Modern Mining April 2018

IN THIS ISSUE…  Mowana poised to go to the next level  Volvo unveils rigid hauler range  Move to automation in mining gathers pace April 2018 Vol 14 No 4 www.crown.co.za M ODERN MINING

MODERN M I N I N G

CONTENTS

APRIL 2018

ARTICLES

COVER 20 Market-leading technology drives AEL’s latest initiating system COPPER 22 Cradle Arc ready to move into high gear at Mowana TRAINING 27 Training programme opens doors for unemployed EQUIPMENT 28 Volvo unveils its rigid haulers TECHNOLOGY 32 Mining industry ready to embrace automation FEATURE – MODULAR PLANTS 36 Modular RC plants can boost recoveries and lower costs 40 Africa’s mining revival needs modular approach 42 Choosing the right mobile substation for a project

Editor Arthur Tassell Advertising Manager Bennie Venter e-mail: benniev@crown.co.za Design & Layout

Darryl James Circulation Karen Smith Publisher Karen Grant

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Deputy Publisher Wilhelm du Plessis Printed by: Shumani Mills Communications

The views expressed in this publication are not necessarily those of the editor or the publisher.

Published monthly by: Crown Publications cc P O Box 140, Bedfordview, 2008

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Tel: (+27 11) 622-4770 Fax: (+27 11) 615-6108 e-mail: mining@crown.co.za www.modernminingmagazine.co.za

REGULARS MINING NEWS 4

Platreef’s Shaft 1 passes the 700-metre mark

5 6 7 8

Caula could be in production by mid-2019

22

Gold Fields and Asanko Gold agree on joint venture

Boungou heads for completion

Endeavour delivers record gold production in 2017 10 Liqhobong plant performs above expectation 11 Drilling starts on Mali gold property 12 Wits and Sibanye-Stillwater launch DigiMine 13 Graphite plant completes dry commissioning 14 Updated study strengthens the case for Kalongwe 16 Graphex makes“significant progress” 17 New Luika propels Shanta Gold into profit 19 AfriTin completes mine design for Uis tin project PRODUCT NEWS 46 Parnis delivers drum winder to Canada 47 Veolia provides treatment plants to New Luika 47 Innovex is BME’s new emulsion brand 48 Caterpillar announces new mining motor grader 48 New SR3 underground laser scanner fromMaptek 49 Zimbabwean mine to get gas monitoring system 50 Torque Africa sets a new African drilling record 51 Pumps prove themselves on dewatering project 52 New Eco drive has applications in mining

Cover The IntelliShot™ electronic initiating system from AEL delivers superior initating technology to the mining industry. See page 20 for further details.

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Average circulation (October–December 2017) 4509

April 2018  MODERN MINING  1

COMMENT

BRSC will put the spotlight on mining in Botswana

T here are two mining conferences each year that I make sure I never miss. One, of course, is the Mining Indaba in Cape Town. The other is the Botswana Resource Sector Con- ference (BRSC) in Gaborone, which is a much smaller affair – it typically attracts between 300 and 400 delegates – but always very enjoy- able and informative. This year it is to be held on 6/7 June at the normal venue, the Gaborone International Convention Centre. It will be interesting to see the mood of del- egates at this year’s event. The mining industry in Botswana is, after all, going through some rather tough times with several mining opera- tions in the country having closed down over the past 18 months, including the BCL nickel/ copper mine in Selebi-Phikwe, Tati Nickel near Francistown, the Lerala diamond mine near the Martin’s Drift border post with South Africa, and the Ghaghoo diamond mine in the central Kalahari. Of course, none of these closures is neces- sarily permanent and one imagines that at least two of these mines, Ghaghoo and Lerala, will, at some point, restart. Ghaghoo is under care and maintenance and will be an excellent asset if market condi- tions improve. Gem Diamonds, the owner, did report last year that it was in discussions with an unidentified potential buyer but these fell through. The company remains committed, however, to disposing of the asset and says in its latest annual report, released in March this year, that “efforts are now under way to identify potential buyers for Ghaghoo.” The situation with Lerala is less clear cut. Its owner, Australia’s Kimberley Diamonds, went into administration in the middle of last year and its Botswanan subsidiary was liquidated a couple of months later. Lerala, which started up in 2008, has always been something of a mar- ginal operation but it does have a plant which is only 10 years old (and which was, in any event, extensively upgraded by Kimberley) and it could well be revived. I’m not sure exactly what went wrong with Lerala but one does hear that the highly abrasive ore from one of the pits played havoc with the processing facility, lead- ing to a disastrous mismatch between mining production and plant throughput. As regards the BCL mine (and Tati Nickel, which BCL bought from Norilsk shortly before going under), there have been reports of potential buyers but nothing has come of negotiations. One of the problems with the Selebi-Phikwe operation – according to the

