Modern Mining August 2019

August 2019 Vol 15 No 8 www.crown.co.za M ODERN MINING IN THIS ISSUE…

 Botswana gets a second coal mine  Resolute expands in West Africa  SepFluor brings Nokeng into production  Exxaro’s high-tech transformation  Automation well advanced at Syama

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CONTENTS

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ARTICLES COVER 16 Nimble ELB Engineering moves into new markets FLUORSPAR 20 Nokeng comes on stream URANIUM 24 DFS makes a “compelling” case for uranium project FEATURE: MINE AUTOMATION 28 Exxaro goes digital 34 Syama automation on track WATER 36 Reducing the footprint of industrial water users 39 Increased call from mines for SlurrySucker to desilt

REGULARS MINING NEWS 4 AMS selected as preferred open-pit contractor for Sanbrado 5 Lucapa’s Mothae mine running ahead of plan 5 Teranga announces Golden Hill drill programme 6 Masama coal mine approaches steady-state production 8 Resolute Mining signs deal to acquire Toro Gold 12 Shanta’s Ilunga mine achieves commercial production 13 Sinking of the new Central Shaft at Blanket completed 14 Improved performance by Yanfolila gold mine 15 Barrick committed to delivering Massawa project in Senegal PRODUCT NEWS 40 Sandvik equipment selected for Lubambe 40 State-of-the-art wet processing plant for Ardmore 41 Quick delivery of dewatering solution to Lesotho mine 42 Turbine drive train overhauled in just six weeks 42 Growing demand for versatile E-house solution 43 Spiral test rig solves separation challenges 44 HPE introduces new excavators from Hyundai 44 Fastest scanning slope monitoring radar launched 10 Voorspoed diamond mine keeps on giving 11 Liqhobong delivers a solid Q4 performance

ON THE COVER A current flagship project of ELB Engineering is the 25 MW Ngodwana Biomass Project, seen here, which is now well into construction. ELB Engineering is part of the JSE-listed ELB Group, which is this year celebrating its centenary. See page 16 for further details.

August 2019  MODERN MINING  1

COMMENT

Ivanhoe’s ‘big three’ make great progress

W hat would the mining industry in Southern Africa do without Ivanhoe Mines and its trio of ‘big ticket’ projects – Platreef, Kamoa- Kakula and Kipushi? After all, apart from these three developments, there are very few really big mining projects now underway in our region, with the exception of the Venetia Underground Project (VUP) in South Africa, a US$2 billion investment by De Beers, and the nearly US$400 million Zone 5 underground mine of Cupric Canyon in Botswana. The closest to home of the trio is, of course, the Platreef PGM project near Mokopane in Limpopo Province. According to Ivanhoe’s latest quarterly, this is shaping up well. Shaft 1, which is technically a vent shaft, has now reached a depth of over 900 m below surface and is due to reach its final depth of 982 m early next year while Shaft 2, the roughly 1 100 m-deep main shaft (which will be the largest in Africa in terms of hoisting capacity), has progressed to the point where the foundation for the 103-m tall concrete headgear has now been completed. The interesting news with respect to Platreef is that Ivanhoe is investigating whether it can cut capi- tal and accelerate first production by using Shaft 1 as the mine’s initial production shaft. Ivanhoe’s other projects are both in the southern DRC, with Kamoa-Kakula being in Lualaba Province and Kipushi in Katanga. Kamoa-Kakula is a greenfield development while Kipushi is very much a brown- field project designed to exploit the so-called ‘Big Zinc’ zone of the historic Kipushi mine. The progress being made at Kamoa-Kakula by Ivanhoe and its JV partner, Zijin Mining, is impres- sive, with development of the 6 Mt/a Kakula mine well advanced with the first underground access drives now very close to intersecting Kakula’s initial high-grade ore and earthworks for the processing plant underway. The mine is due to produce its first concentrate in the third quarter of 2021. The Kakula mine is just the start. Additional mines at Kansoko and Kakula West could see an eventual production rate of 18 Mt/a or more being achieved, with the peak annual copper production being more than 700 000 t/a – which would make the Kamoa-Kakula complex the world’s second larg- est copper mine after Escondida in Chile, which in

2018 produced a mammoth 1,2 Mt or so of copper, more than the entire copper production of the DRC (or Zambia, for that matter). The latest news from Kamoa-Kakula is that drilling in the Kamoa North Bonanza Zone has intersected the highest-grade intersection ever drilled at the project, with an estimated grade – derived, it must be said, from Niton (XRF) analysis of the core – of 18,0 % copper over 18,86 m at a 2 % cut-off. Assays are pending but Ivanhoe says there is a high correla- tion between Niton readings and laboratory assays based on more than 1 570 holes drilled to date at the project. Turning to Kipushi, this is in the DFS phase. According to the PFS completed in late 2017, the mine has the capacity to produce an average of 381 000 tonnes of zinc concentrate over an initial, 11-year mine life at a cash cost of approximately US$0,48 per pound of zinc – which would certainly make it one of the biggest zinc mines in the world. While the DFS proceeds, Ivanhoe continues to modernise the mine’s underground infrastructure in preparation for a resumption of operations. Ivanhoe’s ability to work simultaneously on these three big projects is quite remarkable as even the biggest names in world mining would be challenged by such an intense work programme. The company is to be commended for what is being achieved. Arthur Tassell

Additional mines at Kansoko and Kakula West could see an eventual production rate of 18 Mt/a or more being achieved, with the peak annual copper production being more than 700 000 t/a.

