Name of the Project
Nyanzaga gold project.

Location
The project is located in the Lake Victoria Goldfields region, in north-west Tanzania.

Project Owner/s
Nyanzaga Mining, the direct Tanzanian holding company of the Nyanzaga project, in which OreCorp has a 25% shareholding. The remaining 75% interest in the Nyanzaga project is held by subsidiaries of Acacia Mining. OreCorp and Acacia are parties to an agreement whereby, subject to regulatory conditions, OreCorp will hold (through its subsidiary) 100% of the project.

Project Description
A PFS has confirmed a robust project and has determined that a concurrent openpit and underground mine schedule represent the optimum mining sequence.

The openpit will deliver the base load of mineralised material over the life-of-mine and is expected to deliver about 1.75-million ounces of contained gold over its 12-year mine life – an increase of 25%, or 350 000 oz of gold, on the scoping study assessment.

Underground mining will start in Year 1, from a boxcut outside the openpit, and is expected to produce about 1.16-million ounces of contained gold, including underground development material. The underground will be developed to a depth of 800 m below surface, with the deposit remaining open at depth. Detailed metallurgical testwork in the PFS has confirmed gold recovery of 88% through a conventional four-million-tonne-a-year carbon-in-leach processing plant – an increase of 3% on the scoping study figure.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Preproduction capital costs are estimated at $287-million, which includes a $33-million contingency. The change in capital from the $248-million in the April 2016 scoping study is largely because of the change in the mine schedule, resulting in an increased prestrip of 7.1-million tonnes, increasing the cost of the prestrip from $14-million to $36-million.

The process plant capital cost has increased by about $11-million, resulting from the reduced grind size (P80 of 75 μm, compared with P80 of 106 μm) and the inclusion of additional processing equipment to improve plant availability and operability. The higher initial capital cost, compared with the scoping study estimate, is offset by the increased average yearly life-of-mine (LoM) production and overall LoM ounces while retaining consistent capital intensity. Consistent with the scoping study, the capital estimate is based on a contractor mining scenario and, therefore, excludes capital for a mining fleet.

Planned Start/End Date
Not stated.

Latest Developments
OreCorp will undertake an institutional placement to raise A$13.3-million to help fund the acquisition of the Nyanzaga gold project and drilling at the Hobbes prospect.

The company has said that 53.1-million shares, at 25c each, will be placed to domestic and overseas institutional and sophisticated investors, with Euroz acting as sole lead manager and bookrunner for the placement.

The new shares will be placed under OreCorp’s existing placement capacity, with no shareholder approval required.

The funds will increase OreCorp’s cash position to about A$22-million, and will ensure that the company is in a strong position to complete the acquisition of the Nyanzaga project and pursue exploration programmes at its various projects.

OreCorp earlier this year earned an initial 25% stake in Nyanzaga through a $14-million earn-in agreement with project partner Acacia Mining, and acquired the outstanding interest in the project for $11.5-million.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Acacia Mining GM investor relations and communications Sally Marshak, tel +44 20 7129 7150 or email ir@acaciamining.com.
OreCorp, CEO and MD Matthew Yates, tel +61 0 417 953 315.