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The pace of the gold plant build of the TGME gold mine project in South Africa's Mpumalanga province is stepping up, with contractors mobilised and construction underway at the carbon-in-leach (CIL) section and associated retaining walls.
Sydney-listed gold mining development company Theta Gold Mines reports that negotiations with long-lead equipment suppliers for mills and crushing circuits are advancing and more than 120 personnel are now on site.
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Civil works and debt syndication have been supported by capital raises and convertible loan conversions and plant commissioning is being targeted for the end of 2026.
"Rapid progress continues on site," executive chairperson Bill Guy stated in a release.
"Contractors and equipment are now fully mobilised, and site earthworks are underway accelerating the transformation of this historic site into a modern gold producer."
This is the site of the old Transvaal Gold Mining Estate that is centred around the historical mining towns of Pilgrim's Rest and Sabie. The project aims to restart underground gold mines in what is a prolific gold mining region.
"Recent capital raises and convertible loan conversions have strengthened our balance sheet, positioning us to complete civil works and advance debt syndication.
"With funding and construction aligned, we remain firmly on track to commission the plant by the end of 2026," Guy added.
As reported by Mining Weekly in June, the project is targeting the Beta, Rietfontein, Frankfort and Clewer-Dukes Hill-Morgenzon (CDM) mines.
In the base case, the project has a mine life of 12.9 years, delivering production of 1.24-million ounces of contained gold over the life-of-mine (LoM) at a processing rate of 540 000 t/y to initially recover 1.08-million ounces of gold.
The project aims to produce 30 000 t a month from the Beta mine, 15 000 t a month from the Rietfontein mine, 15 000 t a month from the Frankfort mine and 10 000 t to 20 000 t a month near the end of the CDM mine's LoM. The existing mining infrastructure will be used, with the addition of new accesses, underground development and predevelopment of the mining grids to access the planned mining areas at Beta, Frankfort and CDM.
At Rietfontein, the existing adits and underground development will be used with the addition of new development ends, a new decline and the extension of an existing decline.
The mining strategy for the underground operations is to apply mechanised longhole drilling to narrow-reef mining to selectively mine out only the reef channel, with minimal dilution at Beta, Frankfort and CDM.
Rietfontein will be mined conventionally using shrinkage stoping, with hybrid loading methods between trackless load-haul-dump and rail-bound locomotives.
The processing plant will have a feed capacity of 45 000 t/m.
In the base case, the project has a net present value, at a 10% discount rate, of $324-million at an average $1 642/oz and an internal rate of return of 65%. Based on these figures, the project has a forecast after-tax payback period of 31 months.
The estimated development capital or peak funding requirement is $77-million.
Development finance institution the Industrial Development Corporation of South Africa (IDC) has extended a credit-approved loan facility agreement for R622-million, or about A$53.8-million, to help fund the TGME project.
The agreement, which includes a debt term of seven years from first drawdown, follows the completion of due diligence by the IDC and allows for Theta to move ahead with development and construction.