Theta Gold Mines Completes Gravity Survey of Existing Tailings Dam and the area of ​​its proposed expansion

Posted by Steven Ralston, CFA

OTC: TGMGF | ASX: TGM

READ THE FULL TGMGF RESEARCH REPORT

Theta Gold Mines (OTC: TMGGF) (ASX: TGM) is a young mining company on the verge of transition from a junior exploration company to a gold producer. By targeting high-grade, shallow gold reef deposits in the Pilgrims Rest and Sabie Gold Fields fallow areas in South Africa, management plans to employ modern mining and gold processing techniques to produce over 350,000 ounces. Au through the initial development of three shallow mines (Beta, Frankfort and CDM) of the Company’s 43 historic mines in the Eastern Transvaal Gold Fields. In addition, the company was able to through several exploration campaigns The total mineral resource has increased by over 100% in the past four years.

Current management update

Gravity analysis of tailing systems

In preparation for the construction work on the Tailings Dam, a Gravity measurement includes the existing tailings dam and the area of ​​its planned expansion was completed in May 2021. The 1936 South Africa National Standard requires a gravity survey to be carried out prior to construction on the Tailings Dam.

Surface sampling at the Tailings Dam of the Rietfontein Mine

Recently, surface samples of Rietfontein Tailings Dam has been completed. The Rietfontein Tailings Dam was systematically sampled on a 50 x 50 m grid down to a depth of 8 meters. Ten kilogram bulk samples were taken from each of the 55 holes and sent to a SANAS (South African National Accreditation System) accredited gold laboratory. The company’s resource estimate is currently on the tailings dam near Rietfontein.

Surveying the southern section of the beta mine

That southern section of the beta mine was interviewed. Certain markings have been identified that allow current mine plans to be spatially overlaid over historical mine maps and previous sampling information. Contemporary confirmatory samples of historical samples would allow these historical bench samples to be included in future resource estimates. Currently, the southern section of the Beta Mine is on the Company’s resource estimate.

The story goes on

Progress in refurbishing the gold processing facility

Management is working on the rehabilitation of the historic gold processing facility. Management plans to shut down certain components, salvage others, and install new equipment to build a new gold processing facility on Plant & Tailings’ already approved land.

The absorbent and CIL canisters have been pumped out and cleaned for inspection. In the third quarter, a structural engineer will examine these tanks for stability and thickness to determine whether they can be reprocessed.

The purchase inquiries for long-term, breaking-circle and preconcentration systems have been confirmed; however, additional metallurgical optimization work is required to determine the final process design, particularly with regard to the recovery of carbon liquors.

Current milestones

April 8, 2021 Maiden underground mining reserve

April 13, 2021 Pre-feasibility study for the underground reserve

May 2021 Gravity survey of Tailing Dam and planned expansion area completed

ON Maiden underground mining reserve and Pre-feasibility study (PFS) for the near-surface underground mines Beta, Frankfort and CDM (Clewer, Dukes & Morgenzon) were released in mid-April. Work to complete the PFS contributed to a significant increase in the Company’s ore mine reserve. In addition, the company is Total mineral resource (Measured, displayed and derived) has amounted to 6.105 million ounces of Au. elevated.

Schedule of the upcoming milestones

1Q 2022 DFS in the underground project (Beta, CDM and Frankfort Mines)

TBA PFS in the Rietfontein mine, update of the scoping study

PFS project – Rietfontein mine

Management is planning one Pre-feasibility study on the Rietfontein Mine, building on the scoping study that was completed in February 2017 and revised in September 2018. Currently, the Rietfontein Mine has estimated mineral resources of 242,200 ounces of gold (grade 8.2 g / t Au) in the Indicated category and 537,600 ounces of gold (grade 14.0 g.). / t Au) in the Derived category. As with the Beta, Frankfurt and CDM mines, management believes that a significant percentage of the displayed resource can be promoted to reserve status. The PFS is expected to complement Theta’s mining reserve, further increasing the company’s potential production profile.

valuation

Based on our calculation of the proportional value of the attributable resources, Our target for the Theta Gold Mines share is $ 0.71. Our calculation of the unit value of the attributable resources is based on the determined net asset value of each property, which is determined by adjusting the value of the estimated resources by the expected recovery rate and the mining / processing costs.

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