(Kitco News) - Osino Resources (TSXV: OSI) today announced the results of the pre-feasibility study (PFS) for Osino's Twin Hills gold project, which is located in central Namibia.
The company said that the PFS contemplates a low-risk, technically simple open-pit mine utilizing contract mining and feeding a conventional carbon-in-leach metallurgical plant processing 5 million tonnes of mineralized material per annum.
Osino added that the project's pre-tax NPV is US$783m and IRR is 33% at 5% discount rate and US$1700/oz gold price, while post-ax NPV is US$503m and IRR is 26% at 5% discount rate and US$1700/oz gold price. Payback period is 2.3 years.
The project's overall capital cost is US$375 million (incl. US$41m contingency, US$22m capitalised pre-strip, US$20m solar plant and US$8m grid power).
"Capital estimate includes latest consumer prices and reflects the recent dramatic price escalations especially in steel, reagents, diesel prices and transport costs," the company said.
The PFS assumes a 13-year Life-of-Mine (LOM) and 5.0 million tonnes per annum processing capacity, with average annual gold production (first 4 years) of 200koz at US$890/oz all-in sustaining cost. Average annual gold production (first 10 years) is 169koz at US$930/oz all-in sustaining cost; LOM average production is 152koz at US$939/oz.
Co-founder, President and CEO Heye Daun commented, "We are very pleased with the results of this PFS which demonstrates that Twin Hills is what we always said it would be, namely a long-life, low-cost and economically robust open pit gold project with significant upside.
"It is geologically consistent, metallurgically simple and technically low risk with a low capital intensity and significant future upside. We are proud to have been able to deliver this PFS within 3 years of discovery and our vision for the next year is to optimize and improve the project further and to continue to advance Twin Hills to the construction stage. We expect imminent, significant progress on the permitting and project financing side which will assist in continuing to fast-track the project."
Osino is a Canadian gold exploration and development company focused on the fast-tracked development of its Twin Hills gold project in central Namibia. Osino 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.
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