Toubani Resources increases indicated resource to 2.0Moz gold at Kobada project in Mali
Grade also increase by 10% to 0.87g/t gold
DFS update on track for completion in September 2024
Special Report: Toubani Resources has increased the indicated ounces in the oxide zone of its mineral resource estimate at the Kobada gold project in Mali by 44% to 1.4Moz and grown overall indicated ounces by 30% to 2.0Moz.
Higher confidence indicated ounces now total 2Moz (71Mt at 0.87g/t gold), an increase of 30% versus the 2023 MRE.
The large proportion and volume of oxide material augurs well for future development scenarios, given that material is typically cheaper, easier and less energy intensive to process than fresh rock given it is free-dig, near surface material
Over 80% of the oxide inferred resources targeted in the company’s recent resource definition drill program have been converted to indicated.
This is expected to lower the technical risk for the proposed initial phase of the Kobada project, which will comprise a bulk tonnage oxide mining and processing operation.
The company has also increased the grade of its overall indicated resource by 10%.
Definitive feasibility study in the works
Toubani Resources (ASX:TRE) is confident these shallow, free dig oxide resources put Kobada on track to become the next open pit gold development asset of significance in West Africa.
The recent update is expected to improve the results of the forthcoming definitive feasibility study update in September.
“The successful delivery of the 2024 MRE is a fantastic result that exceeded the company’s expectations in ounces converted and increases in grade – two key drivers of the upcoming DFS – and means that the Kobada Gold Project is now ‘study ready’ with a robust, high confidence mineral resource to inform open pit and process flowsheet designs for input into the DFS update,” TRE CEO Phil Russo said.
“To achieve 2 million ounces of contained gold in indicated resources is a significant achievement and clearly differentiates Kobada from its development peers on the ASX and globally.
“Our vision is to reposition Kobada as a reduced technical risk, low strip, bulk-tonnage, oxide-dominant open pit development project of scale.
“Having converted over 80% of our oxide inferred ounces, we now have 1.4 million ounces of oxide material in indicated resources on which to base the DFS update, 44% more than in the previous MRE.”
Graph: Comparison of Kobada Mineral Resource by level showing Indicated and Inferred Resources. Source: TRE.
With almost 50Mt of such material, as well as a 10% increase in estimated grade in the new MRE, the improved tonnage and grade profile is anticipated to improve the results of the forthcoming DFS update.
“We look forward to showcasing the attractiveness of Kobada in the DFS Update due in September, where the strengths of Kobada as a simple, low technical risk oxide development project are set to be amplified,” Russo said.
Even more upside potential
Russo says there remains significant upside at Kobada Main, especially at depth below the current MRE, as well as across the +50km regional-scale shear zones known to host mineralisation within the Kobada gold project.
“Toubani’s drilling has already proven the presence of mineralisation at prospects like Kobada West and Gosso,” he said.
“With the recent additions to the board and owners’ team Toubani is well placed to advance Kobada as an asset capable of producing at scale and competitive operating costs.”
This article was developed in collaboration with Toubani Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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