Toubani Resources (ASX:TRE) has begun a diamond core drilling program to expand the resource inventory and increase the life-span of the Kobada Gold Project in southern Mali.
As part of the 5,000m drilling program, Toubani will focus on testing extensions to mineralisation below the current mineral resource which contains 2.2 million ounces of gold.
Toubani, which has a market capitalisation of $77.2 million, will also collect geotechnical and hydrological data from the drillholes to enable the mine design to be further optimised.
Several holes have been specifically prioritised for detailed geotechnical logging and testing of slope stability, as well as providing critical input to the final pit design.
CEO Phil Russo says this program is an important step in testing the deeper extensions of mineralisation that have not been targeted.
“We see strong potential to grow the resource base and extend mine life,” Russo says.
“Later this year, we’ll follow with reverse circulation drilling to test near-surface targets with the aim of further building the oxide inventory. This underpins our dual track strategy in pursuing growth at Kobada and is an exciting period of activity as we progress towards a final investment decision later in 2025.”
The completion of the reverse circulation drill program will assist in finalising a site layout as well as potentially adding further oxide mineralisation into the project’s resource inventory.
In October 2024, Toubani completed a Definitive Feasibility Study (DFS) which revealed the Kobada Project will produce more than 160,000 ounces of gold on average over its nine-year mine life.
The DFS also places Kobada as one of the lowest capital intensity development projects in the sector, with an initial upfront capital of US$216 million ($332.52 million), including US$18 million in contingency.
Further, Kobada would have a post-tax net present value (NPV) of US$635 million ($966.23 million) and an internal rate of return (IRR) of 58% based on a gold price assumption of US$2,200 per ounce.
Gold’s price is currently sitting at $5,316.2 per ounce, as reported by the ABC Bullion at 10.30am AEST today (16 June).
Trading Economics reports that over the past month, gold’s price has risen 6.95% and is up 48.49% compared to the same period last year.
Toubani Resources is focused on developing West Africa’s next gold mine via its Kobada Gold Project. The Kobada Project is located in Mali, which is the third largest gold producer in Africa. Southern Mali is considered to be a stable environment with the mining industry concentrated in the region.
Write to Aaliyah Rogan at Mining.com.au
Images: Toubani Resources
