Canadian gold exploration company Roscan Gold Corporation reports that a preliminary economic assessment (PEA) for its Kandiolé gold project, in Mali, has estimated a robust $1.29-billion net present value and an 85% internal rate of return under prevailing gold prices, reaffirming the company's confidence in the project's potential.

“We have a high degree of confidence in this study, which is based on straightforward parameters, including a conventional contract mined openpit operation feeding a centralised carbon-in-leach plant, with almost all the ore processed sourced from indicated resources. Importantly, most of the planned mill feed comes from only three of the six deposits included in the resource estimate, highlighting meaningful upside through additional drilling," comments Roscan president and CEO Nana Sangmuah.

The company notes that Kandiolé has an attractive production profile and is expected to produce, on average, 92 786 oz/y of gold over the first four years of operation, at an all-in sustaining cost of $1 200/oz.

"While we see significant potential for further value enhancement, we believe the current scope limits initial capital requirements and represents an opportunity to finance and fast-track the project to production, taking advantage of the robust prevailing gold price and positive capital markets sentiment. This approach should allow us to optimally unlock value from the project and minimise shareholder dilution, while using internal cash flow to pursue opportunities to expand production and extend mine life. 

“This PEA marks the first of several key milestones expected this year as we transition toward becoming a developer. Our mining permit application is in the final stages of review and we anticipate approval in the near term.

"We have also initiated project financing discussions aimed at securing funding shortly after permits are granted. Environmental baseline work and engineering studies are already under way to support rapid advancement of the project,” Sangmuah points out.