Toubani Advances Kobada Gold Project with Strong DFS and Mali Government Talks

Definitive Feasibility Study Validates Kobada's Potential

Toubani Resources (ASX: TRE) has delivered a compelling update in its December quarterly activities report, underscoring the Kobada Gold Project's status as a significant and economically attractive gold development in southern Mali. The 2024 Definitive Feasibility Study (DFS), completed in October, confirmed Kobada's large-scale, free-dig oxide resource with a post-tax net present value (NPV8%) of US$635 million and an internal rate of return (IRR) of 58% based on a gold price of US$2,200 per ounce.

The DFS outlines a robust production profile, with an average annual output of 162,000 ounces over an initial nine-year mine life, supported by substantial Ore Reserves of 1.56 million ounces. Notably, the project boasts competitive operating costs, with all-in sustaining costs (AISC) estimated at US$1,004 per ounce and C1 cash costs at US$825 per ounce, positioning Kobada among the lower-cost producers in the sector.

Strategic Government Engagement and Investment Framework

During the quarter, Toubani intensified its engagement with the Government of Mali, holding high-level meetings to present DFS outcomes and discuss the project's economic benefits. These discussions are progressing towards finalising a Memorandum of Understanding (MoU) that will establish a formal investment framework, securing Kobada's long-term development pathway.

This constructive dialogue aligns with broader positive developments in Mali's mining sector, where peer companies such as B2 Gold, Allied Gold, and Kodal Minerals have recently formalised investment agreements. Toubani's approach reflects a collaborative stance with the Malian government, aiming to foster mutually beneficial outcomes and leverage Mali's mature mining industry.

Advancing Project Readiness and Financing

Following the DFS, Toubani has embarked on its "Enhance - Grow - Derisk" strategy for 2025, focusing on advancing Kobada towards shovel-ready status. Key activities initiated include updating the Environmental and Social Impact Assessment (ESIA), progressing permitting processes, and designing geotechnical and deep drilling programs to refine project parameters and potentially reduce costs further.

To support these efforts, Toubani appointed Endeavour Financial as its project financing advisor. Endeavour brings extensive experience in African mining project finance, including in Mali, and is assisting with debt sizing and financing strategy. The company remains well-capitalised with A$8.5 million in cash as of 31 December 2024, bolstered by the recent completion of the second tranche of a A$10 million capital raising.

Community Engagement and Social Responsibility

Toubani has also strengthened its local presence by opening a representative office in Bamako to support government relations and permitting. The company demonstrated social responsibility by contributing to flood recovery efforts in the Koulikoro region and maintaining active communication with regional communities about project progress.

Outlook

With a strong DFS underpinning Kobada's economic viability, ongoing government negotiations, and a clear strategy to advance project readiness, Toubani Resources is well-positioned to unlock value from one of Mali's next major gold developments. The coming months will be critical as the company seeks to formalise its investment framework and commence detailed technical work that could further enhance project economics.