Osino Resources’ Twin Hills gold project in Namibia has been verified as a robust, cash-generative project that will deliver outstanding returns, according to a senior company manager.
Twin Hill is located near and along the strike of the producing open-pit gold mines Navachab and Otjikoto.
The company conducted a definitive feasibility study (DFS) which confirmed plans for a 13-year mining operation producing an average of 162 000 oz/y at an all-in sustaining cost of $1 011/oz.
"The DFS confirms Twin Hills as a technically simple, long-life, low-cost gold project with very strong economics and plenty of upsides," said Osino Resources cofounder and CEO Heye Daun
Osino projected to achieve a fully funded construction decision for the $365 million project by the end of the year, with gold production scheduled to begin in 2025 or 2026.
Using a 5% discount and a gold price of $1750/oz, the DFS computed a pretax net present value of $742 million and an internal rate of return of 34%.
At current gold prices of $1 950/oz, the project generates little less than $1.5 billion in net pretax cashflows, indicating the project's superior margins, cash-generating potential, and economics.
The project has a $783-million pretax net present value at a 5% discount rate and an internal rate of return.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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