Osino Resources says it has invested at least N$1.4 billion (US$75 million) in its Twin Hills Gold Project in Namibia over the past five years, specifically towards conducting a Definitive Feasibility Study (DFS) for the mining project.
According to the findings of the DFS released last month, Osino Resources will need to invest N$6.8 billion (US$365 million) in the development of the gold mining project.
“On Thursday, Osino published its DFS for the Twin Hills Gold Project in Namibia. This 874-page document reflects approximately US$75 million spent over five years on intensive drilling, technical studies, salaries, fees, etc. It involved approximately 120 Osino staff, 12 specialist consultants, and numerous sub-contractors across seven countries and four continents,” stated Heye Daun, Osino’s co-founder, President, and CEO, in a social media post.
The Canadian gold mining firm projects that the mine will commence production by the end of 2025 or early 2026.
The study indicates that the mine, with a life expectancy of 13 years and a processing capacity of five million tonnes per annum, will have a Net Present Value (NPV) of N$13.8 billion (US$742 million) pre-tax at a gold price of US$1750/oz, and N$8.9 billion (US$480 million) post-tax at the same gold price.
The DFS, prepared by Lycopodium Minerals Canada Ltd, envisions a low-risk, technically simple open-pit mine utilizing contract mining and feeding a conventional carbon-in-leach metallurgical plant processing 5mtpa of mineralized material.
Osino Resources, which has received provisional confirmation from the Ministry of Mines and Energy for a 20-year mining license for its Twin Hills gold project, expects the mining project to employ approximately 750 people, with the majority being Namibian and many from local communities.
Since its discovery by Osino in August 2019, the company has completed more than 220,000m of drilling and advanced technical studies on the project.
Osino Resources in February announced that it had received eight project finance offers from credible institutions to finance the construction of its wholly owned Twin Hills Gold Project in Namibia.
