Modern Mining December 2018

December 2018 Vol 14 No 12 www.crown.co.za M ODERN MINING IN THIS ISSUE…

 Zimbabwe lithium project launched  Syama to install solar power plant  Bisie construction nears completion

MODERN M I N I N G

CONTENTS

DECEMBER 2018

ARTICLES

COVER 16 Orica rolls out its latest digital technology in Africa LITHIUM 20 Prospect breaks ground at Arcadia GOLD 24 Syama to get pace-setting 40 MW hybrid power plant TIN 27 Bisie tin project heads into the home straight FEATURE: BULK MATERIALS HANDLING 30 ACH emerging as a new name in materials handling 34 TAKRAF Africa ends 2018 on a high note REGULARS MINING NEWS 4 Advanced milling control system installed at Asanko 5 Maiden resource declared for Kari Pump discovery 6 Milestone achieved on bauxite project 6 Positive PEA completed by Desert Lion Energy 7 Cat® autonomous mining truck fleet hauls one billion tonnes 9 Sabodala shines for Teranga Gold 9 Orion announces VMS discovery near Prieska 10 DRA designs“one of a kind”Community Centre 11 Azumah starts on A$4 million drill programme 11 NewWits professor an expert in rock mechanics 12 Komatsu unveils its new industrial campus 13 Ausenco appointed for FEED work for Achmmach 14 Newmont declares commercial production at Subika 14 Joint Venture to develop Sechaba coal project 15 Sanbrado underground contract awarded to Byrnecut PRODUCT NEWS 38 Concrete for mining applications from CHRYSO

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

Darryl James Circulation Brenda Grossmann Publisher Karen Grant

14

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

20

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

24

Cover ASX-listed Orica, the biggest global supplier of commercial explosives, is introducing its next generation BlastIQ™ digital blast optimisation platform to the African market. See page 16 for further details.

27

38 HiLight provides optimal lighting on site 39 Switch to NSK bearings delivers savings 40 New underground loader from Caterpillar 40 Efficient three-shaft screen saves money 41 Shell unveils latest bulk grease delivery trucks 42 Electric telescopic handler is first of its kind 43 Collision avoidance system from Becker 44 Steady demand for fibreglass grating 44 XRT sorter commissioned at Venetia

Average circulation (July–September 2018) 5072

30

December 2018  MODERN MINING  1

COMMENT

Impressive Gamsberg on show

Y ou have to hand it to Vedanta Zinc International (VZI). The com- pany, part of the Vedanta Group, is working wonders down at Aggeneys in the Northern Cape. Not only does it have plans to put renewed life into the Black Mountain underground zinc mine but it has also brought on stream the Gamsberg zinc project, after it languished for years on the ‘back burner’ when it was owned by previous operators. I was fortunate in early December to finally see the project for myself, travelling down to the site for a media visit, which included a tour of the huge mining operation on top of Gamsberg mountain and of the high-tech processing plant which has been built on the plain below. On hand to brief the journalists during the tour were senior executives of VZI, including its dynamic CEO, Deshnee Naidoo (who now also heads all Vedanta’s base metals operations in Africa), and its VP: Projects, Satish Kumar. Built at a cost of US$400 million, Gamsberg is now starting its ramp-up to full production, which should be achieved within the next six to nine months. The projected steady-state output is 250 000 tonnes per annum of zinc in concen- trate (derived from around 4,0 Mt/a ROM). The project is impressive, with the process- ing facility being a real revelation, occupying – as it does – a remarkably small footprint and being equipped with a control room that provides a panoramic view of the plant’s ‘hard- ware’. It ranks as a world first inasmuch as it is the first zinc concentrator globally to use the cutting-edge Staged Flotation Reactor (SFR)

2015. In reality, most of the development has been compressed into a much shorter time- frame, with the bulk of the work having been completed in 2017 and the first half of 2018. Many South African companies have contrib- uted to the success of the project, the prime ones being ELB Engineering Services, the EPC contractor, and Aveng Moolmans, responsible for the mining operation. The completion of Gamsberg, of course, means that there is one less on-going project to sustain the many companies in South Africa’s mining industry who derive a major part of their income from developing and equipping new mines. The good news is that Vedanta has big plans for the Aggeneys area. It has already completed a feasibility study on Phase II of Gamsberg – essentially a doubling up which would see a second 4 Mt/a concentrator being added – and is also looking at the viability of ultimately building a smelter/refinery to pro- cess Gamsberg concentrate. These projects would involve considerable capex, with the price tag for Gamsberg Phase II being estimated at between US$350 million and US$400 million and for the smelter/refinery at US$700 million to US$800 million. In addi- tion, Vedanta is looking at extending the life of the Black Mountain mine via the Swartberg Phase II project which would enable maximum extraction of the current Deeps resource. Modern Mining will be reporting in much more detail on Gamsberg in its January issue where it will feature in our annual round-up of Africa’s Top Mining Projects. Arthur Tassell

The Gamsberg concentrator plant (photo: Arthur Tassell).

technology of Canada’s Woodgrove Technologies. Gamsberg also has the most advanced assay laboratory I’ve ever seen. Highly automated and equipped with robotic arms, it has more the fla- vour of Silicon Valley than the Northern Cape and is in keeping with Vedanta’s vision of mak- ing Gamsberg one of the most digitally-enabled mines in Africa. In theory Gamsberg has been a three-year project, with the first blast on site having taken place in July

December 2018  MODERN MINING  3

MINING News

Advanced milling control system installed at Asanko

The performance of the Asanko processing plant (seen here) has been enhanced by the use of an advanced milling control system.

