Theta Gold Mines Limited ('Theta Gold' or 'Company') (ASX:TGM) is pleased to announce the results of its metallurgical test work completed at MAK Analytical Laboratories.
The laboratory test results achieved were in line with our expectations and further confirming the flowsheet development work undertaken in the feasibility phase (2022). The combined total surface sources (tailings dams and rock dumps) around the TGME Plant contain 174,000 oz gold.
The samples were collected during the confirmatory drilling and sampling program completed by SGS (South Africa) Pty Ltd ('SGS') in March 20241 in conjunction with Power China representatives. The drill results for the TGME Main Tailings Storage Facility ('Main TSF') have confirmed that the tailings dams contain gold at the expected grades (ASX Release May 2024) 2.
SGS South Africa (Pty) (Assay Laboratory) Ltd, engaged by TGM's preferred Engineering Procurement and Construction ('EPC') partner Yellow River Co., Pty ('YRC') (a subsidiary of Power Construction Corporation of China ('PowerChina')) to complete a drilling and sampling program at various tailing dams around the TGME plant.
The program is now complete with a total of 407 meters drilled over the TGME Main, Blyde and Glynns Lydenburg TSFs with 117 meters drilled into the TGME Main TSF. Together with Power China, the immediate focus understanding the gold recovery of the TGME Main TSF to allow mill feed at the start of the project. Metallurgical test work is now completed, allowing the Company the possibility of adding surface sources (tailings and historic rock dumps) to its early production schedule and thereby generating early cash flow ahead of the planned underground development.
Theta Gold Chairman Mr Bill Guy stated: 'The Company has now completed the Metallurgical test work, drilling of tailings dams and sampling of the rock dumps, confirming grades and gold recoveries. 'Theta Gold currently records 174,000 ounces of gold JORC Resources across numerous tailings, dams, and dumps around the gold plant. The company will now carefully examine the possibility of bringing forward gold production ahead of its planned underground operations by including high-grade zones from our surface sources'.
Contact:
Tel: + 61 2 8046 7584
Email: billg@thetagoldmines.com
ABOUT THETA GOLD MINES LIMITED
Theta Gold Mines Limited (ASX: TGM | OTCQB: TGMGF) is a gold development company that holds a range of prospective gold assets in a world-renowned South African gold mining region. These assets include several surface and near-surface high-grade gold projects which provide cost advantages relative to other gold producers in the region. Theta Gold's core project is located next to the historical gold mining town of Pilgrim's Rest, in Mpumalanga Province, some 370km northeast of Johannesburg by road or 95km north of Nelspruit (Capital City of Mpumalanga Province). Following small scale production from 2011 - 2015, the Company is currently focusing on the construction and financing of a new gold processing plant within its approved footprint at the TGME plant. The company has completed a FS in July 2022 for the first four mines Beta, CDM, Frankfort and Rietfontein (TGME Underground Project). The Base Case LOM plan will comprise a 12.9-year mining operation starting in 2023 and delivering production of 1.24 million ounces of contained gold. The estimated development capital or peak funding requirement is USD77 million (AUD102 million), with the Project forecast to generate a pre-tax NPV10% of USD324 million (AUD432 million) and pretax Internal Rate of Return (IRR) of 65% at the forecast gold price of averaging USD1,642/oz over the LOM. The Company aims to build a solid production platform to over next 5 years to 160kozpa based primarily around shallow, open-pit or adit-entry shallow underground hard rock mining sources. Theta Gold has access to over 43 historical mines and prospect areas that can be accessed and explored, with over 6.7Moz of historical production recorded. Theta Gold holds 100% issued capital of its South African subsidiary, Theta Gold SA (Pty) Ltd ('TGSA'). TGSA holds a 74% shareholding in both Transvaal Gold Mining Estates Limited ('TGME') and Sabie Mines (Pty) Ltd ('Sabie Mines'). The balance of shareholding is held by Black Economic Empowerment ('BEE') entities. The South African Mining Charter requires a minimum of 26% meaningful economic participation by the historically disadvantaged South Africans ('HDSAs'). The BEE shareholding in TGME and Sabie Mines is comprised of a combination of local community trusts, an employee trust and a strategic entrepreneurial partner.
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