Cora Gold Limited - Updated Reserves and Definitive Feasibility Study
03/09/2025 07:00
RNS Number : 7334X
Cora Gold Limited
03 September 2025
Cora Gold Limited / EPIC: CORA.L / Market: AIM / Sector: Mining
3 September 2025
Cora Gold Limited ('Cora' or 'the Company')
Sanankoro Gold Project: Updated Reserves and Definitive Feasibility Study
Cora Gold Limited, the West African focused gold company, is pleased to announce Updated Reserves and the results of an updated Definitive Feasibility Study ('DFS') for its flagship Sanankoro Gold Project ('Sanankoro' or the 'Project') in southern Mali.
Highlights
● Updated Probable Reserve of 531 koz at 1.13 g/t gold ('Au') based on a gold price of US$2,200/oz (a 26% increase over the Maiden Probable Reserve of 422 koz at 1.30 g/t Au based on a gold price of US$1,650/oz (see announcement dated 21 November 2022)).
● 2025 DFS economics (post tax, based on a gold price of US$2,750/oz)
○ 65% internal rate of return ('IRR')
○ 1.1 year payback period
○ US$479m free cash flow ('FCF') over life of mine ('LOM')
○ US$67m pa average FCF in first 5 years
○ US$221m NPV8
○ US$948/oz LOM cash cost and US$1,478/oz LOM all-in sustaining costs ('AISC')
○ 10.2 years Reserve mine life
○ 47 koz pa average production LOM
○ 64 koz pa average production in first 5 years
○ US$124m pre-production capital cost (including mining pre-production & contingencies)
● Metallurgical test work confirmed an average LOM gold recovery of 90.7% through a conventional 1.5 Mtpa Carbon in Leach ('CIL') processing plant.
● Solar hybrid power option incorporated into the plant design, delivering savings in both operating costs at current fuel prices and carbon emissions by reducing consumption of 40 million litres diesel over LOM.
● As part of the 2025 DFS various optimisations have been incorporated taking greater advantage of the oxide nature of the ore at the front end of the process flow sheet.
● Management Plan, including pit optimised Inferred Resources, based on the same parameters as the Reserves, offers the potential for an additional 173 koz gold produced, adding 5 years to the mine life. Further drilling should enable the conversion of these Inferred Resources to Reserves.
● Sanankoro has excellent exploration and resource growth potential providing the opportunity to significantly add to the current resource base of 1.04 Moz, as optimised pits bottomed out due to lack of deeper drilling and mineralisation is open along strike and at depth. Additionally, there are undrilled artisanal workings, and 19 new exploration targets identified, the majority of which are within 3-4 km from the process plant and the oxide nature of the ore offers further upside.
Bert Monro, Chief Executive Officer of Cora, commented, "Sanankoro is an exceptional project well positioned to become a significant new high margin open pit oxide gold mine. We are delighted to have meaningfully increased the Project's Reserves, with an initial 10 year mine life, from minimal drilling. The updated Reserves and enhanced DFS significantly improve upon the previous 2022 study, highlighting both the progress we have made in advancing the asset, as well as the opportune time to be developing a gold project of Sanankoro's calibre.
"In the first 5 years, the Project will average 64 koz of gold production and US$67m of FCF per year, delivering a 1.1 year pay back period and US$479m of FCF over the LOM at a gold price of US$2,750/oz.
"Additionally, significant upside remains as pit optimised Inferred Resources were used to produce a Management Plan, by modelling them using the same parameters as the reserves, indicating an additional 173 koz gold could be added to the life of mine. These ounces will require infill drilling to be classified as Reserves and there remains significant exploration potential outside of current Resources at Sanankoro.
"This study fully incorporates the impact of the new 2023 Mining Code to both the Capex, Opex and local content conformity. Amongst other factors, we made design modifications to the tailings storage facility impacting the Capex. The impact on the AISC in tax and royalty changes was approximately US$290/oz at US$2,750/oz gold price. In light of these factors, it is a strong testament to the robustness of the Project that it is delivering such strong returns.
"Looking ahead, our focus is on concluding the permitting process for the mine so that we can complete financing and begin mine construction. I look forward to updating investors on progress with this in the near future.
"Finally, I'd like to take this opportunity to thank Cora's technical team and all the DFS consultants for their work on the Project."
