Osino Resources Corp. (
TSXV:OSI)
(
FSE:RSR1) (
OTCQX:OSIIF)
("
Osino” or “
the
Company”) is pleased to announce the results of
the definitive feasibility study (“
DFS”) for
Osino’s Twin Hills Gold Project (“
Twin Hills“ or
the “
Project”), which is located in central
Namibia and is being advanced rapidly through accelerated expansion
drilling and fast-tracked development studies.
The DFS was prepared by Lycopodium Minerals
Canada Ltd. (“Lycopodium”) in accordance with
National Instrument 43-101—Standards of Disclosure for Mineral
Projects ("NI 43-101") and contemplates a
low-risk, technically simple open-pit mine utilizing contract
mining and feeding a conventional carbon-in-leach
(“CIL”) metallurgical plant processing 5mtpa of
mineralized material.
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.”
The Twin Hills Gold Project is located within
Namibia’s prospective Damara mineral belt. Twin Hills is a
sedimentary-hosted, structurally controlled gold deposit that fits
the broad orogenic model and is amenable to conventional open-pit
gold mining and carbon-in-leach metallurgical processing. Twin
Hills lies in proximity to and along strike of the producing,
open-pit Navachab and Otjikoto gold mines. DFS Overview and
Financial Analysis
The table below summarizes the results and key
valuation metrics of the DFS on a pre- and post-tax basis.
Table 1: Feasibility Study Economic
Assessment Summary
|
|
US$1750/oz |
US$1950/oz |
|
Units |
Pre-Tax |
Post-Tax |
Pre-Tax |
Post-Tax |
NPV5% |
US$m |
742 |
|
480 |
|
1024 |
|
656 |
|
IRR5% |
% |
34 |
% |
28 |
% |
46 |
% |
36 |
% |
Payback |
years |
2.2 |
|
2.2 |
|
1.9 |
|
1.9 |
|
LOM Cashflow |
US$m |
1108 |
|
721 |
|
1488 |
|
958 |
|
The financial model was completed on a 100%
project basis not accounting for potential sources of funding which
may include debt. Osino’s understanding of current Namibian tax
regulations were applied to assess the tax liabilities the model
includes a 3% gross royalty (tax deductible) and a 1% export levy
to the Namibian government.
The model utilizes a base gold price of
US$1750/oz, a ZAR:USD exchange rate of 18.50:1 and a 5% discount
rate.
A sensitivity analysis utilizing a range of gold
prices and operating variables was completed. The results are
tabulated in table 3 on page 4 and 5.
Table 2: Key DFS Operating Assumptions
and Economic Parameters
Item |
Units |
Amount |
Life of Mine |
Years |
13 |
|
Gold price (base case) |
US$/oz |
1,750 |
|
Exchange Rate |
|
18.50 |
|
Gold Recovery |
% |
92.0 |
% |
Royalty (tax-deductible) |
% |
3.0 |
% |
Export Levy |
% |
1.0 |
% |
|
|
|
Life-of-Mine Production Parameters |
|
|
Ore Tonnes Mined |
Kt |
64,513 |
|
Ore Grade Mined |
g/t |
1.04 |
|
Contained Metal |
Koz |
2,151 |
|
Waste Tonnes Mined |
Kt |
299,072 |
|
Stripping Ratio |
|
4.64 |
|
LOM Gold Production |
Koz |
1,979 |
|
LOM Average Annual Gold Production (years 1-10) |
koz annum |
162 |
|
Average Annual Gold Production (years 1 – 5) |
koz
annum |
176 |
|
|
|
|
Life-of-Mine Unit Costs per Tonne Mined/Processed |
|
|
Refining cost |
US$/oz |
0.55 |
|
Gold transport cost |
US$/oz |
2.20 |
|
Mining Cost (per tonne mined) |
US$/t |
2.64 |
|
Variable Processing Cost (per tonne processed) |
US$/t |
11.20 |
|
Fixed Processing Cost (per tonne processed) |
US$/t |
2.43 |
|
Overall Processing unit Cost (per tonne processed) |
US$/t |
13.63 |
|
|
|
|
Unit Costs per Ounce Produced |
|
|
LOM Average Operating Costs
1 |
US$/oz |
918 |
|
LOM Average Cash Costs 2 |
US$/oz |
991 |
|
LOM
Average All-in Sustaining Costs 3 |
US$/oz |
1,011 |
|
|
|
|
Capital Costs |
|
|
Construction Capital (Lycopodium Estimate) |
US$m |
311 |
|
Contingency (9.3%) |
US$m |
34 |
|
Capitalised Pre-strip |
US$m |
18 |
|
First Fills (mostly steel balls) |
US$m |
2 |
|
Total Project Capital (incl. contingency) |
US$m |
365 |
|
Sustaining Capital |
US$m |
41 |
|
Notes:1. Mining, processing plus on-site
G&A2. Operating costs plus selling costs, royalties &
levies3. Cash costs plus sustaining capital (incl. closure costs
& salvage value)
A summary of the production schedule in
tabulated format and cash flow model with key economic results can
be viewed in Figure 11 below.
Sensitivity Analysis
An after-tax sensitivity analysis to the key
project variables was carried out which indicates that the project
is most sensitive to a change in grade or gold recovery, as
indicated by the slope of the blue line in the diagram below.
The breakeven (NPV=0) is at a gold price of US$1,230/oz and
implies that the capital investment is repaid plus a 5% return
using a 5% discount rate. The nominal breakeven (sum of
undiscounted cashflows = 0) gold price is US$1,167/oz.
The project is most sensitive to changes in gold
grade, with every 5% change in gold grade resulting in a change in
NPV of around 15%. This is indicated by the slope of the blue line
graph in the diagram below, which confirms that the project NPV is
most sensitive to changes in the average gold grade. Figure
1: Post-Tax Project NPV Sensitivity to Variations in Key Project
Parameters at US$1700/oz
Table 3: Two-factor Post-Tax Project NPV
Sensitivity Analysis
Table 4: IRR5%
Sensitivity to Gold Price
Mineral Resource Estimate
A total of 225,574m of drilling from 1,069 holes
(135,980 m of diamond core from 482 holes and 89,594m of reverse
circulation from 586 holes) was completed at Twin Hills since
2019.
Diamond drillholes (DD) range from 63m to 555m
in depth, while reverse circulation (RC) holes range from 30m to
260m in depth. The average drilled depth for DD and RC holes is
282m and 153m, respectively. DD holes generally targeted deeper
mineralization while RC holes targeted shallower
mineralization.
Most of the drillholes were oriented at 160°
azimuth and 60° dip, except at Oryx and Kudu where the holes were
drilled at 340° azimuth and 60° dip. Both the DD and RC holes were
sampled at one-meter intervals at the Osino core-yard in Omaruru
and the drill rigs respectively. A sub-sampling process using a
riffle splitter was used at the RC drill rig to reduce sample
mass.
Sulfide-hosted gold mineralization was
interpreted and modelled from a combination of structural and assay
data for each of the Twin Hills mineralization domains (Figure 1).
The primary mineralization, hosted in meta-greywacke, dips between
60° and 80° and ranges from a few meters to 200m in thickness.
The modelled mineralization includes mineralized
intersections, with the geometry guided by local structural trends.
A 0.4 g/t Au threshold was used to model the mineralized volumes
however a 0.3 g/t Au threshold was used for Twin Hills North for
continuity purposes. Most modelled mineralization is overlain by a
barren calcrete layer. The mineralization at Kudu and Oryx dips in
the opposing direction relative to the mineralization at the main
targets.
