Gold mining company Centamin said that the Doropo gold project in Côte d’Ivoire will require a total construction capital expenditure (capex) of $373m, based on the findings of a definitive feasibility study (DFS).
The capex also includes a contingency of $29m.
According to the DFS, the Doropo project will have an average annual gold production of about 167,000 ounces per year over a ten-year life of mine.
It also stated that the mining and processing operations at the project will remain consistent with the pre-feasibility study (PFS) by utilising open-pit mining and a carbon-in-leach (CIL) processing circuit.
Located in the north-eastern Bounkani region, the Doropo gold project comprises seven exploration permits, covering an area of nearly 1,850km2. The licences cover thirteen gold deposits.
The environmental permit for the gold project was granted last month.
The DFS estimates an after-tax net present value (NPV) of $426m for the gold project. It also projects a post-tax internal rate of return (IRR) of 34% with a payback period of 2.1 years.
The Doropo gold project is estimated to generate a free cash flow of $810m on an after-tax basis.
Centamin has completed extensive work during the DFS stage. The DFS along with the environmental permit will support the submission for a mining licence to the Côte d’Ivoire government.
The application is expected to be submitted in Q3 2024.
Upon receiving the mining licence and concluding the mining convention, the gold mining company is expected to reach a final investment decision for the Doropo project.
Centamin CEO Martin Horgan said: “The results of the DFS demonstrate a robust project that meets Centamin’s investment criteria. The project shows a strong first five years with production in excess of 200kozpa at an AISC below $1,000/oz, delivering an accelerated payback on investment.
“The DFS has resulted in a plan with significantly lower execution risk, relative to the PFS, reflecting a reconfiguration of the project to reduce its social impact on local communities.
“We were pleased to receive regulatory approval of the Environmental and Social Impact Assessment and receipt of the environmental permit in June, and will shortly proceed to file the application for a mining licence.”
