Canadian miner Roscan to invest $219 million in Mali’s Kandiolé gold project  

Canadian miner Roscan Gold Corp. plans to invest $218.7 million to develop a new gold mine at its Kandiolé project in western Mali, according to a preliminary economic assessment released Monday. 

The study outlines a proposed operation that could produce about 834,858 ounces of gold over a 13-year mine life. Roscan estimates average annual output of roughly 92,786 ounces during the first four years. 

Based on a consensus gold price of $3,100 per ounce, the project carries an after-tax net present value of $498 million and an internal rate of return of 43%, the company said.

Roscan expects to recover its initial investment about 2.8 years after production begins, though it has yet to set a construction timeline.

Roscan seeks permit, funding for Kandiolé

Roscan said the assessment is an early but important step toward bringing Kandiolé into production. The company aims to secure a mining permit this year and begin talks with lenders and potential partners to finance construction. 

Several hurdles remain. The study is based on mineral resources, not proven reserves. Converting those resources into reserves through further drilling and technical work will be critical before the company can make a final investment decision. 

A definitive feasibility study is expected to follow. That review would provide a more detailed look at costs, engineering plans and economic returns. 

Nana Sangmuah, Roscan’s president and chief executive, said the current mine plan draws ore from only three of the six deposits identified on the property. That leaves room for additional drilling to expand the resource base and potentially extend the mine’s life. 

For Roscan, advancing Kandiolé is central to its future. The company does not yet operate a producing mine. Moving from explorer to producer would mark a significant shift for the Toronto-listed firm.

Mali revises mining code, boosts gold

The project comes as Mali looks to strengthen its position as one of Africa’s leading gold producers. Gold accounts for 76.5% of the country’s exports and 9.2% of gross domestic product, according to the Extractive Industries Transparency Initiative. 

In 2023, Mali adopted a new Mining Code aimed at increasing state revenue and local participation in the sector. Authorities have said they want a larger share of the benefits from the country’s mineral wealth. 

Kandiolé is one of several advanced projects in the country. Kobada, another gold development in southern Mali, is being advanced by Canada’s Toubani Resources and is expected to produce about 162,000 ounces a year over roughly nine years. 

Roscan Gold advances Kandiolé, Mali

Roscan Gold, listed on the TSX Venture Exchange under the symbol ROS, has built a land position in the Birimian greenstone belt of western Mali, a region known for its gold deposits. The company says it continues to seek additional permits as it expands its footprint in West Africa. 

Roscan’s management team is led by Nana Sangmuah, who brings over 20 years of experience in international mining and capital markets.

Previously, Sangmuah served as managing director of Equity Research for Metals and Mining at Clarus Securities Inc., where he helped attract institutional investment to West African mining companies and grew overall market activity. 

Sangmuah highlighted that the focus now is on meeting regulatory requirements and completing the technical work needed to bring Kandiolé to construction. “Our priority is to advance the project responsibly and create long-term value for Mali and our shareholders,” he said.