DRA Global recently implemented a state-of-the-art advanced milling control system, using the MillSlicer instrument, at the Asanko Gold Mine (AGM) in Ghana. AGM is a large scale, multi-pit asset located on the Asankrangwa belt. Built in 2015 by DRA Global, ahead of schedule and within budget, first gold was poured in January 2016 and commercial production com- menced in April 2016. Operations at Asanko prioritise efficien- cies, with minimal downtime. Unplanned or forced mill stoppages and breakdowns

trol systems, specific to an operation,” says Val Coetzee, DRA’s Senior Vice President Process. “The program allows for accurate mill charge toe-angle measurement and real time polar plot determination, which is used in the customised control system.” The milling control system, which was commissioned by DRA in August 2018, uses proprietary ‘rule-based algorithms’ which assist the mine’s operation with superior control, maximising energy effi- ciency and ensuring continual optimal mill performance despite any changes in mine fragmentation or ore type variances. “DRA is able to provide remote opera- tional support, data analysis and reporting to assist clients in reducing liner damage, media consumption and ensure that mill operators efficiently maximise throughput at all times,” states Coetzee. “This MillSlicer hardware and the DRA advanced control system, in conjunction with a number of other initiatives relating to open circuit modifications, use of cam- eras and feed blending, have successfully contributed to the performance excellence of the Asanko processing plant in recent months.” Russell Bradford, SVP Metallurgy at Asanko, comments: “The MillSlicer hard- ware has enabled the Asanko team to optimise the mill’s performance by ensur- ing we always have the right blend of ore at the right tonnages in the mill. Since this technology was implemented, the Asanko processing plant has consistently delivered above its 5 Mt/a design rate.” 

can often lead to costly setbacks for overall mine operations. The DRA Global technical processing specialists collaborated closely with the Asanko owner’s team to develop a control system solution that is able to produce real time reporting and enable the mill operators to better optimise the milling process. “This MillSlicer Control instrument provides accurate signals via a number of strategically positioned vibration sensors that are used by DRA’s comminution and control specialists to develop bespoke con- “The sale of our interest in Rössing once again demonstrates our commitment to strengthening our portfolio and focusing on our core assets, which deliver sector-leading returns in the short, medium and long term,” said Rio Tinto Chief Executive J-S Jacques. “Rio Tinto has a long history in Namibia and I would like to thank the many people across Rio Tinto and the communities in which we operate who have contributed to the success of Rössing. I wish them con- tinued success under new ownership. Rio Tinto will work closely with CNUC to ensure a smooth transition and ongoing sustain- able operation at Rössing.” Operating since 1976, theRössingbusiness has reportedly produced more uranium than any other single mine globally. It produces and exports uranium oxide from Namibia to nuclear power utilities around the world. In 2017, the mine produced 4,65 Mlb (approxi- mately 2 110 tonnes) of uranium oxide. 

Rio Tinto to sell its interest in Rössing Uranium Rio Tinto has entered into a binding agreement with China National Uranium Corporation Limited (CNUC) for the sale of its entire 68,62 % stake in Rössing Uranium Limited, the owner of the Rössing mine in Namibia, for up to US$106,5 million.

The total consideration comprises an ini- tial cash payment of US$6,5 million, payable at completion, and a contingent payment of up to US$100 million following completion. The contingent payment is linked to ura- nium spot prices and Rössing’s net income during the next seven calendar years. In addition, Rio Tinto will receive a cash pay- ment if CNUC sells the Zelda 20 mineral deposit during a restricted period following completion. The total consideration is sub- ject to a maximum cap of US$106,5 million. The transaction reportedly represents the culmination of an extensive assessment of strategic options considered by Rio Tinto in relation to Rössing.

4  MODERN MINING  December 2018

MINING News

Maiden resource declared for Kari Pump discovery

TSX-listed Endeavour Mining has announced a significant maiden resource estimate for the previously announced Kari Pump discovery at its flagship Houndé mine in Burkina Faso. The resource com- prises an indicated resource of 11,3 Mt at 2,71 g/t Au for 987 koz and an inferred resource of 0,2 Mt at 2,21 g/t Au for 20 koz. Kari Pump, located only 7 km west of the processing plant, is one of three high-grade discoveries made in the large Kari gold-in-soil anomaly which covers a 6 km long by 2,5 km wide area. A total of 203 900mhas been drilled over the past 18 months, covering only 35 % of the anom- aly, with drill results previously announced in November 2017 and May 2018. Since May 2018, efforts have focused mainly on the Kari Pump discovery, with over 71 000 m drilled to extend and in-fill its mineralisation, which has led to the suc- cessful delineation of a maiden resource. In addition, over 20 000 mwere drilled on the Kari Centre and Kari West discoveries, for which a maiden resource is expected to be delineated in 2019. The Kari Pump maiden resource esti- mate has increased Houndé’s measured and indicated resources by 40 %, while adding high-grade material. The resource covers an area 1,3 km long by 0,8 km wide and remains open towards the east, north, north-west and south-west. Due to the intensive in-fill drill programme com- pleted, 98 % of the maiden resource has been classified to the indicated category. As the mineralisation starts at surface, it is amenable to open-pit mining. In addi- tion, approximately 45 % of the indicated resource is located within the oxide and transition zones, compared to most of the Houndé indicated resource located in fresh zones.

The Kari area is located only 7 kmwest of the Houndé processing plant, which is seen here (photo: Endeavour Mining).

