Name of the Project
Kobada gold project.

Location
Southern Mali.

Project Owner/s
Africa-focused gold developer Toubani Resources.

Project Description
A definitive feasibility study (DFS) completed in October 2024 has confirmed Kobada as a significant gold development asset underpinned by its large-scale, free-dig and open-pittable oxide resource.

The ore reserve estimate is 53.8-million tonnes at 0.90 g/t for 1.56-million ounces of gold.

The DFS proposes average production of 162 000 oz/y over the current 9.2-year life-of-mine for total gold production of 1.49-million ounces of gold.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $870-million and an internal rate of return of 72%, with a payback of 1.25 years.

Capital Expenditure
The October 2024 DFS estimates total initial development capital of $216-million.

Planned Start/End Date
None stated.

Latest Developments
Toubani Resources has announced an agreement with the Mali government to develop the Kobada project under the provisions of the country’s 2023 mining code. 

This solidifies the project’s fiscal foundation, propelling the company towards its final investment decision (FID). 

The agreement establishes a framework for development, with Toubani holding a 65% equity stake, while Mali will own 35%, which includes a 10% free carried interest and additional paid interests. The project also benefits from a 2% reduction in royalty rates, providing further financial certainty.

A major part of the agreement involves the establishment of a joint operating entity, Mines de Kobada, which will manage the mining operations and facilitate the transfer of the mining licence. Toubani and the State are also set to complete all necessary implementation documents, with the timely processing of the mining licence transfer expected soon.

"With this foundation in place and a clear and certain path forward, we are accelerating our project-readiness workstreams, including advancing our ESIA and project financing activities, as we move toward FID later this year," Toubani MD Phil Russo has indicated.

Key Contracts, Suppliers and Consultants
Minxcon Group South Africa (mineral resource estimate); DRA Americas (mining and mineral reserves); Maelgwyn Mineral Services (metallurgical testwork); ABS-Africa (environmental and social studies); Epoch Resources (tailings storage facility); SENET (processing plant and infrastructure, including economic valuation and report compilation); Knight Piésold (DFS – tailings dam design and costing); Global Commodity Solutions (DFS – geology and exploration); Entech (DFS – mineral resources); Oreology (DFS – pit optimisations, mine design and mine scheduling); Minero Consulting (DFS – mining operating and capital cost estimation, and ore reserves); Lycopodium (DFS – metallurgical testwork review, process plant design, process plant operating and capital cost estimation); ABS Africa (DFS – environmental and social impact); Anandarasa Advisory (DFS – financial modelling); and Cantilever Future Solutions (DFS – study management and environmental, social and governance oversight); and Endeavour Financial (financial adviser).

Contact Details for Project Information
Toubani Resources, email info@africangoldgroup.com.