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Theta Gold Mines Limited (ASX:TGM) Project Development Update

Sydney, Australia, Mar 3, 2020 - (ABN Newswire) - Theta Gold Mines Limited ("Theta Gold" or "Company") (ASX:TGM.AX - News) (OTCMKTS:TGMGF - News) is pleased to announce continued strong project development progress including that the Plant Construction Tender process has commenced for the 600,000tpa process plant. All required Environmental Impact Assessment (EIA) studies and documentation have been submitted to DMRE for amendment of MR 83 for open-pit mining. A mining contract is now being finalized with the preferred mining contractor.

Draft Mining Contract. The Company has been working with Minxcon and a South African owned and based mining contractor group. This work has included matching and fine-tuning the mining schedule in relation to the recently announced increase in process production capacity to 600,000tpa and accordingly revising the schedule of rates. The mining costs developed for the 600,000tpa mining schedule are in line with those developed in the Feasibility Study released on 16 May 2019. The next steps will be further detailed negotiations with the selected Mining Contractor to finalise all legal, commercial and technical aspects required before final sign off.

Plant Construction Tender. The design work supporting the Tender has been prepared by METS Engineering SA (Part of the UMS Group) following plant design optimization work announced on 28 Jan 2020. Plant design caters for ready expansion of up to 1.2mtpa as the project grows.

The design incorporates the newly purchased (October 2019) 2.5 MW ball mill. As part of this design work, METS and the Company have also delivered sufficient detail to allow for a Tender based on a Lump Sum Turnkey (LSTK) basis.

The Company expects to complete the plant build tenders by late Q2 of 2020.

Environmental Impact Assessment (EIA) for Mining Right 83 (The amendment for MR83 from underground to open-pit) "Starter Theta Open-pit Project" has been submitted for approval by the Department of Mineral Resources and Energy (DMRE). A decision is expected by mid-Q2 of 2020.

The permitting process is ongoing until the DMRE makes the final decision. In South Africa, active engagement is required with all stakeholders and the Company has gone above and beyond in its Public Participation Process to include as wide a stakeholder community as possible. The DMRE will make an independent assessment based on EIS content and stakeholder comments. The permitting risk of MR83 is mitigated by the Company having multiple pits.

Chairman Mr Bill Guy stated, "The Company has achieved some key milestones in developing the project. Starting tendering for the plant construction, submission of EIA for "Starter Theta Open-pit Project" and completion of the draft mining contract. We're very pleased that the mining contract supports the Feasibility Study costings.

Following the previous announcements for the successful optimization plant design study and the purchase of the 2.5MW ball mill, the Theta Project continues to progress towards production.


About Theta Gold Mines Limited:

Theta Gold Mines Limited (ASX:TGM.AX - News) (OTCMKTS:TGMGF - News) is a gold development company that holds a range of prospective gold assets in a world-renowned South African gold mining region. These assets include several surface and near-surface high-grade gold projects which provide cost advantages relative to other gold producers in the region.

Theta Gold Mines core project is located next to the historical gold mining town of Pilgrim's Rest, in Mpumalanga Province, some 370km northeast of Johannesburg by road or 95km north of Nelspruit (Capital City of Mpumalanga Province). Following small scale production from 2011 - 2015, the Company is currently focussing on the construction of a new gold processing plant within its approved footprint at the TGME plant, and for the processing of the Theta Open Pit oxide gold ore. Nearby surface and underground mines and prospects are expected to be further evaluated in the future.

The Company aims to build a solid production platform to over 100Kozpa based primarily around shallow, open-cut or adit-entry hard rock mining sources. Theta Gold Mines has access to over 43 historical mines and prospect areas that can be accessed and explored, with over 6.7Moz of historical production recorded.

Contact:

Bill Guy, Chairman
Theta Gold Mines Limited
M: +61 2 8912 2126
billg@thetagoldmines.com

Rob Thomson
Managing Director
M: +61 2 8912 2126
robt@thetagoldmines.com

United States - Michael Porter
Porter, LeVay and Rose Inc
+1 212 564 4700,
theta@plrinvest.com

Source:

Theta Gold Mines Limited

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