Twin Hills a golden opportunity
Osino to invest billions
Once fully operational, Osino Resources' Twin Hill Gold Mine is expected to generate an average annual revenue of N$4.23 billion.
Canadian- and Namibian-listed Osino Resources plans to invest more than N$6.6 billion in advancing its exploration and mining assets in Namibia. Its key project, Twin Hills, is expected to start gold production by mid-2026.
Discovered by Osino in 2019, Twin Hills is an open-pit gold project in central Namibia that is being fast-tracked to production.
Encompassing 11 Exclusive Prospecting Licences (EPLs) from the company, it spans an area of around 1 516 km². Substantial strides were made in the project's development in 2022, culminating in the publication of the Definitive Feasibility Study results in July this year.
“The company has a large ground position of more than 4 700 km² located in Namibia’s prospective Damara sedimentary mineral belt, mostly in proximity to and along strike of the producing Navachab and Otjikoto gold mines,” Osino says in its 2022 Sustainability Report, released last week.
The company’s vision is become Namibia’s most respected and responsible gold mining company, while its purpose is to discover and develop gold projects in the country that build value for all stakeholders.
“We are actively advancing a range of gold prospects and targets along the [Damara] belt by utilising a portfolio approach geared towards discovery and targeting gold mineralisation that fits the broad orogenic gold model,” Osino says in its sustainability report.
Project highlights
The bulk of Osino’s mineral resource is contained in four distinct deposits – Twin Hills West (THW), Bulge, Twin Hills Central (THC) and Clouds. The assets comprise of an estimated 2.94 million ounces of gold in the measured and indicated mineral resource category, as well as 0.25 million ounces in the inferred category.
Average annual gold production of 162 000 ounces is anticipated over 13 years. Processing plant throughput of five million tonnes per annum, with 92% expected gold recovery, is planned.
The pre-tax net present value (NPV) of the project ranges between 798 million and 1.005 billion Canadian dollar – or N$10 billion and N$13 billion at the current exchange rate.
Overall capital cost amounts to 494 million Canadian dollar. Average annual revenue of N$4.23 billion is expected.
Around 1 000 staff (employees and contractors) will be needed during construction and operation of the project.
“Employment will aim to increase female representation, prioritise Namibian nationals and, as far as possible, provide opportunities for local employment,” Osino says in its sustainability report.
“Adding value beyond taxes, royalties, financial returns and employment is a core philosophy of Osino,” the company adds.
2022 performance
Osino invested N$110 million in the exploration and development of its assets in Namibia in its 2022 financial year, compared to N$224.6 million in the previous 12 months.
The company employed 87 people, of which 92% were Namibia. It also provided jobs to 51 contractors, of which 22% were women. About N$27.3 million were paid to employees in wages and benefits.
The company paid N$2.9 million in social security, employees’ tax, training levies and workman’s compensation to government.
“Thirty eight percent of Osino’s employees are local to the Twin Hills area (within 75 km) and typically support an average household of 3.4 people,” the company said.
Osino’s procurement spend in the period under review amounted to N$124 million, of which N$31.7 million were in the Twin Hills area.
Ondundu
In addition to the Twin Hills project, Osino also boasts the Ondundu Gold Project.
In July 2022, Osino obtained the Ondundu exploration property, situated 120 km north of the Twin Hills Gold Project.
The inaugural mineral resource estimate for Ondundu was disclosed in October 2022, revealing 0.9 million ounces of gold in the inferred mineral resource category. In April 2023, the infill and scissor hole drill programs yielded one of the best intercepts in Osino's history.
Karibib
Beyond Twin Hills, exploration efforts persist in both brownfield and greenfield areas along the extensions of the Karibib gold trend to the east and west of the Twin Hills Gold Project. Additionally, exploration focuses on strike extensions of the Navachab Gold Mine stratigraphy.
The exploration activities encompass drilling and sampling at the Kranzberg, Twin Hills East and Rheinsheim targets, aiming to uncover satellite mineralisation within a feasible distance for transportation to the processing plant of the Twin Hills Gold Project.
Omaruru
Osino collaboratively owns the Omaruru Lithium Project with Prospect Resources Limited, jointly holding an Exclusive Prospecting Licence (EPL) covering approximately 158 km².
Since the inception of the joint venture in 2022, Prospect has made substantial progress in advancing the project. Various drill and soil sampling programmes have not only identified new mineralisation, but also unveiled extensions to existing known mineralisation.
Otjiwarongo
The Otjiwarongo Regional Project encompasses eight licenses, collectively covering a surface area of 2 800 km² in north-central Namibia.
