• African Gold (TSXV:AGG) has released the definitive feasibility study for its Kobada gold project in Mali
  • The study shows an updated output of 100,000 gold ounces a year in the first five year, along with an expanded resource of 728,654 total gold ounces 
  • Once production begins, the company estimates the project will pay itself off within 3.82 years
  • Africa Gold estimates the site’s net cash flow after tax and capital expenditure to be approximately C$443.08 million over the lifetime of the mine
  • African Gold (AGG) is up 8.06 per cent and is trading at 34 cents a share

African Gold (TSXV:AGG) has released its definitive feasibility study for its Kobada gold project Mali.

The project has a estimated output of 100,000 gold ounces per year in the first five years and a lifetime production estimate of 728,654 ounces. 

The average operating cash costs will sit at approximately C$954, while the all-in sustaining costs for the mine are approximately $1,056 per ounce.

The company expects the project expenditure will be recouped within 3.82 years from the start of production at Kobada. African Gold’s expected net cash flow after tax and capital expenditure is approximately C$443.08 million.

The release of the definitive feasibility study follows the company’s Executive Chairman Stan Bharti’s upcoming departure from his role. 

Incoming CEO of African Gold, Danny Callow said he was very excited to deliver the feasibility study, which shows marked improvement on the original study, released in 2016.

“We are pleased to announce significantly improved project economics on the back of a large jump in menial reserves, based on solid foundation of additional drilling, an updated resource model and comprehensive test work program.

“We have worked tirelessly, despite the impact of COVID-19 to deliver this study on time and 20 per cent below budget.

“Based on the limited exploration drilling, we believe there is significant potential to improve the resources and reserves further with limited additional exploration,” he said. 

Further to these developments, the company is also in the process of changing its name to Avion2 Gold Inc. 

African Gold (AGG) is up 8.06 per cent and is trading at 34 cents a share at 11:06am EDT.

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