Canadian mining company Fortuna Mining has advanced plans for its Diamba Sud gold project in Senegal after a new feasibility study confirmed strong economic prospects for the mine.
The study estimates the open-pit project will generate an after-tax net present value (NPV) of $1 billion, with an internal rate of return (IRR) of 60 percent and a capital payback period of just one year, based on a gold price of $3,500 per ounce.
Production is expected to average 158,000 ounces of gold annually during the first four years before settling at an average of 116,000 ounces over the mine’s projected 9.4-year lifespan.
Fortuna also expects the project to be its lowest-cost mining operation, with all-in sustaining costs estimated at $1,056 per ounce during the first four years and $1,332 per ounce over the life of the mine.
The feasibility study improves on the company’s 2025 preliminary economic assessment by extending the mine’s lifespan from 8.1 years to 9.4 years, increasing expected annual production and confirming 1.15 million ounces of probable gold reserves.
The company has approved $73 million for initial site development, engineering and infrastructure works, with first gold production targeted before the end of the second quarter of 2028, subject to regulatory approvals and a final investment decision.
Fortuna said the Diamba Sud project is a key part of its strategy to increase annual gold production by about 60 percent to more than 500,000 ounces by 2028, alongside the expansion of its Séguéla mine in Côte d’Ivoire.
The company believes the project’s low operating costs, quick return on investment and further exploration opportunities could extend the mine’s lifespan and increase future production.
The development also strengthens Senegal’s position as an attractive destination for mining investment at a time when several African countries are tightening regulations in the extractive sector.
Unlike some neighbouring countries that have introduced stricter mining policies and greater state participation, Senegal has focused on maintaining investor confidence while strengthening oversight of the industry.
The Diamba Sud project is expected to attract an investment of about $397.5 million, creating employment opportunities, increasing export earnings and generating tax and royalty revenue, while supporting local businesses and suppliers.