Gold grade was estimated using localized uniform
conditioning (LUC) at Bulge, Twin Hills Central, Clouds and Oryx +
Kudu (referred to as Twin Hills West) from 2m composites into 60m x
60m x 5m (XYZ) panels and 5m x 5m x 5m selective mining units
(SMU). Ordinary kriging was used for grade estimation at Clouds
West and Twin Hills North.
Figure 2: Twin Hills Mineralization
Domains in Plan View
Bulk density was determined using an
Archimedes-type technique on core and assigned to the model based
on oxidation/weathering and lithology, such that calcrete was
assigned a density of 2.24 t/m3, oxide 2.57 t/m3, transitional
material 2.65 t/m3 and fresh rock 2.76 t/m3.
CIM Definition Standards for Mineral Resources
and Mineral Reserves states that a mineral resource is a
concentration or occurrence of solid material of economic interest
in or on the Earth’s crust in such form, grade or quality and
quantity that there are reasonable prospects for eventual economic
extraction (RPEEE). To satisfy the requirement of RPEEE by open pit
mining, reporting pit shells were determined based on conceptual
parameters and costs and assuming a gold price of US$1800/oz. gold
recovery is planned to be achieved using a conventional crushing,
milling, gravity, pre-oxidation and carbon-in-leach (CIL)
circuit.
Material within the reporting pit shell was
classified according to mineral resource confidence categories
defined in CIM Definition Standards for Mineral Resources and
Mineral Reserves. Data quality and quantity, geological and grade
continuity, and confidence in the grade and density estimates were
considered when classifying the mineral resource.
Mineral resources were classified as either
Inferred, Indicated or Measured.
Measured mineral resources were classified where
the modelled mineralization and grade estimates were supported by
infill drilling spaced on a 12.5m x 12.5m grid on surface.
Indicated mineral resources were generally classified where the
mineralization and estimation are supported by infill drilling at a
spacing of 35m x 35m on surface. Inferred mineral resources are
classified up to a drill spacing of 50m x 50m and no more than 50 m
beyond drilling data (Figure 2).
It is reasonable to expect that the majority of
Inferred mineral resources could be upgraded to Indicated mineral
resources with continued infill drilling.
Figure 3: Twin Hills Mineral Resource
Classification in Plan View
Mineral Resource Statement
The database was established by the collection,
validation, recording, storing, and processing of data and forms
the foundation for the MRE. Standard operating procedures were
established to govern the collection of all data, while a rigorous
QAQC program is in place to support the database.
The Mineral Resource meets the minimum
requirement of reasonable prospects for eventual economic
extraction (RPEEE) as defined by “CIM Definition Standards – For
Mineral Resources and Mineral Reserves” and it is based on
geological premises, facts, interpretations, and technical
information, and used appropriate estimation methods, parameters,
and criteria for the deposit under consideration.
The Mineral Resource is that material within the
US$1800/oz reporting pit shell above a 0.3 g/t Au cut-off grade and
the Mineral Resource Estimate has an effective date of 15 March
2023 (Table 5).
Table 5: Mineral Resource for the Twin
Hills Gold Project at a 0.3 g/t Au cut-off by domain, as at 15
March 2023
Category |
Tonnes |
Grade |
Troy Ounces |
(millions) |
(g/t Au) |
(millions) |
Measured |
0.7 |
1.48 |
0.03 |
Indicated |
83.6 |
1.08 |
2.91 |
M&I |
84.3 |
1.08 |
2.94 |
Inferred |
7.0 |
1.10 |
0.25 |
Notes on mineral resource
reporting:
- Figures have
been rounded to the appropriate level of precision for the
reporting of mineral resources.
- Mineral
resources are stated as in situ dry tonnes. All figures are in
metric tonnes.
- The mineral
resource has been classified under the guidelines of the CIM
Definition Standards for Mineral Resources and Mineral Reserves and
adopted by the CIM Council, and procedures for classifying the
reported mineral resources were undertaken within the context of
the Canadian Securities Administrators NI 43-101.
- The mineral
resource is reported within a conceptual pit shell determined using
a gold price of US$1,800/oz and conceptual parameters and costs to
support assumptions relating to reasonable prospects for eventual
economic extraction:
- 4% royalty (3%
government royalty and 1% export levy)
- Selling costs
of US$2.75/oz
- Mining costs of
US$2.00/t ore and US$1.85/t waste, with additional cost attributed
to depth below surface
- Processing and
rehandling costs of US$8.15/t run of mine ore
- G&A cost of
US$4.00/t run of mine ore
- Slope angle of
48° in weathered rock and 55° in fresh rock
- 90% gold
recovery from CIL circuit
- Mineral
resources that are not Mineral Reserves do not have demonstrated
economic viability.
Table 6: Mineral Resource Domains for
the Twin Hills Gold Project at a 0.3 g/t Au cut-off, as at 15 March
2023
|
MEASURED & INDICATED |
INFERRED |
Domain |
Tonnes |
Grade Above Cut-Off |
Troy Ounces |
Tonnes |
Grade Above Cut-Off |
Troy Ounces |
|
(millions) |
(g/t Au) |
(millions) |
(millions) |
(g/t Au) |
(millions) |
Bulge |
38.5 |
0.99 |
1.22 |
2.3 |
1.04 |
0.08 |
Twin Hills Central |
27.8 |
1.15 |
1.03 |
2.2 |
1.03 |
0.07 |
Clouds |
9.9 |
1.29 |
0.41 |
1.8 |
1.26 |
0.07 |
Twin Hills North |
0.1 |
1.37 |
0.004 |
0.0 |
1.20 |
0.000 |
Clouds West |
0.6 |
1.23 |
0.02 |
0.1 |
0.65 |
0.002 |
Kudu |
0.6 |
0.70 |
0.01 |
0.2 |
0.82 |
0.004 |
Oryx |
6.8 |
1.10 |
0.24 |
0.6 |
1.24 |
0.02 |
TOTAL |
84.3 |
1.08 |
2.94 |
7.0 |
1.10 |
0.25 |
The MRE was carried out by Mr. Anton Geldenhuys
(MEng), a registered Professional Natural Scientist (SACNASP,
membership number 400313/04) of CSA Global, who is an independent
Qualified Person as defined by CIM Definition Standards for Mineral
Resources and Mineral Reserves in accordance with NI 43-101.
Mine Design and Production
Schedule
The DFS has been conducted using the updated
Mineral Resource for the Twin Hills Gold Project prepared by CSA
Global Mining Industry Consultants (“CSA”). The study complies with
guidelines as defined within NI 43-101 Standards of Disclosure for
Mineral Projects for a DFS, a professional code of practice that
sets minimum standards for Public Reporting of minerals Exploration
Results, Mineral Resources and Ore Reserves and the estimates have
been prepared by appropriately experienced and qualified, competent
persons with a thorough knowledge of the operation.
Inferred resources were excluded from the pit
optimisation runs and the Reserve statement and were classified as
waste during the LOM production schedule runs. The deposit is a
large, shallow gold deposit amenable to open-pit mining. The
orebody will be mined as a conventional shovel and truck operation,
with bulk mining augmented by more selective mining in areas with
narrow ore zones.
The Whittle pit optimisation was run at a base
gold price of $1,700 per ounce of gold and a 5% discount rate and
included a 3% gross royalty and 1% export levy to the Namibian
government. Stated below in Table 7 are the significant assumptions
used to generate the Twin Hills Gold Project DFS Mining Study.
