- Toubani Resources (TRE) selects Lycopodium to lead a DFS update for its Kobada gold project in southern Mali
- Lycopodium has extensive experience working in Mali
- The company recently updated the MRE for its project
- Drillers hit shear zones in July
- TRE shares last traded at 14 cents
Toubani Resources (TRE) has chosen renowned engineering firm Lycopodium to lead the definitive feasibility study (DFS) update for the company’s flagship gold project in southern Mali.
The company’s Kobada project boasts an existing 2.4 million-ounce gold resource, which Toubani anticipates can be mined through open-pit methods, a more cost-effective approach compared to underground mining. Shear zones were encountered by drillers in July.
Lycopodium will be tasked with updating a processing flowsheet and plant design as well as having another look at overall cost projections.
Toubani aims to optimise the processing rate to boost annual gold production, and both companies will jointly explore metallurgical considerations.
Lycopodium has a track record of operating in the West African area.
“Lycopodium [has] an enviable track record in both studies and project execution in Mali and West Africa … the DFS update will utilise the recent mineral resource update,” TRE CEO Phil Russo said.
“With some 1.5Moz in shallow [position] we are able to plan an oxide focussed project phase over an extended life.”
The DFS update is due in Q1 of CY24.
The previous version of the DFS, completed in 2021, indicated a throughput rate of 3 million tonnes per year.
The company aims to increase this metric to reduce risk and enhance the potential return on investment by considering a larger processing plant.
TRE shares last traded at 14 cents.