Heye Daun

AFTER discovering the Namibian gold project Twin Hills in 2019, Heye Daun’s Osino Resources is now making plans for its $375m construction. But there’s still a lot of water to flow under the bridge; in fact, first gold is not expected for three years. So the task for Daun is to transform Osino from interesting exploration play to operator. That needs three things: increased project confidence, finance, and skills. Based on a prefeasibility study published in October last year, Twin Hills could produce about 169,000 ounces of gold a year for 16 years, at an all-in sustaining cost of $930/oz.

That sounds mighty promising, but what’s critical for finance confidence is a definitive feasibility study, the result of which is due in the second quarter. As for attracting project skills, Daun acknowledges Osino is not there yet. So in addition to casting around for people, Osino is also open to attracting a joint venture partner; in fact, it’s a preference. One thinks of B2Gold, the Canadian firm Osino has transacted with in the past, the latest being the purchase of the Ondundu gold prospect, also in Namibia, for which Osino paid in shares.

In other deals, Osino agreed that Australian-listed Prospect Resources could earn a 51% stake in its Omaruru Lithium Project provided it spent $1.56m. But it’s really all about Twin Hills. A mining licence has been issued for the project but that turns on finalising an environmental permit, which in turn depends on some delicate relocations of 70-year-old graves recently uncovered at the site.