• Roscan Gold plans $218.7 million investment for Kandiolé mine in Mali
• Project could produce 834,858 ounces over 13-year mine life
• Company seeks permits, financing to advance toward construction

Canadian miner Roscan Gold plans an initial investment of $218.7 million to build a new gold mine at its Kandiolé project in Mali, according to a preliminary economic assessment (PEA) published by the company on Monday, March 2. The proposed mining complex could produce 834,858 ounces of gold over an estimated mine life of about 13 years.

The investment is expected to be recovered 2.8 years after production begins. While the development timeline has yet to be detailed, Roscan forecasts average annual output of 92,786 ounces during the first four years of operations. Based on a consensus gold price of $3,100 per ounce, the project shows an after-tax net present value (NPV) of $498 million and an internal rate of return (IRR) of 43%.

Roscan said the PEA marks a key step in advancing the development of Kandiolé. The company expects several milestones this year, including securing a mining permit and starting discussions to mobilize project financing. The goal is to meet the conditions required to begin construction.

Further growth potential

Roscan aims to move to the next stage of developing the Kandiolé project by 2026. However, several conditions still need to be met before confirming the viability of commercial production. The PEA is based solely on mineral resources, and their conversion into proven reserves will be essential to strengthen the project’s technical and economic credibility and pave the way for an investment decision.

In this context, additional studies, notably a definitive feasibility study (DFS), will represent a key step. Meanwhile, the company highlights the project’s expansion potential. Nana Sangmuah, president of Roscan, noted that most of the ore expected to feed the future processing plant comes from only three of the six deposits included in the resource estimate, suggesting significant potential for growth through further drilling.

Advancing Kandiolé to the construction stage will be crucial for Roscan, which currently has no producing assets. Market conditions appear favorable as gold prices remain on an upward trend after rising more than 60% in 2025.

For Mali, Kandiolé could also have strategic importance in the medium and long term, as authorities seek to increase the economic benefits derived from the gold sector. This ambition has led to several reforms in recent years, including the adoption of a new Mining Code in 2023.

Gold remains the backbone of Mali’s extractive sector, accounting for 76.5% of national exports and 9.2% of GDP in 2022, according to the Extractive Industries Transparency Initiative (EITI). Alongside Kandiolé, Mali hosts other advanced gold projects, including Kobada, where Canada’s Toubani Resources plans to develop a mine capable of producing 162,000 ounces of gold per year over an estimated 9.2-year mine life.

Aurel Sèdjro Houenou