Definitive Feasibility Study on the horizon for Theta Gold

Theta Gold Mines (ASX: TGM) has announced a sweep of updates for its advanced South African projects.

Recent headlines for Theta have been dominated by its attempt to acquire West Australian gold explorer, Focus Minerals (ASX: FML). 

Feasibility study near completion

Theta operates several South African mines, collectively referred to as the TGME Underground Project. 

Theta said that the project’s Definitive Feasibility Study (DFS) is currently at 65% completion and expected to be complete in the second quarter of 2022. 

Exploration activities that support the feasibility study, including metallurgical test work, mine designs, geotechnical studies and underground investigations were also around 80% completion. 

To add some perspective, the company completed the TGME Pre-feasibility Study (PFS) back in April 2021. Highlights include: 

• Pay-back period of 22 months 

• Life of mine (LoM) is 7.7 years 

• 419,000 ounces of gold to be delivered over initial (LoM)

• US$91.2m net present value 

• US$905/oz all-in sustaining cost over LoM 

The PFS was based on forecast gold prices of US$1,570/oz. 

Current gold prices are trading around US$1,935/oz, an almost 25% premium to PFS assumptions.

It will be interesting to see the updated DFS forecast price, in addition to other changes to life of mine, grades and costs.

Sampling of old mines

The South African exploration strategy involves taking ore samples from prioritised old mines.

Samples have been delivered to laboratories for analysis, with results expected in the coming weeks.

Theta said that preliminary assay results have so far been encouraging, with sweeping grab samples of 4.37 to 15.79 g/t gold.

"The results of the grab samples taken at both Desire and Beverly Hills Mines are very encouraging as the results indicate high grades within these Mines," said Theta Chairman Bill Guy.

Theta Gold price chart