Africa’s Next Gold Mines
Plenty of development underway
Despite heightened sovereign risk in certain countries, Africa remains an active place for new gold mine developments.
New developments since the start of the decade have included Endeavour Mining’s (LSE/TSX: EDV) Lafigué in Côte d’Ivoire and Sabodala-Massawa in Senegal, Perseus Mining’s (ASX: PRU) Yaoure in Côte d’Ivoire, West African Resources’ (ASX: WAF) Sanbrado and Kiaka mines in Burkina Faso, Shandong Gold’s (SSE: 600547) Namdini in Ghana, Fortuna Mining Corp’s (TSX: FVI) Séguéla in Côte d’Ivoire, Orezone’s (TSX/ASX: ORE) Bomboré in Burkina Faso, Predictive Discovery’s (ASX: PDI) Kiniero in Guinea and Zhaojin Mining Industry Co’s (HKEX: 1818) Abujar in Côte d’Ivoire.
A June 2025 report from SCP Resource Finance described West Africa as the most dynamic region over the past 15 years for gold discoveries, new mine developments and corporate activity.
SCP said the recent mine builds had outpaced discoveries over the past 10 years and had cleared two generations of projects from the pipeline.
“We think projects that can start building in the 2026-2028 window are in the sweet spot: we think nearly all the Africa focused producers will be or are actively looking for projects within this window, and nearly all of them have built mines recently, thus are not afraid of a buy and build,” analyst Justin Chan said at the time.
There are a handful of new African gold mines under construction and several rapidly advancing through the pipeline
Under construction
Koné
Montage Gold Corp (TSX: MAU) is progressing the construction of its 8.3 million ounce Koné project in Côte d’Ivoire.
The US$885 million Koné project is forecast to produce 301,000 ounces of gold per annum at all-in sustaining costs of US$1195 an ounce in the first 10 years of a 16-year mine life.
Based on a US$4000/oz gold price, the 2024 updated feasibility study returned a post-tax net present value (5% discount rate) of US$4.8 billion and internal rate of return of 93.9%.
As of March 31, over 10.4 million hours had been worked on site by more than 3500 employees and contractors.
The company had spent US$636.5 million of the budget.
Earlier this week, Montage confirmed that Koné remained on budget and ahead of schedule with the first gold pour targeted for late in the December 2026 quarter.
Twin Hills
Twin Hills in Namibia is being developed by Shanjin International Gold Co (SZ: 000975) following its C$368 million of Osino Resources in 2024.
According to the 2023 definitive feasibility study, the project has capital costs of US$475 million and is expected to produce 162,000ozpa of gold over 13 years.
At a gold price of US$1950/oz, the project has a post-tax NPV5 of US$656 million, IRR of 36% and a payback period of 1.9 years.
Post-tax life-of-mine free cashflow was forecast at US$958 million.
The project started construction in September 2025, with first gold expected in the first quarter of 2027.
It will be Namibia’s third gold mine.
Nyanzaga
Perseus’ Nyanzaga project represents the first major gold mine development in Tanzania in 17 years.
A former Barrick project, Perseus acquired Nyanzaga via the A$276 million takeover of OreCorp in 2024.
The company wasted no time in kicking off the US$523 million development, with 48% completion as of the end of March with first gold expected in January 2027.
The project will then ramp up to 200,000ozpa from the 2028 financial year until FY41 at life-of-mine all-in-costs of US$1621/oz.
Nyanzaga has a post-tax NPV10 of US$864 million and IRR of 28.8%, based on a US$3000/oz gold price.
The addition of the mine will push Perseus’ group production profile to as high as 630,000oz of gold in FY29.
Kurmuk
Pre-commissioning activities at Allied Gold Corporation’s (TSX: AAUC) Kurmuk gold project in Ethiopia began in the second quarter, with first gold expected in mid-2026.
Following start-up, Kurmuk is expected to produce an average of 290,000ozpa of gold during the first four years and 240,000ozpa over the life of mine at AISC of US$950/oz.
Financial modelling in 2022 showed an after-tax NPV5 of US$548 million with an IRR of 25% at a gold price of US$1568/oz.
The project remains on schedule and within its US$717 million budget.
Allied, which is subject to a C$5.5 billion cash takeover offer from Zijin Gold International Company (HK: 2259), reported this month that the project was meeting key execution milestones.
Doropo
In March, Resolute Mining (ASX/LSE: RSG) made a final investment decision for its Doropo project in Côte d’Ivoire.
Capital costs are US$516 million for a 13-year operation that will produce 204,000ozpa of gold at AISC of US$1360/oz over the first five years, generating EBITDA of US$554 million and post-tax free cashflow of US$419 million.
Average life-of-mine production is estimated at 169,000ozpa at AISC of US$1360/oz.
