Aim-listed Cora Gold has reported that an updated definitive feasibility study (DFS) has confirmed a payback period of just 1.1 years, feeding into the strong economic potential of the company’s flagship Sanankoro gold project, in southern Mali.

Cora says the DFS delivers significant economic and environmental advantages to the company, with substantial savings in operating costs and carbon emissions achieved owing to the hybrid power solution on site saving the company 40-million litres of diesel a year in consumption over the life-of-mine (LoM).

The project also offers a favourable economic model, with $67-million a year in free cash flow set to be achieved from the production of 64 000 oz/y of gold over the first five years, confirming the strong start to mine life at the project.

Cora says the updated probable reserve of 531 000 oz at 1.13 g/t gold is based on a gold price of $2 200/oz – a 26% increase over the maiden probable reserve of 422 000 oz at 1.30 g/t gold based on a gold price of $1 650/oz.

DFS economics – post tax, based on a gold price of $2 750/oz – include a 65% internal rate of return, $479-million free cash flow over LoM and a net present value of $221-million.

Economics also include a $948/oz LoM cash cost and $1 478/oz LoM all-in sustaining costs, as well as 10.2 years reserve mine life, 47 000 oz/y average production LoM and $124-million pre-production capital cost – including mining pre-production and contingencies.

Cora notes that metallurgical testwork confirmed an average LoM gold recovery of 90.7% through a conventional 1.5-million-tonne-a-year carbon-in- leach processing plant.

As part of the updated DFS, the company notes that various optimisations have been incorporated taking greater advantage of the oxide nature of the ore at the front end of the process flow sheet.

Cora adds that the management plan, including pit optimised inferred resources, based on the same parameters as the reserves, offers the potential for an additional 173 000 oz of gold produced, adding five years to the mine life.

The company says further drilling should enable the conversion of these inferred resources to reserves.

It notes that Sanankoro has excellent exploration and resource growth potential, providing the opportunity to significantly add to the current resource base of 1.04-million ounces, as optimised pits bottomed out owing to lack of deeper drilling and mineralisation is open along strike and at depth.

Additionally, the company explains that there are undrilled artisanal workings, and 19 new exploration targets identified, the majority of which are within 3 km to 4 km from the process plant and the oxide nature of the ore offers further upside.

“Sanankoro is an exceptional project well positioned to become a significant new high margin openpit oxide gold mine. We are delighted to have meaningfully increased the project’s reserves, with an initial ten-year mine life, from minimal drilling,” says CEO Bert Monro.

He adds that the updated reserves and enhanced DFS significantly improve upon the previous 2022 study, highlighting both the progress the company has made in advancing the asset, as well as the opportune time to be developing a gold project of Sanankoro’s calibre.