Testing the ventilation at the 750-m-level station of the Platreef’s Shaft 1 (photo: Ivanhoe).

Editor Arthur Tassell e-mail: mining@crown.co.za Advertising Manager Bennie Venter e-mail: benniev@crown.co.za Design & Layout Darryl James Circulation Brenda Grossmann

Publisher Karen Grant

Printed by: Shumani Mills Communications The views expressed in this publication are not necessarily those of the editor or the publisher.

Deputy Publisher Wilhelm du Plessis Published monthly by:

Average circulation April-June 2019 – 5382

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August 2019  MODERN MINING  3

MINING News

AMS selected as preferred open-pit contractor for Sanbrado

significant achievement and represents the excellent progress we are making in build- ing on the suite of quality projects on which AMS operates in the region.” AMS is one of the largest contract min- ing companies in Africa with established support networks in Africa, Australia and Europe. AMS, and its parent Ausdrill, have been working in Burkina Faso since 2011 and in the region for almost 30 years. West African announced the results of its updated Feasibility Study for the Sanbrado project in April this year. The study envisages an initial 10-year mine life, including 6,5 years of underground mining. The project will have average annual pro- duction over the first five years of mine life of 217 000 ounces of gold and a 14-month post-tax pay back on US$186 million pre- production capital costs. Project economics are robust, with an AISC of less than US$600/oz over the first five years and US$650 over the life of mine. Year 1 production is anticipated to be over 300 000 oz of gold from underground and open-pit ores, at an AISC of less than US$500/oz. West African is fully funded with construction underway and the first gold pour scheduled in mid-2020. Two key contracts for Sanbrado were awarded late last year, with Australia’s Lycopodium being appointed as EPCM contractor for the mineral processing facility and supporting infrastructure and Byrnecut Burkina Faso, part of the Australian-based Byrnecut group of companies, as the underground mining contractor. 

Decline advancement at the M1 South deposit at Sanbrado (photo: West African).

ating experience in Burkina Faso and 30 years’ experience in West Africa.” Ausdrill Group Managing Director Mark Norwell said: “A key focus for the new Ausdrill group has been to enhance our surface operations in Africa and target substantial growth opportunities across a range of commodities in select African countries. Being selected as preferred contractor at the Sanbrado gold project is a

ASX-listed West African Resources (West African) has appointed African Mining Services Ltd (AMS), a wholly owned sub- sidiary of ASX-listed Ausdrill, as preferred tenderer for the open-pit mining contract for the Sanbrado gold project in Burkina Faso. The contract value is US$170 million over five years. West African and Ausdrill are to enter into an option for a deferred payment arrangement for up to US$10 million at a commercial interest rate. Mobilisation activities are expected to commence in November 2019 ahead of open-pit mining commencement in January 2020. The scope of work includes site preparation, drill and blast, load and haul, and maintenance works. “The open-pit mining contract is the final major operational contract for our high-grade Sanbrado gold project, and the appointment of AMS as preferred tenderer follows the completion of a competitive ten- der and due diligence process examining safety, experience and operational capabili- ties,” commented West African’s Managing Director, Richard Hyde. “We are very pleased to appoint AMS as preferred tenderer for the open-pit mining contract as they have a strong track record in the region with over nine years of oper-

Construction underway on the Sanbrado plant (photo: West African).

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The Mothae diamond mine in the highlands of Lesotho. It began operations in January this year (photo: Lucapa).

Lucapa's Mothae mine running ahead of plan

ery of an “exceptional” 64-carat diamond from Mothae. Lucapa’s MD, Stephen Wetherall, described the Type IIa D-colour gem as the best individual gem recovered from Mothae to date. Apart from Mothae, Lucapa also oper- ates (and 40 % owns) the highly successful Lulo alluvial mine in Angola, which in the June quarter produced its thirteenth plus 100-carat diamond.  tions that most of the deposits comprising the resource estimation offer upside poten- tial. The drill and exploration programme announced today (25 July), which includes up to three drill rigs and approximately 27 000 m of drilling, is part of our plan to increase resources as we move the project through a preliminary economic assess- ment and into the feasibility stage of development.” The project currently includes numer- ous deposits and prospects within a 7,5-km radius. This configuration is conducive to a multi-pit operation feeding into a central- ised processing facility, similar to Teranga’s Sabodala and Wahgnion gold operations, in Senegal and Burkina Faso respectively. Earlier this year, after only 18 months of drilling, Teranga announced an initial mineral resource estimate for Golden Hill that included indicated mineral resources of 6,40 Mt averaging 2,02 g/t gold for 415 000 ounces, and inferred mineral resources of 11,95 Mt averaging 1,68 g/t gold for 644 000 ounces. 