Another aggressive 200 000-m drill programme is expected to start before the end of 2018 focused on extending the mineralisation of Kari Pump and delineat- ing a maiden resource for both the Kari West and Kari Centre discoveries, in addi- tion to testing other nearby targets. Commenting on the maiden resource, Sébastien de Montessus, President and CEO of Endeavour, said: “The size and high-grade nature of the resource con- firms Houndé as a world-class asset with significant exploration potential to extend its status as a long-life, low-cost flagship mine within our portfolio. “I would like to congratulate our Houndé exploration team for its commit- ment, enthusiasm and professionalism and to thank them for their efforts which are bearing fruit … . It is impressive to delin- eate a maiden resource with more than 98 % classified in the indicated category and at a discovery cost of just US$9/oz.” bisected by the Sabce shear zone, a major structural fault proximal to multiple gold deposits which trends south-west/north-east and bisects the entire long axis of the prop- erty. The Sabce is the dominant feature at the 3 Moz plus Bissa deposit, currently being mined by Nordgold approximately 20 km to the north-east of the Dakouli 2 permit. Nexus has identified a large orpaillage situated on the permit’s eastern border

Added Patrick Bouisset, Executive Vice- President Exploration and Growth: “We are very pleased with the maiden resource at Kari Pump as it confirms the high potential we see at Houndé. With over 200 000 m drilled, processed and analysed in less than 18 months over the Kari area, our team has proven the ability to deliver quickly on high-priority targets. “Looking ahead, we are excited by the upside potential in the wider Kari area and the other regional targets. As such, we have launched another intensive 200 000-m drill campaign with the goal of quickly delineating more resources. “More broadly, the exploration success achieved notably at Kari Pump, Ity and Fetekro just two years since the implemen- tation of our five-year strategic exploration plan in late 2016 demonstrates that we remain on track to reach our ambitious dis- covery target set at a discovery cost lower than US$20/oz.”  The Dakouli 2 property lies immediately south of Nexus’s 178 km 2 Niangouela con- cession which has been explored over the past two years. Sampling at Niangouela returned bonanza-grade gold values, including 2 950 g/t Au, 403 g/t Au, and 49,8 g/t Au. The maiden drill programme at Niangouela returned significant high- grade intercepts, including 26,69 g/t Au over 4,85 m, including 1 m of 132 g/t Au.  which is being actively exploited by arti- sanal miners.

Nexus acquires Dakouli 2 gold concession Nexus Gold Corp, listed on the TSX-V, reports that its wholly owned subsidiary, Nexus Gold Corp Burkina SARL, has acquired the Dakouli 2 gold concession, a 198 km 2 gold exploration permit located in central Burkina Faso, approximately 100 km due north of the capital city of Ouagadougou. The Dakouli 2 property is located on the Boromo-Goren greenstone belt and is bor- dered to the north by granitic rocks. It is also

December 2018  MODERN MINING  5

MINING News

CBG recently achieved first ore at its ‘Bauxite Production Expansion Project’ in Kamsar, Guinea (photo: Fluor).

Milestone achieved on bauxite project

is planned to include further exploration results and an assessment of the lithium market conditions. The PEA envisages a capital cost of US$275 million for the mine, concentra- tor and lithium carbonate conversion plant, including by-product circuits and contingency. The average cash cost of pro- duction is estimated at US$4 080/tonne of battery-grade lithium carbonate, net of by- products and inclusive of royalties. The project would generate Life of Mine revenues of US$852 million. The pre- tax NPV at an 8 % discount rate is put at US$144 million (US$109 million post-tax), assuming an average sale price of lithium carbonate of US$13 000/tonne while the pre-tax IRR is estimated at 29 % (25 % post- tax). The payback period is approximately 2,5 years.  workers on site at peak construction. The project team focused on hiring a local workforce, which resulted in Guinean workers representing nearly 75 % of the workforce at site. To align the workforce on safe work practices and create a safe work culture at the site, Fluor developed a spe- cialised safety programme. The project has worked more than 4 million hours without a lost-time incident. CBG is jointly ownedby theGovernment of Guinea and the Halco Mining consor- tium, which includes Alcoa, Rio Tinto and Dadco Investments. 

Desert Lion Energy Inc, listed on the TSX-V, has reported the results of the company’s Preliminary Economic Assessment (PEA) for its Namibian lithium project. The PEA covers mining, concentrate and lithium carbonate production. The PEA was pre- pared by independent consultants, Hatch and The MSA Group. “We are very pleased with the results of the PEA which confirm management’s belief in the benefits associated with the project’s at or near surface mineralisa- tion, proximity to high quality existing infrastructure and the low-cost operat- ing environment in Namibia. The PEA demonstrates the compelling economics of the project, highlighted by low capi- tal costs, low operating costs and high earnings.” The PEA details the production of lepid- Fluor Corporation, listed on the NYSE, reports that Compagnie des Bauxites de Guinée (CBG) has achieved first ore at its ‘Bauxite Production Expansion Project’ in Kamsar, Guinea. Fluor is providing engi- neering, procurement and construction management services on the project. “From developing the local craft work- force to strengthening the economy, this project will have a lasting positive impact on the Kamsar community,” said Tony Morgan, President of Fluor’s Mining &

Metals business. “Achieving this milestone safely, on budget and on schedule is a testament to the dedication and persever- ance of the joint CBG and Fluor team.” The project is expanding bauxite production at the mine from 13,5 to 18,5 million tons per year. Fluor is respon- sible for the expansion of the mine infrastructure, rail system, port facility and processing plant infrastructure and utilities. There were more than 1 500 craft

Positive PEA completed by Desert Lion Energy olite (lithium) concentrate at the mine site with final processing of such concentrate into battery-grade lithium carbonate near the Port of Walvis Bay. The mine site is located approximately 20 km from the town of Karibib and approximately 220 km from Walvis Bay, to which it is connected via the national highway and state-owned railway.

