Resolute Mining’s scoping study for its ABC Project in Côte d’Ivoire outlines a robust 12-year open pit gold operation with strong economic metrics, including a post-tax NPV of US$1.2 billion and a 39% IRR at US$3,500/oz gold.
- 141 koz average annual gold production over 12 years
- Post-tax NPV5% of US$1.2bn and IRR of 39% at US$3,500/oz
- Capital cost estimated at US$648 million with 1.4-year payback
- Resource growth potential with updated MRE due in H2 2026
- Definitive Feasibility Study targeted for completion by end 2027
Scoping Study Highlights Strong Economics for ABC Gold Project
Resolute Mining (ASX/LSE: RSG) has unveiled a scoping study for its ABC Project in Côte d’Ivoire, confirming the project’s potential to become a significant contributor to its gold portfolio. The study outlines a 12-year open pit operation with average annual production of approximately 141,000 ounces of gold at a competitive all-in sustaining cost (AISC) of US$1,614 per ounce. Financially, the project boasts a post-tax net present value (NPV5%) of US$1.2 billion and an internal rate of return (IRR) of 39% based on a conservative gold price of US$3,500 per ounce, with a swift payback period of 1.4 years.
The project’s scale is underpinned by a 2.16 million ounce inferred mineral resource estimate (MRE) from the Kona Central and Kona South deposits, translating into 82.8 million tonnes of mill feed at 0.76 g/t gold. The proposed processing plant will operate at 7 million tonnes per annum with an 84% gold recovery rate through conventional carbon-in-leach (CIL) technology. Resolute’s Managing Director Chris Eger emphasised the project’s robustness and growth prospects, highlighting ongoing drilling efforts aimed at resource expansion and metallurgical optimisation.
Exploration Advances and Resource Expansion Potential
Resolute is accelerating step-out drilling at Kona Central and Kona South, having completed over 25,000 metres to date, with results expected to feed into an updated MRE in the second half of 2026. Early drilling results show wide intervals of gold mineralisation extending beyond current resource boundaries, particularly at Kona South, which is higher grade than Kona Central. These findings suggest meaningful potential for resource growth, which could enhance project economics and scale.
The company’s strategy to build a diversified gold platform in Côte d’Ivoire aligns with its recent progress at the Doropo project, which is advancing towards construction following a final investment decision earlier this year. Resolute’s expanding footprint in West Africa, including the ABC Project, reflects a broader growth push supported by recent increases in mineral resources and reserves across the region, as detailed in its March 2026 resource update.
Capital and Operating Costs Reflect Early-Stage Optimism
The ABC Project’s capital expenditure is estimated at US$648 million, including a US$115 million contingency reflecting the preliminary nature of the study. Operating costs average US$1,614 per ounce over the life of mine, with an attractive US$1,565 per ounce during the first five years when production peaks at 163,000 ounces annually. The project’s low strip ratio of 1.82 and shallow open pits; final depths of 210 to 240 metres; support efficient mining operations.
Infrastructure plans include a 48-kilometre power transmission line connecting to Côte d’Ivoire’s grid, water supply from local sources, and a tailings storage facility designed to meet environmental standards. Sustaining capital is forecast at US$13.5 million annually from year two onwards, with closure costs estimated at US$76 million, incorporating contingencies and tailings management.
Path to Definitive Feasibility and Production Scale-Up
Resolute aims to complete a Definitive Feasibility Study (DFS) by the end of 2027, with ongoing efforts focused on infill drilling, metallurgical testwork to improve recovery rates, and environmental and permitting studies. The company is also evaluating options to optimise the processing plant size to potentially exceed 200,000 ounces per annum for at least a decade of mine life, enhancing the project’s commercial appeal.
This development trajectory mirrors Resolute’s recent milestones at the Doropo project, where construction is set to boost production significantly by 2028, complementing existing operations at Syama and Mako mines. The ABC Project’s progress adds another dimension to Resolute’s West African growth strategy, supported by its expanding mineral resource base and disciplined capital allocation.
Geological Setting and Mineralisation Characteristics
The ABC Project sits along the Archean-Birimian cratonic suture zone, with gold mineralisation structurally controlled and closely associated with arsenopyrite within psammitic host rocks. The complex geological environment offers exploration upside, with mineralisation remaining open along strike and at depth. The inferred resource is classified entirely as Inferred under the JORC Code, underscoring the need for further drilling to upgrade confidence levels and convert resources to reserves.
Resolute’s methodical approach to advancing the ABC Project, including the integration of technical studies by MineScope Services, Orelogy, Knight Piésold, and ECG Engineering, provides a solid foundation for future development phases. The company’s recent final investment decision for Doropo and the substantial resource growth across West Africa reinforce the strategic importance of the ABC Project within Resolute’s portfolio.
Bottom Line?
While the ABC Project’s scoping study presents compelling economics, its reliance on inferred resources and early-stage cost estimates means investors should watch closely for updated resource definitions and feasibility milestones.
Questions in the middle?
- How will Resolute finance the US$648 million capital requirement amid market uncertainties?
- Can ongoing drilling convert inferred resources into higher-confidence categories to underpin reserves?
- What metallurgical improvements might be realised to boost gold recoveries beyond the current 84%?