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Akobo Minerals complete Segele scoping study

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Global Mining Review,

After 10 years of exploration work culminating in a JORC compliant maiden resource estimate earlier this year, followed recently by grant of a large scale gold mining license, Akobo Minerals has released its scoping study for the Segele deposit. The results are very encouraging and exceeds previous expectations.


  • Key contributions from highly respected third parties and peer reviewed by SRK.
  • Estimate of US$243/oz for all in sustaining cost (AISC) vs US$1.048/oz as mining industry average.
  • The estimated limited capital expenditure and very low production cost will lead to Segele becoming an exceptionally high margin operation.
  • Current mine plant can double capacity over time as more resources are discovered or extend the life of mine.
  • Expected mining operations to commence end 2022.

The scoping study indicates what the potential economics of mining the Segele deposit can look like. The study has been completed with contributions from highly respected geologists, engineers and ESG practitioners (SRK Consulting, Sazani Associates, Goshawk Network Technologies and Borrego Sun).

The result confirms that the mineralisation at Segele can be mined and processed with an estimated AISC of US243/oz, while the total life of mine operational expenditure, excluding royalties, is estimated at US$137/oz. Total capital expenditure for setting up the mine plant to start production is estimated at US$8 million, equalling an average of US$153/oz for the current resource estimate of 52.410 oz. This average will go down as more resources are added over time.

Akobo Minerals is planning to mine the gold mineralisation using methods such as shrinkage stoping or similar. These rocks will be brought to surface using an incline shaft that will take 11 months to build. At peak production, just under 6000 tpm of rock will be mined and this material will be passed into an industry standard crushing and gravity circuit, with cyanidation where necessary. The company plans to purchase a plant capable of processing 20 tph, but operated at 10 tph initially – allowing for expansion. The plant is expected to extract 90% of all gold in the mineralisation, this will be confirmed by the ongoing metallurgical testwork.

The scoping study has focused only on the mineralisation covered in the SRK mineral resource estimate (6 April 2021) allowing for an anticipated mine life of 27 months. Ongoing exploration has identified additional mineralisation at depth which leaves open the opportunity to extend mine life.

As with all anticipated underground mining operations, not all ore can be mined or exploited and as such the scoping study estimates an extraction percentage 81%, the grade will be diluted by 5% and ore loss is expected to be 8%. These figures are in-line with or better than industry standards. A sustainable natural resources management plan is planned alongside mining. Such a plan may allow Akobo Minerals to contribute to the United Nations Sustainable Development Goals.

The scoping study is the first phase in the process of developing a business plan for mining at Segele and has an accuracy of between 30 – 50%. Akobo Minerals has already begun a prefeasibility study which typically has an accuracy of +/- 25%. The prefeasibility study will involve a resource upgrade, selection of mining method, detailed plant design and it allows for publication of cash flow models and ore reserves.

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