Legendary South African 23Moz gold mine is back in the game
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(Kitco News) - Nomad Royalty (TSX: NSR) (OTCQX: NSRXF), an owner of a gold stream on the Blyvoor mine in South Africa, today announced that it has filed on a voluntary basis an independent technical report for Blyvoor.
The Blyvoor mine is located on the Witwatersrand Gold Belt in Gauteng Province of South Africa. The Blyvoor mine commenced production in 1942 and in 1951 was the mine that produced the greatest amount of gold globally. The Blyvoor mine has produced approximately 38 million ounces of gold historically and production is currently ramping-up again.
According to a press-release, Blyvoor technical report highlighted a 22-year life of mine based on mineral reserves, with 242 koz average annual gold production and 5.32 million oz of total payable gold production. Average life of mine all-in sustaining cost is expected to be low at US$570/oz.
The mine has 5.50 million oz of gold in proven & probable mineral reserves (18.84Mt at 9.09g/t Au), 11.37 million oz of gold in measured & indicated mineral resources (50.08Mt at 7.06g/t Au) inclusive of mineral reserves, and 11.29 million oz of gold in inferred mineral resources (79.77Mt at 4.40 g/t Au).
Nomad added that ramp-up procedures at the Blyvoor mine have continued to progress and that the Blyvoor mill is expected to reach its initial production target of 20kt per month by the end 2021.
Nomad owns a 10% gold stream on the Blyvoor mine on the first 160koz of gold production within a calendar year, and 5% on any additional gold production within the same calendar year. Following the delivery of 300koz of gold to Nomad under the stream agreement, the stream percentage shall be 0.5% on the first 100koz of production within a calendar year until gold production reaches 10.32 million ounces. Nomad will make ongoing payments of $572 for each ounce of gold delivered under the stream agreement.