Twin Hills gold on fast forward after positive prefeasibility
The Twin Hills gold play has just moved an important step forward with the release of the prefeasibility, indicating that the nearly N$6.5 billion project is feasible at a gold price of US$1700 per troy ounce.
Even at a gold price of US$1400 per ounce and applying a 10% discount to the whole project, the net present value still remains a comfortable US114 million or N$1.9 billion.
The project developer, Osino Resources, is a Canadian gold exploration and development company focused on the fast-tracked development of the Twin Hills gold project in Namibia. Twin Hills is at an advanced stage of exploration and development with more than 220,000 metres of drilling completed since its grassroots discovery.
Osino Resources Chief Executive, Heye Daun said they are very pleased with the results of the prefeasibility study which demonstrates that Twin Hills has the potential to be developed into a long-life, low-cost and economically robust open pit gold mine.
“The study underlines that the gold project’s geology is consistent, its metallurgy is simple and that it involves low technical risk and low capital investment,” said Daun. “Osino Resources is proud to deliver this prefeasibility study within thee years of our discovery of the Twin Hills gold deposit, and our next objective is to optimise and improve the project further, advancing it to the construction stage in the next year.”
“I am looking forward to advancing Osino’s ambitions to build a gold mine with a 17-year life and making a significant contribution to socio-economic development in Nambia in this way,” he said.
The Twin Hills project is located within Namibia’s prospective Damara sedimentary mineral belt in close proximity to the producing Navachab and Otjikoto gold mines.
The Twin Hills project will be completed at an overall capital cost of US$375 million, with an investment payback period of 2.2 years. Its processing plant will have the capacity to process 5 million tonnes of ore per year and annual gold production for the first ten years is expected to be 171,000 ounces at an all-in sustaining cost of US$909 per ounce.
“We are now focused on starting a definitive feasibility study for the project before the end of this year and starting project implementation as soon as we secure project finance,” said Daun.
