
Turaco Gold's Afema PFS in Côte d'Ivoire shows 200koz/yr over 10.3 years, US$410m capex, 60% IRR at US$3k/oz. Definitive study due 2027, first gold 2029.
Turaco Gold (ASX: TCG) has wrapped up a pre-feasibility study for its Afema gold project in south-east Côte d'Ivoire. The numbers support a large open-pit operation. Average annual production sits at 200,000 ounces over 10.3 years. First-year output targets 230,000 ounces after a six-month processing ramp-up. The first seven years average 215,000 ounces a year.
The study also delivered a maiden JORC probable ore reserve: 55.1 million tonnes grading 1.1 grams per tonne for 1.91 million ounces of contained gold. That reserve sits inside a larger mineral resource estimate of 116.7 million tonnes at 1.2 g/t for 4.65 million ounces. The Asupiri deposit drove the update. Indicated resources there rose 27% to 840,000 ounces after infill drilling. Grade and tonnage held up well during the conversion.
Development capital is US$410 million. That includes mine establishment costs and a US$24 million contingency. Mining would start six months before first production to build a stockpile. Pre-production spending adds US$32 million.
The economics change sharply with gold prices. At US$2,000 an ounce, the study uses a conservative pricing assumption. Life-of-mine cash operating cost is US$1,268 an ounce. All-in sustaining cost runs US$1,508 an ounce. At US$3,000 an ounce, the post-tax net present value at a 5% discount rate hits US$1.486 billion. The internal rate of return reaches 60%. Payback is 17 months. At US$3,500 an ounce, the NPV swells to US$2.102 billion and payback falls to 13 months. At US$4,000 an ounce, NPV reaches US$2.717 billion and payback drops to 10 months.
Managing director Justin Tremain described the study as a major step since Turaco acquired the project two years ago. "The study demonstrates the Afema project to be a plus 200,000oz per annum gold development in Côte d'Ivoire with total gold production in excess of 2Moz over more than 10 years, with exceptional economics for the benefit of all stakeholders," he said. "There are very few gold development projects in West Africa of this scale [and], given recent resource growth, it is very easy to see Afema increasing in scale and mine life."
The current mineral resource remains open at depth and along strike on all deposits. The PFS excluded mineralization at Toilesso, Niamienlessa, and Baffia – all within 10 kilometres of the proposed plant site. That gives room for expansion in later studies.
Execution risk sits alongside the high-level numbers. A US$410 million capital cost in Côte d'Ivoire demands careful project management. The 2029 production timeline depends on completing a definitive study, securing permits, and arranging construction financing. Turaco's A$60 million cash position at 31 March 2026 covers the study phase. Construction funding – whether debt, equity, or a joint venture – is not yet in place.
The gold profile shapes the project's viability as much as Turaco's execution. Current spot near US$3,000 an ounce supports the base case IRR. A sustained drop below that level would compress payback and NPV. A continued rally would widen the margin further.
Turaco plans to deliver a definitive study in the second quarter of calendar 2027. First gold production is targeted for 2029.
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