TGME underground project, South Africa – update

Image of gold bars

Photo by ©Bloomberg

10th May 2024

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor


Font size: - +

Name of the Project
TGME underground project.

Mpumalanga, South Africa.

Project Owner/s
Theta Gold Mines.

Project Description
The project aims to restart historical underground gold mines in Mpumalanga, a prolific gold-mining region.

The project is targeting the Beta, Rietfontein and Frankfort, as well as Clewer-Dukes Hill-Morgenzon (CDM) mines.

In the base case, the project has a mine life of 12.9 years, delivering production of 1.24-million ounces of contained gold over the life-of-mine (LoM) at a processing rate of 540 000 t/y to initially recover 1.08-million ounces of gold.

The project aims to produce 30 000 t a month from the Beta mine, 15 000 t a month from the Rietfontein mine, 15 000 t a month from the Frankfort mine and 10 000 t to 20 000 t a month near the end of the CDM mine’s LoM. The existing mining infrastructure will be used, with the addition of new accesses, underground development and predevelopment of the mining grids to access the planned mining areas at Beta, Frankfort and CDM.

At Rietfontein, the existing adits and underground development will be used with the addition of new development ends, a new decline and the extension of an existing decline.

The mining strategy for the underground operations is to apply mechanised longhole drilling to narrow-reef mining to selectively mine out only the reef channel, with minimal dilution at Beta, Frankfort and CDM.

Rietfontein will be mined conventionally using shrinkage stoping, with hybrid loading methods between trackless load-haul-dump and rail-bound locomotives.

The processing plant will have a feed capacity of 45 000 t a month.

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 10% discount rate, of $324-million at an average $1 642/oz and an internal rate of return of 65%. Based on these figures, the project has a forecast after-tax payback period of 31 months.

Capital Expenditure
The estimated development capital or peak funding requirement is $77-million.

Planned Start/End Date
First gold production is targeted for the second quarter 2024. Beta is scheduled as the first operation to start production, followed by Rietfontein and then the CDM and Frankfort mines, which will start production simultaneously.

Latest Developments
Theta Gold Mines has received a commitment from Hong Kong Ruihua Investment Management to invest $10-million in the company through a share subscription agreement.

The funds will be used to complete funding packages for the TGME gold plant’s construction; for advanced engineering, procurement and construction contracts; for development works for the plant, a tailings storage facility and water management at the TGME project; and to strengthen Theta’s balance sheet.

Theta has said it is now fully permitted to start mining activities at TGME.

Key Contracts, Suppliers and Consultants
Met63 (detailed design and costing of processing plant designed for a feed capacity of 45 000 t a month): and YRC (construction of gold plant, TSF and wastewater dams).

Contact Details for Project Information
Theta Gold Mines, tel +61 2 8046 7584 or email


Edited by Creamer Media Reporter


Latest News

Gibb River chairperson Jim Richards and Namibia exploration manager Nico Scholtz visit the Erongo region.
Gibb River enters Namibia uranium sector
Updated 1 hour 8 minutes ago By: Mariaan Webb


Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...


Latest Multimedia

sponsored by

Magazine round up | 21 June 2024
Magazine round up | 21 June 2024
21st June 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.204 0.255s - 93pq - 2rq
1: United States
Subscribe Now
2: United States