The gold project in Mali is expected to have an average annual production of 56,000 ounces with a 6.8-year reserve mine life
The Sanankoro gold project in southern Mali is expected to generate $228m of free cash flow over the life of mine. (Credit: DmytroTs from FreeImages)
Cora Gold has announced the results of a definitive feasibility study (DFS) for its Sanankoro gold project in southern Mali, which calls for a pre-production capital of $108.5m.
According to the DFS, the gold project is expected to generate $228m of free cash flow over the life of mine, based on a gold price of $1,750 per ounce.
The Sanankoro gold project is expected to see a payback period of 1.5 years.
Located in the Yanfolila gold belt, the project’s maiden probable reserves have been estimated at about 10,094 tonnes of ore and 1.3 g/t of gold containing 422,000 ounces of gold.
The feasibility study for the project estimates an after-tax internal rate of return of 37.4%.
The Sanankoro gold project is expected to have an average annual production of 56,000 ounces with a 6.8-year reserve mine life.
According to Cora Gold, a life of mine (LOM) gold recovery of 90.1% has been confirmed by means of having a conventional 1.5 million tons per annum (Mtpa) carbon in the leach processing facility.
The plant’s design by integrating the solar hybrid power option could help in delivering savings in operating costs as well as carbon emissions.
Cora Gold CEO Bert Monro said: “The Company is pleased to be releasing its Maiden Reserves and DFS on the Sanankoro Gold Project, focused on open pit oxide mining through a traditional gravity and CIL processing plant.
“The benefit of low strip ratio oxides is seen both in the mining and processing costs, and this has helped deliver a very robust project economically with low technical risk.
“We are confident that with additional drilling we can significantly add to Sanankoro’s reserve mine life through both existing resource conversion and drilling the recently updated exploration target.”