Mali mining resurgence boosts Toubani gold hopes

Toubani Resources has doubled down on its assertion that Mali’s mining sector is reopening for investment after the nation’s government reconfirmed its support for gold operations run by B2Gold and Allied Gold – which are both substantial in-country producers.

The company believes the statement made by the State of Mali, which recently implemented a positive new mining code for the West African country, also represents a major boost for its Kobada gold project as it closes in on delivering a definitive feasibility study (DFS) next month.

Toubani’s flagship gold project is already proving to be a substantial find for the company, with a free-milling, 2.2 million-ounce oxide resource that has 76 per cent of its ore within 150m of the surface. Management believes its deposit is a technically-simple, low-cost operation that holds massive upside exploration potential given that 40km of the 50km strike length still remains undrilled.

The company has also today boosted its leadership team by adding respected project director Mike Nelson to its board as a non-executive director. It says it will lean on Nelson’s extensive experience in mining and project management as it waits for the posting of the DFS and the next phase of development at Kobada.

Our vision continues to be presenting Kobada as a project of scale, leveraging the significant oxide endowment in our resource. The recent agreements by B2 Gold and Allied Gold are welcome milestones for the Malian mining industry, further pointing to a return to regulatory stability and the precursor for an anticipated return of significant capital investment in the country.

Russo says Toubani is engaged in “productive discussions” with the State of Mali on finalising the same convention agreement for Kobada that has now been afforded to B2 and Allied.

Nelson brings more than 30 years of experience to the company having held leadership roles in major gold and copper projects around the globe, including stints at Barrick Gold and Teck Resources. His most recent roles include overseeing Gold Fields’ global project portfolio and contributions to the development of key operations such as the Yanfolila gold project in Mali.

Nelson’s addition to the board comes on the back of a decision by Tim Kestell, a director for nearly three years who helped list the company, to step down.

In 2020, Mali underwent a political upheaval after protests called for the resignation of then-president Ibrahim Boubacar Keita due to corruption and a flagging economy that led to the nation’s armed forces staging a coup d’etat. Fortunately, a civil war was avoided through the immediate resignation of the president and a military junta was established with colonel Assimi Goita assuming control.

While free elections were promised within two years of the coup, no change has taken place since.

Notwithstanding that, the recent news that Mali is reopening for overseas investment again after four years of political hiatus – backed up by the new convention agreements with B2Gold and Allied – should be particularly pleasing for Toubani and its shareholders as the company looks to position Kobada at the forefront of a gold mining resurgence.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au