Updated Definitive Feasibility Study - Summary of Results
The key results and financial outcomes of the 2025 DFS are set out in the table below:
| Parameters | Values based on a gold price of US$2,750/oz |
| Construction period 1 (months) | 21 |
| Life of Mine ('LOM') (years) | 10.2 |
| LOM waste mined (kt) | 71,520 |
| LOM ore mined (kt) | 14,603 |
| Strip ratio (waste : ore) | 4.90 : 1 |
| LOM grade processed (g/t Au) | 1.13 |
| Average gold recovery | 90.7% |
| LOM production (koz) | 482 |
| Average production (koz pa) | 47 |
| Average production first 5 years (koz pa) | 64 |
| LOM FCF post tax (US$m) | 479 |
| Average FCF post tax (US$ pa) | 47 |
| Average FCF post tax first 5 years (US$m pa) | 67 |
| Mining costs (US$/t ore) | 16.5 |
| Processing & maintenance costs (US$/t ore) | 11.1 |
| General & administration plus other costs to mine gate (US$/t ore) | 3.3 |
| Payback period from start of operations (years) | 1.1 |
| Pre-production capital (US$m) (including US$5m mining pre-production & US$8m contingency) | 124 |
| Sustaining capital (US$m)2 | 57 |
| Average cash cost (US$/oz Au) | 948 |
| Average AISC (US$/oz Au) | 1,478 |
| IRR pre-tax | 74.5% |
| IRR post tax | 64.9% |
| NPV8 pre-tax (US$m) | 302.1 |
| NPV8 post tax (US$m) | 220.8 |
| Gold price | US$2,250/oz | US$2,500/oz | US$2,750/oz | US$3,000/oz | US$3,250/oz |
| IRR post tax | 40.9% | 53.5% | 64.9% | 75.9% | 87.5% |
| LOM FCF post tax (US$m) | 336 | 410 | 479 | 547 | 620 |
| NPV8 post tax (US$m) | 121.4 | 172.8 | 220.8 | 268.3 | 318.9 |
| AISC (US$/oz Au) | 1,393 | 1,429 | 1,478 | 1,530 | 1,568 |
| Capital items | US$m |
| Civil works | 6.9 |
| Earth works | 3.8 |
| Machinery & equipment | 47.6 |
| Infrastructure | 1.4 |
| Transport | 7.5 |
| First fills | 0.9 |
| Mine camp | 2.8 |
| Project management | 10.3 |
| Insurance & guarantees | 0.8 |
| Tailings storage facility ('TSF'; phase 1) | 23.5 |
| Owner's costs | 5.2 |
| Mining pre-production | 5.2 |
| Contingency | 8.1 |
| Total pre-production capital | 124.0 |
| Sustaining & closure capital | 57.0 |
| Total LOM capital | 181.0 |
| Operating / unit costs (US$/oz of gold) | Values based on a gold price of US$2,750/oz |
| Mining | 499.8 |
| Processing | 322.9 |
| Maintenance | 14.8 |
| General & administration | 101.0 |
| Total cost to mine gate | 938.5 |
| Transport, insurance & refining | 9.1 |
| Total cash cost ('C1') | 947.6 |
| Royalties & statutory | 411.7 |
| All-in sustaining cost ('AISC') | 1,478 |
| Classification | Oxidation Zone | Tonnage (Mt) | Grade (g/t Au) | Contained metal (koz Au) |
| Proved | Oxide | - | - | - |
| Transitional | - | - | - | |
| Fresh | - | - | - | |
| All Zones | - | - | - | |
| Probable | Oxide | 13.7 | 1.08 | 476 |
| Transitional | 0.9 | 1.86 | 55 | |
| Fresh | - | - | - | |
| All Zones | 14.6 | 1.13 | 531 | |
| Total | 14.6 | 1.13 | 531 |
| Zone | Classification | Tonnage (Mt) | Grade (g/t Au) | Contained metal (koz Au) |
| A | Proved | - | - | - |
| Probable | 3.7 | 1.17 | 140 | |
| Total | 3.7 | 1.17 | 140 | |
| B | Proved | - | - | - |
| Probable | 3.1 | 1.10 | 111 | |
| Total | 3.1 | 1.10 | 111 | |
| B North | Proved | - | - | - |
| Probable | 1.6 | 0.85 | 43 | |
| Total | 1.6 | 0.85 | 43 | |
| C | Proved | - | - | - |
| Probable | - | - | - | |
| Total | - | - | - | |
| Selin | Proved | - | - | - |
| Probable | 6.2 | 1.19 | 237 | |
| Total | 6.2 | 1.19 | 237 | |
| Total | Proved | - | - | - |
| Probable | 14.6 | 1.13 | 531 | |
| Total | 14.6 | 1.13 | 531 |
| Classification | Zone | 2022 Ore Reserve | 2025 Ore Reserve | Difference | % difference | ||||||||
| Tonnage (Mt) | Au | Au | Tonnage (Mt) | Au | Au | Tonnage (Mt) | Au | Au | Tonnage (Mt) | Au | Au | ||
| (g/t) | (koz) | (g/t) | (koz) | (g/t) | (koz) | (g/t) | (koz) | ||||||
| Probable | A | 2.8 | 1.32 | 117 | 3.7 | 1.17 | 140 | 1.0 | -0.15 | 23 | 35% | -11% | 20% |
| B | 2.0 | 1.24 | 81 | 3.1 | 1.10 | 111 | 1.1 | -0.14 | 30 | 55% | -12% | 37% | |
| B Nth | 1.0 | 0.91 | 30 | 1.6 | 0.85 | 43 | 0.5 | -0.06 | 13 | 54% | -7% | 43% | |
| Selin | 4.3 | 1.41 | 194 | 6.2 | 1.19 | 237 | 1.9 | -0.21 | 43 | 44% | -15% | 22% | |
| Total | 10.1 | 1.30 | 422 | 14.6 | 1.13 | 531 | 4.5 | -0.17 | 109 | 45% | -13% | 26% | |
| Bert Monro Craig Banfield | Cora Gold Limited | info@coragold.com |
| Derrick Lee Pearl Kellie | Cavendish Capital Markets Limited (Nomad & Broker) | +44 (0)20 7220 0500 |
| Susie Geliher Charlotte Page | St Brides Partners (Financial PR) | cora@stbridespartners.co.uk |
| Criteria | JORC Code explanation | Supplementary Commentary |