The vertically integrated plant encom- passes the development of a mine, concentrator and lithium carbonate plant capable of producing 20 000 tonnes per year of battery-grade lithium carbonate. By-products include 35 250 tonnes of pet- alite concentrate per year and 290 tonnes of tantalum concentrate per year. The development plan will continue to be assessed during the next stage of work to be completed by the company which

6  MODERN MINING  December 2018

MINING News

Cat® autonomous mining truck fleet hauls one billion tonnes

“Spectacular” surface intersect at Lindi Jumbo graphite project ASX-listedWalkabout Resources reports that Northern Block drilling and trenching assay results now confirm that high-grade graphite domains continue for 300 m to the north- east and remain open at its 100 %-owned Lindi Jumbo graphite project in Tanzania. Drill and trench assay results confirm the Lindi Jumbo deposit to contain the highest grade reported graphite mineralisation in Tanzania. Highlights include a spectacular surface intersect in trench LJTR004 of 36,1 at 23,5 % Total Graphitic Carbon (TGC) from 3 m including 7,1 m at 32,9 %TGC from 28 m; and 27,6 m at 16,9 % TGC from 12,5 m including 5,9 m at 18,7 % TGC from 13,5 m in LJTR006. High-grade at, or near surface, minerali- sation continue for 300 m to the north-east and remains open towards the north and down-dip. “These results easily demonstrate that Lindi Jumbo remains the highest grade, lowest risk graphite project around,” com- ments Trevor Benson, Executive Chairman of Walkabout. “The high-grade nature of the deposit gives the mine a huge advantage in mitigating start-up risks that face new mine operations. “The upcoming upgrade of the mineral resource should have a positive knock-on effect on the initial mine plan and LOM economics of the project, further support- ing the Lindi Jumbo graphite project as the most significant graphite project ready for development.” Walkabout’s Lindi Jumbo project is situated in south-eastern Tanzania, approxi- mately 200 km from the export port of Mtwara. The company has taken the proj- ect from discovery in October 2015 to the completion of a highly robust Definitive Feasibility Study within 16 months and has been granted a mining lease over the deposit. The DFS was based on an annual produc- tion of 40 000 tonnes of graphite concentrate with a high grade feed to the plant of less than 300 000 tonnes per annum. Mining studies were based on a measured and indi- cated mineral resource only. The upfront capex for the project was estimated at US$29,7 million. The project has a very short development timeframe of seven months from financing. 

Cat® mining trucks working within MineStar™ Command for hauling recently reached a milestone of one billion tonnes hauled. Caterpillar deployed the first six commercial autonomous trucks in 2013, and the fleet has now grown to more than 150 with six different mining companies operating Command for hauling in iron ore, copper and oil sands. “Command for hauling has proven its value to mining customers,” said Sean McGinnis, Product Manager, Caterpillar Mining Technology.“That value is reflected in the rate at which the Cat autonomous fleet achieved this milestone. The fleet is growing quickly and production continues to climb as mining companies benefit from greater truck productivity, increased truck utilisation, consistent truck operation and reduced costs. “In the process of hauling one billion tonnes, the autonomous trucks travelled nearly 35million kilometres,”McGinnis said. “No lost time injuries have been attributed to Cat autonomous haulage. Command for hauling has demonstrated how it enhances safety by eliminating truck operating errors and by reducing the number of people working in the active mining area.” Initial development of Cat autonomous mining trucks began more than 20 years ago. “In 1996 Caterpillar debuted the first

autonomous mining truck at MINExpo,” said Michael Murphy, Chief Engineer of Cat MineStar.“Caterpillar was an early adopter of GPS guidance technology, and we had success with it in a number of applica- tions. At that time, Caterpillar focused on developing the building blocks for auto- mation. These technologies are now the core of MineStar capabilities, which assist onboard operators and enable teleremote, semi-autonomous and autonomous machine operation.” Currently, Cat autonomous trucks are operating in Australia, South America and North America. A fleet of 70 Cat autono- mous trucks in Australia has achieved productivity increases of 30 % at signifi- cantly reduced costs. Driven by additional process improvements, greater productiv- ity gains are possible. The current Cat autonomous truck fleet is primarily composed of Cat 793F trucks, which have a 227-tonne payload. But the range of truck models is expanding. Caterpillar has developed and is deploying autonomous Cat 797F (363-tonne payload) and Cat 789D (181-tonne payload) trucks. To serve customers with mixed fleets, Caterpillar has developed a retrofit kit for another brand of trucks. The retrofit equips the trucks to work autonomously within Command for hauling. 

A Cat 793F CMD mining truck leaving an iron ore pit.

