Osino Resources Corp. (TSXV: OSI | FSE: RSR1 | OTCQX: OSIIF) has announced positive results for its definitive feasibility study (DFS) at its Twin Hills gold project, located in central Namibia.
“We are very pleased with the results of this DFS which confirms Twin Hills as a technically simple, long-life, and low-cost gold project with very strong economics and plenty of upside.” commented Osino president, co-founder, and CEO Heye Daun.
The project is located within Namibia’s prospective Damara orogenic belt. Twin Hills is a sedimentary-hosted and structurally controlled lode gold occurrence that is amenable to conventional open pit mining and carbon-in-leach processing.
The Twin Hills project has a life of 13 years at a rate of 5.0Mtpa. The preproduction capital costs will be US$365M, and the project offers a payback of 2.2 years (at US$1,700/oz.) or 1.9 years (at US$1,950/oz.) Sustaining capital will be US$41M.
The project has measured and indicated resources of 84.3Mt grading 1.08g/t gold and containing 2.9Moz. The inferred portion is 7.0Mt at 1.10g/t gold and containing 250,000oz. With a cut-off grade of 0.45g/t, the proven and probable reserves are 64.5Mt grading 1.04g/t gold and containing 2.2Moz.
At a spot gold price of US$1,750/oz., Twin Hills has a net present value (5% discount) of US$480M and an internal rate of return of 28% post tax. Should gold prices rise to US$1,950/oz., after-tax numbers would be US$656 NPV and 36% IRR. Life of mine cash flow would be US$721M at the lower gold price or US$958M at the higher price.
“We will immediately commence with detailed engineering and our vision is to reach a fully financed construction decision by the end of 2023. The results of this DFS demonstrate that Twin Hills is a very robust, cash generative project which will deliver outstanding returns to shareholders once it goes into production, hopefully towards the end of 2025 or early 2026.” added Daun.
The processing plant will recover 92% of the gold in ore using three-stage crushing, ball milling, gravity separation, pre-oxidation, and a CIL circuit. Tailings are to be dry stacked.
For further information, please visit: www.osinoresources.com
