Name of the Project
Theta Hill opencut gold project.

Location
Mpumalanga, South Africa.

Project Owner/s
Theta Gold Mines.

Project Description
The project has probable reserves of 2.31-million tonnes grading 2.76 g/t gold. Total mineral resources are estimated at 44.79-million tonnes grading 4.18 g/t gold.

The project includes the Columbia Hill deposit and part of the Theta Hill deposit within Mining Right 83, which is fully authorised for underground mining, with a modification to include openpit mining in progress.

Modified terrace mining has been selected as the mining method and is suited to the mountainous profile of the topography. This method allows for the land to be reformed back to its original contours.

The May 2019 feasibility study envisaged a new carbon-in-leach plant, based on about 500 000 t/y of ore, with throughput being restricted by the existing tailings storage facility capacity of 2.5-million tonnes.

However, a plant optimisation study completed in January 2020 found that the throughput capacity at the plant could increase from the originally envisioned 500 000 t/y to 600 000 t/y at minimal costs. The increased design parameters incorporate the newly bought 2.5 MW ball mill. The new mill arrived at the mine site in March 2020 in preparation for construction.  

The mine is expected to produce 200 905 oz of gold over the five-year life-of-mine.

The existing mine’s site footprint and 2.5-million-tonne tailings storage facility are permitted. The mine site has sheds, administration buildings and roads. Once financed, the new gold plant can be built in nine months on the existing mine site. Once the mine is in production, other existing deposits can be brought on line as the project develops.

Potential Job Creation
Not stated.

All-in Sustaining Costs/All-in Costs
Not stated.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at a 5% discount rate, of $49.6-million and an internal rate of return of 65.1%, with a payback of 1.2 years from the start of production.

Capital Expenditure
The feasibility study has indicated a total capital requirement of $34.26-million.

Planned Start/End Date
The project will take about nine months to construct after the necessary approvals have been received.

Latest Developments
Theta has noted that the 20% increase in the new plant design proposed in the January 2020 optimisation study will be achieved with less than a 1% change to the processing plant capital of $24.85-million, estimated in the feasibility study.

The company remains focused on pursuing the development of Theta Hill as the group’s starter mining operation. It will continue to work with the Department of Mineral Resources and Energy, the local community and other stakeholders towards securing the relevant mining permit amendments for openpit mining. In addition to permitting, the company will also continue to engage with potential financiers to secure the required funding for the project development.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Theta Gold Mines, tel +61 2 8912 2126 or email info@thetagoldmines.com.