Toubani Resources - June Quarterly Activities Report - 30 July 2024
TRE (TRE) Share Update July 2024 Monday 29th
Toubani Resources Announces Significant Upgrade to Kobada Mineral Resource Estimate
Toubani Resources Limited (ASX: TRE) has released its quarterly activities report for the period ending 30 June 2024, highlighting a significant upgrade to the Kobada Gold Project's Mineral Resource Estimate.
Instant Summary:
- Kobada Mineral Resource Estimate upgraded to 2.0Moz in the Indicated category.
- Indicated oxide resources increased by 44% to 1.4Moz of contained gold.
- Grade of Indicated resources increased by 10% to 0.87g/t gold.
- Over 80% of the oxide Inferred resources converted to Indicated.
- Exceptional drilling results including 71m at 1.86g/t gold and 57m at 2.48g/t gold.
- Significant exploration potential remains with 40km of shear zones yet to be drilled.
Resource Estimate Upgrade
Toubani Resources has successfully upgraded the Kobada Mineral Resource Estimate to a significant 2.0 million ounces (Moz) in the Indicated category, marking a 30% increase compared to the 2023 Mineral Resource Estimate (MRE). The shallow, free-dig oxide resources classified as Indicated have increased by 44% to 1.4Moz of contained gold, with the grade of Indicated resources rising by 10% to 0.87g/t gold.
Over 80% of the oxide Inferred resources targeted in the resource definition drill program have been converted to Indicated. These Indicated resources will underpin Ore Reserve studies as part of the Definitive Feasibility Study (DFS) Update, which is on track and due later this year.
Drilling Campaign Success
The mineral resource upgrade follows an exceptional resource definition drilling campaign in the quarter, delivering numerous compelling intercepts. Notable results include 71m at 1.86g/t gold from 79m, including 15m at 4.04g/t gold, and 57m at 2.48g/t gold from 85m, including 1m at 25.7g/t gold and 9m at 5.08g/t gold.
Other significant intercepts include 24m at 5.75g/t gold from 131m, including 2m at 57.4g/t gold, and 51m at 2.72g/t gold from 123m, with 16m at 1.45g/t gold from 176m. The presence of high-grade mineralisation in these areas underscores the potential for further resource expansion.
Exploration Potential
Significant exploration upside remains outside of the Kobada Mineral Resource, with approximately 40km of the 50km regional-scale shear zones yet to be drilled. Additionally, there is potential at depth at Kobada where drilling is currently limited.
Corporate Developments
To support Toubani's development strategy, the company has made changes to its Board of Directors, with Matt Wilcox joining as a Non-Executive Director and Scott Perry assuming the role of Non-Executive Chair. Additional study appointments have also been completed to strengthen the DFS owner's team.
Regulatory Stability
The State of Mali has adopted the Implementation Decree of the 2023 Mining Code, moving towards regulatory stability for the mining sector. This development is expected to facilitate investment and a return to normalcy in the country's mining operations.
The significant upgrade to the Kobada Mineral Resource Estimate is a positive development for Toubani Resources, potentially increasing the company's valuation and attractiveness to investors. The increase in Indicated resources and grade underscores the project's potential for economic extraction, which could positively impact the stock price.
Investor Reaction:
Analysts are likely to react positively to the substantial increase in the Indicated Mineral Resource Estimate and the high-grade drilling results. The adoption of the 2023 Mining Code in Mali is also seen as a positive step towards regulatory stability, which could enhance investor confidence in the region's mining sector.
Conclusion:
Investors should monitor the progress of the Definitive Feasibility Study Update and the ongoing exploration activities at Kobada. The significant resource upgrade and regulatory developments in Mali present a promising outlook for Toubani Resources. Staying informed on these updates will be crucial for making informed investment decisions.