December 2018  MODERN MINING  7

MINING News

Sabodala shines for Teranga Gold

original guidance range of between 210 000 and 225 000 ounces. Third quar- ter and year-to-date per ounce costs improved versus the prior year periods, positioning the company to achieve the lower end of its full year guidance ranges for these metrics. “Our team continued to execute suc- cessfully, managing the rainy season to achieve another strong operating quar- ter,” said Paul Chawrun, Teranga’s Chief Operating Officer. “With record year-to- date production at Sabodala in Senegal, we expect 2018 to set a new high for gold production after record-breaking years in 2016 and 2017. This is a testament to our continuous improvement programme, which is resulting in improved grades rela- tive to the Sabodala technical report, as well as our ability tomanage our per ounce cost metrics.” “We have a very clear vision – to build a multi-asset, mid-tier gold producer inWest Africa. We believe this can be achieved in the next five years,” commented Richard Young, President and CEO. “Our producing mine continues to generate strong free cash flows. We have a second mine under construction which, upon completion, is expected to increase annualised consolidated produc- tion by 50 % to about 350 000 ounces. Additionally, we have a third project, Golden Hill, that has the potential to be our third mine and take the company to mid-tier producer status.”  deposits to be discovered in close proximity to our advanced Prieska zinc-copper project. VMS deposits tend to occur in clusters and yet there has been virtually no exploration outside of the known deposits at Prieska in several decades,” comments Errol Smart, Orion’s Managing Director and CEO. “In fact, this intersection is the first new VMS discov- ery in the Areachap Belt for the past 36 years. “This important discovery demonstrates the huge potential to find additional depos- its within a 5-10 km radius of the proposed processing plant and mine infrastructure at Prieska, validating our exploration strat- egy which is aimed at unlocking the value of this rich mineral province. It also dem- onstrates the advantage of using modern geophysical exploration techniques in such a well-mineralised VMS terrain and is the deepest ‘blind deposit’ ever discovered in the Areachap.” 

The Sabodala mill was the first industrial gold processing facility to come into operation in Senegal. It now has the capacity to process up to 4,5 Mt/a (photo: Teranga).

into operation in Senegal and, to this day, remains the largest gold operation in the country. The mill has undergone two expansions – one in late 2012 and the other completed in 2016 – and is now able to process up to 4,5 Mt/a, nearly double its initial capacity. The company achieved record third quarter and year-to-date gold production at Sabodala of 56 376 and 185 788 ounces, respectively, and is on track to achieve full year 2018 production of between 235 000 and 240 000 ounces – up from Teranga’s Magnetic (FLEM) conductor located 5,3 km south-southwest of the Hutchings Shaft at the Prieska project and 1,6 km west and along strike of known copper mineralisa- tion at Annex. The modelled conductor has a strike length of 1,1 km and extends down-dip to at least 800 m below surface. The vertical depth to the top of the conduc- tor is 500 m. Orion believes the identification of cop- per (chalcopyrite) and zinc (sphalerite) associated with the massive sulphide min- eralisation, and with host lithology similar to that at the Prieska deposit, suggests the discovery of a Volcanogenic Massive Sulphide (VMS) deposit. “The discovery at Ayoba is a very important breakthrough, which clearly demonstrates the potential for large satellite

Canada’s Teranga Gold Corporation, listed on the TSX, has reported its oper- ating, financial and development results for the three and nine months ended September 30, 2018. Teranga owns and operates the Sabodala gold mine in Senegal and is developing a second mine, Wahgnion, in Burkina Faso. Sabodala, a multi-pit operation which has been in production since 2009, has a CIL processing plant using a conventional flowsheet. The Sabodala mill was the first industrial gold processing facility to come

Orion announces VMS discovery near Prieska Orion Minerals, listed on the ASX and JSE, has announced the discovery of a new cop- per-zinc bearing massive sulphide body located in close proximity to the company’s flagship Prieska zinc-copper project in the Areachap Belt of Northern Cape Province, South Africa.

The discovery hole, OAXD002, was drilled at the Ayoba prospect, a satellite explora- tion target, and is both the first exploration hole drilled as part of Orion’s near-mine exploration project and the first hole to test for new mineralisation surrounding the his- torical Prieska mine in more than 36 years. The hole intersected 10,55 m of sulphide mineralisation, including 5,17 m of massive sulphides (>70 % sulphides) from a down- hole depth of 653,2 m. The discovery was made by drill testing a Fixed Loop Electro

December 2018  MODERN MINING  9

MINING News

DRA designs “one of a kind”Community Centre

ment, banking and business development entities, who will be taking up residence in the centre. This will benefit the com- munity enormously. Now the local people will be able to make use of various training and development programmes, as well as completing day-to-day activities, all at one accessible location.” Ivanplats had a very specific design in mind for the MPCC and wanted to move away from the traditional ‘mining’ look and functionality. Innovation, sustainabil- ity and green technology are extremely important to Ivanplats. These elements have successfully been incorporated by DRA Global’s Architectural Design divi- sion, while also making the entire building aesthetically pleasing and not just another square ‘mine’ building. The MPCC will ultimately feature a new modern electronic library, a fully equipped training centre and a sustainable garden with a functional children’s play area. DRA Global’s Architectural Design division has worked closely with environmental and sustainability consultants to ensure the MPCC design meets the strictest of green standards. The building is energy efficient, makes use of natural light and ventilation, and will boast rain harvesters to optimise the use of natural resources. “This project is a first of its kind for DRA Global and we are delighted to be helping Ivanplats break boundaries within the min- ing space. This is not just about mining; it is about leaving a legacy that will benefit people and the environment,” concludes Alistair Hodgkinson, DRA Executive Vice President, Projects.  maiden JORC resource in progress. The cost to complete the entire Phase 1 and Phase 2 drilling programme and the resultant resource estimations is fully funded from existing cash reserves. Tando is also fully funded for the metallurgical and mining studies which will follow comple- tion of the drilling programme. The SPD vanadium project is located in a similar geological setting to the mining operations of Rhovan (Glencore), Vametco (Bushveld Minerals) and Mapochs in the Gauteng and Limpopo provinces of South Africa It is only 30 km from the currently dormant Mapochs mine which has a pro- cessing plant and railway infrastructure. 

