Name of the Project
Blyvoor gold tailings retreatment project.

Location
The project is located in Carletonville, Gauteng, South Africa.

Project Owner/s
Katoro Gold.

Project Description
A scoping study has found the project to be technically and economically robust. Potential measured and indicated mineral resources are estimated at 27.6-million tonnes grading 0.31 g/t gold. Inferred resources are estimated 106.03-million tonnes grading 0.3 g/t gold.

The project has a life-of-mine (LoM) of 25 years, with mining and processing planned to be undertaken at 250 000 t a month for the first 36 months, building to a production capacity of 500 000 t a month and 35 000 oz/y of gold. Overall production over the LoM is estimated at 661 171 oz of gold. Further feasibility work is required to complete trade-offs to determine the optimal processing and mining method.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The scoping study has demonstrated an unlevered net present value, at a 5% discount rate, of $131-million and an internal rate of return of 25%, with a payback of 5.3 years from the start of production.

Capital Expenditure
Capital expenditure is estimated $110-million.

Planned Start/End Date
Not stated.

Latest Developments
Katoro Gold has developed a preferred funding strategy for its Blyvoor joint venture in respect of the Blyvoor gold tailings project and says it will involve using different funding instruments.

The announcement follows as the gold and nickel explorer and developer agreed in July to seek to complete the project financing on or before September 30.

The preferred funding strategy secures the necessary funding, which is sufficient to fund the construction and commissioning of a beneficiation plant and auxiliary operations.

This strategy enabled the company to identify and engage with a select number of preferred funding providers with whom it is developing a final funding arrangement for the project.

All these parties have provided formal expressions of interest, with certain milestones having now been agreed to guide a predetermined due diligence process towards a final funding agreement for the project.

The first milestone to be completed is the resource update and upgrade currently under way, which will deliver an updated resource and reserve statement, as well as a South African Code for the Reporting of Mineral Asset Valuation, or Samval, report for the project.

This is expected by the end of October.

Following an initial due diligence investigation, potential funders have started with an in-depth due diligence investigation on the project, which can be completed only upon completion of the work referred to above.  

Key Contracts and Suppliers
Minxcon (scoping study).

Contact Details for Project Information
Katoro Gold, email info@katorogold.com.