Modern Mining February 2018

February 2018 Vol 14 No 2 www.crown.co.za M ODERN MINING IN THIS ISSUE…

 New Volvo machines on the way to SA  Nokeng well into the construction phase  Yanfolila – Mali’s newest gold mine  Mining Indaba 2018 review  Positive PFS on T3 copper/silver project

MODERN M I N I N G

CONTENTS

FEBRUARY 2018

ARTICLES

COVER 18 New Volvo machines on the way to South Africa FLUORSPAR 22 Nokeng – drawing SA into the global fluorspar big league? GOLD 26 Yanfolila gallops out of the starting gate EVENTS 30 Improved political outlook lifts the mood at the Mining Indaba COPPER/SILVER 36 PFS on copper/silver deposit delivers “outstanding results” EQUIPMENT 38 Future technologies to feature at bauma CONEXPO AFRICA REGULARS MINING NEWS 4 Bakubung ore-handling system commissioned 5 Sissingué pours first gold a month early 6 Sorter recovers diamond from BK16 tailings material 7 Loulo-Gounkoto heads for a record performance DIAMONDS 34 Venetia project picks up pace

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

Darryl James Circulation Karen Smith Publisher Karen Grant

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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

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

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8 Alphamin upbeat on Bisie tin project 9 Gamsberg zinc project remains on track 10 Cardinal completes PEA on Namdini 11 Minergy heading for AIM listing 13 Solid production by Liqhobong 14 Toliara Sands transaction completed 17 Tiger Resources to divest from the DRC

Cover The new Volvo L350H wheel loader, available from Babcock, the Southern African dealer for Volvo Construction Equipment, is fitted with ‘next generation’ load-sensing hydraulics. See page 18 for further details.

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PRODUCT NEWS 42 Zest WEG Group contributes to Gamsberg project 43 M&C Zambia installs 12-ton balancing machine 44 Liviero Mining opts for Generac light towers 45 New fire suppression technology from Booyco 46 Ion exchange technology for DRC project 47 Fire suppression systems available from I-CAT 48 Kwatani screens ordered for Elikhulu plant

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Average circulation (October–December 2017) 4509

February 2018  MODERN MINING  1

COMMENT

Zimbabwe poised to benefit from the demand for lithium

J ust as Mozambique – as I wrote last month – has the potential to become one of the world’s major graphite-producing areas, so too does Zimbabwe have the potential to emerge as a very significant lithium- producing country. I must confess lithium is not a metal I know a great deal about and in all the years I’ve been covering mining I have never once visited a lithium mine – which is hardly surprising as there are not too many of them around, at least in Africa. Zimbabwe, however, does have one active mine, Bikita, near Masvingo, with several other projects on the way. With a production in 2016 of about 1 000 tonnes, the country is reportedly the fifth biggest lithium producer in the world after Australia, Chile, Argentina and China. “Fifth biggest”, by the way, sounds impres- sive but one has to bear in mind that both Australia and Chile are producing far more lith- ium than Zimbabwe – in the case of Australia, more than 18 times as much. Bikita aside, the country’s flagship lithium project is the Arcadia project of Prospect Resources, a company listed on the ASX. Located 35 km east of Harare, Arcadia is said to be one of the largest hard rock lithium deposits in the world with a total resource of 43,2 Mt at 1,41 % Li 2 O and proved and probable reserves of 26,9 Mt at 1,31 % Li 2 O. Prospect – which, despite its Australian listing, has a team of managers with strong Zimbabwean experience (who, for the most part, are based in the country) – is moving at full speed with Arcadia. It completed a very positive PFS on the project in mid-2017 and is now busy with a DFS. In addition, it has lined up China’s Sinomine as its offtake and develop- ment partner. The findings of the PFS defined a 1,2 Mt/a mining and processing operation producing, on average for the life of mine of 15 years, 75 000 t/a spodumene and 155 000 t/a petalite concentrates. The PFS estimated the capital cost of the project at US$52,5 million. Prospect is also evaluating the development of an inte- grated lithium chemical plant at Arcadia. I met up with Harry Greaves, who is Executive Director of Prospect (and a fourth- generation Zimbabwean), and the company’s Chief Geologist, Harry Tyler (whom I first met some years back in the DRC when he was with Anvil Mining), at the recent Mining Indaba. They were both very positive about Arcadia, pointing out that it has now been identified as a priority mining development project by the

Government of Zimbabwe. Present thinking is the company could ‘break ground’ in the first half of this year with a view to having an oper- ating mine around 14 months thereafter. Apart from Arcadia, there are at least two other lithium projects that I am aware of in Zimbabwe – the Zulu project, which is owned by Premier African Minerals, a company which is listed on AIM and which runs the RHA tung- sten mine in the north-west of the country, and the Kamativi tailings project. Located 80 km east of Bulawayo, Zulu is – says Premier – “generally regarded as potentially the largest undeveloped lithium-bearing pegma- tite in Zimbabwe”. The company said recently that it was planning to unlock value for share- holders by having a separate listing for Zulu. A Scoping Study on the deposit– completed last year by Bara Consultants – has identified a target production of 84 000 tonnes of spodu- mene concentrate and 32 000 tonnes of petalite concentrate per year over an initial 15-year life of mine to be the most appropriate option. The capex is estimated at US$64 million. As for the the Kamativi tailings, this resource is located at the historic Kamativi tin mine in Zimbabwe’s Matabele North Province. The tail- ings stockpile has been surveyed to give an estimated 23,19 Mt of historical tailings mate- rial on surface. Chimata Gold Corporation, listed on the TSX-V, has just signed a binding Letter of Intent (LOI) with Zimbabwe Lithium Company Limited which has the exclusive development rights for the deposit as a result of a joint ven- ture agreement with the Zimbabwe Mining Development Corporation. Upon final clos- ing of the transaction outlined in the LOI, it is expected that Zimbabwe Lithium will become a subsidiary of Chimata. While the Arcadia project looks like a dead certainty to go ahead, Zulu and the Kamativi tailings project appear to be less well advanced. However, with the now much more investor- friendly environment in Zimbabwe, and the relaxation of indigenisation requirements, both should have a good shot at entering production. The big question is whether demand for lith- ium is going to hold up in the medium to longer term. Many experts think it will. Increasingly, one sees the metal being referred to as the “new gasoline” – the term was coined by Goldman Sachs a year or two back – and, if this is indeed the case, demand could go through the roof, leading to a boom in lithium mining, not just in Zimbabwe but worldwide. Arthur Tassell

