New report underpins stronger mine economics than expected

Few, if any, other commercial gold mines are operating at a gold grade of 40,6 gram per ton indicated mineral resource. Now it’s time to start collect the gold underneath our feets.

A significant gold mineral resource increase and classification upgrade will make our mining project in Segele unique in a global perspective. 22 April 2022 we announced a new report that was more promising than we expected. You can read the full press release here.

In short the report shows an improved potential for high margin gold production with world class grade of 40,6 gram per ton mineral resources and significant increase of 31% in the gold ounces.

Our CEO, Jørgen Evjen stated; “We are thrilled about the latest resource estimate update, and look very much forward to start the production. With the current gold price and low estimated operation costs, the cash flow from mining will support our continued exploration efforts and also make room for dividend pay-outs.“

The updated Mineral Resources for the Segele deposit are tabulated below, and is based upon all relevant assays related to the Segele infill and extension drill program. The Mineral Resources are reported above a 2.65g/t Au cut off.

Table 1: Segele Deposit Mineral Resources as of 22 April 2022

ClassificationTonnes (kt) Au (g/t)Gold Ounces (kOz)
Total Mineral Resources9422.769
The Mineral Resource cut-off grade (2.65g/t) was calculated using a gold price of USD 1,600 per ounce, costs per tonne for mining, processing, administration, and environment, social and governance (ESG) and a 5% royalty for the federal Government of Ethiopia on gold sales.

The Akobo Minerals’ operation is unique in several ways;

  • We care! we really do care about and work with the local community and nature. Please meet our head of ESG, Dr. Cathryn MacCallum here, and follow our on going ESG projects on our social media platforms
  • World class grade! We will start mining with an estimated gold grade at 40,6 gram per ton indicated mineral resource, which few or no other gold mines can show to.
  • Low cost! Our boutique mining operates with a low cost operation and hands on geological expertise.

Please stay tuned for more golden stories. Also, you can read the complete report here.