Name of the Project
Blyvoor gold tailings retreatment project.

Location
Carletonville, in Gauteng, South Africa.

Project Owner/s
Katoro Gold.

Katoro entered into a binding conditional agreement to form a 50:50 unincorporated joint venture (JV) with Blyvoor Gold Operations (Blyvoor) and its holding company, Target Mine Consulting, in January 2020.

Project Description
A scoping study completed in May 2020 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 received expressions of interest for funding of an amount significantly more than the peak funding requirement of $36.4-million for the company's Blyvoor JV in respect of the Blyvoor gold tailings project. 

The expressions of interest for funding include a formal nonbinding term sheet for funding, which if agreed and accepted by the Blyvoor JV, will be sufficient to fund up to 40% of the peak funding requirement.

Any funding agreement with the various prospective funders are subject to several principal conditions as set by the prospective funders.

This entails that the JV must complete and deliver a restated resource and reserve statement for the project, and must prepare and deliver an independent valuation report for the project.

Moreover, it must complete due diligence investigations by each of the prospective funders, and the Blyvoor JV, which is currently unincorporated, must be converted into an incorporated venture.

Katoro reports that the technical reports referenced are at an advanced stage of preparation and that final draft versions have been received for review; these will be available for release shortly to the potential funding parties.

In terms of the third condition, prospective funders have started due diligence investigations, with completion subject to receipt of the technical reports.

The JV partners have also agreed to proceed with the incorporation of the unincorporated Blyvoor JV and are negotiating the final terms and conditions of incorporation, which will ensure due alignment with the parties’ rights and interests as captured under the existing unincorporated version of the Blyvoor JV.

The existing Blyvoor JV agreement will remain in place until the Blyvoor JV has been incorporated.

Key Contracts, Suppliers and Consultants
Minxcon (scoping study).

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