Tanzania – These gold reserves are available to be mined over a 15-year initial life of mine through conventional open pit mining methods.
“Today is a great day in the history of the company as this study assigns a net positive value of US$243 million at the Buckreef project, using a 5% discount rate and a gold price of $1 250/oz. We are completely delighted with results of this independent feasibility study. We have steadfastly pursued our goals at Buckreef and this study clearly indicates the value of the project which we expected was present. We anticipate even more mineral reserves to become known after implementing the planned close spaced grade control drilling programme,” says Executive Chairman, James E. Sinclair.
The completion of the MFS was led by an independent consulting team from MaSS Resources of Tanzania and is dated effective as of 27 April 2017. The MFS was prepared in accordance with NI 43-101.
Additional technical support was provided by the company’s internal technical team incorporating and updating the previously published preliminary economic assessment study results by Venymn of South Africa. Other historical conducted over the years on this historic deposit were also included for continuity.
The Buckreef project is in the Geita District in Lake Victoria Greenstone Belt in central Tanzania, East Africa.
“Our initial capital costs are estimated at a modest $32 million dollars. That amount includes the first year’s pre-stripping programme. The mining and processing components are simple, straight forward operations utilising common earthmoving methods and equipment. Our plant design makes use of standard Gravity/CIL plant technology used worldwide,” says acting CEO Jeffrey Duval.
“Shareholders will be extremely pleased with the results of our MFS. We encourage shareholders to take time to review the study in its entirety, particularly to gain a thorough understanding of the project design, and to note the discussion on the potential for future underground development of Buckreef. The MFS validates everything we have known about our Buckreef project, and is now officially defined in this study,” Duval concludes.
The highlights of the MFS include:
- 1.064 Moz of open pittable gold reserves to be mined over the life of the project.
- Conventional open pit mining methods selected in pit designs.
- Over an initial 15-yr life of mine, a total of 17.49 Mt of ore with a strip ratio of 8.12:1 (waste to ore) will be mined.
- Overall recoveries from the flotation and cyanide leach circuits are expected to be 89% and 93% for primary ore and saprolite ore, respectively.
- Over the life of the mine an average of 53 534 oz gold per annum will be produced as doré.
- Pre-existing stockpile (ROMPAD) ore totaling 119 726t grading 1.86 g/t to be used for process plant commissioning.
- Discussion of future underground development potential.
- Life of mine capital cost outlay estimated at $59.6 million and sustaining capital, excluding closure costs.
- Cash operating costs of $696/oz.
- Generation of a positive NPV of $243 million at a 5% discount rate and an IRR of 53.7%