Botswana media – is that any buyer would have to take on some very onerous environ- mental rehabilitation obligations. Whatever the truth of this, it is clear that the mine is very close to the end of its life and unlikely to ever be returned to its previous status as a pillar of Botswana’s mining industry. Tati Nickel, however, potentially has some life left with the Selkirk deposit (previously the site of an underground mine) offering the pros- pect of a new opencast operation to take over from the mined-out Phoenix pit. So, is there any good news regarding min- ing in Botswana? Certainly there is. Copper mining in the country is in the process of being revived, with the Mowana copper mine once again producing (albeit at a low level, so far), as we report elsewhere in this issue, and Australia’s MOD Resources making great prog- ress with its T3 (or Motheo) copper deposit in the Kalahari, now in the feasibility stage with MOD targeting an investment decision some- time next year. Also on the horizon is Cupric Canyon’s Khoemacau project which would be an under- ground mine. This project – which would involve a very substantial investment– has gone off the radar in recent months and indeed the press in Botswana reported in August last year that Cupric Canyon – or, more precisely, its subsidiary in Botswana, Khoemacau Copper Mining Company – had slashed its workforce. One is hopeful, however, that the project is still on course and I’m expecting to get more clarity on this at the upcoming BRSC. The coal sector is also looking promising, with at least two juniors – Maatla Energy and Minergy, both with South African connections – planning start-ups in the near-term. Maatla’s asset is Mmamabula and it says it is on track to start mine construction this year with first coal sales in 2019. Minergy appears even more advanced and its CEO, Andre Bojé, has said that its Masama project will start delivering saleable coal as early as September this year. Readers wanting to learn more about min- ing in Botswana should consider attending the BRSC. Not all the mining companies and explorers active in the country will be present- ing at the conference but my experience is that most of them are at least represented and one can pick up a great deal of information just by the usual ‘networking’. Further details, for those who are interested, are available from the organ- isers on e-mail brsc@capconferences.com or by visiting the website www.capconferences.com . Arthur Tassell

“The coal sector is also looking promising, with at least two juniors – Maatla Energy and Minergy, both with South African connections – planning start-ups in the near-term.”

April 2018  MODERN MINING  3

MINING News

Platreef ’s Shaft 1 passes the 700-metre mark

Reporting on its Platreef project near Mokopane in its financial results for the year ended 31 December 2017, TSX-listed Ivanhoe Mines says sinking of the proj- ect’s Shaft 1 reached a depth of 584 m at the end of December 2017 and further advanced to 711 m by 19 March, 2018. The shaft is expected to intersect the upper contact of the Flatreef deposit (T1 mineralised zone) at an approximate shaft depth of 783 m during the third quarter of this year. The grade for the T1 mineralised zone at this location is 4,83 g/t of 3PE (plat- inum, palladium and rhodium) plus gold, 0,33 % nickel and 0,15 % copper over a ver- tical thickness of 12 m. Shaft 1, with an internal diameter of 7,25 m, will provide access to the Flatreef deposit and enable the initial under- ground development to take place during the development of Shaft 2. Ultimately, Shaft 1 will become the primary ventila- tion intake shaft during the project’s initial 4 Mt/a production case. The average sinking rate has ranged between 40 and 50 m a month. The shaft includes a 300-mm-thick, concrete-lined shaft wall. The main sinking phase is expected to reach its projected final depth of 980 m below surface in 2019. Shaft stations to provide access to

Benjamin Sekano (centre), Platreef’s Mine Manager, reviews shaft-sinking plans with geotechnical engineers at the 450-m level substation in Shaft 1 (photo: Ivanhoe)

horizontal mine workings for personnel, materials, pump stations and services will be developed at depths of 450 m, 750 m, 850 m and 950 m. The first off-shaft lateral development on the 450-m level, which will serve as an intermediate water-pumping and shaft cable-termination station, was success- fully completed in September 2017. The next off-shaft lateral development will be

at the 750-m level and will serve as the first mine-working level. The 750-m level station development is expected to be completed by September 2018. Shaft 2, which will be located approxi- mately 100 m north-east of Shaft 1, will have an internal diameter of 10 m, will be lined with concrete and sunk to a planned, final depth of more than 1 100 m below surface. It will be equipped with

The Platreef site showing the headgear of Shaft 1 and the boxcut excavation which is part of early-works construction for Shaft 2 (photo: Ivanhoe).

4  MODERN MINING  April 2018

MINING News

two 40-tonne rock-hoisting skips. The headgear for the permanent hoisting facility was designed by South Africa-based Murray & Roberts Cementation. The early-works for Shaft 2 include the excavation of a surface boxcut to a depth of approximately 29 m below surface and the construction of the con- crete hitch (foundation) for the 103‑m-high concrete headgear (headframe) that will house the shaft’s permanent hoist- ing facilities and support the shaft collar. Excavation of the boxcut commenced in January 2018 and is expected to be com- pleted by the end of 2018. Shaft 2 has been engineered with a crushing and hoisting capacity of 6 Mt/a – the single largest hoisting capacity at any mine in Africa. This will allow a relatively quick and capital-efficient first expan- sion of the Platreef project to 6 Mt/a by increasing underground development and commissioning a third 2 Mt/a processing module and associated surface infrastruc- ture as required. A further expansion to more than 8 Mt/a would entail converting Shaft 1 from a ventilation shaft into a hoisting shaft. This would require additional ven- tilation exhaust raises, as well as a further increase of underground development, commissioning of a fourth 2 Mt/a pro- cessing module and associated surface infrastructure, described in the Platreef preliminary economic assessment as Phase 2 of the project. The mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 m to 1 200 m below surface. Primary access to the mining zones will be by way of Shaft 2; second- ary access will be via Shaft 1. During mine production, both shafts also will serve as ventilation intakes. Three additional ventilation exhaust raises are planned to achieve steady-state production. The planned mining operation will use highly productive, mechanised methods, including long-hole stoping and drift- and-fill. Each method will utilise cemented backfill for maximum ore extraction. The ore will be hauled from the stopes to a series of internal ore passes and fed to the bottom of Shaft 2, where it will be crushed and hoisted to surface. It is currently envisaged that the first phase of the Platreef mine will be commis- sioned by 2022. 

