Turaco Gold's (ASX:TCG) pre-feasibility study for the development of the Afema project in the Ivory Coast is broadly in line with Euroz Hartleys estimates, establishing the company as one of few developers on the ASX capable of producing over 200,000 ounces per year over a 10-year mine life, the financial services firm said in a Wednesday note.
The company recently completed the pre-feasibility study, outlining a conventional open pit operation with a processing rate of 6 million tonnes per year.
In the first year, 230,000 ounces is expected to be produced, with an average of about 215,000 ounces per year in the first seven years of production.
An upfront capital of $410 million, along with competitive operating costs, sets up the project as a "high-margin and potentially highly profitable" gold producer, Euroz Hartleys said.
The project's mineral resource totals 116 million tonnes at a grade of 1.2 grams per tonne for 4.65 million ounces, indicating potential for additional reserves in the future.
A definitive feasibility study is anticipated to be completed over the next nine to twelve months.
Euroz Hartleys reaffirmed its speculative buy recommendation and AU$1.85 price target on Turaco Gold.
Turaco Gold shares fell past 2% in morning trade Thursday.