The pre-feasibility study (PFS) conducted on Predictive Discovery’s Bankan project, situated in Guinea, heralds it as one of West Africa’s most significant discoveries, potentially evolving into a tier-one mine. Managing Director Andrew Pardey underscores the project’s promising prospects, projecting an annual gold production of approximately 269,000 ounces over a 12-year mine lifespan, with an all-in sustaining cost (AISC) of $1,130 per ounce.
With an estimated capital expenditure of $456 million for mine development, Pardey emphasizes the transformative impact of the Bankan gold project on the company’s portfolio. Notably, the PFS incorporates a maiden ore reserve estimate of 3.05 million ounces, signifying a substantial conversion of the indicated mineral resource.
Financially, the project demonstrates resilience, boasting a post-tax net present value (NPV) of nearly $1.4 billion and an internal rate of return (IRR) of 42% at prevailing gold prices. Even under conservative assumptions, with a base case gold price assumption of $1,800 per ounce, the project remains robust, yielding an NPV of $668 million and an IRR of 25%. Pardey highlights the competitive upfront capital requirement of $456 million and the favorable AISC of $1,130 per ounce, indicative of high profit margins.
Despite these impressive metrics, Pardey identifies untapped potential within the project, citing various avenues for improvement in technical and financial outcomes. Anticipating the definitive feasibility study, Predictive Discovery aims to capitalize on opportunities for resource expansion and mine life extension. Pardey underscores the company’s confidence in augmenting the resource base and extending the project’s longevity, emphasizing the ongoing pursuit of near-resource and regional exploration initiatives.
As Predictive Discovery navigates the next phase of project development, the Bankan project emerges as a beacon of promise, poised to redefine the gold mining sector in West Africa. With meticulous planning and strategic execution, the company aims to unlock the full potential of Bankan, propelling it towards tier-one status and solidifying its position as a key player in the region’s mining sector.
