Highlights
- 15-year Life-of-Mine (“LOM”) and 3.5 million tonnes per annum (“mtpa”) processing capacity.
- LOM gold recovery of 90.9% utilising conventional 3-stage crushing/ball milling and carbon-in-leach processing layout.
- Average annual gold production for years two to six of 124,000 ounces per year at an average operating cost of US$827/oz produced. Average LOM gold production of 99,000 ounces per annum.
- Pre-production capital cost estimate of US$176 million plus US$26m contingency (15%).
- Cumulative LOM net cash flow of US$858 million (pre-tax) and US$560 million (after-tax).
- Net Present Value (“NPV”) of US$579 million (pre-tax) and US$377 million (after-tax) at a 5% discount rate with a respective after-tax payback period of 2.3 years and internal rate of return (“IRR”) of 38%, using a base gold price of US$1,700/oz.
- PEA based on the previously reported Mineral Resource block model from the Technical Report, using a cut-off grade of 0.3 g/t Au, resulting in an Indicated Mineral Resource of 14.0 million tonnes (“Mt”) at 0.98 g/t Au and an Inferred Mineral Resource of 46.2 Mt at 1.02 g/t Au, derived from 69,000m of drilling.
- An additional 31,987 m of infill and expansion drilling has been completed at Twin Hills since the April 1, 2021 effective date of the Technical Report, but has not been included in the PEA. This will be included in subsequent updates of the Mineral Resource once the drill program has been completed and all corresponding assay results have been received.
- Ongoing infill, resource expansion and brownfields exploration drilling with 10 drill rigs, in addition to ongoing project optimization, is likely to result in improved production parameters and economic outcomes to be published as part of the feasibility study which is expected to be completed during H1 of 2022
Vancouver, British Columbia, July 14, 2021 – Osino Resources Corp. (TSXV:OSI) (FSE:RSR1) (OTCQB:OSIIF) (“Osino” or “the Company”) is pleased to announce the results of the preliminary economic assessment (“PEA”) for Osino’s Twin Hills Gold Project (“Twin Hills“ or the “Project”), which is located in central Namibia and is rapidly being advanced through accelerated exploration drilling and fast-tracked development studies.
The PEA was prepared by Lycopodium Minerals Africa (Pty) Ltd. (“Lycopodium”) in accordance with National Instrument 43-101—Standards of Disclosure for Mineral Projects (“NI 43-101”) and contemplates a low-risk, technically simple open-pit mine utilizing contract mining and feeding a conventional carbon-in-leach (“CIL”) metallurgical plant processing 3.5 million tonnes of mineralized material per annum (“mtpa”).
Heye Daun, Osino’s co-founder and President & CEO commented: “We are very pleased with the results of this PEA which demonstrates that Twin Hills is what we always said it would be, namely a simple, economically robust
and attractive open pit gold project with significant upside. It is geologically consistent, metallurgically simple and technically low risk with a low capital intensity and significant future upside. We are proud to have been able to deliver this PEA within less than 2 years of discovery and our vision for the next 2 years is to unlock its true upside potential and to advance the project to the construction stage.”
PEA Overview and Financial Analysis The Twin Hills Gold Project is located within Namibia’s prospective Damara sedimentary mineral belt, in proximity to and along strike of the producing, open-pit Navachab and Otjikoto gold mines. Twin Hills is a sedimentary hosted, structurally controlled gold deposit that fits the broad orogenic model and is amenable to conventional open-pit gold mining and carbon-in-leach metallurgical processing.
The table below summarizes the results and key valuation metrics of the PEA on a pre- and post-tax basis.
Qualified Persons & Technical Report
Anton Geldenhuys
Mr Anton Geldenhuys is a Principal Consultant of CSA Global South Africa (Pty) Ltd. and holds a BSc (Hons) Geology degree from Rand Afrikaans University (South Africa) and an MEng from the University of the Witwatersrand (South Africa). He is a member in good standing of the Geological Society of South Africa and a registered Professional Natural Scientist (PrSciNat) with the South African Council for Natural Scientific Professions (SACNASP, membership number 400313/04). He is familiar with NI 43-101 and, by reason of education, experience in exploration, mineral resource development, evaluation of mining projects and professional registration fulfils the requirements of a Qualified Person as defined in NI 43-101. Mr Geldenhuys’ experience includes 20 years continues professional experience in the exploration and mining industry and has reviewed and approved the scientific and technical information in this news release related to Mineral Resources.
Grahame Hetherington
Mr Grahame Hetherington is a Principal Process Consultant of Lycopodium Minerals Africa (Pty) Ltd. He holds a BEng (Hons) degree in Metallurgical Engineering from the University of Newcastle-upon-Tyne (UK) and he is a
member of the Australian Institute of Mining and Metallurgy (membership number 318140). Mr Hetherington’s experience includes 30 continuous years in the minerals processing industry in production and project design and execution. He is familiar with NI 43-101 and, by reason of education, experience in exploration, mineral resource development, evaluation of mining projects and professional registration, he fulfils the requirements of a Qualified Person as defined in NI 43-101. He has been involved with the Project since July 2020 and has reviewed and approved the scientific and technical information in this news release related to Mineral Processing and
Metallurgical Testing.
Werner Moeller
Mr Werner Moeller is a Director and Principal Mining Engineering Consultant of Qubeka Mining Consultants CC based in Windhoek, Namibia. He holds a BEng (Hons) degree in Mining and Industrial Engineering from the
University of Pretoria (South Africa). He is a member in good standing of the Australian Institute of Mining and Metallurgy (membership number 329888), the Canadian Institute of Mining, Metallurgy and Petroleum (membership number 708163) and the South African Institute of Mining and Metallurgy (membership number 704793). Mr Moeller has been practicing his profession continuously since 2002 and has twenty years of mine
planning and operations experience across a range of African projects. He is familiar with NI 43-101 and, by reason of education, experience in exploration, mineral resource development, estimation and reporting of ore reserves, evaluation of mining projects and professional registration, he fulfils the requirements of a Qualified Person as defined in NI 43-101. He has been involved with the Project since September 2020 and has reviewed and approved the scientific and technical information in this news release related to Mining.
David Underwood
David Underwood, BSc. (Hons) is Vice President Exploration of Osino Resources Corp. and has reviewed and approved the scientific and technical information in this news release related to geology and exploration. He is a
registered Professional Natural Scientist with the South African Council for Natural Scientific Professions (Pr. Sci. Nat. No.400323/11) and a Qualified Person for the purposes of National Instrument 43-101.
SOURCE: Osino Resources Corp
DATE: July 14, 2021