PFS confirms ‘compelling’ economics of Turaco’s Côte d’Ivoire project

The high-confidence nature of the study has facilitated the declaration of a maiden Joint Ore Reserves Committee (Jorc) probable ore reserve of 1.91-million ounces.

The PFS is based on a nominal six-million-tonne-a-year processing rate to provide an average life-of-mine (LoM) production of about 200 000 oz/y over a 10.3-year mine life from a conventional openpit operation.

The PFS shows that 230 000 oz of gold can be produced in the first year (allowing for a six-month processing ramp-up), with production to reach an average of about 215 000 oz/y in the initial seven years of production.

The study indicates a total LoM processed of 65.1-million tonnes at 1.1 g/t gold for 2.3-million ounces of contained gold.

The LoM recovered gold production is estimated at two-million ounces with an average gold recovery of 87% to 88%.

Total development capital cost would be $410-million including mining establishment costs and a contingency of $24-million.

Mining is scheduled to start six months prior to first production to build an adequate run-of-mine stockpile at a cost of $32-million.

There is a maiden Jorc probable ore reserve estimate of 55.1-million tonnes at 1.1 g/t gold for 1.9-million ounces of gold for the Woulo Woulo, Jonction, Anuiri and Asupiri deposits, all located within the existing granted mining permit, and excludes Herman and Begnopan.

A probable ore reserve and LoM schedule undertaken at a conservative gold price of $2000/oz delivers a LoM cash operating cost of $1268/oz and all-in sustaining cost (AISC) of $1 508/oz.

An Afema project mineral resource estimate (MRE) has been updated for recently completed infill drilling at Asupiri deposit with no material change, other than an increase in indicated resources, along with the inclusion of a small inferred MRE for a historical heap leach stockpile.

Infill drilling continues to upgrade inferred resources to indicated with negligible loss of tonnes or grade confirming the high confidence nature of the MRE models.

Several opportunities for improvement have been identified that will be considered moving forward including further LoM extensions and/or expansion given recent and ongoing MRE growth; potential capital cost reductions to be investigated; Jonction openpit design reduction given potential for underground development; Begnopan openpit design has been truncated to provide adequate buffer to the ‘Aboulie’ village and minimise relocations.

Future partial relocation could be considered to extend this pit given its higher-grade nature.

Turaco will immediately move to update the study to a ‘definitive’ level, which will also include starting detailed design and engineering to expedite the development of Afema.

The company is fully funded to complete this work, along with ongoing exploration drilling with three to five rigs operating, with A$60-million cash as at March 31.

“In just a little over two years since acquiring Afema, the Turaco team has not only delivered extraordinary Jorc resource growth to 4.65-million ounces but has now also delivered a detailed development study with a maiden Jorc probable ore reserve estimate of just under two-million ounces of gold based on a conservative gold price of $2 000/oz and an AISC of just over $1 500/oz, all within a granted mining permit. This progress is unmatched,” MD Justin Tremain acclaims.

“The study demonstrates the Afema project to be a plus-200000-oz/y gold development in Côte d’Ivoire with total gold production of over two-million ounces over more than ten years, with exceptional economics for the benefit of all stakeholders.

“There are very few gold development projects in West Africa of this scale. Given recent resource growth, it is very easy to see Afema increasing in scale and mine life,” he points out.

Based on conservative assumptions, at gold prices of $3 000/oz to $4 000/oz, the Afema project generates a post-tax net present value (5%) of $1.5-billion to $2.7-billion (A$2.1-billion to A$3.8-billion) and $0.8-billion to $1.2-billion in royalties and corporate taxation for the State of Côte d’Ivoire, while also generating $30-million to $40-million in local community contributions, in addition to creating considerable local employment and procurement, Tremain explains.

“The outputs from this study will now facilitate the completion of the environmental- and social-impact assessment, with Turaco targeting delivering a definitive study in the second quarter of the calendar year 2027 and to start early works to allow first gold production in 2029, he informs.