Wits Gold's Advances De Bron-Merriespruit (DBM) Project Into Final Feasibility Study Stage

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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 ( PFS ) 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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This article appears in: Investing , Commodities

Referenced Stocks: PFS

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