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PFS supports Osino’s vision for Twin Hills

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A view of Osino Resources’ Twin Hills project in the Damara Sedimentary Belt when WhyAfrica paid a visit to the exploration site in July on the WhyAfrica Southern Africa Road Trip. Image credit: Leon Louw for WhyAfrica

PFS supports Osino’s vision for Twin Hills

Canadian gold developer Osino Resources’ prefeasibility study of its Twin Hills gold project in Namibia confirms that the project is set to become a viable open pit gold mine.  

According to Osino Resources CEO Heye Daun the prefeasibility study underlines that the gold project’s geology is consistent, its metallurgy is simple and that it involves low technical risk and low capital investment,” says Daun.

Osino Resources has delivered the prefeasibility study only three years after the company’s discovery of the Twin Hills deposit. Daun says that the next objective is to optimise and improve the project further, advancing it to the construction stage in the next year.

Daun adds that he expects the permitting and project financing of the project to be swift. “We will continue to fast-track Twin Hills. I’m looking forward to advance Osino’s ambitions to build a gold mine with a 13-year life and making a significant contribution to socio-economic development in Namibia in this way,” says Daun.

The Twin Hills project is located within Namibia’s prospective Damara sedimentary mineral belt and in close proximity to the producing Navachab gold mines.

Prefeasibility study results

The Twin Hills prefeasibility study found that the gold project is financially viable at a gold price of USD1700 per ounce (oz) and will continue to be profitable in the event of changes in key project parameters at different gold prices. “The analysis indicates that the project is robust and recommends that Twin Hills is progressed to the feasibility study level,” says Daun.

The Net Present Value (NPV) of the project at a gold price of USD1700/oz is USD783-million while the project still reflects a post-tax NPV of USD114-million in a stressed economic scenario where the gold price is USD1400/oz and an elevated discount rate of 10% is applied to the project.

The Twin Hills project will be completed at an overall capital cost of USD375- million, boasting an investment payback period of just over two years. Its processing plant will have the capacity to process five million tonnes of ore per year and annual gold production for the first ten years is expected to be 171,000 ounces at an all-in sustaining cost of USD909/oz.

Osino will recover gold from the mined ore with a conventional three-stage crushing, ball milling, gravity separation, pre-oxidation and carbon-in-leach (CIL) circuit. The orebody will primarily be mined as a conventional shovel and truck operation, with the mining operation outsourced to a reputable mining contractor.

The prefeasibility study opens the way for Osino Resources to bring its vision for Twin Hills to life. “We are now focused on starting a definitive feasibility study for the project before the end of this year and starting project implementation as soon as we secure project finance,” says Daun.

Osino completed more than 220,000m of drilling at Twin Hills. The company has a large ground position of approximately 6,900km2 located within Namibia’s prospective Damara sedimentary mineral belt, mostly in proximity to and along strike of the producing Navachab and Otjikoto gold Mines. The company is actively exploring a range of gold prospects and targets along the belt by utilising a portfolio approach geared towards discovery, targeting gold mineralisation that fits the broad orogenic gold model.

 

Osino’s core projects are located north and north-west of Namibia’s capital city Windhoek. The projects benefit significantly from Namibia’s well-established infrastructure with paved highways, railway, power and water in close proximity.

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