TRE
Toubani Resources Limited
ASX
Toubani substantially increases oxides and grade at Kobada
Sentiment:
Mineral Resource Estimate Update
1 July 2024 7:09 PM
Toubani Resources announces a 44% increase in Indicated oxide ounces and a 10% grade increase in its 2024 Mineral Resource Estimate for the Kobada Gold Project.
Better than expected
The 2024 MRE exceeded the Company's expectations in ounces converted and increases in grade.
Summary
- Toubani Resources has updated its Mineral Resource Estimate (MRE) for the Kobada Gold Project in Mali.
- Indicated oxide resources have increased by 44% to 1.4 million ounces of contained gold, representing 49 million tonnes at 0.88g/t gold.
- The overall MRE stands at 78 million tonnes at 0.88g/t for 2.2 million ounces of gold.
- The company converted over 80% of oxide Inferred resources to Indicated resources.
- The DFS Update is due in September.
- The company plans to pursue future growth in Mineral Resources, targeting mineralisation outside the MRE and satellite deposits.
Sentiment
Score: 8
Explanation: The document presents a highly positive outlook with significant resource upgrades and a clear path towards development. The management's comments are optimistic, and the project is described as 'study ready' with reduced technical risk.
Highlights
- Indicated oxide resources increased by 44% to 1.4Moz of contained gold (49Mt at 0.88g/t gold).
- The 2024 MRE includes a 30% increase in total Indicated resources versus the 2023 MRE.
- Over 80% of the oxide Inferred resources targeted in the resource definition drill program have converted to Indicated.
- The 2024 MRE was completed by Entech Pty Ltd.
- The DFS Update is expected in September.
- The MRE includes 78 million tonnes at 0.88g/t for 2.2 million ounces of gold.
Positives
- Significant increase in Indicated oxide resources, enhancing the project's economic viability.
- High conversion rate of Inferred to Indicated resources, demonstrating increased confidence in the resource estimate.
- The increased tonnage and grade profile is anticipated to improve the results of the forthcoming DFS Update.
- The project is now 'study ready' with a robust, high confidence Mineral Resource.
- The company has a vision to reposition Kobada as a reduced technical risk, low strip, bulk-tonnage, oxide-dominant open pit development project of scale.
Negatives
- Some minor differences arise in the fresh rock component within the MRE due to the focus of the 2024 resource delineation drilling on oxide mineralisation.
- Shear-hosted mineralisation controls are not currently well understood, or consistently logged, within the weathered portions of the deposit.
Risks
- Mineralisation falling outside the MRE, especially at depth, needs further exploration.
- Satellite deposits not included in this MRE such as Kobada West and Gosso need further exploration.
- Approximately 40km of the +50km regional-scale shear zones are yet to be drill tested.
- The presence of possible mine-scale, eastwest mineralisation controlling structures has been noted but not identified in core, nor in structural information (which is limited) but may impact mineralisation continuity along strike as further infill drilling occurs.
Future Outlook
The company anticipates improved results from the forthcoming DFS Update due in September and plans to pursue further exploration to expand the resource base.
Management Comments
- Toubani Chief Executive Officer, Phil Russo, commented: The successful delivery of the 2024 MRE is a fantastic result that exceeded the Company's expectations in ounces converted and increases in grade two key drivers of the upcoming DFS and means that the Kobada Gold Project is now 'study ready' with a robust, high confidence Mineral Resource to inform open pit and process flowsheet designs for input into the DFS Update.
- To achieve 2 million ounces of contained gold in Indicated resources is a significant achievement and clearly differentiates Kobada from its development peers on the ASX and globally.
- Our vision is to reposition Kobada as a reduced technical risk, low strip, bulk-tonnage, oxide-dominant open pit development project of scale.
- We look forward to showcasing the attractiveness of Kobada in the DFS Update due in September, where the strengths of Kobada as a simple, low technical risk oxide development project are set to be amplified.
Industry Context
The announcement positions Kobada as a significant open-pit gold development asset in West Africa, differentiating it from peers with its large Indicated resource base and low technical risk profile.
Comparison to Industry Standards
- The document references Cora Gold Limited's Sanankoro Gold Project as a peer project in the same Birimian volcano-sedimentary formation, highlighting similar density values used in their respective MREs.
- The document states that the Kobada Gold Project differentiates itself from its development peers on the ASX and globally by achieving 2 million ounces of contained gold in Indicated resources.
Stakeholder Impact
- Shareholders will likely react positively to the increased resource estimate and the potential for improved DFS results.
- Employees may benefit from the project's advancement and potential future operations.
- Customers (gold purchasers) could see a new source of gold production.
- Suppliers could benefit from increased demand for goods and services during the development and operational phases.
- Creditors may view the project as a more attractive investment opportunity due to the increased resource confidence.
Next Steps
- Finalization of the DFS Update, expected by the end of September 2024.
- Completion of updated pit optimisation studies and mining schedules by Orelogy Consulting Pty Ltd.
- Finalization of key design elements for the process flowsheet and plant design by Lycopodium Minerals.
- Refinement of design and engineering for non-process infrastructure.
- Financial modelling and optimisation of capital and operating cost estimates.
- Targeted exploration drilling to test extensions to mineralisation down dip and down plunge.
- Upgrade mineralisation which falls outside the RPEEE shell.
Key Dates
- 12 September 2022: Date of the Company's prospectus.
- 25 November 2022: Release of the Company's prospectus on ASX.
- 31 May 2023: ASX Announcement regarding drilling results.
- 19 July 2023: ASX Announcement regarding drilling results.
- 18 August 2023: ASX Announcement regarding the 2023 Kobada Project Mineral Resource Estimate.
- 17 June 2024: ASX Announcement regarding drilling results.
- 2 July 2024: Date of the ASX announcement regarding the 2024 Mineral Resource Estimate.
- September 2024: Expected completion of the DFS Update.
Keywords
Mineral Resource Estimate, Kobada Gold Project, Toubani Resources, Gold, Exploration, MRE, Oxide, Indicated Resources, Inferred Resources, DFS Update, Mining
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.
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.
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.
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.
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.