With a production in 2016 of about

1 000 tonnes, Zimbabwe is reportedly the fifth biggest

lithium producer in the world after Australia, Chile, Argentina and China.

February 2018  MODERN MINING  3

MINING News

Bakubung ore-handling system commissioned

WorleyParsons RSA, which has reportedly designed more deep mine shafts than any other company in the world, has recently completed the first and most critical phase of Wesizwe’s R10,7 billion Bakubung Platinum Mine project near Rustenburg, with the commissioning of the main and service shafts. In addition, the commis- sioning of the ore-handling system marks a major milestone in the project’s timeline. “The most important phase in devel- oping a deep underground mine with vertical shafts is equipping and commis- sioning the shafts to hoist – and we have successfully achieved that within the required timeframe,”says Ryan Illingworth, WorleyParsons RSA’s Project Director for the Bakubung project. He adds that with shaft steelwork, rock skips andman cages installed, and the pro- duction and service shaft complete, the vital work has been done and the second phase of developing underground infra- structure can continue. The downcast production shaft, to be used for men and materials, has a hoist- ing capacity of 250 000 tonnes of ore and 15 000 tonnes of waste per month. A refrig- eration systemwill provide bulk air cooling at a later stage. The layout of the 8,5 m diameter lined production shaft accom- modates two 20-tonne skips, a two-deck cage with 12-tonne/150-man payload, a counterweight and a 20-man service cage. The 7,5 m diameter lined service shaft currently consists of a stage winder and kibble winder originally utilised for the sinking of this shaft but now being used for auxiliary hoisting of rock and materials. Other major milestones that Worley­ Parsons has achieved on this project include the construction of the main shaft

The headgear of Bakubung’s production shaft.

Blanket production continues to climb Caledonia Mining Corporation has announced record quarterly gold production from the Blanket Mine in Zimbabwe for the quar- ter ended December 31, 2017 (Q4 2017). Approximately 16 425 ounces of gold were produced during the quarter, which was 14 % higher than the figure for the previ- ous quarter which was itself a record production quarter, and 21 % higher than the corresponding quarter of 2016. Total 2017 gold production was approximately 56 135 ounces, marginally ahead of 2017 production guidance of 54 000 to 56 000 ounces. “We are very pleased to have achieved our full year production

guidance for 2017 and to have delivered a second consecutive quarterly production record at Blanket for the fourth quarter of 2017, surpassing the previous production record set in the third quarter,” says Steve Curtis, Caledonia’s CEO. “Full year production of 56 135 ounces for 2017 is a significant achievement especially when considering the relatively slow pro- duction we experienced in the first half of the year. To finish the second half of the year with two quarterly production records and the production of almost 31 000 ounces of gold in the six-month period is an achievement of which all of our technical and produc- tion staff should be justifiably proud and bodes well for the delivery of our expansion plans at Blanket as we continue to invest for the production of 80 000 ounces by 2021.” 

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MINING News

Sissingué pours first gold a month early

terrace, main stores, workshops, tempo- rary offices, a sewage treatment plant, a main access road and the production shaft headgear. The 83 m tall headgear – for which WorleyParsons RSA received a South African Institute of Steel Construction Award in 2014 in the mining and industrial category – was erected in just 18 days and will be used to service all the conveyances. The three winders are ground-mounted and include a Koepe winder for rock hoisting and a double drum cage/coun- terweight winder for men and material hoisting. A significant optimisation effort that WorleyParsons RSA achieved during the first phase of the project was the local development and implementation of a cost-effective and highly efficient roping- up system instead of importing a more expensive system. Illingworth explains that by working in conjunction with the Tech Edge group, WorleyParsons developed the first locally built Koepe roping-up equipment, suitable for four ropes simultaneously. This tailor- made equipment included deflection sheaves, a compression beam, rope reelers and a friction winch all controlled from a central desk supplied by Schneider. This was specifically designed for Bakubung and is expected to deliver significant sav- ings in both time and cost to the client over the life time of the shaft. Wesizwe officially launched its flagship Bakubung Platinum Mine development project (previously the Frischgewaagd- Ledig project) on 4 July 2011 and WorleyParsons RSA has been involved in the project for almost a decade, from pre- feasibility and feasibility stages to being appointed as EPCM contractor in 2012. The mine is located in North West Province on the Western Limb of the Bushveld Complex and is expected to have a lifespan of 35 years and employ over 3 100 people when full production is reached. It will produce 255 000 tonnes per month on steady state for 24 years. Four mining levels are planned rang- ing from 690 m to 810 m below collar. Both the Merensky and the UG2 reefs will be mined. Merensky reef around the shaft area is intersected at about 730,9 m below collar and UG2 reef is 769,4 m below collar. A concentrator plant will also be built on the mine. 

