TRE
Toubani Resources Limited
ASX
Drilling Confirms Kobada Scale Potential
Sentiment:
Exploration Update
10 April 2024 6:22 PM
Toubani Resources affirms the scale potential of its Kobada Gold Project with further shallow, high-grade oxide mineralization defined through recent drilling results.
Better than expected
The drilling results are better than expected due to the high-grade and near-surface oxide mineralization encountered.
Summary
- Toubani Resources has announced further results from its resource definition drill program at the Kobada Gold Project in southern Mali.
- The project hosts 2.4 Moz in Mineral Resources over a 4.5km strike length, predominantly oxide and open pittable.
- Recent drilling has intersected near-surface, high-grade oxide results, including 27m at 1.23g/t gold from 71m and 21m at 2.97g/t gold from 105m (KBRC24_035), and 7m at 11.0g/t gold from 17m (KBRC24_032).
- These results add to previously reported intersections, such as 71m at 1.86g/t gold from 79m (KBRC24_030) and 7m at 7.67g/t gold from 35m (KBRC24_015).
- Since February 2024, 91 drill holes have been completed for a total of 9,309 metres as part of the resource definition drilling program.
- Results from the first 30 holes were released on March 25, 2024, demonstrating shallow high-grade mineralisation, including 71m at 1.86g/t gold.
- Results from a further 13 drillholes in the central portion of the Kobada deposit have been received.
Sentiment
Score: 8
Explanation: The sentiment is positive due to the encouraging drilling results, the potential for resource expansion, and the company's confidence in advancing the Kobada Gold Project.
Highlights
- Toubani Resources has received further positive results from its resource definition drill program at the Kobada Gold Project.
- Drilling continues to intersect near-surface, high-grade oxide mineralization, such as 27m at 1.23g/t gold from 71m and 21m at 2.97g/t gold from 105m (KBRC24_035).
- One notable intersection includes 7m at 11.0g/t gold from 17m (KBRC24_032), including 1m at 55.9g/t gold.
- The Kobada project hosts 2.4 Moz in Mineral Resources.
- Since February 2024, 91 drill holes have been completed for a total of 9,309 metres.
- The company plans to include these results in a mineral resource update this quarter and deliver an updated feasibility study later this year.
Positives
- The Kobada Gold Project continues to show potential with high-grade oxide mineralization near the surface.
- Drilling results demonstrate significant width and tenor, which will be included in the upcoming mineral resource update.
- The company's confidence is growing in demonstrating Kobada as a large-scale, oxide gold project.
- The resource definition drilling program is progressing well, with 91 drill holes completed for a total of 9,309 metres since February 2024.
Risks
- The announcement contains forward-looking statements subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied.
- These risks include, but are not limited to, changes in project parameters, continued availability of capital and financing, failure to obtain necessary permits, the nature of mineral exploration and development, operational risks, competition, commodity prices, available infrastructure and supplies, and pandemics.
Future Outlook
The company plans to include the recent drilling results in a mineral resource update this quarter and deliver an updated feasibility study later this year.
Management Comments
- Toubani Chief Executive Officer, Phil Russo, commented: 'Kobada's potential is clearly evident in our drilling to date as momentum in the resource definition program continues to build.'
- Numerous results have now been received of significant width and tenor and these will be included in our mineral resource update this quarter.
- 'Our confidence is growing in demonstrating Kobada as one of the few remaining, if not the sole, advanced stage, large scale, oxide gold projects in the hands of a single-asset developer with the delivery of an updated feasibility study later this year.'
Industry Context
The announcement positions Kobada as a potentially significant, large-scale, oxide gold project in West Africa, a region known for its gold deposits. The company emphasizes its status as a single-asset developer, suggesting a focused approach to advancing the project.
Comparison to Industry Standards
- The reported drill results, such as 7m at 11.0g/t gold, are considered high-grade compared to average grades of open-pit gold mines globally.
- Companies like Allied Gold, which operates in similar geological settings in West Africa, often target similar oxide deposits for ease of extraction and processing.
- The 2.4 Moz mineral resource places Kobada in a competitive position among developing gold projects in the region, although further resource expansion is likely needed to attract major investment.
Stakeholder Impact
- Shareholders: Positive impact due to the potential for increased resource size and project value.
- Employees: Potential for job creation and career advancement as the project progresses.
- Customers: Not directly applicable as the company is in the development stage.
- Suppliers: Potential for increased business opportunities as the project advances.
- Creditors: Reduced risk due to the positive exploration results and project advancement.
Next Steps
- Incorporate the recent drilling results into a mineral resource update.
- Deliver an updated feasibility study later this year.
- Continue drilling to test for lateral and depth extensions of the mineralization.
Key Dates
- 18 August 2023: Date of ASX announcement containing information on the Mineral Resources for the Kobada Gold Project.
- February 2024: Commencement of the focused resource definition drilling program.
- 25 March 2024: Release of results from the first 30 drill holes.
- 11 April 2024: Date of the ASX announcement.
- 15 August 2024: Kobada-Est exploration permit (No. PR 18/957) valid until this date.
- 30 July 2045: Mining permit No. PE 15/22 for the Kobada project area valid until this date.
Keywords
TRE
Toubani Resources Limited
ASX
Sector: Materials
Filings with Classifications
Capital raise
30 April 2025 2:40 AM
Quarterly Activities Report
- Toubani announced it had received rm commitments to raise A$29 million in a two-tranche placement.
- The placement includes a ~A$15.2m transformational investment by A2MP Investments DMCC (A2MP) a wholly owned subsidiary of Eagle Eye Asset Holdings Pte Ltd. (EEA), (a single-family oce based in Singapore) and supported by the African Export-Import Bank (Afreximbank), one of Africas most prominent multilateral nancial institutions ('Strategic Investment').