ASX-listed Lucapa reports that diamond mining and processing operations contin- ued to perform ahead of plan at its Mothae kimberlite mine in Lesotho in the June quarter, its second quarter of operations, even though mining was restricted pre- dominantly to the lower-margin sections of the kimberlite pipe, including the northern and neck zones. Mothae produced 6 349 carats in the quarter for an H1-2019 total of 13 267 carats, 36 % ahead of the H1-2019 plan. This was due to the efficiency of the new 1,1 Mt/a plant and higher-than-planned recovered grades fromweathered material of 2,39 cpht for the quarter and 2,42 cpht for H1-2019. Large diamond recoveries during the reporting period included two +50 carat stones, including a 126-carat diamond, the largest gem-quality recovery from Mothae to date. Production from Mothae included rare Type IIa diamonds, as well as Type IIb diamonds. Cash operating costs for H1 2019 were US$12,56/tonne, 14 % better than plan. This, combined with the H1 sales and clos- ing inventories, delivered positive earnings before interest, tax, depreciation and amor- tisation of US$1,1 million for H1-2019. Mining is on track to transition to the higher-margin diamond zones in the south- ern pit following further good progress made during the quarter in raising the wall of the new main 500 000 m 3 water dam (Dam 4). The increased height of the dam wall has enabled the dewatering of the southern pit to commence, with this water

being pumped into Dam 4 for storage and later use in the processing plant. As a result, mining and processing of higher-margin kimberlite material from the southern pit will commence early in Q3-2019 and con- tinue throughout 2019. Since reporting its June quarterly results, Lucapa has announced the recov-

Teranga announces Golden Hill drill programme Teranga Gold Corporation, listed on the TSX, has announced an extensive drilling and exploration programme during the second half of 2019 at Golden Hill, an advanced- stage exploration project that has delivered multiple near-surface and high-grade gold discoveries over the last two years. Teranga owns 100 % of Golden Hill, which is located within the central part of the Houndé green- stone belt, a highly mineralised gold zone in south-west Burkina Faso, that is currently home to three operating gold mines.

Golden Hill’s budget for drilling and exploration in the second half of 2019 is estimated to be at least US$5 million and will be financed by the Golden Hill tranche of the Taurus debt facility. This US$25‑million tranche is intended to advance the project through the feasibility stage of development. Paul Chawrun, Teranga’s Chief Operating Officer, stated, “Our initial mineral resource estimate, announced in February 2019, provided a solid base from which to grow Golden Hill and reaffirmed our interpreta-

August 2019  MODERN MINING  5

MINING News

Masama coal mine approaches steady-state production

Minergy Limited, the coal mining and trading company which owns 100 % of the 390-Mt Masama coal project in the Mmamabula coalfield in Botswana, reports that the new mine will reach steady-state production in September this year. “We have come such a long way and are pleased with developments at the mine site,” commented Morné du Plessis, Minergy’s CEO. “We are extremely excited about the future of the project, our ability to supply coal into the region, the highly experienced team responsible for execut- ing the plan, as well as our capacity to contribute towards a viable coal sector in Botswana.” Minergy, which is listed on the Botswana Stock Exchange (BSE), previously reported in its interim results announcement on 29 March 2019 that mine infrastructure, includ- ing extensive civil work, power reticulation, water reticulation systems, access roads, weighbridge offices and workshops, had been completed. The mine boxcut was ahead of schedule.

In terms of the mining operation, in excess of 2,2 million m 3 of overburden material was moved by July 2019 by the opencast mining contractor, Jarcon Opencast Mining. “During early July 2019, the plant had successfully passed both electricity con- nectivity and leak tests and we are pleased to report that it is now fully operational, producing saleable coal,” said du Plessis. He added that additions to the plant were ongoing to improve efficiencies and pro- vide consistency in both product quality and sizing. “The Masama coal project has an excel- lent quality coal product within sustainable coal seams and, as such, has received sig- nificant interest from regional companies. Minergy has successfully moved product to South Africa and Namibia,” he said. The smaller Botswana market is also being tar- geted and Minergy believes it will be able to provide competitive pricing. As a norm, the customer will be respon- sible for logistics of the coal with Minergy

focusing on its core strength, which is the marketing of coal. “From our interactions with sub-contractors moving coal on behalf of our customers, they have experienced smooth border transitions. The logistics companies are highly efficient and ensure all paperwork is in place and their agents do pre-clearance at their offices at the bor- der posts,” stated du Plessis. The company is not currently focused on supplying coal to the power genera- tion market but points out that a business case is developing with the shortfall of coal experienced by the South African power utility, Eskom. “We have certain coal quali- ties that are perfect for power producers and this can easily be accessed and utilised in the future,” du Plessis explained. Minergy has extracted roughly 39 000 tons of coal to date. In excess of 340 000 tons are exposed in the pit, which only needs to be blasted and put through the plant. This equates to roughly three months of feedstock. According to the mine plans, from August this year it is envisaged that

The Masama processing plant (photo: Philip Mostert Photography).

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ceeded very safely and there have been no reportable incidents since mine devel- opment began in September 2018. Focus is placed on near-misses and safety protocols are enforced on site. Minergy directly and indirectly employs in excess of 250 people, 92 % of whom are local citizens. Approximately one-third are from the local Kweneng district. The village of Medie was due to get electricity in 2023/24. As part of Minergy’s corporate and social investment programme, it has paid for electricity con- nectivity to the village and will continue to provide support in critical areas such as the clinic, kgotla and the school. “We have a remarkable team in place who share core objectives. These include that Minergy must in the medium term ensure stable cash flows, productivity, quality and product. There is blue sky opportunity for Minergy to increase pro- duction and supply the export market, but the building of the Lephalale rail link and export price are two factors that are outside of our control. It’s prudent for us to focus on our strengths and ensure that customers are well serviced and receive quality coal,” said du Plessis.” Du Plessis said that he and the proj- ect team had “enormous gratitude” for the effort and vision shown by the retiring CEO of Minergy, Andre Boje. The listing of Minergy on the Alternative Investment Market (AIM) of the London Stock Exchange remains a goal and Boje will continue to be a part of the team tasked with ensuring the listing is successful. 

