Sibanye-Stillwater gold

A scoping study has shown that AIM-listed Katoro Gold’s Blyvoor gold project in South Africa has considerable potential.

South Africa – In January this year Katoro Gold entered into a binding conditional agreement to form a 50/50 unincorporated joint venture with Blyvoor Gold Operations and its holding company, Target Mine Consulting.

The study, undertaken by Minxcon, shows a life of mine of 25 years building to a production capacity of 500 000 tonnes per month and 35 000 ounces of gold production per annum. Overall production of 661 171 ounces of gold over the 25 years, generating revenue of US$ 992 million.

 Other highlights include a low cost operation with an estimated All-in Sustaining Cost (AISC) of $727 per ounce of gold and an All-in Cost (AIC) of $920 per ounce of gold. Total Project capital costs of $110 million across the life of the project, with peak funding requirement of $36.4 million. The study utilised a gold price of $1,500 per ounce compared to the current price of circa $1,700 per ounce.

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Economically viable

Based on the current data available, Minxcon has estimated the potential mineral resource at Blyvoornear which is used in the study to be 1,290 million ounces of gold with 277 000 ounces in the measured and indicated categories and 1,013 million ounces in the inferred category. Following rigorous independent evaluation and assessment the project demonstrates robust technical and economic viability, says Katoro Gold.

Louis Coetzee, executive chairman of Katoro added, “When Katoro signed the project agreement in January 2020, we believed it represented a unique opportunity for near-term gold production and potentially considerable financial returns.

“We were keen to subject the project to thorough independent validation, and the completion of the scoping study was an important step in that process with pleasing results.  “The study has exceeded the board’s expectations and importantly back our initial confidence by demonstrating the robust technical and economic viability of the project.

 “A detailed review of the study is now underway and a further update to the market will be provided in due course considering the findings in detail and outlining the next steps in project development, including with regard to project level financing negotiations,” he concluded.