Each cubic metre was calculated at a weight of only 1,460 kg and not using the 2,200 kg of contract gravel, in order to take full account of large stones, soil and other foreign materials.
The raw material content used in the calculation is conservatively calculated at 1.76 g gold and 3 kg coltan per cubic metre of contract gravel. Past exploration has shown that these values are highly conservative. We have used an average market price of USD 1,500 per troy ounce of gold and USD 45 per kg for the expected 20% coltan content in the calculation.
The licence area covers at least 80 square kilometres. Approximately 50% of the indicated areas in this territory are heavily mineralized, resulting in a forecast of at least 4,000 ha for gold and coltan mining (2,000 ha for gold and 2,000 ha for coltan).
Tandem Liber Holdings’ total production is based solely on alluvial gold and coltan, with gold being the favored mineral in Area 1.
The overall assessment is based on gold and coltan only, but there are other valuable minerals that can be extracted in this process at little or no additional cost.
An evaluation of the existing railway and loading depot in Area 1, which is part of the licence, has not yet been undertaken. The evaluation of previous infrastructure and other investments has also not been considered.
*An average excavation depth of 1.5 metres has been used in the calculation, although the excavation depth in live operation will be more than 1.5 metres.