Robex extends Mali mine as it plans exit

Robex Resources‘ (TSXV: RBX) Nampala gold mine in Mali has enough new mineral reserves to extend its life by six months, according to an updated technical report.

The mine in the African country’s southwest now holds 121,000 oz. in gold reserves from 4 million tonnes grading 0.93 gram gold per tonne, the NI 43-101 study shows. The addition moves the mine’s potential closure to December next year from June.

The report also highlighted possible reserve growth, with an indicated mineral resource totalling 243,000 oz. from 8 million tonnes at 0.94 gram gold. Over its life, Nampala is expected to produce 52,000 oz. of gold per year.

“Increasing the life of mine at Nampala is an important step for Robex to define the future for this asset,” Robex managing director Matthew Wilcox said in a release on Thursday. 

Exit plan

The new report comes after Robex said last month it plans to exit Mali amid growing tensions between the African nation’s junta-led state and foreign miners. Barrick Gold (TSX:ABX; NYSE:GOLD) this week suspended operations at its Loulo-Gounkoto complex in Mali after the military-led government seized some 3 tonnes in gold stockpiles. Resolute Mining’s (ASX: RSG; LSE: RSG) CEO was effectively held for US$1160 million in ransom in November. 

Shares in Robex Resources fell 2.1% to $2.32 apiece in Toronto on Thursday for a market capitalization of $350.7 million. 

The mine is part of the company’s larger Nampala property in the Sikasso region of southern Mali. It is located about 255 km southeast of Bamako, the capital, and 40 km northwest of Resolute’s Syama gold mine. The Robex property also covers three adjoining exploration permits at Mininko, Gladie and Kamasso.

Within budget

Nampala has an after-tax net present value (discounted at 5%) of US$71.1 million based on the S&P consensus long-term gold price at the end of October 2024 of US$2,490-US$2,314 per oz. Its cost estimate is within budget at US$1,106 per ounce.

Before the recent mining industry unrest in Mali, Robex had reached an agreement to raise the government’s stake in the Nampala mine to 20% to conform with the country’s new mining code.

The company is shifting its focus to neighbouring Guinea, where it is developing the Kiniero project and expects to pour first gold in this year’s fourth quarter. It’s expected to produce 139,000 oz. of gold per year over a 9.5-year mine life, Wilcox said.