Interior view of the Multi-Purpose Community Centre (MPCC) designed by DRA Global.

Ivanplats, an Ivanhoe Mines company, has engaged diversified engineering group, DRA Global, to design a one-of-a-kind Multi-Purpose Community Centre (MPCC). This project forms part of Ivanplats’ sus- tainable social development programme for its Platreef mining operations, situated in Limpopo Province. DRA Global has been involved with the Platreef platinummine since 2014, provid- ing essential technical solutions, including the Feasibility Study (FS), mining, infra- structure design and construction. One of the main challenges is that the mine is situated in the middle of the Mokopane District, making all operations extremely community-driven. Ivanplats has seen this as an opportu- nity to break the mould with regards to community development and engage- ment. From hiring local contractors to

building a state-of-the-art MPCC, Ivanplats’ approach, with DRA Global’s assistance, is setting a trend for others to follow. “We had to rethink our design and con- cept, considering how we would make this a fully sustainable centre for the com- munity,” says Werner Botha, Ivanplats’ Senior Projects Manager, Social & Legal Compliance. “DRA Global has given us a design that truly exceeded all our expec- tations, but we also needed to ensure that the centre will remain open and operational. Ivanhoe will be taking up a third of the space with some of our inter- nal services. Our Enterprise and Supplier Development and Human Resources Development will be permanent tenants of the centre, ensuring that it will remain in a working and viable condition. “Another innovative aspect of the MPCC will be the integration of govern- which sits outside the main SPD deposit, as it will be able to assess the results prior to committing capital for the construction of additional road infrastructure. In parallel with the drill testing of the pipes, Tando is continuing its Phase 2 drill- ing programme on site with three rigs continuing to be active. The Phase 2 pro- gramme aims to increase the confidence in the SPD deposit, where there is currently a resource of 513 Mt at a grade of 0,78 % V 2 O 5 defined under the SAMREC code. This resource is a‘foreign resource’(as defined in the ASX Listing Rules) with estimation of a

Tando mobilises fourth rig to vanadium project ASX-listed Tando Resources has mobilised a fourth drilling rig – a heliborne rig – to drill the high-grade vanadium pipes at its SPD vanadium project in South Africa. This follows the completion of an initial phase of drilling at the Cluster 1 vanadium pipe target.

A total of 13 holes was completed with assays anticipated in coming weeks. The heliborne rig was moved on to site in November to drill the Cluster 5 target, which returned the highest grades in sur- face sampling. The company has elected to utilise a heliborne rig to drill Cluster 5,

10  MODERN MINING  December 2018

MINING News

Azumah starts on A$4 million drill programme

West African gold explorer and developer Azumah Resources, listed on the ASX, has commenced a 40 000 m, A$4 million multi-target drilling campaign aimed at lifting mineral resources and ore reserves at its Wa gold project in Ghana, where the primary objective is to deliver an eco- nomically attractive, development-ready project by Q3 2019. “We have a multitude of stand-out tar- gets across our vast and highly prospective Wa gold project tenure that we are con- fident will deliver increases in mineral resources and ore reserves,” commented Azumah MD Stephen Stone. “Our exploration strategy has been developed by renowned orogenic gold specialist, Dr Jon Hronsky, who is a found- ing partner of our joint venture partner, Ibaera Capital, which is sole-funding and managing the 40 000 m drilling campaign.” Paul L’Herpiniere, who is also a founding partner of andGeneral Partner – Exploration and Evaluation at Ibaera Capital, said: “The entire team is eager to commence what will be an exciting exploration campaign at the Wa gold project, following on the back of last season’s increase in mineral resources

to 2,5 Moz which was largely achieved through focused drilling at previously defined prospects. “A particular focus for us this season is to evaluate the depth extent of mineralisa-

tion at our flagship Kunche, Bepkong and Julie deposits, as that could provide us with the option of adding underground production to the life-of-mine develop- ment strategy.” 

A previous phase of drilling at the Wa gold project in Ghana (photo: Azumah Resources).

NewWits professor an expert in rock mechanics With a long career in rock mechanics research, operations, consult- ing and academia, Professor Bryan Watson has been appointed associate professor in the School of Mining Engineering at the University of the Witwatersrand. Professor Watson has been an adjunct professor at the School since July 2016, and brings extensive experience in mining research and development, mining operations, numerical modelling, instru- mentation and laboratory testing. Among his qualifications is a PhD from Wits University, a work which was voted the world’s second best doctoral thesis on rock engineering in 2011. In that year, he also won the Southern African Institute of Mining and Metallurgy (SAIMM) silver medal award for an outstanding publication, and the Salamon award for best rock engineering paper in South Africa from the South African National Institute of Rock Engineers (SANIRE). A winner of the innovators award from the Council for Scientific and Industrial Research (CSIR), Professor Watson has researched and written prolifically on rock mechanics – with 18 major research reports, 13 journal publications and 14 conference papers. He began his career with Anglo American Prospecting Services in Vereeniging as a field officer, moving on to become an assis- tant rock mechanics officer in Witbank for Amcoal Research and Development. He then worked for the Chamber of Mines Research Organisation (COMRO) – later CSIR Miningtek – where his focus moved to the geomechanical testing of hard rock, and also the monitoring of rock mass behaviour around shallow and inter­

mediate depth platinum mines. As senior researcher at CSIR Natural Resources and the Environment, Professor Watson then spent almost five years on proposing and lead- ing multi-million Rand projects in diverse disciplines such as numerical modelling, geology, instrumentation and rock mass rating systems; the unit also implemented and managed underground instrumentation programmes.

