Name of the Project
Twin Hills gold project.

Location
Namibia’s prospective Damara sedimentary mineral belt, located between the towns of Omaruru and Karibib, in Namibia’s Erongo region.

Project Owner/s
Osino Resources Corp.

Project Description
The project is planned as a multipit mining operation with seven pushbacks in the Central Twin Hills/Bulge pits, and the three separate satellite pits – Clouds, Clouds West and Twin Hills West.

The orebody will be mined as a conventional shovel-and-truck operation, with bulk mining augmented by more selective mining in areas with narrow ore zones. The mining operation, except for the mine technical services function, will be outsourced to mining contractors.

The September 2022 prefeasibility study outlines a 13-year openpit mine life with an average gold production rate of 169 000 oz/y. This is based on 2.15-million ounces in reserves.
Life-of-mine production is estimated at 1.98-million ounces of gold.

The Twin Hills process plant will have nameplate capacity of five-million tonnes a year of ore.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $783-million and an internal rate of return of 33% at a gold price of $1 700/oz, with a payback of 2.3 years.

Capital Expenditure
The initial capital cost of the project is estimated at $375-million.

Planned Start/End Date
Initial gold production is targeted for 2025.

Latest Developments
Osino Resources is progressing with developing a definitive feasibility study (DFS) for its Twin Hills gold project, and is conducting trade-off studies and assessing risks and opportunities for infrastructure enhancement, and water and power supply in particular.

Work on the DFS started in October 2022, with various main consultants appointed.

The DFS, which Osino plans to release midyear, is based on a conventional crushing, milling, gravity, pre-oxidation and carbon-in-leach (CIL) circuit.

In parallel to the technical work that is under way, Osino is progressing with financing discussions with potential financiers as it gets closer to making a formal construction decision.

To date, Osino has selected several options to progress with the project, including a standard primary crusher, coarse ore stockpile, secondary and tertiary crushing, covered fine ore stockpile and ball mill circuit in preference to other alternatives.

Going forward, the developer is preparing mass balance, process design criteria, block and process flow diagrams, including mechanical equipment lists.

Data sheets, specifications and requests for quotation to vendors have been issued with capital and operating cost estimates expected to be compiled this month and in March.

The capital and operating cost estimates will be updated during the next two months and are based on quotations, as opposed to mostly factoring in the preliminary feasibility study.

Osino has noted that various capital cost saving opportunities have been identified and will be reflected in the DFS estimate

Key Contracts, Suppliers and Consultants
Lycopodium Minerals Africa (preliminary economic assessment and overall compilation of the technical report); DRA (infrastructure design, cost estimation and coordination of specialised consultants); Lycopodium and DRA/Senet (engineering, procurement and construction management); and Qubeka Mining Consultants (enhancement, design, scheduling and cost estimates for the openpit mining operation); Knight Piésold (design and cost estimate the filtered tailings storage facility and extend the hydrogeological model of the project); CSA Global (resource estimation); SRK (geotechnical and geophysical works); ECC (environmental work); SLR (hydrocensus updates); FL Smidth, Paterson & Cooke, Bokela and STL (tailings filtration test work); GSFA (bulk power supply); Kuchling & Associates (bulk water supply); Dornier Suntrace (renewable power supply); and Collis & Associates (sustainability work).

Contact Details for Project Information
Osino Resources manager investor relations Julia Becker, tel +1 604 785 0850 or email jbecker@osinoresources.com.