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(Sharecast News) - Cora Gold announced on Tuesday that it has appointed Senet, a subsidiary of DRA Global, to lead an updated definitive feasibility study (DFS) at its flagship Sanankoro gold project in southern Mali, reflecting recent resource upgrades and favourable market conditions.
The AIM-traded firm said the updated DFS would incorporate the enhanced mineral resource estimate of over one million ounces announced in January, as well as ongoing processing optimisation work.
It said it expected the updated study to significantly improve Sanankoro's projected cash flows, given the current record gold price environment of around $3,000 per ounce.
The company's 2022 definitive feasibility study had assumed a gold price of $1,750 per ounce.
Cora said the updated study would form a key part of its strategy to maximise the project's development potential and ensure operational readiness.
In parallel with the DFS work, the company said it was progressing permitting and financing initiatives with the aim of accelerating the transition to mine construction.
"Given the significant rise in the gold price since our November 2022 definitive feasibility study, which showed a 53% internal rate of return at a gold price of $1,750 per ounce, and a subsequent increase to a one-million-plus ounce mineral resource estimate in January 2025, we are confident that the updated reserves and DFS will significantly bolster the value of Sanankoro as we advance towards mine construction," said chief executive officer Bert Monro.
"We are pleased to be having regular positive engagement with the government of Mali on our mine permit application and look forward to providing further updates on this progress in due course."
At 0900 BST, shares in Cora Gold were down 2.61% at 5.6p.
Reporting by Josh White for Sharecast.com.
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