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- Theta Gold Mines (TGM) has decided to bring forward the development of the underground Beta mines in South Africa for early production to increase its global mining reserve
- Earlier this year, the company told its shareholders it is aiming to produce over 160,000 ounces of gold per annum over the next five years
- Due to this, Theta’s Board has approved a pre-feasibility study (PFS) which is expected to be completed by the first quarter of 2021
- The PFS will produce an underground mining reserve for the Beta and Frankfort Mines, which is the first declared underground mining reserve
- On the market this morning, Theta is in the grey and trading at 31 cents per share
Theta Gold Mines (TGM) is targeting a substantial increase in its global mining reserves by the first quarter of 2021.
The company has given an update to shareholders on its five-year plan to produce over 160,000 ounces of gold per annum. To speed up this plan, Theta has decided to bring forward the development of the underground Beta mines for early production in South Africa.
Due to this, Theta’s Board has approved a pre-feasibility study (PFS), which is expected to be completed by the first quarter of 2021. The PFS will produce an underground mining reserve for the Beta and Frankfort Mines.
This will be the company’s first declared underground mining reserve, and the underground mine will be added to Theta’s existing 205,000 ounces of open-pit mining reserves from MR83.
The PFS will build on the scoping studies completed in 2017 for the Beta mines. The company has 150 years of exploration and production data for the PFS.
“Mining reserves in terms of transactional valuation are three to five times higher than mineral resources per gold ounce. Theta has a very large resource base and we are now better aligning resource to reserve conversions,” Chairman Bill Guy said.
“The company has several granted Mining Rights with various approvals for underground mining already in place, including MR83 which hosts the Beta Mine which is one such operation already approved for underground mining,” he added.
On the market this morning, Theta is in the grey and trading at 31 cents per share at 10:36 am AEDT.