Minergy has extracted roughly 39 000 tons of coal to date (photo: Philip Mostert Photography). Minergy will be mining 110 000 tons run of mine (ROM) per month. The same quanti- ties will be put through the washing plant and this should result in saleable coal of between 70 000 to 80 000 tons, increas- ing to 100 000 tons per month next year. Minergy is currently exploring various options for offtake, ranging from longer- term agreements for the finer duff product to spot deals for the bigger fractions.

tenance of access and surrounding roads to the mine.” Despite extremely difficult access to funding, Minergy has successfully raised P90 million from the Botswana Development Corporation (BDC) as well as from the Minerals Development Corporation of Botswana (MDCB). The funding is suffi- cient to bring the mine into production. Initial funding includes bridging finance provided by both parties amounting to P70 million for a period of six months. This will be refinanced through long-term agreements with both parties. All the nec- essary regulatory approvals are in place and agreements have been signed with all paperwork completed. Thus far, project execution has pro-

Masama requires very little additional capex. “The big-ticket items have been spent,” said du Plessis. “These included ensuring the mine had power and water, and that the mine boxcut and the process- ing plant were established. For the next six months all that we foresee is spend on water, new road construction and the main-

August 2019  MODERN MINING  7

MINING News

Resolute Mining signs deal to acquire Toro Gold

Resolute Mining, listed on the ASX and LSE, has announced that it has signed a binding agreement with Toro Gold Limited which will see Resolute acquiring all Toro’s shares. The deal is valued at US$274 million and gives Resolute immediate control of Toro, effective from 2 August 2019. Toro’s flagship asset is the low-cost, high-margin Mako gold mine in Senegal, which entered production in January last year. In 2018, Mako produced 156 926 oz of gold at an All-In Sustaining Cost (AISC) of US$655/oz. The addition of Mako expands Resolute’s existing portfolio comprising the Syama gold mine in Mali, the Bibiani gold mine in Ghana and the Ravenswood gold mine in Australia. Mako will expand Resolute’s production base, strengthen operational cashflow, increase revenues to which shareholder dividends are linked, and provides a strong platform for further growth. Resolute has revised its FY19 (to 31 December 2019) production and cost guid- ance to 400 000 oz of gold at an AISC of US$960/oz which includes production from Mako from acquisition. “The Mako gold mine is a high-quality,

strongly cashflow generative producing asset which complements our existing portfolio of large-scale, long-life mines,” commented Resolute’s MD and CEO, John Welborn. “The Toro Gold team dis- covered the Mako orebody in 2010 and have successfully developed a high-value gold mine. We are delighted to combine our businesses. Senegal is an attractive investment jurisdiction for mining, and we look forward to working closely with the Government of Senegal, our 10 % partner at Mako, to maximise the value within Toro Gold’s portfolio. “Resolute has produced over eight mil- lion ounces of gold from nine mines over the last 30 years. The Mako gold mine will be our tenth operating mine and one which forms an important part of our next phase of growth. The acquisition also confirms our commitment to creating a leading African gold producer. Mako’s additional low-cost gold production provides a solid growth foundation that will enable us to deliver compelling value for our shareholders.” Toro Gold Chief Executive Officer and Founder, Martin Horgan, said he was pleased to be combining Toro Gold with

John Welborn, Resolute’s MD and CEO. Resolute. “Resolute’s acquisition of Toro Gold provides Toro Gold shareholders with the unique opportunity of realising immedi- ate value for their Toro Gold shareholding in the form of partial cash consideration while becoming part of a premier African gold producer as shareholders of Resolute. The contribution of our world-class Mako gold mine to Resolute’s high-quality portfo- lio of large-scale, long-life assets creates a compelling African gold investment propo- sition under the stewardship of an excellent and proven management team which will further maximise value for shareholders.”

The processing plant of the Mako gold mine.

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Mako is a conventional truck-and-shovel open-pit mining operation. It has consis- tently delivered recoveries of around 95 % with processing completed via a carbon-in- leach plant comprising a crushing circuit, an 8,5 MW SAG mill and a gold extraction circuit. Electricity is provided by a 14 MW diesel-fuelled IPP power station and water is extracted from the Gambia River. Current infrastructure (tailings impoundment, raw water dam and power station) has the capacity to meet increases in ore reserves and an expansion of the milling rate to 2,3 Mt/a without the need for additional capital expenditure. Mako hosts a mineral resource of 1,22 Moz (1,89 g/t Au) as at 30 October 2018, and an ore reserve of 928 koz (2,05 g/t Au) as at 31 December 2018. Toro’s exploration at Mako is focused on both identified targets within the mine permit and on the potential to delineate regional satellite deposits that are within trucking distance of the mill. The company’s exploration package covers over 2 800 km 2 of the highly prospective Birimian terranes of Senegal, Côte d’Ivoire and Guinea. 

