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Segele scoping study delivers 'very low' AISC of $243/oz of gold - Akobo Minerals

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(Kitco News) - Akobo Minerals announced today that the company has completed a scoping study for its Segele gold project in Ethiopia, with very favorable project economics and low production cost anticipated.

According to the company's statement, the results confirm that the mineralization at Segele can be mined and processed with an estimated all-in sustaining cost ("AISC") of 243 USD per ounce, compared to AISC of 1,048 USD per ounce as mining industry average.

The company said that the total life of mine operational expenditure, excluding royalties, is estimated at 137 USD per ounce. Total capital expenditure for setting up the mine plant to start production is estimated at 8 million USD.

Akobo added that estimated limited capital expenditure and very low production cost will lead to Segele becoming an "exceptionally" high margin operation.

Current mine plant can double capacity over time as more resources are discovered or extend the life of mine, the company noted. Expected mining operations to commence by the end of 2022.

Akobo Minerals said it has already begun a prefeasibility study, which will involve a resource upgrade, selection of mining method, detailed plant design and it allows for publication of cash flow models and ore reserves.

Akobo Minerals is a Norway-based gold exploration company, currently with an ongoing exploration in the Gambela region and Dima Woreda, southwest Ethiopia. At both the key targets, Segele and Joru, the company has so far released high-grade gold results, including the Segele deposit with an Inferred Mineral Resource of 78ktons at 20.9g/t.

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