| Mineral Resource estimate for conversion to Ore Reserves | ● Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve. ● Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves. | ● The Mineral Resource models were prepared byERM Australia Consultants Pty Ltd ('ERM'; formerly CSA Global). ● The Ore Reserves, including adjustment for ore loss and dilution factors, are included within the declared Mineral Resources |
| Site visits | ● Comment on any site visits undertaken by the Competent Person and the outcome of those visits. ● If no site visits have been undertaken indicate why this is the case. | ● Independent consultant F. Fourie the Competent Person for the Ore Reserves has not visited the site due to security reasons at the time, but a site visit is planned for the future. |
| Study status | ● The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves. ● The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered. | ● A feasibility level study (FS) has been completed for the Project in 2022, with an update completed in September 2025 to incorporate the new Malian Mining Code of 2023 (and its related effects), natural inflation escalation and an update to the MRE due to additional 2,669m of drilling at the Sanankoro Project. ● A detailed mine plan that is technically achievable and economically viable has been completed. |
| Cut-off parameters | ● The basis of the cut-off grade(s) or quality parameters applied. | ● A financial assessment was undertaken to ascertain whether the Cut-off grade fulfil the criteria of 'reasonable prospects for eventual economic extraction' using detailed costs ● To complete pit optimisation, which forms the basis of the final pit designs, a cut-off grade estimate was performed. The cost per tonne for mining, processing and overhead costs, mining dilution and loss factors, processing plant recoveries and net payable gold, were used to determine the cut-off grade. ● A cut-off grade of 0.3 g/t Au was used. ● The cut-off grade being used for the Project is considered by the CP to be appropriate for the operation, considering the nature of the deposit, and the associated project economics. |
| Mining factors or assumptions | ● The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design). ● The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc. ● The assumptions made regarding geotechnical parameters (eg pit slopes, stope sizes, etc), grade control and pre-production drilling. ● The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate). ● The mining dilution factors used. ● The mining recovery factors used. ● Any minimum mining widths used. ● The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion. ● The infrastructure requirements of the selected mining methods. | ● A method of re-blocking was used on the Mineral Resource model to account for dilution and ore losses. ● Using the re-blocked Mineral Resource model, which accounts for modifying factors, pit optimisations where completed. ● The pits selected for each deposit formed the basis of final pit and pushback designs, which were used in the life of mine schedule. The CP considers the LOM to be appropriate and practically achievable. ● The mining of Selin, Zone A and Zone B is well suited to typical open pit methods using a backhoe configured excavator and truck fleet which will be operated by a mining contractor. ● Allowance was made for bush clearing and topsoil removal before the start of any pit being mined. ● Geotechnical assumptions were based on the various geotechnical drilling and analysis completed by OHMS. ● Modifying factors applied: o Mining recovery and dilution: ▪ Selin: Mining recovery 97.7%, Dilution 6.8% ▪ Zone A: Mining recovery 97.7%, Dilution 6.6% ▪ Zone B: Mining recovery 99.5%, Dilution 8.0% ▪ Zone B North: Mining recovery 97.6%, Dilution 10.1% ● In the pit, the minimum mining width applied as far as practically possible was 35m, which is appropriate for the envisioned type of equipment to be used. The selected SMU has been set at 5m x 5m x 5m. ● Inferred Mineral Resource material has not been included in the pit optimisation or in the Ore Reserves estimation. ● The final designed pits incapsulates 30 koz of Inferred Mineral Resources, which was not included in the LOM schedule used for financial modelling. At this stage the Inferred Mineral Resources were considered to be waste material. ● The main mining infrastructure includes crusher, tailings and waste storage facilities, stockpiles, roadways/ramps, workshops and so forth. |
