Sadiola, MALI
LARGE-SCALE, OPEN PIT MINE WITH SIGNIFICANT PRODUCTION GROWTH
LONG MINE LIFE WITH INCREASING RETURNS
- Status: Production
- Production: 175 koz (2022
- Mineral Reserves: 7.3 Moz (2022)
- Acquisition Date: 2021
- Reserve Grade: 1.51 g/t
- Life of Mine: 19+ years
- Expansion Capex: ~US$400million
The Sadiola Gold Project is a large-scale open pit mine located in Western Mali, 80 km south of the regional capital of Kayes.
With a production history of 8.3 Moz over 25 years, Allied consolidated the previous JV structure in 2020 to gain 80% ownership of the project.
Since its acquisition, Allied has restarted mining and carried out expansion feasibility studies to increase production to 300koz over 19 years at an AISC of below $1000/oz. Further to this, the company has added 3.3 Moz to the Mineral Reserves, including additional oxide ore within existing pits that can be processed via the existing 5Mtpa plant to produce 175 to 200 koz/y. An optimization study has been carried out in Q1 2023 to meaningfully increase metallurgical recovery.
In 2023, Allied is evaluating a phased expansion approach to progressively expand the project’s production profile whilst lowering costs and optimizing operations. The plan targets ~200 koz/y over a 6 year period, before Diba project contributions.
In Q3, 2023, Allied announced the acquisition of the Diba Project which is located 15 kilometres south of the Sadiola processing plant, adjacent to the Sadiola Large Scale Mining License, creating the opportunity to leverage substantial synergies and generate significant value in the short term. Allied estimates that there is the potential of approximately 200,000 ounces of gold readily available in the oxide and transitional categories which are targeted to be added to the near-term Sadiola mine plan after completing delineation drilling and studies.
Operating in Mali - A Long-Standing Mining Jurisdiction
The Sadiola Gold Mine is located 400km northwest of the capital city, Bamako and 70 km to the south of the regional capital of Kayes in the western part of the Republic of Mali, West Africa.
A landlocked country in West Africa, Mali is the 8th largest country by area on the continent, with a population of only 19 million as at 2023. The economy is largely dependent on agriculture and mining, especially that of gold mining, so much so that it ranks as the third largest gold miner in Africa and fifteenth worldwide as at 2023.
A globally significant, long-standing and stable mining jurisdiction, mining in the country is backed by strong government support and an abundance of local labour and proximity to pre-existing infrastructure.
