Turaco Gold’s Pre-Feasibility Study for the Afema Project in Côte d’Ivoire outlines a robust gold development producing around 200,000 ounces annually over a decade, backed by a maiden 1.91Moz Ore Reserve and a US$2.1 billion post-tax NPV.
- Maiden JORC Probable Ore Reserve of 1.91Moz gold
- Average annual production of ~200,000 ounces over 10+ years
- Post-tax NPV5% of US$2.1 billion and IRR of 79%
- Project footprint expanded by 30% to over 1,600km²
- Warren King appointed Project Development Director
Afema PFS Establishes Strong Project Economics and Production Profile
Turaco Gold Limited (ASX:TCG) has cleared a significant hurdle with the completion of its Pre-Feasibility Study (PFS) for the Afema Project in Côte d’Ivoire. The study confirms a long-life, low-cost open pit gold operation capable of producing approximately 200,000 ounces per annum over an initial mine life exceeding 10 years. The PFS underpins a maiden JORC Probable Ore Reserve of 55.1 million tonnes grading 1.1g/t gold for 1.91 million ounces, providing a solid foundation for the next stage of development.
Economically, the project looks compelling. At a gold price of US$3,500/oz, the post-tax Net Present Value at a 5% discount rate (NPV5%) is estimated at US$2.1 billion, with an Internal Rate of Return (IRR) of 79% and a payback period of just 13 months. Initial capital expenditure is pegged at US$410 million, while the average life-of-mine all-in sustaining cost (AISC) is projected at US$1,508 per ounce, indicating a healthy margin profile.
Resource Confidence Grows Amid Ongoing Drilling and Exploration
Resource drilling during the quarter bolstered confidence in the Afema Mineral Resource, which remains robust at 4.65 million ounces contained within 116.7 million tonnes at 1.3g/t gold. Notably, a significant portion of Inferred Resources at the Asupiri Deposit was upgraded to Indicated, enhancing the quality of the resource base feeding into the Definitive Feasibility Study (DFS) targeted for completion within the next 12 months.
Exploration continues to reveal promising upside beyond the current resource envelope. Drilling at the Adiopan, Bergerie, and Sikasso prospects returned broad zones of shallow gold mineralisation, with some intercepts like 28m at 2.17g/t Au and 20m at 2.28g/t Au indicating potential for resource expansion. These prospects remain open along strike and at depth, suggesting further growth opportunities.
Strategic Permit Acquisition Expands Project Footprint by 30%
Turaco strengthened its regional position by exercising an option to acquire 100% of exploration permit PR1074, increasing the Afema Project tenure by approximately 30% to over 1,600 square kilometres. This contiguous permit covers extensions of the highly prospective Sefwi Greenstone Belt, enhancing the company’s long-term exploration upside. Initial activities on PR1074 have commenced, including stream sediment sampling, with soil sampling planned to generate new drill targets.
Technical Leadership Bolstered for DFS and Project Advancement
In a move to sharpen its development capabilities, Turaco appointed Warren King as Project Development Director after the quarter’s end. King brings over 20 years of experience delivering feasibility studies and overseeing engineering, procurement, and construction phases of large-scale gold projects, including extensive African experience. His leadership is expected to be pivotal as Turaco advances the Afema Project through its DFS and towards construction readiness.
Financial Position Supports Continued Growth and Exploration
Turaco ended the quarter with a strong cash balance of approximately A$51 million and listed investments worth around A$3.7 million, positioning the company well to fund ongoing drilling, environmental studies, and development workstreams. Exploration and evaluation expenditure during the quarter totaled about A$8.1 million, reflecting the company’s aggressive approach to resource growth and project optimisation.
Community engagement remains a priority, with Turaco funding a 2km access road and two bridge structures between local villages, endorsed by the Côte d’Ivoire government. This infrastructure investment not only supports local socio-economic development but also facilitates improved access to the Afema Project area.
Bottom Line?
Turaco’s Afema Project is shaping up as a substantial gold development with strong economics and expanding resource potential, but the upcoming DFS and exploration results will be critical to confirm the path to production.
Questions in the middle?
- How will ongoing drilling at Bergerie and Sikasso impact the overall resource and reserve estimates?
- What cost optimisation opportunities might emerge during the DFS to improve project margins?
- How might fluctuating gold prices affect the project’s economic viability given the PFS assumptions?