Nyanzaga Project

(Gold)

The Nyanzaga Project is a gold development project with a very large gold resource of 3.07 million ounces at a high grade of 4.03g/t gold. Extensive drilling (2,665 drill holes for 276,911m of drilling) has defined this large resource and there is substantial potential for extensions of known mineralisation both at depth and regionally. The Project area is covered by 22 Prospecting Licences and applications covering a combined area of 210km2 in northwest Tanzania in east Africa. A Special Mining Licence application has been lodged over the Nyanzaga Deposit and parts of the surrounding licences covering 23.4km2. The Project is situated in  Archaean greenstones of the Lake Victoria Goldfields, approximately 60km southwest of the city of Mwanza and 60km east of the Geita Gold Mine (AngloGold Ashanti) and 30km northeast of the Bulyanhulu Gold Mine (Barrick Gold).

Nyanzaga Project Regional Location

The Nyanzaga Project hosts a JORC 2012 compliant Mineral Resource Estimate (MRE) of 23.7Mt @ 4.0g/t gold for 3.07Moz using a 1.5g/t lower cut-off. A Pre-Feasibility Study (PFS) has been completed and a Project Financing Definitive Feasibility Study (DFS) has commenced.

OreCorp Limited – Nyanzaga Gold Deposit – Tanzania
Mineral Resource Estimate (MRE) as at 12 September, 2017

JORC 2012 Classification Tonnes (Mt) Gold Grade (g/t) Gold Metal (Moz)
Measured 4.63 4.96 0.738
Indicated 16.17 3.80 1.977
Sub-Total M & I 20.80 4.06 2.715
Inferred 2.90 3.84 0.358
Total 23.70 4.03 3.072
Reported at a 1.5g/t gold cut-off grade. MRE defined by 3D wireframe interpretation with subcell block modelling. Gold grade for high grade portion estimated using Ordinary Kriging using a 10 x 10 x 10m estimation panel. Gold grade for lower grade sedimentary cycle hosted resources estimated using Uniform Conditioning using a 2.5 x 2.5 x 5m SMU. Totals may not add up due to appropriate rounding of the MRE.

The PFS was completed in 2017 and highlighted the following:

  • Forecast life of mine (LOM) average gold production of 213koz per annum over 12 years
  • The PFS determined that a concurrent open pit (OP) and underground (UG) mine schedule represents the optimum mining sequence
  • The OP will deliver the base load of mineralised material over the LOM and is expected to deliver approximately 1.75Moz of contained gold over its 12 year mine life
  • UG mining will commence in Year 1, from a box cut external to the OP, and is expected to produce approximately 1.16Moz (including UG development material) of contained gold. The UG will be developed to a depth of 800m below surface, with the deposit remaining open at depth
  • Detailed metallurgical test work in the PFS has confirmed gold recovery of 88% through a conventional 4Mtpa Carbon in Leach (CIL) processing plant, an increase of 3% over the Scoping Study
  • Competitive cost position with a forecast All-in Sustaining Cost (AISC) of US$838/oz and All-in-Cost (AIC) of US$858/oz over the LOM
  • Pre-production capital cost of US$287M includes OP pre-strip, plant (including first fill inventory), all associated project infrastructure expected and a US$33M contingency
  • 88% of the MRE is in the Measured and Indicated categories. It is anticipated that a maiden Ore Reserve for Nyanzaga will be prepared as part of the Project Financing DFS
  • The PFS has been based on a US$1,250/oz gold price

Note: Figures stated above do not include the legislative changes of July 2017 and Regulations of January 2018

The Nyanzaga Deposit offers scalability which provides the opportunity for development by both open pit and underground gold mining.

Nyanzaga Project - Decline Design

Processing of Nyanzaga ore will be by a conventional CIL treatment route, with testwork to date indicating a gold recovery of 88%. At the 4Mtpa processing rate used in the PFS, Nyanzaga will produce an average of over 213,000 ounces of gold per year over a 12 year mine life. The DFS has commenced and will optimise all aspects of the PFS, assessing mining resources and reserves, production rates, processing recoveries, mine life, capital and operating costs.

Nyanzaga Project - Process Flow Sheet

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