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Sadiola (Diba)

RoyaltyUp to 3% NSR
TermsUncapped, steps down to 2% after first 226,000 ounces
Establishment DateSeptember 2023
LocationMali
CommodityGold
OperatorAllied Gold Corp (TSX: AAUC)
Mine TypeOpen Pit
Mine Life3 years (oxide, operator guidance)
Area107km2

Elemental Altus’ royalty on Sadiola covers the Korali-Sud Small Scale Mining Licence (which hosts the Diba deposit) and the Lakanfla Exploration Licence. The licences are contiguous with and satellite to the Sadiola gold mine that is operated by Allied Gold. Sadiola is located in western Mali along the Senegal-Mali shear zone, approximately 450km northwest of the capital city of Bamako. The royalty was created through the Elemental Altus royalty generator model.

Allied Gold have committed to fast track open-pit production of oxide ores from Diba, including the construction of a 15km long ore haulage road to the operating mill at Sadiola. Mineralisation at Diba is sediment-hosted within a series of shallow-dipping stacked lenses, typically between 20m and 40m thick, with gold occurring as fine-grained disseminations in localised high-grade quartz veinlets.

Diba and Lakanfla hosts a NI 43-101 Mineral Resource Estimate (“MRE”) of 312,000 ounces of gold with a grade of 1.24 g/t in the Indicated Category (including 199,000 ounces of gold in oxides with an average grade of 1.52 g/t) and 362,000 ounces of gold at 0.88 g/t in the Inferred Category. Exploration to date indicates excellent potential for further resource expansion beyond the existing MRE within the 107 square km licence area.

Elemental Altus’ sold the project to Allied Gold in 2023 with the sale consideration being a 3% NSR royalty on the first 226,000 ounces produced from Diba and a 2% NSR royalty on all production thereafter from the licences. The consideration also included multiple production-based milestone totalling up to US$6m.

Sadiola 01

Sources

  • Technical Report titled “NI 43-101 Technical Report for the Sadiola Gold Project, Mali” effective June 12, 2023 and dated September 7, 2023
  • Allied Gold TSX release titled “Allied Gold Corporation Commences Trading on TSX, Announces Strategic Ownership Consolidation of the Kurmuk Development Project, and Board Approvals to Advance Its Growth Projects”, dated September 11, 2023
  • For more information on Bonikro, please visit https://alliedgold.com/