Toubani Resources Inc (ASX:TRE, OTC:AGGFF) is on a mission to develop West Africa’s next major gold mine, underpinned by a substantial initial oxide mining operation at its Kobada Gold Project in southern Mali.
The company recently started an optimised definitive feasibility study (DFS) for the 3.1-million-ounce project.
The DFS update will assess the potential for a higher processing rate, and consequently increased annual gold production, with an initial oxide focussed project phase followed by the inclusion of fresh material later in the mine plan.
Toubani believes that a bulk tonnage oxide mining and processing operation represents a lower overall technical risk profile for the project as mining methods are not required to be highly selective, minimal drilling and blasting are required and crushing and grinding circuits are simplified and not as power intensive.
With this goal in mind, the revitalised DFS (first released in 2021) will consider how Toubani can achieve a higher processing rate and boost Kobada’s future annual production.
Clearly defined 2-year strategy
~A$110 million in previous investment in exploration and studies means no significant resource drill-out programs are required ahead of an FID (final investment decision).
Toubani’s 2021 DFS life-of-mine plan contemplates 3 Mtpa (million tonnes per annum) throughput of oxide ore feed for the first 8 years at 100,000 ozpa (ounces per annum).
This will be followed by a combination of oxide and fresh run-of-mine, and stockpile feed from years 9 to 16.
The 2021 DFS demonstrated a life-of-mine AISC (all-in sustaining cost) of US$972/oz.
Toubani’s new optimisation work will assess the potential to increase oxide annual production rates, reduce AISC and maintain a long mine life.
Toubani chief executive officer Phil Russo said following the start of the DFS update: “We are excited to commence the DFS Update workstream as we believe the full potential of Kobada as the next West African gold mine of scale has yet to materialise.
“The DFS Update will pursue the potential for the project to be reoptimized to a throughput level that more aptly supports a bulk mining and lower overall technical risk approach, which is further strengthened when considering the significant existing resources of oxide, free digging material at Kobada.
“We believe Kobada has all the attributes to distinguish itself from its other West African development peers, being free milling ore, a large oxide resource with attractive fresh rock optionality, while also permitted.
“We look forward to completing the update to the DFS later this year to aim to demonstrate the robustness and lower overall risk profile that a larger Kobada project could deliver.”
Mineral resource estimate.
Toubani’s first phase of drilling in 2023 successfully extended the extent of drill-defined mineralisation at Kobada by over 5 kilometres to 11 kilometres.
The exploration strategy for this phase is planned to step out from the known mineralisation at Kobada and test the potential of regional structures.
While the presence and potential of these structures is well known there has only been limited historical testing.
Over 50 kilometres of regional-scale shear zones fall within the Kobada Project area, with the results from this drilling demonstrating the potential of these structures to host gold mineralisation, illustrating the exploration upside present at Kobada.
These shear zones host mineral resources on neighbouring tenure and results to date indicate that there is the opportunity to discover and delineate further mineral resources within the Kobada Project.
Plan showing targets and Toubani drilling adjacent to the Kobada Main Deposit.
Increasing the quantity of near-surface oxide mineralisation is significant given the company’s belief that a bulk tonnage oxide mining and processing operation represents a lower overall technical risk profile for an initial project.
The DFS update will focus on maximising and de-risking the oxide mining and processing phase of Kobada and the exploration potential of the broader project represents an opportunity to generate a portfolio of targets to increase and expand the oxide phase.
Optimising the 2021 DFS Towards >100,000ozpa.
Russo said following the completion of phase 1 drilling: “Our Phase 1 drilling campaign provides us the confidence that with systematic exploration, a portfolio of projects providing supplementary resources to the Kobada Main Deposit can be defined.
“With almost all of the historical drilling to date being focused at Kobada Main, we are only in the early stages of unlocking the significant regional potential of our ground with 11km of drill-tested strike extent now defined over the 50km of interpreted structures.
“To intersect areas of mineralisation where there was no previous drilling is a fantastic result and demonstrates the exciting potential to grow our oxide resource base over time.
“We also have an enormous opportunity below Kobada, where free milling, fresh rock mineralisation is yet to be targeted beyond 100m vertical depth, with the deposit open at depth across the entire 4.5km strike extent.”
Toubani’s value proposition.
Russo added: “We believe that significant untapped value lies in optimising and growing Kobada and this is why we announced the commencement of the DFS Update workstream earlier this month.
“We are excited to be pursuing that potential while also commencing a supporting parallel drilling program shortly.
“We remain focused on continuing to derisk Kobada as it advances rapidly along the development path and positions itself as a project of significance in the region.”