Theta Gold Mines Limited (ASX: TGM) Quarterly Activity and Cash Flow Report March 31, 2021
(MENAFN – ABN Newswire)
Theta Gold Mines Limited (ASX: TGM) (OTCMKTS: TGMGF) is pleased to report on its activities for the period January 1 to March 31, 2021.
The company made strong progress in early 2021, achieving key project milestones, financings, the first underground mining reserve (see ASX announcement of April 8, 2021) and the first underground pre-feasibility study (see ASX announcement April 13, 2021). The team delivered a first underground pre-feasibility study (“PFS”) based on only 16% of Theta Gold’s 4.5m oz Au underground gold resource and includes only 3 of the 43 historic mines recorded in the project area. .
The Maiden underground mine reserve is estimated at 419,000 ounces of gold (2,366 kt at 5.49 g / t). In total, the global mineral reserve is now 580,000 ounces of gold (4,530 kt at 3.98 g / t) (see Appendix A, Table 1 *). The global mineral resource (JORC 2012) remains above 6 Moz (45.5 Mt @ 4.17 g / t Au) (see Appendix A, Table 2 *).
Theta Gold has demonstrated, through the first phase of the underground PFS, excellent project economy for what it believes to be only a small part of the underground resource and will continue to accumulate its mineral reserves by advancing Rietfontein and other mines. up to the PFS level, while concluding the detailed designs of the phase 1 underground project.
The Theta Mine team now has a number of former Harmony Gold mining experts. Not only do they strengthen the mine construction and execution team, but it gives the board great confidence that the men of the Coalface share our belief in this great gold field.
AFTER QUARTER – April 2021
Pre-feasibility study – TGME Phase 1 underground project – 74% owned by TGM
TGME’s Phase 1 underground project, which excludes surface wells, entered market on April 13, 2021. All USD figures and financial data are based on gold price forecast of 1 570 USD / ounce and a ZAR / USD exchange rate of 15.9. Highlight details include:
– Peak capex of only 36 million USD to start mining operations leading to the recovery of 419 Koz Au at a peak rate of 60 Koz per year.
– Repayment period from the first 13 months gold
– Repayment period from the start of mining of 22 months
– 419,000 oz Au delivered to factory (is it recovered?) Over Initial Mine Life (LoM)
– In the third year, the recovered production is greater than 60,000 oz Au / year
– 7.67 year LoM, based on existing mineral reserves (excludes 3.5 Moz inferred resources)
– EBITDA of 241.2 million USD on LoM
– Internal rate of return (IRR) 82%
– Net present value (NPV) of 91.2 million USD
– All-inclusive sustaining cost of US $ 905 / oz Au (AISC) on LoM, lower quartile for South African producers
– LoM’s total capital expenditure (CAPEX) 79 million USD includes –
o Maximum CAPEX for the first 3 years of US $ 37 million – for the oxidation and backfill plants and for the development of the Beta mine
o Year 4 US $ 27 million for the sulphide circuit, the development of the Frankfurt mine and CDM
o US $ 15 million for other capital development costs and sustaining investments during LoM operations
Maiden Underground Mining Reserve
– MAIDEN underground mining reserve 419,000oz @ 5.49g / t Au declared
– TOTAL global mining reserve of 580,000 oz at 3.98 g / t Au (open pit and underground mine)
– 63% conversion factor for the Maiden underground mining reserve
– 3.5Moz of underground resources (inferred) remaining for future conversion to mineral ore reserve
– Global Mineral Resource 6Moz Au includes –
o 4.5 Moz Underground (26.3 Mt @ 5.4 g / t Au) (measured, indicated and deducted)
– 969,400 oz (4.87 Mt @ 6.20 g / t Au) (measured and indicated)
o 1.3 Moz surface resources (13.02 Mt @ 3.25 g / t Au) (indicated and deducted)
– Project 917 Koz Theta (9.6 Mt @ 2.99 g / t Au) (indicated and inferred; 0-130 m depth)
– 161 Koz (2.16 Mt @ 2.31 g / t Au at a threshold of 0.4 g / t Au) Estimate of the probable ore reserve (open pit ore reserve of the Theta project)
o Tailings and Rock Landfills – 174,000 oz (indicated and suspected)
DURING THE QUARTER – Q3 FY 2021
– A $ 15 million market participation facility with Acuity Capital
– Fundraising of $ 4 million to support the study of the mine, obtaining permits and development
– Reinforced execution team
* To view the full quarterly report, please visit:
Theta Gold Mines Limited (ASX: TGM) (OTCMKTS: TGMGF) is a gold development company that owns a range of potential gold assets in a world renowned South African gold mining region. These assets include several high-grade, near-surface gold projects that offer cost advantages over other gold producers in the region.
Theta Gold Mines’ main project is located next to the historic mining town of Pilgrim’s Rest, in Mpumalanga province, about 370 km northeast of Johannesburg by road or 95 km north of Nelspruit (capital of the province of Mpumalanga). Following small-scale production from 2011 to 2015, the company is currently focused on building a new gold processing plant in its approved footprint at the TGME plant, and for the processing of ore from Open-pit oxidized gold from Theta. Nearby surface and underground mines and prospects are expected to be further assessed in the future.
The company aims to build a strong production platform at over 100 Kozpa based mainly around shallow, open pit or adit entry hard rock mining springs. Theta Gold Mines has access to over 43 accessible and explorable historic mines and prospecting areas, with over 6.7Moz of recorded historical production.
Bill Guy, Chairman Theta Gold Mines Limited T: + 61 2 8046 7584 E: nvestor Relations Australia: Ben Jarvis Six Degrees Investor Relations T: +61 (0) 431271538 United States: Michael Porter Porter, LeVay & Rose Inc T: + 1212564 4700E:
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