Caula could be in production by mid-2019 ASX-listed Mustang Resources says that a strategic review led by its new MD, Dr Bernard Olivier, has concluded that the com- pany’s Caula graphite project in Mozambique could achieve first production by the middle of next year. Dr Evan Kirby, who recently joined the Mustang board as a Non-Executive Director and consultant (and who has sig- nificant graphite and vanadium experience), assisted Dr Olivier in the review.

proven capability to obtain exploration and mining permits and the ability to develop trial mining and processing operations. The team will be able to utilise the existing infrastructure and operations camp of the ruby project to assist with graphite project development. Furthermore, the 200 t/h capacity of the processing plant for the ruby project is ten times larger than the capacity required for the trial mining phase of the graphite and vanadium project. Mustang considers that trial mining and processing operations at Caula could produce both graphite and vanadium con- centrates. The vanadium concentrate would either be sold or stockpiled for further pro- cessing to high purity vanadium products as part of full-scale development. The trial mining development strategy is based on a robust, low-cost mining operation and construction of a processing plant capa- ble of handling approximately 100 000 t/a of ore. This scale of operations was decided after discussions with an equipment sup- plier, followed by preliminary considerations of costs and potential revenues. The plant will be designed to produce high-grade graphite concentrates as well as vanadium concentrate. In practice, con- centrate production rates and qualities will depend on the ore grades fed to the plant, the processing characteristics of the ore, and on plant performance levels achieved. It is anticipated that sales of graphite and vana- dium products produced from trial mining will help to secure binding off-take agree- ments and associated finance required for full-scale project development. The complex nature of graphite and vana- dium extraction means that it is likely that virtually all of the equipment purchased for trial mining will be incorporated into full- scale operations. Development of a full-scale mining and processing operation will be considered by the Scoping Study. Conditional on a positive outcome of the Scoping Study, a Definitive Feasibility Study (DFS) will be undertaken to serve as a basis for project development and financing. Wherever possible, operational experience from trial mining and processing operations will be incorporated into the DFS. The Caula project has delivered a maiden JORC inferred resource of 5,4Mt at an average grade of 13 %TGC (6 % cut-off) for more than 700 000 tonnes of contained graphite. The exploration results included exceptionally high-grade intercepts of up to 26 %TGC. 

The strategic review does not form part of the formal Scoping Study, which is set for completion in the June 2018 quarter. The Scoping Study will consider the merits of a full commercial-scale graphite and vanadium project with production levels appropriate to an updated Mineral Resource Estimate, and full consideration of the modifying factors covered in the JORC Code, 2012 Edition. The key outcome of the review was the recommendation to establish trial mining and processing operations for completion during Q2 2019. Mustang’s board has accepted the recommendation. This recommendation is based on the following considerations:  Exploration activities have encountered wide intersections of mineralisation with potentially economic graphite and vana- dium values.  Furthermore, the scale and configuration (general topography, width, dip, strike length and surface outcrop) of the deposit are favourable to trial mining activities ahead of full economic scale exploitation.  Trial mining and processing will gener- ate detailed technical information for use in formal feasibility studies of full-scale project development. It will also provide product samples for evaluation by offtake partners, the evaluation of marketing arrangements and the generation of rev- enue from the sale of the graphite and vanadium products. Cost considerations indicate that Mustang could finance the establishment of trial mining and processing from its currently available finance facility and planned fund- ing through the current rights issue. Work completed to date has shown that Caula could deliver an exceptional com- bination of both high-grade (13 % TGC) mineralisation and large flakes sizes (approxi- mately 55 % large, jumbo and super jumbo) and acceptable purity levels (>95 %TGC aver- age in all graphite product flake sizes). The vanadium content of the ore could contribute very significant additional value. At the adjacent Montepuez ruby pro­ ject, Mustang has an experienced team with

April 2018  MODERN MINING  5

MINING News

The Asanko gold mine processing plant. Its original capacity was 3 Mt/a but it has now been upgraded to 5 Mt/a (photo: Asanko Gold).

Gold Fields and Asanko Gold agree on joint venture

Asanko Gold Inc, listed on the TSX and NYSE American, has entered into certain definitive agreements under which it will receive US$185 million for a 50 % joint ven- ture (JV) interest in its Asanko Gold Mine (AGM) from subsidiaries of Gold Fields, one of the world’s largest gold producers. Gold Fields operates the Tarkwa and Damang mines in Ghana and is the country’s second largest gold producer. Asanko and Gold Fields will, among other things, form an incorporated 50:50 corporate JV which will own Asanko’s 90 % interest in AGM and all associated properties in Ghana. The Government of Ghana will continue to hold a free-carried 10 % interest. In addition to the JV interest, Gold Fields will purchase a 9,9 % sharehold- ing interest in Asanko for approximately US$17,6 million. Asanko will remain the manager and operator of AGM and will continue to be paid an arm’s length management fee for services rendered to the JV of approxi- mately US$6 million per annum. Asanko will use the proceeds primarily to repay its outstanding Red Kite debt of US$164 million. It says it views the JV as a significantly superior outcome than a restructuring of the Red Kite debt facility as it provides a balanced risk/return pro- file and creates a debt-free platform that will enable Asanko to accelerate growth opportunities and pursue its strategy of becoming a mid-tier gold producer. “This transaction presents a unique opportunity for Asanko to de-risk its future production targets whilst at the same time

eliminating corporate debt. With a healthy balance sheet and robust operational cash flows, together with a strong techni- cal endorsement, our Life of Mine plan is assured,” said Asanko’s President and CEO, Peter Breese. “After carefully weighing the benefits of this transaction, we have determined that it is superior to the alternative of engaging with Red Kite to extend our debt. With the repayment of the Red Kite debt, Asanko has achieved significant financial flexibility moving forward as we seek to continue to grow our business over the medium term. “The mine is now operating well within our business targets, with mining effi- ciencies and the process plant delivering ahead of plan. With this new investment and the freeing up of our balance sheet,

