Fortuna’s Diamba Sud: Senegal’s Next Big Gold Project?

Senegal, a nation known for its vibrant culture and strategic location in West Africa, is poised to become a significant player in the gold mining industry. With Fortuna Silver Mines’ acquisition of the Diamba Sud gold project, the country is attracting increasing attention from investors and industry experts alike. According to a recent preliminary economic assessment (PEA), the Diamba Sud project boasts an impressive after-tax net present value of $563 million and an internal rate of return of 72%, signaling a potentially rapid return on investment. This blog post delves into the details of Fortuna’s Diamba Sud project, exploring its potential, the geological context, the regulatory environment, and what it means for Senegal’s economic future.

A Golden Opportunity in Senegal

Fortuna Silver Mines, a Canadian precious metals mining company, has set its sights on Senegal with the Diamba Sud gold project. The company acquired the project in September 2023 through the takeover of Chesser Resources, signaling a strong commitment to expanding its portfolio in West Africa. Fortuna’s President and CEO, Jorge A. Ganoza, has expressed optimism about the acquisition, highlighting Senegal’s mining-friendly environment and the growth potential of the Diamba Sud gold project.

The Diamba Sud project covers a substantial 872 square kilometers in eastern Senegal, an area known for its geological similarities to prolific gold mines in neighboring Mali, operated by industry giants like Barrick Gold and B2Gold. This strategic location and geological context make Diamba Sud a highly promising prospect.

Unveiling the Potential: Resources and Exploration

Chesser Resources’ prior estimates indicated a mineral resource of 10 million tonnes with an average gold grade of 1.9 grams per tonne (g/t), containing 625,000 ounces of gold. Additionally, there were 4.7 million tonnes with an average of 1.5 g/t Au in the inferred category, containing 235,000 ounces of gold.

Fortuna has since updated these estimates based on drilling completed between July 2024 and July 2025. As of July 7, 2025, the Diamba Sud Gold Project comprises an Indicated Mineral Resource of 14.2 Mt at an average gold grade of 1.59 g/t, containing 724,000 ounces of gold, and an Inferred Mineral Resource of 6.2 Mt at an average gold grade of 1.44 g/t containing 285,000 ounces of gold. This updated estimate is based on 243 drill holes totaling 31,652 meters.

Fortuna is committed to expanding the mineral resources at Diamba Sud through ongoing exploration programs. In 2024, the company allocated $9.2 million for exploration, including 42,700 meters of diamond (DD) and reverse circulation (RC) drilling. The goal is to increase the project’s resources and improve confidence levels for future exploitation.

Geology and Mineralization

The geology at Diamba Sud consists of sedimentary packages intruded by mafic to felsic intrusions. Mineralization is structurally controlled by faults and shears, occurring within various lithologies. It is dominantly associated with pervasive alteration and can be disseminated or veined. Supergene enrichment within the saprolite zone enhances gold grades, particularly in Area D, which is divided into High Grade Oxide, Sapzone, and Fresh domains. The ore deposit type is defined as orogenic lode gold with supergene enriched saprolitic zones.

Senegal’s Mining-Friendly Environment

Senegal has a well-established legal and regulatory framework for the mining sector, designed to ensure sustainable exploitation of natural resources while promoting economic development. The Mining Code of 2016 and the Environmental Code of 2023 govern mining activities, balancing the interests of the state, companies, and local communities.

To conduct mining operations, companies must obtain a mining title granted by the Senegalese government, including prospecting permits, research permits, and mining exploitation licenses. A mining license grants the holder the exclusive right to extract and freely dispose of mineral substances for a period of 5 to 20 years, with the possibility of renewal.

Each mining project is governed by a mining agreement negotiated between the Senegalese government and the mining concession holder, outlining specific conditions for investment, taxes, and royalties. Mining companies must also comply with environmental obligations, including completing environmental impact assessments.

Economic Impact and Future Prospects

The Diamba Sud project is expected to have a significant positive impact on Senegal’s economy. The PEA outlines an open-pit operation with a payback period of just ten months, based on a gold price of $2,750 per ounce. The initial capital costs are estimated at $283.2 million.

Production in the first three years is projected to average 147,000 ounces per year at an all-in sustaining cost of $904 per ounce. Fortuna plans to develop multiple deposits, including Area A, Area D, Karakara, Western Splay, Kassassoko, Moungoundi, and Southern Arc, with a throughput of 2.5 million tonnes per year initially, decreasing to 2 million tonnes from year four onward.

Fortuna expects to complete a feasibility study by mid-2026, with a construction decision to follow. Full construction is slated to begin in the fourth quarter of 2026, after the rainy season, with the first gold pour targeted for the second quarter of 2028. The mine is expected to produce 840,000 ounces of gold over its 8.1-year life, averaging 106,000 ounces per year at an all-in sustaining cost of $1,238 per ounce.

Navigating Legal and Regulatory Considerations

Operating in Senegal’s mining sector requires careful navigation of its legal and regulatory landscape. Key aspects include:

Mining Code: Governs prospecting, exploration, and mining of minerals.
Environmental Code: Imposes obligations on mining companies regarding environmental assessments and ecological impact management.
Mining Agreements: Negotiated between the government and concession holders, specifying investment, taxes, and royalties.
Local Content Law: Law n. 2022-17 of May 23, 2022, focuses on local content in the mining sector.

Compliance with these regulations is crucial for the sustainable and responsible development of the Diamba Sud project. Companies must also respect the rules of hygiene and safety to guarantee the safety of persons and goods in mines and quarries.

Community Engagement and Sustainability

Fortuna recognizes the importance of engaging with local communities and stakeholders. The company aims to partner with local communities as it advances the Diamba Sud project. Sustainability is integral to Fortuna’s operations, with a focus on environmental protection and social responsibility.

Conclusion: A Bright Future for Diamba Sud and Senegal

Fortuna’s Diamba Sud gold project represents a significant opportunity for Senegal to expand its role in the gold mining industry. With substantial resources, a favorable regulatory environment, and Fortuna’s commitment to exploration and sustainable development, Diamba Sud has the potential to be a major economic driver for the country. As the project moves towards feasibility and construction, it will undoubtedly attract further investment and create opportunities for local communities, solidifying Senegal’s position as a key player in the West African gold market.

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