• Thor Explorations estimates capital costs of $254 million to build the Douta gold mine in Senegal.

• The project could produce 1 million ounces of gold over 12.6 years, starting in 2028.

• The pre-feasibility study shows a post-tax NPV of $633 million and an IRR of 61% at $3,500 gold.

In Senegal, junior miner Thor Explorations will require $254 million to build a new gold mine at its Douta project. The company disclosed this estimate in a pre-feasibility study published on Monday, January 26, which also set a target to start production by 2028.

Thor Explorations currently operates a single gold mine, Segilola in Nigeria. However, the company has stepped up efforts in recent months to advance Douta toward production. According to the study, the planned investment would support a mine capable of delivering 1 million ounces of gold over a 12.6-year life, representing average annual production of 82,000 ounces. Using a consensus gold price of $3,500 per ounce, the study reported a post-tax net present value of $633 million and an internal rate of return of 61%.

“We are delighted with the results of the Douta pre-feasibility study, which represents a major milestone in our strategy to become a multi-asset gold mining company. These results confirm that Douta is a high-quality, economically robust gold project with a short payback period,” said Segun Lawson, Chief Executive Officer of Thor Explorations.

The release of the study marks a decisive step in advancing Douta, as it confirms the project’s economic parameters for the first time. However, Thor Explorations still plans to continue discussions with the Senegalese government to finalize the mining convention, which would clear the way for the exploitation permit required to begin construction.

At the same time, the company plans to invest in additional exploration work to optimize Douta’s potential and possibly refine the current mine plan through a definitive feasibility study.

Completion of these steps would open the way to the final phases of the project, including financing arrangements. Thor plans to rely on its cash reserves and secure additional funding to advance the project. The development would also carry strategic importance for Senegal, as it would strengthen industrial gold output currently supported by the Sabodala-Massawa, Mako and Boto mines. Canada’s Fortuna Mining is also developing the Diamba Sud project in the country.

This article was initially published in French by Aurel Sèdjro Houenou

Adapted in English by Ange J.A. de BERRY QUENUM