Modern Mining June 2023

GOLD

Akobo Minerals delivers first gold, targets 1 moz

Gold miner Akobo Minerals recently shifted gears, making the jump to become one of Ethiopia’s latest precious metals producers. The new kid on the mining block has its eye firmly set on becoming a million-ounce producer, CEO Jørgen Evjen tells Modern Mining . By Nelendhre Moodley .

“ T his is a defining step in our ambition to develop a million-ounce world class deposit. Importantly, it is the start of income for the company after many years of operational costs as we developed our project,” says Evjen. The company’s flagship asset is the Segele gold deposit, located in southwestern Ethiopia, a prolific area with extensive alluvial gold production. The total mineral resource for the Segele mine is pegged at 69 000 oz, with an estimated 22.7 grams per ton extraction rate of gold. Speaking of the monumental occasion of deliv ering first gold, Evjen says that it is a significant marker for investors and employees that the goal set out over a decade ago, has been realised. Though produc

taxes, and royalties for both local communities and the region. Evjen explains that “Income from our flagship asset will provide an important contribution to the country going forward. It also means a lot for the Ethiopian mining industry – Akobo is the second commercial underground gold mine since Legademi in 1994”. He adds, “We have worked closely with the authorities at federal and regional level to make this happen. Ethiopia has big ambitions for its min ing industry, and we are a showcase to prove it can be done. Moreover, the Segele project provides the right directives to attract further international explor ers and miners to Ethiopia.” Path to production According to Evjen, 2022 was an important year for the explorer as it focused on getting the Segele mine up and running with mining contractor, IW Mining, on-site to break ground for the first time in October. Akobo Minerals decided early on that it would work with two partners for the underground min ing and processing activities. Solo Resources was chosen to handle the process plant design and fabri cation, while IW Mining was selected to develop and operate the mine. The IW Mining team commenced with develop ments on two smaller entries to the gold ore as well as establishing the main incline shaft. “We started by excavating the incline shaft from which ore from the deeper parts of the ore body will be extracted. Towards the end of the quarter, the mining team took

Above: CEO Jørgen Evjen (centre) receives the ESG Explorer and Developer of the Year award.

Centre: Aerial view of the Akobo licence area.

Core drilling sample highlighting the presence of gold.

tion is starting slowly, Segele mine will, over the next few months, ramp-up

production to gen erate up to $50 million of free cash flow over the next two years. The cash gener ated at Segele will help the company fund ongo ing exploration. The project also generates economic activity,

12  MODERN MINING  June 2023