Table 7: Mine Planning and Whittle Pit Optimisation
Assumptions
Parameter |
Units |
Values |
Base Currency |
|
US$ |
Base Date |
|
Q2 2023 |
Exchange Rate – real |
(NAD : US$) |
17.50 |
|
Discount Rate (for NPV calculation) |
(%) |
5.00 |
% |
Base Gold (Au) Price – real |
(US$/oz) |
1700 |
|
Government Royalty (3%) + Export Levy (1%) |
(%) |
4.00 |
% |
Selling Costs – Gold Refining Costs |
(US$/oz) |
0.55 |
|
Selling Costs – Gold Transport Costs |
(US$/oz) |
2.20 |
|
SMU Block Size |
X(m) x Y(m) x Z(m) |
10 x 5 x 2.5 |
It was assumed that mining would take place by
conventional open pit methods and that the whole mining operation,
except for the mine technical services function, would be
outsourced to a reputable mining contracting specialist. This
includes drilling, blasting, loading and hauling of ore and waste.
The mining contractor will supply all materials, equipment,
facilities and services, supervision and labour necessary to
conduct the mining operations per the contract specifications.
Drilling and blasting will be performed on 5m
benches for ore and selective waste material; and 10m benches for
bulk waste material. The entire waste benches will be excavated in
a bulk mining fashion with excavators on two 5.0 m bench flitches.
In contrast, the mineralised benches will be selectively loaded in
two 2.5m flitches to minimise dilution. The truck and shovel match
on the ore and waste benches have been considered and are planned
as follows:
- 130t hydraulic backhoe excavator to
be employed for selective loading purposes.
- A 200t hydraulic backhoe excavator
will load the bulk waste benches.
- 100t capacity, off-highway rigid
haul trucks and standard open-pit drilling equipment will be
required.
Ore and waste will be loaded with hydraulic
excavators and hauled by diesel-powered trucks to the primary
crusher, ROM pad stockpiles, low-grade stockpiles or waste rock
dumps.
The remainder of the mining production fleet
consists of support equipment, including graders, track and wheel
dozers, front-end loaders, rock breakers, and utility
excavators.
The Project is planned as a multi-pit mining
operation (Figure 3 below) with seven pushbacks in the main pit
(Twin Hills Central & Bulge) three separate satellite pits
(Clouds, Clouds West and Twin Hills West) to be mined in different
phases throughout the life of mine.
The pit design and scheduling have been
undertaken to allow for interim pushbacks, which will be mined
early, thereby allowing higher grade to the plant to be maximised
in the early years, and waste stripping deferred as far as possible
into the future.
Figure 3: Design, Layout and Location of
Process Plant, Pit and Waste Rock Dumps
The stockpile strategy is to maintain at least
two months of ROM ore on finger stockpiles to allow for flexibility
in blending to optimise recovery and plant throughput. The
processing plant will continue to process lower-grade stockpiles
after open-pit mining ends.
The Twin Hills Gold Project Reserve estimate has
been determined and reported under the guidelines provided by NI
43-101 Standards of Disclosure for Mineral Projects. The Ore
Reserve, as summarised in Table 8, was determined as of the 31st of
May 2023 based on an economic gold cut-off grade of 0.45 g/t.
Table 8: Twin Hills Gold Project Reserves
as of the 31st of May 2023
(economic cut-off grade of 0.45 g/t)
Mine Project |
Classification |
Tonnes (Mt) |
Grade(g/t) |
Contained Metal (Moz) |
Twin Hills Gold Project |
Proven |
0.87 |
1.19 |
0.03 |
Probable |
63.64 |
1.03 |
2.12 |
Total Ore Reserve |
64.51 |
1.04 |
2.15 |
The DFS mine production schedule was produced
with an average material movement of 33.5mtpa (Figure 4), providing
approximately 13 years’ ore supply at 5 Mtpa. The figures below
summarise the LOM production schedule and key production
metrics.
Figure 4: Key mining production schedule
graphs
The pre-strip period is six months, with a total
of 6.79 Mt mined from the first two pushbacks. After the pre-strip
period, the ore inventory on the grade control and ROM stockpiles
is 0.73 Mt. The plant production ramp-up is three months after
commissioning, in line with similar gold plants commissioned by
Lycopodium.
Table 9: Key mining parameter results
Key mining parameters |
Unit |
Total / LOM |
Operations |
|
|
Mining pre-strip period |
Months |
6 |
|
Mine production life |
Years |
12 |
|
Processing production life |
Years |
13 |
|
Mining |
|
|
Ore mined |
Mt |
64.5 |
|
Strip ratio |
X |
4.6 |
|
Waste mined |
Mt |
299.1 |
|
Processing |
|
|
Ore processed |
Mt |
64.5 |
|
Average gold head grade |
g/t |
1.04 |
|
Average CIL gold recovery |
% |
92.0 |
% |
Output |
|
|
Gold production |
Moz |
1.98 |
|
Mining start-up CAPEX |
M USD |
24.31 |
|
Mining Opex (average) |
USD/t |
2.64 |
|
Metallurgical Testwork
Testwork on drill core and composite samples was
conducted during the Preliminary Economic Assessment
(“PEA”) and Preliminary Feasibility Study
(“PFS”) stages of this project, and the results of
these tests were reported in earlier press releases. The most
influential of the PFS results are summarised briefly below, with a
short description of additional metallurgical tests that have been
completed since the PFS and the results thereof also reported
here.
The drill core samples were taken from the Twin
Hills Central, Bulge, Clouds, Clouds West and Twin Hills West
sections of the ore body. Transitional (oxidised) as well as fresh
ore samples were collected, the physical location in three
dimensions was varied considerably and both low and high-grade
samples, in the context of this ore body, were collected.
During the DFS, the following PFS tests and
results were used directly to support the DFS process plant
design:
- Bond Crusher. Rod Mill and Ball
Mill Work Indices
- Abrasion Index and SMC tests
- Head sample analyses for gold and a
full suite of other elements including carbon and sulphur
- Mineralogical investigation of
composite head samples of THC, Bulge, Clouds and Transitional core
samples
- Diagnostic leach of composite
samples, which confirmed that the fresh ore samples typically
contained about 5% of gold associated with pyrrhotites and
recoverable with pre-oxidation, as well as 5-10% of gold associated
with arsenopyrite and about 6% still locked in silicate or other
gangue minerals at the target grind size
- Confirmation of gold deportment by
size fraction
- Gravity recoverable gold tests,
confirming that between 23% and 32% of gold could be recovered,
from fresh ore samples, depending on the specific source of the
feed sample to GRG. Gold recovery from transitional ore samples was
about 18%.
- Grind versus gold recovery tests,
to confirm design grind target of 80% passing 63 micron
- Cyanide leach tests of gravity
tails which confirm the 24 hours retention time of slurry
containing 50% solids
- Pre-oxidation with oxygen in a two
pass shear reactor followed by comparative leach tests, confirming
that 4 hours of pre-oxidation was beneficial
- Leach tests using site water and
tap water and reagent optimisation tests
- Tailings settling and filtration
tests.
- Cyanide detoxification tests
The most important result from this phase of
test work is summarised in the table below showing ultimate gold
grade of tailings after the tests listed above.
The recovery of gold from individual blocks or
from sections of each pit was modelled following the testwork,
using the final gold grades to develop recovery versus head grade
algorithms for each portion of the resource. Gold recovery from any
part of the ore body was proportional to head grade.
Table 10: Overall LOM Average Gold Recovery for
Different Pits (Sections of the Ore Body)
Material |
Pit |
LOM Recovery % |
Initial 5 Years % Recovery |
Transitional |
Bulge |
93.4 |
94.1 |
TH Central |
93.4 |
94.1 |
Clouds |
93.4 |
94.1 |
TH West |
89.6 |
|
Fresh |
Bulge |
90.4 |
90.3 |
TH Central |
93.8 |
94.0 |
Clouds |
89.1 |
89.1 |
TH West |
88.7 |
|
In the plant design and cash flow models these
recoveries were discounted by about 0.7% to take account of gold
losses in fine carbon and solution associated with filter cake
reporting to the tailings storage facility (TSF).
