expected to start in October, with first gold extraction to begin in the first quarter of 2023. Full production is expected to be reached by the end of the second quarter of 2023.

Latest Developments
South African mining contractor IW Mining has arrived on site at Akobo Minerals' Segele project.

The South African company has also started recruiting an Ethiopian team, and surface preparation is expected to start shortly. 

Underground mine access development is scheduled to start in December.

"We are very pleased with the partnership which we have developed with the IW Mining team, which has overcome the inevitable hurdles which all mining companies face.

"We are ahead of schedule with fabrication of the processing plant, which will be assembled at site in the beginning of 2023, with gold production thereafter,” Akobo CEO Jørgen Evjen has said.

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

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