- A2MP and Toubani have also executed a non-binding, non-exclusive debt commitment letter for A2MP to provide Toubani with a minimum US$160m debt facility as part of its ongoing debt nancing process.
Capital raise
30 April 2025 2:28 AM
Notice of Annual General Meeting
- The company is seeking approval for a 10% Placement Facility, which would allow them to issue up to 10% of their issued capital in Equity Securities.
- The funds raised from this facility could be used for continued exploration and development activities and/or for general working capital.
Capital raise
29 April 2025 7:33 PM
Capital Raising Announcement
- Toubani Resources is undertaking a two-tranche placement to raise A$29 million.
- The company directors intend to subscribe for an additional A$290,000 subject to shareholder approval.
- A2MP may participate in future capital raisings, subject to negotiation and shareholder approval.
Capital raise
27 April 2025 7:50 PM
Trading Halt Request
- The company intends to make an announcement regarding a proposed strategic partnership and accompanying capital raising.
Capital raise
26 March 2025 1:53 AM
Annual Report
- The company requires additional financing to carry out its exploration and development activities.
- The company is actively strengthening an already impressive asset, reducing uncertainties, and bolstering its readiness for the next steps.
Capital raise
27 January 2025 5:51 PM
Investor Presentation
- The company has appointed Endeavour Financial to lead project financing workstream.
- The company is in discussions with the Mali Government to secure the long-term future of the Kobada Gold Project.
Better than expected
27 January 2025 5:51 PM
Investor Presentation
- The project's low AISC of US$1,004/oz is better than many of its peers.
- The project's rapid payback period of 1.5 years is better than many other gold development projects.
- The project's low initial capital expenditure of US$216 million is better than many other gold development projects of similar scale.
Better than expected
27 January 2025 5:41 PM
Quarterly Activities Report
- The Definitive Feasibility Study results exceeded expectations with a high NPV, IRR, and low payback period.
- The project's low capital intensity and competitive operating costs position it favorably compared to industry standards.
Capital raise
30 October 2024 6:05 PM
Feasibility Study
- The company will need to raise capital to fund the project's development, construction, commissioning, and operation.
Better than expected
30 October 2024 6:05 PM
Feasibility Study
- The project's financial metrics, including NPV, IRR, and payback period, significantly exceeded expectations.
Better than expected
30 October 2024 6:00 PM
Feasibility Study
- The results of the Definitive Feasibility Study were better than expected due to significantly higher than anticipated post-tax NPV and IRR, driven by a combination of higher gold prices and lower than anticipated operating costs.
Delay expected
20 September 2024 4:31 AM
Option Terms and Conditions
- Share issuance may be delayed up to five business days pending receipt of exercise notice, payment, and compliance with the Corporations Act.
Capital raise
8 September 2024 7:18 PM
Investor Presentation
- Tranche 1 & 2 of a placement announced on 21 August 2024, with Tranche 2 subject to shareholder approval in October 2024.
Better than expected
29 July 2024 7:03 PM
Quarterly Activities Report
- The company increased the Kobada Mineral Resource Estimate to 2.0Moz in the Indicated category, a 30% increase from the 2023 MRE.
Capital raise
29 July 2024 7:03 PM
Quarterly Activities Report
- The company has less than 2 quarters of cash available for future operating activities.
- The company will need to raise further cash to fund its operations.
Delay expected
8 July 2024 7:04 PM
Missing type for ID: 4236
- ASX:TRE announces a delay.
Better than expected
1 July 2024 7:09 PM
Mineral Resource Estimate Update
- The 2024 MRE exceeded the Company's expectations in ounces converted and increases in grade.
Capital raise
31 May 2024 2:53 AM
AGM Results
- The company has approval for a 10% placement facility, which allows them to raise capital by issuing new shares.
Better than expected
21 May 2024 7:10 PM
Exploration Update
- The drilling results are better than expected due to the high-grade and wide intersections across multiple areas of the deposit.
Better than expected
29 April 2024 9:32 PM
Quarterly Activities Report
- The initial drill results show numerous near-surface, high-grade oxide intersections, which are better than expected.
Worse than expected
29 April 2024 8:18 PM
Annual Results
- The company reported a loss of $6,625,026, which is worse than the previous year's loss of $5,136,694.
Capital raise
29 April 2024 6:10 PM
Notice of Annual General Meeting
- The company is seeking approval for a 10% Placement Facility, which would allow it to issue equity securities up to 10% of its issued share capital over a 12-month period.
- The funds raised from the potential issue of Equity Securities under the 10% Placement Facility would be used towards continued exploration and development activities and for general working capital.
Capital raise
23 April 2024 7:20 PM
Trading Halt Request
- The company intends to make an announcement regarding a proposed capital raising.
Better than expected
21 April 2024 6:55 PM
Exploration Update
- The document contains better than expected results due to the high-grade gold intercepts reported from the Kobada Gold Project.
Better than expected
10 April 2024 6:22 PM
Exploration Update
- The drilling results are better than expected due to the high-grade and near-surface oxide mineralization encountered.
Worse than expected
25 March 2024 6:05 PM
Annual Results
- The company's net loss increased from the previous year, indicating a worsening financial performance.
Capital raise
25 March 2024 6:05 PM
Annual Results
- The Company has finite financial resources and no current cash flow from producing assets and therefore requires additional financing in order to carry out its exploration and development activities.
- There can be no assurance that any such funding will be available to the Company on favourable terms or at all.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.