Variability test work was conducted after
completion of the PFS, on core samples from diverse locations in
the ore body. The results confirmed the flowsheet tested and
developed on composite samples and showed that the recovery
algorithms developed during the PFS and DFS were valid for each ore
type and over the whole range of head grades constituting
economically viable ore.
Successful arsenic precipitation tests were
conducted following cyanide detoxification, but the mass balances
developed for the plant and long-term geochemical leach tests on
tailings samples indicated that this circuit was not required in
the Twin Hills metallurgical flowsheet.
Filtration tests carried out on tailings samples
showed that moisture content of tailings could be reduced to about
15-16% water, using pressure filtration at 6 bar, and that the
filtered tailings could be conveyed to the TSF on belt conveyors
and deposited in a stable storage facility.
Plant Mineral Processing
The mine production schedule developed for the DFS allows for
most of the ore to be direct tipped with the remainder being
rehandled into the crusher by a front-end loader.
The Twin Hills Gold Project plant design for
this definitive feasibility study (DFS) is based on a flowsheet
that comprises three stages of crushing and screening followed by
milling and size classification, gravity recovery, a
carbon-in-leach (CIL) circuit, carbon elution, and a gold recovery
circuit. CIL tailings will be treated in a cyanide destruction
circuit followed by thickening and pressure filtration.
Tailings filter cake will be transferred on an
overland conveyor for stacking at the dry tailings storage facility
(TSF). Some mine waste rock will be delivered to the TSF by dump
truck and used in the construction of the outer containment berm of
the TSF. The TSF will be lined to prevent seepage of any acid or
dissolved arsenic generated after deposition from potentially
coming into contact with groundwater.
The key criteria for equipment selection for
this DFS were suitability for duty, reliability, and ease of
maintenance. The plant layout provides ease of access to all
equipment for operating and maintenance requirements, whilst in
turn maintaining a layout that will facilitate construction
progress in multiple areas concurrently.
The key project design features for the plant
were consistent with the test work results summarised above, and
included:
- Nominal throughput of 5.0 Mtpa of
ore feed.
- A primary gyratory crusher with a
crushed coarse ore stockpile providing about 12 hours of surge
capacity, secondary and tertiary cone crushing and screening, with
an annual utilisation of 6,132 hrs.
- A covered fine ore stockpile
providing about 12 hours of surge capacity, followed by a ball mill
grinding circuit in closed circuit with hydrocyclones, and a
downstream processing plant with an annual utilisation of 8,000
hrs. This includes a cyclone underflow gravity concentration and
intensive leach circuit, thickening, pre-oxidation and
carbon-in-leach (CIL) plant, cyanide detoxification with possible
future arsenic precipitation, tailings thickening and gold elution
and recovery operations.
- The pressure filtration circuit and
downstream tailings belt conveying, and deposition circuits have
been designed for annual utilisation of 7,008 hrs. The circuit
therefore includes agitated slurry storage tanks ahead of
filtration, providing about 12 hours of surge capacity for tailings
thickener underflow.
- Reagent and services make-up,
storage and distribution circuits to support all of the processing
circuits.
An overall process flow diagram depicting the unit operations
incorporated in the selected process flowsheet is presented in
Figure 9 in the appendix below.
Capital & Operating Cost
Estimate
The overall Project capital cost estimate was
compiled by Lycopodium, including the cost estimates for a 5mtpa
process plant targeting a grind size of 80% passing 63µm.
Additional input was sourced from specialists on the tailing
storage facility, open pit mine, power supply and non-process
infrastructure and Osino have provided project specific estimates
of Owner’s costs.
Table 11: Summary of Capital Cost Estimate
Construction Capital Cost Estimate |
Unit |
Capital Cost |
Treatment Plant Costs |
US$m |
117.6 |
Reagents & Plant Services |
US$m |
23.8 |
Infrastructure |
US$m |
65.5 |
Mining |
US$m |
8.4 |
Construction Deliverables |
US$m |
35.2 |
Freight |
US$m |
15.8 |
EPCM |
US$m |
23.8 |
Owners Costs |
US$m |
22.8 |
Total capital cost (excl. contingency &
pre-strip) |
US$m |
312.9 |
Estimated Contingency @ 9.3% |
US$m |
34.2 |
Process operating costs have been developed by
Lycopodium for the life of mine (LOM) blend of mineralized material
blends specified by Osino based on the mining and processing
schedules developed by the mine planners.
The processing variable operating costs shown in
Table 12 have been developed for a plant with an annual throughput
equivalent to 5mtpa of fresh mineralized material plant feed at a
grind size of 80% passing 63µm, based on a 24-hour per day
operation, 365 days per year.
Table 12: Processing Cost Estimate (blended Life of Mine
Estimate)
Plant Ore Feed (t processed per year) |
5,000,000 |
Cost Centre |
US$m/year |
US$/t ore |
Power |
16.7 |
3.34 |
Operating Consumables |
30.4 |
6.07 |
Maintenance |
2.4 |
0.48 |
Laboratory |
1.4 |
0.29 |
Process Plant Labour |
5.1 |
1.03 |
Total Variable Processing Cost |
56.0 |
11.20 |
Mining operating costs were estimated based on
the envisaged mining contractor’s selected equipment fleet and
organisational structure. The estimate was done from first
principles, using the original equipment manufacturers hourly life
cycle cost estimates with the simulated production rates for the
primary mining equipment.
Administrative costs were developed by other
specialist consultants (non-process infrastructure and power
supply, tailings storage facility) or by Osino (G&A labour and
expenses). In all cases, the estimates were developed from first
principles. The unit operating cost estimates thus derived are
summarized in Table 13 below:
Table 13: Plant Operating Cost Estimate
Summary
Cost Centre |
Total Operating Cost |
Percentage of Operating Cost |
US$/year |
US$/tonne ore |
|
|
|
|
Operating Consumables |
|
|
|
Crushing Plant |
683 504 |
0.14 |
1.0 |
% |
Milling Plant |
11 563 726 |
2.31 |
16.9 |
% |
Pre-Leach and CIL |
10 179 923 |
2.04 |
15.0 |
% |
Cyanide Destruction |
3 218 971 |
0.64 |
4.7 |
% |
Thickening and Filtration |
2 425 390 |
0.49 |
3.6 |
% |
ADR and Gold Room |
2 064 919 |
0.41 |
3.0 |
% |
Miscellaneous |
232 140 |
0.05 |
0.4 |
% |
Subtotal Processing Consumables |
30 368 573 |
6.07 |
44.5 |
% |
Plant Maintenance |
2 394 513 |
0.48 |
3.5 |
% |
Laboratory (Plant) |
1 431 559 |
0.29 |
2.1 |
% |
Solar Power (79.6 GWh per year) |
4 776 000 |
0.96 |
7.0 |
% |
Grid Power (Plant) 124.4 GWh per year |
11 901 954 |
2.38 |
17.5 |
% |
Labour (Plant Operations & Maintenance) |
5 135 131 |
1.03 |
7.6 |
% |
Subtotal Plant Costs |
25 639 157 |
5.13 |
37.6 |
% |
Total Processing Variable Costs |
56 007 739 |
11.20 |
82.1 |
% |
General & Administrative Labour |
6 525 590 |
1.31 |
9.6 |
% |
General & Administrative Power |
398 331 |
0.08 |
0.6 |
% |
General & Administrative Expenses |
1 891 665 |
0.38 |
2.8 |
% |
Infrastructure Items transferred from Capex |
1 723 304 |
0.34 |
2.5 |
% |
Tailings Storage Facility Operating Cost Estimate |
1 616 227 |
0.32 |
2.3 |
% |
Total Plant G&A including Site Infrastructure &
CDF |
12 166 117 |
2.43 |
17.9 |
% |
Total Processing Cost (excl. Contract Mining) |
68 162 846 |
13.63 |
100.0 |
% |
Site Location and
Infrastructure
The Twin Hills Project is in central Namibia
approximately 20km from the local town of Karibib, and 150km from
the capital city, Windhoek. The Project area has access to
excellent infrastructure by being in close proximity to Namibia’s
well-maintained national rail, road and bulk utilities network.
