According to Mining News Pro -ASX-listed Stonewall Resources said that the scoping study was based on a Joint Ore Reserves Committee-compliant resource of 4.48-million tonnes, grading 4.14 g/t gold for 600 000 oz of contained gold.

The scoping study estimated a capital cost of $16-million, with operating costs estimated at $70/t excluding royalties. Based on the study parameters, the project is expected to have a net present value of $152-million and an internal rate of return of about 132%.

“Our team in South Africa and Australia have been diligently working on this opencut version, as the first stage of a planned series of opencut and underground developments to transform the company into a low-cost gold producer,” said Stonewall MD Rob Thomson.

The current mining inventory assumes that 58% of the ounces mined from the indicated mineral resource will be mined over the first nine months of production, where in excess of 35 000 oz of gold will be produced.

Following the positive scoping study, the company’s board has taken the decision to progress Theta Hill towards a decision to mine in 2019, with a full feasibility study now planned.

The definitive feasibility study is targeted for completion by late in the first quarter of 2019, subject to the availability of funding.