Resolute Mining’s updated Definitive Feasibility Study for the Doropo Gold Project reveals a 55% increase in ore reserves, a longer mine life, and robust financial returns, positioning the project as a key growth driver.
- Life-of-mine average production raised to 170koz gold annually over 13 years
- Ore reserves increased by 55% to 2.5 million ounces of contained gold
- Post-tax NPV5% of US$1.46 billion and IRR of 49% at US$3,000/oz gold price
- Capital expenditure revised upward to US$516 million reflecting larger plant capacity
- Project on track for construction start in H1 2026 with first gold expected in H1 2028
Updated DFS Highlights Strong Economics
Resolute Mining Limited has unveiled an updated Definitive Feasibility Study (DFS) for its Doropo Gold Project in Côte d’Ivoire, confirming the project’s robust economic potential. The study, prepared by Lycopodium and building on a 2024 DFS by Centamin plc, outlines a substantially larger operation with a 55% increase in ore reserves and a mine life extended by three years to 13 years.
The life-of-mine (LOM) average gold production is now projected at approximately 170,000 ounces per annum, up slightly from 167,000 ounces, with total production reaching 2.2 million ounces. These improvements come alongside a post-tax net present value (NPV) at a 5% discount rate of US$1.46 billion and an internal rate of return (IRR) of 49%, assuming a conservative gold price of US$3,000 per ounce.
Capital Costs and Operational Enhancements
The updated DFS reflects a capital cost increase to US$516 million, up from US$373 million in the previous study. This rise is primarily due to the decision to increase the processing plant capacity from 4.0 million tonnes per annum to 4.9 million tonnes, as well as inflationary pressures and previously underestimated costs. Despite higher upfront costs, the project’s financial metrics remain compelling, with a payback period of under two years based on the base case gold price.
Operating costs have also been revised, with an all-in sustaining cost (AISC) averaging US$1,406 per ounce over the mine life, reflecting higher fuel and power prices and the larger plant throughput. Notably, Resolute is exploring the integration of solar and battery power solutions to reduce operational costs and enhance sustainability.
Strategic Importance and Community Impact
CEO Chris Eger emphasized the strategic value of Doropo, highlighting its role in diversifying Resolute’s asset base and boosting group production to over 500,000 ounces annually by 2028. The project is expected to generate significant economic benefits for Côte d’Ivoire, including over US$420 million in government royalties and social fund contributions, alongside employment opportunities for local communities.
Resolute is actively engaging with Ivorian authorities, with the Mining License anticipated by early 2026. This milestone will enable the company to proceed with the final investment decision and financing arrangements, aiming for construction commencement in the first half of 2026 and first gold production by mid-2028.
Technical and Environmental Assurance
The DFS update incorporates comprehensive technical, environmental, and social assessments. Ore reserves are estimated at 59.1 million tonnes grading 1.31 grams per tonne, compliant with JORC 2012 standards. Metallurgical test work confirms the amenability of the ore to conventional gravity and carbon-in-leach processing, with recoveries exceeding 90%. Environmental and social impact assessments have been completed, with no material impediments identified.
Resolute’s approach includes robust mine planning, geotechnical studies, and infrastructure design, ensuring operational feasibility and environmental compliance. The company is also advancing plans for community resettlement and livelihood restoration in line with regulatory requirements.
Next Steps and Financing Outlook
Resolute intends to fund the Doropo project primarily through its existing cash reserves, supplemented by external financing options. The company has attracted strong interest from financiers, reflecting confidence in the project’s fundamentals. Key upcoming milestones include front-end engineering, awarding of engineering and construction contracts, and progressing social plans upon receipt of the exploitation permit.
With these developments, Doropo is poised to become a cornerstone asset for Resolute, underpinning its growth ambitions in West Africa.
Bottom Line?
Resolute’s Doropo project update cements its status as a high-return gold development, but execution risks around financing and permitting remain to watch.
Questions in the middle?
- How will Resolute balance increased capital costs with maintaining project returns?
- What is the timeline and certainty around securing the Mining License from Côte d’Ivoire?
- How might integration of solar power impact operational costs and sustainability credentials?