Scandinavia-based and Ethiopia-focused gold exploration and boutique mining company Akobo Minerals reports that international mining consultancy firm SRK Consulting (Australasia) has started to update the resource estimate for its Segele project.

As previously stated, the plan is to mine the first gold at Segele before the end of the year.

To achieve that, three main elements must be in place – a high confidence mineral resource estimate, a turnkey industry standard processing plant and a professional mining operation.

Considerable progress has been made in all these areas over the last few weeks, Akobo says. 

In terms of the mineral resource update, Akobo explains that, after much delay from ALS Ireland, the latest drill hole database has now been sent to resource estimation experts at SRK in Perth, Australia.

Akobo expects parts of the previous inferred mineral resource will be upgraded to indicated resources. Indicated resources have a much higher confidence and such an upgrade would be a strong validation of the company’s revenue potential, Akobo says.

Additionally, it is expected that new inferred mineral resources will be added. The results will be released as soon as they are available.

Akobo says it is close to finalising an agreement with a processing plant contractor with a long record of successful delivery of gold processing plants.

Also, following a successful bidding process, Akobo is finalising its options for the mining operation, including final negotiation with experienced contract mining companies.

The company says it has several options on the table including operations by contractors and experienced miners who are currently engaged in similar operations to those planned at Segele and have excellent track records working with major and junior mining companies.

With these three activities close to completion, the company is confident it will be able to release a cash flow model of the Segele mine to illustrate the expected return on investment.