Perseus Mining, listed on the ASX and TSX, reports that first gold was poured at Sissingué, its second producing gold mine, on 26 January 2018, one month ahead of schedule. The ramp-up to full scale commercial production at Sissingué, located in Côte d’Ivoire, is progressing as planned and is expected to be achieved on or before 31 March 2018. The estimated capital cost of the full development of the Sissingué mine and infrastructure, excluding early works but including operations readiness initiatives, was US$107 million and on current esti- mates this budget will not be exceeded. In reaching the key milestone of ‘first gold pour’, approximately 2,3 million man hours were expended and, in that time, only one lost time injury was incurred on the site. This safety record compares very favourably with global safety benchmarks for construction and for metallic mining and is – says Perseus – a testament to the skill and dedication of its in-house con- struction team, contractors, and the many local citizens from the project catchment area who worked on this development project. As part of the implementation of its operations readiness plan for Sissingué, Perseus has recruited an experienced operating team under the leadership of

General Manager Merlin Thomas. The team has implemented necessary operating sys- tems and has been progressively assuming responsibility for the mine and infrastruc- ture as commissioning of each element has been completed and handed over by the construction team. “The pouring of first gold at Sissingué is an important milestone for Perseus on sev- eral levels,” comments Jeff Quartermaine, MD and CEO of Perseus. “Apart from the fact that our second producing mine, and our first mine in Côte d’Ivoire, is now operational ahead of schedule and on budget, the achievement of this milestone provides Perseus with a second cash flow stream and reduces the company’s reli- ance for income on our first mine, Edikan in Ghana. “The almost faultless execution of our development plan also confirms Perseus’s capacity to successfully develop gold projects in West Africa. This is particularly relevant in the context of our plans to start development of our third gold mine at Yaouré, also in Côte d’Ivoire, later this year. “We have a proven, ‘match fit’ develop- ment team that is ready and able to transfer their extensive knowledge and experience gained on the Sissingué development to theYaouré development, thereby reducing the ‘development risk’ associated with this important project.“ 

A recent view of the Sissingué site (photo: Perseus).

February 2018  MODERN MINING  5

MINING News

Tsodilo’s DMS treatment plant. It is located just outside the town of Letlhakane (photo: Tsodilo). Sorter recovers diamond from BK16 tailings material

ments being made to the DMS section with special attention been given to the cyclone and prep-screens. The tailings material continues to be utilised for this final calibration and once the plant is fully optimised the processing will switch over to the LDD samples. “It is exciting to see everything coming together and although we still have a bit to go to fine tune the recovery process it is good to know that we are recovering diamond and now we just need to get everything going at 100 % efficiency,” says de Wit. 

In an update on its BK16 kimberlite pro­ ject in Botswana, Tsodilo Resources, listed on the TSX-V, says that evaluation activi- ties have resumed after the festive season holiday break. The BK16 kimberlite project is located within the Orapa Kimberlite Field (OKF) in Botswana. The diamondmines in Botswana have produced an average of 27 million carats annually over the last 10 years and Botswana is the world’s largest producer of diamonds by value. In 2016, the OKF area – home to mines such as Orapa and Karowe – produced 8,85 million carats. The diamondiferous BK16 kimberlite pipe is approximately 6 ha in size at surface and is known to contain rare and valuable Type IIa diamonds. The POLUS-M sorter was installed at Tsodilo’s secure facility in Maun, Botswana during the second week of 2018 and the first diamond was recovered during the setup, calibration and instruction period. Installation and training was performed by personnel from Bourevestnik, Inc’s offices in Germiston, South Africa. Historic tailings material which was first processed through the company’s DMS was used for the sam- ple material. The diamond was recovered in the plus 1 and minus 3 mm fraction.  “BK16 is known to be diamondiferous so diamond recovery is expected but the significance of this recovery from tail- ings and waste that have been sitting for almost 20 years clearly indicates what we have said before – that the rotary plant which was employed in the previous eval- uation was inefficient in the recovery of diamonds and reported grades were most likely understated,” comments Dr Mike

de Wit, President and COO of Tsodilo. The POLUS-M sorter, designed to treat dry diamond concentrate in the field in order to carry out geological exploration of diamond deposits, will treat the -8 mm fraction at Tsodilo’s facilities while the plus 8 mm material is currently planned to be hand sorted at the Diamond Technology Park in Gaborone, Botswana although the company is exploring avenues to obtain the use of a larger BV machine to treat this fraction. The refurbishing of Tsodilo’s DMS treatment plant is ongoing with adjust-

A POLUS-M sorter has been installed at Tsodilo’s secure facility in Maun (photo: Tsodilo).

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MINING News

Loulo-Gounkoto heads for a record performance

Randgold Resources’ Loulo-Gounkoto gold mining complex in Mali is on track to improve on its record performance in 2016, with last year’s production expected to reach a new peak and at lower cash costs of production, Chiaka Berthe, the company’s General Manager of its West African operations, said recently. Speaking at the quarterly update for local media, Berthe said this positioned the complex strongly to continue roll- ing out its 10-year business plan, which targets production in excess of 600 000 ounces per year. Berthe announced that the Malian Ministry of Mines had approved the devel- opment of a super pit at the Gounkoto opencast mine. The existing mining convention is being reviewed to accom- modate this new investment. Also at the briefing, Randgold Chief Executive Mark Bristow said the company’s continuing investment in Mali had shown the way for others to follow, and the cur- rent development of new mines would bring additional production on line and increase the already considerable contri- bution the mining industry makes to the country’s economy. Mahamadou Samake, Group Regional Manager West Africa, also highlighted the importance of maintaining a fiscal and reg- ulatory environment capable of attracting investment and re-investment in the min- ing sector. “It is therefore imperative that the cur- rent mining code review is undertaken with this objective in mind, and any pro- posed changes should be made in light of the code’s relative attractiveness com- pared to surrounding countries which are competing for the same exploration and investment dollars. This is particularly important in coping with the challenges inherent in developing and operating a mine in an infrastructurally challenged country like Mali, and the difficulty of find- ing replacement reserves. The government should focus on working with the industry to maintain Mali’s position as one of the premier destinations for mining invest- ment in West Africa,” Samake said. Bristow also appealed to Mali to consult with its neighbours in finding a cross-bor- der solution to the growing problem of illegal mining. In some parts of Mali this