Figure 5: Design, Layout and Location of
Process Plant, Pit and Waste Rock Dumps
The Project is located within 5km’s of the
sealed national highway network, within 20km’s of a major high
tension overhead power line and within 220km’s of the modern
seaport of Walvis Bay, to the west of the Project, which is the
main logistical port suppling the mining industry in the region.
The Project is also within 30km’s of the well-established Navachab
gold mine, which has been in consistent production since 1989.
The Project is located in arid shrub land and is
characterised by moderate relief with local elevations ranging from
900 m to 1,500 m above sea level. The primary economic
activities in the Project area are agricultural (cattle ranching
and game farming). Local elevations or hills in the Project area
are generally associated with marble outcrops and granitic
intrusions.
The anticipated infrastructure for the Project
includes mine dry facilities, equipment maintenance workshop,
refuelling facilities, explosive magazine, office administration
facilities, assay laboratory, and warehouse facilities. As well as
access roads, stockpiling areas, storm water handling facilities,
water supply, power supply network, diesel generators, sewage
treatment plant, and waste management facilities.
Field investigations have informed the optimum
site layout for the plant, waste dumps and tailings facility.
Mine Power Supply
The Project average power demand has been
estimated at about 23.5 MW, which will be supplied from the
Namibian grid by a high-voltage overhead powerline to the site
switchyard. The national grid connects to the town of Karibib with
a 66kV line, which also supplies the Navachab gold mine. Osino has
signed an agreement with the national power utility, NamPower, to
connect the planned operation into the high voltage power grid.
In March 2022 Osino signed a power-supply
agreement (“PSA”) with Namibia’s parastatal power utility NamPower
(Pty) Ltd (“NamPower”). The agreement is to supply a minimum of
16MW through a dedicated 66kV feeder bay and overhead lines from
the new Erongo substation at Karibib town, approximately 20km from
the project site. The terms of the agreement also stipulate that
grid power supply is subject to a 36 to 48-month NamPower
procurement and construction lead time and Osino have paid NAD12m
capital contribution to NamPower for the connection. The project
has subsequently applied to increase maximum demand from the
substation to 30MW and intend to fast track the development of the
substation and transmission infrastructure in line with the project
development timeframe.
In addition to the grid power supply, Osino has
engaged a specialist consultancy to assist in designing and
procuring a large-scale photovoltaic power supply. The study has
undertaken various trade-offs and determined that a 25.5 – 27.1
MWac PV configuration would be the preferred option showing optimum
results for a 35% renewable energy share. Inclusion of a solar PV
plant is planned to be facilitated through an Independent Power
Producer, through a private power purchase agreement, and will
yield an energy tariff that is lower than that of the grid
connection; this not only reduces the operational cost of the
Project, but also provides a certain level of risk mitigation
against grid tariff escalation. In addition, it is anticipated that
the total greenhouse gas emissions from the Project will be reduced
by 19.9kt annually, compared to a 100% coal fired generation
system.
Site Water Balance and Mine Water Supply
The site water balance based on a process
throughput of 5 million tonnes per annum (Mtpa) has a water demand
of approximately 1.1m m3/yr. The process design aims to maximise
the re-use of water by recycling process solutions wherever
possible through filtration systems in the plant.
It is assumed that approximately 85% of the
water contained in tailings is recycled at the plant and the
remaining water is lost in the filtered tailings cake sent to the
tailings storage facility. The water balance assumed that a portion
of the demand would be lost at the plant and a further amount used
for dust suppression. It assumes full evaporation rates at the open
pits at start of operation. The site water balance indicates that
the processing cycle is in a water deficit and requires water from
external source such as fresh water, groundwater, or other recycled
source.
Several options are advanced to supply
additional mine make up water to compensate for the water deficit
but also to alleviate reliance on a single source supply. The
following options are envisaged for water supply to the mine:
- The primary
water source is from boreholes pumping groundwater from the Karibib
marble to supply approximately 3,300m3/day, or 1.1m m3/yr. This
supply strategy is based on sustainable yields tested during the
field program and will be supplemented by pit dewatering later on
in the LOM.
- Khan River sand
and river dams with groundwater recharge sites to increase the
sustainability of groundwater abstraction on site, with excess
seasonal water to be used directly in the plant process.
- Okawayo flood
mitigation dam and diversion:
- Okawayo managed
aquifer recharge scheme: Modelling of the potential long-term yield
of this option is ongoing and is also likely to increase
sustainability of the groundwater on the southern marbles.
- Okawayo surface
water diversion to Clouds West Pit: This pit will be mined in Year
1, and thereafter water from seasonal flow will be diverted and
stored in the completed pit to be used directly in the plant
process.
- NamWater scheme
bulk supply: an investigation into the sustainable yield of the
Kranzberg aquifer indicates significant alluvial aquifer potential.
The scheme would require installing a 30km long pipeline between
Kranzberg and Karibib.
- Karibib
wastewater scheme supply: This option is being investigated in
partnership with the town council and could supply up to
approximately 150,000 m3/yr at current population estimate to
200,000 m3/yr depending on the population growth.
The potential of the Khan and Okawayo managed
aquifer recharge schemes sustainable yields are to be further
studied and confirmed. These alternative water supply options are
envisaged as longer term strategy to lower reliance on national
water schemes.
Environmental and
Permitting
Environmental Compliance Consultancy (ECC) was
contracted by Osino, to undertake an environmental and social
impact assessment (ESIA) for the Twin Hills Project Mining Licence
238 (ML 238). The ESIA was undertaken to international IFC lender
standards, and completed with an environmental and social
management plan (ESMP). The ESIA report detailed the assessment
process, legal requirements, baseline studies, design
considerations related to environmental, social, and economic
aspects of the Project, related impacts of the Project activities
on the area, and outlines mitigation strategies to manage those
impacts.
The ESIA was prepared to obtain an environmental
clearance certificate (ECC) for the project from the Namibian
authorities and to supplement technical reports providing
environmental, permitting, social and compliance components for the
project feasibility study.
Environmental approval was received for the
project from the Namibian government on the 3rd November 2022 and
remains valid for legal duration of the Namibian environmental
approvals which is three years. This clearance is renewable every
three-year cycle through demonstration project compliance to the
approval granted.
All relevant secondary permits are in the
process of being obtained as required by the Namibian authorities.
The first application to be submitted is for the Land Clearing
Permit which will be required for early works.
Risks & Opportunities
A number of significant project improvement
opportunities have been identified as part of this DFS, including
the following:
- Possible extension of mineral
resources along strike and down dip to increase life of mine
- Possible further optimization of
the process flowsheet and major equipment selection. In particular,
tailings filtration and comminution circuit optimization may result
in significant capital cost savings
- Increase in percentage of renewable
power, to reduce power cost and increase supply confidence
- Possible increase in gold recovery
by modifying the flowsheet to process sulphides more
effectively
- Possible buy out options for Osino
to take over the mining operations, renewable power plant and
laboratory. This would result in an increase in capital but also a
concomitant reduction in operating costs
- Developing the Kranzberg aquifer or
Khan River managed aquifer recharge projects would improve water
availability for the local community as well as the mine and
plant.
