15-year life for Twin Hills gold project
By Hilary Mare
OSINO Resources has announced the outcomes of its preliminary economic assessment (PEA) for a gold mining project in central Namibia, the Twin Hills gold project which is now projected to have a life of up to 15 years.
The project which is along strike of the producing Navachab and Otjikoto gold mines is based on an open pit mine that is rapidly being advanced through accelerated exploration drilling and fast-tracked development studies.
Chief executive officer Heye Daun says the company will aim to advance the project to construction stage in the next two years.
“We are very pleased with the results of this PEA which demonstrates that Twin Hills is what we always said it would be, namely a simple, economically robust and attractive open pit gold project with significant upside.
“It is geologically consistent, metallurgically simple and technically low risk with a low capital intensity and significant future upside. We are proud to have been able to deliver this PEA within less than two years of discovery and our vision for the next two years is to unlock its true upside potential and to advance the project to the construction stage.”
The PEA was prepared by Lycopodium Minerals Africa (Pty) Ltd. and contemplates a low-risk, technically simple open-pit mine utilising contract mining and feeding a conventional carbon-in-leach metallurgical plant processing 3.5 million tonnes of mineralised material per annum.
In the first six years, production will average 124 000 oz/y.
The study calculates project capital costs of US$202-million and an after-tax payback at US$1 700/oz of 2.3 years.
The after-tax net present value, using a five percent discount, is estimated to be US$377-million and the internal rate of return 38 percent.
The Twin Hills Gold Project is located within the prospective Damara sedimentary mineral belt. Twin Hills is a sedimentary-hosted, structurally controlled gold deposit that fits the broad orogenic model and is amenable to conventional open-pit gold mining and carbon-in-leach metallurgical processing.