Omanghana
Canadian gold producer Fortuna Mining Corp. has released a strong feasibility study for its Diamba Sud Gold Project in Senegal, highlighting the project’s potential to become one of the company’s most profitable mining operations.
The study values the open-pit gold mine at an after-tax net present value (NPV) of approximately $1 billion, supported by a 60% internal rate of return (IRR) and an estimated one-year capital payback period, based on a gold price assumption of $3,500 per ounce.
Major Growth Project for Fortuna
Located about 600 kilometers east of Dakar, the Diamba Sud project is designed as a conventional open-pit mine utilizing carbon-in-leach (CIL) processing technology. The development is expected to play a central role in Fortuna Mining’s long-term growth strategy.
The latest feasibility study significantly improves upon the company’s 2025 preliminary economic assessment, extending the mine’s projected operating life and increasing expected production.
Key project highlights include:
- Mine life: Extended to 9.4 years, up from the previous estimate of 8.1 years.
- Early production: Average annual gold production of approximately 158,000 ounces during the first four years.
- Life-of-mine production: Average annual output of 116,000 ounces, totaling an estimated 1.05 million ounces over the mine’s lifespan.
- Gold reserves: 1.15 million ounces of probable gold reserves.
Strong Economics Despite Higher Development Costs
While global inflation and higher construction costs have increased project expenditures, the feasibility study indicates that Diamba Sud remains economically attractive.
Initial capital investment required to develop the mine is estimated at $397.5 million.
Operating costs are also expected to remain competitive. The project’s all-in sustaining cost (AISC) is forecast at $1,056 per ounce during the first four years of production before averaging $1,332 per ounce over the life of the mine. These figures would make Diamba Sud Fortuna’s lowest-cost producing asset.
Senegal Strengthens Its Position as a Mining Destination
The project further reinforces Senegal’s reputation as one of West Africa’s most attractive jurisdictions for mining investment.
Unlike several neighboring countries—including Mali, Burkina Faso, and Niger—which have introduced stricter mining regulations and expanded state ownership in the sector, Senegal has maintained a relatively stable investment environment while balancing regulatory oversight with investor protections.
The favorable regulatory climate continues to attract international mining companies seeking long-term investments in the region.
Construction Set to Begin Later This Year
Fortuna has allocated $73 million for early development activities, including engineering work and site infrastructure.
Following the receipt of its environmental decree from the Senegalese government, the company is moving toward a final investment decision.
Construction is expected to commence during the fourth quarter of 2026, with first gold production targeted for mid-2028.
If completed on schedule, the Diamba Sud project will become a significant contributor to Fortuna Mining’s global production portfolio while further strengthening Senegal’s role as a leading gold-producing nation in West Africa.
Source: Omanghana
