An increased mineral resource estimate for Toubani Resources' Kobada gold project in southern Mali positions the company for what it says could be West Africa's next major open pit gold development.
The latest figures released today reveal a 44% increase in the indicated oxide resource to 1.4 million ounces, bringing the total indicated resource to 2 million ounces. Management has also outlined a 10 percent improvement in overall grade to 0.87 grams per tonne.
Toubani Resources has increased the indicated oxide resource for its Kobada deposit by 44 percent.
The updated estimate was revised using an additional 120 holes already sunk at Kobada this year, in addition to data from 39 holes drilled in 2020.
By moving more than 80 percent of the inferred oxide resource into the indicated category, the company has now boosted the project's total indicated tonnage to 71 million tonnes, leaving it with significant exploration upside, particularly at depth and within satellite deposits such as Kobada West. and Dog More importantly, 40 km of at least 50 km of regional-scale shear zones still remain undrilled.
“The successful delivery of the MRE 2024 is a fantastic result that exceeded the company's expectations.”
Phil Russo, CEO of Toubani Resources
Completed by Entech and Toubani's technical team, the estimate now allows the company to finalize mining studies and pit design optimization for the Definitive Feasibility Study (DFS) update which it is on track to be completed by the end of September. The company is also planning targeted exploration drilling to test extensions of the mineralization and further enhance the resource base.
Toubani Resources CEO Phil Russo said: “The successful delivery of the 2024 MRE is a fantastic result that exceeded the company's expectations in converted ounces and grade increases, two key drivers of the upcoming DFS, and means that the Kobada gold project is now “ready for the study”. Achieving 2 million ounces of gold contained in indicated resources is a significant achievement and clearly sets Kobada apart from its fellow developers on the ASX and globally.”
The company's confidence levels have peaked as the new resource estimate is expected to significantly reduce the technical risk of the Kobada project due to the bulk tonnage mining and processing plan. Importantly, the process flow allows for less selective mining methods, simpler grinding and crushing circuits, and therefore less energy consumption, significantly increasing operating cash flows.
Launched in July last year and led by key consultants Lycopodium, Orology and Knight Piesold, the DFS is well advanced and likely to improve the project's financial metrics.
