The Rietfontein project contains a total JORC resource of 2.55 million tonnes at 11 g/t gold for 905,000 ounces of gold.
The project is situated in the historical gold mining area of Pilgrims Rest in South Africa, which has historically produced over 6 million ounces at 10 g/t gold.
Stonewall has estimated a base case pre-tax net present value of US$114 million for the project, with a payback period of two years.
The initial Production rate of 200,000 tonnes per annum is expected to deliver an average of 60,000 ounces of gold per annum.
It is worth noting that the project could potentially fall within the lowest quartile of operating costs globally, with an estimated operating cost of US$417 per ounce.
Stonewall’s initial peak funding requirement is US$31 million for upgrading and refurbishing the existing processing plant and establishing initial underground development and related infrastructure.
The results of the Rietfontein study provide a strong encouragement for Stonewall to commit to the next stage of exploration and development.
A drilling program is currently being planned with a view to increase the confidence level of the resource by upgrading the quantity of the indicated resource.