PERTH (miningweekly.com) – A feasibility study into the Theta gold project, in South Africa, has confirmed the project’s economics and commercial viability, ASX-listed Theta Gold Mines reported on Thursday.
The feasibility study has estimated a total capital cost of $34.3-million over the five-year mine life, which includes $21.6-million required for the construction of the 500 000 t/y carbon-in-leach plant.
Over the five-year mine life, the Theta project is expected to produce more than 200 000 oz of gold at an all-in sustaining cost of $764/oz, delivering life-of-mine revenues of $252.6-million and earnings before interest, taxes, depreciation and amortization of $99.6-million.
The feasibility study estimated that the project would have a post-tax net present value of $49.6-million and an internal rate of return of 65.1%.
“Despite only a small part of the resource base being converted into a mining reserve, the feasibility study confirms that the project has very favourable economics and viability,” said Theta Gold Mines chairperson Bill Guy.
“The remaining unconverted resource will be subsequently drilled out and I expect that further resources will be converted into reserves. Furthermore, the high-grade ore deposits at Theta appear to extend to the south.”
Theta Gold Mines on Thursday reported a global mineral resource of over six-million ounces, from 44.8-million tonnes of ore grading 4.18 g/t gold. The global resource included the 870 000 oz Theta project’s indicated and inferred resource estimate and the 205 000 oz maiden reserve.