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Mining rig in the bush


Kobada Gold
Project, Mali


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

Kobada is near-surface gold project that has a global resource base of over 2.2 Moz 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 1,118 holes and 127,455 m of drilling on the property and completed 3 economic studies, the last one being a feasibility study released in February 2016. In 2019, the new management of the project has embarked on a process to deliver a Definitive Feasibility Study (“DFS”) by Q2 2020 with the aim of upgrading its geological model and understanding of the ore body. A new definitive feasibility study will incorporate the results of an additional expected 12,000 m of diamond drilling and 3,000 m of RC in-fill drilling to gain a better geological understanding of the main shear zone and additional highly prospective exploratory targets. In addition, the Company is carrying out extensive detailed metallurgical test work on representative samples to optimize the processing plant in terms of gold recoveries, capital expenditure and operating costs.

Project Highlights

  • Global resource of 2.2 Moz in all categories
  • Strong economic potential demonstrated in 2016 feasibility study
    • ALL-in LOM sustaining cash operating costs of US$788/oz Au
    • Initial capex of US$45.4 M
    • Post-tax NPV5% of US$126 M and IRR of 55%
  • 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 2.2 Moz resource stretches over 4 km within a larger 12 km strike length that is yet to be properly tested
    • An additional 30 km of shear zone structures have been identified on the property and have yet to be explored
    • 215 km2 land package, with exploitation permit covering 135.7 km2 and exploration permit covering 79.3 km2


The Kobada Gold Project is located approximately 125 km 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 Barrick Gold`s Loulo-Gounkoto Complex 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, 84 km west;
  • Kalana 1.5 Moz, 105 km ssw;
  • Morila 5.9 Moz, 187 km east;
  • Syama 5.2 Moz, 290 km 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 4 km of strike, although the mineralized structure has been mapped over 12 km of strike.

The resource has been established from the drilling of more than 1,118 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 127,455 meters.

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 a 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 215 km2 lease holding.