Osino Resources is pleased with the outcomes of its preliminary economic assessment (PEA) for a gold mining project in central Namibia and CEO Heye Daun says the company will aim to advance the project to construction stage in the next two years.
The PEA for the Twin Hills gold project, which is along strike of the producing Navachab and Otjikoto gold mines, is based on an openpit mine that will produce an average of 99 000 oz/y at an all-in sustaining cost of US $945/oz over 15 years.
In the first six years, production will average 124 000 oz/y. The study calculates project capital costs of $202-million and an aftertax payback at US $1 700/oz of 2.3 years. The aftertax net present value, using a 5% discount, is estimated to be US $377-million and the internal rate of return 38%.
“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 openpit gold project with significant upside. It is geologically consistent, metallurgically simple and technically low risk with a low capital intensity and significant future upside,” says Daun.
“We are proud to have been able to deliver this PEA within less than two years of discovery and our vision for the next two years is to unlock its true upside potential and to advance the project to the construction stage.”