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Akobo prepares for first exports of gold from Segele project

Ethiopian flag

Photo by Reuters

10th December 2024

By: Marleny Arnoldi

Senior Deputy Editor Online

     

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Scandinavia-headquartered gold exploration and mining company Akobo Minerals says record high gold prices in the global market are improving the value of its Segele resource and revenue potential prior to reaching full production.

Akobo produced first gold concentrate at the project, in Ethiopia, in August following commissioning of its processing plant.

The company was testing and optimising the plant’s capabilities using low-grade ore as part of a measured approach towards achieving full production from higher-grade ore.

Akobo produced its first gold bar from the Segele mine in October from 170 t of lower-grade material collected from development tunnels on the edge of the orebody.

Akobo achieved total gold production of 12.8 kg of gold in November, with initial sales to the National Bank of Ethiopia having totalled $2 400/oz.

Global investment banker Goldman Sachs has forecast the gold price could reach $3 000/oz by year-end.

“November’s production exceeded expectations, covering all operational expenses for the month,” the company states.

Akobo is now preparing for its first gold export shipment.

Additionally, the company has completed first raise blasting and started stoping activities on site, which paves the way for higher-grade ore mining and production ramp-up.

The company’s cash at the end of the quarter ended September 30 was SKr6.5-million.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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