we will now move forward with the devel- opment of our large scale Esaase deposit, with a view to commencing production in 2019 with an interim trucking operation until the conveyor is fully operational in late 2020. We look forward to working in partnership with Gold Fields and sharing mining and exploration expertise to create added value for all our stakeholders.” Nick Holland, CEO of Gold Fields, com- mented: “West Africa is an important part of our business and we look forward to a long partnership with Asanko in Ghana. We view the Asanko Gold Mine as a high- quality asset and a great addition to our existing portfolio of open-pit gold opera- tions in the country.” AGM produced approximately 205 koz of gold in 2017 at an AISC of US$1 007/oz. 

The Nkran pit, currently the backbone of the AGM operation. It will be joined in 2019 by the Esaase deposit, located to the north of Nkran. The two operations will be linked by a 27 km long overland conveyor (photo: Asanko Gold).

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MINING News

Boungou heads for completion

Tanga encouraged by Joumbira drilling

SEMAFO Inc, listed on the TSX, recently reported that construction of its Boungou gold mine in Burkina Faso was 87 % com- plete, with first gold scheduled to be poured early in the third quarter of 2018. In a first step towards this milestone, SEMAFO has begun commissioning activities on dry plant equipment. Over the coming weeks, as construction continues, the crushing and reclaim circuit equipment required for initial production will undergo testing. The power plant, which was over 90 % complete at the end of February, has been partially operational since early March. Development is on budget with US$182 million of the US$231 million capi- tal expenditure having been incurred by the end of February this year.

Completion of the gold room and plant services has been advanced from the third quarter to the second quarter. Pre-stripping at the mine site is 69 % complete with 12,5 Mt of the projected 18 Mt extracted and ore extraction will commence in the coming weeks. Some 1 818 personnel including con- tractors are employed on site, 85 % of whom are Burkinabe. The safety record is excellent with 4,5 million man-hours (454 days) having been worked without a lost- time injury. Located 320 km from the capital, Ougadougou, in the south-east of the country on SEMAFO’s Natougou property, Boungou will be a high-grade open-pit mine with the processing facility consist- ing of a 4 000 tonnes per day CIP plant. 

ASX-listed Tanga Resources has announced encouraging developments from diamond drilling at the Joumbira zinc project in Namibia, with semi-massive sulphides being intersected in the first diamond drill hole (JBDD001) of the initial drilling programme targeting shallow, high-grade, zinc-lead mineralisation. Drill hole JBDD001 was positioned as a twin hole to the historical hole J017, drilled by Messina Transvaal Development. Host stratigraphy (limestone and calc-silicate) was intersected between 56,5 m and 81,5 m, with substantial semi-massive sulphides intersected between 67,1 m and 71,0 m and 76,1 m and 77,82 m, with visually identified sphalerite (zinc) and galena (lead). These latest visual observations of drill core in which sphalerite and galena are the dominant sulphide minerals support the reported historical observations at Joumbira. No exploration has been com- pleted on either the immediate target area or surrounding area for over 16 years, and no modern exploration or assay methods have been applied, says Tanga. Joumbira is an advanced, high grade zinc-lead project located in the highly pro- spective and well-endowed Damaran Belt of Namibia. It is located in central Namibia, approximately 190 km by sealed road from the capital, Windhoek, and 400 km from the port of Walvis Bay. The project has excellent infrastructure with the major service town of Otjiwarongo located 50 km to the north. Tanga has an option to acquire Coldstone Investments, which has a joint venture agreement with Epangelo Mining Company, owned by the Namibian government, to earn in up to 80 % (with the ability to increase to 90 %) of Joumbira. 

View of the grinding circuit at Boungou (photo: SEMAFO).

April 2018  MODERN MINING  7

MINING News

Endeavour delivers record gold production in 2017

attractive one, with an average annual pro- duction that is likely to be in the region of 150 000 oz/a. Apart from Houndé and Ity, Endeavour also operates the Tabakoto (Mali), Karma (Burkina Faso) and Agbaou (Côte d’Ivoire) mines. Tabakoto was acquired by Endeavour in 2012 and is now a combined open-pit/ underground operation. In 2018, produc- tion is expected to decrease to 115‑130 koz, mainly due to a decline in grade, and all-in sustaining costs are forecast to increase to US$1 200/oz-US$1 250/oz. Karma is a 4 Mt/a open-pit/heap leach operation which achieved first gold pro- duction in 2016. In 2017 a new front-end and ADR plant were commissioned. Agbaou is an open-pit mine which produced 177 koz in 2017. This was – as expected – less than the record 2016 per- formance of 196 koz, with the decrease being due to the mine starting to transi- tion to harder material. Commenting on the results, Sébastien de Montessus, Endeavour’s President and CEO, described 2017 as yet another strong year for the company. “We deliv- ered against all key performance metrics, achieving record production of 663 koz,

