What's Happening?
Aurum Resources has announced the commencement of a Definitive Feasibility Study (DFS) for its Boundiali gold project in northern Côte d’Ivoire, targeting first gold production in the first half of 2028. The company has reported a maiden probable ore
reserve of 42.1 million tonnes at 0.9 grams per tonne gold, amounting to 1.21 million ounces. This reserve is derived from four open pit deposits and is evaluated at a conservative gold price of US$2,900 per ounce. The project is expected to deliver a life of mine inventory of 66.2 million tonnes at 0.82 grams per tonne gold, producing 1.7 million ounces over 11 years with an 86.7% recovery rate. The first five years are projected to process 30.4 million tonnes at 1.1 grams per tonne gold, yielding 923,000 ounces at an average of 185,000 ounces per annum.
Why It's Important?
The Boundiali project represents a significant development in the gold mining sector, with the potential to generate substantial economic benefits. The project is expected to deliver strong free cash flows, with a post-tax net present value of approximately US$1.5 billion and an internal rate of return of 119%. The financial outlook is robust, with projected free cash flow of US$2 billion against pre-production capital costs of US$342 million. This development could enhance Aurum Resources' position in the global gold market and contribute to economic growth in Côte d’Ivoire. The involvement of major investors like Perseus Mining and Zhaojin underscores the project's potential impact on the industry.
What's Next?
Aurum Resources plans to complete the DFS by late 2026, followed by a Final Investment Decision. The company aims to commence gold production by 2028. Ongoing infill drilling is expected to convert inferred resources, potentially increasing the project's output. The company has already completed a comprehensive environmental and social impact assessment, receiving Certificates of Environmental Compliance from the Côte d’Ivoire Minister of Environment and Ecological Transition. With a cash balance of $61.5 million and no material debt, Aurum Resources is well-positioned to advance the project.
