Canada-based Osino Resources is contemplating a N$6.4 billion gold mine in Namibia, which will produce about 200 000 oz/y at an all-in sustaining cost of N$15 700/oz.
This is according to the Twin Hills project prefeasibility study (PFS), the results of which were announced on Tuesday.
The PFS calculated a net present value of N$8.7 billion and an internal rate of return (IRR) of 26%, using a 5% discount rate, for the project, which has a 2.3 year payback period.
Osino said that its capital estimate, which also included N$345 million for a solar plant, reflected the recent dramatic price escalations, especially in steel, reagents, diesel prices and transport costs.
The PFS, prepared by Lycopodium Minerals Canada, contemplates a low-risk, technically simple openpit mine using contract mining and feeding a conventional carbon-in-leach metallurgical plant processing five-million tonnes a year of mineralised material.
“We are proud to have been able to deliver this PFS within three years of discovery and our vision for the next year is to optimise and improve the project further and to continue to advance Twin Hills to the construction stage,” commented president and CEO Heye Daun.
He added that Osino expected imminent, significant progress on the permitting and project financing side, which would assist in continuing to fast-track the project.
A definitive feasibility study would start before the end of the year. This four-month study would be based on the flowsheets and design concepts developed for the PFS.