Scandinavia-based gold exploration and boutique mining company Akobo Minerals has reached an agreement with South African company IW Mining to operate the underground mine at Segele, in Ethiopia.
IW Mining is a highly experienced mining contractor with years of underground mining experience in the South African mining arena, Akobo says.
This fundamental agreement secures Akobo access to personnel and competence for mining of the Segele gold ore.
Mining is expected to start in October, with first gold extraction to begin in the first quarter of 2023. Full production is expected to be reached by the end of the second quarter of 2023.
In line with Akobo’s environmental, social and governance (ESG) guidelines, IW Mining will recruit and train Ethiopian personnel to work at the Segele mine.
Akobo says considerable planning and preparation have been undertaken together with IW Mining for the last few months ahead of the signing of the agreement.
Sourcing of mining equipment has already begun and first shipments are to be dispatched imminently. IW Mining will mobilise an experienced mining team from South Africa that will travel to Segele within weeks.
Akobo is now ramping up activities in all areas for preparation of mining operations.
With the newly secured convertible loan and signing of Solo Resources on plant design and production in May, all tasks are said to be on track.
Solo Resources has already completed design work, and the process plant is now under fabrication and deliveries of the parts will begin shortly.
The final project funding is also moving forward with several positive dialogues ongoing.