Turaco Gold (ASX:TCG) has reported a maiden JORC probable ore reserve of 1.91 million ounces for its Afema Gold Project in Côte d’Ivoire.
The declaration is underpinned by a Prefeasibility Study (PFS) that confirms ‘compelling’ economics for an over-200,000-ounce-per-annum open pit gold operation.
According to the PFS, Afema can deliver an average annual gold production of approximately 196,000 ounces over a 10.3-year mine life, with the initial seven years averaging 215,000 ounces per annum.
The reserve covers the Woulo Woulo, Jonction, Anuiri, and Asupiri deposits, all located within the existing granted mining permit.
Based on a gold price of US$2,000 ($2,830) per ounce, the project delivers life-of-mine cash operating costs of US$1,268 per ounce and an all-in sustaining cost of US$1,508 per ounce.
At a US$3,500 per ounce gold price, the project generates a post-tax net present value of US$2.1 billion and a 79% internal rate of return, with payback achieved in 13 months.
Managing Director Justin Tremain says the study demonstrates “exceptional economics for the benefit of all stakeholders.”
“There are very few gold development projects in Africa of this scale,” Tremain says.
“Given recent resource growth, it is very easy to see Afema increasing in scale and mine life.”
Tremain adds that the PFS results will facilitate the completion of the environmental and social impact assessment.
As part of the study, Turaco Gold has also updated the project’s mineral resource estimate to 4.65 million ounces.
The company now intends to advance the project to a Definitive Feasibility Study (DFS) targeted for completion in the Q2 of 2027, which will include detailed design and engineering to accelerate Afema’s development.
First gold production is targeted for 2029.
Turaco Gold is an exploration and development company focused on advancing its large-scale flagship Afema Gold Project in Côte d’Ivoire.
Write to Paula Fabe at Mining.com.au
Images: Turaco Gold