The key project risk that have been identified
are as follows:
- Possible delays in the procurement
and construction of the Erongo sub-station, causing a possible
delay in the connection to grid power for mine start-up.
- Community discontent due to social
impact as a result of mine construction (influx of people, pressure
on resources, insufficient local employment)
- Insufficient ground water available
to commence mining operations.
- Capital or operating cost increases
due to new external supply or logistics factors
Proposed Project Development
Plan
Osino’s intention is to continue to fast-track
the development of the Twin Hills project. The next steps expected
to be completed include the following main activities:
- The project execution plan and
schedule produced during the DFS will be enhanced.
- Front end engineering design (FEED)
proposals from two companies have been evaluated and one of these
companies will be appointed early in the third quarter of
2023.
- In parallel with FEED, prepare a
detailed operational readiness plan for the project.
- Establish the core project
implementation Owner’s and EPCM teams.
- Set up the procedures, detailed
schedule, control budget estimate and plans for project
implementation.
- Initiate preparatory earthworks on
site as well as access road design and approvals.
The objectives of FEED are:
- Optimise the project design
criteria to match the latest technical input data.
- Extend the DFS designs to include
standard basic engineering package deliverables.
- Tighten DFS capital and operating
cost estimate ranges by conducting enhanced design work and
extended discussions with key vendors.
- Confirm major equipment vendors,
service suppliers and contractors.
- Update DFS site and plant layouts
as well as material take offs and bills of quantity.
Responsible Mining
Osino’s approach to sustainability is driven by
its core philosophy, which is “to build value for all
stakeholders”. This is demonstrated through a number of
initiatives, highlighting the company’s commitment in real terms.
As the project progresses these initiatives will be increasingly
developed and expanded upon and they currently serve as a
well-considered foundation for future environmental and social
programs.
Other key initiatives which are currently
underway, include:
- Employee housing:
A comprehensive housing plan is near complete. Priorities of the
plan are to ensure the availability of decent and affordable
housing for employees. This will serve to improve the quality of
life for lower-level employees and minimize the social impacts and
infrastructure demands, within host communities.
- Infrastructure
design: Conceptual plans that are environmentally
sensitive have been developed to reduce the impacts of
infrastructure during construction and operation. The utilization
of local skills and in-situ building materials (such as calcrete,
waste marble and sand), in order to maximize local beneficiation
for communities during construction, is central to the design and
planning approach.
- Community
development: The Twin Hills Trust, supported by a growing
number of service providers, is expected to significantly expand
its development work in its host communities and beyond.
- Local hiring and
procurement: A local community hiring and skills
development program and a local procurement and supplier
identification program is being developed.
- Land management: A
management plan that addresses responsible environmental
stewardship, land improvement, environmental research and
education, community-based conservation and post-mine closure
opportunities is currently being developed.
The 2021 Sustainably Report provides more
information, and the DFS Report and the 2022 Sustainability Report
(currently in production) will provide further details.
Interpretation and
Conclusions
Lycopodium’s conclusion was that the Twin Hills
Gold Project DFS is a low technical risk conventional open pit mine
and carbon-in-leach processing facility with a flowsheet which is
based on unit operations that are proven in industry.
An economic analysis of the mine schedule
generated from the DFS resource model has shown financial viability
of the project at a gold price of US$1750/oz, and the sensitivity
analysis has demonstrated continued profitability against changes
in key project parameters at different gold prices.
A review of the outcomes of the DFS analysis
indicates that the project is robust and has no fatal flaws, and it
is therefore recommended that the project is progressed to the
FEED.
Figure 7: Twin Hills Gold Project Process Plant Flow
Diagram
Figure 8: Twin Hills Gold Project: Process Plant General
Arrangement Plan4
Figure 9: Processing Plant 3D Model and Isometric
View
Figure 10: Site Layout
Figure 11: Life of Mine Production
Schedule
Qualified Persons & Technical
Report
The qualified persons within the meaning of NI
43-101 who will prepare the technical report on the DFS in
accordance with the disclosure and reporting requirements of NI
43-101 consists of Robert Armstrong, PrSciNat, SRK Consulting (Pty)
Ltd as to mining geotechnical, Paul-Johan Aucamp, MSc, Pr Sci
Nat, Principal Engineering Geologist, Associate
Partner SRK Consulting (Pty) Ltd; Ms. Veronique Daigle, Pr. Eng.
Lead Engineer and Director of Knight Piésold Consulting (Pty) Ltd
(Namibia), Anton Geldenhuys, MGSSA PrSciNat, Principal Resource
Consultant, CSA Global South Africa (Pty) Ltd. as to resource
estimates; Ruan Venter, Senior Process Consultant, Lycopodium
Minerals Canada Ltd. as to metallurgy; Mr. Werner Moeller, MAusIMM,
Director and Principal Mining Engineering Consultant, Qubeka Mining
Consultants CC as to mining; Georgi Doundarov, M.Sc., P.Eng., PMP,
CCP, Lycopodium Minerals Canada Ltd. as to economic evaluation;
Diana Duthe, M.Sc., PrSciNat, Lead Hydrogeologist, Knight Piesold
Consulting as to hydrogeology; Mr. Rob Welsh B.Sc., Pr. Eng.,
SMSAIEE, DRA Projects Pty Ltd as to non-process infrastructure and
Mr. Luke Towers, PrSciNat, as to social and environmental. Mr.
Aucamp, Mr. Armstrong, Ms. Daigle, Mr. Geldenhuys, Mr. Venter, Mr.
Moeller, Mr. Doundarov, Ms. Duthe, Mr. Towers and Mr. Welsh are
qualified persons who are independent of Osino under NI 43-101. The
scientific and technical information contained in this news release
has been reviewed and approved by Mr. Aucamp, Mr. Armstrong, Ms.
Daigle, Mr. Geldenhuys, Mr. Towers, Mr. Venter, Mr. Moeller,
Mr. Doundarov, Ms. Duthe and Mr. Welsh in their respective areas of
expertise.
Robert Armstrong
Mr. Robert Armstrong is a Principal Consultant
and Partner of SRK Consulting (South Africa) (Pty) Ltd. and holds a
BSc (Hons) in Mining and Exploration Geology from The University of
the Witwatersrand (South Africa). He is a Fellow in good standing
of the Geological Society of South Africa, a Member in good
standing of the South African National Institute of Rock
Engineering, a holder of a South African Chamber of Mines Rock
Engineering Certificate and a registered Professional Natural
Scientist (PrSciNat) with the South African Council for Natural
Scientific Professions (SACNASP, membership number 400073/09). He
has over 20 years' continuous professional experience in project
and operational mining geotechnical studies. He is familiar with NI
43-101 and, by reason of his education, experience and professional
registrations, he fulfils the requirements of an independent
Qualified Person as defined in NI 43-101.
Paul-Johan Aucamp
Mr. Aucamp is a Principal Consultant and Partner
of SRK Consulting (South Africa) (Pty) Ltd (‘SRK Consulting’) and a
registered Professional Natural Scientist (PrSciNat) with the South
African Council for Natural Scientific Professions (SACNASP,
membership number 400422/04). He holds and MSc in Engineering and
Environmental Geology from The University of Pretoria. He has over
20 years of continuous consulting experience in the field of
engineering and environmental geology. He has no material present
or contingent interest in the outcome of this report, nor does he
have any pecuniary or other interest that could be reasonably
regarded as being capable of affecting his independence in the
preparation of this report. SRK Consulting has contributed to this
report in return for professional fees based upon agreed commercial
rates and the payment of these fees is in no way contingent on the
results of this report. No member or employee of SRK Consulting is,
or is intended to be, a director, officer, or other direct employee
of Osino. No member or employee of SRK Consulting has, or has had,
any shareholding in Osino. Furthermore, there is no formal
agreement between SRK Consulting and Osino as to Osino providing
further work for SRK Consulting.
