The Kobada Gold Project is on the cusp of joining another tier of development assets, amid the rising price of gold, Toubani Resources (ASX:TRE) CEO Phil Russo tells Mining.com.au.
The price of gold is currently US$2,398.70 ($3,656). On 24 July 2024, gold’s spot price touched $3,669.89 per ounce, which is the peak price in the last seven days.
“We have an advanced asset that has had over $100 million invested in it to date, hence where the gold price is today, we think the best path to value realisation is demonstrating the inherent value in our deposit,” Russo tells this news service.
Toubani Resources, which has a market capitalisation of $33.5 million, is doing this through an updated Feasibility Study, which will be completed later this year.
The Feasibility Study is assessing the potential for a higher processing rate, and consequently increased annual gold production, with an initial oxide focused project phase, followed by including fresh material later in the mine plan.
Russo tells this news service that the company believes it will see the project join another tier of development assets.
“Not to mention we are one of the only large oxide development projects still in the hands of a single asset developer,” he says.
Russo says higher gold prices aid the producers with cash flow, but the next tier down, the developers, can see the value in their assets increase under a supportive gold price cycle.
“Producers need to replace ounces and developers de-risking and advancing development assets so that they are shovel-ready and as robust and attractive as possible, we think, is the best path to capitalise on the tailwinds in the current climate,” the CEO says
“We believe the underlying drivers supporting gold so far are here to stay for the long term and with gold’s new highs, we find it hard to mount a case that gold becomes less relevant from here, which bodes well for the sector overall.”
The Kobada Gold Project lies in southern Mali, West Africa and has a 2.2 million ounce resource. The main deposit is a large, shallow, and well-drilled open pittable resource.
Toubani Resources is an explorer and developer focused on advancing Africa’s next gold development project with its oxide-dominant Kobada Gold Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Toubani Resources