Reporting on the year and quarter (Q4) ended 31 December 2017, TSX-listed Endeavour Mining, which operates sev- eral gold mines in the West African region, reports that full-year group production in 2017 increased by 12 % over the prior year to a record 663 koz, attaining the top half of its 630-675 koz guidance. AISC decreased by US$17/oz to US$869/oz, ending well within the guidance range of US$850 to US$895/oz. The commissioning of the new Houndé mine lifted group production in Q4 by 38 % compared with Q3 2017 to 204 koz and decreased group AISC by 13 % to US$785/oz. Endeavour says that project develop- ment remained a key focus in 2017 with the successful completion of the Houndé construction in October and the Karma plant optimisation in November, as well as the start of the Ity CIL construction in September. Houndé, which will be a flagship mine for Endeavour, is located 250 km south- west of Ouagadougou in Burkina Faso. It is an open-pit operation served by a 3 Mt/a gravity/CIL plant. It was success- fully built ahead of schedule and below budget, with its first gold pour occurring

in October 2017 and commercial produc- tion announced on 1 November 2017. No LTIs occurred over the 7 million man hours worked during the construction period. It is expected to produce between 250 and 260 koz of gold in 2018 at an AISC of US$580 to US$630/oz. The US$412 million Ity CIL project will transform the existing Ity mine, a 950 kt/a heap leach operation, into a 4 Mt/a CIL operation with a solid production of 235 koz/a expected over the first five years of a 14-year life. The first gold pour is expected in mid-2019. Concrete works at the site are tracking well, with all eight ring beams and the SAG mill foundation pour complete and the ball mill foundation pour commencing. The Tailings Storage Facility (TSF) earthworks are progressing on schedule and are 15 % completed. The Kalana project in Mali – acquired from Avnel – will likely be Endeavour’s next ‘build’ after the Ity CIL project. A feasi- bility study on the project was completed by Avnel and is currently being optimised by Endeavour with the results expected by year-end. Once developed, Kalana will be a somewhat smaller mine than either Houndé or Ity CIL but nevertheless an

The mills at the new Houndé mine in Burkina Faso (photo: Endeavour Mining).

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MINING News

up 12 % over 2016, while continuing to successfully reduce our costs. Importantly, we were able to significantly increase our operating cash flow with the start-up of our flagship Houndé mine in the fourth quarter, which we commissioned ahead of schedule and under budget. We also continued to improve our portfolio qual- ity with the sale of our non-core Nzema mine and the purchase of the Kalana project. “2018 will be a year in which we con- tinue to build on our strengths and achievements, with the construction of our Ity CIL project progressing on track and on budget and an updated feasibility study planned for Kalana later this year. Our aggressive exploration efforts will also continue as we aim to develop more greenfield projects to secure our longer- term growth pipeline. This year our focus on operational excellence and active port- folio management will continue, with a strategic decision regarding our Tabakoto mine to be made later in the year. “Overall, I am very pleased with our

CIL ring beams at the Ity CIL project (photo: Endeavour Mining).

year as we continue our transformation towards achieving our 2019 objective of annual gold production of above 800 koz at below US$800/oz AISC.” 

strong performance and would like to thank our entire team for their dedication, focus and excellent delivery, as well as the Board for their support. 2018 will be a key

April 2018  MODERN MINING  9

MINING News

The Liqhobong diamond mine in the highlands of Lesotho (photo: Firestone Diamonds).

Liqhobong plant performs above expectation

the four sales held in the period for total proceeds of US$26,0 million, and included Liqhobong’s second plus US$1 million stone. The first two sales achieved an aver- age value of US$69 per carat due to the lower than expected occurrence of better quality diamonds recovered, and a gener- ally weaker market. In the second quarter an improvement in market conditions, when very com- petitive bidding was seen on the lower category run of mine diamonds and par- ticularly strong demand was experienced for the fancy yellow diamonds offered, resulted in a higher average diamond value achieved for the final two sales of US$80 per carat. This increased the aver- age value realised for the period to US$74 per carat. Cash operating costs of US$11,97 per tonne treated were lower than guidance of between US$12 and US$14 per tonne treated despite local currency strength, where the Lesotho Maloti appreciated 4 % against the dollar. The local currency strength resulted in higher than expected costs in US dollar terms; however, contin- ued careful cost management throughout the period resulted in cost savings which offset the higher costs resulting from the stronger local currency. 

Firestone Diamonds, the AIM-quoted dia- mond mining company, has announced its unaudited interim results for the six months ended 31 December 2017 (H1 2018). Commercial production commenced at Liqhobong from1 July 2017. Consequently, this is the first complete reporting period during which the plant operated at steady state. During the period, a total of 3,4 Mt was mined, comprising 1,9 Mt of ore and 1,5 Mt of waste. The mine treated 1,9 Mt, 61 % from the lower grade K2 material in the pit which included some dilution, 20 % from K5, 17 % from K4 and the remaining 2 % from historic low-grade stockpiles. The production plant operated above expectation, achieving an average throughput rate of 522 t/h compared to an expected 500 t/h. The engineering depart- ment achieved a plant utilisation rate of 83 %, ahead of the target of 81 %. During the period, 379 716 carats were recovered, 199 007 in Q1 and 180 709 in Q2. In the prior year, the grade increased steadily over the ramp-up period to the end of June 2017. During the half year to December 2017, the grade decreased as expected from 21,1 cpht in Q1 to 18,8 cpht in Q2 as a result of lower grade ore blocks that were scheduled to be mined for that

period. An increase in grade is expected in the second half of FY2018 as miningmoves to the higher-grade ore. Since commencement of the mining operations in late 2016, a combination of lower than expected average diamond values realised at sale and earlier waste stripping prompted a revision of the origi- nal 15-year mine plan. During the period, Firestone approved a revised mine plan based on a shorter nine-year mine life aimed at maximising cash flow in the near term whilst retaining optionality to revert to the original longer life of mine plan should the average dia- mond values increase or should there be an improvement in market conditions. The revised mine plan requires 76,0 million fewer waste tonnes to be mined which will reduce costs significantly. Firestone was successful in raising US$25,0 million in December 2017 which, together with proposed revised terms from ABSA Bank, provide it with sufficient resources to continue mining according to the revised mine plan. ABSA’s proposed revised terms have been agreed and are only subject to final documentation and signature, both of which are expected to be concluded in Q4 FY2018. A total of 352 272 carats was sold during

