Extractive Industries

Altus reports 67% rise in reserves and $150m NPV for Diba gold project

Altus Strategies plc announced a 67% increase in mineral reserves and post-tax net present value (NPV) of US$150 million for its 100% owned Diba & Laflanka gold project in western Mali.

Potential: numerous prospects remain to be adequately drill tested at Diba & Lakanfla (Altus Strategies)

MINERAL RESOURCE ESTIMATE

The company reported the figures in its revised mineral resource estimate (MRE) and preliminary economic assessment (PEA).

Altus said it aimed to monetise the project and create a royalty.

The Diba small scale mining licence hosts a shallow dipping near-surface gold deposit.

The revised MRE includes:

– 7,800,000 tonnes at 1.24 g/t Au for 312,000 oz in the indicated category

– 12,700,000t at 0.87 g/t Au for 362,000 oz in the inferred category

– project hosts numerous targets for further drill testing and potential resource growth

– the location is in a world-famous gold belt that hosts several mines

PRELIMINARY ECONOMIC ASSESSMENT

The revised PEA describes the potential technical and economic viability of establishing a
conventional open-pit gold mine for Diba & Lakanfla.

Altus said that the open-pit heap leach gold mine would have low capital expenditure and strong cashflows.

Total capital expenditure is set at US$28 million with total operating cashflow of $186m.

After-tax net present value (NPV) of $150m with a payback period of 5.7 months.

All-in sustaining costs are set at US$686/oz and a low strip (waste to ore) ratio of 1.22:1.

The life of mine is 4.7 years with average annual gold production of 54,380 oz.

Gold recovery (oxide heap leach) is 95% with an average grade of mined resource of 0.99 g/t Au.

SIGNIFICANT

Chief executive Steven Poulton added that the 12 million tonnes of fresh sulphide material could add additional ounces to an enlarged mine.

“With numerous prospects remaining to be adequately drill tested, the Diba & Lakanfla project is strategically positioned to become a potentially significant gold deposit in western Mali.”

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