Announcement • May 14
Resolute Mining Limited Announces Scoping Study Results for Abc Project
Resolute Mining Limited announced the results of a Scoping Study for the ABC Project in Côte d'Ivoire based on the existing 2.16 Moz gold Mineral Resource Estimate published in 2021. The Study confirms the ABC Project's strong economic potential and its pathway to become Resolute's second operating gold mine in Côte d'Ivoire, supporting the Company's strategy to build a diversified, multi-asset gold platform. It outlines a robust, long-life operation with attractive economics and meaningful potential upside from further resource growth and exploration success. Resolute is accelerating step-out drilling at the Kona Central and Kona South deposits to unlock further resource growth and build on the Project's strong progress. To date, the Company has drilled over 25,000 m, with results expected to support an updated Mineral Resource Estimate in Second Half 2026. Strong production profile averaging approximately 141 koz per annum over a 12-year mine life, delivering total gold production of 1.7 Moz at a competitive life-of-mine all-in sustaining cost of USD 1,614/oz, supporting robust operating margins. Large-scale open pit mining operation underpinned by total mill feed of 82.8 Mt at 0.76g/t Au containing 2.0 Moz of gold, with a low average life-of-mine strip ratio of 1.82. Low-risk development pathway utilising a conventional 7.0 Mtpa carbon-in-leach processing plant with gold recoveries of 84% and further recovery optimisation potential during development. Strong early cash flow generation with average annual gold production of 163 koz over the first five years at an attractive all-in sustaining cost of USD 1,565/oz using a gold price assumption of USD 3,500/oz. Net present value at 5% discount rate of USD 1,200 million, Internal rate of return of 39%, 1.4-year payback at a gold price assumption of USD 3,500/oz. At USD 4,750/oz gold price the net present value at 5% increases to USD 2,300 million with an internal rate of return of 63% and payback period of under 1 year. Competitive capital cost estimate of USD 648 million. Average annual free cash flow and EBITDA of USD 262 million and USD 323 million respectively in first five years of production at USD 3,500/oz gold price. Based on drilling activities in 2026 mineralisation remains open at depth and along strike; drilling at Kona South extended mineralisation to the North and South, highlighting the potential for resource expansion. Updated Kona Central and Kona South Mineral Resource Estimate expected in Second Half 2026. Accelerate drilling efforts with a focus on infilling resource as well as resource expansion. Optimize metallurgical testwork to increase recovery rates of the deposits. Initiate ESIA and other required technical study work. Site investigations and permitting to target completion of a Definitive Feasibility Study in 2027. Based on potential size of the resource further work will be done to optimize the size of the processing plant in order to increase the ounce profile above 200 koz per annum for at least 10 years of mine life. The production target and forecast financial information in this announcement are conceptual in nature and are based entirely on Inferred Mineral Resources and there is no certainty that the outcomes will be realised. The Scoping Study was undertaken by MineScope Services along with input from Orelogy, Knight Piésold and ECG Engineering. The full Scoping Study can be found on the Resolute website on the Reports page. The ABC Project is located in northwest Côte d'Ivoire approximately 550km northwest of Abidjan and 460km west of the Doropo project. The ABC Project currently consists of four exploration permits - Faraka-Nafana, Kona, Windou and Gbemanzo - all of which are 100% owned by Resolute. The Scoping Study is based on the existing inferred Mineral Resource Estimate prepared by Centamin Plc (July 2021) which is located on the Kona exploration permit. The Mineral Resource Estimate comprises two deposits, Kona Central and Kona South, totalling 72 Mt at 0.93 g/t for 2.16 Moz Au (at a 0.5g/t cut-off). The inferred resource converts to an in situ production target of 82.8 Mt at 0.76 g/t Au containing 2.01 Moz. The Project will encompass an open pit mine, carbon-in-leach processing facility with a capacity of 7.0 Mtpa, water supply from known water supply schemes in the area, power from the Ivorian grid, tailings storage facility and related infrastructure. Gold production will average 163 koz per annum over the first five years of operations and 141 koz per annum over the 12-year life of mine. The Study demonstrates that the Project has the capacity to deliver robust returns at a base case price assumption of USD 3,500/oz. Project returns significantly improve at a price closer to spot of USD 4,750/oz with the net present value at 5% increasing to USD 2,300 million and internal rate of return to 63%. Key project operational and financial highlights are outlined below: Gold Price: USD 3,500/oz Units Value Mine Life Years 12 Total gold production koz 1,693 Upfront capital cost USD 648 million Life of Mine average: Gold production koz 141 Revenue USD 494 million EBITDA USD 276 million Free Cash Flow (post-tax) USD 210 million Cash cost USD/oz 1,524 All-in sustaining cost USD/oz 1,614 Project years 1 to 5: Gold production koz 163 Revenue USD 569 million EBITDA USD 323 million Free Cash Flow (post-tax) USD 262 million Cash cost USD/oz 1,493 All-in sustaining cost USD/oz 1,565 Pre-Tax Economics Net present value at 5% USD 1,624 million Internal rate of return 46% Post-Tax Economics Net present value at 5% USD 1,178 million Internal rate of return 39% Payback period (from first production) Years 1.4. In the first five years average annual gold production is 163 koz at an all-in sustaining cost of USD 1,565/oz. At the base case gold assumption of USD 3,500/oz and on a 100% basis this generates average annual free cash flow of USD 262 million and a payback period of 1.4 years. The post-tax net present value sensitivity comparing varying discount rate percentages and gold price is presented in Table 2. The base case result for the Project is highlighted in bold. 3,000 3,500 4,000 4,500 5,000 5% 749 1,178 1,607 2,036 2,465 7% 619 999 1,380 1,761 2,142 10% 460 782 1,103 1,425 1,747. The ABC Kona project is situated along the main Archean-Birimian Cratonic suture zone in western Côte d'Ivoire, specifically associated with the Sassandra Fault Zone. The principal mineralised feature identified through mapping and sampling is the Lolosso structure, a north-south striking mineralised zone interpreted as a western splay off the major transcurrent Sassandra Fault. The geological setting includes a narrow keel of later Birimian volcano-sediments entrapped within earlier Archean thrusted granite and gneissic sheets, providing a complex structural and lithological host for mineralisation.
