Segilola Gold Mine, Nigeria’s First and Largest Industrial-Scale Gold Mine Nears Completion

Segilola Gold Mine, Nigeria’s First and Largest Industrial-Scale Gold Mine Nears Completion

Segilola Gold Mine, Nigeria’s first and largest industrial-scale gold mine owned by the Canadian mineral exploration company, Thor Explorations Limited, is set to be completed in the first half of 2021. 

Segilola Gold Mine is a high-grade gold project undergoing construction in Osun State, southwestern Nigeria. The project is expected to fast-track the diversification of the Nigerian economy and to further reduce youth unemployment in the country.

The gold mine project once completed, is expected to create about 400 direct and 1,000 indirect jobs by carefully exploring the wealth inherent in the gold value chain.

Preliminary Feasibility Study (PFS) for the gold project was completed in September 2017, while the Definitive Feasibility Study (DFS) and the Preliminary Economic Assessment (PEA) study were completed in February 2019.

In 2020, the Minister of Mines and Steel Development, Olamilekan Adegbite disclosed that Nigeria was prepared for the start of gold production in 2021, after the launch of the Segilola Gold Project in Osun State. Following this, Thor Explorations Limited also announced that a set of encouraging drill results from its in-pit and extensional diamond core drilling program revealed that the gold mine is set to pour its first gold in the second quarter of 2021 (Q2 2021).

The gold project is considered as Nigeria’s first and most advanced gold project, with an indicated resource of 556,000 ounces grading at 4.2g/t, an inferred resource of 306,000 ounces grading at 4.7g/t and a probable reserve of 448,000 ounces grading at 4.2g/t.

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The Segilola Gold Mine is expected to produce 100,000 ozpa in its first operating year and an average of 80,000 ozpa over its current five-year open-pit lifespan, with an average of about 4.2 g/t. The mine is projected to play a vital role in driving growth in the Mining sector. 

In line with this development, the Mining sector has been projected to contribute 3.0% of the country’s Gross Domestic Product (GDP) by 2025. 

The mine project indicates an industrial revolution in Nigeria and the preparedness to start tapping into its rich deposits of minerals, which includes iron ore, gold, zinc and lead. This development will generate wealth, create value and employment opportunities for Nigerian youths. Additionally, the gold mine project will create primary employment for local artisanal miners and mining cooperatives across the mining sector.