Toubani Resources (TRE.AX) the new name of African Gold Group has released an updated resource estimate on its flagship Kobada gold project in Mali. The updated resource estimate came in at 2.4 million ounces of gold, including 1.53 million ounces in the indicated resource category. As you can see below, in excess of 60% of the total gold content in the resource is part of the indicated resource category. And more important for the development scenarios at Kobada; in excess of 60% of the total resource is classified as oxide-hosted (the layer of oxide extends to a depth of up to 70-100 meters along the 4.5 kilometer long but shallow pit outline).
And that will be important for the definitive feasibility study as Kobada already was an oxide project during African Gold Group’s era. With just under 1 million ounces of gold in the indicated resource category the company may want to upgrade as much of the 0.5Moz oxide-hosted inferred resource as possible as a DFS obviously cannot take inferred ounces into consideration.
On top of that, the company is planning to complete additional drilling at Kobada West and Gosso satellite projects which could add tens of millions of tonnes to the currently known resources (and hopefully this will also help to boost the reserves further down the road). Because keep in mind the total amount of gold in the current resource is actually lower than in the 2021 resource calculation which hosted 1.7 million ounces of gold in the measured and indicated category and an additional 1.43 million ounces in the inferred resource category.
Disclosure: The author has no position in Toubani Resources. Please read the disclaimer.