Name of the Project
Nyanzaga gold project.

Location
The Lake Victoria Goldfields region, in north-west Tanzania.

Project Owner/s
OreCorp.

Project Description
A prefeasibility study (PFS) has confirmed a robust project and has determined that a concurrent openpit and underground mine schedule represent the optimum mining sequence.

The openpit will deliver the base load of mineralised material over the life-of-mine and is expected to deliver about 1.75-million ounces of contained gold over its 12-year mine life – an increase of 25%, or 350 000 oz of gold, on the scoping study assessment.

Underground mining will start in Year 1, from a boxcut outside the openpit, and is expected to produce about 1.16-million ounces of contained gold, including underground development material. The underground deposit will be developed to a depth of 800 m below surface, with the deposit remaining open at depth. Detailed metallurgical testwork in the PFS has confirmed gold recovery of 88% through a conventional four-million-tonne-a-year carbon-in-leach processing plant – an increase of 3% on the scoping study figure.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Preproduction capital costs are estimated at $287-million, which includes a $33-million contingency. The change in capital from the $248-million in the April 2016 scoping study is largely because of the change in the mine schedule, resulting in an increased prestrip of 7.1-million tonnes, increasing the cost of the prestrip from $14-million to $36-million.

The process plant capital cost has increased by about $11-million, resulting from the reduced grind size (P80 of 75 μm, compared with P80 of 106 μm) and the inclusion of additional processing equipment to improve plant availability and operability. The higher initial capital cost, compared with the scoping study estimate, is offset by the increased average yearly life-of-mine (LoM) production and overall LoM ounces while retaining consistent capital intensity. Consistent with the scoping study, the capital estimate is based on a contractor mining scenario and, therefore, excludes capital for a mining fleet.

Planned Start/End Date
Not stated.

Latest Developments
OreCorp has completed its A$56-million capital raise, issuing the last of the 70-million shares announced in June.

OreCorp raised an initial A$52.4-million of its targeted capital raise on June 25 through the issue of the first 65.5-million shares to domestic and overseas institutional and sophisticated investors, and has said that it has now completed the placement of the remaining 4.5-million shares, bringing its share placement to a close.

Proceeds from the capital raise will be used for the development of the Nyanzaga gold project, following the approval by the Tanzanian Cabinet of Minister of a special mining licence.

The funds will enable OreCorp to complete a definitive feasibility study and predevelopment activities, and will fund exploration activities at OreCorp’s Western Australian assets and general working capital.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
OreCorp +61 8 9381 9997.