- African Gold (AGG) has updated some technical data for its Kobada Gold project’s definitive feasibility study
- The junior explorer already completed one feasibility study in 2016, but went back to the drawing board after the economics of the project didn’t stake up
- The company’s new resource model and feasibility study show a 100,000 ounce per year operation, with a net present value of $385 million
- The resource model estimates some 728,654 ounces of gold is contained within the deposit however significant portions of the property reman unexplored
- African Gold (AGG) is in the grey and is trading at C$0.32 per share
African Gold (AGG) has posted some updated technical information regarding its Kobada Gold project’s feasibility study.
The company has increased the proposed production capabilities of the project to an impressive 100,000 tonnes per annum operation.
Africa Gold has estimated 728,654 ounces of gold will be produced from the project over its lifetime, with an average total operating cash cost of approximately C$955 per ounce.
The company has thus far completed the advanced work on designing its processing plant, completed permitting, and is commencing the next phase of construction on the project.
The mine is expected to have a life of 9.4 years, with a pre-tax net present value of approximately $385 million. The company estimates capital expenditures for the project of approximately $170 million, with a payback period of 3.82 years.
CEO of African Gold Group, Danny Callow said he was very excited to be delivering the definitive feasibility study, which he said shows marked improvement over the 2016 study.
“We are pleased to announce significantly improved project economics on the back of a large jump in mineral reserves, based on a solid foundation of additional drilling, an updated resource model and a comprehensive metallurgical test program.
“We have worked tirelessly, despite the impact of COVID-19 to deliver this study on time and 20 per cent below budget.
“Based on the limited exploration drilling on only four kilometres of the 30 kilometres of identified structural shear zones on the property, we believer there is sign icing potential to improve the resources and reserves further with limited additional exploration,” he said.
African Gold (AGG) is in the grey and is trading at C$0.32 per share at 1:45 am EDT.