Theta Gold Mines Commences Civil Works Program at South African TGME Gold Project
Theta Gold Mines (ASX: TGM) has commenced bulk earthworks, integrated water management, and civil engineering activities at its flagship TGME gold project in South Africa, marking a pivotal milestone in the transition from development to construction.
Local companies Mainpro and Pro Instrumentation Construction and Maintenance will perform the work, bringing with them a wealth of expertise and proven track records in large-scale infrastructure and resource developments.
The TGME project comprises near-surface and shallow underground ore bodies 370 kilometres northeast of Johannesburg, where Theta has access to over 43 historical mines and prospect areas with recorded historical production of over 6.7 million ounces.
Bulk Earthworks Platforms
The scope will include the creation of five bulk earthworks platforms, 721 metres of roads, 1,355m of clean and dirty water channels, 10,000 cubic metres of concrete dams, 135m³ of carbon-in-leach bund walls and 5,540m³ of plant civil works.
Cut-and-fill operations will seek to optimise site conditions, ahead of the implementation of advanced water management systems and civil infrastructure programs that will commence in the current quarter and lay the groundwork for upcoming installations.
Theta has appointed processing plant designers RM Process and Eco Elementum to oversee this phase of the project and maintain the highest standards of quality, safety, and innovation.
The company is committed to driving local economic growth and will recruit around 70% of its contractor workforce from neighbouring communities, creating jobs and ensuring its operations deliver tangible local benefitsas well as investing in training programs to equip local workers with the skills needed for long-term employability.
Becoming a Gold Producer
“The start of earthworks and other long-lead activities demonstrates our urgency and commitment to becoming South Africa’s next gold producer,” executive chair Bill Guy said.
“Once civil works and funding are complete, we expect to be commissioning the plant by the end of 2026 and processing ore in the first part of 2027.”
Theta has secured a deal for long-term institutional investors Golden Asia Investment Group and High Gift Investments to cover payment obligations for the upcoming work at TGME while it continues negotiations with lenders on a broader funding package.
In consideration for the payments, Theta will issue 30 million unlisted options to both investors in three equal tranches, with an exercise price of up to $0.30 each and an 18-month expiry.
The company has $8.4 million in available cash to cover initial funding requirements of the $15m it needs for the work, which it expects to take up to a year to complete.
TGME Project History
The TGME project comprises near-surface and shallow underground ore bodies, located next to the historical gold mining town of Pilgrim’s Rest, some 370km northeast of Johannesburg.
Following small-scale production from 2011 to 2015, the company turned its attention to the construction and financing of a new processing plant to increase throughput to 160,000 ounces per annum.
Theta has access to over 43 historical mines and prospect areas in the area, with recorded historical production of over 6.7 million ounces.
Mr Guy said the company remained on target to release an updated and optimised project feasibility study in the coming weeks.