Notably, the project features the promising Eureka discovery, discovered in late 2022 and subsequently drill-tested in early 2023, yielding the company's most significant intercept to date. Situated just 35 km northeast of Ondundu, this project marks the emergence of a new gold district.
Sandveld
Osino has recently acquired an expansive new land parcel situated approximately 100 km east of Twin Hills, resulting in a combined project area of 3 575 km².
This area encompasses what Osino identifies as the eastern extension of the prolific Karibib Fault, the host structure for the Twin Hills Gold Project.
Given that much of the region is covered by youthful sediments, conventional exploration methods prove ineffective. In response, Osino intends to commence exploration this year, employing a blend of in-house proprietary sample collection and analysis techniques.
Developing Twin Hills
The feasibility and planning work for the future mine includes a significant focus on embedding sustainability into the design at the earliest stages of the project, Osino says.
This includes environmental aspects such as increasing the proportion of renewable energy generated, diversifying water sources and maximising water efficiency and recycling in the processing plant, planning for a dry-stack tailings facility that significantly reduces water loss and exploring opportunities to reduce the environmental footprint of mine infrastructure and the mine layout.
A detailed land management plan will be developed that covers land improvement and good stewardship, and contributes to creating post-mine closure opportunities. The plan also envisages creating opportunities for environmental research and education, and hosting and championing community-based conservation.
Osino has engaged specialist consultants to compile a conceptual mine closure plan for the Twin Hills Gold Project to ensure that the design phases consider cost-effective sustainable closure, facilitate the redevelopment of the site and identify suitable post-closure land uses for infrastructure and services on site.
“Ensuring social benefit and mitigating potential negative impacts are priorities,” the company says.
“Detailed community baseline studies and needs and impact assessments will be undertaken to inform a comprehensive value creation and impact management plan. We aim to explore related opportunities to create jobs, develop local skills and promote local economic development,” Osino adds.
Community
Detailed community baseline studies as well as needs and impact assessments will be undertaken during the early stage of construction of Twin Hills. These will form the basis of a comprehensive value creation and impact management plan, Osino says.
“We are scoping a local hiring and skills development plan to identify how to increase the proportion of future employees from our host communities. Related to this, a local procurement and supplier identification and development plan will be drafted.”
Advanced studies and plans are in place to utilise on-site materials such as waste marble, calcrete and sand for the production of building materials during construction.
This initiative aims to enhance local employment and foster business development opportunities. Additionally, it contributes to the reduction of the environmental impact associated with building construction.
An employee housing plan will contribute to community infrastructure development, municipal income and economic well-being, particularly in Karibib and Omaruru, Osino says.
Discovered by Osino in 2019, Twin Hills is an open-pit gold project in central Namibia that is being fast-tracked to production.
Encompassing 11 Exclusive Prospecting Licences (EPLs) from the company, it spans an area of around 1 516 km². Substantial strides were made in the project's development in 2022, culminating in the publication of the Definitive Feasibility Study results in July this year.
“The company has a large ground position of more than 4 700 km² located in Namibia’s prospective Damara sedimentary mineral belt, mostly in proximity to and along strike of the producing Navachab and Otjikoto gold mines,” Osino says in its 2022 Sustainability Report, released last week.
The company’s vision is become Namibia’s most respected and responsible gold mining company, while its purpose is to discover and develop gold projects in the country that build value for all stakeholders.
“We are actively advancing a range of gold prospects and targets along the [Damara] belt by utilising a portfolio approach geared towards discovery and targeting gold mineralisation that fits the broad orogenic gold model,” Osino says in its sustainability report.
Project highlights
The bulk of Osino’s mineral resource is contained in four distinct deposits – Twin Hills West (THW), Bulge, Twin Hills Central (THC) and Clouds. The assets comprise of an estimated 2.94 million ounces of gold in the measured and indicated mineral resource category, as well as 0.25 million ounces in the inferred category.
Average annual gold production of 162 000 ounces is anticipated over 13 years. Processing plant throughput of five million tonnes per annum, with 92% expected gold recovery, is planned.
The pre-tax net present value (NPV) of the project ranges between 798 million and 1.005 billion Canadian dollar – or N$10 billion and N$13 billion at the current exchange rate.
Overall capital cost amounts to 494 million Canadian dollar. Average annual revenue of N$4.23 billion is expected.
Around 1 000 staff (employees and contractors) will be needed during construction and operation of the project.
“Employment will aim to increase female representation, prioritise Namibian nationals and, as far as possible, provide opportunities for local employment,” Osino says in its sustainability report.
“Adding value beyond taxes, royalties, financial returns and employment is a core philosophy of Osino,” the company adds.
2022 performance
Osino invested N$110 million in the exploration and development of its assets in Namibia in its 2022 financial year, compared to N$224.6 million in the previous 12 months.