At a US$4000/oz gold price, Doropo has a post-tax NPV5 of US$2.5 billion, IRR of 72% and a payback period of just over a year.
First gold is expected in mid-2028.
Baomahun
The Baomahun gold project in Sierra Leone is being developed by private company FG Gold and is set to be the country’s first large-scale gold mine.
The 5.8Moz project is set to produce 184,000ozpa of gold in the first five years of its life.
While the timing of first gold remains unclear, in December, FG announced that it had achieved financial close and the first drawdown on its US$330 million senior debt financing with Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank), completing the project’s funding.
The senior facility complemented AFC’s initial US$100 million investment in gold streaming and mezzanine commitments.
Kobada
Toubani Resources (ASX: TRE) broke ground on the US$216 million Kobada project in Mali in March.
It comes after the company agreed terms with the Malian government in January and secured US$83.5 million in debt facilities from Coris Bank International.
Toubani earlier secured an US$80.0 million gold streaming deal with Eagle Eye Assets.
The company is targeting first gold in the third quarter of 2027 with Kobada to ramp up to produce 162,000ozpa at AISC of US$1317/oz.
At US$3000/oz, the project generates a post-tax NPV8 of US$951 million, an IRR of 79% and a payback period of 1.25 years.
Average annual operating cashflow is forecast to be US$211 million.
Tulu Kapi
KEFI Gold and Copper (AIM: KEFI) recently started construction of its 86%-owned Tulu Kapi gold project in Ethiopia after the company secured US$355 million in funding.
Production is expected to average 166,000ozpa of gold at AISC of around US$1200/oz from 2028.
Based on gold prices of US$3000-5000/oz, the project is forecast to generate average EBITDA of around US$355-697 million per annum over the first three years of production.
Total net cashflow over seven years is estimated at US$1.8-3.4 billion at gold prices of US$3000-5000/oz.
This week, KEFI signed the project’s largest operational contract, the mining services agreement, with BCM Group for the provision of services valued at more than US$400 million over the initial nine-year mine life.
Approaching FID
Bankan
The exploitation permit for Predictive Discovery’s Bankan project in Guinea is said to be imminent, which will pave the way for a final investment decision.
Once received, the US$463 million project will have a 24-month construction period.
Bankan is expected to produce around 250,000ozpa of gold over 12.2 years at AISC of US$1057/oz.
Based on a long-term consensus gold price of US$2400/oz, the project has a post-tax NPV5 of US$1.6 billion, IRR of 46% and a payback period of less than two years.
Using a gold price of US$3300/oz increases the NPV to US$2.9 billion, the IRR to 73% and reduces the payback period to just over a year.
Diamba Sud
Earlier this week, Fortuna announced that it had received the environmental decree from Senegal’s Ministry of Environment and Ecological Transition approving the Environmental and Social Impact Assessment for the Diamba Sud gold mine, paving the way for a grant of a mining permit.
The company is already advancing early works, including camp construction, ahead of a final investment decision in mid-2026.
The October 2025 preliminary economic assessment for Diamba Sud returned a post-tax IRR of 72% and NPV5 of US$563 million, based on a US$2750/oz gold price.
During the first three years of production, Diamba Sud is projected to deliver an average of 147,000ozpa at AISC of US$904/oz.
A feasibility study is well advanced with a 2026 project budget of US$100 million.
Studies advancing
Kokoseb
Wia Gold (ASX: WIA), chaired by Centamin founder Josef El-Raghy, is working on a DFS for the Kokoseb gold project in Namibia, which is due for completion by the end of this year.
The scoping study for the 2.93Moz project outlined an 11-year mine life with average production of 177,000ozpa in the first five years.
At a US$3450/oz gold price, the project has a post-tax NPV5 of US$1.26 billion.
Afema
On Wednesday, Turaco Gold (ASX: TCG) announced the results of a prefeasibility study for the Afema project in southeast Côte d’Ivoire, as well as a maiden 1.91Moz reserve.
The US$410 million project is expected to produce around 200,000ozpa of gold over a 10.3-year mine life from a conventional open pit operation, including 230,000oz in the first year.
At a US$3500/oz gold price, the project has a post-tax NPV5 of US$2.1 billion, IRR of 79% per annum and payback of 13 months.
Turaco is targeting the completion of a DFS in the June quarter of 2027 and first gold production in 2029.
Boundiali
Last week, Aurum Resources (ASX: AUE) released a PFS for its Boundiali gold project in northern Côte d’Ivoire.
The project has capital costs of US$342 million and a post-tax NPV5 of US$1.5 billion and an IRR of 119% at US$4076/oz gold.
Five open pits are expected to produce 1.5Moz over 11 years, with 201,000oz produced in the first year.
The company will move to a DFS with first gold targeted in the first half of 2028.