Name of the Project
TGME underground project.

Location
Mpumalanga, South Africa.

Project Owner/s
Gold mining hopeful Theta Gold Mines.

Project Description
The TGME underground project comprises the Beta, Frankfort and CDM mines, all of which form part of the Central Northern area.

A prefeasibility study (PFS) has shown that the narrow, high-grade reef systems can be mined using modern mechanised mining techniques, and that the gold can be recovered using modern metallurgical technologies – ultrafine grinding and intense carbon-in-leach. About 419 000 oz of gold are expected to be delivered to the plant over the initial life-of-mine (LoM) of 7.67 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the project has a net present value, at a 5% discount rate, of $91.2-million and an internal rate of return of 82%, with a payback of about 13 months from first gold and 22 months from the start of mining.

Capital Expenditure
Total capital expenditure is estimated at $78.5-million.

Planned Start/End Date
Not stated.

Latest Developments
Despite facing challenges, such as the drawn-out licensing approval process in South Africa, Theta Gold Mines estimates that a payback target of 13 months for its TGME projects is still attainable.

TGME, which the company has coined as ‘the reawakening the giant Eastern Transvaal Gold Fields’, includes plans to bring at least three more mines into production within the next five years – adding to the three starter mines Beta, Frankfort, and CDM in the Thaba Chweu district municipality, in Mpumalanga.

These six mines are in addition to the sites where studies are being conducted in the Rietfontein, Vaalhoek, Glynn’s Lydenburg and Desire mines, all in Mpumalanga.

Theta Gold Mines Africa CEO Mitford Mundell says that quite a few milestones have been achieved in the development of these mines.

One such milestone is securing funding of A$10-million from a German fund in August 2021.

“These funds will be used to advance the various studies and upfront mine development work, as well as cover working capital,” he says.

The Rietfontein mine, which was not part of the initial PFS released in April, is set to be brought into the production profile, further expanding the scope of the project.

The Rietfontein PFS was expected to be completed in December 2021.

The April PFS is being upgraded as part of a definitive feasibility study, which will be completed in the first quarter of 2022.

Various projects are being executed, including a longhole stoping trial at the Frankfort mine, which comprises dolomitic drilling for surface footprint detailed designs and detailed metallurgical testwork.

Mundell says the development strategy for the Phase 1 project has not changed.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Theta Gold Mines, tel +61 2 8046 7584 or email info@thetagoldmines.com.