| Metallurgical factors or assumptions | ● The metallurgical process proposed and the appropriateness of that process to the style of mineralisation. ● Whether the metallurgical process is well-tested technology or novel in nature. ● The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied. ● Any assumptions or allowances made for deleterious elements. ● The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole. ● For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications? | ● The Sanankoro optimised gold processing plant is designed to process oxide and transition ores from the three main deposits: Selin, Zone A and Zone B ores. ● The proposed process gravity/carbon-in-leach (CIL) technology, which consists of mineral sizing and scrubbing for oxide ore and crushing for transition material, milling, and gravity recovery of free gold, followed by leaching/adsorption of gravity tailings, elution and gold smelting, and tailings disposal. The process is well suited to the style of mineralisation. ● The proposed process plant design is based on a well-proven and established gravity/CIL technology. ● Extensive test work on oxide ores have been completed on samples from the Selin, Zone A and Zone B to cover the entire deposit laterally and at depth, which are considered representative. Additional metallurgical test work was done earlier in 2025 from various drill holes at Selin, Zones A & B to complement previous metallurgical testing and confirm the concept of introducing a scrubber and downsized mill circuit. Gold is expected to be extracted from each ore type at the following average recoveries: ● Oxides 93.6%, Transitional 65.6%. ● No deleterious elements are indicated in the ore head grade assayed. ● A bulk sample composite was taken per domain and per weathering zone (and at depth), which are considered representative of the individual domains and zones. ● Specifications are not applicable. The product will be in the form of gold doré. The doré bars will be weighed, sampled and assayed before being sent to the precious metal refinery. |
| Environmental | ● The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported. | ● The Company commissioned Digby Wells to complete an ESIA to both Malian and International standards. On completion of the ESIA an application for Environmental Permit was lodged with the Mali government and subsequently the permit was received, in October 2022, so the Project is fully permitted from an environmental perspective. |
| Infrastructure | ● The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided or accessed. | ● The Sanankoro Project is a Greenfields project - minimal infrastructure has been established on the project site. The on-site infrastructure required will be related to the processing plant and the supporting facilities as follows: ● In-plant access roads ● Plant buildings ● Plant reagents and consumables stores ● Process plant site drainage ● Sewage disposal ● Security ● Water supply and treatment ● Communications ● Power supply ● Fuel supply and storage ● There is sufficient land available for the development of and access to these items. ● The main off-site infrastructure required for the development of the project will be the following: ⮚ Mining infrastructure and buildings ⮚ Camp and catering facilities ⮚ Medical facilities ⮚ Power supply and distribution ⮚ Fuel storage ⮚ Communication ⮚ Potable water supply system |
| Costs | ● The derivation of, or assumptions made, regarding projected capital costs in the study. ● The methodology used to estimate operating costs. ● Allowances made for the content of deleterious elements. ● The derivation of assumptions made of metal or commodity price(s), for the principal minerals and co- products. ● The source of exchange rates used in the study. ● Derivation of transportation charges. ● The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc. ● The allowances made for royalties payable, both Government and private. | The capital cost estimate for the project has been derived from information collated from the following: ● Life of Mine (LOM) pit production schedule, including stockpiling operations ● LOM processing plan ● Mine haul road designs and layouts ● Process plant design criteria ● General layouts of the process plant and related infrastructure ● Tailings Storage Facility (TSF) development schedule and operations ● Process flow diagrams ● Process plant equipment data sheets and lists ● Process plant piping and instrumentation diagrams ● Process plant line, valve, and instrument lists ● Electrical single-line diagrams and motor lists ● Electrical reticulation routes ● Various discipline material take-offs ● Quotations from vendors on mechanical and/or process equipment ● Quotations from vendors on main construction contracts ● EPCM schedules ● In-house historical databases ● The mining operating costs were obtained from contractor quotations. ● General and Administration costs were determined from first principles and by using information from SENET's in-house database for similar projects from the same locality. ● The process plant operating costs were compiled from a variety of sources: ⮚ First principles, where applicable ⮚ Supplier quotations on reagents and consumables ⮚ SENET's in-house experience and database where applicable ⮚ Allowances have been made for royalties and taxes based on the current applicable mining laws |
