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Highlights
- Toubani (TRE) begins drilling to extend Kobada’s mine life
- Targeting deeper gold zones and additional oxide resources
- DFS confirms strong financials and low capital intensity
Toubani Resources (ASX:TRE) has commenced a diamond core drilling campaign at its flagship Kobada Gold Project in southern Mali. The 5,000-metre program is designed to significantly enhance the project’s mineral resource inventory and extend the operational life of the mine.
Expanding Deeper Gold Potential
The new drilling phase is focused on targeting mineralisation beyond the existing resource envelope, which currently stands at 2.2 million ounces of gold. This marks a strategic move by Toubani to unlock deeper gold zones that have not yet been explored extensively. In addition to expanding resources, the company is gathering critical geotechnical and hydrological data to inform the final mine design.
Priority drillholes have been allocated for detailed geotechnical analysis, including slope stability testing. These findings will play a vital role in refining the project’s pit design and ensuring long-term operational efficiency.
Dual Strategy: Deep Drilling and Near-Surface Oxide Focus
This core drilling initiative is part of Toubani’s dual-track growth strategy at Kobada. The company plans to follow up with a reverse circulation drilling program later in the year, aimed at testing near-surface oxide targets. The intention is to further build the oxide resource inventory, contributing to both short-term development and long-term value.
This dual approach—targeting both depth and surface potential—positions Toubani to optimise returns while preparing for a final investment decision expected in late 2025.
Strong DFS Metrics Underpin Growth Vision
In October 2024, Toubani completed a Definitive Feasibility Study (DFS) for the Kobada Gold Project. The study outlines robust production and economic metrics: an average output exceeding 160,000 ounces of gold annually over a nine-year mine life.
Notably, the DFS highlights Kobada as one of the sector’s lowest capital intensity projects, with upfront capital costs estimated at US$216 million (A$332.52 million), including US$18 million in contingencies. The project is projected to deliver a post-tax net present value (NPV) of US$635 million (A$966.23 million) and an internal rate of return (IRR) of 58%, assuming a gold price of US$2,200 per ounce.
Strategic Location in Africa’s Gold Heartland
Located in southern Mali, a stable and resource-rich region, Kobada benefits from being in Africa’s third-largest gold-producing nation. Toubani’s focus remains firmly on bringing West Africa’s next major gold mine into production, with current activities setting a strong foundation for long-term success.
Gold prices are currently trending positively, adding further momentum to Toubani’s progress and strategic decisions at Kobada.
