African Gold Group (AGG.V) has announced it is mobilizing a team of engineers to complete the metallurgical testwork at its Kobada project in southern Mali. This testwork will be used in the feasibility study which is expected in Q1 2014 and will mainly focus on a 1,500 tpd plant which will greatly reduce the capex of the Kobada project to a low double-digit amount. We think a plant of this size will only require a capex of just $40M as this will be a very simple gravity recovery operation.
Kobada has a current resource estimate of almost 2.9 million ounces of gold and is one of the most exciting projects in West Africa. Now the dust of the coup d’état is settling, we hope African Gold Group can tick a lot of boxes within the next 12 months.
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Disclosure: The author holds a long position in African Gold Group. Please see our disclaimer for current positions.