| Revenue factors | ● The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc. ● The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products. | ● A life-of-mine production schedule was derived from the mine designs and the geological block model. The production schedule was used to generate monthly estimates of the mined tonnes and grade. ● The gold price used for Ore Reserve declaration is US$2,200/oz and the financial model completed at US$2,750/oz for the base case. ● All cost inputs are based on tenders, quote estimates or calculated from first principal. |
| Market assessment | ● The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future. ● A customer and competitor analysis along with the identification of likely market windows for the product. ● Price and volume forecasts and the basis for these forecasts. ● For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract. | ● Based on market and operation requirements |
| Economic | ● The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc. ● NPV ranges and sensitivity to variations in the significant assumptions and inputs. | ● Based on assumptions that built the financial model in line with existing industry norm assumptions around gold price, discount rate and other factors. ● The financial model of the Ore Reserves mine plan shows that the mine has a positive NPV. The discount rate is in line with Cora's corporate economic assumptions. ● Various sensitivity analyses on the key input assumptions were undertaken during mine optimisations and financial modelling. All produce robust positive NPVs. |
| Social | ● The status of agreements with key stakeholders and matters leading to social licence to operate. | ● An ESIA has been completed that has given guidance which will be reviewed and implemented as appropriate when Project execution commences. |
| Other | ● To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves: ● Any identified material naturally occurring risks. ● The status of material legal agreements and marketing arrangements. ● The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent. | ● As required by laws and or regulation of the country. A mining permit is required for the Project, but the Company sees no reasons that this would not be granted. ● Cora is fully committed to comply with the Mining Code that the Mali government implemented in 2023. |
| Classification | ● The basis for the classification of the Ore Reserves into varying confidence categories. ● Whether the result appropriately reflects the Competent Person's view of the deposit. ● The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any). | ● The classification of Ore Reserves is based on the requirements set out in the JORC code 2012, based on the classification of Mineral Resources and the cut-off grade. The material classified as Measured and Indicated Mineral Resources is within the final pits and is above the cut-off (US$/t) value, classified as Proved and Probable Ore Reserves, respectively. ● Indicated Mineral Resources within the pit designs and which are above the nominated cut-off grade, have been classified as Probable Ore Reserves. ● The Competent Person considers this appropriate for the Sanankoro Ore Reserves estimate. ● No Probable Ore Reserves have been derived from Measured Mineral Resources. |
| Audits or reviews | ● The results of any audits or reviews of Ore Reserve estimates. | ● No external audits or reviews of the Ore Reserve has been completed |
| Discussion of relative accuracy/ confidence | ● Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate. ● The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. ● Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage. ● It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available. | ● The Ore Reserve has been completed to feasibility level with the data being generated from a tightly spaced drilling grid, thus confidence in the resultant figures is considered high. ● The most significant factors affecting confidence in the Ore Reserves are: ● Mining Dilution and Ore Loss are a best estimate at this stage but could have an impact if reality does not match the estimation. ● Increase in operating costs for mining and processing due to external factors. ● Geotechnical risk related to slope stability. ● The Malian governance. |