A definitive feasibility study (DFS) into the Nyanzaga gold project, in Tanzania, has estimated that the project will cost $474-million to develop.
ASX-listed OreCorp on Monday reported that the combined openpit and underground mine would produce 295 00 oz/y of gold at peak, averaging 250 000 oz/y for the first eight years of the mine life, and 242 000 oz/y for the first ten years.
Life-of-mine average gold production is estimated at 234 000 oz/y over the nearly eleven-year mine life.
The openpit is scheduled to deliver 1.2-million ounces over the project life, with the underground mining operation to deliver 1.64-million ounces. The underground operation will be developed to a depth of around 700 m below surface, with the deposit remaining open at depth.
All-in sustaining costs for the life of the operation are estimated at $954/oz.
The DFS estimated a pre-tax net present value of $926-million and an internal rate of return of 31%, based on a gold price of $1 750/oz.
OreCorp told shareholders on Monday that first gold from Nyanzaga is targeted for the first half of 2025.
“Nyanzaga’s DFS has delivered impressive results across all key metrics, demonstrating it can produce more than 242 000 oz/y of gold for 10 years at a low all-in sustaining cost of less than $1 000/oz, with annual gold production peaking at 295 000 oz in Year 6,” said CEO and MD Matthew Yates.
“Our estimated pre-production capital cost of $474-million includes underground development, openpit pre-strip, plant, project infrastructure and a $36-million contingency. We expect payback to be within four years post-tax.
“With a post-tax net present value of $618-million and internal rate of return of 25%, Nyanzaga has compelling metrics on the back of strong gold production over a long mine life,” Yates said.
“We have appointed Auramet as our debt advisers and commenced financing discussions with local and international banks and financial institutions. With the DFS now complete, we are excited to progress Nyanzaga, targeting first gold in 2025.”
SOURCE: MINING WEEKLY