• Drilling returns more thick, oxide gold intersections including 57m at 2.48g/t at the Kobada project
  • Toubani expects to receive final assays imminently, allowing for update to resource estimate
  • Updated resource will underpin ore reserve studies that will form part of updated DFS


Special Report: Assays from Toubani Resources’ recently completed resource definition drill program has returned more significant gold hits such as 57m at 2.48g/t gold that further de-risk the Kobada project towards “shovel-ready” status.

Within the gold-rich heart of southern Mali sits Kobada, 2.4Moz gold deposit in predominantly free-digging oxide, open pittable material over a strike length of 4.5km.

Oxide resources are valued by gold miners as they cheaper to process and typically contribute to ounces earlier in the life of mine when a producer is paying off their construction costs.

While studies completed in 2021 had outlined robust economics from a processing plant with a 3Mtpa throughput rate that will enable a higher‐grade feed over the initial 10 years of the project, Toubani Resources (ASX:TRE) was of the view that an increased operating profile would benefit Kobada by reducing risk, lowering operating cost and introducing the potential for staged, ramp-up scenarios.

To that end, the company is progressing an updated definitive feasibility study that will optimise Kobada’s processing flowsheet and plant design with the goal to boost the project’s gold output.

Drilling carried out to update resources and back ore reserve estimations, which will in turn underpin the DFS, returned spectacular results including a 19m at 20.6g/t gold intersection that served to de-risk and unlock the value contained within the project.

It also comes as Mali moves closer towards enacting its new 2023 mining code that will hand the country and local businesses an option to participate up to 35% of any new mining permits though TRE believes that this will also restore confidence in the country’s mining sector, particularly in light of Leo Lithium (ASX:LLL) clearing its dispute by selling Goulamina to its partner.


Results from resource definition drilling at Kobada’s Southern Area. Pic: Toubani Resources


More oxide intersections

TRE’s recently completed 120 hole resource definition drill program has now delivered further wide, often high-grade oxide gold intersections such as:

57m at 2.48g/t gold from a down-hole depth of 85m including 1 m at 25.7g/t gold (KBRC24_064);

24m at 5.75g/t gold from 131m including 2m at 57.4g/t gold (KBRC24_055); and

51m at 2.72g/t gold from 123m and 16m at 1.45g/t gold from 176m (KBRC24_056).

It has now observed such broad, high-grade oxide intersections across the northern, central and southern areas of the Kobada deposit, which successfully demonstrates the existence of shallow high-grade mineralisation in these areas.

Final results are expected imminently, following which the company will prepare an update resource estimate in the current quarter that will in turn underpin ore reserve studies as part of the DFS update.

“We are delighted to see sustained momentum in our drilling results, particularly further broad, high-grade intersections across the northern, central and southern areas of the deposit,” chief executive officer Phil Russo said.

“Our attention is now firmly on the upcoming resource update and DFS milestones as the drilling program concludes. Our strategy to advance and de-risk Kobada towards shovel-ready status is moving forward with increasing confidence.

“Coupled with the positive outlook for gold and the favourable landscape for advanced gold development assets in West Africa, this is indeed an exciting time for Toubani.”


This article was developed in collaboration with Toubani Resources, a Stockhead advertiser at the time of publishing.  

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.