Name of the Project
Segele gold project.

Location
Ethiopia.

Project Owner/s
Scandinavian gold exploration and mining company Akobo Minerals.

Project Description
The Segele mine started operating in November 2024, having produced 15 kg of gold in the quarter ended December 31. This production was achieved from the mine’s development activities rather than direct mining of the orebody.

Akobo Minerals has since announced a new mine development plan to accelerate the production and commissioning of a processing plant at the mine.

The three-phase mine development plan has been designed to substantially increase ore production and enhance operational efficiency.

Phase 1 of the new mine plan will involve increased production from existing winzes and optimised operations, while the second phase will comprise construction of a vertical shaft and commissioning of a carbon-in-leach system. 

Akobo has been focusing on the comprehensive development of the Eastern winze deposit, which is crucial for facilitating future production. The primary emphasis has been on the development of the prospect drive, which will connect the Eastern and Western winzes.

The vertical shaft will provide access to the project’s indicated resource of 41 000 oz at an average grade of 40.6 g/t. 

The third phase will entail incline shaft development to access deeper sections of the orebody and facilitate underground drilling for further exploration once the vertical shaft is operational.

The company is targeting gold recovery rates of more than 90%.

Potential Job Creation
None stated.

Net Present Value/Internal Rate of Return
None stated.

Capital Expenditure
Total capital expenditure for establishing the mine plant is estimated at $8-million.

Planned Start/End Date
The processing plant was commissioned in July 2024. Akobo produced first gold concentrate at the project in August 2024. Akobo produced its first gold bar from the Segele mine in October 2024.

Latest Developments
Akobo Minerals has successfully completed its first smelt of gold with a new gravity setup at the Segele mine.

The upgraded gravity recovery system is now fully operational, with improvements in recovered grade and purity having been recorded already.

The company produced 7.1 kg of gold doré from ore mined in the second half of May and throughout June, with grades averaging 30 g/t and purity averaging 83%.

This compares with the 1 kg of material having been produced in May at an average grade of 3 g/t, which could have caused near-term liquidity concerns for the company.

Akobo has said that mining and processing activities continue according to plan. The team is currently blending ore from different areas to maintain a stable feed into the processing plant. 

The company continues to try and access higher-grade gold zones at the mine, working with three active headings underground and increasing daily tonnage through process improvements.

A key development in this effort is a planned vertical shaft, which Akobo has said will provide more reliable and consistent access to high-grade sections of the orebody. The company expects the shaft to significantly enhance production stability and overall efficiency.

Key Contracts, Suppliers and Consultants
Peacocke and Simpson (metallurgical testwork); IW Mining (mining contractor); Solo Resources (processing plant); and Sutton Global (mine development plan).

Contact Details for Project Information
Akobo Minerals, tel +47 92 80 40 14 or email info@akobominerals.com.