Randgold’s Loulo mine, part of the Loulo-Gounkoto mining complex (photo: Randgold).

He noted that Randgold and the Malian fiscal authorities were working together to resolve their outstanding tax and TVA issues. 

was now out of control, he said, and the damage to property and resources, if it was allowed to continue, would discour- age global investors.

GoldStone considers reopening historic mine AIM-listed GoldStone Resources has announced that, as part of the review of historical data, the company has initiated a project to potentially revitalise the old Akrokeri underground mine in Ghana.

contact of a suite of greywackes/phyllites and the Akrokeri granite. Two drilling campaigns were undertaken by Birim Goldfields in 1996, comprising nine diamond drill holes totalling 2 000 m, and Pan African Resources in 2008, com- prising 10 diamond drill holes totalling some 3 200 m. These holes were located north and south of Akrokeri town along the known quartz vein. From the historic data, it is recorded that the drilling encoun- tered unknown narrow high-grade quartz veins within the granite, with samples up to 51 g/t. This indicates the potential of a high-grade deposit within the entire con- tact zone (both within the sediments and the granite). The review of data and assets in 2017 highlighted that the core was incomplete in the company’s core shed housed at site. GoldStone has managed to locate the entire 5 200 m of core drilled by Birim and Pan African Resources and has relocated it to its core shed. Re-logging is currently underway and, if appropriate, further assaying of the core may be undertaken. 

Goldstone is developing the Homase/ Akrokeri gold project. The Akrokeri licence sits adjacent to the eastern boundary of the Obuasi licence and is host to the old under- ground mine. According to GoldStone, the Ghanaian Minerals Commission has records indicat- ing that the Akrokeri mine produced some 75 000 ounces of gold between 1904 and 1909, from about 104 000 tons (94 347 tonnes) of ore, equating to a recovered grade of about 0,73 oz/t, equivalent to 24 g/t. However, the mine closed in 1909, due to a high inflow of water. The mine was developed from two shafts 1 400 feet (426,7 m) apart, to a maximum depth of some 500 feet (152,4 m) vertical. The gold-bearing quartz vein was recorded as being about 4 feet (1,2 m) in width and produced free-milling, non-refractory ore. It is situated within the sediments near the

February 2018  MODERN MINING  7

MINING News

Alphamin upbeat on Bisie tin project The portal to the underground mine at Bisie. This photo was taken when ‘Modern Mining’ visited the site in October last year (photo: Arthur Tassell).

economy and bringing increased prosper- ity and governance to the people of North Kivu, whilst providing its shareholders with exceptional returns,” he adds. Bisie will produce on average 9 642 tonnes of tin per annum, at a cash cost of US$8 837 per tonne of tin produced and US$10 359 per tonne tin sold after duties, royalties, levies and marketing fees, gener- ating an average EBITDA of approximately US$110 million per annum. The project has a payback period of less than two years. Alphamin estimates it will be in the lowest cost quartile of all tin producers. According to Richard Robinson, Managing Director of Alphamin Bisie Mining (ABM) in the DRC, the project has been a catalyst for regional economic growth and holds more positive prom- ise for years to come. Alphamin has committed to spending 4 % of its in-coun- try operating and administrative expenses on community development. “This investment will be governed with representative input from local communi- ties and managed by the Lowa Alliance, a GDRC-regulated, not-for-profit foundation. Alphamin is implementing community projects, supported by the Alliance, which have been selected following an in-depth survey of the 13 500 households (approxi- mately 80 000 residents) across the 44 communities closest to Bisie. Alphamin will continue to preserve its legal rights to develop the ABM project and explore ways to assist artisanal miners to transition from illegal to legal status, conflict-free sites elsewhere in the region,” says Robinson. 

both an extraordinary financial return in a particular project and a whole host of developmental returns in the surround- ing region and in the country in particular,” comments Boris Kamstra, CEO of Alphamin Resources Corp. “Once Alphamin starts generating cash, it will retain some money to further its exploration activities. Ultimately, it is believed that this region can produce tin for well over 30 years. Alphamin will be written in the annals of mining and development through bringing Bisie into production, catalysing North Kivu’s and dedication of the team that the same group who founded the company in 2009 has overseen the entire development pro- cess from a greenfields discovery at Mako in late 2011 to first gold in six years,”he con- tinues. “We are proud of our track record of consistently meeting or exceeding our development targets over this period against a backdrop of challenging market conditions. “Russell White, Project Manager, sup- ported by his construction group, has achieved a remarkable result in not only delivering the Mako project ahead of schedule and under budget, but also doing so in a safe manner with project safety sta- tistics significantly bettering the national Australian standards over the 3,6 million man hours worked at the site.” 

