Cora Gold Ltd has completed the definitive feasibility study (DFS) alongside its inaugural reserves and optimised project economics for its flagship Sanankoro gold project in southern Mali.
RESERVES
The inaugural probable reserves are 422koz @ 1.3 g/t Au with 6.8 years reserve mine life and average annual production of 56,000 oz.
A total of 121koz of pit optimised inferred resources offer potential for an additional 2.5 years of mine life and $76m additional free cash flow.
The company added that further infill drilling should, in time, convert these resources to reserves.
There was also “significant potential upside” from the exploration target, estimated to contain between 26.0 Mt and 35.2 Mt with a grade range of 0.58 – 1.21 g/t Au for a potential 1,370koz Au.
FINANCES
The company said that the optimised project economics included 52.3% internal rate of return (IRR) and a payback period of 1.2 years.
The first full year of free cash flow will result in $71.8m and $234m over the life of the mine.
All-in sustaining costs will be $997/oz with pre-production capital of $90m (including mining pre-production and contingencies).
Lionhead Capital Advisors Proprietary Ltd has confirmed continued support for Sanankoro and is in discussions on a term sheet for up to $30m.
Cora chief executive Bert Monro added that Cora was also in discussions with a number of potential lenders to support the Lionhead term sheet to fully fund the project.
OPTIMISATIONS
Optimisations to the DFS focused on capital expenditure savings which improved the project’s economics.
These include an option to incorporate solar hybrid power into the plant design, saving operating costs and reducing carbon emissions.
Cora has also incorporated pricing a second-hand smaller mill offering capital and operating cost savings.
The company added that optimisations could include taking greater advantage of the oxide nature of the ore at the front end of the process flow sheet that could lead to opex savings.