Toubani Resources Inc (ASX:TRE, OTC:AGGFF) has appointed Lycopodium Minerals as lead engineer on the definitive feasibility study (DFS) update for the Kobada Gold Project in southern Mali.
Now that the lead engineer has been appointed, the update to the 2021 DFS, which contemplates a processing plant throughput rate of 3.0 million tonnes per annum with mining rates averaging 24 million tonnes, will begin immediately, targeting completion in 1Q 2024.
The Kobada project hosts 2.4 million ounces in mineral resources which occur over a 4.5-kilometre strike length and are predominantly free-digging, oxide and open pittable.
Lycopodium is a leader in its field with a significant track record in Mali and West Africa, having completed a number of studies and construction projects in recent years.
The update will focus on a range of development scenarios to analyse the impact of higher processing rates on operating costs, capital costs and the financial performance of the project.
Toubani believes that Kobada’s overall technical and geological risk profile could reduce significantly under a large tonnage, majority oxide scenario with the nature of the deposit amenable to a bulk mining approach. It suspects that a larger processing plant and increased annual production would benefit the project economics.
Scope of work
As a result, Lycopodium's scope of work and the DFS update will focus on maximising and de-risking the initial oxide processing phase.
It will look to maximise the project value (NPV) and work with Toubani to ensure the project’s operating cost profile is competitively positioned compared to peer projects.
Once the oxide throughput rate is determined, Lycopodium will be responsible for the process plant DFS design as well as related infrastructure that will also optimally provide for an oxide/fresh rock blend later in the mine life.
Toubani CEO Phil Russo said, “We are very pleased to be partnering with Lycopodium on the DFS Update. Lycopodium is a Tier 1 engineering company with an enviable track record in both studies and project execution in Mali and West Africa, and its operational insight and experience will be key as we position Kobada as an oxide-dominant gold project of significance.
“The DFS Update will utilise the recent mineral resource update as the foundation for the Kobada pit design and mine planning. With some 1.5 million ounces in shallow, free-digging oxide mineral resources, we are able to plan an oxide-focused project phase over an extended life leveraging the technical strengths that make Kobada compelling.
“We look forward to advancing the DFS Update at a key point in time for the company and the sector overall given the dearth of low technical risk projects of scale currently coming through the development pipeline.”