- OreCorp (ORR) makes the final payment for the acquisition of the Nyanzaga gold project in northwest Tanzania
- The company paid US$8.05 million (A$11.1 million) to Barrick Gold’s subsidiary, which is the final step to acquiring the gold project
- This follows OreCorp being granted a special mining licence for the project which allows it to conduct operations and mining activities
- OreCorp says it’s looking forward to working with the Tanzanian government to establish what is reported to be the country’s first new large-scale gold mine in over a decade
- Company shares have been trading down 0.65 per cent at 76 cents
OreCorp (ORR) has announced making the final payment to Barrick Gold regarding the special mining licence (SML) for the Nyanzaga gold project in northwest Tanzania.
The company made a final payment of US$8.05 million (A$11.1 million) to the mining giant’s subsidiary, which officially satisfies all of its obligations to acquire the Nyanzaga project.
OreCorp was granted the SML earlier this month after being approved for the licence in June by the Tanzanian Cabinet of Ministers.
In Tanzania, an SML is granted for large-scale mining operations in which capital investment exceeds US$100 million (A$138.2 million). The licence grants an exclusive right to the holder to conduct operations in the mining area for the minerals specified in the licence
The SML has specifically been issued to OreCorp’s newly-established joint venture company, Sotta Mining Corporation, of which it owns an 84 per cent stake through its subsidiary Nyanzaga Mining Company. The Government of Tanzania holds a 16 per cent free carried interest.
The Nyanzaga Gold Project has a JORC-compliant mineral resource estimate of 23.7 million tonnes at 4.03 grams of gold per tonne (g/t) for 3.07 million ounces. The MRE was delivered on the back of nearly 277,000 metres of drilling and holds substantial potential for extensions to mineralisation.
According to a pre-feasibility study completed in 2017, the project has an expected life of mine (LOM) average gold production of 213,000 ounces per year over 12 years and a pre-production capital cost of US$287 million (A$396.7 million).
OreCorp said it’s looking forward to working closely with the government to establish what is reported to be Tanzania’s first new large-scale gold mine in over a decade.
Company shares were down 0.65 per cent at 76 cents at 10:55 am AEDT.