ASX-listed Resolute Mining says the results of a scoping study for the ABC project, in Côte d’Ivoire, based on an existing 2.16-million-ounce gold mineral resource estimate (MRE), confirm the project’s strong economic potential and its pathway to become the company’s second operating gold mine in the country, supporting its strategy to build a diversified, multi-asset gold platform.

The study outlines a robust, long-life operation with attractive economics and meaningful potential upside from further resource growth and exploration success, Resolute points out.

The company is accelerating step-out drilling at the Kona Central and Kona South deposits to unlock further resource growth and build on the project’s strong progress, it highlights.

To date, Resolute has drilled over 25 000 m, with results expected to support an updated MRE in the second half of this year.

The study shows a long-life, openpit gold operation with a strong production profile averaging about 141 000 oz/y over a 12-year mine life, delivering total gold production of 1.7-million ounces at a competitive life-of-mine (LoM) all-in sustaining cost (AISC) of $1 614/oz, supporting robust operating margins.

The large-scale openpit mining operation is underpinned by total mill feed of 82.8-million tonnes at 0.76 g/t gold containing two-million ounces of gold, with a low average LoM strip ratio of 1.82.

The study highlights a low-risk development pathway using a conventional seven-million-tonne-a-year carbon-in-leach processing plant with gold recoveries of 84% and further recovery optimisation potential during development.

It also shows strong early cash flow generation with average yearly gold production of 163 000 oz over the first five years at an AISC of $1 565/oz using a gold price assumption of $3 500/oz.

The financials indicate good metrics and a short payback period.

The study outlines a net present value (NPV) at a 5% discount rate of $1.2-billion, an internal rate of return (IRR) of 39% and a 1.4-year payback at the previously indicated assumed gold price.

At a $4 750/oz gold price, the NPV increases to $2.3-billion, with an IRR of 63% and payback period of under one year, the study avers.

It points to a competitive capital cost estimate of $648-million, and average yearly free cash flow and earnings before interest, taxes, depreciation and amortisation (Ebitda) of $262-million and $32-million, respectively, in the first five years of production at a $3 500/oz gold price.

There is also potential upside through further MRE growth.

Based on drilling activities this year, mineralisation remains open at depth and along strike.

Drilling at Kona South extended mineralisation to the North and South, highlighting the potential for resource expansion.

Resolute says it will now accelerate drilling efforts with a focus on infilling resource, as well as resource expansion.

The company will also optimise metallurgical testwork to increase recovery rates of the deposits.

Further, it will initiate environmental- and social-impact assessment and other required technical study work.

Site investigations and permitting will be undertaken to target completion of a definitive feasibility study (DFS) in 2027.

Based on the potential size of the resource, further work will be done to optimise the size of the processing plant to increase the ounce profile above 200 000/y for at least ten years of mine life.

The study was undertaken by MineScope Services along with input from Orelogy, Knight Piésold and ECG Engineering.

“Resolute is very pleased to announce the results of the scoping study for ABC which demonstrate the significant economic potential of the ABC project,” MD Chris Eger highlights.

“Building on the strong results from the ongoing step out drilling at the Kona South and Central deposit, we are confident the project has potential to grow and become more commercially attractive,” he adds.

While the initial results demonstrate the potential for a fourth mine for Resolute, the company will continue to progress the project with an updated MRE planned for the second half of this year as it is highly confident the resource will continue to expand and the project economics will become more attractive with potential to increase the scale of the mine, Eger posits.

The scoping study provides Resolute with the required technical platform to start the DFS, he adds.

“Progress on exploration, metallurgical testwork, site investigations and permitting has been prioritised with the target of completing the required workstreams to finalise a DFS by the end of 2027.”