Modern Mining October 2018

MINING News

Twin Hills gold anomaly doubles in size construct a tailings management facil- ity and to produce a large ore inventory ahead of plant commissioning. Staffing for operations has been progressing well with significant focus on the execution of the operations readiness plan. Additionally, community-housing construction is progressing well with the first wave of households successfully relocated. three promising new targets, including a series of gold-bearing veins discovered at Fairview, a sand-covered area 30 km east of Otjikoto. Osino is particularly excited about the Fairview target as this repre- sents the first new gold occurrence in the Otavi area since the discovery of Otjikoto in 1999. This target is open to the east and sampling is currently underway to estab- lish its strike extent.

Osino Resources Corp, listed on the TSX- V, has provided an update and results of the calcrete sampling programme being conducted along the Karibib Gold Trend to the south-west of the Twin Hills project in Namibia. The latest assays add a fur- ther 3,5 km to the contiguous Twin Hills anomaly along the Karibib Gold Trend and illustrate the district scale of the mineral- ising system discovered by Osino to date. Heye Daun, Osino’s CEO, commented: “We are excited about the maiden calcrete assays received along the Karibib Gold Trend which double the size of the Twin Hills gold anomaly. The initial drill results at Twin Hills, reported in July 2018, gave an indication of a large mineralising sys- temwith potential to continue to the west. This has now been borne out by the latest results which increase the strike length of the Twin Hills prospect to 8 km with the possibility of more to come.” In another development and updating on its Otjikoto East gold project (which is directly along strike from B2Gold’s Otjikoto gold mine), Osino says it has identified

“The project is running on schedulewith the first gold pour expected December 2019,” says Paul Chawrun, Teranga’s Chief Operating Officer. “The capital budget remains largely in line with the estimates outlined in the initial feasibility study. Half- way through our project commitments and near the end of the rainy season, we are not seeing any material increases other than unfavourable variances for fuel and foreign exchange, which is moderately impacting equipment, labour and material costs. The majority of our project contin- gency remains. “We have made great progress at Wahgnion,” he adds. “We have materially improved the first five-year cost profile, reducing all-in sustaining costs by US$43 per ounce compared to the previous plan. We have incorporated a high-grade stock- pile strategy, similar to Sabodala’s. And, we have extended the mine life to 13 years, delaying the deposits in the mine plan that are not yet fully drilled off.” The capital cost to construct Wahgnion is estimated at approximately US$240 mil- lion and includes provision for a processing plant, infrastructure, an owner-operated mining fleet and power plant, owner’s cost, contingency, taxes and duties. This represents an increase of US$8 million compared to the capital cost outlined in the 2017 Technical Report and is due to unfavourable variances with respect to fuel and foreign exchange. 

Osino aims to identify additional new gold targets on the remainder of the proj- ect area during 2018 before systematically drill testing these targets during 2019. As Modern Mining reported last month, Osino is managed by Heye Daun, CEO and co-founder, and Alan Friedman, President and co-founder, whowere also co-founders of Auryx Gold. In 2010, Auryx acquired the Otjikoto gold deposit near Otjiwarongo. After it expanded the resource and com- pleted a PEA on the project, Auryx was sold to B2Gold. B2Gold subsequently devel- oped Otjikoto into a highly successful gold mine (and only the second in Namibia, after Navachab). 

Drilling underway on the Karibib Gold Trend (photo: Osino).

October 2018  MODERN MINING  5