– Unveils accelerated mine development plan
Oslo, Norway – Akobo Minerals AB, a Scandinavian-based Ethiopian gold exploration and mining company, today provides an operational update for December and the fourth quarter of 2024, while introducing a new mine development plan designed to accelerate production.
Q4 2024 highlights
- Robust gold production: Approximately 15 kg of gold produced during Q4 2024, marking a significant milestone as full-scale operations commenced. This production was primarily achieved from the mine’s development activities rather than direct mining of the ore body. Encouragingly, initial results confirm that the gold is located where it is expected to be, validating the geological model and supporting confidence in future mining operations.
- December production: 2.3 kg of gold smelted to date, with total December production expected to reach 3 kg after final smelting. Production in December was temporarily impacted by a safety-related closure of the Western Winze, which has now resumed operations.
- First revenue-generating quarter: After 15 years of development, Akobo has achieved its first quarter with recorded revenue, covering the majority of the company’s operational expenses. This marks a transformative shift from the project phase into steady gold production.
Operational progress
- Eastern winze: Development is advancing rapidly toward the next, lower production level; level 575 which targets Stope 01, the highest-grade area of the Segele deposit. Production from the Eastern Winze is expected to begin once this development is completed by the end of January 2025.
- Western winze: Operations resumed following a temporary closure for safety enhancements. The Western Winze is already within the ore body, with production now focused on extracting high-grade ore. No further development is planned for this winze.
- January and February outlook: Lower production is expected in January due to the focus on Eastern Winze development, and safety enhancement in Western winze first part of January. Production is projected to increase in February as both winzes contribute to output.
New mine development plan
To accelerate production and commission the full plant, including the Carbon-in-Leach (CIL) system, Akobo has developed a three-phased mine development plan in collaboration with Sutton Global. This plan is designed to substantially increase ore production and enhance operational efficiency.
- Phase 1: Increase production from existing winzes while optimizing operations.
- Phase 2: Construct a vertical shaft to enable substantial increases in ore tonnage and production capacity. During this phase, the full CIL plant will also be commissioned, targeting gold recovery rates above 90%. The vertical shaft will provide access to the Indicated Resource of 41,000 ounces at an average grade of 40.6 g/t.
- Phase 3: Resume incline shaft development to access deeper sections of the ore body and facilitate underground drilling for further exploration once the vertical shaft is operational.
Vertical shaft construction
Civil work on the vertical shaft will commence in January 2025, with completion anticipated within 3-5 months. The shaft will be located close to the ore body, allowing phased development to efficiently and safely access different levels of the deposit. Vertical shaft sinking is a globally recognized, cost-effective, and reliable method that will significantly enhance production capacity, enabling the processing of several thousand tons of ore per month compared to the current capacity of several hundred tons per month.
Exploration update
Exploration drilling resumed at West Segele in December, with results expected to provide further insights into the deposit’s potential. Additional updates will follow as data becomes available.
Financial update
The Company is actively pursuing financial restructuring initiatives to strengthen its balance sheet. These efforts aim to support ongoing operations, infrastructure development, and production expansion, ensuring a stable foundation for future growth.
