The Evander Project is located within the world-renowned Witwatersrand Basin, which has delivered more than a third of all the gold produced by mankind. The project is located approximately 120km east-south-east of Johannesburg. The Evander Project comprises the No. 6 Shaft area and adjacent Twistdraai area further to the south.
The Evander Gold Mine No. 6 Shaft was formerly owned by Harmony Gold through Evander Gold Mines Limited (EGM). EGM operated four mines in the area which collectively made up the Evander gold field. Sinking of No. 6 Shaft commenced in 1982 and production from the shaft started in 1986. Production ceased in 1998, when a combination of poor gold prices and lack of capital to deepen the shaft to reach the main ore body, rendered production unprofitable.
In February 2008, Taung Gold entered into a joint venture with EGM to earn a majority stake in the project. Following a detailed study of historical data, an intensive drilling campaign and the completion of a successful scoping study in early 2010, the company concluded that it would be better able to unlock value by purchasing 100% of the project.
The sale agreement to acquire the project was signed in September 2010 and Taung Gold became the holder of a mining right over the project in November 2013.
On 12 September 2016, the Company announced the results of a bankable feasibility study (BFS) for the Evander project. The BFS produced a very attractive outcome based on production of 4.11Moz at an average AISC of US$583/oz over the project’s estimated 20-year life-of-mine. The capital cost of pre-production construction is estimated at US$579.3 million with a predicted after-tax NPV5% of US$724.8m and an after-tax IRR of 17.6% over the mine’s life, with a pay-back period of 3.6 years.
The Company is developing contractual arrangements for the construction of the Evander Project and is seeking to secure funding.