The company employed 87 people, of which 92% were Namibia. It also provided jobs to 51 contractors, of which 22% were women. About N$27.3 million were paid to employees in wages and benefits.
The company paid N$2.9 million in social security, employees’ tax, training levies and workman’s compensation to government.
“Thirty eight percent of Osino’s employees are local to the Twin Hills area (within 75 km) and typically support an average household of 3.4 people,” the company said.
Osino’s procurement spend in the period under review amounted to N$124 million, of which N$31.7 million were in the Twin Hills area.
Ondundu
In addition to the Twin Hills project, Osino also boasts the Ondundu Gold Project.
In July 2022, Osino obtained the Ondundu exploration property, situated 120 km north of the Twin Hills Gold Project.
The inaugural mineral resource estimate for Ondundu was disclosed in October 2022, revealing 0.9 million ounces of gold in the inferred mineral resource category. In April 2023, the infill and scissor hole drill programs yielded one of the best intercepts in Osino's history.
Karibib
Beyond Twin Hills, exploration efforts persist in both brownfield and greenfield areas along the extensions of the Karibib gold trend to the east and west of the Twin Hills Gold Project. Additionally, exploration focuses on strike extensions of the Navachab Gold Mine stratigraphy.
The exploration activities encompass drilling and sampling at the Kranzberg, Twin Hills East and Rheinsheim targets, aiming to uncover satellite mineralisation within a feasible distance for transportation to the processing plant of the Twin Hills Gold Project.
Omaruru
Osino collaboratively owns the Omaruru Lithium Project with Prospect Resources Limited, jointly holding an Exclusive Prospecting Licence (EPL) covering approximately 158 km².
Since the inception of the joint venture in 2022, Prospect has made substantial progress in advancing the project. Various drill and soil sampling programmes have not only identified new mineralisation, but also unveiled extensions to existing known mineralisation.
Otjiwarongo
The Otjiwarongo Regional Project encompasses eight licenses, collectively covering a surface area of 2 800 km² in north-central Namibia.
Notably, the project features the promising Eureka discovery, discovered in late 2022 and subsequently drill-tested in early 2023, yielding the company's most significant intercept to date. Situated just 35 km northeast of Ondundu, this project marks the emergence of a new gold district.
Sandveld
Osino has recently acquired an expansive new land parcel situated approximately 100 km east of Twin Hills, resulting in a combined project area of 3 575 km².
This area encompasses what Osino identifies as the eastern extension of the prolific Karibib Fault, the host structure for the Twin Hills Gold Project.
Given that much of the region is covered by youthful sediments, conventional exploration methods prove ineffective. In response, Osino intends to commence exploration this year, employing a blend of in-house proprietary sample collection and analysis techniques.
Developing Twin Hills
The feasibility and planning work for the future mine includes a significant focus on embedding sustainability into the design at the earliest stages of the project, Osino says.
This includes environmental aspects such as increasing the proportion of renewable energy generated, diversifying water sources and maximising water efficiency and recycling in the processing plant, planning for a dry-stack tailings facility that significantly reduces water loss and exploring opportunities to reduce the environmental footprint of mine infrastructure and the mine layout.
A detailed land management plan will be developed that covers land improvement and good stewardship, and contributes to creating post-mine closure opportunities. The plan also envisages creating opportunities for environmental research and education, and hosting and championing community-based conservation.
Osino has engaged specialist consultants to compile a conceptual mine closure plan for the Twin Hills Gold Project to ensure that the design phases consider cost-effective sustainable closure, facilitate the redevelopment of the site and identify suitable post-closure land uses for infrastructure and services on site.
“Ensuring social benefit and mitigating potential negative impacts are priorities,” the company says.
“Detailed community baseline studies and needs and impact assessments will be undertaken to inform a comprehensive value creation and impact management plan. We aim to explore related opportunities to create jobs, develop local skills and promote local economic development,” Osino adds.
Community
Detailed community baseline studies as well as needs and impact assessments will be undertaken during the early stage of construction of Twin Hills. These will form the basis of a comprehensive value creation and impact management plan, Osino says.
“We are scoping a local hiring and skills development plan to identify how to increase the proportion of future employees from our host communities. Related to this, a local procurement and supplier identification and development plan will be drafted.”
Advanced studies and plans are in place to utilise on-site materials such as waste marble, calcrete and sand for the production of building materials during construction.
This initiative aims to enhance local employment and foster business development opportunities. Additionally, it contributes to the reduction of the environmental impact associated with building construction.
An employee housing plan will contribute to community infrastructure development, municipal income and economic well-being, particularly in Karibib and Omaruru, Osino says.
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