Positive scoping study on Bepkong Underground ASX-listed Azumah Resources has advised that a scoping study to evaluate the tech- nical and commercial merits of mining deeper-level mineralisation at its Bepkong deposit (Bepkong Underground), has indi- cated that an underground mining operation could provide a material boost to the already financially robust open-pit based Wa gold project in Ghana.

repaid by open-pit mining operations prior to the commencement of underground mining. Comments Azumah’s Managing Director, Stephen Stone: “Fast on the back of the recently reported Bepkong ‘Underground’ mineral resource of 279 700 oz grad- ing 3,59 g/t Au, a scoping study has indicated that an underground mining operation could provide a material boost to the already financially robust Wa gold proj- ect with an estimated Production Target of approximately an additional 154 000 oz and pre-tax, post-royalty revenue of approxi- mately US$32 million. “This is a tremendous development for the current 1 Moz ore reserve, open-pit based project as the Bepkong underground mineralisation is a recent discovery and is not included in the project Feasibility Study, due for completion by year-end. “With the prevailing gold price well above the US$1 300 per oz used in determining ore reserves and revenues for the Feasibility Study and revenues for the Scoping Study, the business case for development just gets stronger.” 

The Bepkong deposit, which commences just below surface, is a key component of the Wa project for which a Feasibility Study – being managed by joint venture partner, Ibaera Capital, and based on a 1,03 Moz ore reserve – is nearing completion. At present, the Wa project is expected to have a pre-tax NPV 5% of US$177 million and an IRR of 35 % and is anticipated to pay back the US$117 million establishment capital in 1,6 years. This is based on open-pit optimisations and revenue estimates using a US$1 300 gold price. An underground operation at Bepkong, should it proceed, will only need to cover dedicated capital and associated operating costs with all establishment costs likely to be

August 2019  MODERN MINING  9

MINING News

Voorspoed diamond mine keeps on giving

the end of its life, we will continue to imple- ment our Social and Labour Plan as agreed with our local municipalities.” Ratang Maqheku Centre currently oper- ates from three rented backyard rooms in Tumahole, Parys. The Centre caters for 30 elderly people daily, and provides food, primary health care services, physical exer- cises, as well as access to the local library to improve their literacy and writing skills. The new 470 m 2 facility will comprise two bedrooms, sick bay, workshop area, rest area, consultation room, three offices, dining area, kitchen with a pantry and laun- dry room, two ablution facilities, as well as a reception and waiting area. Ratang Maqheku will also receive a brand new 22-seater vehicle from De Beers Group to transport the elderly to and from the Centre. Speaking at the sod-turning event of the construction of the new facility, the Executive Mayor of Ngwathe Local Municipality, Cllr Joey Mochela, said: “We are standing on a construction site of a dream that will soon become a lasting legacy for our community. This event is proof that working together in partnership with the private sector can produce remarkable outcomes. On behalf of our Municipality, I wish to extend my heartfelt gratitude that today we are able to celebrate the beginning of a project that is so close to our hearts.” De Beers Group has a long-standing relationship with the communities of Ngwathe, which started 10 years ago when Voorspoed began operating in the area. Through its Social and Labour Plan, Voorspoed has spent R31,6 million in sup- porting Social Economic Development projects in 2018.  The evaluation process included the construction of a pilot plant at the on-site laboratory at the mine. Concurrently, Wood was appointed to carry out a definitive fea- sibility study (DFS) on the pilot plant design process. Subsequently, a demonstration plant consisting of multi-stage commercial scale processing units was constructed. Independent process reviews were con- ducted after the DFS was completed, based on the comprehensive demonstration plant results. The DFS results exceeded Tharisa’s internal required hurdle rate for invest- ment in new projects. The final process and engineering designs were used to indepen- dently calculate the capital requirement of US$54,2 million for the construction of a 500 t/h plant. 

Pictured at the sod-turning ceremony are (left to right) Pastor Anthony Molalugi; DMR Regional Manager Kalipa Kewuti; Social Development representative Ndumi Mayekiso; Executive Mayor of Ngwathe Municipality, Cllr Joey Mochela; and Voorspoed Mine General Manager Malcom Hendrickse.

the aim of leaving a positive, and lasting, legacy for mining communities to enjoy sustainable livelihoods beyond the life of its operations. Malcom Hendrickse, Voorspoed Mine General Manager, said: “Our Building Forever approach unites and compels us to create a better future for our people, and we have continued to select partners and projects that will help maximise our positive impact as an organisation. We are proud of the positive impact that the new old age home will have for elderly citizens for gen- erations to come. “While Voorspoed mine stopped mining operations in December 2018, as it reached “With the appointment of Wood as our EPCM partner and the project initiation in August 2019, Tharisa looks forward to delivering first chrome production from the Vulcan plant within our anticipated timeline of 15 months.” Tharisa’s R&D team has developed the Vulcan process to extract the fine chrome from current in line tailings from the com- bined feed of the Genesis and Voyager plants at its Tharisa mine at Marikana. The primary aim of the Vulcan plant is to increase chrome recovery from the current 65 % to 82 % at the Tharisa mine, capable of adding an additional 400 kt/a (ca 28 % of current production) of chrome concentrate output.

De Beers Group’s Voorspoed Mine has partnered with Ngwathe Local Municipality to create a better future for the elderly by committing to build a new old age facility for Ratang Maqheku Centre for the Aged in Parys, Free State Province. The project forms part of Voorspoed Mine’s Social and Labour Plan, specifically its Community Development Programme, which aims to uplift communities of the Free State Province and develop working partnerships to enhance and influence eco- nomic and social factors. Through its Building Forever strategy, De Beers Group is helping communities to access opportunities and thrive with

Tharisa approves construction of Vulcan plant Tharisa has approved construction of its Vulcan plant to further improve chrome recov- eries and deliver its Vision 2020 strategy. Commenting on the project, Tharisa's CEO, Phoevos Pouroulis, said: “The commercialisa- tion of the Vulcan process will unlock value and is a major step in achieving our Vision 2020 target. We have developed a propri- etary process using existing technologies to improve the chrome recoveries with the process having been rigorously tested and proven through pilot plant test work and the operation of a production scale demonstration plant. Profitability will increase withmining and processing unit costs being charged against the increased production volumes.

