West African gold producer Thor Explorations (TSX-V:THX) has completed a Prefeasibility Study (PFS) for the Douta Gold Project in Senegal, confirming a robust, long-life gold project with strong economics.
Douta’s production will total one million ounces of gold from 37 million tonnes of mill feed grading an average of 1.03 grams per tonne over 12.6 years of operations.
The PFS outlines Douta to have a pre-tax net present value of US$908 million and an internal rate of return of 73% at a long-term gold price assumption of US$3,500 an ounce.
Gold production is forecast to total 411,000 ounces of gold in the first four years, at an all-in sustaining cost of US$1,493 an ounce, generating a pre-tax cashflow of US$814 million.
As a result, net cash flow post repayment of project capital totals US$561 million, with an anticipated payback period of 11 months following the start of processing.
Thor Explorations says the PFS positions the company to advance its next development project, paving the way to become a multi-asset producer operating across two countries, with first production from Douta targeted for early 2028.
What’s still to come
CEO Segun Lawson says several drill targets are delineated through soil, rock chip and auger sampling, while drill programs remain ongoing, targeting additional oxide resources in the Douta West and Bousankhoba permits.
“The continued growth of the Makosa trend and inclusion of the first ounces from the Baraka 3 discovery underscore the district-scale potential of the Douta Project,” Lawson says.
“We are currently undertaking our 2026 budgeted 40,000 metre drilling program and aim to update the resource in Q3 this year.”
Lawson adds with an approved environmental and social impact assessment and active exploration across multiple prospects, the company is positioned to advance Douta towards development.
“We are also pleased to have agreed terms this month and signed a binding agreement with Birima, our Douta-West permit joint venture partner,” the CEO says.
“This acquisition positions us to own the entire Douta Project consisting of the Douta and Douta-West licences on a 100% equity basis and allows for an efficient development process and full exposure to the project economics prior to the Government of Senegal’s 10% free carried interest.
“In completing this PFS, we have undertaken a significant amount of work alongside our engineering procurement contract (EPC) contractor, giving us comfort in the EPC pricing and positioning us to fast track to an updated Feasibility Study.”
Thor Explorations says the project will be entirely funded from its existing cash reserves of US$137 million and project financing.
Douta, covering 58km2, is located within the Birimian rocks of the Kéniéba inlier in eastern Senegal. The project has an indicated resource of 50.6 million tonnes @ 1.04g/t gold for 1.7 million ounces, as well as an inferred resource of 9.3 million tones @ 0.92g/t gold for 273,000 ounces.
Write to Aaliyah Rogan at Mining.com.au
Images: Thor Explorations
