As Theta Gold Mines looks forward to gold production at their Theta Hills Open Cut Project in South Africa, they made some crucial changes to their panel of executive decision makers and have appointed Finn Bhenken to their board of directors. As the Federal Reserve look to push interest rates higher, it may be seen as favorable for domestic gold rates in South Africa.
The new company is scheduled to undertake drilling in order to upgrade the resources to both reserve and indicated categories.
Theta Hills is renowned the world over for having produced over 189 million grams of gold. Bill Guy, the chairman at Theta Hill said in a press conference that Behnken has the requisite experience and skill set with a strong financial background to head the company. He is also said to have a strong and extensive network in Africa and the world over.
Behnken has a technical background in mining engineering and has operational experience in South Africa working as CEO at Tshipi é Ntle Manganese Mining (Pty, overseeing construction and production operations.
He has also served in the finances industry at Nedbank in South Africa with overlapping experience as director of several mining operations, such as the world famous Gemfields plc.
According to a study published a few months ago, there is a potential to produce 67,000 ounces of gold on an annual basis, recovering about 92% of the available ore.
Theta Hill’s resources are estimated by researchers to be around 4.5 million tonnes. The new updates to its mining operations can reach depths of up to 100 meters. The new operation will require around 10 months for construction and will require about 7 months to before any ROI is observed.
Estimated capital requirements for the project are scheduled to be around $16 million, and will cost the company around $152 million. This figure has been quoted after calculating with the applicable discount of up to 7.5%.
The company will start building the project in June 2019 and begin production of gold in as little as nine months, but its decisions will largely rest on a feasibility study that will be released in March 2019. Funds have been allocated to finish a feasibility report for the open cut mining opportunity. Aiding the feasibility report are the positive drilling results which would be fed into resource models.
Theta Gold Mines Ltd was formerly known as Stonewall Resources before they decided to change names to show commitment to their ambitious project.
The company has also reportedly received over $6 million in investments from Chinese investors last month, the majority of these funds will be used to complete the feasibility study and strengthen its financial position in the market.
These new changes in the South African gold industry come at a time when the Federal Reserve is set to increase interest rates. This will increase the value of gold in global markets including South Africa, and Theta Gold Mines Ltd will be one of the stakeholders of the bullion to benefit from this change.