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Mining rig in the bush


Kobada Gold
Project, Mali


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

Kobada is a near-surface gold project that has a global resource base of over 2.3 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 2.3 Moz in all categories
  • Strong economic potential demonstrated in 2018 feasibility study
    • Pre-tax NPV5% of US$284 M and IRR of 45.5%
    • Post-tax NPV5% of US$226 M and IRR of 41.1%
    • AISC of US$782/oz Au
    • Initial capital cost of US$136.1 M (including contingency)
    • Annual production of 100,000 oz Au
  • 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 2.3 Moz resource stretches over 4 km within a larger 12 km strike length that is yet to be properly tested
    • An additional 26 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 , 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 Reserve Estimate Above 0.37 g/t Au

Reserve Category Mt Au g/t Au oz
Proven 11.04 0.95 336,300
Probable 16.09 0.81 418,500
Proven & Probable 27.13 0.87 754,800

Mineral Resource Estimate Above 0.35 g/t Au

Resource Category Mt Au g/t Au oz
Measured 24.63 0.79 590,910
Indicated 22.02 0.95 600,350
Measured & Indicated 46.66 0.86 1,191,270
Inferred 31.54 1.33 1,138,810

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

The mineral reserve and resource estimate at Kobada Gold Project, was prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum “CIM” (2014) Definition Standards incorporated by reference in NI 43-101, and is the result of 11,428 meters (67 drill holes) of drilling completed by the Company between H2 2019 and H1 2020 in addition to the historical drilling completed in previous years.

The total quantity of drilling completed to date is more than 127,455 meters.

Gold mineralization is present in the laterite, saprolite, and quartz veins that comprise the project, and in the sulphidic hard rock underneath. There are also placer style deposits in the region.

The Kobada deposit is unusual for the depth of weathering, with an average base of oxidation occurring up to 150m below the surface.

Exploration Potential















The Kobada Project represents a significant opportunity for resource growth.

With only a limited amount of additional drilling, the Company expects to convert further ounces from the inferred oxide resource category to the indicated category. With a resource to reserve conversion of 84%, and a total of 574,850 oz of oxide resource in the inferred category, it is expected that the overall reserve could increase significantly. The plan is to undertake this drilling during the second half of 2020.

The drill results of Phase 1 and 2 indicate that the deposit remains open at depth and along strike, with a significant extension being delineated to the north of the main mineralised shear zone.

While only 4 km of the main shear zone at the Kobada project were considered for the DFS, a further 26 km of shear zones have been identified on the concessions with high-grade satellite deposits at the Gosso target and Faraba. These targets represent an attractive potential for the future sources of production.

The Company is confident that with limited drilling and a high resource to reserve conversion rate, the inferred oxide resources can be converted into additional reserves. This will be a priority during 2020 and will result in mine life being extended. Additional exploration on the highly prospective northern main shear zone and the Gosso target is expected to further increase the probability of additional resources, and this will be a target during 2020-2021.