In its latest update on its Bisie tin project in the DRC’s North Kivu Province, Alphamin Resources Corp, listed on the TSX-V, says it is happy with the progress being made with the project on track to deliver accord- ing to the mapped schedule. Production is expected to commence in 2019 with steady state operation being achieved towards the end of the year. “Alphamin is all about unlocking one of the richest tin deposits in the world and then – as a consequence – the entire North Kivu region of the DRC. This is a very rare opportunity where you have

Mako in Senegal starts producing gold Toro Gold, a private gold exploration and development company, has announced that first gold has been poured at its Mako mine in eastern Senegal. The mine is owned and operated by Petowal Mining Company SA, and a pour of 1 325 ounces (41,2 kg) was completed on 26 January 2018, which is approximately two weeks ahead of the planned date in the construction schedule. The company is now focused on implementing the continued ramp up of operations to achieve steady state commer- cial production through the first half of 2018. “We are delighted to be able to announce this significant milestone for the company both ahead of schedule and under budget,” comments Martin Horgan, Toro’s Chief Executive Officer. “It is a testament to the professionalism

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MINING News

Gamsberg zinc project remains on track In its production and financial results for the third quarter ended 31 December 2017, Vedanta Resources says that the US$400 million Gamsberg zinc project in the Northern Cape is on track for first pro- duction in mid-CY2018, with a 9-12 month ramp up to full production of 250 kt/a of zinc in concentrate. Discovered more than 40 years ago and held undeveloped in the asset port- folios of various mining companies, Gamsberg was acquired from Anglo American by the Vedanta Group in 2011. Its development is well timed to feed into a global supply-demand gap and forms part of Vedanta’s commitment to the development of the region.

ABM starts on cobalt exploration in the DRC

AIM-quoted African Battery Metals (ABM) has begun the exploration programme at its recently acquired cobalt-copper proper- ties in the DRC. As announced in December 2017, ABM (previously Sula Iron and Gold) has acquired the rights to 70 % of a cobalt- copper licence in the DRC called Kisinka and an option over a second licence called Sakania. Kisinka, which is situated within 30 km of Lubumbashi, the regional capital, is close to seven existing large cobalt-copper mines and numerous small-scale opera- tions. It lies on the Roan, the geological sequence which hosts most of the DRC’s cobalt and copper, and is currently being mined by small-scale mining operations selling cobalt and copper concentrate to local smelters. A number of grab samples have been collected from the small-scale miners’ pits on the Kisinka cobalt licence by an inde- pendent geologist, who has reported grades of up to 2,5 % cobalt from a Niton XRF field analyser (the standard equipment used in the field for such analysis). The programme will also seek to con- firm the cobalt prospectivity of the second cobalt licence, Sakania, with a view to determining whether ABM should exercise its option. Roger Murphy, Chief Executive Officer of ABM, commented: “Our initiative into cobalt marks a significant step towards the company’s transition into the battery metals space. This is an area that is driven by an increasing global commitment to more efficient and environmentally sus- tainable energy usage, especially in the automotive industry.” 

The company says that 70 % of the pre- stripping has been completedwith a record 12,3 million tonnes of waste excavation in the quarter, in line with the plan. Some 500 kt of ore stockpile is targeted ahead of first feed. Construction of the concentrator is well underway, with the ball mill shell and crusher mechanical erection completed in Q3 FY2018. Power and water pipeline infra- structure is around 90 % complete. Cold commissioning of the concentrator plant is expected in Q1 FY2019.

Gamsberg has a large reserve and resource of 214 Mt, with an average grade of between 6 and 6,5 %, and an estimated life of mine (LOM) of 30 years. In Phase 1, which has a LOM of 13 years, 4 Mt/a of ore will be produced from Gamsberg’s open pit. The project, located about 30 km from Aggeneys, is being developed by Vedanta Zinc International ( VZI), part of the London-listed Vedanta Group. 

A recent view of the Gamsberg concentrator under construction (photo: Vedanta Zinc).

February 2018  MODERN MINING  9

MINING News

Cardinal completes PEA on Namdini

bility studies. Development capital costs range from US$275 million to US$426 million. In addition, consideration is being given to a phased approach to the development of Namdini, commencing with a 4,5 Mt/a throughput that would be designed for expansion to a higher throughput. Dependent upon the eventual produc- tion scenario chosen, average annual gold production ranges from 159 000 oz/a up to 330 000 oz/a at all-in sustaining costs from US$701/oz to US$794/oz. The target Life of Mine pit includes 91 Mt at 1,1 g/t for 3,3 Moz (81 %) of indicated mineral resources and 22 Mt at 1,1 g/t for 0,8 Moz (19 %) of inferred min- eral resources at a 0,5 g/t cut off using the September 2017 mineral resource esti- mate data. Value enhancement opportunities have been identified and will be considered by the technical team as part of the Pre- Feasibility Study that has now commenced. “Given the scope of detailed investiga- tions that have been performed leading up to the preparation of the Preliminary Economic Assessment, the outcomes present a strong case on both technical and economic grounds for proceeding to the development of our Namdini project in Ghana,” comments Archie Koimtsidis, MD and CEO of Cardinal. “Highly accredited global firms includ- ing Golder Associates, Lycopodium, Knight Piesold and Oreway Mineral Consultants were engaged to perform engineering and cost estimation for this study. They are all well-positioned to assist Cardinal through the next study and development phases of the Namdini project given their past and recent experience in consulting on successful project developments in West Africa.”  of their key coal assets in the Belfast area,” explains Alistair Hodgkinson, Senior Vice President at DRA. “This latest partnership allows DRA the opportunity to showcase our vast experience in successfully implementing large-scale coal projects and the added value we can offer our clients on any project.” Work on the project starts immedi- ately and is expected to be completed in October next year. 

