ORECORP Limited has announced the Definitive Feasibility Study (DFS) for the Nyanzaga Gold Project in Sengerema, Mwanza that confirmed a project with robust economic results.
The study reveals that Nyanzaga has compelling metrics on the back of strong gold production over long mine life.
Under the proposed concurrent open pit and underground mine schedule, the Nyanzaga open pit will provide the base tonnage of ore over the life of the mine (LOM).
The firm statement said yesterday that ore production, from both the Nyanzaga and Kilimani open pits, is expected to average 1.32 grammes per tonne (g/t) of gold. The combined open pit strip ratio is 3.7:1 with total material mined from the open pits expected to be 131Mt comprising 103Mt waste and 28Mt ore.
Underground ore is expected to average a grade of 3.55 grams per tonne (g/t) of gold. A total of 14.39 metric tonnes (Mt) of ore and1.41Mt of waste are expected to be mined from underground.
OreCorp’s CEO and Managing Director, Mr Matthew Yates said Nyanzaga’s DFS has delivered impressive results across all key metrics, demonstrating it can produce more than 242 thousand ounces (koz) of gold per year for 10 years at a low all-in sustaining cost of less than 1,000 US dollars/oz, with annual gold production peaking at 295 koz in year 6.
“Our estimated pre-production capital cost of 474 million US dollars includes underground development, open pit pre-strip, plant, project infrastructure and a 36 million US dollars contingency.
“We expect payback to be within four years post-tax. With a post-tax net present value 5.0per cent of 618million US dollars and internal rate of return of 25per cent, Nyanzaga has compelling metrics on the back of strong gold production over a long mine life,” Mr Yates said through the release.
The statement said with the DFS now complete, “We are excited to progress Nyanzaga, targeting first gold in 2025.”
Nyanzaga’s DFS is led by experienced global engineering firm Lycopodium Minerals Pty Ltd, a subsidiary of Lycopodium Limited.
The DFS evaluated the technical and economic viability of various open pit and underground development scenarios and was optimised considering mining, processing and economic factors.
The study delivered an optimal development scenario of 4.0 metric tonnes per annum (Mtpa) with concurrent development of both the open pit and underground operations.
The Project is expected to deliver average gold production of 234 koz per annum over a 10.7-year LOM.