Feasability Study for Gold Mine in Mail See details from NR excerpt below...
1.2 m ounces of M &I at average grade of 0.86 gms per ton
1.1 m ounces of Inferred at average grade of 1.33 gms per ton
Pretax NPV5 at $283.9 million US.
Simple pro rata indicates that Adumbi will come in at $1 billion or higher..
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African Gold Group Inc. has provided an update on the development of its flagship Kobada project. During the past months, the company has been working diligently at advancing the project, focusing mainly on increasing the reserve base and optimizing the free-milling sulphide metallurgical testing as noted in previous press releases on March 16, 2021, and March 30, 2021.
Following the highly encouraging results from the exploration drilling campaign and sulphide metallurgical test work, the company has received board approval to initiate an update to the July, 2020, definitive feasibility study (DFS) with the goal of increasing the production profile and overall project economics beyond the robust results of the previous DFS.
Highlights of July, 2020, DFS:
- Average annual production of 100,000 ounces of gold per annum for the first five years of operation;
- Total gold production of 728,654 ounces over 9.4-year life of mine, based on current reserves;
- Average total operating cash costs of $704 (U.S.) per ounce for the life of mine;
- LOM all-in sustaining cost of $782 (U.S.) per ounce;
- Pretax net present value 5 per cent of $283.9-million (U.S.) with an internal rate of return of 45.5 per cent and a posttax NPV 5 per cent of $226-million (U.S.) with an IRR of 41.1 per cent at $1,530 (U.S.) per ounce gold;
- Kobada gold project capital expenditure of $125-million (U.S.) (plus a contingency of $11-million (U.S.)).