Aurum Resources (ASX:AUE) will immediately commence a Definitive Feasibility Study (DFS) targeting first gold at Boundiali in the first half of 2028.
The company reports a maiden probable ore reserve estimate of 42.1 million tonnes at 0.9 grams per tonne gold for 1.21 million ounces from four open pit deposits in northern Côte d’Ivoire, effective 30 April 2026 under the JORC Code 2012.
Approximately 77% of indicated mineral resources have been converted to probable ore reserve, evaluated at a conservative gold price of US$2,900 per ounce.
The 6Mt-per-annum development delivers a life of mine (LOM) inventory of 66.2Mt at 0.82g/t gold for 1.7Moz over 11 years at 86.7% recovery.
First five years processing of 30.4Mt at 1.1g/t gold will produce 923,000oz recovered at an average of 185,000oz per annum, with 201,000oz produced in year one.
“Our Boundiali PFS confirms our initial belief that this project had the makings of something big,” Managing Director Caigen Wang says.
“Now, around 28 months since picking up this ground, we have delivered a study that outlines a project with the potential to deliver very strong free cashflows.”
Robust financial outlook
Based on the consensus forecast mean gold price of US$4,076 ($5,817.41) per ounce, the LOM plan delivers 1.5Moz over 11 years, generating a post-tax NPV of approximately US$1.5 billion, an IRR of 119%, and US$2 billion ($2.85 billion) in free cash flow, against pre-production capital of US$342 million (including a US$34.2 million contingency).
“With the ore reserve as the foundation, the LOM plan, which incorporates inferred resources that we expect to convert through ongoing infill drilling, delivers nearly 1 million ounces of recovered gold over the first five years, with first-year production of more than 200,000 ounces,” Wang notes.
The company has 16 self-owned diamond rigs drilling continuously and delivered 24% indicated uplift last month alone.
With Perseus Mining (ASX:PRU) (cornerstone investor in the March placement) and Zhaojin on the register, the strategy remains to complete the DFS in late 2026, take a Final Investment Decision, and target first gold in 2028.
Pre-production capital of US$342 million covers a process plant, site infrastructure, a 90-kilovolt grid power connection, phase one of a tailings storage facility, mining establishment, pre-production mining, and owner’s costs.
A comprehensive environmental and social impact assessment has been completed, with Certificates of Environmental Compliance issued by the Côte d’Ivoire Minister of Environment and Ecological Transition on 20 May 2026, covering all three project tenements.
Aurum has reported a cash balance of $61.5 million as at 31 March 2026 and carries no material debt.
Write to JC Villarba at Mining.com.au
Images: Aurum Resources
