Turaco Gold’s Afema PFS Confirms Strong Economics for +200,000ozpa Open Pit Gold Project

• Maiden JORC Probable Ore Reserve of 1.91Moz declared
• Average annual production of ~200,000oz over 10.3 years
• Total development capital cost estimated at US$410 million plus US$32 million pre-production mining
• Life-of-mine cash operating cost at US$1,268/oz and AISC at US$1,508/oz
• Post-tax NPV(5%) of US$2.1 billion at US$3,500/oz gold price with 13-month payback

Afema Project Advances with Maiden Ore Reserve and Strong Production Profile

Turaco Gold Limited (ASX:TCG) has delivered a pre-feasibility study (PFS) for its Afema Gold Project in southeast Côte d’Ivoire that sets the stage for a near-term open pit operation producing more than 200,000 ounces of gold annually. The study, completed to a high technical standard, underpins a maiden JORC Probable Ore Reserve of 1.91 million ounces and a life-of-mine (LoM) production of approximately 2.0 million ounces over 10.3 years.

The project is designed around a nominal 6 million tonnes per annum processing rate, split between a 4Mtpa carbon-in-leach (CIL) circuit treating oxide and free-milling ores and a 2Mtpa flotation/ultrafine grind/CIL circuit for sulphide ores. Production is front-loaded, with 230,000 ounces expected in the first year (accounting for a six-month ramp-up), and an average of around 215,000 ounces annually over the initial seven years.

Robust Economics Supported by Conservative Assumptions

Capital expenditure is estimated at US$410 million for development, including mining establishment and infrastructure, plus an additional US$32 million for pre-production mining to establish run-of-mine stockpiles. Life-of-mine sustaining capital is forecast at US$101 million, with closure costs estimated at US$31 million.

Operating costs are competitive, with a LoM cash operating cost of US$1,268 per ounce and an all-in sustaining cost (AISC) of US$1,508 per ounce, calculated on a conservative gold price of US$2,000 per ounce. At higher gold prices of US$3,000 to US$4,000 per ounce, the project’s post-tax net present value (NPV) at a 5% discount rate ranges from US$1.5 billion to US$2.7 billion, with internal rates of return (IRR) between 60% and 97% and payback periods of 17 to 10 months.

Updated Mineral Resources and Mine Design Drive Confidence

The study incorporates an updated Mineral Resource Estimate (MRE) of 4.65 million ounces, including recent infill drilling at the Asupiri deposit that increased Indicated Resources by 27%. The maiden Ore Reserve estimate covers 55.1 million tonnes at 1.1g/t gold for 1.91 million ounces, focusing on the Woulo Woulo, Jonction, Anuiri, and Asupiri deposits within the granted mining permit. The schedule also includes the Begnopan deposit and a heap leach stockpile, bringing the total processing to 65.1 million tonnes at 1.1g/t gold for 2.32 million ounces.

Mining will be conventional open pit, with a life-of-mine strip ratio of 4.8:1. The project benefits from a well-considered mine design prioritising higher-grade zones early in the schedule and minimizing village relocations, with only small family compound relocations anticipated.

Processing and Infrastructure Tailored for Ore Types

The processing plant will feature two parallel circuits: a 4Mtpa CIL circuit for free-milling ores and a 2Mtpa flotation/ultrafine grind/CIL circuit for sulphide ores. Extensive metallurgical testwork supports recoveries averaging 87-88%, with oxide ores achieving up to 93.5% recovery and sulphide ores around 90-92%. The plant design includes primary crushing, milling, flotation, oxidative leaching, and gold recovery via electrowinning and smelting.

Infrastructure plans include a 220-person accommodation camp, a 32km 90kV power transmission line connecting to the national grid, upgraded access roads, and a lined tailings storage facility designed for 60 million tonnes of tailings. Water supply will be managed through surface runoff capture and groundwater sourced from pit dewatering bores.

Environmental and Social Impact Assessment Progressing

Environmental and social impact assessments (ESIA) are well advanced, targeting draft completion in Q3 2026 and final submission by year-end, aligned with IFC Performance Standards and Equator Principles. The project design aims to minimize community disruption, with a resettlement and livelihood restoration plan in development. Turaco anticipates securing environmental and social permits by mid-2027, paving the way for construction.

Forward Program Targets Definitive Feasibility and First Gold in 2029

Turaco plans to upgrade the study to a definitive feasibility level within the next 9-12 months, including additional infill drilling at Begnopan, further metallurgical and geotechnical work, mine design optimisation, and finalising infrastructure and permitting. The company is fully funded with A$60 million cash and ongoing exploration drilling with multiple rigs active.

Managing Director Justin Tremain highlighted the rapid progress since acquiring Afema just over two years ago, noting the project's scale and potential for expansion given ongoing resource growth. Turaco targets first gold production by 2029, with early works to commence following definitive study completion.

Bottom Line?

Afema’s PFS lays a solid foundation for development, but execution risks around funding, permitting, and resource conversion remain critical to watch.

Questions in the middle?

• How will Turaco balance debt and equity to finance the US$442 million capital requirement without excessive dilution?
• What impact will the 13% Inferred Resources in the production schedule have on project delivery and economics if not upgraded?
• Can ongoing exploration and resource growth extend Afema’s mine life or scale beyond the current 10.3 years?