The Namdini project is located in the far north of Ghana, well away from the traditional gold- producing areas in the south of the country.

Cardinal Resources, listed on the ASX and TSX, has announced the results of a Preliminary Economic Assessment (PEA) of the Namdini gold project in Ghana, West Africa. According to Cardinal, the PEA confirms Namdini to be a technically and financially robust low-cost mining opportunity, with the potential to gener- ate strong positive cashflows. Development is based upon a large, single open pit with ore treatment in a

conventional SAG mill, flotation and CIL circuit. However, a higher-grade starter pit yielding more than 1 Moz of gold with a strip ratio of less than 0,9 has been identi- fied for which further optimisation will be performed in the next study phase. The PEA evaluated three production throughput rates of 4,5, 7,0 and 9,5 Mt/a and all resulted in strong returns. The preferred scale of development is to be selected following completion of feasi- stacker conveyor. The plant will produce both a domestic and an export product. “We are excited to partner once again with such a prestigious organisation. The quality of our engineering designs in the earlier project phases, as well as our competitive pricing and well-established reputation in coal projects, ultimately secured us the work when Exxaro embarked on a campaign to develop one

DRA secures contract for Belfast coal plant Global engineering firm DRA has secured a contract with Exxaro Coal Mpumalanga, a subsidiary of JSE-listed Exxaro Resources, to construct a 500 t/h coal handling and preparation plant in Belfast, Mpumalanga. The coal handling and preparation plant consists of primary and secondary sizing stations, an overland conveyor, two 7 500-t silos, lowgravity and high gravity DMSmod- ules, a thickener circuit, a filter plant and a

10  MODERN MINING  February 2018

MINING News

Minergy heading for AIM listing Botswana-based emerging coal mining company, Minergy Limited, has announced its intention to list on the UK’s Alternative Investment Market (AIM) in the latter part of this year. Minergy owns 100 % of the 390 Mt Masama coal project in the Mmambula coalfield in south-west Botswana, 50 km north of Gaborone. An opencast, low strip ratio mine is currently in the plan- ning phase, with the potential to produce 2,4 Mt/a of coal within a year after opening. The company will focus on delivering high quality coal to the regional market, including Botswana and South Africa, and entering the international seaborne thermal coal export market. In April 2017, Minergy listed on the Botswana Stock Exchange (BSE), and has raised BWP 100 million (£7,5 million) through private placements. To date, it is the first and only coal mining company listed on the Main Board of the BSE. The management team at Minergy has significant mine develop- ment and operational experience with a wide range of expertise in coal mining, marketing, sales and distribution and energy markets across Africa and internationally. The executive management team includes CEO Andre Boje and CFO Morné du Plessis, supported by a senior mining engineer. Boje has more than two decades of experience in the South African coal industry, having previously founded Chandler Coal in 1997, a company which was listed on the JSE asWescoal Holdings (Wescoal) in 2005. During his ten-year period as CEO, he developed Wescoal from a small coal marketing company into a full-scale junior coal miner through various acquisitions and the opening of a number of new coal mines, resulting in a significant increase in shareholder value. Boje commented: “I am delighted to announce our intention to list on AIM later this year. AIM is the natural home for an ambitious com- pany looking to raise long-term equity finance to fund future growth. Listing on AIM will enable us to reach our full potential with the Masama coal project, alongside our commitment to the development of the coal mining, marketing and distribution industry in Botswana.” Minergy expects that following the approval of the mining licence, it will commence the opening of the boxcut in July 2018, with the first saleable coal from Masama available in Q4 2018.  Prestea achieves commercial production Golden Star Resources, listed on the NYSE American, the TSX and the Ghanaian Stock Exchange, reports that commercial produc- tion has been achieved at its Prestea underground gold mine (Prestea Underground) in Ghana. The project construction of Prestea Underground, including the installation of all ancillary infrastructure, is complete and operational and gold production is anticipated to continue to ramp up during 2018. The West Reef orebody of Prestea Underground has proven and probable mineral reserves of 1,09 Mt of gold at 13,93 g/t gold. Exploration drilling is underway at the mine with the objec- tive of increasing the annual production rate and extending the mine life. Full year 2018 production guidance for the Prestea complex (including Prestea Underground and the Prestea Open Pits) is 93 000 to 113 000 ounces of gold at a cash operating cost per ounce of US$740 to US$880. 

February 2018  MODERN MINING  11

MINING News

View of the Liqhobong plant. The mine is located in the highlands of Lesotho (photo: Firestone).

Solid production by Liqhobong

same time offering optionality of taking advantage of the longer life of mine should the average diamond values increase or should there be an improvement in mar- ket conditions. The revised plan is over a shorter nine-year period and involves the strip- ping of 76,0 million fewer waste tonnes. According to Firestone, a far more rep- resentative area of the pit will be mined over the next 18 months, which should improve the likelihood of recovering higher quality stones and, in turn, provide a truer representation of diamond quality and pricing than has been possible from production to date.  JORC resource – were observed during a site visit to Mothae by Lucapa representatives, advisors, brokers and investors following the Mining Indaba in Cape Town. The larg- est of the diamonds recovered in the first test run was 6,6 carats. The BSP is designed to provide addi- tional resource and diamond data to expand the life of mine, while also generat- ing early cash flows. Construction of the new 150 t/h processing plant, including an XRT large- diamond recovery circuit, continues and remains on schedule for full commissioning and commercial production in H2 2018. 