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MINING News

Drilling starts on Mali gold property

these targets to our approximately 34 % shareholder Hummingbird’s producing Yanfolila mine, in the event of a signifi- cant discovery there is potential for early cash-flow by utilising the Yanfolila treat- ment plant. I look forward to providing assay results fromTekeledougou as they become available as we look to unlock the potential of this exciting project. “In addition, we look forward to reporting on the remaining assay results relating to the recently completed drill programme at our flagship Sanankoro gold discovery, which has already yielded exceptional assays including 17 m at 5,43 g/t from 67 m downhole (including 8 m at 11,24 g/t). With active work programmes underway at both Tekeledougou and Sanankoro, we remain focused on our objective of delivering multiple high value gold exploration and development assets, laying the foundations for future poten- tial 1 million-ounce plus deposits.” 

AIM-listed gold exploration company Cora Gold has announced the start of a ‘maiden’ 2 000 m drill programme at its Tekeledougou project in southern Mali. The project is located within 8 km of Hummingbird Resources’ operational Yanfolila gold mine and approximately 60 km south of Cora’s Sanankoro gold discovery. Comments Dr Jonathan Forster, Chief Executive Officer of Cora Gold: “Tekeledougou is an exciting prospect with two separate structures exposed; one with over 600 m of strike of an intensely veined quartz shear structure and the other approximately 200 m of strike. Based on our findings so far, these structures may carry significant gold mineralisation. “The initial reconnaissance pro- gramme will seek to test and confirm the mineralisation of the structures and also to extend them along the strike where possible. Due to the close proximity of

A Cora team in the field in the Yanfolila gold belt (photo: Cora).

April 2018  MODERN MINING  11

MINING News

Wits and Sibanye-Stillwater launch DigiMine

we can continue to develop the specialised skills and knowledge as we move into the fourth industrial revolution.” Sibanye-Stillwater and Wits University are supporting students, strategic projects and growing the DigiMine programme, which leverages a growing range of on-site facilities with multi-disciplinary research that draws on expertise from other depart- ments atWits University, and frompartners locally and abroad. “This partnership between WMI and Sibanye-Stillwater paves the way to develop digital technologies that will reduce risk in the mining environment,” said WMI Director Professor Fred Cawood. “Safety and competitiveness are corner- stones of a sustainable mining sector, which can contribute to the National Development Plan by reducing poverty and inequality. Our interventions will explore any innovations that can apply real-time digital solutions for reduc- ing mining risk and increasing mining efficiency.” In a week-long programme to cel- ebrate the launch of the DigiMine, a two-day seminar showcased the work of some postgraduate research students and partner organisations, while keynotes on the digital mining theme were delivered by Sibanye-Stillwater and the National University of Sciences and Technology (NUST) in Pakistan. 

Pictured at the opening of DigiMine are (from left): Professor Fred Cawood, WMI Director; Professor Tawana Kupe, Wits Acting Vice-Chancellor and Principal; Neal Froneman, CEO of Sibanye-Stillwater; and Professor Ian Jandrell, Dean of the Faculty of Engineering and the Built Environment at Wits.

DigiMine establishes a unique programme that is instrumental for the application of digital technologies in support of safer and more efficient mining operations.” This sentiment was echoed by Professor Tawana Kupe, Wits Acting Vice-Chancellor and Principal: “The DigiMine speaks to the University’s strategy of integrating tech- nology, teaching, learning and research in academia. This partnership ensures that

In a technology-focused partnership that will help make mines safer and more pro- ductive, Sibanye-Stillwater and the Wits Mining Institute (WMI) at the University of the Witwatersrand have launched the Sibanye-Stillwater Digital Mining Laboratory (DigiMine). DigiMine is a simulatedmining environ- ment in the Chamber of Mines building on the West Campus of Wits University,

whose facilities now include a vertical shaft in a stairwell, a tun- nel and stope in the basement, and a range of communication and digital systems to enable research that will help to create the mine of the future. Sibanye-Stillwater recently extended its existing sponsor- ship by a further R15 million over three years, bringing its total sponsorship of the WMI to R27,5 million between 2015 and 2020. Sibanye-Stillwater’s CEO, Neal Froneman, highlighting the importance of the mining industry harnessing the fourth industrial revolution and fully benefitting from advances in digital technology through close ties with research institutions, remarked, “The launch of the

Wits students Nonhle Phiri (left) and Peter Kolapo in the DigiMine control room.

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MINING News

Graphite plant completes dry commissioning

ASX-listed Bass Metals has completed dry commissioning of the newly refurbished process plant at the Graphmada large flake graphite mine in eastern Madagascar. This critical milestone, it says, proves that the electricals and equipment in the plant, having now been fully tested, are ready for wet commissioning and subsequently the recommencement of production. Completion of Stage 1, post ramp up to 6 000 t/a run-rate, will provide positive cash flow from Graphmada and allow Bass to continue with its long-stated strategy of expanding production to 20 000 t/a (Stage 2) while aggressively drilling – in the back half of 2018 – the highly prospective Millie’s Reward lithium project. Completion of Stage 1 will also deliver to the company’s shareholders a 100 %-owned mine free of debt, with an offtake agreement in place, producing pre- mium large flake graphite concentrates at a time of rising prices. It will establish Bass as one of only two ASX-listed producers,

graphite products at Graphmada (Stage 3). The operating Graphmada mine was acquired by Bass in 2016 from StratMin Global Resources. 

and one of only four publicly listed graph- ite producers globally. Bass has also begun assessing the downstream development of expandable

Bass Metals has completed dry commissioning of the newly refurbished process plant at the Graphmada mine (photo: Bass Metals).

