Wits Gold (WGR.TO) has appointed Turgis Consulting and MDM
Engineering to complete the final Feasibility Study at the
Company's shallow DBM Project (DBM) in the southern Free State
goldfield, South Africa. Turgis will be responsible for the
detailed engineering and mine designs, while MDM Engineering will
focus on the metallurgical plant and related design aspects. The
appointments are effective immediately and the detailed study is
expected to be completed during the third quarter of 2013. Turgis
recently completed the positive Pre-feasibility Study (
) at DBM, which confirmed that a mine at DBM was both technically
and economically viable.
The PFS delineated a Probable gold Reserve of 23.5Mt at a grade
of 4.1g/t Au (3.1Moz), which is contained within that portion of
the Resource at DBM which occurs at depths shallower than 1 000
metres and which contains an Indicated Mineral Resource of 26.7Mt
at 5.8g/t Au (4.99Moz).
DBM will be a shallow underground mine comprising a planned twin
shaft system to 660 metres, with average gold production expected
to be 200 000oz/year over an 18-year life of mine. Production is
expected to peak at 246 777oz at 5.5g/t during year 9, and first
gold production is expected 47 months after shaft sinking
commences. The PFS estimates production cash costs of US$628/oz
with peak capital funding of ZAR2.37 billion (US$296 million at
ZAR8/US$). At a gold price of ZAR R400 000/kg (US$1 555/oz &
ZAR8/US$), DBM has a pre-tax NPV(5%) of ZAR7.3 billion (US$909
million) and an IRR of 28.0%.
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