Theta Gold Mines Ltd (ASX:TGM) (OTCMKTS:TGMGF) remains on track to begin gold production from its South African project with trial mining scheduled to begin this quarter.
Over the last 12 months, the company has advanced its plans to deliver a rapid path to gold production, including a new optimised mine schedule for the Theta Starter Open Pit Project.
The selection of experienced mining contractor Digmin Group for the starter project will allow TGM to rapidly mobilise trial mining operations.
Production goal
In its annual report chairman Bill Guy said: “The company has 6 million ounces of gold under management and a near-term production asset being the Theta Starter Open Pit Project.
“The new multiple-mines strategy delineated by the board set a production goal of 160,000 ounces per annum within a five-year period, offering a clear growth profile in production and share value.”
Theta Gold Mines has also completed a new optimised mine schedule to take advantage of a strong gold price and it has completed engineering and metallurgical studies.
The company is now preparing finances for the construction of the gold plant.
Market capitalisation grows
The company’s market capitalisation exceeded $100 million during the year and now stands at approximately $110.1 million, reflecting the strong economics of the starter Theta Project Feasibility Study.
There has been a steady repositioning of the company from exploration to development as it looks towards the next major transition to producer.
Theta Gold Mines holds a range of prospective gold assets in a world-renowned South African gold mining region.
These assets include several surface and near-surface high-grade gold projects which provide cost advantages relative to other gold producers in the region.
Five-year plan
Guy said that the company had a five-year plan which targeted four mine developments - Theta Starter Open Pit Project (MR83), Theta Open-pit Extension (MR341) and the Rietfontein and Beta underground mines.
He said: “This four-mine plan provides the company with a clear growth strategy of combined open pits and underground resource of over 2.75 million ounces with only the Theta starter-pit portion of this resource included in the optimised study.”
All ore is planned to be processed within the permitted TGME plant footprint area with the new 600,000 tonnes per annum CIL plant designed to be readily expandable to cater for 1.2 million tonnes per annum of oxide ore with modest capital expenditure.
Positive economic studies
Studies demonstrate that profitable mining is achievable on other project areas across the 620 square kilometres of goldfield under the management of the company.
Guy said: “We expect an exciting 2021 as we work towards bringing the stage 1 Theta Starter Open Pit Project online.
“In parallel, the company has begun preliminary work on the underground mines as it looks at all opportunities to add value for the shareholders.”