April 2018  MODERN MINING  13

MINING News

Updated study strengthens the case for Kalongwe

The estimated capex to bring Stage 1 into production is US$53,12 million with payback expected in 17 months. A Preliminary Economic Analysis of SX-EW processing has also been com- pleted which highlights further potential increases to the returns and mine life from higher copper-cobalt output and revenue. One option has been selected for fur- ther evaluation as a potential Stage 2 to the DMS construction, comprising a full SX-EW plant and cobalt circuit to process DMS-generated rejects and cobalt-only ore. This Stage 2 expansion option, which can be funded from cash-flows from the Stage 1 DMS, will be incorporated into the recently commenced front-end engineer- ing design (FEED) programme for Stage 1. Comments Nzuri Copper’s CEO and Executive Director, Mark Arnesen: “The Kalongwe copper-cobalt project con- tinues to go from strength to strength. The updated Stage 1 Feasibility Study has delivered an impressive pre-tax NPV of US$186 million, a 99 % IRR and an increased ore reserve which now underpins an eight-year mine life. This incorporates updated, though still conser- vative, cobalt pricing assumptions. It is also based on an enhanced point-of-delivery at Kolwezi based on advanced discussions with potential off-takers completed since the 2017 Feasibility Study. “In conjunction with these outstand- ing results, the recently completed Stage 2 Preliminary Economic Analysis has cap- tured the value potential of a larger SX-EW development. This has confirmed our view that there is huge upside in the project which can be unlocked through future staged expansions funded from Stage 1 cash-flows. The results provide a clear roadmap that will help guide the detailed front-end engineering and design of the project, which is about to commence. “Our immediate focus over the next few months is to advance appropriate funding solutions and, with the support of our cor- nerstone shareholders, deliver Stage 1 as quickly as we can while keeping in mind the best way of pursuing SX-EW process- ing. At the same time, we are continuing to pursue aggressive exploration aimed at growing our resource inventory and mine life at numerous exciting near-mine and regional targets.” 

The future open-pit area at Kalongwe (photo: Nzuri Copper).

based on the new mining legislation and regulations. Katoro expects to complete the assess- ment referred to above by the end of Q2/ early Q3 2018. The company has decided to suspend all ongoing feasibility work on the Imweru project until it has reached a final decision on the economic viability and fur- ther development of Imweru. The company says it has employed a sensible financial policy, ensuring that expenditure has remained low and that substantial savings over the original bud- get have been realised over the past 12 months. Accordingly, the company currently has a strong cash position of approximately £540 000 that enables it to continue with the execution of its strategy and work programmes.  The project scope and capital require- ments for Stage 1 remain unchanged and comprise an open-pit mine and an on-site 1 Mt/a Dense Media Separation (DMS) pro- cessing plant to produce two high-quality dry saleable concentrate products suitable as a feedstock for off-site SX-EWprocessing. Estimated annual concentrate produc- tion would be 117 kt of DMS product with an average grade of 15 % Cu and 1 % Co and 20,5 kt of spiral product averaging 5,2 % Cu and 0,9 % Co. This is equivalent to an annual average metal production of 18 657 tonnes of Cu and 1 370 tonnes of Co. cobalt compared with the maiden ore reserve published in October 2017.

ASX-listed Nzuri Copper has completed an updated Feasibility Study (FS) for the pro- posed Stage 1 development of its flagship 85 %-owned Kalongwe copper-cobalt proj- ect located in the Kolwezi region of the DRC. The updated Stage 1 FS was based on revised pricing (reflecting contin- ued increases in the cobalt price) and point-of-delivery (Kolwezi as opposed to Lubumbashi). It also includes an updated ore reserve estimate for Kalongwe of 7,99 Mt at 2,94 % Cu and 0,34 % Co for 234 868 tonnes of contained copper and 27 102 tonnes of contained cobalt. This represents an 11 % increase in contained copper and an 8 % increase in contained

Katoro Gold assesses viability of Imweru Katoro Gold, whose shares are quoted on London’s AIM, says it is currently assessing the economic feasibility of its Imweru gold project inTanzania, based on the preliminary pre-feasibility results and the new mining legislation and regulations in Tanzania.

An integral part of the company’s assess- ment will include consideration of a further exploration work programme to enhance and expand the current resource by explor- ing some of the previously identified exploration targets that form part of the Imweru/Lubando gold project. To date, only about 50 % of the Imweru and Lubando project areas has been explored. Katoro says it will also engage with the Tanzanian Ministry of Minerals to seek to agree the mining licence application for Imweru to ensure its economic feasibility

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MINING News

Mines, responsible for the Gaborone and Francistown offices; Dutch Botes, a mining engineer with over 30 years’ coal mining experience, who has been appointed as Technical Advisor; and Lynette Kruger, who has 18 years of coal marketing expe- Minergy strengthens its management team

Emerging Botswana-focused coal miner, Minergy, has strengthened its manage- ment team. The company expects to start mining coal from its Masama site – a 390 Mt opencast, low strip ratio mine in the Mmambula coalfield, 50 km north of Gaborone – in July 2018, with the first sale- able coal available in September 2018. Comments Andre Boje, Chief Executive Officer at Minergy: “The Masama coal proj- ect represents an exciting opportunity for the development of a small to medium scale coal mine in Botswana. During the start-up phase of production, we antici- pate producing 1,2 million tonnes of coal and will require approximately 300 employees directly and indirectly; as pro- duction ramps up, further employment opportunities will be created.” The new appointments are Gabotshwa­ rege Tshekiso, a mechanical engineer with more than three decades of experience in the mining industry, who previously worked as a Director in the Department of

rience across Southern Africa and joins as Marketing Manager. Following a listing on the Botswana Stock Exchange (BSE) in April 2017, Minergy now plans to list on the UK’s AIM in the latter part of this year. 