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Liqhobong delivers a solid Q4 performance

it was 9 % below the expected reserve grade which seems at this stage to result from treating harder, more competent ore in the southern part of the pit. Work is on- going to improve post-blast fragmentation as well as further optimisation of the tertiary crushing section to improve liberation and throughput. During the quarter, 82 stones of plus 10,8 carats were recovered (Q3: 64 stones). However, the overall average value of the +10,8 carat stones recovered during Q4 was lower than Q3 due to fewer better quality stones. Post the end of the quarter, a 54-carat intense fancy yellow, sawable diamond was recovered. Giving guidance for FY-2020, Firestone says it continues to mine broadly accord- ing to the most recent mine plan which was announced in December 2017. During FY-2020, the company once again plans to treat between 3,6 and 3,8 Mt of ore and to recover between 820 000 and 870 000 carats. Liqhobong is 75 %-owned by Firestone with the Government of Lesotho having a 25 % interest. 

Firestone Diamonds, the AIM-listed company that operates the Liqhobong dia- mond mine in Lesotho, recovered 208 572 carats of diamonds in the June quarter this year (Q4-2019), 34 % higher than the figure for Q3, at a grade of 23 cpht, compared to 18 cpht in Q3. Ore tonnes treated totalled 904 902, well up on the 862 838 tonnes processed in Q3. The operating cost for the quarter was US$12,57 per tonne treated (compared to US$11,55/tonne treated in Q3). A total of 177 521 carats was sold in Q4, lower than the Q3 figure of 211 368 carats due to timing of sales, realising revenue of US$12,7 million (Q3: US$16,8 million) at an average value of US$71 per carat (Q3: US$80 per carat). Firestone reports that it achieved its market guidance for the financial year to the end of June 2019 (FY-2019). Diamond recoveries totalled 829 458 carats (FY 2018: 835 832 carats), within guid- ance of between 820 000 and 870 000 carats. The operating cost for the full year

was US$11/49/tonne treated (FY 2018: US$11,62/tonne treated), significantly lower than guidance of between US$15,00 and US$16,00 per tonne treated. “The fourth quarter performance was solid from an operational perspective, help- ing us achieve our guidance range for all items for FY-2019. From a market and pric- ing perspective, it was a tough financial year, particularly for the smaller, lower value goods, and these conditions are expected to persist for the rest of 2019 and possibly improving during 2020 when global rough supply is expected to reduce,” comments Paul Bosma, Firestone’s CEO. “As reported previously, the company has actively engaged with its debthold- ers to ensure it can sustain operations through the current downturn and to be well positioned to benefit when the global supply-demand dynamics improve.” Mining during Q4-2019 progressed to the higher grade southern part of the pit. Although the recovered grade was higher than the previous quarter, Firestone says

August 2019  MODERN MINING  11

MINING News

Shanta’s Ilunga mine achieves commercial production

version of the inferred ounces into the mine plan and extending the mine life at Ilunga is expected to take place in H1-2020. “Bringing these high-grade ounces on line within budget and on time is yet another example of our model at work, namely: add- ing low cost ounces to resources at our well-established operations, thereby increas- ing the mine life and the free cash flow generation potential at NLGM,” comments Eric Zurrin, Chief Executive of Shanta Gold. “Now that we have reached commercial production, we hope to delineate further mineable ounces by upgrading our inferred resources via cost-efficient underground drilling.” Shanta Gold currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licences covering approximately 1 500 km 2 in the country. The flagship New Luika Gold Mine entered production in 2012 and pro- duced 81 872 ounces in 2018. In the quarter ended 30 June 2019 (Q2-2019), New Luika’s gold production was 19 856 oz. Overall, a total of 155 779 tonnes of ore grading 4,53 g/t was mined in Q2 compared with 136 616 tonnes of ore grading 5,72 g/t in Q1. Some 177 647 tonnes of ore was milled during the period (Q1: 172 644 tonnes), a new all-time daily throughput record for the quarter. There were no Lost Time Injuries (LTIs) during the quarter and Shanta has now reached 2,9 million man-hours without experiencing an LTI.  “We are pleased that the upgrade of the crushing circuit has been completed,” commented Mike Houston, Bluerock’s Executive Chairman. “We have taken the opportunity to make a number of improve- ments to the processing plant during the crusher shut-down period and are confi- dent that these improvements will have the desired effect in achieving our targeted level of production in the second half of the year. Our volume guidance for the year remains at 280 000 tonnes to 335 000 tonnes and, as previously announced, we will refine our guidance following the end of Q3 after the reconfigured plant has been operational for two months.” 

Portal to the Ilunga underground mine (photo: Shanta).