Veronique Daigle
Ms. Veronique Daigle, Pr. Eng. at Knight Piésold
Consulting (Pty) Ltd., is an independent Qualified Person (QP) as
defined by CIM Definition Standards for Mineral Resources and
Mineral Reserves in accordance with NI 43-101. She is responsible
for the tailings storage facility and associated capital costs
estimates, as well as operating costs. She is a Lead Engineer and
Director of Knight Piésold Consulting (Pty) Ltd (Namibia) and
registered member of the Engineering Council of Namibia (license
number PE2017-19). She is also member in good standing with
the South African Committee on Large Dams, the Canadian Dam
Association, and the Ordre des Ingénieurs du Quebec, Canada (member
no 143 74). She has visited the Project site prior to the
initiation of the Definitive Feasibility Study in November 2022;
and is familiar with the general lay of land. She has 17 years of
continuous experience in tailings, geotechnical engineering and
water management employed at Knight Piésold.
Georgi Doundarov
Mr. Georgi Doundarov is Senior Study Manager of
Lycopodium Minerals Canada Ltd. based in Mississauga, Canada. He
holds a M.Eng. degree in Infrastructure Management and Metallurgy
(2005) from Yokohama National University, a MSc degree in Mineral
Processing and Metallurgy (1996) and a BSc degree in Mineral
Processing (1995) from University of Mining and Geology in Sofia,
Bulgaria. He is a member in good standing with the Professional
Engineers Ontario (P.Eng. nr. 100107167), Project Management
Institute (Project Management Professional nr. 1218345), and the
Association for Advancement of Cost Engineering International
(Certified Cost Professional nr. 42319). Mr. Doundarov has
practised as an engineer continuously since 1996 and has over 28
years managerial, operations, technical, project, and financial
engineering experience globally in mining, mineral processing and
metallurgy. He is familiar with Ni 43-101 and, by reason of his
education, experience and professional registrations, he fulfils
the requirements of a Qualified Person as defined in NI 43-101. He
has reviewed and approved the scientific and technical information
in this news release related to economic evaluation.
Diana Duthe
Ms. Diana Duthe is Lead Hydrogeologist of Knight
Piesold Consulting based in Sandton, South Africa. She holds a BSc
(Hons) degree in Geology (1985) from the University of
Witwatersrand, South Africa and a MSc degree in Hydrogeology (1991)
from the University of Neuchatel, Switzerland. She is a member in
good standing of the Professional Registration of South African
Council for Natural Scientific Professions (PrSciNat nr. 400091/01)
and the Groundwater Section of the South African Geological
Society. Ms. Duthe has practised as a scientist continuously since
1985 with over 30 years of consulting experience in the field of
geology, geochemistry, and hydrogeology. She is familiar with NI
43-101 and, by reason of her education, experience and professional
registrations, she fulfils the requirements of a Qualified Person
as defined in NI 43-101. She has reviewed and approved the
scientific and technical information in this news release related
to hydrogeology.
Anton Geldenhuys
Mr. Anton Geldenhuys is a Principal Consultant
of CSA Global South Africa (Pty) Ltd. and holds a BSc (Hons)
Geology degree from Rand Afrikaans University (South Africa) and an
MEng from the University of the Witwatersrand (South Africa). He is
a member in good standing of the Geological Society of South Africa
and a registered Professional Natural Scientist (PrSciNat) with the
South African Council for Natural Scientific Professions (SACNASP,
membership number 400313/04). He has over 20 years' continuous
professional experience in exploration, mineral resource
development, and evaluation of mining projects. He is familiar with
Ni 43-101 and, by reason of his education, experience and
professional registrations, he fulfils the requirements of a
Qualified Person as defined in NI 43-101. He has reviewed and
approved the scientific and technical information in this news
release related to mineral resources.
Werner Moeller
Mr. Werner Moeller is a Director and Principal
Mining Engineering Consultant of Qubeka Mining Consultants CC based
in Windhoek, Namibia. He holds a BEng degree in Mining Engineering
and a BEng (Hons) degree in Industrial Engineering from the
University of Pretoria (South Africa). He is a Fellow of the
Australian Institute of Mining and Metallurgy (membership number
329888) and a Member of the South African Institute of Mining and
Metallurgy (membership number 704793). Mr Moeller has been
practicing his profession continuously since 2002 and has twenty
years of mine planning and operations experience across a range of
African projects. He is familiar with NI 43-101 and, by reason of
education, experience in exploration, mineral resource development,
estimation and reporting of ore reserves, evaluation of mining
projects and professional registration, he fulfils the requirements
of a Qualified Person as defined in NI 43-101. He has been involved
with the Project since September 2020 and has reviewed and approved
the scientific and technical information in this news release
related to Mining.
Luke Towers
Mr. Luke Towers is an associate of Environmental
Compliance Consultancy (ECC) a registered professional member of
the South African Council for Natural Scientific Professions
(Pr.Sci.Nat. nr 114418) and a member of the Groundwater Division of
the Geological Society of South Africa (member nr. 8254). He has no
material present or contingent interest in the outcome of this
report, nor does he have any pecuniary or other interest that could
be reasonably regarded as being capable of affecting their
independence in the preparation of this report. Mr. Towers has
prepared this report in return for professional fees based upon
agreed commercial rates and the payment of these fees is in no way
contingent on the results of this report. No member of ECC is or is
intended to be, a director, officer, or other direct employee of
Osino. No member or employee of ECC has or has had, any
shareholding in Osino. Furthermore, there is no formal agreement
between ECC and Osino as to Osino providing further work for ECC.
He is familiar with NI 43-101 and, by reason of his education,
experience, and professional registrations, he fulfils the
requirements of an independent Qualified Person as defined in NI
43-101.
Olav Mejia
Mr. Olav Mejia is a Lycopodium Minerals
Canada Ltd (‘Lycopodium’) employee who has no material present or
contingent interest in the outcome of this report, nor does he have
any pecuniary or other interest that could be reasonably regarded
as being capable of affecting his independence in the preparation
of this report. Lycopodium has contributed to this report in return
for professional fees based upon agreed commercial rates and the
payment of these fees is in no way contingent on the results of
this report. No member or employee of Lycopodium is, or is intended
to be, a director, officer, or other direct employee of Osino. No
member or employee of Lycopodium has, or has had, any shareholding
in Osino. Furthermore, there is no formal agreement between
Lycopodium and Osino as to Osino providing further work for
Lycopodium. Mr. Mejia graduated from the University of San Marcos
with a B.Eng. degree in Chemical Engineering and a graduate of the
University of British Columbia with a MASc degree in Mineral
Processing, and has 25 years of experience as a chemical engineer
and mineral processing engineer since graduation. He is a
registered Professional Engineers Ontario (membership number
100602612). He is familiar with NI 43-101 and, by reason of his
education, experience, and professional registrations, he fulfils
the requirements of an independent Qualified Person as defined in
NI 43-101.
Rob Welsh
Mr Rob Welsh is a Senior Project Manager for DRA
Projects Pty Ltd of Building 33 Woodlands Office Park, 20 Woodlands
Drive, Woodlands, Sandton, 2080, South Africa and 2 Long Street,
Cape Town, 8000, South Africa. He holds a BSc Engineering degree in
Electrical Engineering from the University of Natal (Durban, South
Africa). He is a Senior Member of the Institute of Electrical
Engineers (Membership number 5534) and a Professional Engineer in
good standing registered with the Engineering Council of South
Africa (Registration number 990118). Mr Welsh has been practising
his profession continuously since 1991 and has 32 years of
experience across a range of African projects. He is familiar with
NI 43-101 and, by reason of his education, experience, and
professional registrations, he fulfils the requirements of an
independent Qualified Person as defined in NI 43-101.
