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Mining rig in the bush


Kobada Gold
Project, Mali


The Kobada Project is an advanced gold project located approximately 125km south south west of Bamako, the capital city of Mali.

Kobada is near-surface gold project that has a global resource base of over 2.2Moz of gold. The project is located in Mali, Africa’s 3rd largest gold producing nation, 125 km south of its capital, Bamako. Previous operators completed 1,108 holes and 126,335m of drilling on the property and completed 3 economic studies, the last one being a feasibility study released in February 2016. Although the economics were compelling, the new management of the project has decided to undertake internal scoping studies in order to gain a better understanding of the project with a goal to optimize the size of the envisioned mine and increase the confidence in the resource model.

Project Highlights

  • Global resource of 2.2Moz in all categories
  • Strong economic potential demonstrated in feasibility study
    • LOM cash costs of US$557/Oz
    • Initial capex of US$45.4M
    • Post-tax NPV5% of US$86M and IRR of 43%
  • Shallow mineralization with deep oxidation
    • Ore is largely free-digging enabling mining to be conducted with significantly less blasting than other more conventional ore bodies
    • Simple processing enables pre-concentration of ore resulting in lower processing costs
  • Significant resource growth potential
    • The 2.2Moz resource stretches over 4km within a larger 12km strike length that has not been properly tested
    • An additional 30km of shear zone structures have been identified on the property and have yet to be explored


The Kobada Project is an advanced gold project located approximately 125km south south west of Bamako, the capital city of Mali. Southern and western Mali is politically stable and home to a number of gold producers. These include Randgold Resources’ Loulo and Morilla Mines, Resolute Mining’s Syama Mine and Anglogold Ashanti/IAMGold’s Sadiola Mine.

Regional Geology

The Kobada Gold Project lies on the western limb of the Man Shield.

The Man Shield consists of Birimian Greenstone Belts and Proterozoic granites. It is host to a number of significant gold deposits including:

  • Siguiri 4.9 Moz, 84km west;
  • Kalana 1.5 Moz, 105km ssw;
  • Morila 5.9 Moz, 187km east;
  • Syama 5.2 Moz, 290km ese.

All of these existing mines are located in Birimian Greenstone Belts similar to Kobada.

Kobada Mineral Resource Estimate

Kobada Gold Project
Mineral Resource Estimate Above 0.3 g/t Au

Resource Category Mt Au g/t Au koz
Measured Mineral Resource 11.0 1.1 380
Indicated Mineral Resource 24.4 1.1 835
Total M&I Resource 35.4 1.1 1,215
Inferred Mineral Resource 32.8 1.0 1,024

The Kobada Mineral Resource stretches over 4km of strike, although the mineralised structure has been mapped over 12 km of strike.

The resource has been established from the drilling of more than 1,095 individual drill holes on the property, predominantly of diamond and reverse circulation drilling methods.

The total quantity of drilling completed to date is more than 126,000 metres (126km or 78.6 miles).

The resource comprises four main ore types:

  • Laterite ore, overlaying the main deposit;
  • Oxide ore types consisting of ultra-weathered saprolite containing quartz veins;
  • Transitional and fresh ore types consisting of partially and un-weathered sedimentary rocks and quartz veins.

The Kobada deposit is unusual for the depth of weathering, with the base of oxidation occurring up to 120m below surface in some locations.

Exploration Potential

The Kobada Project represents a significant opportunity for resource growth.

The Company believes that the resource target may well be in excess of the current resource base, although significant additional work, in the form of resource drilling, is required to achieve this.

The Company’s strategy is to establish an operating gold mine on the current resource, and grow the resource by funding drilling from operational cash flows.

The primary target is outcropping or shallow oxide ore types down to a maximum depth of 25m.

There is significant opportunity to establish these shallow resources along the main Kobada Shear Zone, but there is also significant opportunity on the splays and parallel shear zones that occur elsewhere on the 215km2 lease holding.