Following the success of recent resource definition drilling, Toubani Resources Ltd (ASX:TRE) has updated its 2024 mineral resource estimate (MRE) for the Kobada Gold Project in southern Mali, lifting indicated oxide ounces by 44% and grade by 10% for total indicated resources of 2 million ounces.
According to the company, Kobada is on track to become the next open pit gold development asset of significance in West Africa.
The 2024 MRE saw an increase in the shallow, free dig oxide indicated resources of 44% to 1.4 million ounces of contained gold (49 million tonnes at 0.88 g/t gold), while the grade of indicated resources increased by 10% to 0.87 g/t.
The higher-confidence indicated ounces at Kobada now total a significant 2 million ounces (71 million tonnes at 0.87 g/t gold), a 30% increase from the 2023 MRE.
Toubani notes that more than 80% of the oxide inferred resources targeted in the resource definition drill program have been converted to indicated, exceeding its expectations.
The 2024 MRE marks completion of a key milestone in Toubani's development of a bulk tonnage, low-cost oxide-dominant project with definitive feasibility study (DFS) update activities well advanced. The increase in indicated tonnage, ounces and grade is anticipated to improve study results.
Toubani says “significant opportunity” for future growth in the MRE will be pursued, targeting mineralisation falling outside the MRE, especially at depth, and satellite deposits not included in this MRE such as Kobada West and Gosso.
With around 40 kilometres of the more than 50-kilometre regional-scale shear zones yet to be drill tested, significant exploration upside remains outside of known targets.
“A fantastic result"
Toubani CEO Phil Russo said: “The successful delivery of the 2024 MRE is a fantastic result that exceeded the company's expectations in ounces converted and increases in grade - two key drivers of the upcoming DFS - and means that the Kobada Gold Project is now "study ready" with a robust, high confidence mineral resource to inform open pit and process flowsheet designs for input into the DFS Update.
“To achieve 2 million ounces of contained gold in indicated resources is a significant achievement and clearly differentiates Kobada from its development peers on the ASX and globally.
“Our vision is to reposition Kobada as a reduced technical risk, low strip, bulk-tonnage, oxide-dominant open pit development project of scale.
"Having converted over 80% of our oxide inferred ounces, we now have 1.4 million ounces of oxide material in indicated resources on which to base the DFS Update, 44% more than in the previous MRE.
“With almost 50 million tonnes of such material, as well as a 10% increase in estimated grade in the new MRE, the improved tonnage and grade profile is anticipated to improve the results of the forthcoming DFS Update.
“Our current focus is on the DFS Update and accordingly we have not advanced exploration and resource growth to date in 2024.
“There remains significant upside at Kobada Main, especially at depth below the current MRE, as well as across the +50 kilometre regional-scale shear zones known to host mineralisation within the Kobada Gold Project. Toubani's drilling has already proven the presence of mineralisation at prospects like Kobada West and Gosso.
“With the recent additions to the board and owners’ team Toubani is well placed to advance Kobada as an asset capable of producing at scale and competitive operating costs.
"We look forward to showcasing the attractiveness of Kobada in the DFS Update due in September, where the strengths of Kobada as a simple, low technical risk oxide development project are set to be amplified.”