PERTH (miningweekly.com) – An optimised mine schedule for the Theta openpit starter project, in South Africa, has added 40 000 oz of gold, ASX-listed Theta Gold Mines said on Monday.
The optimised mine schedule reflects an increase in the production rate from 500 000 t/y to 600 000 t/y, and includes mining of several old waste rock dumps and increases the overall mine operational flexibility, while also reducing the environmental footprint of the project.
The project is now expected to have a mine life of six-and-a-half years, up from the previous five-year estimate, with gold delivered over the life of the project increasing from 219 000 oz to 260 000 oz.
The project’s internal rate of return has increased from the 65.1% estimated in the project’s prefeasibility study, to 123%, while the net present value has increased from $50-million to $85-million. The project’s total capital cost has also reduced from $34.3-million to $31.4-million.
Over the mine life, Theta is expected to generate earnings before interest, taxes, depreciation and amortization of $150.2-million, up from the previous estimate of $99.6-million.
“The new optimised mine schedule is a credit to the team and the work and energy put into the Theta openpit starter project has been rewarded,” said chairperson Bill Guy.
“The new mine schedule demonstrates clear robust project economics with more gold extracted and greater value for shareholders.”
Theta is now working to progress the mining contract through to a final document with a preferred contractor, amending the environmental impact assessment and to resubmit the document to implement the expanded mine schedule, while also progressing discussions with engineering firms tendering for the gold plant construction.