Canadian junior miner Thor Explorations has outlined a US$254 million capital expenditure plan to develop its Douta gold project in Senegal, aiming to begin production in 2028, the company announced on Monday. The pre-feasibility study provides the first detailed economic assessment of the project, which the company said could produce 1 million ounces of gold over a 12.6-year mine life, or roughly 82,000 ounces annually.
At a consensus gold price of US$3,500 per ounce, the project is expected to generate a post-tax net present value (NPV) of US$633 million and deliver an internal rate of return (IRR) of 61 percent, highlighting strong potential profitability. Thor said the results confirm Douta as a high-quality project with a relatively short payback period, reinforcing its strategy to become a multi-asset gold producer in West Africa.
“We are delighted with the results of the Douta pre-feasibility study, which represents a major milestone in our growth strategy,” said Segun Lawson, Chief Executive Officer of Thor Explorations. “These findings confirm the project’s economic robustness and strategic importance for our expansion in the region.”
Thor currently operates the Segilola gold mine in Nigeria but has intensified development efforts at Douta over the past year. The company plans to continue discussions with the Senegalese government to finalise a mining convention, a key step toward securing the exploitation permit required to start construction.
Further exploration work is also planned to optimise the project’s potential. Thor intends to conduct a definitive feasibility study, which could refine the mine plan, assess additional reserves, and inform final financing arrangements. The company said it will fund the project through a combination of existing cash reserves and potential external financing, though no specific funding sources have yet been announced.
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Douta is expected to strengthen Senegal’s industrial gold production, which is already supported by several active mines, including Sabodala-Massawa, Mako, and Boto. Other junior and mid-tier projects, such as Fortuna Mining’s Diamba Sud, are also expanding the country’s gold sector, reinforcing Senegal’s position as one of West Africa’s growing gold-producing hubs.
The pre-feasibility study comes at a time of strong global gold prices, with markets recently exceeding US$5,000 per ounce, a historic milestone that has boosted revenue potential for African gold producers. The combination of rising metal prices and a clear project plan enhances the investment case for Douta, which Thor said could be financed with a mix of equity and debt to reduce the reliance on any single source of capital.
Officials in Dakar have welcomed the project as part of a broader push to attract foreign investment into the mining sector, diversify the economy, and generate local employment. The development is expected to create construction jobs in the near term and long-term operational roles, while also contributing to government revenues through royalties and taxes.
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Thor said the project aligns with its goal of building a multi-asset gold portfolio across West Africa, complementing existing operations in Nigeria and positioning the company for future growth. By establishing a robust presence in Senegal, Thor aims to leverage local expertise, create value-added opportunities in mining services, and strengthen its regional footprint in a sector that remains central to West African economic development.
The company’s pre-feasibility study marks a critical step in advancing Douta from concept to reality, providing investors, regulators, and stakeholders with a comprehensive view of its economic viability, operational scope, and strategic potential. Pending government approvals and final financing arrangements, Thor plans to move toward construction and eventual production, targeting the start of gold output by 2028.
