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Corporate Spotlight

Begin to unlock the 6Moz gold resources, Theta Gold recently completed a Feasibility Study to initially recover ~200,000 ounces gold from open-cut mining over 5 years, with an average All-in-Sustaining Cost of USD764/oz. Our goal is to become a responsible and highly profitable gold mining company.
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Interview with Chairman Bill Guy

RESEARCH REPORT

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DENVER GOLD FORUM

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AFRICA DOWN UNDER

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LAYOUT COMPLETED

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OPTIMISED GOLD PLANT LAYOUT COMPLETED

ASX Announcement 22 August 2019 


Theta Gold Mines Limited (“Theta Gold” or “Company”) (ASX: TGM, TGMO) is pleased to advise shareholders that the Company has completed internal engineering studies to maximize use of the existing permitted plant footprint. The new metallurgical plant layout position will create the flexibility to materially increase the Company’s gold production profile.  This exercise is in terms of the Company’s strategy to achieve a production profile of 100,000 ounces per annum. 


Highlights   

  • Phase 1: 500,000 tpa Open Cut Oxide CIL Plant (Theta Project FS Design May 2019) 
  • Phase 2: Permitted plant space to expand Open Cut Oxide CIL Plant to 1 Mtpa 
  • Phase 3: Permitted Plant space available for Underground Ore process circuit


Following the positive results of the Theta Project Feasibility Study (“FS”) the Company wanted to ensure that, in the future, it had the flexibility to scale production from the FS envisaged gold plant throughput of 500,000 tpa to 1 Mtpa and further to have the ability to treat potential underground ore resources.   The study explored potential future plant expansion possibilities that makes use of TGME’s large footprint of permitted plant area that is currently un‐utilized in terms of the May 2019 FS.  


In terms of the studies undertaken, the process and engineering teams reviewed the ability to expand the plant to 1 Mtpa of open cut oxide ore (see Figure 1 below) and also to further ensure that the plant’s design and spatial layout for Phase 1 is flexible enough to allow for the installation of additional process circuits to expand the plant to Phase 2 and Phase 3.    The proposed new plant will be built with minor design alterations that allow for scaling up to these potential production profiles. This approach will allow the Company to more than double the production profile in future with minimal disturbance to gold production at the Theta Project.  


Chairman Mr Bill Guy stated, “The immediate‐term focus for the Company remains the delivery of the FS production profile with a strategic approach to ensure plant layout allows for future expansion. The company has 6 Moz gold resource under management and the production profile will be key to unlocking full value for shareholders. The engineering team’s optimisation work has demonstrated that the permitted plant area can accommodate multiple plant expansions to increase overall throughput.  


The new plant modifications and layout for the current Phase 1 are not expected to impact on the Theta Project FS Capex."


Figure 1: Plant Layout Showing Expansion Opportunities 


Click here to view the full announcement

QUARTERLY

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Quarterly Report – 1 April to 30 June 2019

ASX Announcement 1 August 2019 


HIGHLIGHTS 

  • Theta Gold Mines increased Mineral Resources (refer ASX release 16 May 2019) 
    • Global Resource increased to 6Moz Au (44.8Mt @ 4.18g/t Au), with a 30% increase for open cut resources (refer Appendix A ‐ JORC Tables) 
    • 1.3Moz open cut resources (13.08Mt @ 3.12g/t Au) 
    • 4.5Moz underground resources (26.3Mt @ 5.4g/t Au) 
  • “Theta Project“ Open Cut Resource 870 Koz (10.1 Mt @ 2.7g/t Au) (Indicated & Inferred; 0‐130m depth) 
    • Maiden Mining Reserve 205 Koz (2.31 Mt @ 2.76 g/t Au at a 0.4 g/t Au cut‐off) (Refer Appendix A Table 2 ) 
  • Feasibility Study for Theta Project (refer ASX release 16 May 2019) 
    • 219 Koz Au delivered to plant (201 Koz Au recovered) from 2.52 Mt @ 2.71 g/t Au (0.4 g/t Au cut‐off) over Life of Mine (“LoM”) 
    • USD 764/oz all‐in sustaining cost (“AISC”) over the 5‐year LoM (bottom quartile for South African producers) (Figure 3) 
    • Total Capital cost of USD34.3 million over LoM (including contingencies), USD21.6 million Capital (excluding contingencies) for a predominantly new Metallurgical Plant   


Theta Gold Mines Limited (“Theta Gold” or “Company”) (ASX: TGM) is pleased to report on its activities for the three months ended 30 June 2019.    Most notably, the Company had a successful period of operations with the release of a positive Feasibility Study for the “Theta Project”, an increase in the global mineral resource to over 6 Moz, and the declaration of an initial Mining Reserve.


Subsequent to the end of the quarter, as announced on 23 July 2019, the Company also entered into subscription agreements with specialist global resource investors for the placement of 53,333,334 shares (voluntarily escrowed until 31 December 2020) at an issue price of $0.15 per share to raise a total of $8,000,000.   The shares are to be issued in three tranches, with the first tranche issued on 25 July 2019 and the other two tranches expected in August and end September (refer ASX release 23 July 2019).


The “Theta Project Feasibility Study”, demonstrated robust project economics and has built a solid case for the Company moving towards development and supports the case for further exploration on this large historical goldfield. The Feasibility Study for the “Theta Project”, viewed as a starter project by Directors, focused solely on the best way to capitalize on the existing permitted gold plant, infrastructure, and the permitted tailings dam which has 2.5 Mt of capacity 


Chairman, Bill Guy commented: “The team has made great progress this quarter and is currently making minor enhancements to the Feasibility Study findings as they complete more detailed work on site.  Permitting is in progress, additionally, the central area which includes “Theta Project” has been subject to a topographical survey (Lidar) to assist planning and project development”.


The Feasibility Study highlights the Theta Project as an exciting starter project which will allow the Company to unlock the potential of the East Transvaal goldfield with modern mining and exploration methods.  The project will act as a proof of concept that modern open cut mining is viable in a region that has historically been operated as an underground goldfield.  Success at Theta Project can potentially be replicated across the whole goldfield.


The Theta Project has a number of unique geological features that have a positive effect on mining and costs.   The reef systems are flat dipping between 2‐7 degrees horizontal and the high grade gold reefs are oxidised which leads to high recoveries.    In addition, the host sediments are generally extremely fractured leading to reduced rock strength and reduced mining costs (refer Section 1.2 Geology effect on Financials and Costs) “.    


Current Work Program   

The work program for the September 2019 Quarter will include completion of a Lidar survey over the central mine area around the TGME Gold Plant.    The Lidar survey will deliver topographic accrete for earthworks mining activities, refine mineral resource calculations and future civil development.


Other work includes permitting, preparing exploration programs, hosting potential mine contractors, and examining local infrastructure requirements for the mining project.    Post feasibility detail design work is in progress as well as evaluating critical long lead items. Theta Gold has also started to explore the market for key individuals who will be able to drive the project towards production should the permitting stage be successfully concluded.


Click here to view the full announcement

VIDEO

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