Theta has now secured all regulatory licences required for to start operations at the Frankfort mine within its TGME underground gold project in South Africa.

It follows the South African Department of Water and Sanitation awarding the Greater TGME Integrated Water Use Licence (WUL) for the mine – the first of two licences the company requires for the broader Transvaal Gold Mining Estate (TGME) project.

While no public participation process is required for the WUL, Theta Gold Mines (ASX:TGM) has sent out a notification to all stakeholders that the licence was issued and will update its stakeholder engagement forum in terms of its compliance monitoring.

“The full approvals now granted for the Frankfort Mine marks another key step forward for the development of TGME Gold Project,” chairman Bill Guy said.

“Bulk sampling work shall commence on Frankfort mine in the coming weeks with the aim to optimise mining and to maximise ore recovery.

He added that the full approval for Frankfort highlighted the full recognition from all related government departments of Theta’s effort to become a responsible miner in the region.

The final two permits pending on MR83 are expected to be awarded by year-end.

Ready to rumble

With the award of the Frankfort Mine WUL and previous milestones such as the A$110m Sprott Term Sheet for Stream funding and the completion of the Definitive Feasibility Study, Theta is all but set to begin its transformation into an operational, mid-tier gold producer.

TGME is forecast to produce 1.24Moz of gold over the 12.9 year Phase 1 plan, delivering attractive economics with pre-tax net present value and internal rate of return – both measures of a project’s profitability – estimated at US$324m ($498.9m) and 65% respectively.

Capex is a palatable US$174m with payback in 31 months while all-in-sustaining costs are estimated at US$834 per oz.



This article was developed in collaboration with Theta Gold Mines (ASX:TGM), a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.