Toubani Resources Updates MRE including 1.5Moz Shallow Free Dig Oxide Resource

18 August 2023 10:59

Toubani Resources (ASX: TRE) has announced the results of its independent review and updated the Mineral Resource Estimate (MRE) for its Kobada Gold Project in southern Mali, effectively advancing the Project’s transformation into a low-risk, low-strip, bulk-tonnage, oxide-dominant open-pit development project scale.

Significant Opportunities of Growth

The Company has highlighted substantial avenues for mineral resource expansion through its designated drilling targets, including the conversion of 0.9 million ounces (Moz) of inferred resources, with 0.5Moz being oxide, and encompassing satellite deposits that were previously omitted from the current MRE assessment.

The revised MRE now incorporates a shallow free-dig oxide resource of 1.5Moz, a valuable input for the forthcoming Definitive Feasibility Study (DFS) announced earlier this year.

Toubani’s updated MRE for the Kobada Gold Project stands at 87 million tonnes, averaging 0.86g/t, for 2.4Moz of gold. The Company has been consistently sharing drilling outcomes throughout 2023, revealing that deposits continue to display openness at depth and along the strike.

Looking ahead, the Company envisions that its current progress is just the tip of the iceberg, as considerable exploration potential remains beyond the existing targets. Notably, there are approximately 40 kilometres of regional-scale shear zones, out of a total of over 50 kilometres, that have yet to undergo drill testing, with drilling programs set to commence this quarter.

The MRE Review

Among the key priorities outlined in the Company’s update was a concerted effort to enhance the delineation of mineralisation within the substantial oxide layer at Kobada, spanning around 70 to 100 metres below the surface. This endeavour aims to establish a reliable assessment of oxide mineralisation situated close to the surface, a pivotal contribution to the DFS.

Entech Pty Ltd has successfully conducted the review and revision of the MRE, and the Company expects that the 2.4Moz MRE will serve as a foundational pillar for the forthcoming DFS update, strategically enhancing the oxide project phase within the context of a cost-effective, bulk-tonnage, oxide-dominant project. Appointment of the engineering group to lead the DFS Update study are due this quarter.

With a strong emphasis on risk reduction and optimisation, the DFS update is set to prioritise the maximisation of returns and the minimisation of uncertainties during the oxide mining and processing phase. The Company holds a positive outlook regarding its projection to meet key DFS milestones, positioning the Kobada Project to become a significant open-pit gold development asset in West Africa.

Anticipating a lower overall risk profile, Toubani Resources expects the initial phase of the Kobada Project to present a compelling proposition with its attributes of low stripping ratios and a bulk-tonnage oxide mining and processing operation.


Figure 4: Comparison of Kobada Mineral Resource by level showing Indicated and Inferred Resources

Toubani Chief Executive Officer, Phil Russo, commented, “Today’s MRE update marks a significant step forward for the Company. We have now delivered the critical review and re-estimation of the 2021 MRE (given the new team now steering Kobada) mentioned in our decision to optimise the 2021 DFS last month.”

“The Company’s vision is to reposition Kobada as a reduced technical risk, low strip, bulk-tonnage, oxide-dominant open pit development project of scale. Today’s MRE update confirms we are well on our way in delivering on this goal. We now have a strong baseline of validated Indicated oxide and fresh material to underpin the DFS update targeting a higher throughput and lower cost development project.”

“We see significant opportunity for drilling to drive continued growth in the confidence and size of our Mineral Resource base.”

TRE’s Australian Stock Exchange-listed share price is currently trading at 15 cents (9.30am UTC+ 8 hours).

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