LONDON (ShareCast) - (Sharecast News) - West Africa-focussed Cora Gold updated the definitive feasibility study for its Sanankoro Gold Project in southern Mali on Monday, having appointed key consultants and contractors to lead the study.
The AIM-traded firm said it had appointed DRA Global group company SENET as independent project manager to oversee the study's critical elements, and CSA Global as geological and mining consultant to manage the updated mineral resource estimate and the mining study.

It also appointed Epoch Resources to oversee the tailings storage facility elements of the study, and Russell Bradford as project manager to manage the definitive feasibility study.

The study wou;d build on the successful scoping study announced in January last year, which its board said demonstrated the project's future economic potential at a gold price of $1,500 per ounce, including a 107% internal rate of return, all-in-sustaining-costs of $942 per ounce, average annual production of 45,632 ounces, and a payback period of less than 18 months.

It said the advancement of the study followed the "consistently encouraging" results from the company's largest-ever drilling campaign at Sanankoro, with an updated mineral resource estimate to follow in the fourth quarter.

Following positive metallurgical test work results in the second half of 2020, in addition to the more recent very positive drilling results, the company said it was likely to focus on a conventional gravity and carbon in leach processing route at Sanankoro, which would allow for higher recoveries.

Completion of the definitive feasibility study was targeted for the first half of 2022, following the expansion of the ongoing drill campaign, with focus now on a carbon in leach process route.

Ongoing positive discussions with Lionhead Capital Advisors were being held, the firm added, regarding aligning its $21m mandate and term sheet announced on 18 June 2020 with the definitive feasibility study and carbon in leach processing.

"2021 has seen significant activity at Sanankoro with exceptional results reported from our largest ever drill campaign at the project," said chief executive officer Bert Monro.

"These results will support an updated mineral resource estimate in the coming months, which in turn will be used as the basis for our definitive feasibility study aimed at outlining the optimum route to develop Sanankoro into a new gold mine in Mali.

"Last year's scoping study highlighted the potential high returns for Sanankoro and fuelled our confidence in Sanankoro's strong fundamentals, and the company looks forward to publishing the study in the first half of 2022."

Monro said the company had assembled a team of "highly regarded" consultants and contractors.

"Additionally, we are currently in positive discussions with Lionhead Capital Advisors about aligning its existing $21m mandate and term sheet with our updated plans."

At 1512 BST, shares in Cora Gold were down 4.35% at 16.5p.

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