Wits Mining School jumps up world rankings The School of Mining Engineering at the University of theWitwatersrand has shot up the world league tables to take 15th place in the 2018 QS World University Rankings. Up from its position as number 22 in last year’s rankings, it is the only mining engi- neering school in Africa to feature in the top 50 ranking of mining engineering schools worldwide. This accolade also makes it the highest ranked school at Wits University. “It is extremely encouraging to earn this recognition, in light of our ongoing efforts to keep our school at the leading edge of

learning and research,” says Head of School Professor Cuthbert Musingwini. With about 800 undergraduate and post- graduate students – about 15 % of them from countries outside South Africa – the school is the largest mining engineering programme in the English-speaking world. The QS World University Rankings name the world’s top universities in 46 different subject areas and five composite faculty areas. It is the only international ranking recognised by the International Ranking Expert Group. 

April 2018  MODERN MINING  15

MINING News

Graphex makes “significant progress”

are experiencing critical issues with the availability of feedstock, says Graphex. This tightness of supply of coarse flake graphite to expandable graphite manu- facturers is highlighted by the fact that a significant portion of refractory brick man- ufacturers, who had traditionally used +80 to +100 mesh (150-300 microns) material, are now using -100 mesh (<150 microns) material because anything coarser than +100 mesh (150 microns) is being used for expandable graphite. “We are pleased with the progress of the Updated Feasibility Study and look forward to the proposed industrial trial, which will guide detailed design and allow for performance guarantees under an EPC contract,” comments Graphex’s MD, Phil Hoskins. “We remain confident that the Updated Feasibility Study will produce industry-leading results. “Entering into these Statements of Sales Intent is a significant and material step for- ward for Graphex. We now look forward to converting the SSIs into binding offtake agreements in the near future. These rela- tionships will ultimately see high-quality Chilalo graphite placed into the expand- able graphite market. “With the use of flame retardant building materials receiving significant policy and regulatory support from gov- ernments around the world, Chilalo is expected to form a baseload of supply of coarse flake graphite to the expandable graphite market. The flake graphite sup- ply issue in China, driven largely by the enforcement of environmental policy that has resulted in the closure of a large num- ber of mines, is a reality. We are confident that there is demand for Chilalo graph- ite that vastly exceeds the tonnages in these agreements.”  FGAC, PGeo, formerly the CEO, will assume the key role of Executive Vice-President, Exploration, focusing on the successful execution and continued development of the Tijirit gold project in Mauritania. Auclair will also lead the exploration team in the identification of prospective new gold proj- ects inWest Africa. He has an extensive and successful track record of gold discovery and project growth in Africa and has been responsible for the identification and/or development of a number of gold mines in Africa and internationally. 

Graphex Mining, listed on the ASX, has announced that it has made significant progress on the Updated Feasibility Study, EPC arrangements and offtake for the development of the Chilalo graphite proj- ect in south-east Tanzania. Recent meetings with the Suzhou Design and Research Institute for Non- Metallic Minerals have confirmed the flow sheet for the Chilalo processing plant. The meetings were attended by the Graphex MD and representatives of BatteryLimits. BatteryLimits has been re-engaged to update the existing feasibility study to incorporate technical work previously completed by both BatteryLimits and Suzhou. Graphex and Suzhou have agreed to an industrial trial that will involve pro- cessing a minimum of 5 tonnes of Chilalo

ore for detailed design and with a view to enabling the EPC contractor to provide performance guarantees for the targeted throughput and product specifications, including flake size, grade and recoveries. The industrial trial will produce at least 500 kg of product, which will be provided as sample material to all the major play- ers in the Chinese expandable graphite market. Graphex has also signed five Statements of Sales Intent (SSIs) for the supply of flake graphite to expandable graphite produc- ers and traders in China. The SSIs cover 80 000 tonnes per year of Chilalo graphite and the company anticipates that further SSIs will be signed in the future. Owing to a serious shortage of coarse flake graphite supply in China, exist- ing expandable graphite manufacturers

Drilling underway at the Chilalo graphite project (photo: Graphex).

New Chief Executive Officer for Algold Resources Algold Resources, listed on the TSX-V, has appointed Benoit La Salle as Chief Executive Officer. La Salle will continue to serve as Chairman of the Board of Algold, a position that he has occupied since early 2013.

gold producer in West Africa. La Salle has been, and remains, a key stakeholder, an investor, a chairman, a board member or an executive of many public and private sector companies, primarily in the mining, energy and clean tech sectors where he has been a strong proponent of transfor- mational change and shareholder value creation. Concurrent with the above organ- isational change, Francois Auclair, MSc,

La Salle, FCPA, FCA, has over 20 years of experience in the development and oper- ation of mining projects in West Africa. In 1995, he founded Canadian-based SEMAFO Inc, which grew from a junior explorer to a plus 250 000-ounce-per-year

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