Aurum Resources has unveiled a robust Pre-Feasibility Study for its Boundiali Gold Project in Côte d'Ivoire, declaring a maiden Probable Ore Reserve of 1.21 million ounces and targeting first gold production in early 2028.
- Maiden Probable Ore Reserve of 42.1 Mt at 0.9 g/t Au for 1.21Moz
- Life of Mine plan includes 1.5Moz gold production over 11 years
- Pre-production capital estimated at US$342 million
- Post-tax NPV(5%) of US$1.5 billion at consensus gold price of US$4,076/oz
- Definitive Feasibility Study underway targeting late 2026 Final Investment Decision
PFS Delivers Maiden Reserve and Confirms Large-Scale Open Pit Development
Aurum Resources Limited (ASX:AUE) has taken a significant step forward at its Boundiali Gold Project in northern Côte d'Ivoire, announcing a Pre-Feasibility Study (PFS) that confirms the project as a technically sound and economically compelling large-scale open-pit gold operation. The study delivers a maiden Probable Ore Reserve of 42.1 million tonnes at 0.9 grams per tonne gold, equating to 1.21 million ounces, a 77% conversion of Indicated Mineral Resources.
The PFS outlines a Life of Mine (LOM) plan mining 66.3 million tonnes at 0.82 g/t for 1.76 million ounces of gold over 11 years, with an average strip ratio of 6.86 and gold recovery of 86.7%. Aurum targets first gold production in the first half of 2028, supported by a pre-production capital cost of US$342 million, including contingency.
Robust Financial Metrics Highlight Project Viability
Financial modelling at a consensus gold price of US$4,076 per ounce, roughly the spot price at announcement, reveals a post-tax net present value (NPV) at a 5% discount rate of approximately US$1.5 billion and an internal rate of return (IRR) of 119%. The project is forecast to generate US$2 billion in free cashflow over its life, with a payback period of less than one year from first production.
Even at the conservative Ore Reserve gold price of US$2,900 per ounce, the project maintains attractive economics, with a post-tax NPV(5%) of US$553 million, IRR of 44%, and an all-in sustaining cost (AISC) of US$1,951 per ounce. The PFS capital estimate includes process plant, tailings storage facility, grid power connection, mining village, and pre-production mining establishment.
Mine Plan and Metallurgy Support Early High-Grade Production
The LOM schedule prioritises mining from four open pits (BDT1, BDT2, BMT3, BST1), with a total mining inventory inclusive of Ore Reserves of 66.2 million tonnes. Early years focus on higher-grade oxide and transitional ores, producing an average of 185,000 ounces per annum over the first five years, including 201,000 ounces in year one.
Metallurgical testwork confirms the ore is predominantly free-milling, amenable to conventional crushing, grinding, gravity concentration, and carbon-in-leach (CIL) cyanidation. An exception is the BMT3 deposit, where fine gold grains encapsulated in sulphides limit CIL recovery to 71%. Aurum plans to explore flotation and roasting options during the Definitive Feasibility Study (DFS) to boost recovery to around 90% for this ore type.
Permitting and Infrastructure Progressing with Strong Stakeholder Support
Environmental approvals are in place, with Certificates of Environmental Compliance received for all three mining licence application areas in May 2026. Mining licence applications are lodged and under review, with Aurum confident of timely grant. The project benefits from excellent regional infrastructure including sealed road access, proximity to Korhogo Airport, and planned grid power connection via an 8 km 90 kV line.
Aurum's management team is leveraging its successful owner-builder model from the Abujar Gold Mine to directly manage construction and operations, aiming to control costs and schedule risk. Key appointments for construction and mining leadership are underway, and long-lead equipment procurement, such as SAG and ball mills with up to 50-week delivery times, has commenced ahead of FID.
Exploration Momentum and Funding Strategy Support Development
Since acquiring the project in late 2023, Aurum has drilled over 215,000 metres with 16 self-operated diamond rigs, rapidly growing the resource base from 1.58 million ounces to 3.22 million ounces in just 28 months. Indicated Resources have surged from 0.13 million ounces to 1.70 million ounces, underpinning the Ore Reserve and LOM plan. The ongoing 100,000-metre annual drilling program targets conversion of Inferred Resources, a key value driver.
With a strong cash position of A$61.5 million at March 2026 and no material debt, Aurum is well funded to complete the DFS and advance permitting and early works. The company plans to pursue a conventional project finance structure combining senior debt and equity to fund the estimated US$342 million pre-production capital. Strategic investors including Perseus Mining (9.9% stake) and Zhaojin Capital provide additional credibility.
Risks and Opportunities to Watch
While the PFS de-risks many aspects of the Boundiali development, key risks remain around the conversion of Inferred Resources, permitting timelines, and execution challenges typical of large-scale mining projects. Gold price volatility remains the dominant financial risk, though the project's robust margins and short payback provide some cushion.
Opportunities for Aurum include metallurgical improvements at BMT3, throughput upside during oxide ore processing, mining schedule optimisation to smooth strip ratios, and potential owner-operator mining cost reductions. Further resource growth through infill and step-out drilling could extend mine life and enhance project value.
Investors should monitor Aurum's progress on the DFS, ongoing drilling results, permitting milestones, and financing arrangements as the company advances toward a Final Investment Decision targeted for late 2026.
Bottom Line?
Aurum’s Boundiali PFS sets a robust foundation for development, but the path to first gold hinges on successful resource conversion, permitting, and financing execution.
Questions in the middle?
- How will Aurum’s ongoing drilling convert Inferred Resources to Indicated and extend mine life?
- What are the prospects and timelines for securing the Mining Exploitation Licences in Côte d'Ivoire?
- Can flotation and roasting unlock significant recovery gains for the BMT3 deposit without major capital increases?