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estimates – and in some cases updates – for the Area A, Area
An aerial view of the Diamba Sud
exploration camp and tenement base, with D, Karakara and Bougouda discoveries, as well as published
Barrick’s Gountoko 5.5 moz gold mine in the first set of financial metrics for a potential 2 mtpa operation
the background at Diamba Sud.
The October scoping study forecast production of 614,000oz
over six years at an average AISC of $US784/oz, including
“Senegal has now developed two 243,000oz at AISC of $US547/oz across the first two years,
modern gold mines, both of those generating post-tax NPV of $US203 million and IRR of 47%,
have gone through the licensing based on a $US1,600/oz gold price.
process and they’re now both owned Capex is estimated at $US183 million, with payback occurring
by two very well-known companies in just 17 months after commercial production is achieved.
Endeavour and Resolute. And then
Chesser expected the project economics would be further
there’s the massive investment in the
enhanced when the Karakara maiden resource and a revised
country by Woodside on the oil and
estimate for Area D are factored into the updated scoping
gas side of things.
study which was due at the time of print.
“If you look across the board at all the
Grove said the company was focused on converting as much
country risks for West Africa, Senegal
resource into mineable ounces.
is one of the best, if not the best. I think
“My view has always been how much converts into what you
the only issue from a gold exploration
can potentially mine is the real key, and we’ve shown that a
perspective is that it’s largely limited to
fairly large proportion of our resources can be converted into a
that small wedge on the eastern side
mining inventory in the future,” he said.
of Senegal. That’s probably why a lot
of attention goes into Mali and Ivory “The project economics are very strong and actually compare
Coast, or even Guinea and Ghana, very nicely to a number of those small scale projects which
because they’ve got those large, have been developed successfully in West Africa, like
prospective land packages which just Sissingue for Perseus or Roxgold’s [now Fortuna Silver Mines
don’t exist in Senegal, unfortunately.” Inc] Yaramoko mine.
Diamba Sud (current resource of “It’s all about economics in the end, it’s about how fast you can
17.2mt @ 1.7 g/t gold for 951,000oz) is proximal to several pay back the capital and how much margin you make. Then the
major gold mines, including Barrick Gold Corp’s Luolo (12.5 life will come because there’s exploration and consolidation
moz) and Gountoko (5.5 moz) operations across the border in and other things which inevitably follow.”
Mali. Barrick and IAMGold Corp are also actively exploring to Chesser is hoping to outline a 10-year mine plan for Diamba
the east and south of Chesser’s ground. Sud by the time the DFS is rolled out mid-year, paving the way
Since the appointment of Connelly and Grove to the key for development of Senegal’s third operating gold mine.
board posts in 2020, Chesser has unveiled maiden resource Although there is still plenty of work to do to firm up the project’s

Andrew Grove

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