AIM-listed Firestone Diamonds reports that its new Liqhobong mine in Lesotho treated 963 213 tonnes of ore, which was just ahead of budget, during the quarter ended 31 December 2017 (Q2 of Firestone’s financial year), which resulted in the recovery of 180 709 carats, which was slightly lower than the figure for Q1. The overall grade was 18,8 cpht. Costs reduced to US$11,60 per tonne treated despite adverse exchange rate move- ments. A total of 156 942 carats was sold in the quarter, realising US$12,5 million at an average of US$80 per carat (Q1: US$69 per carat). The mine’s zero lost time injury record was maintained during the quarter with over 5,3 million man hours having now been worked since project commence- ment in July 2014. “Mine production for the quarter has been very solid, with yet another quarter- on-quarter increase in tonnes treated since the mine was commissioned,” comments Stuart Brown, CEO of Firestone. “The aver- age value per carat achieved improved on the previous quarter, while the sale held in December was stronger than the first sale earlier in the period. There is cautious optimism on diamond pricing in 2018 after positive initial year-end retail numbers out of the US and China.

“Despite the recovery of fewer carats in the period, grades are expected to improve in the second half as mining moves to higher grade areas of the pit.” During the quarter, 80 special stones (plus 10,8 carats) were recovered com- pared to 45 in Q1. This was pleasing, says Firestone, although, overall, the aver- age quality remained somewhat below expectation. Firestone recently announced a revised mine plan for Liqhobong. The objective of the plan is to deliver the best returns in the medium term at low risk whilst at the

First diamonds recovered at Mothae project Lucapa Diamond Company, listed on the ASX, has reported the first diamond recover- ies fromMothae kimberlite mine in Lesotho. Lucapa has a 70 % stake in the mine with the Government of the Kingdom of Lesotho holding the balance.

The diamonds were recovered through the existing bulk sampling plant and infrastructure at Mothae, which has been refurbished ahead of schedule, as part of the previously announced bulk sampling programme (BSP). The initial diamond recoveries – sourced from residual material and kimberlite stock- piles that are not included in the Mothae

February 2018  MODERN MINING  13

MINING News

subsidiaries in Madagascar), has now been transferred to the company. Base Resources will acquire the remain- ing 15 % interest, with a further US$17 million payable on achievement of key milestones as the project advances tomine development. “The Toliara Sands project is a trans- formational acquisition and represents a significant step in execution of the company’s strategic plan,” comments Tim Carstens, Managing Director of Base Resources. “We are excited to now proceed with the development of what we consider to be one of the very best mineral sands projects in the world. The strong sup- port demonstrated by institutional and retail shareholders, as well as the Base Resources management team, through participation in the capital raising reflects a shared enthusiasm.” The Toliara Sands project is under- pinned by the Ranobe deposit which has a JORC 2012 resource of 857 Mt at 6,2 % heavy minerals in the measured and indi- cated categories. Building on the work completed to date, Base Resources’development plan is to complete a full study phase ahead of a decision to proceed to construction in the second half of calendar 2019. This time- table could be expected to see the Toliara Sands project in production in mid-2021. Base Resources’ wholly-owned sub- sidiary, Base Titanium Limited, operates the 100 %-owned Kwale Mineral Sands Operations in Kenya, which commenced production in late 2013. Kwale is located 10 km inland from the Kenyan coast and 50 km south of Mombasa, the principal port facility for East Africa. 

Base Resources, which already owns the Kwale Mineral Sands Operations in Kenya (seen here), has acquired the Toliara Sands project in Madagascar (photo: Base Resources). Toliara Sands transaction completed

Base Resources, listed on the ASX and AIM, reports that the Toliara Sands project acquisition has now been completed. With payment of the US$75 million up-front consideration by Base Resources,

the initial 85 % interest in the wholly owned Mauritian subsidiaries of World Titane Holdings, which between them hold a 100 % interest in Toliara Sands in Madagascar (held through wholly owned

Strandline secures offtake agreement ASX-listed Strandline Resources reports it has taken a major step towards bringing its first mineral sands project into produc- tion, securing a binding offtake agreement for 100 % of the zircon-monazite product which will be produced at its Fungoni min- eral sands project in Tanzania.

DFS (announced to the market in October 2017), the zircon and monazite produc- tion is expected to generate over 62 % of Fungoni’s total revenue. The remaining project revenue is expected to be from chloride ilmenite (approximately 28 %) and rutile (approxi- mately 10 %), for which offtake agreements are well advanced. Strandline says Fungoni’s high unit value orebody assemblage and low costs under- pin outstanding financial returns, with a fast payback period of 2,7 years from the start of construction and a first quartile revenue-to- cost ratio of 2,7. 

The agreement – says Strandline – is with China’s highly-respected, industry-lead- ing zircon sand and rare earth consumer, Hainan Wensheng High-Tech Materials Company Limited (Wensheng). Based on the pricing formulae contained in the agreement and otherwise using the assumptions contained in the Fungoni

14  MODERN MINING  February 2018

MINING News

Flow of big stones at Lulo continues

Lucapa Diamond Company, listed on the ASX, and its partners, Endiama and Rosas & Petalas, have announced the recovery of more large diamonds from the Lulo dia- mond project in Angola.

Selection of Lulo diamonds from the first sale parcel for 2018 (photo: Lucapa).

