Australia-listed Theta Gold Mines has delivered an uplift in the value of its TGME gold mine project in Mpumalanga, South Africa, following the completion of a revised feasibility study confirming post-tax free cash flow of A$1.4-billion over a 13.1-year life-of-mine (LoM).

The updated study outlines a high-margin, long-life operation based on a 6.1-million-ounce gold resource and positions TGME as a potential future midtier producer in one of South Africa’s premier gold regions.

Based on a conservative average gold price of $2 884/oz, the revised feasibility study forecasts aftertax net present value (NPV) of A$689-million ($445-million), an internal rate of return (IRR) of 77%, and all-in sustaining costs of A$1 787/oz.

This is a substantial uplift from the 2022 feasibility study NPV of $219-million and an IRR of 57%, driven largely by higher gold prices that unlocked the ability to profitably mine lower-grade ore.

Peak funding requirements are estimated at A$116-million, with post-tax capital payback expected within 29 months of the start of mining.

The base case mine plan targets production of 1.01-million ounces over the LoM, with average recovered grades of 4.28 g/t and metallurgical recoveries of 86.2%. First gold is scheduled for the first quarter of 2027, with plant construction already under way.

Phase 1 of the TGME development will initially draw ore from four underground mines – Beta, Frankfort, Clewer-Dukes Hill-Morgenzon and Rietfontein – supported by retreatment of historical rock dumps and tailings to provide early cash flow.

Production is expected to ramp up to 45 000 t/m, feeding a free-milling processing plant with capacity of 540 000 t/y. The operation is forecast to produce between 90 000 oz/y and 120 000 oz/y in its early years.

"Phase 1 starts with four mines, but the real upside lies ahead. Vaalhoek, Desire, Glynn’s and dozens of other historic mines give us a clear pathway to scale production beyond 160 000 oz/y," says chairperson Bill Guy, who describes the completion of a revised feasibility study as a "defining moment" for the company.

Over the longer term, the company is targeting expansion to seven mines and processing rates of up to 90 000 t a month.

Front-end engineering design has been completed, and modular plant construction is intended to reduce execution risk and accelerate commissioning. Site works, including earthworks and civils, started in September 2025.

"With modular plant design, proven mining methods, and a skilled local workforce, we are execution ready – first gold is targeted for the first quarter of 2027. From there, the pathway to 160 000 oz/y is clear as additional mines come online.

“This is just the beginning of unlocking one of South Africa’s most prolific goldfields," says Guy.

The current feasibility study covers only four of about 43 historical mines within Theta Gold’s project area, with 3.6-million ounces of inferred resources excluded from the current base case mine plan.