Modern Mining January 2016

MINING News

Weatherly contemplates expanding Tschudi project

AIM-listed Weatherly International has pro- duced an updated JORC (2012) reserve and resource update for its Tschudi copper mine in northern Namibia. The company has also provided updated mining and processing schedule options for a potential low-cost expansion of Tschudi to produce 20 000 tonnes of copper cathode per annum. According to the update, Tschudi has ore reserves of 24,4Mt at 0,85%copper for 214 000 tonnes of contained copper metal after mining depletion of 8 000 tonnes. This is an increase over the previous reserve estimate of 215 650 tonnes contained copper before mining commenced. Weatherly says the increase in contained copper despite lower copper prices being used for the reserve update exercise indicates the robustness of the reserve to the significant decrease in copper price. Regarding the mining operation, pit opti- misation work has decreased the strip ratio by 10 % from 7,5:1 (waste to ore) to 6,5:1. Weatherly has also issued updated C1 cash costs. The LOM C1 costs are expected to be reduced by 9 % to US$3 865 per tonne of cop- per cathode while current FY2016 C1 cash costs are projected to be in the range from US$4 250 to US$4 350 per tonne. Elaborating on the potential expansion of Tschudi, Weatherly says it has identified Mining contractor wins major award MCC, the contract mining and plant rental division of Eqstra, has been awarded a sig- nificant new contract with Sedibelo Platinum Mines. The five-year contract commences in April 2016 with a value of R4 billion. The proj- ect will utilise an initial R150 million worth of standing equipment. “This is a significant win for us given the current environment facing the commodity sector and the pressure this has placed on mining firms,” comments Justin Colling, Chief Executive Officer of MCC.“I believe our unique approach to shaping our contracts to our cli- ents’ needs and partnering with them during these demanding times allows us to deliver the best possible results.” The contract increases MCC’s order book to approximately R15 billion. This also reduces the division’s excess assets to less than 10 % of its total asset base. 

an opportunity to increase processing capacity from 17 000 to 20 000 tonnes per annum of copper cathode. Expenditure of approximately US$1,2 million would be required for such an expansion of the processing facilities. This would be required for increased solution pumping capacity, replacement alter- native-technology mixers in the solvent extraction plant, and various components of the site electrical systems. Life of mine scheduling work for such

a scenario indicates reduced unit costs over the life of mine due primarily to certain costs remaining fixed despite the output volume increase. Life of mine operating cost savings obtained from operating at 20 kt/a instead of 17 kt/a are currently esti- mated at approximately US$10,6 million. Weatherly will now undertake further detailed work to support any potential investment decision, as well as evalua- tion of funding options. 

January 2016  MODERN MINING  11