Shanta Gold, whose shares are quoted on London’s AIM, reports that the Ilunga underground mine at its New Luika Gold Mine (NLGM) in south-western Tanzania has achieved commercial production on sched- ule and on budget. The primary ventilation fan and under- ground infrastructure are installed and operational. The first ore stope is now in production at a depth of 98 m below the portal and 130 m below surface. Commercial production comes following gross pre-production capital investment of only US$7,9 million (US$5,0 million GRES appointed for Manono DFS ASX-listed AVZ Minerals has appointed GR Engineering Services Limited (GRES) as the Definitive Feasibility Study (DFS) Engineer for the Manono lithium and tin project in the DRC. The project is located 500 km due north of Lubumbashi. GRES is a Perth-based engineering group with significant experience in study man- agement and the engineering design and construction of resource projects in Western Australia and globally, both as an EPCM and EPC contractor. Members of the GRES team nominated for this engagement have appropri- ate experience in Africa including in the DRC, where GRES recently provided operational support and optimisation studies at the Kipoi copper project. 

after netting off pre-production revenue) and less than 12 months after the under- ground portal blast at Ilunga was carried out in August 2018. Ilunga is now the third source of high-grade underground feed from NLGM alongside the Bauhinia Creek and Luika mines. Ilunga underground has a probable ore reserve of 660 500 tonnes at 5,56 g/t for 118 000 oz contained as well as inferred resources of 636 647 tonnes at 3,57 g/t for 73 067 oz. Underground drilling targeting the con-

Larger cone crusher installed at Kareevlei BlueRock Diamonds, the AIM-listed dia- mond mining company which owns and operates the Kareevlei diamond mine in the Kimberley region of South Africa, reports that the upgrade to the crushing circuit, including the installation of a larger cone crusher (‘New Crusher’), is now complete. In addition to the installation of the New Crusher, the crushing circuit has been upgraded and reconfigured in order to handle the expected increase in material flows and is now set up to be able to oper- ate the New Crusher alongside the existing cone crusher. The existing cone crusher will continue to run as volume through the New Crusher increases in order to maintain production and build stockpiles of crushed ore in line with the operating plan.

12  MODERN MINING  August 2019

Sinking of the new Central Shaft at Blanket completed

would like to recognise the outstand- ing contribution of Caledonia’s technical staff, led by Dana Roets, Caledonia’s Chief Operating Officer, who have worked hard over the last five years to ensure that we have reached this point.”

Blanket, which was acquired by Caledonia in 2006 from Kinross, is one of Zimbabwe’s oldest gold mines, having started production in the early 1900s. To date, in excess of 1 million ounces of gold have been produced from the property. 

Caledonia Mining Corporation recently announced that the shaft sinking at the new Central Shaft at Blanket mine near Gwanda in Zimbabwe has been completed. The Central Shaft project – which has been undertaken in-house – has been in prog- ress since early 2015 and the company has spent approximately US$44 million sinking the new shaft from surface to a depth of over 1 200 m. The project now moves to the equip- ping phase prior to commissioning which is expected during the third quarter in 2020. Production from Blanket mine is then expected to progressively increase to the target of 80 000 ounces of gold per year from 2022 onwards. Caledonia expects the increased pro- duction, combined with economies of scale and lower future capital investment, will result in significant increases in Caledonia’s profit and distributable cash. “Completion of the shaft sinking is an important milestone in Caledonia’s invest- ment plan,” commented Steve Curtis, Caledonia’s Chief Executive Officer. “I

Headgear of the new Central Shaft at Blanket (photo: Caledonia Mining).

MINING News

Improved performance by Yanfolila gold mine

The objective of the ongoing shallow percussion drilling exercise is to test a number of geophysical and geochemical anomalies associated with the Karibib Fault Zone in the Twin Hills area. A recently initi- ated and ongoing diamond drill programme is designed to test the Twin Hills Central bedrock anomaly and to provide further structural and lithological data down to a depth of 200 m. “The latest bedrock results confirm signif- icant gold mineralisation at Twin Hills West, in addition to the previously discovered Twin Hills Central and Twin Hills East min- eralisation,” commented Dave Underwood, Osino’s VP Exploration. “We are encour- aged and excited by the growing scale and increasing geological confidence in the Twin Hills gold project. The current diamond drill programme will give us a much better geo- logical and structural understanding of the central part of the system by delivering high quality, orientated core down to 200 m.”  Hummingbird had previously planned to announce more detailed LoM guidance and updated reserves at this point; however, due to a number of factors including the increased potential of underground mining, an improved understanding of high-grade structures within the company’s deposits and the higher gold price environment, it is conducting further studies to evaluate these opportunities. Hummingbird’s safety record continued to improve with the company having passed 500 000 LTI-free hours in the quarter.  processed have both increased resulting in almost 200 000 tonnes of ore on the ROM at the current time. “In the last few weeks, post quarter end, we have seen the second ball mill being commissioned. The mill is currently ramping up and has already experienced periods operating at design throughput. This will materially increase our ability to process more ore against the original design parameters as we move down the pits into predominantly fresh and harder material. This project marks another devel- opment that Hummingbird has achieved ahead of time and under budget.” Hummingbird expects to produce in the region of 130 000 oz in 2020. The company believes this will form a long-term average production level based on the impact of the second ball mill. This is a significant increase from the 107 000 oz average pro- duction estimated in the 2016 DFS.

