Resolute Mining's Mako Gold Mine update

Resolute Mining, an Australian company, operates the Mako Gold Mine in Senegal, one of the few industrial mines contributing to gold production in the country. Following the cessation of open-pit mining in June 2025 due to the exhaustion of the current pit's reserves, the site has been processing already extracted ore, an activity expected to continue until the end of 2027.

Funding for mine extension project

In its third-quarter report published on October 29, the company announced a $2.1 million allocation to the Mako Life Extension Project (MLEP), aimed at extending the mine's operations by five to ten years. The MLEP involves the development of two satellite deposits, Tomboronkoto and Bantaco, which together hold more than 800,000 ounces of gold resources.

Planned timeline for mine extension

Tomboronkoto has an initial reserve estimate of 348,000 ounces. According to the planned schedule, Bantaco is expected to be developed first, with operations starting in the third quarter of 2027 and ending by the end of 2028. Tomboronkoto would then take over, with operations beginning in January 2029.

Projected gold production and costs

Resolute estimates that this would maintain an average annual production of 75,000 to 85,000 ounces of gold for about seven years, contrasting with the expected decline in 2026, when production is projected to range between 55,000 and 65,000 ounces, compared to 100,895 ounces in 2025. The realization of the MLEP would require between $125 million and $150 million in pre-production costs, with the majority of these expenditures planned for the second half of 2027.

Company's plans and preparations

In the meantime, the company plans to allocate between $10 million and $15 million to the project in 2026. Resolute Mining also indicated that it is evaluating the results of tenders related to mining works, internal ore transportation, and the construction of a road intended to transport production from the new deposits to the Mako plant.

Mine extension's strategic importance

Extending Mako would allow Resolute Mining to maintain the asset's contribution to its African portfolio, which includes the Syama gold mine in Mali and the Doropo gold project under construction in Côte d'Ivoire. The extension would also allow Senegal to maintain a source of gold production for several additional years, along with associated economic benefits such as tax revenues, employment, subcontracting contracts, and contributions to the development of surrounding communities.

Conditions for mine extension

The realization of the extension remains conditional on obtaining mining permits, environmental and social approvals, and finalizing agreements regarding the resettlement of communities living near the affected areas. The mine currently employs approximately 250 direct workers and 289 contractual workers, with about 96% of the workforce being nationals.