This article is a sponsored feature from Mining.com.au partner Toubani Resources. It is not financial advice. Talk to a registered financial expert before making investment decisions.
Toubani Resources (ASX:TRE) is on the path to production at the Kobada Gold Project, located in West Africa’s prolific Birimian Greenstone Belt in Southern Mali.
In early March 2026, the Toubani board approved a positive Final Investment Decision (FID) for Kobada, bringing a lot of forward momentum as the company has now rapidly expanded its project team to start moving the project forward, with first gold production targeted for Q3 2027.
Managing Director Phil Russo says that following the FID decision, “it’s all systems go now to develop the mine”.
Kobada: Large-scale oxide project with strong fundamentals
Russo notes that Kobada “ticks all the boxes” for what you’d want to see in a development project.
“Kobada is a rare, large oxide project for this sector,” Russo says.
The project extends over 5km of strike and has a mineral resource of 2.2 million ounces (indicated and inferred) that is defined within a 4.5km long open pit. The resource remains open along strike and at depth.
The feasibility study outlines an annual gold production of 162,000 ounces a year for nearly 10 years, with 80% of that focused on these high margin oxide ounces.
The initial development capital cost is US$216 million, and Russo notes that Toubani is about 40% of it is committed.
Kobada hosts an ore reserve of 1.56 million ounces, representing about a 78% overall conversion of indicated resources. The oxide represents 82% of the ore reserve.
The decision to FID for Kobada is a significant step for the project, and Russo notes that the company was able to make this decision due to achieving a number of other key project milestones first.
“We finalised our deal with the State of Mali, received our environmental permits, the resettlement action plan was approved, and long lead items were committed to,” Russo says.
“All of those milestones led to the ability to declare a positive final investment decision.
“Now, we’ve set ourselves a goal of first gold production in Q3 next year.”
Russo notes that from here on out, the company is focused on executing the development of Kobada.
On 16 March 2026, Toubani commenced the construction of the project, as reported. The company convened the traditional and customary chiefs from surrounding villages together with the Toubani development team to mark the commencement of earthworks.
Russo notes that the company has teams in place in both Mali and Perth to execute on the development.
Initial construction is focused on bulk earthworks at the processing plant, water dam, tailings storage facility, and accommodation facilities.
Key items have begun to be shipped, with materials for the CIL tanks construction set to arrive at the site in the coming weeks.
Alongside this, Toubani has commenced its largest ever drilling campaign at the Kobada Project, with drilling spanning up to 100,000m across the project.
Drilling comprises 60,000m of reverse circulation drilling to expand the resource base, 40,000m of aircore drilling to test regional targets and develop new prospects, and additional diamond core drilling will test for high-grade mineralisation.
Russo notes that the team at Toubani is well-placed to deliver these plans and get the company to first gold production in 2027.
“We’re a very experienced company, and when it comes to developing mines, our board and management have a lot of experience. That puts us in a really great position.”
Mali: Established gold jurisdiction supporting development
Looking at Mali, Russo notes that the country is the second largest gold producer in Africa.
“It’s a very mature mining jurisdiction,” Russo says.
“There is considerable infrastructure in place, with key supply chains and contractors there for us to tap into.”
The company notes that the government has a strong ambition to develop its mining resources and is involved with the development of operations such as Kobada.
As reported, Toubani executed a binding agreement with the State of Mali in late January 2026 to progress its development activities at Kobada, with the State of Mali gaining an interest in the project, to be capped at 35%. The project will be governed under the 2023 Mining Code.
The agreement helps to secure the long-term future for the project, providing certainty for the company and all stakeholders.
Rapid construction timeline positions Toubani for growth
Russo believes that Toubani is set for a re-rate given the current state of development for Kobada.
The current high gold prices certainly help on this front.
“Toubani’s a successful mine at less than US$2,000 an ounce gold. What we’ve got here is a rapid construction timeline to try and capitalise on these gold prices that we’re in in this cycle.
“As an investor, your downside is quite protected and your upside is all here as we execute that development phase and move into production next year.”
Write to Amy Rotman at Mining.com.au
Images: Mining.com.au and Toubani Resources
