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(Kitco News) - Osino Resources (TSXV: OSI) today announce the results of the definitive feasibility study (DFS) for the company’s Twin Hills gold project in central Namibia.
In a press release, the company said that the DFS contemplates a low-risk, technically simple open-pit mine utilizing contract mining and feeding a conventional carbon-in-leach (CIL) metallurgical plant processing 5mtpa of mineralized material.
Osino reports that the project is expected to generate NPV of US$742M (pre-tax) and IRR of 34% at 5% discount rate and US$1750/oz gold price, and NPV of US$480M (post-tax) and IRR of 28% at 5% discount rate and US$1750/oz gold price.
Importantly, the company noted that at spot gold prices (US$1,950/oz) the project generates just under US$1.5B of net pre-tax cashflows, "demonstrating the strong margins, cash generation potential and economics of the project."
The project has a 13-year life-of-mine and 5.0 million tonnes per annum design processing capacity. Overall capital cost is projected at US$365M (including US$34M contingency and US$18M capitalized pre-strip) with a payback period of 2.2 years.
Co-founder, President and CEO Heye Daun commented, "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. Now that the DFS has been completed, 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."
The Twin Hills gold project is located within Namibia’s prospective Damara mineral belt. Twin Hills is a sedimentary-hosted, structurally controlled gold deposit that fits the broad orogenic model and is amenable to conventional open-pit gold mining and carbon-in-leach metallurgical processing. Twin Hills lies in proximity to and along strike of the producing, open-pit Navachab and Otjikoto gold mines.
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