Technical Disclosure
Data verification programs have included review
of QA/QC data, re-sampling and sample analysis programs, and
database verification. Verification checks have been performed on
data, and comprise checks on surveys, collar coordinates and assay
data. In the opinion of Mr. Geldenhuys, sufficient verification
checks have been undertaken on the databases to provide confidence
that the database is virtually error free and appropriate to
support resource and reserve estimation.
David Underwood
Mr. David Underwood, BSc. (Hons) is Vice
President Exploration of Osino Resources Corp. and has reviewed and
approved the scientific and technical information in this news
release related to geology and exploration. He is a registered
Professional Natural Scientist with the South African Council for
Natural Scientific Professions (Pr. Sci. Nat. No.400323/11) and a
Qualified Person for the purposes of National Instrument
43-101.
About Lycopodium
Lycopodium is an innovative and value-driven
process, engineering and project delivery organisation with
extensive African experience. The Company is headquartered in
Perth, Western Australia and is listed on the Australian Stock
Exchange (ASX: LYL) and with its global offices and international
network, Lycopodium is able to offer its clients professional
services for Feasibility Studies, Process Development and
Optimisation, Engineering and Design, Project Management and
Delivery, Project Services, Construction Management, Completions,
and Commissioning and Operations Support including Asset
Management.
Presentation & Investor
Webinar
Osino will host an investor webinar to discuss
the DFS today, June 12 at 8am PT / 11am ET. Shareholders,
analysts, investors and media are invited to join the live webcast
by registering using the following link:
https://us06web.zoom.us/webinar/register/WN__gPrCfyvRgGJoJghItObMg#/registration.
A replay of the presentation will be available
following the live webinar.
About Osino Resources
Osino is a Canadian gold exploration and
development company focused on the fast-tracked development of our
Twin Hills Gold Project (“Twin Hills”) in central Namibia. Twin
Hills is at an advanced stage of exploration and development with
more than 225,000m of drilling completed on the project since its
grassroots discovery by Osino with various advanced development
studies underway.
Osino has a commanding ground position of
approximately 8,000km2 located within Namibia’s prospective Damara
sedimentary mineral belt, mostly in proximity to and along strike
of the producing Navachab and Otjikoto Gold Mines. The Company is
actively exploring a range of gold prospects and targets along the
belt by utilizing a portfolio approach geared towards discovery,
targeting gold mineralization that fits the broad orogenic gold
model.
Our core projects are favourably located north
and north-west of Namibia’s capital city Windhoek. By virtue of
their location, the projects benefit significantly from Namibia’s
well-established infrastructure with paved highways, railway, power
and water in close proximity. Namibia is mining-friendly and lauded
as one of the continent’s most politically and socially stable
jurisdictions. Osino continues to evaluate new ground with a view
to expanding our Namibian portfolio.
Further details are available on the Company's
website at https://osinoresources.com/
On Behalf of The Board of Directors Heye DaunChief Executive
Officer, President, and Director
CONTACT INFORMATIONOsino Resources Corp.Yaron
Conforti Corporate Development
+1-604-687-2038yconforti@osinoresources.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
Cautionary Statement Regarding Forward-Looking
Information
Certain information set forth in this news
release contains “forward‐looking statements” and “forward‐looking
information” within the meaning of applicable Canadian securities
legislation (referred to herein as forward‐looking statements) and
in applicated United States securities law. Except for statements
of historical fact, certain information contained herein
constitutes forward‐looking statements which includes, but is not
limited to, statements with respect to: the future financial or
operating performance of the Company and its Twin Hills Gold
Project; results from work performed to date; the estimation of
mineral resources and reserves; the realization of mineral resource
and reserve estimates; the development, operational and economic
results of the preliminary feasibility study (the “PFS”) for the
Twin Hills Gold Project (the “Project”), including cash flows,
revenue potential, staged development, capital expenditures,
development costs and timing thereof, extraction rates, life of
mine projections and cost estimates; timing of completion of a
technical report summarizing the results of the PFS; magnitude or
quality of mineral deposits; anticipated advancement of the Project
mine plan; exploration expenditures, costs and timing of the
development of new deposits; costs and timing of future
exploration; the completion and timing of future development
studies; estimates of metallurgical recovery rates; anticipated
advancement of the Project and future exploration prospects;
requirements for additional capital; the future price of metals;
government regulation of mining operations; environmental risks;
the timing and possible outcome of pending regulatory matters; the
realization of the expected economics of the Project; future growth
potential of the Project; and future development plans.
Forward-looking statements are often identified by the use of words
such as “may”, “will”, “could”, “would”, “anticipate”, ‘believe”,
expect”, “intend”, “potential”, “estimate”, “budget”, “scheduled”,
“plans”, “planned”, “forecasts”, “goals” and similar expressions.
Forward-looking statements are based on a number of factors and
assumptions made by management and considered reasonable at the
time such information is provided. Assumptions and factors include:
the Company’s ability to complete its planned exploration programs;
the absence of adverse conditions at the Project; no unforeseen
operational delays; no material delays in obtaining necessary
permits; the price of gold remaining at levels that render the
Project economic; the Company’s ability to continue raising
necessary capital to finance operations; and the ability to realize
on the mineral resource and reserve estimates. Forward‐looking
statements necessarily involve known and unknown risks and
uncertainties, which may cause actual performance and financial
results in future periods to differ materially from any projections
of future performance or result expressed or implied by such
forward‐looking statements. These risks and uncertainties include,
but are not limited to: general business, economic and competitive
uncertainties; the actual results of current and future exploration
activities; conclusions of economic evaluations; meeting various
expected cost estimates; benefits of certain technology usage;
changes in project parameters or economic assessments as plans
continue to be refined; future prices of metals and foreign
exchange rates; possible variations of mineral grade or recovery
rates; the risk that actual costs may exceed estimated costs;
geological, mining and exploration technical problems; failure of
plant, equipment or processes to operate as anticipated; accidents,
labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing; the speculative
nature of mineral exploration and development (including the risks
of obtaining necessary licenses, permits and approvals from
government authorities); title to properties; the impact of
COVID-19 on the timing of exploration and development work and
management’s ability to anticipate and manage the foregoing factors
and risks. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in the forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. Readers
are advised to study and consider risk factors disclosed in the
Company’s most recently filed annual information form or
management's discussion and analysis filed on SEDAR under the
Company's profile at www.sedar.com.
There can be no assurance that forward‐looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. The Company undertakes no obligation to update
forward‐looking statements if circumstances or management’s
estimates or opinions should change except as required by
applicable securities laws. The forward-looking statements
contained herein is presented for the purposes of assisting in
understanding the Company’s plan, objectives and goals and may not
be appropriate for other purposes. Forward-looking statements are
not guarantees of future performance and readers are cautioned not
to place undue reliance on forward‐looking statements. This
presentation also contains or references certain market, industry
and peer group data which is based upon information from
independent industry publications, market research, analyst reports
and surveys and other publicly available sources. Although the
Company believes these sources to be generally reliable, such
information is subject to interpretation and cannot be verified
with complete certainty due to limits on the availability and
reliability of raw data, the voluntary nature of the data gathering
process and other inherent limitations and uncertainties. The
Company has not independently verified any of the data from third
party sources referred to in this news release and accordingly, the
accuracy and completeness of such data is not guaranteed.
(Not for dissemination in the United
States of America.)
Photos accompanying this announcement are available at
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