Toubani unlocks high grade secrets of 2.4Moz Kobada gold project in spectacular drill hit

Toubani Resources hits 19m at 20.6g/t in spectacular Kobada drilling
The 2.4Moz and growing gold deposit in southern Mali is one of the largest undeveloped gold resources in Africa
A new resource update is due in the second quarter, with a DFS on the cards

Special Report: Toubani Resources already hosts one of the most promising undeveloped gold deposits in Africa, and ‘spectacular’ new drill intercepts from its Kobada gold project will do plenty to enhance the scale and confidence in its emerging 2.4Moz resource.

Located in the gold-rich heart of southern Mali, the latest assays come from the oxide zone of Kobada. That’s an important thing for Toubani Resources (ASX:TRE), given oxide resources are cheaper to process and contribute to ounces earlier in the life of mine when a producer is paying off their construction costs.

A headline hit of 19m at 20.6g/t from 105m, including a 2m intercept at a stonking 178g/t gold, highlights the latest set of numbers to roll out of the labs for Toubani.

Also in the record books are intersections including:

48m at 2.74g/t gold from 85m
- Including 2m at 12g/t and 3m at 7.38g/t
20m at 2.05g/t from 96m
- Including 1m at 17.9g/t; and,
3m at 9.12g/t from 14m (1m at 26.1g/t included) and 6m at 5.66g/t from 50m in the same hole, with a top 1m intercept of 16.4g/t.

It’s not the first time Kobada has returned such solid results in resource definition drilling. A previously reported strike of 71m at 1.86g/t from 79m including 15m at 4.04g/t gold demonstrates just how strong the growth potential is at the project.

An updated resource estimate is due in the second quarter, backing ore reserve studies for a DFS update.

The Kobada Main deposit contains a whopping 4.5km of strike. Pic: TRE

Higher grades a possibility

That thick hit at over 20g/t opens the potential to define higher grade zones in the next resource update, a fillip when it comes to boosting the earnings potential of the project.

“Our drilling program has been designed for a specific purpose, to derisk, convert and unlock the compelling value in the Kobada deposit, and it is pleasing to see numerous intersections during this program of significant widths and grade confirming this goal,” Toubani CEO Phil Russo said.

“Given the headline results which we have received, we will investigate the potential to define higher grade zones during our resource update work to complement the bulk mining approach of the broader deposit.

“If successful, this will further highlight the range of optionality and potential we see at Kobada over and above the optimised project we are excited to define in our upcoming DFS.”

Infill drilling has struck super grades that suggest Kobada hosts high grade zones within its 2.4Moz resource. Pic: TRE

The drill program has been ongoing since February, with the results today representing 11 holes drilled in the central area of the Kobada deposit. Assays from 43 holes have been returned to date.

The intersection in KBRC42_044 would still grade almost 12g/t even if a 100g/t top cut was applied, though the bonanza grade samples were confirmed via the high precision screen fire assay method.

So far 114 holes have been drilled for 10,947m, with plenty of results still to be completed and released to the market.

Held by $17m capped Toubani, Kobada is one of a handful of undeveloped gold deposits in Africa upwards of 2Moz.

For reference, OreCorp (ASX:ORR)’s Nyanzaga project in Tanzania, which contains 2.6Moz but has gone through the DFS process. It’s going to be taken out by ASX mid-tier marvel Perseus Mining (ASX:PRU), one of Russo’s former employers, in a cash deal worth $270m.

Meanwhile, gold itself is sitting near record highs at US$2384/oz ($3700/oz).

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.