Name of the Project
Theta Hill gold project.

Location
The project is located near the historical gold mining town of Pilgrim’s Rest, in Mpumalanga, South Africa.

Client
Stonewall Resources.

Project Description
A scoping study on Theta Hill has shown that the historical mines of this goldfield have opencut oxide gold potential.

The project contains an opencut Joint Ore Reserves Committee- (Jorc-) compliant resource of 4.48-million tonnes grading 4.14g/t gold for 600 000 oz.

This scoping study shows the potential for average gold production of about 67 000 oz/y for 7.6 years.

The project involves in-pit waste emplacement and strip-style mining of three gold-bearing seams using surface miners among standard mining equipment, including dozers, rock-breakers and minimal drill-and-blast.

The site is situated within 2 km by road of the existing, fully permitted carbon-in-leach (CIL) plant, with an $11.1-million capital upgrade planned.

The CIL plant refurbishment and upgrade will involve installing a mobile crushing unit, with a new 1.2 MW ball mill and gravity circuit. A portion of the existing CIL tanks will be used, with additional tanks added.

A refurbished elution circuit and gold room will be installed, with reagent sections replaced.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Theta Hill shows a post-tax net present value, at a 7.5% discount rate, of about $152-million and an internal rate of return of about 132%, with a payback of about 7.4 months.

Value
The project will require a peak capital requirement of $16-million.

Duration
The project will take ten months to construct.

Latest Developments
Following the positive scoping study, Stonewall’s board has decided to progress Theta Hill towards a decision to mine in 2019, with a full feasibility study now planned. The study is targeted for completion in the first quarter of 2019.

Further, Stonewall intends to convert part of its large 5.8-million-ounce mineral resource into a mining reserve. Additional drilling is under way at Theta Hill to improve the Jorc confidence category to primarily indicated ahead of reserve declaration scheduled for the first quarter of 2019.

Key Contracts and Suppliers
METS (process design).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Stonewall Resources, tel +61 2 9460 2021 or email info@stonewallresources.com.