The gold mining industry of South Africa’s Eastern Goldfields dates back nearly 130 years, but in recent years it has undergone a reawakening. Last year we talked to Theta Gold Mines Limited, owners of 74% of the famous East Transvaal Goldfield, about their efforts to relaunch the historical mining centre.
When we last visited Theta Gold Mines, the company were ramping up exploration, already hosting 3 million ounces of gold. This year, that figure has grown to 6 million ounces.
“It has been a pretty positive year,” says Bill Guy, Chairman of Theta Gold Mines. “We are on the cusp now. We have finished our documentation for processing ore in Frankfort. The guys are mining successfully. We have trained 30 staff. The project has been through a lot of operational readiness processes and met the requirements of all the necessary regulations.”
To the Highest Standards
As well as being a great achievement in itself, this work has also demonstrated the company’s ability to deliver and process ore. It is a matter not just of logistics and mining capability, but of being able to navigate and meet the standards of one of the most robust mining regimes in the world.
“It is a very detailed process in South Africa,” Guy points out. “We had 916 interested and affected parties to consult. We got 915 of those across the line, with just one objection, and we are dealing with that at the moment.”
Guy is confident of Theta Gold Mines’ ability to get through that process, and once it is complete the MR83 mine will be fully permitted, giving the company access to at least 80% of the ore foreseen in the life-of-mine plan.
“We have delivered on mining and the bulk sampling, so our next task is to deliver that ore to the Barberton gold plant,” Guy says. “We have got 6 million ounces under management, 620 kilometres to explore, and 43 historical mine sites. We know most of these mines are virtually continuous.”
Because the secret of the MR83 site is that the historical cut grade 21g/tons. There are three sites within it boasting a grade of 21 grams or more, each of which has a historically different name. However, if you start looking at ore gradients of six grams or more, those three sites quickly merge to become one epic gold mine.
“We are looking forward to exploring that,” Guy says.
An Established Sector
To get this far, Theta Gold Mines has had leverage of a portfolio of different skills, ranging from engineering expertise to legal know-how.
“People have funny views on South Africa, and the country has its issues, but it is one of the oldest and most sophisticated mining jurisdictions in the world,” Guy argues. “It is not in the top ten gold-producing nations anymore, but it still sits at eleven or twelve on the list. It has very detailed mining law which requires a lot of legal and technical expertise to be compliant. It is a long process, but we have come through most of that process now, and the law is very strong.”
Indeed, in many ways, the gold that Theta Gold Mines is producing today has been 130 years in the making.
“That the ground is there today still intact, is a big achievement by everyone in the company before me,” Guy says. “We have gathered so much historical data from the 60s 70s and 80s, and we have pulled it all together. We are looking at a streaming deal for US$70 million, and once we solidify that the market will view us in a very different light. Some of the best fund managers in the world are looking at this project.”
Green Gold
Above and beyond Theta Gold Mines’ regulatory responsibilities, the company has also invested heavily in ensuring its mining projects have the smallest possible negative environmental impact. Here the mining projects are led not just by regulatory requirements, but by a wealth of scientific data.
“In terms of ESG, Africa, South Africa and Europe are all very advanced,” Guy says. “What we are doing with our ESG programmes is a function of 30 environmental studies. We have seen that the river system is under pressure, there are challenges around invasive species and agricultural pressure.”
To preserve the environment, Theta Gold Mines has built a forum that includes figures from local industry, agriculture and mining dedicated to reverting the region’s water basin, getting more water into its rivers.
“In the long-term, we deliver more water than we take,” Guy tells us. “That river system is responsible for the winter water for the farmers, and the Olifants dam that supports farmers and flows into the Kruger National Park.”
For Guy, this is not just an add-on, it is an integral part of the company’s planning operations.
“Funding to address those challenges with science and cooperation is built into our feasibility studies, with 55 million rand allocated for that process,” he says. “We are demonstrating that this is not just about tick box exercises. It is about working with NGOs to deliver a real result for South Africa.”
Theta Gold Mines has come a long way even in the year since we last talked with them, but even now the company is still only on the cusp of its biggest achievements.
“We have to execute and build the plant and deliver the project,” Guy explains. “There is a lot of exploration still to do here. We think that this will be one of our better mines as we develop it into the future.”
The firm’s current goal is to deliver on its first four mines, then its first six, but with 620 square kilometres in total, the possibilities from there are endless.
“We are next to the Bushveld Complex, which has some of the best geology in the world,” Guy says. “It is home to 75% of the world’s platinum. What we know now is that gold has been delivered from there into this carbonated basin. We are seeing massive 14-gram reef systems – the first 12 to 14 years of the life of mine will not even exhaust those first three reef systems.”
As Theta continues to grow its operations, we cannot wait to see where they are a year from now.
