Canadian mining company Roscan Gold has disclosed an initial investment plan of $218.7 million to develop a new gold mine at its Kandiolé project in Mali. Announced as part of a preliminary economic assessment (PEA) published on Monday 2 March, this marks a key step in advancing the project, which could produce more than 834,858 ounces of gold over an estimated 13-year mine life.
According to Roscan's projections, the proposed mining complex would generate average annual gold production of 92,786 ounces during its first four years of operation. Based on a consensus gold price of $3,100 an ounce, the study estimates an after-tax net present value (NPV) of $498 million and an internal rate of return (IRR) of 43%. Initial investment could be recovered just 2.8 years after production begins, highlighting the project's potential profitability against a backdrop of rising gold prices, which increased by more than 60% in 2025.
“Most of the ore intended to feed the processing plant comes from just three of the six deposits included in the resource estimate, suggesting significant growth potential through additional drilling,” Roscan Gold president Nana Sangmuah said in a statement. This expansion potential strengthens the project's appeal as the company, which currently has no producing assets, aims to reach further development milestones by the end of 2026.
Milestones expected this year include obtaining a mining permit and beginning discussions to secure project financing. However, several conditions must be met before the viability of commercial production can be confirmed. The PEA relies solely on mineral resources, and converting them into proven reserves will be essential. A definitive feasibility study (DFS) will be a crucial step in strengthening the project's technical and economic credibility.
For Mali, the Kandiolé project could have strategic importance over the medium and long term. The country, one of Africa's leading gold producers, is seeking to maximise the economic benefits of its mining sector. According to the Extractive Industries Transparency Initiative (EITI), gold accounted for 76.5% of national exports and 9.2% of GDP in 2022. Recent reforms, notably the adoption of a new Mining Code in 2023, aim to strengthen these benefits. Alongside Kandiolé, other advanced projects, such as Kobada, developed by Canada's Toubani Resources, could help invigorate the industry, with planned gold production of 162,000 ounces a year over 9.2 years.
Roscan Gold, listed on the Toronto Stock Exchange, continues to explore opportunities to accelerate Kandiolé's development, benefiting from favourable gold market conditions. Investors and the Malian authorities will closely monitor progress as mining remains a pillar of the West African economy.