Toubani Resources has unveiled a comprehensive Definitive Feasibility Study (DFS) for its Kobada gold project in Mali, forecasting a post-tax net present value (NPV) of US$635 million. The project is expected to generate a total of US$1.499 billion in pre-tax cash flows over its initial 9.2-year mine life.
The company reports that it can produce gold at an all-in sustaining cost of just US$1,004 per ounce, a competitive rate compared to the current gold price of US$2,783.
Capital expenditure (CAPEX) is estimated at approximately US$216 million, which Toubani expects to recover from operational revenues within 1.5 years. The internal rate of return (IRR) post-tax is projected at 58%.
The operation is set to yield 1,494,000 ounces of gold, averaging 162,000 ounces per year, positioning Toubani among a select group of West African gold producers capable of exceeding 150,000 ounces annually.
With gold prices trending upwards amid global tensions, the DFS assumes a modelled gold price of US$2,200, which is favorable compared to today’s market price of US$2,787. Notably, Toubani suggests that if the projected gold price rises to a more conservative US$2,600 per ounce, the post-tax NPV could increase to US$897 million.
The Kobada gold deposit is characterized as a large-scale, shallow, open-pittable zone, primarily composed of oxide gold. This area extends approximately 5 kilometers along an east/north-easterly direction.
Toubani has identified a total indicated and inferred gold resource of 78 million tonnes with an average grade of 0.88 grams per tonne, amounting to 2.2 million ounces of gold within a 4.5-kilometer strike. Of this, 1.99 million ounces, representing 90% of the total resource, fall within the indicated category, primarily located within the defined strike length.
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