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Toubani Resources commences first drill program at Kobada since ASX listing

Published 12/12/2022, 10:45 pm
Updated 12/12/2022, 11:00 pm
© Reuters.  Toubani Resources commences first drill program at Kobada since ASX listing
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Toubani Resources Inc. (TSX-V:TRE, ASX:TRE) said it has commenced a 10,750-meter drill program at its flagship Kobada Gold Project in southern Mali, the first since its dual listing on the Australian Securities Exchange (ASX) last month.

The company said the 2022/2023 drilling campaign will target highly prospective strike extension from the existing resource base, focusing on previously identified target areas based on soil geochemical sampling, artisanal mining, geophysics trends and historical drill holes, in the larger Kobada mining permit area.

“We are pleased to see the drills turning back at Kobada following a very well-supported ASX listing,” Toubani president and CEO Danny Callow said in a statement. “We believe that near-term value is in the drill-bit with more than 50 kilometres of identified shear zones yet to be tested.”

READ: Toubani Resources sees shares put in a healthy performance as trading commences on Australian Securities Exchange

The aim of the drilling campaign is:

  • To test the mineralised zone of the main shear zone (MSZ) to the south and north
  • To test the continuity of a second mineralised zone to the east of the main Kobada orebody
  • Drill around historical artisanal mining where there are extensive workings
  • Test new potential gold mineralised zones
  • Follow up on auger drilling anomalies showing strong gold mineralisation
“The drill campaign will focus on the highly prospective areas around the existing resource shell, specifically looking at extending the mineralised strike length to determine upside to the resource,” Callow added. “We will be focusing our campaign on stepping out from known mineralisation, as well as following up areas that have shown potential through our regional exploration results. These are exciting times for Toubani and we look forwards to testing the upside potential through this exploration programme.”

Toubani said a comprehensive drill program has been designed to target all known anomalies on the Kobada Gold Project. The program will be revised according to the results from the current drill program.

In line with the company policy of utilising high-quality local service providers, the company said the contract for the upcoming drilling campaign has been awarded to a West Africa-focused drilling company that is permanently based in Mali. ETASI, with its specialised personnel, has been recognised as one of the leading providers of specialist drilling services in the region.

"We have spent the past three years focusing on defining and upgrading the quality of the resource and are pleased to have a total resource of 3.1 million ounces already defined, of which 1.7 million ounces is in the Measured and Indicated category,” Callow noted. “Our previous success with the drill bit (growing resources by more than 40% since late 2019) gives us confidence that there are a lot more ounces to define on this property. We look forwards to updating the market with ongoing results of this campaign in due course.”

Agent compensation – ASX listing

Toubani also announced that leading Australian resource brokers, Canaccord Genuity (Australia) Limited and Foster Stockbroking Pty Ltd, were appointed as Lead Manager and Co-Lead Manager respectively for the company’s ASX listing process and placement of 30,000,000 CHESS Depositary Interests over common shares in the company.

The company said that Canaccord Australia acted as the lead manager under the ASX Offer, and in connection with its services as the lead manager, was paid 6% of the proceeds under the ASX Offer, being A$360,000. Canaccord Australia was also issued a total of 2,972,383 options, Toubani said.

Toubani Resources wants to build Africa’s next mid-tier gold producer. The advanced Kobada project in southern Mali is the main asset. A 2021 definitive feasibility study has been completed.

As well as the initial Kobada project, other exploration locations have been identified on the Kobada, Farada and Kobada Est concessions, offering the potential to increase the resource.

Contact the author at stephen.gunnion@proactiveinvestors.com

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