Theta Gold Mines

BILL GUY

EXECUTIVE CHAIRMAN

(ASX:TGM)

◾ Company Name: Theta Gold Mines ◾ Company ASX code: TGM ◾ Key Commodities: Gold ◾ Key Personnel: Jacques Du Triou, Chief Operating Officer | Bill Guy, Executive Chairman | Terrence Mokale, Social Director TGME ◾ Locations: South Africa ◾ Market Cap as of 15/08/22: $38.73M ◾ FY22 Share price range – Low/High: $0.051 / $0.210 ◾ Company Website: thetagoldmines.com

COMPANY PROFILE

Theta Gold Mines is an advanced mine operator with its principal interest held in the historical Eastern Transvaal Gold Fields in South Africa, where that country’s gold mining industry began almost 130 years ago.

Formerly known as Stonewall Resources, Theta owns a 74% interest in the TGME Underground Project, consisting of 43 historical mines and nine mining rights, in the Eastern Transvaal gold fields, near Johannesburg and around 300km northeast of the famous Witwatersrand Basin.

The Transvaal Gold System sits geologically on the eastern side of Bushveld Complex – the world’s largest igneous intrusion – where 40-50% of the world’s gold production came out of the Witwatersrand Goldfield.

Theta says that its recent exploration activities across the TGME Underground Project have seen the JORC Resource double to an eyepopping 45.48Mt @ 4.17 g/t Au for 6.1 Moz, over the past three years.

The company has plans to push into production in two phases: The TGME Phase 1 Underground project includes three mines – Frankfort, CDM and Beta, with Phase 2 of the underground project set to include Rietfontein, followed by Vaalhoek and Glynn’s Lydenburg Mine bringing a total of six mines into production over the next 5 years.

In July 2022, the company released a Definitive Feasibility Study (DFS), covering just four of the Phase 1 and Phase 2 mines, namely Beta (including the Beta North, Beta Central and Beta South sections), Frankfort. ClewerDukes Hill-Morgenzon (or CDM), and Rietfontein.

Among the highlights of the DFS is Theta’s vision for a 12.9-year mine life, with operation starting in 2023 and delivering production of 1.24 million ounces of contained gold.

Peak funding requirement is AUD$102 million, with the Project forecast to generate a pre-tax NPV10% of AUD$432 million and pre-tax Internal Rate of Return of 65% at the forecast gold price averaging US$1,642/ oz over the life of the mine.

That would give the project a predicted 33 month payback period, with initial production planned for Q4 2024.

Across the four mines covered in the DFS, Theta says the JORC 2012 Mineral Resources totals 0.09Mt of Measured (77%) material at 5.37 g/t Au, 4.54 Mt ofIndicated material at 6.24 g/t Au, and 7.74 Mt Inferred material 5.56 g/t Au, equating to 15.7koz Measured, 911.5 koz Indicated and 1,383.2 koz of contained gold.

Mineralisation varies across the four historical mines sites contained in the DFS, but includes; Beta’s gold-bearing material is mainly pyrite with trace chalcopyrite with a minor presence of graphitic and carbonaceous material, while Frankfort is commonly banded with barren milky quartz and lesser calcite between sulphide bands.

At CDM, the focus is on the Rho Reef, which consists of an Upper Rho Reef and a Lower Rho Reef separated on average by 2m of argillaceous dolomite, and it’s another story again at Reitfontein, where gold-bearing material and the gold are associated with pyrite and trace arsenopyrite, chalcopyrite and bismuth.

Theta’s 74% interest in the TGME Project is held alongside Black Economic Empowerment entities as part of the country’s ESG initiatives, consisting of a combination of local community trusts, an employee trust and a strategic entrepreneurial partner.

KEY INVESTMENT HIGHLIGHTS

JULY 27, 2022: Theta Gold’s TGME Project DFS confirms NPV of AUD432 million. MAY 4, 2022: Theta Gold Mines raises $1.4 million through a private placement. DECEMBER 7, 2021: Trial mining successfully completed at TGME gold project.