Unearthing Mali's Gold: The Kobada Gold Project Journey with Toubani Resources' CEO Phil Russo

Unlock the secrets of gold exploration as Phil Russo, CEO of Toubani Resources, steps into our podcast spotlight to reveal the golden potential of the Kobada Gold Project in Mali. Phil comes armed with the excitement of recent drilling successes and the promising future of a project that's not only rich in resources but also in opportunities. Join us for a conversation that shines with the luminosity of 2.4 million ounces of gold, and the strategic savvy it takes to bring such a treasure to market.

Embark on a journey beneath the surface of the West African soil with us, where Phil details the allure of the soft rock free-dig oxide ore and the significant milestones Toubani Resources has reached on their path to an updated definitive feasibility study. With a blend of expertise and on-the-ground experiences, Phil navigates the challenges and capitalizes on the strengths of operating in the gold-fertile landscape of Mali. For anyone fascinated by the intricacies of mining operations and the thrill of discovery, this episode is a glittering trove of industry insights and prospects.

Transcript

Andrew Musgrave: 0:02

Welcome to ASX Briefs. I'm your host, Andrew Musgrave, and today we're diving into the exciting world of gold exploration and development with Phil Russo, the CEO of Toubani Resources, who are making significant strides in the gold-rich Birimian greenstone belt of Mali in West Africa. Phil, thanks for joining us today and welcome to the ASX Briefs podcast.

Phil Russo: 0:24

Great to be here, Andrew.

Andrew Musgrave: 0:24

All right, just to kick things off if you can just provide a brief overview of Toubani and your primary focus on the

Phil Russo: 0:34

Yeah, happy to. So we're 2.4 million ounces in southern Mali, which is the third biggest gold producing country in the region there, which is the third biggest gold-producing country in the region there, and what makes Toubani's asset of note is the abundance of this soft rock free-dig oxide oil that begins at surface. So that's the focus of the project, as we're now at a really critical stage where we're doing a feasibility update. But it's the oxides which makes Toubani different from the next project.

Andrew Musgrave: 1:11

Now you've had some positive company announcements in the last month or so and you've recently reported some impressive drilling results at Kobada, including high-grade oxide fines. So if you can just share a little bit more about these discoveries and what they mean for the project, so if you can just share a little bit more about these discoveries and what they mean for the project.

Phil Russo: 1:28

Yeah, absolutely so. It's all part of our strategy to de-risk Kobada towards this feasibility study. And you know these results were highly targeted as part of our infill program because we have one big four and a half kilometre long pit here and it is just a great reminder of the potential of this ore body. And we've only been drilling really the top 150 metres of the deposit and look at the results that we're getting. So you know, with these projects in Africa you start off on the easy ounces here and it gives the project its best chance to become a mine. So I would just point out that we've only been drilling sort of four and a half, five kilometres of 50 kilometres of shear zones we have on the property.

Phil Russo: 2:18

So you know, the more you drill, the more gold you find here at Kobada.

Andrew Musgrave: 2:22

Yeah, and you touched on the definitive feasibility study and you're working towards an updated DFS for Kobada. Can you just talk us through the key components of the study and when we can expect that to be completed?

Phil Russo: 2:34

Yeah, so we just recently raised $4 million, which is really well supported in the market, and we're on course now, in really the near term we're aiming towards the end of the third quarter to release this feasibility study update for Kobada, which is hoping to show we believe it will show a step change versus the 2021 study in terms of production, a really competitive cost structure, given the soft door I've been talking about for an extended mine life, for a moderate capex, and you put all those ingredients together in a model and you'll find that the economics are going to be pretty compelling for the region, which is what you need to do when you're in West Africa, and that's what we think we're on course to deliver.

Andrew Musgrave: 3:23

And I guess with any mining operation and bringing your mine to life, you've got your operational strategies, but you've also got your challenges. So operating in Mali obviously presents some unique challenges but also opportunities. So how are you navigating those and what strategies are you employing to ensure successful operations?

Phil Russo: 3:41

Oh, absolutely employing to ensure successful operations? Oh, absolutely so. Look, I'll look at it this way. For investors or people listening in here, it's that you know it's a risk-reward basis. The reward on offer here with Toubani and our project is quite significant and at today's levels you're really compensated. Now you know, my principal challenge is navigating through West Africa, and all of the countries of Africa have got challenges. But there's some great projects there and there's an audience of capital and corporates that are looking for projects like ours in the market, and so when I operate in Mali, I ask myself two questions Are we supported locally and does the government want a mining industry? And you can put a resounding tick against both of those. In Mali, the mining industry has been there for decades, the institutions are quite strong and locally we've got great support. So the rest are just challenges that we have to navigate our way through. As investors, you're compensated, but at the end of the day we've got a hard asset worth a lot more than our current market cap.

Andrew Musgrave: 4:53

Yeah, and, as you say, there's obviously plenty of opportunities in Africa and there has been for a long period of time. So, if we just look ahead now, what's the sort of near-term vision for the company and what can the market expect to hear from you over the remainder of 2024?

Phil Russo: 5:09

Oh look, the next six months are going to be really busy. It's a great time to be looking at Toubani. We've got further drill results to release in the coming weeks and month and then we'll roll into a resource upgrade. We've got other corporate items that we will update the market on accordingly, as we lead into that DFS in September, I think you're going to see some positive news for Mali in the coming months as well, as that country sort of comes back to life and we'll deliver that study, like I said. And so, yeah, the next six months are really busy. Lots of catalysts, lots of news for it.

Andrew Musgrave: 5:50

Well, there's no doubt there's been plenty of focus on gold as a commodity throughout 2024, and I'm sure that will continue. So thanks for your time today, Phil, and we wish you all the best and look forward to getting further updates from you in the coming months.

Phil Russo: 6:03

Thanks for having us.

Andrew Musgrave: 6:06

That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.