AMN - TANZANIA: Study confirms Nyanzaga potential

OreCorp’s scoping study for the Nyanzaga gold project in Tanzania has confirmed the outstanding potential of the project. The Board has approved the Prefeasibility Study to start immediately.

Highlights:

- Study indicates outstanding potential, expected to deliver a project with average gold production of 220, 000oz/year for the first five years of full production

- Life of mine (LOM) average production is expected to be 182,000 oz/year over 13 years for a total of ~2.4 Moz

- Average cash cost estimated to be $756/oz and All‐in Sustaining Cost (AISC) of $798/oz over LOM

- Pre‐production capital costs including all associated project infrastructure expected to be $248 million (inclusive of contingency)

- Updated MRE of 29.8 million tonnes @ 3.5 grams/tonne gold, an increase of 566,000 oz (~19%) compared to the Maiden JORC 2012 MRE released 31 March 2016

- The MRE averages approximately 4200 oz per vertical metre

- An initial open pit mine is expected to deliver approximately 1.2 Moz of gold over its five year mine life

- A transition to an underground mine from year four onwards at a steady state of 1.1 million tonnes/year, for a total period of nine years is expected to deliver a further 1.2 Moz of gold

- Average LOM open pit strip ratio (unmineralised:mineralised) of 2.5:1 (based on low grade mineralised material included in mineralised material)

- Base Case 4 million tonnes/year CIL processing plant with gold recoveries forecast to average ~85% over the LOM

Scoping study optimised at $1,250/oz gold price.

http://orecorp.com.au/

News courtesy of International Mining