The latest recoveries include a 116-carat low-quality diamond and a 43-carat yellow gem, both from Mining Block 8 at Lulo. The 43-carat yellow is the largest coloured gem-quality diamond recovered to date from Lulo, surpassing the 39-carat pink recovered in September 2016. The 116-carat stone was recovered through the XRT large-dia- mond recovery circuit installed at Lulo in late 2016. It is the tenth plus 100-carat diamond recovered to date from Lulo and the second plus 100-carat recovered within the first three weeks of 2018. Though a low-quality boart stone, the 116-carat diamond contin- ues to underline the special large-stone nature and potential of the Lulo diamond project. Lucapa and its partners recently completed the first sale of 2018 of alluvial diamonds from Lulo. The sales of 4 170 carats achieved gross proceeds of US$9,14 million, representing – says Lucapa – an excep- tional average price per carat of US$2 192.  Eight years and US$2,5 billion after Randgold Resources started devel- oping Kibali, the giant gold mine is expected to be in full production this year following the successful commissioning of its underground operation’s integrated automated ore handling and hoisting system. Randgold Chief Executive Mark Bristow told journalists in Kinshasa recently that the mine was on track to produce its targeted plus 700 000 ounces of gold in 2018, making it one of the largest of its kind in the world. Its high level of mechanisation, which features multiple driverless loaders operating with full automation as well as a single haulage drive with a high-strength surface, is believed to be a first for the gold mining industry in Africa. “The past quarter has been a particularly busy one for Kibali. In addition to completing the underground haulage and hoisting sys- tem, the team has settled the processing challenges, improving the recovery while keeping throughput above the plant’s nameplate design level. At the same time, the mine’s conversion to the latest ISO 14001:2015 environmental standard was successfully certified and it readied itself for alignment with the new, and yet to be published, ISO 45001 safety standards,” Bristow said. “All that now still remains to be done is to ramp-up the under- ground production and complete the construction of Azambi, Kibali’s third new hydropower station, which is scheduled to be plugged into the grid by the middle of this year.” Bristow noted that with development expenditure tapering off, Kibali should now be in a position to start repaying its capital loans.  Kibali gold mine on the verge of full production

February 2018  MODERN MINING  15

MINING News

ChromTech Holdings, the South African mine-to-market chrome producer estab- lished in 2006, has announced the completion of its R230 million chrome tailings retreatment plant at platinum producer Lonmin. ChromTech brings on line tailings retreatment plant This is the sixth chrome recovery plant that ChromTech has successfully designed, constructed, commissioned and operated in the last 12 years. The tailings retreatment plant was completed on time and under budget

day. Edenville is therefore in a position to process 8 000 to 10 000 tonnes of mined material per month. Edenville intends installing both a Lamella water treatment system and pre- screen technology to improve the overall efficiency of the plant. The Lamella water treatment system will remove mudstone and coal fines from the water, provid- ing the plant with cleaner water, and the pre-screen technology will pre-screen the mined material, removing coal fines before they reach the wash plant. Once implemented, hourly produc- tion rates should increase to 80 to 100 t/h, thereby bringing operational costs per tonne back in line with management expectations, in parallel with the plant reaching its full production capacity. Edenville repor ts that it contin- ues to work with its partner, Sinohydro Corporation of China, to progress its coal-to- power project. Sinohydro’s representatives have completed their pre-feasibility and economic assessment work and remain very supportive of the project.  following a 12-month construction period. The project is part of Lonmin’s larger US$50 million bulk tailings project designed to re-mine and process UG2 tail- ings material. Steady state at the ChromTech plant is expected to be reached by March 2018 with production of around 35 000 tonnes of saleable chrome concentrate per month. Some 60 permanent jobs will be created by this venture, the bulk of which will be recruited from the local community. ChromTech will market the prod- uct through its own logistics and sales infrastructure, which is consistent with company strategy to maximise value throughout the chrome value chain. Says ChromTech CEO Craig Bennett: “Our focus on safety and disciplined strategy execu- tion is yielding excellent results. We are pleased to be creating value throughout the commodity cycle for all stakeholders involved in the project.” On a further positive note, the com- pany says it is growing an exciting project pipeline, with the synergies from the development of its Bleskop railway sid- ing expected to unlock further value for itself and chrome companies in the surrounding area. 

The new R230 million chrome tailings retreatment plant.

Edenville to mine Namwele deposit in Tanzania Edenville Energy, the AIM-listed company developing a coal project in south-west Tanzania, says that since the start of com- mercial coal production in October 2017 it has been refining all aspects of the operation and selling coal to commercial customers.

that the first Namwele coal will be mined before the end of Q1 2018. Coal quality, in terms of both calo- rific value and ash content, is exceeding management’s initial expectations when mining commenced. Both the raw mined and processed coal has been extensively tested and has returned values that meet customers’ requirements. “Recent results from our on-site labora- tory have given encouraging calorific values for Mkomolo, including 6 734 GCV (Gross Calorific Value in kcal/kg) on an air-dried basis, correlating with previous results from December 2017. Additionally, and of par- ticular note, is the energy value contained in our raw coal fines material (material gen- erally less than one sixteenth of an inch in size), recently testing at 4 753 GCV on an as-received basis,” says Edenville. The company’s wash plant and associ- ated equipment is currently running at a throughput of 30 to 40 t/h, operating six days a week for eight to 10 hours a

According to the company, its mining operations are proceeding as anticipated, with high quality near-surface coal being extracted from the Mkomolo deposit. Mining operations have been able to keep pace with demand and plant capacity despite the seasonal heavy rains. Edenville says that to help fulfil the demand for coal it is experiencing and to potentially increase the amount of unpro- cessed coal it can sell, it has taken the decision to also start mining the Namwele deposit. Namwele, which sits to the south of the Mkomolo deposit, will be mined by Edenville’s Tanzanian partner, Upendo Group Ltd. Upendo has already started clearing the overburden and it is expected

16  MODERN MINING  February 2018