Cora Gold ropes in Digby Wells for next stage at Sanankoro

The AIM-traded firm said it was continuing to advance Sanankoro, which has a positive scoping study completed on it with an 84% internal rate of return at a $1,400 gold price.

It said it was initially focused on resource growth and then, if successful, the delivery of the definitive feasibility study (DFS) before the end of 2021.

The board said that, due to that accelerated strategy, it appointed Digby Wells to conduct an ESIA in accordance with the International Finance Corporation performance standards for the project.

It said the collection of baseline data for the ESIA had already started.

Deliverables would include specialist studies, ranging from ecological, water and social studies , a conceptual closure and rehabilitation plan, a stakeholder engagement process, a resettlement policy framework and a community development plan.

Cora previously worked with Digby Wells to complete an initial environmental and social screening study in 2019, as part of the project's scoping study.

That study showed Sanankoro's potential to be a “highly profitable” standalone oxide mine, delivering a high internal rate of return and a short capital expenditure payback period.

“As one of the largest environmental consulting firms in Africa focused on the resources sector, with extensive in-house expertise in the environmental and social field, we are delighted to be working with the Digby Wells team again,” said chief executive officer Bert Monro.

“The ESIA is critical to the success of the DFS, which we are focussed on completing before the end of next year, following further exploration in 2020, and, as we look further ahead to transitioning from explorer to developer, will support our future exploitation permit application.

“We look forward to providing further updates on our progress in the future.”

At 1532 BST, shares in Cora Gold were down 4.09% at 5.28p.