New zone of mineralisation at Twin Hills West target Osino Resources Corp, listed on the TSX-V, has confirmed a new zone of bedrock gold mineralisation over a strike length of 1 km at the Twin Hills West target at its Twin Hills gold project in Namibia. The Yanfolila gold mine in Mali of AIM- listed Hummingbird Resources produced 27 466 oz of gold in the quarter ended 30 June 2019 (Q2‑2019), a 15 % increase on the previous quarter (Q1‑2019), at an AISC of US$998/oz, which was a 23 % decrease on Q1-2019. The average grade was 2,86 g/t compared to 2,4 g/t in Q1-2019. Dan Betts, CEO of Hummingbird, com- mented: “The company is pleased to report a steadily improving operational A recent view of the Yanfolila plant with mill installation in progress (photo: Hummingbird).

performance in Q2. The issues previously communicated which adversely affected production in Q1 have largely been addressed and this has translated into an improved production profile; April saw 7 582 oz produced with May and June returning to circa 10 000 oz/month mark. Additionally, this has also resulted in all other operational KPIs improving during the quarter. Costs have been reducing, grade increasing, and volumes mined and

Twin Hills West targets during April/May 2019, with assay results recently received. The Twin Hills West calcrete anomaly was defined by calcrete sampling and ground magnetic anomalies. The anomalous calcrete gold anomaly was recently followed up with a shallow per- cussion drill programme which confirmed a coincident bedrock gold anomaly of 1 km in strike length, with values up to 2,68 g/t Au and open to the south and west. The percussion holes were drilled verti- cally through the calcrete cover to sample the top of the bedrock beneath. The aver- age depth of the calcrete layer in this area is 20 m. The current bedrock sampling pro- gramme follows the success of the first round of shallow percussion drilling at Twin Hills Central, where a bedrock anomaly with values up to 2,3 g/t was discovered.

The Twin Hills project has grown from an initial small soil anomaly to a total of 11 km in strike length, most of which is covered by calcrete. The project now comprises a number of surface gold anomalies which lie along the regional-scale Karibib Fault. The first anomalies were discovered by Osino in 2017. The project has now been divided into three sectors, namely Twin Hills East, Central and West. Osino has secured a total length of 70 km of the Karibib Fault Zone under exclusive exploration licence and is system- atically exploring along the entire trend. Approximately 4 660 m of shallow per- cussion drilling was completed over the

14  MODERN MINING  August 2019

Barrick committed to delivering Massawa project in Senegal Barrick Gold Corporation’s President and Chief Executive Mark Bristow recently met with Senegalese President Macky Sall to discuss how best to bring the Massawa gold project to account in partnership with the country’s government. Massawa and its associated orebody, Sofia, were discovered by Randgold Resources, since merged with Barrick, which invested US$96,2 million in a feasibility study. Subsequent to the original feasibility model, an update of reserve pricing to US$1 200/oz resulted in a total probable mineral reserve of 20,9 Mt at 3,94 g/t for 2,6 Moz as at December 31, 2018 (100 % basis), with lower strip ratios and higher proportions of low cost ore fed to the plant, relative to the US$1 000/oz mineral reserve. The feasibility study also defined additional upside within Massawa’s US$1 500/oz mineral resource base including an indicated mineral resource of 23 Mt at 4,00 g/t for 3,0 Moz and an inferred mineral resource of 6,3 Mt at 3,0 g/t for 0,6 Moz, as at December 31, 2018 (100 % basis). Ongoing exploration in 2019 has identified additional opportunities to further add to the project inventory. The project’s environmental impact study has been approved and a mining permit application and plan have been submitted to the government. Bristow says it is clear that Massawa offers enormous potential value to Barrick’s shareholders, future investors and its Senegalese stake- holders. It also represents an opportunity to further develop Senegal’s fledgling gold mining industry. “Barrick is committed to delivering Massawa for the benefit of all stakeholders. We are now addressing how best to realise the full value of this asset in cooperation with the government,” he said. Barrick, through Randgold, has invested US$141 million in explo- ration in Senegal since 2002. In addition to Massawa, Barrick has a large exploration programme adjacent to Senegal’s border with Mali and close to its Loulo-Gounkoto complex as part of its Bambadji joint venture. The Massawa project lies within the Kanoumba permit in eastern Senegal. It is located about 700 km south-east of the capital city of Dakar and approximately 90 km due west of Barrick’s Loulo operation in Mali. 

Inspecting core at Massawa (photo: Barrick).

August 2019  MODERN MINING  15

COVER STORY

NIMBLE ELB ENGINEERING moves into new markets

M eijers makes the point that one of the distinguishing features of ELB Engineering, which traces its origins back to the establishment of Edward L Bateman in 1919, is an ability to re-model itself in response to changing market conditions. As he says, “You don’t stay in busi- ness for 100 years by being traditional and inflexible. We accept that markets change and we’ve always been willing to adapt to ensure that we not only survive but also prosper whatever the business conditions.” ELB Engineering is probably best known for executing large capital projects in the mining and power sectors with one of its most recent achieve- ments being the delivery of the processing plant and infrastructure required With the mining industry, one of its biggest markets, currently becalmed, ELB Engineering Services (ELB Engineering), part of the JSE-listed ELB Group, has launched a range of initiatives to ensure the company’s continuing growth. Modern Mining’s Arthur Tassell recently sat down with Chief Executive Dr Stephen Meijers and his colleague, Johan van den Heever, to learn more about the company’s strategy and, in particular, its ‘incubation’ of a range of new businesses which are taking its service offering into new areas.

ELB Engineering’s Chief Executive Dr Stephen Meijers (left) and colleague Johan van den Heever.

16  MODERN MINING  August 2019