Turaco Gold (ASX:TCG) is expected to have a capital expenditure of AU$550 million for an initial 10-year life of mine, ramping up to six million tonnes per annum to achieve steady-state production levels of about 200,000 ounces per annum at its Afema project, said Euroz Hartleys in a Tuesday note.

The company on Tuesday said extensional drilling at its Afema project's Adiopan in the Ivory Coast has confirmed high-grade and broad widths of gold mineralization along 1.5 kilometres of strike extension.

The research firm expects average grades over the life of mine of 1.3 grams per tonne gold with recoveries of about 88% for lower than the average of $1,300 all-in-sustaining cost (AISC) per ounce.

Euroz Hartleys maintained its speculative buy rating on Turaco Gold and raised its price target to AU$1.55 from AU$1.40.

The company's shares fell 3% in recent Wednesday trade.