Professor Bryan Watson.

He was chief rock engineer at Gold Fields’Driefontein gold mine in Carletonville, going on to become unit manager rock engineer- ing at the company’s South Deep gold mine inWestonaria – where he managed the rock engineering and seismic departments and designed and implemented newmine layouts, monitoring systems and appropriate support requirements. Professor Watson has been an external consultant to global engineers and scientists SRK Consulting since 2016, and holds professional membership of the South African National Institute of Rock Engineers (SANIRE), the South African Institute of Mining and Metallurgy (SAIMM), and the North American Rock Mechanics Society. 

December 2018  MODERN MINING  11

MINING News

The Komatsu head office on the new Komatsu campus.

Komatsu unveils its new industrial campus confidence in South Africa and its future and serves as a launching pad to meet our objective of growth through innovation. It will also enable us to render support in the much-needed expansion of the local economy through the seamless supply of equipment to the mining, construction and utilities markets,” said Mike Blom, MD of Komatsu African Holdings.

be at the lower-end of our cost guidance. We generated strong cash flow this quarter and have maintained our robust cash bal- ance while advancing our growth project,” said John Dorward, President and CEO of Roxgold. “At Bagassi South, the project has been progressing well during the quarter and first development ore has been delivered to the ROM pad in late October on sched- ule. The process plant expansion, which will increase mill capacity nearly 50 %, is also continuing to progress well. With all materials now on site, the expansion is on track to be completed by the end of the year.”  The training centre is equipped with virtual reality technologies with realistic machine controls for simulated operator training and testing. Over the past five years, more than 130 apprentices have gone through the Komatsu apprentice- ship programme. The centre currently offers 36 courses and has provided train- ing for more than 2 300 people over the past three years.  will have a positive impact on the levels of service and support provided to customers through improved logistics, workflow and communication. The PDC is 21 000 m 2 in size and 23 % larger than the previous facility. It has an inventory of around 40 000 line items val- ued at R885 million and distributes around 12 000 pieces to more than 40 destinations every day. It features semi-automated tur- ret trucks enabling safe, accurate access to the highest racking areas.

Komatsu African Holdings, the Southern African division of global capital equip- ment player Komatsu Limited, has unveiled a new industrial hub built at a cost of R985 million in Sunnyrock Ext 11, Tunney, Germiston, east of Johannesburg. Trade and Industry Minister Rob Davies was one of the guests at the event. The 300 000 m 2 development is one of the largest industrial campuses in the country and will serve as the central hub from which the company will manage its widespread operational footprint across Southern Africa. The venture brings together mul- tiple previously geographically dispersed operations in a single, convenient com- plex that has been purpose-designed to streamline existing operations and enable the business to capitalise on future market resurgence opportunities. “This development clearly reflects our

production now stands at 106 812 ounces (91 970 ounces in YTD 2017). Yaramoko realised a record quarterly processing throughput of 78 357 tonnes – 15 % above nameplate capacity. Operating costs per tonne processed were reduced by 7 % over the quarter and the mine achieved a cash operating cost of US$454 per ounce produced and all-in sustaining costs of US$788 per ounce sold. “With the solid operating results achieved at Yaramoko this quarter, we are confident of achieving the upper-end of our 2018 full year guidance range and expect to The campus comprises the company’s head office operations, Gauteng branch and state-of-the-art training centre, equip- ment workshop and Parts Distribution Centre (PDC). Construction of a technically advanced component remanufacturing facility will begin in 2019 and is set for completion the following year. Blom highlighted the main drivers behind the development: the creation of a safe, pleasant and modern working envi- ronment for employees and the delivery of enhanced operational efficiencies. These

Yaramoko delivers record gold production Roxgold Inc, listed on the TSX, has reported its third quarter financial results for the period ended September 30, 2018. The company’s key asset is the high-grade Yaramoko gold mine, located on the Houndé greenstone belt in Burkina Faso. Roxgold operates the 55 Zone under- ground mine at Yaramoko, commissioned in 2016, and has a second high-grade underground mine, Bagassi South, cur- rently in development.

During the quarter, Roxgold achieved production of 30 532 ounces of gold (28 410 ounces in Q3 2017) and YTD 2018

12  MODERN MINING  December 2018

MINING News

Ausenco appointed for FEED work for Achmmach

ASX-listed Kasbah Resources has appointed Ausenco Services to under- take Front End Engineering Design (FEED) work for its Achmmach tin project in Morocco. Kasbah released a highly positive new and updated Definitive Feasibility Study (DFS) for the Achmmach project in July 2018, which confirmed its status as a world class, development-ready tin project. The company is now focused on secur- ing project financing, offtake partners, a mining contractor and an Engineering Procurement Construction (EPC) contrac- tor to build the project. Ausenco will undertake its work between November 2018 and February 2019, with the aim of enhancing and improving the design and efficiencies in the processing plant, thereby reduc- ing risk and targeting an improved EPC tender price for the construction of the processing plant. The scope of the FEED includes: opti- misation of process plant layout and design; reduction of the overall project costs through efficient design and effec- tive sourcing of materials, including from the Mediterranean region; and reduction of the project schedule through effective planning and optimisation of construction strategies. The Achmmach project includes a pro- posed underground mine with an initial 10-year life, producing 750 000 tonnes of ore per annum at an average head grade of 0,82 % tin (Sn). The associated process- ing plant will incorporate ore sorting and High-Pressure Grinding Rolls (HPGR) tech- nology to produce approximately 4 500 tonnes of tin per annum in a 60 % tin concentrate. 

