KOBADA GOLD PROJECT JV
Overview
The Kobada Gold Project (“Kobada”) is an advanced stage gold development project located in Mali, Africa`s 3rd largest gold producing nation. The Company owns a 90% interest in the Kobada gold project with the Government of Mali retaining a 10% carried interest.
The Project is located approximately 126 km south-west of Bamako, the capital city of Mali, in the Birimian Greenstone belt, with excellent transportation links to the capital and excellent logistics routes via other West African ports.
Southern Mali is considered a politically stable jurisdiction and a home to a number of gold producers. These include Endeavour Mining, Barrick, AngloGold Ashanti and Resolute Mining.
Economically Attractive Project
- Pre-tax IRR of 45.5% and NPV5% of US$284 mln
- Post-tax IRR of 41.1% and NPV5% of US$226 mln
Near Term Gold Producer
- Targeted start of construction in Q4 2020, first gold in Q2 2022
- DFS completed to high engineering standard with firm quotes from equipment providers
- 3 Mtpa plant with annual gold production of 100,000 ounces at an AISC of US$782/oz over LOM
Low construction cost and cost profile
- Simple contractor driven mine plan and Gravity + Carbon-in-Leaching (“CIL”) processing plant with a total capital cost of US$136 mln (including contingency)
- Predominantly a “free-dig” mining operation with LOM Operating Cost of US$704/oz
- Once in production, AGG will be one of the lowest cost producers in West Africa
Large and Growing Mineral Resource
- Measured & Indicated: 1.2 Moz Au @ 0.86 g/t
- Inferred: 1.1 Moz Au @ 1.33 g/t
- Proven & Probable: 754,800 oz Au @ 0.87 g/t
Fully Licensed and Permitted
- Mining license is valid until July 31, 2045
Significant Upside Potential
- Only 4 km within a larger 30 km shear zone has been drilled to date
- Opportunity to quickly convert 575,000oz of inferred oxide resource