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- Theta Gold Mines (TGM) has released its maiden underground pre-feasibility study (PFS) for its TGME Underground Project in South Africa
- Over nearly eight years, 419,000 ounces of gold will be delivered with earnings before interest tax depreciation and amortisation of US$241.2 million (around A$317 million)
- Notably, this result is only from three of the 43 historical mines that Theta has access to
- A further 3.5 million ounces of gold in inferred resources are also available to be upgraded to the measured and indicated resource category from the project
- On the market this afternoon, Theta is in the grey and trading at 26 cents per share
Theta Gold Mines (TGM) has released its maiden underground pre-feasibility study (PFS) for its TGME Underground Project in South Africa.
The underground project forms part of the Central Northern area of the project and includes the Beta, Frankfort and CDM Mines.
Over nearly eight years, 419,000 ounces of gold will be delivered with an earnings before interest tax depreciation and amortisation of US$241.2 million (around A$317 million).
By the third year, Theta is expecting production to equal over 60,000 ounces of recovered gold per year.
Notably, this result is based on just 16 per cent of the 4.5 million ounce underground gold resource and includes three mines out of 43 historical mines available to Theta.
A further 3.5 million ounces of gold in inferred resources are also available to be upgraded to the measured and indicated resource category from the project.
“The TGME Underground pre-feasibility study clearly demonstrates that the extensive flat high-grade narrow reef systems of East Transvaal Goldfield can be mined economically, and modern mechanized mining and metallurgy can deliver strong project economics,” Chairman Bill Guy said.
“Now that the company has generated a PFS for the TGME Underground Project, we can optimize our development strategy based on confident numbers,” he added.
Theta will continue to build up its mining reserves during the year by progressing Rietfontein and other mines through to PFS level.
Previously the company announced a five-year plan, which targets four mine developments; the Theta open-pit starter project, the Theta open-pit extension and the Rietfontein and Beta underground mines.
“The company will soon be a key player in the South African mining industry, a sector that has produced more tons of gold than any other country when measuring gold bullion tonnage,” Bill told the market.
“Over 40 per cent of the world’s gold has come from the small corner of South Africa that we call home,” he added.
On the market this afternoon, Theta is in the grey and trading at 26 cents per share at 1:42 pm AEST.
