Modern Mining December 2017

MINING News

Balama produces its first flake graphite

commercial production, the Fekola mill treated 324 525 tonnes of ore (as against 225 804 tonnes budgeted) at an average grade of 3,40 g/t (2,33 g/t budgeted) with a gold recovery of 95,4 % (90,0 % bud- geted), producing a total of 33 946 ounces of gold in the month (surpassing budget of 15 100 ounces). Gold production at Fekola in November 2017 was approximately 40 000 ounces from 426 836 tonnes of ore (budgeted 316 000 tonnes) at an average grade of 3,05 g/t (2,33 g/t budgeted) with gold recoveries of 95,5 % (budget 91 %). The higher-than-budgeted grade is a result of the early start to mining in April 2017, allowing the site to stockpile ore and blend mill feed for optimal production. Based on the life of mine (LoM) plan, in 2018 – the first full year of Fekola pro- duction – the company is projecting production of approximately 400 000 to 410 000 ounces of gold from Fekola with low projected cash operating costs and an AISC of approximatelyUS$354 per ounce and US$609 per ounce, respectively. For its first three years of operation, Fekola is projected to produce approxi- mately 400 000 ounces of gold annually at cash operating costs of US$357 per ounce and an AISC of US$604 per ounce. B2Gold also reports that positive drill results from its US$15,4 million 2017 exploration programme in the Fekola area indicate that the main Fekola deposit, with additional drilling, could extend sig- nificantly to the north. In addition, drilling below the extensive saprolite resource at the Anaconda, Adder and Mamba zones has discovered three, well mineralised bedrock (sulphide) zones, indicating the potential for large, Fekola-style miner- alised zones. Drilling is ongoing to further test the Fekola North Extension zone, infill the Fekola resource and further test the new bedrock mineralisation beneath the Anaconda, Adder and Mamba saprolite resource. The company is planning addi- tional, aggressive exploration drilling programmes on these targets in 2018. The Fekola project is situated in south- western Mali, on the border between Mali and Senegal, about 210 km south of Kayes and 480 km (by road) from Bamako, Mali’s capital. The project entered B2Gold’s port- folio in 2014 as a result of its acquisition of Papillon Resources. 

View of the Balama processing plant looking west (photo: Syrah).

ASX-listed Syrah Resources has announced the first production of bagged saleable flake graphite from the Balama project in Mozambique. Shaun Verner, Syrah’s Managing Direc­ tor and Chief Executive Officer, said, “This is a significant achievement for Syrah, our subsidiary Twigg, and our host com- munities in Mozambique as the company moves into operations. The development of Balama has been achieved through an extremely dedicated construction, com- missioning and operations team, with great support from the local communi- ties, investors, suppliers, government and other stakeholders. We look forward to reli- ably and consistently supplying the global graphite market and our planned Battery Anode Material operation with the highest quality natural graphite.” He added, “Following the intermedi- ate concentrate produced in late October, Syrah has now successfully commissioned the final stages of the flake circuit includ- ing polishing, filtration, drying, screening and bagging. Flake graphite produced is within our expected grade range, in excess of 95 % fixed carbon. Remaining commissioning activities will focus on the fines circuit and further optimisation works. We expect our first shipment of flake product fromNacala Port in the com- ing weeks. First cash receipts are expected in early 2018 with production of 160 000 to 180 000 tonnes in 2018, following cus- tomer qualification processes.” According to Syrah, all major proj- ect construction works at Balama are essentially complete with remaining con- struction activities limited to electrical

and instrumentation works, completion of construction punch list items and veri- fication checklists for the fines circuit. Demobilisation of construction teams is well underway. Balama is a simple, low strip ratio, open-pit operation. Processing utilises conventional processes including crush- ing, grinding, flotation, filtration, drying, screening and bagging. The processing rate is 2 Mt/a with the nameplate capacity being 380 000 tonnes of graphite concen- trate per annum.  Production restarts at Oena Tango Mining, listed on the TSX-V, has announced the recommencement of pro- duction at its Oena diamond mine located in the Northern Cape. Bluedust 7 Proprietary has mobilised and commissioned mining and processing equipment, including a Bourevestnik X-ray sorter (BVX), to Oena. The ‘Contract Mining and Diamond Recovery Agreement’ with Bluedust, with regard to processing run of mine (ROM) gravel, has been amended to include con- sideration for diamonds recovered from the processing of pan tailings and bantam material (Tailings) left on site from previous mining operations. Bluedust, at its own cost and expense, provides and maintains all the plant and equipment as required and the diamonds recovered will be sold at a designated tender facility in South Africa, of which 40 % of the gross income, less commis- sion recovered from Tailings, will be paid to Tango’s subsidiary for the duration of the 60-month contract. 

December 2017  MODERN MINING  5