Permitting Progress and Capital Raise De-risk Bankan Project but Timing Uncertain
Predictive Discovery Limited has reported robust drilling results at its Bankan Gold Project in Guinea, alongside key environmental approvals and a strategic A$69 million capital raise, positioning the company for accelerated development.
- Strong drilling results at Fouwagbe and Sounsoun support maiden Mineral Resource estimates
- Environmental & Social Impact Assessment approved and Environmental Compliance Certificate issued
- Exploitation Permit application progressing with Guinea’s Ministry of Mines
- A$69.2 million raised via strategic placement from Lundin family and Zijin Mining Group
- Definitive Feasibility Study on track for completion in second half of 2025
Robust Drilling Advances Resource Definition
During the March 2025 quarter, Predictive Discovery Limited (ASX:PDI) delivered encouraging drilling results at its Tier-1 Bankan Gold Project in Guinea, West Africa. Approximately 7,000 metres of drilling at the Argo permit area, specifically targeting the Fouwagbe and Sounsoun prospects, yielded high-grade intercepts that underpin the maiden Mineral Resource estimates announced shortly after quarter-end. Highlights include a standout 5 metres at 15.98 grams per tonne (g/t) gold from 55 metres at Fouwagbe, and multiple intercepts exceeding 10 g/t, confirming the presence of parallel shoot-like mineralised zones.
Exploration drilling at Sounsoun’s south-west target area, located over 800 metres from the main shear zone, returned significant intercepts such as 23 metres at 3.07 g/t from 77 metres, including high-grade intervals up to 47.08 g/t. These results not only expand the known mineralisation footprint but also identify new targets for follow-up drilling, which is planned for the coming quarter.
Permitting Milestones De-risk Project Development
A major regulatory milestone was achieved with the approval of the Environmental & Social Impact Assessment (ESIA) and issuance of the Environmental Compliance Certificate (ECC) by Guinea’s Ministry of Environment and Sustainable Development. This approval follows over two years of comprehensive environmental and social studies, aligning with international standards such as the IFC and Equator Principles.
Building on this, Predictive Discovery submitted its Exploitation Permit application to Guinea’s Ministry of Mines and Geology at the end of January 2025. The application process is progressing as expected, with the company engaging actively through workshops, site visits, and responses to information requests. Importantly, PDI has committed to relinquishing permit areas within the buffer zone of the Upper Niger National Park, ensuring no mining activity occurs in this protected region, and plans to initiate a reforestation program in consultation with environmental authorities.
Definitive Feasibility Study on Track
The Definitive Feasibility Study (DFS) is advancing according to schedule, with all major site investigations and test work substantially complete. Mine design and scheduling are well progressed, and process engineering has been finalised. The company is now focusing on refining operating and capital cost estimates, with DFS completion targeted for the second half of 2025. This study will be critical in underpinning the development decision and securing project financing.
Strong Financial Position Following Strategic Placement
In a significant boost to its balance sheet, Predictive Discovery raised A$69.2 million through a strategic placement to the Lundin family and Zijin Mining Group. The placement was executed at a price slightly above recent trading levels, reflecting investor confidence in the project’s prospects. Post-placement, the company holds A$77.6 million in cash with no debt, fully funding it through to a development decision and enabling acceleration of early development activities such as front-end engineering and procurement of long-lead items.
Quarterly cash outflows were elevated due to one-off creditor reductions, but ongoing exploration and feasibility expenditures remain well supported by the strong cash position.
Community and Environmental Commitments
Beyond exploration and development, Predictive Discovery continues to invest in local community projects, including support for the Bankan Primary School with meal programs, teacher assistance, and classroom construction. Environmental monitoring and biodiversity surveys are ongoing, with plans to award contracts for detailed management plans aligned with ESIA commitments. Engagement with local authorities and communities remains a priority, reinforcing the company’s commitment to sustainable development in the region.
Looking Ahead
In the June quarter, Predictive Discovery plans to intensify exploration drilling at Sounsoun’s south-west target and across the broader Argo and Bokoro permits to expand its resource pipeline. Concurrently, the company will advance permitting processes, environmental and social management plans, and complete the DFS technical workstreams. These activities will be pivotal in shaping the next phase of the Bankan Project’s development trajectory.
Bottom Line?
With strong drilling, key permits secured, and robust funding, Predictive Discovery is poised to accelerate Bankan’s development—next steps will test regulatory timelines and DFS outcomes.
Questions in the middle?
- When will the Exploitation Permit receive final approval, and what conditions might be attached?
- How will the upcoming DFS refine project economics and influence the development decision?
- What are the potential impacts of relinquishing permit areas within the National Park buffer zone on resource upside?