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Theta Gold Mines Limited (ASX:TGM) TGME Project DFS Confirms NPV of AUD432 Million
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 Theta Gold Mines Limited's Feasibility Study (ASX:TGM) (FRA:3LM) (OTCMKTS:TGMGF) presents a clear pathway to production via the re-development of TGME's gold assets within South Africa's renowned gold mining regions, with a forecast total Life of Mine (LOM) production of 1.24 Moz's of contained gold. Early site development works, finalisation of permitting and approvals are in progress.
FS KEY BASE CASE RESULTS:
- Transvaal Gold Mining Estate (TGME) Underground Gold Mine Project, which initially includes 4 mines (Phase 1) - Beta, Frankfort, Clewer-Dukes Hill-Morgenzon (CDM) and Rietfontein - located near the towns of Pilgrim's Rest and Sabie in Mpumalanga Province, 370km northeast of Johannesburg;
- The TGME Gold Project contains more than 43 historical mines with a longer-term plan to bring these large shallow goldfields back to production with minimum capital expenditure. Additionally, there is 3.6 Moz of Inferred Mineral Resources available for future development - not included in the Base Case LOM plan;
- Execution ready with Front-End Engineering Design (FEED) of the TGME gold plant complete. Plant designs support long-term growth initiatives;
- Phase 1 of the Initial 12.9 year LOM plan at the processing rate of 540 ktpa with key physical parameters including;
o Gold ore production build up over the first 41 months is 45 ktpm from the initial four mines;
o Free-milling stand-alone processing plant, with dore produced on site to produce 80 - 100Koz p.a. @ 5.18 g/t recovered gold - at 87.1% gold recovery rate;
o First gold production is scheduled for Q2, 2024
o Gold plant expected to produce over 100koz/pa by the third year of production;
o Recommission of existing on-site Tailings Storage Facility (TSF);
o LOM plan outlines a recovery of 1.08 Moz gold from 1.24 Moz mined;
o LOM plan includes 558koz Proven/Probable Reserve covering over 7 years of mining and 662Koz of Inferred Mineral Resource;
o The focus of the mining strategy remains on extracting all the mineable Mineral Resources, including 53% of Inferred Mineral Resources; and
o Over 3 Moz of Inferred Mineral Resources available for future development are not included in the Base Case LOM plan.
- Under average gold prices of US$1,642 / oz (A$2,189 / oz), the FS demonstrates strong financial returns (based on LOM plan), including:
o Undiscounted free cash flows of US$508m (A$678m), pre-tax US$717m (A$956m);
o NPV (at a 10% discount rate) of US$219m (A$292m), pre-tax US$324m (A$432m);
o Capital payback period of 31 months;
o Pre-tax IRR of 65%;
o Combined Underground Projects have an AISC of US$834/oz (A$1,112/oz); and
o Peak Capital requirement is US$77m (A$103m) , total capital US$174m (A$232m)
- Potential upside beyond the FS includes:
o Phase 2 - Increase production to include 7 mines, with an expanded processing plant to 80 ktpm producing up to 160 koz p.a. within five years;
o Enlarging mineral resources via exploration targets, alongside the incorporation of additional mines from 40 neighbouring historical mines - located within a short distance to the planned plant;
o Adoption of ESG fundamentals during the planning, design and development stages of the project, which aims to deliver a reduction in energy consumption, diversify the talent pool, and attract suppliers / contractors who utilise sustainable products;
o Tendering of mine services contracts in South Africa to achieve the most competitively priced outcome; and
o All current reserves and LOM material are hosted in shallow orebodies.
- Two scheduling strategies have been investigated, namely:
o Base Case: LOM Plan targeting the total Mineral Resources (Measured, Indicated and Inferred); and
o Ore Reserve Plan: LOM Plan targets only Measured and Indicated Mineral Resources.
Both schedules are presented in Table 1 to 3, Appendix A*, and both demonstrate strong project economics.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/8T5K1YCB
Bill Guy, Chairman
Theta Gold Mines Limited
T: + 61 2 8046 7584
E: billg@thetagoldmines.com
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