Modern Mining August 2016

MINING News

Construction work on the main plant terrace at Liqhobong (photo: Firestone Diamonds).

Liqhobong diamond mine speeds towards completion

AIM-quoted Firestone Diamonds reports that construction of its Liqhobong mine in Lesotho was 85 % complete as at the end of June 2016, ahead of the revised target of 81 %, with the plant 18 % commissioned, also ahead of target. The project’s zero lost time injury record has been maintained, with approximately 2,6 million man hours now having been worked. Initial production is now expected in early Q4 2016. The revised capital budget of R2,1 billion remains within the original project budget of US$185,4 million. The remaining 15 % of the project relates to the continued completion of the final equipment installation together

cess to full nameplate capacity – 3,6 Mt/a or 500 t/h to recover up to 1 million carats per annum – will take at least six months. During commissioning, ore from mixed low grade stockpiles and diluted ore from the main pit will be processed through the plant. The variability of this ore will influ- ence the recovery of run of mine carats. Firestone expects to treat between 1,8 and 2,0 Mt of ore during the financial year ending June 2017. Within this period, it is estimated that between 380 000 and 450 000 carats will be produced at Liqhobong. Costs are projected to be in the region of US$12 to US$14 per tonne processed. Comments Stuart Brown, Firestone’s CEO: “I am pleased to report that construc- tion activities at the Liqhobong diamond mine have continued to progress well over the last quarter. As at the end of June, con- struction was ahead of schedule and initial production is now expected in early Q4 2016. The company remains fully financed throughout its ramp-up period and expects to host its first diamond sale in January 2017. “The excitement and momentum is building nicely and we are looking for- ward to the recovery of our first carats in Q4 2016.” 

with the installation of the electrical and control cabling. Liqhobong has fully harvested its water requirements for its first year of produc- tion, with in excess of 400 000 m 3 of water on site. Currently Firestone’s total workforce at Liqhobong stands at 779, which includes both employees and contractors. The oper- ational staffing of the mine is progressing well with all senior positions filled and the remaining required positions to be com- pleted prior to the start of production ramp-up. Once initial production has started, Firestone anticipates that the ramp up pro- Following the completion of the agree- ment, Acacia has full exposure to what it describes as “an exciting and highly pro- spective land package” in Kenya, including its most advanced project, the Liranda Corridor. Acacia reports that it continues to intersect high grade gold zones at the Bushiangala and Acacia prospects along the Liranda Corridor where drilling is indicating the potential for a new gold camp. 

Acacia accelerates buy-in to Kenyan project LSE-listed Acacia Mining – which oper- ates three gold mines in Tanzania – says it is continuing to enhance and expand its exploration portfolio through an agree- ment to accelerate the earn-in on the West Kenya Joint Venture licences in Kenya.

Acacia has agreed to increase its owner- ship from 51 % to 100 % in the two licences covering the majority of the West Kenya project area from a subsidiary of Lonmin plc for a consideration of US$5 million.

10  MODERN MINING  August 2016