A US$712 million gold mining project is tipped to get under way in Côte d’Ivoire later this year.

This comes as an updated feasibility study on the Koné gold project, situated about 500 km north-west of Abidjan, boosted its value by almost 50%, reports Mining.com.

The study – which included ore from the Gbongogo Main satellite deposit for the first time – estimated probable mineral reserves at 4.01 million oz and forecast production of 3.57 million oz of gold over a 16-year mine life, according to BNN Breaking.

The latest study estimated the net present value of the mine at just shy of US$1.1 billion with an internal rate of return (IRR) of 31% at a base case gold price of US$1 800 an ounce, compared with a 2022 estimate of less than US$750 million at 35%.

An increase in the spot gold price to more than US$2 000/oz would boost the value of the mine, owned by Montage Mining of Canada, even further to almost US$1.5 billion at an IRR of 39%.

The company expects permit approval in the third quarter this year, with construction set to start soon afterwards.

23 January 2024
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