Twin Hills could produce gold by 2025
Feasibility study shows pleasing results
Twin Hills will have a 13-year Life-of-Mine and 5.0 million tonnes per annum design processing capacity.
Osino Resources says it will make a fully financed construction decision regarding its Twin Hills Gold Project near Karibib by the end of this year, following pleasing results of the definitive feasibility study (DFS).In a statement, Osino said Twin Hills “is being advanced rapidly through accelerated expansion drilling and fast-tracked development studies”.
Heye Daun, Osino’s co-founder, president & CEO commented: “We are very pleased with the results of this DFS which confirms Twin Hills as a technically simple, long-life and low-cost gold project with very strong economics and plenty of upside.
Now that the DFS has been completed, we will immediately commence with detailed engineering and our vision is to reach a fully financed construction decision by the end of 2023.”
“The results of this DFS demonstrate that Twin Hills is a very robust, cash generative project which will deliver outstanding returns to shareholders once it goes into production, hopefully towards the end of 2025 or early 2026.”
Twin Hills’ net present value (NPV) is US$742 million (pre-tax) and an internal rate of return (IRR) of 34% at 5% discount rate and US$1 750/oz gold price. It has an NPV of US$480 million (post-tax) and IRR of 28% at 5% discount rate and US$1 750/oz gold price.
At spot gold prices (US$1 950/oz) the project generates just under US$1.5 billion of net pre-tax cashflows, demonstrating the strong margins, cash generation potential and economics of the project, Osino said.
The project has an overall capital cost of US$365 million with a payback period of 2.2 years.
Twin Hills will have a 13-year Life-of-Mine and 5.0 million tonnes per annum design processing capacity.