Name of the Project
TGME underground project.

Location
Mpumalanga, South Africa.

Project Owner/s
Theta Gold Mines.

Project Description
The project aims to restart historical underground gold mines in Mpumalanga, a prolific gold-mining region.

The project is targeting the Beta, Rietfontein and Frankfort, as well as Clewer-Dukes Hill-Morgenzon (CDM) mines.

In the base case, the project has a mine life of 12.9 years, delivering production of 1.24-million ounces of contained gold over the life-of-mine (LoM) at a processing rate of 540 000 t/y to initially recover 1.08-million ounces of gold.

The project aims to produce 30 000 t a month from the Beta mine, 15 000 t a month from the Rietfontein mine, 15 000 t a month from the Frankfort mine and 10 000 t to 20 000 t a month near the end of the CDM mine’s LoM. The existing mining infrastructure will be used, with the addition of new accesses, underground development and predevelopment of the mining grids to access the planned mining areas at Beta, Frankfort and CDM.

At Rietfontein, the existing adits and underground development will be used with the addition of new development ends, a new decline and the extension of an existing decline.

The mining strategy for the underground operations is to apply mechanised longhole drilling to narrow-reef mining to selectively mine out only the reef channel, with minimal dilution at Beta, Frankfort and CDM.

Rietfontein will be mined conventionally using shrinkage stoping, with hybrid loading methods between trackless load-haul-dump and rail-bound locomotives.

The processing plant will have a feed capacity of 45 000 t a month.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the project has a net present value, at a 10% discount rate, of $324-million at an average $1 642/oz and an internal rate of return of 65%. Based on these figures, the project has a forecast after-tax payback period of 31 months.

Capital Expenditure
The estimated development capital or peak funding requirement is $77-million.

Planned Start/End Date
First gold production is targeted for the second quarter 2024. Beta is scheduled as the first operation to start production, followed by Rietfontein and then the CDM and Frankfort mines, which will start production simultaneously.

Latest Developments
Theta Gold Mines received firm commitments from investors in June to raise a further A$4-million (A$6.02-million) in equity funding to advance its TGME gold plant.

The placement is in addition to the two-tranche, $10-million placement announced in May.

The additional proceeds raised will result in Theta’s issuing a further 46.28-million new shares at A$0.13 a share, along with 23.14-million new attaching options.

The proceeds of the latest placement will also go towards completing detailed engineering for the TGME gold plant; construction tenders; finalising the previously announced planned engineering, procurement and construction contracts for the plant and tailings storage facility construction; and completing detailed debt funding packages and paying existing financing costs.

Key Contracts, Suppliers and Consultants
Met63 (detailed design and costing of the processing plant designed for a feed capacity of 45 000 t a month): and YRC (construction of gold plant, TSF and wastewater dams).

Contact Details for Project Information
Theta Gold Mines, tel +61 2 8046 7584 or email info@thetagoldmines.com.