Modern Mining December 2015

MINING News

Realising possibilities...

Galane Gold, which is listed on the TSX-V and owns the Mupane gold mine in Botswana, reports it has closed its previously announced acquisition of a majority of the issued and outstanding ordinary shares of Galaxy Gold Mining Limited, a gold mining company with operations in Mpumalanga Province in South Africa. “We are pleased to have completed the acquisition of Galaxy and added what we believe is a significant asset to our portfolio,” com- ments Galane’s CEO, Nick Brodie. “Our experienced management team looks forward to taking an under-performing asset and return- ing it to full and profitable production within the next 12 months. The team can draw from the experience gained in revitalising Mupane and an in-depth knowledge of mining and processing in the green- stone belt, including in Barberton itself. “From our due diligence we have confidence that the potential of the Galaxy asset will assist Galane in being able to operate in any realistic gold price environment. To support that confidence we are currently in the process of completing a National Instrument 43-101 technical report and commencing a pre-feasibility study to support the expansion of Galaxy’s operations up to 50 000 ounces per annum. “Galaxy has been operating with a working capital deficiency which has led to disputes with critical suppliers and contractors,” he continues. “As a result, Galaxy has also not met all of its statutory requirements. This has required an extended review of the business to satisfy ourselves that Galaxy can be resurrected to its historic pro- duction levels.” Galaxy’s mining assets are located on the Barberton Greenstone Belt (BGB), approximately 10 km to the west of the town of Barberton. They include several historical mining operations on the BGB as well as tailings storage facilities comprised of previously mined and processed material. Galaxy’s existing processing plant is in need of refurbishment and consists of crushing, milling, flotation, thicken- ing, Biox, CIL, elution and tailings disposal facilities designed to treat 16 000 tonnes of ore per month.  BlueRock signs on Diacar as a sub-contractor at Kareevlei AIM-listed BlueRock Diamonds has announced that it has concluded an agreement with Diacar Mining and Plant Hire to act as its sub- contractor. Under the terms of this agreement, Diacar has established a second processing plant at the Kareevlei site in the Northern Cape at its own cost in order to process kimberlite of over 70 mm in size (Oversize Material) – which BlueRock currently does not have the machinery to process – at a rate of over 40 tonnes an hour. The agreement is for a period of five years although it is review- able by BlueRock on an annual basis based on the performance of Diacar in the preceding 12 months. Under the terms of the agree- ment, Diacar is responsible for all costs other than the mining of the Oversize Material and diesel and is responsible for producing concen- trate to be sorted by BlueRock. BlueRock retains ownership of and is responsible for the marketing of all diamonds recovered from the concentrate. It is also entitled to 60 % of all revenues arising from the Diacar operations net of licence fee, taxes and selling costs.  Galane Gold acquires Galaxy

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December 2015  MODERN MINING  15

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2015/04/20 10:43