The Achmmach site. The project is located approximately 40 km south-west of the city of Meknès in central northern Morocco (photo: Kasbah).

Exploration Target determined for Sanankoro Cora Gold Limited, theWest African focused gold exploration company, reports that SRK Consulting (UK) has determined an initial Exploration Target of between 30 and 50 million tonnes of gold ore at a grade of between 1,0 and 1,3 g/t Au for its Sanankoro gold project in southern Mali.

defining the scale potential of the project has been vindicated before reverting to more focused drilling to identify areas of higher grade mineralisation, which might be suitable as ‘starter pits’ for any future standalone gold mine. In addition, large tonnages of oxide ore, which inmany places is represented by soft saprolitic ore, might be anticipated to be amenable to low cost mining and processing which could also be beneficial for the early stages of mine development. “The review by SRK will now act as a springboard for the next stage of our strat- egy where we will be seeking to define the strike extent and depth potential of the higher grade zones that the first round of drilling has indicated may exist.” 

“It is very pleasing to have our opinion on the gold potential of the Sanankoro proj- ect confirmed by this independent review by SRK,” Dr Jonathan Forster, Cora’s CEO, commented.“That the Exploration Target of 1,0-2,0 Moz is taken only to a vertical depth of 100 m in an environment where depth of oxidation ranges from about 50 m to in excess of 100 m suggests that the potential for significant upside remains at depth. “We are pleased that our strategy of first

December 2018  MODERN MINING  13

MINING News

Newmont declares commercial production at Subika

Botswana based and owned company, we are pleased to have concluded a partner- ship with such a progressive black South African company as Lurco. The transaction will grant us access to markets that we haven’t had access to before. Together with Lurco we will work towards regional inclu- sivity and the partnership is a clear example of fulfilling SADC’s objectives of integration between Southern African countries in the energy industry. “The partnership is in line with Shumba Energy’s long-term strategy which is to address the chronic power shortage and satisfy the growing energy demand in the SADC region while monetising all of our existing assets. The terms we have received will ensure that we continue to accelerate the development of Sechaba while allow- ing us to fast track our other projects.”  Over the last five years, Newmont has successfully built 10 newmines and expan- sions on four continents – on or ahead of schedule and at or below budget. These projects include Akyem (Ghana) and the Phoenix Copper Leach in 2013, the Turf Vent Shaft in 2015, Merian and Long Canyon in 2016, the Tanami Expansion in 2017, and Twin Underground and Northwest Exodus in 2018. The company also completed a value-accretive acquisi- tion of Cripple Creek andVictor in the US in 2015 and delivered a profitable expansion at the mine in 2016.  and US$350 per ounce compared to 2016. The project has an expected Internal Rate of Return of more than 20 %. “In addition to increasing gold produc- tion and lowering costs at Ahafo, Subika Underground leverages the operation’s existing infrastructure and experienced workforce to further extend mine life,” said Gary Goldberg, Newmont’s Chief Executive Officer. “The mine provides an under- ground platform to explore additional upside potential in adjacent ore bodies and also includes some of the latest fit-for- purpose technologies to enhance safety, productivity and efficiency.” As the company’s newest mine, Subika Underground features semi-autonomous loading operations, proximity detec- tion for vehicles, personnel tracking, and planned installation of ventilation-on- demand systems.

Underground ventilation fans at Newmont ‘s Subika mine in Ghana (photo: Business Wire).

Newmont Mining Corporation, listed on the NYSE, has achieved commercial production at the Subika Underground project, adding higher-grade, lower-cost gold production at the Ahafo mine in Ghana. Subika Underground represents Newmont’s third profitable expansion in 2018 and its tenth completed proj- ect since 2013. Newmont says Subika Underground was delivered on sched- ule and within budget for approximately

US$186 million in development capital. Beginning in 2019, Subika Underground will add average annual gold produc- tion of between 150 000 and 200 000 ounces per year for the first five years and has an initial mine life of around 10 years. Combined with completion of the Ahafo Mill Expansion project, expected in the second half of 2019, Ahafo’s average annual all-in sustaining costs (AISC) are projected to improve by between US$250

Joint venture to develop Sechaba coal project Botswana Stock Exchange-listed Shumba Energy reports an agreement has been reached for the establishment of a 50:50 joint venture partnership between Shumba and black-owned Lurco Group South Africa to develop Shumba’s Sechaba thermal coal project situated in the Morupule coalfield in Botswana. The deal will allow the partner- ship to supply coal into the region and for export.

nership, Shumba will transfer Sechaba and related authorisations to a special purpose vehicle (SPV). Lurco will immediately con- clude any feasibility work and begin work on the opencast construction, spending a minimum of US$10 million. Further, an amount of US$10 million will be paid to Shumba in phases prior to Lurco earning its 50 %. Lastly, development capital expended by both Shumba and Lurco prior to com- mercial production will be recouped from the SPV in the form of shareholder loans. In addition to the above, the parties have agreed that coal produced at Sechaba from the open pit will be toll processed through a wash plant owned by Shumba. The Managing Director of Shumba, Mashale Phumaphi, commented: “As a

Lurco has been trading for eight years and is an emerging South African resource business with a focus on exploration, benefi- ciation and trading. It is a supplier to Eskom in South Africa and currently exports ther- mal coal to a number of international clients out of various ports in Southern Africa. Under the commercial terms of the part-

14  MODERN MINING  December 2018