Turaco Gold Expands Afema Project with New Permit Acquisition
Turaco Gold has exercised an option to acquire 100% of a new exploration permit adjacent to its Afema Project in Côte d’Ivoire, increasing its landholding by 30% and setting the stage for fresh exploration activities.
- Acquisition of PR1074 permit expands Afema Project to over 1,600 km2
- Turaco to issue 2.25 million shares and grant 2% NSR for permit purchase
- Exploration to begin with stream sediment and soil sampling
- Afema Project hosts a 4.65 million ounce gold resource
- Recent Pre-Feasibility Study supports a 10-year, 200,000ozpa gold operation
Significant Expansion of Afema Project Tenure
Turaco Gold Limited (ASX:TCG) has moved decisively to enlarge its footprint in Côte d’Ivoire’s prolific Sefwi Greenstone Belt by exercising an option to acquire 100% of the PR1074 exploration permit. This addition increases the Afema Project area by 30%, bringing the total tenure to over 1,600 square kilometres. The newly acquired permit covers 366 square kilometres directly adjacent to Turaco’s existing 4.65 million ounce gold resource, reinforcing its dominant position in this highly prospective region.
Deal Terms and Strategic Implications
The acquisition follows Turaco’s earlier exclusivity agreement with Pioneer Minerals SARL, with initial consideration paid in shares. The current option, valid for 12 months, was secured for US$100,000 in Turaco shares. Should Turaco exercise the option within this period, it will issue 2.25 million shares and grant a 2% net smelter return (NSR) royalty to Pioneer Minerals. This structure clears the way for Turaco to commence exploration activities on PR1074 promptly.
Exploration Plans to Target Future Drill Prospects
Turaco plans to initiate exploration with permit-wide stream sediment sampling, followed by soil sampling programs. These early-stage activities aim to generate high-quality drill targets to extend the known mineralisation along the Sefwi Belt. The contiguous nature of PR1074 with existing permits is expected to enhance Turaco’s ability to delineate new prospects within this richly mineralised corridor.
Building on a Robust Resource and Development Platform
This tenure expansion comes on the back of Turaco’s recently updated Afema Project Mineral Resource Estimate (MRE) of 4.65 million ounces of gold, spread across multiple deposits including Woulo Woulo, Jonction, and Asupiri. The company also announced a maiden Probable Ore Reserve of 1.91 million ounces, underpinning a Pre-Feasibility Study (PFS) that forecasts a 10-year mine life producing approximately 200,000 ounces of gold annually. The PFS highlights compelling economics, with a post-tax NPV of US$2.1 billion at a US$3,500/oz gold price assumption.
Managing Director Highlights Enhanced Exploration Potential
Justin Tremain, Turaco’s Managing Director, emphasised that the permit acquisition strengthens the company’s control over extensions of the Sefwi Greenstone Belt, further enhancing exploration upside. He noted that reconnaissance exploration will be critical to delineating prospects for future drilling campaigns, which could drive further resource growth at Afema.
Bottom Line?
Turaco’s permit acquisition significantly boosts its landholding in a proven gold belt, setting the stage for exploration-led resource growth that could underpin long-term project value.
Questions in the middle?
- How will initial exploration results on PR1074 influence Turaco’s drilling priorities?
- What impact might the 2% NSR royalty have on project economics if PR1074 yields significant resources?
- Could further permit acquisitions consolidate Turaco’s position in the Sefwi Greenstone Belt?
