Aim-listed Katoro Gold has announced positive results emanating from a comprehensive Competent Person’s Report (CPR) on the results of technical and financial work conducted on the Blyvoor Gold tailings project.
The additional technical and financial work on the company’s 50%-owned project was in response to recommendations and findings of a Blyvoor scoping study published initially in May 2020 and updated on March 4, this year.
Katoro is finalising a comprehensive funding package that will allow for construction of a mining and processing facility capable of processing 500 000 t of tailings material a month, at an average grade of 0.29 g/t gold over an initial ten-year mine life.
The CPR comprises an advanced prefeasibility level study, a reserve and resource statement and a South African Mineral Asset Valuation report.
The CPR has highlighted a total project resource size of 1.4-million ounces of gold comprising 500 000 oz in the measured category, 368 000 oz in the indicated category and 542 000 oz in the inferred category.
The CPR further demonstrates a net present value of $114-million, a 33% internal rate of return and a return on investment of 64%.
The total project capital cost will be $152-million across the life of the project and an all-in cost of $1 067/oz, using an average gold price of $1 610/oz, although the current gold price is about $1 800/oz.
The CPR was conclusive that the project demonstrates robust technical and economic viability.
The competent person that compiled the report is Minxcon director Daniel van Heerden.