The core focus within the TGME project is the Theta Gold Project, which hosts an Ore Reserve and is the subject of a feasibility study released today.
The company aims to build a solid production platform from the Theta Gold Project based primarily around shallow, open‐cut resources.
Theta gold’s chairman Bill Guy said: “Theta Gold is fast‐tracking the company’s very large Mineral Resource into an increased Ore Reserve.
“The historical mining techniques of the mineral field in which we operate has meant the company has traditionally carried a large percentage of its Mineral Resources in Inferred categories.
“We have shown in a very short period of time that we have the capacity to deliver an initial Ore Reserve and extra ounces into the Theta Project (Open Cut).
“The results have been as planned and we are very excited about the potential to follow‐up these results with future reserve conversions.”
Next phase of drilling to be revealed shortly
Guy added: “The drill program at the Theta Project increased the Indicated resources to 358 Koz of contained gold, inclusive of the discovery of two Reefs (Shale & Bevetts).
“Theta Gold Mines is pleased to be breathing life into this large goldfield, delivering reserves and making new discoveries.
“Following this success, the exploration team is now planning the next phase of our drilling program, which we look forward to announcing to shareholders shortly."
Feasibility study confirms commercial viability for open-pit mine
A feasibility study also released today targeting a small portion of the Theta Hill deposit has forecast a bottom-quartile cost open-pit gold operation.
The starter operation has forecast 200,905 ounces to be produced over 5 years generating free cash flow of US$65.7 million.
Guy said: “Despite only a small part of the resource base being converted into a mining reserve, the Feasibility Study confirms that the project has very favourable economics and viability.
“The remaining unconverted resource will be subsequently drilled out and I expect that further resources will be converted into reserves.
“Furthermore, the high-grade ore deposits at Theta appear to extend to the south into MR341 (Figure 1).
“In the near future we expect to drill MR341 and look forward to potentially adding significant additional reserve/resources to the Theta Project.
“The results of the Feasibility Study have confirmed the economic viability of developing an open cut mine at the Theta Project.”