Armadale Capital (LON:ACP) still expects to finalise its definitive feasibility study for the Mpokoto gold project in the DRC by the year–end.
Results from metallurgical testwork for the two phased processing routes planned to recover gold from the ore at the site are due shortly.
These will feed into the DFS, which is key to Armadale receiving US$20mln in project financing from Africa Mining Contracting Services to build and operate the mine.
“We believe the results from this will favourably impact the projected economics of the project, which are already extremely competitive with estimated cash costs of US$647/oz and an NPV of US$32.3mln," said Andrew Tunks, a director.
Soil sampling at Mpokoto had also identified a number of new anomalies, he said.
It is in talks over a strategic alliance with Alpha Drilling, a local company that will supply two diamond drill rigs for exploration over the wider Kisenge licence area, which includes Mpokoto.
Tunks said the soil samples indicated there was the significant potential to grow the oxide resource at Mpokoto.
The deal will Alpha allows it permanent access to two drill rigs at very competitive rates, which importantly can be operated throughout the wet season, he added.
Armadale’s exploration target is expanded resource base of more than 1 million ounces of gold at Mpokoto compared to a resource of 678,000oz currently.