Bird in Hand Gold Project

The Bird in Hand Gold Project (BIHGP)) is situated on the site of the historic Bird in Hand gold mine, located 2.7km from Woodside in the Adelaide Hills, 30km east of South Australia’s capital city Adelaide. The BIHGP is located approximately 35km north of Terramin’s existing Angas Zinc Mine (AZM).

The proximity of the BIHGP to Terramin’s existing processing facilities at AZM which can treat the gold-bearing ore to produce gold concentrate allows for the use of road haulage along existing sealed road infrastructure.

BIHGP has a high-grade Resource of 265,000 ounces of gold at 12.6g/t, which is amenable to underground mining. In June 2020, Terramin announced the results of a Feasibility Study which indicated that BIHGP has a robust financial outcome (based on a gold price of $2,300 per ounce), including a post-tax NPV8 $141 million and IRR of 80.5% over approximately 4 years of production.

The BIHGP’s base case projection is to produce an average of 44,700 ounces of gold per annum over four years at a low C1 cash cost of $737 per ounce and an all-in sustaining cost of $959 per ounce. The pre-production capital is estimated to be $54 million with potential for reductions in capital as studies are refined. Payback of pre-production capital is less than 1 year.

BIHGP will be an underground mine utilising the cut and fill mining method. The mine and associated infrastructure will be located on freehold land currently owned by Terramin.

The BIHGP has significant upside potential with the Bird in Hand ore body remaining open at depth and the nearby historical high-grade gold mines, Bird in Hand Extended Mine and Ridge Mine yet to be explored.

There is potential to access the Bird in Hand Extended and The Ridge ore bodies, located 200m and 400m respectively from the underground infrastructure of the Bird in Hand mine.

Both mines were last worked in the 1890’s, The Ridge has a recorded production of 517 ounces of gold from 2,766 tonnes at an average grade of 5.8g/t gold. Subsequent retreatment of 6,266 tonnes of The Ridge tails produced an additional 977 ounces, an additional 4.9 g/t bringing the average grade to 10.6g/t.

Bird-in-Hand Extended had one shaft sunk to 30m and at least 80m of drives were developed. The lode was up to 6m wide and assayed samples averaged 25 – 31g/t gold.

In February 2023 the SA Government rejected Terramin’s proposal to mine Gold at Bird in Hand. In August 2023 Terramin commenced legal proceedings in the Supreme Court of South Australia, seeking a judicial review of this decision by the SA Government.