TRE
Toubani Resources Limited
ASX
Outstanding High Grade Oxide Intersections at Kobada
Sentiment:
Exploration Update
21 April 2024 6:55 PM
Toubani Resources announces high-grade gold intercepts from its Kobada Gold Project in Mali, with drilling results set to inform an updated Mineral Resource Estimate in Q2 2024.
Better than expected
The document contains better than expected results due to the high-grade gold intercepts reported from the Kobada Gold Project.
Summary
- Toubani Resources has announced further results from its resource definition drill program at the Kobada Gold Project in southern Mali.
- The Kobada project hosts 2.4 Moz in Mineral Resources over a 4.5km strike length.
- Recent assays show spectacular high-grade oxide results, including 20m at 2.05g/t gold from 96m and 3m at 9.12g/t gold from 14m.
- Previous assays included 71m at 1.86g/t gold from 79m and 7m at 11.0g/t gold from 17m.
- Drilling is expected to conclude shortly, with results informing an updated Mineral Resource Estimate in 2Q 2024.
- The drilling program aims to de-risk, convert, and unlock value in the Kobada deposit.
- Results from the first 43 holes demonstrated shallow high-grade mineralisation, including 71m at 1.86g/t gold.
- Results have now been received from a further 11 drillholes in the central portion of the Kobada deposit.
- Highlights include 19m at 20.6g/t gold from 69m and 6m at 4.54g/t gold from 36m.
- To date, 114 drill holes have been completed for a total of 10,947 metres.
Sentiment
Score: 8
Explanation: The sentiment is positive due to the announcement of high-grade gold intercepts and the potential for resource expansion. The company's focus on de-risking and unlocking value in the Kobada deposit also contributes to the positive outlook.
Highlights
- Toubani Resources reports high-grade oxide gold results from the Kobada Gold Project.
- Significant intercepts include 20m at 2.05g/t gold from 96m, including 1m at 17.9g/t gold.
- Other notable intercepts are 3m at 9.12g/t gold from 14m, including 1m at 26.1g/t gold, and 6m at 5.66g/t gold from 50m.
- Previous results included 71m at 1.86g/t gold from 79m, including 15m at 4.04g/t gold.
- The drilling program is designed to de-risk and convert the Kobada deposit's value.
- The project already hosts 2.4 Moz in Mineral Resources.
- Drilling is anticipated to be completed in the coming days, with 114 drill holes completed for a total of 10,947 metres to date.
- An updated Mineral Resource Estimate is expected in 2Q 2024 to underpin Ore Reserve studies as part of the DFS Update.
- Recent results include 19m at 20.6g/t gold from 69m including 2m at 178g/t gold (KBRC24_044).
Positives
- High-grade oxide gold intercepts indicate potential for significant resource upgrade.
- Successful drilling results demonstrate the existence of shallow high-grade mineralisation.
- The drilling program is designed to de-risk and convert the Kobada deposit's value.
- The project already hosts 2.4 Moz in Mineral Resources.
- The company anticipates an updated Mineral Resource Estimate in 2Q 2024.
- The company has completed 114 drill holes for a total of 10,947 metres to date.
Risks
- Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially.
- These risks include, but are not limited to, changes in general economic conditions, commodity prices, exchange rates, and available infrastructure and supplies.
- Pandemics and other risks of the mining industry could also impact results.
Future Outlook
The company anticipates an updated Mineral Resource Estimate in 2Q 2024 to underpin Ore Reserve studies as part of the DFS Update.
Management Comments
- Toubani Chief Executive Officer, Phil Russo, commented: 'Our drilling program has been designed for a specific purpose, to derisk, convert and unlock the compelling value in the Kobada deposit, and it is pleasing to see numerous intersections the bulk mining approach of the broader deposit.
- If successful, this will further highlight the range of optionality and potential we see at Kobada over and above the optimised project we are excited to define in our upcoming DFS.'
Industry Context
This announcement highlights the ongoing exploration and development activity in the West African gold sector, where companies are focused on defining and expanding resources to support future production.
Comparison to Industry Standards
- The reported drill intercepts are comparable to other gold exploration projects in similar geological settings in West Africa.
- Companies like Allied Gold and Endeavour Mining are actively exploring and developing gold projects in the region, often reporting similar high-grade intercepts.
- The Kobada project's 2.4 Moz resource places it among the mid-sized gold projects in the region, with potential for further growth through ongoing exploration.
Stakeholder Impact
- Shareholders will likely react positively to the high-grade drill results.
- Employees involved in the exploration program will continue their work.
- The local community may benefit from potential future development of the project.
- Suppliers of drilling and exploration services will continue to be engaged.
Next Steps
- Conclude the current drilling program.
- Incorporate drilling results into an updated Mineral Resource Estimate in 2Q 2024.
- Underpin Ore Reserve studies as part of the DFS Update.
- Plan further drilling to follow up on these results.
Key Dates
- 18 August 2023: Information on the Mineral Resources for the Kobada Gold Project presented in this announcement is contained in an ASX announcement dated 18 August 2023.
- 25 March 2024: Reference to ASX Announcements 25 March 2024.
- April 10 2024: Reference to ASX Announcements 10 April 2024.
- 2Q 2024: Drilling to conclude shortly with results to inform an updated Mineral Resource Estimate in 2Q 2024 to underpin Ore Reserve studies as part of the DFS Update
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.
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.
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 5:41 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.
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.
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.
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.