Modern Mining April 2015

MINING News

New Namibian mine achieves commercial production

Canada’s B2Gold Corp has announced that its new Otjikoto gold mine in Namibia achieved commercial production, ahead of schedule, on 28 February 2015. The ramp up of production continues well ahead of budget. The open-pit mine poured its first gold on 11 December 2014, one week ahead of schedule. In January 2015, the project continued its strong ramp up to commer- cial production ahead of schedule and produced 8 587 ounces against a budget of 8 267 ounces. Better than budgeted performance was attributed to additional mill availability (89,6 % versus budget of 70 %) and better than anticipated through- put (34 % above budget). February 2015 also saw gold production ahead of target (10 228 ounces produced versus 8 863 ounces budgeted). Operating cash costs for the month of January were US$612 per ounce versus a budget of US$705 ounce. For 2015, Otjikoto is expected to pro- duce between 140 000 and 150 000 ounces of gold at a cash operating cost of approxi- mately US$500-525 per ounce and all in sustaining costs of approximately US$700 per ounce. The company expects annual gold production to increase to approxi- mately 200 000 ounces in 2016 and 2017. Ferrum Crescent, the direct reduction iron (DRI) pellet project developer, says it has determined the final location for infill drilling and ore reserve development over Zones A, B and C of the Moonlight deposit, located in Limpopo Province, South Africa. These zones have now been selected for the primary development model over the first 10 years of mine life. Drilling over Zone D was the final phase of comprehensive area drilling undertaken to identifywhere the next stage of the bank- able feasibility study (BFS) will be focused. Zone D drilling confirmed comparable grades to those previously identified within the inferred resource, and consequently the adjacent zones with shallower intersec- tions, higher grades and better stripping economics will progress first into develop- ment. A new mineralised zone outside the limits of the current JORC (2012) mineral

The Otjikoto mine poured its first gold on 11 December 2014, one week ahead of schedule (photo: B2Gold Corp). Expansion of the Otjikoto mill from 2,5 Mt/a to 3,0 Mt/a continues on schedule with the installation of the first additional leach tank to be completed during the first quarter of 2015. Major additional work that must be completed includes installa- tion of a second leach tank, construction of a pebble crusher and associated piping and pumping components. It is antici- pated that this work will be completed by August 31, 2015. This will support additional throughput initially from the Otjikoto mine and subsequently from the fully permitted Wolfshag deposit that is located immediately adjacent to the main Otjikoto deposit. 

Mine location identified after drilling resource was also identified in Zone E.

we have now selected the key zones for first mine development. Ferrum will work to establish a full ore reserve and com- plete advanced metallurgical test work at Moonlight. Because we are looking to establish a mining/beneficiation-DRI pellet manufacturing operation to supply a pre- mium, high-grade iron product, the current design phase is especially important as we progress talks with a number of parties. As we continue to de-risk Moonlight, by nar- rowing development parameters, I believe that the company is well positioned to take advantage of the significant changes now occurring within the iron supply market. “Given the positive advancement of the BFS and the advanced discussions we have entered into with three separate parties, the market looks positive for us to achieve cash flow by 2019/20.” Ferrum Crescent is an Australian com- pany listed on the ASX, London’s AIM and the JSE. 

The drilling programme was a compo- nent part in the mine design, location and costing element of the Moonlight BFS. The BFS was recommenced in Q4 2014 with the detailed mine plan identified as being the next core element scheduled for comple- tion. Following analysis of the 10 RC drill holes, the first 10-year development model will be based on Zones A, B and C and fur- ther infill drilling will commence next to establish a JORC (2012) ore reserve and for advanced beneficiation work to be undertaken as part of the DRI plant design process. The success of infill drilling will also determine whether bulk sampling is necessary to complete the full mine design and plant costings. Commenting recently Tom Revy, CEO of Ferrum Crescent, said: “Following comple- tion of this phase of mine design drilling,

April 2015  MODERN MINING  17