Name of the Project
Segele gold project.

Location
Ethiopia.

Project Owner/s
Scandinavian gold exploration and mining company Akobo Minerals.

Project Description
A scoping study has confirmed the potential economics of the project.

Akobo Minerals is planning to mine the gold mineralisation using methods such as shrinkage stoping. Ore will be brought to surface using an incline shaft.

At peak production, almost 6 000 t a month of rock will be mined and this material will be fed into an industry-standard crushing and gravity circuit, with cyanidation where necessary.

The mine life is estimated at 27 months.

The company plans to buy a plant capable of processing 20 t/h, but will initially operate it at 10 t/h. The mine plant will be a turnkey solution comprising a grinder, concentrator and cyanide leach containers.

Akobo will manage the processing plant, but will appoint a mining contractor to do the mining.

The plant is expected to extract 90% of all gold in the mineralisation; this will be confirmed by ongoing metallurgical testwork.

Potential Job Creation
None stated.

Net Present Value/Internal Rate of Return
None stated.

Capital Expenditure
Total capital expenditure for establishing the mine plant is estimated at $8-million.

Planned Start/End Date
The mine is on track to start producing gold early in 2023.

Latest Developments
Akobo Minerals has secured a convertible loan of NKr49.18-million, or about $5-million, to fund the first phase of the Segele mining operation.

The loan, primarily from major shareholders, is structured as a short-term loan, maturing 12 months after the date of disbursement, which will be converted into shares in Akobo, subject to certain conditions being met.

The remaining $7-million for the final phase of the project is expected to be financed from additional debt and/or equity.

Akobo is progressing its assessment of several financing alternatives.

CEO Jørgen Evjen has said that, in parallel to the financing, the company continues to deliver “on plan”, with work on site progressing according to schedule.

The processing plant design and supply phases are well under way and Akobo expects major parts to arrive in Ethiopia shortly.

Further, contract mining negotiations are very advanced and the company expects to break ground in October.

Key Contracts, Suppliers and Consultants
Peacocke and Simpson (metallurgical testwork); and Solo Resources (processing plant).

Contact Details for Project Information
Akobo Minerals, tel +47 92 80 40 14 or email info@akobominerals.com.