Modern Mining January 2019

January 2019 Vol 15 No 1 www.crown.co.za M ODERN MINING

IN THIS ISSUE… AFRICA’S TOP MINING PROJECTS „ Cullinan plant „ Gamsberg zinc project „ Venetia Underground Project (VUP) „ Nokeng fluorspar „ Asanko’s Project 5 Million

ADVERTORIAL

EVENTS

January 2019 _ MODERN MINING _ 1

MODERN M I N I N G

CONTENTS

JANUARY 2019

ARTICLES

COVER 20 WorleyParsons puts the power of data to work EVENTS 25 Mining Indaba turns 25 FEATURE  AFRICA’S TOP MINING PROJECTS 29 Introduction 30 New Cullinan plant starts to deliver major savings 44 VUP on course to start delivering ore in 2021 48 Gamsberg in production and poised for expansion 56 Green for go at Nokeng fluorspar 60 Asanko’s Project 5 Million meets its target and more REGULARS MINING NEWS 6 Shaft 1 of Platreef project reaches another milestone 7 Rainbow announces maiden resource for Gakara 8 Roxgold completes Bagassi South project 9 Wassa Underground drilling delivers positive results 10 Scoping study confirms“robust”first phase for Prieska 11 Oklo deploys four rigs at Malian gold projects 12 Balama achieves commercial production 13 Paladin examines optimisation of Langer Heinrich 14 Sublevel cave ore production starts at Syama 15 Galane Gold places orders for Galaxy upgrade 17 Lycopodium awarded Yaouré contract 18 Balama Central FS indicates“outstanding returns” 18 New Mothae plant recovers 78-carat white diamond 19 Sampling programme by Orca identifies large anomaly PRODUCT NEWS 66 Innovative sand washing plant from CDE 67 Chromium carbide plate provides“ideal”wear solution 68 Thin-skin liner stabilises Tweefontein highwall 68 Black Mountain Mining selects OptiMine® 69 SANY excavator acquired for strip-mining contract 70 Weba technology combats dust 70 JCH Platforms raises the bar in access rental

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

Darryl James Circulation Brenda Grossmann 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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Cover A processing plant designed by engineering and project delivery groupWorleyParsons for a customer in the platinum mining sector. The digital capabilities of WorleyParsons are explained in our cover story on page 20 of this issue.

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71 Topless tower crane for Great Noligwa 72 DustScrape suppresses conveyor dust

Average circulation (July–September 2018) 5072

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January 2019 _ MODERN MINING _ 3

COMMENT

Botswana’s troubled mining industry takes another hit

T he mining sector in Botswana has taken yet another knock with the news that the Mowana copper mine, located 120 km north-west of Francistown, has suspended op- erations and that the company that operates it, Leboam Holdings, is now under provisional judicial management. Leboam is 60 %-owned by Cradle Arc, which is listed on AIM (though trading in its shares is now suspended). While Mowana has not necessarily reached the end of the road, its performance last year after being re-opened in March was dismal. It failed to meet its targets and in October 2018 produced just 140 tonnes of contained copper compared to management’s original forecast of 392 tonnes. Mowana is a relatively new mine. I visited it in about 2007 when it was in the final stages of construction by its then owner African Copper and it appeared to be an impressive operation, with a brand new processing plant (designed and built by SENET) nearing completion and a very professional mining operation underway. Problems surfaced soon after the mine was commissioned in 2008 but it nevertheless man- aged to keep operating through to late 2015 when – hopelessly encumbered with debt and with the copper price weakening – it was finally forced to shut down. It was subsequently acquired by the present owners in a deal which was announced in late 2016. The suspension of operations at Mowana is the latest in a string of body blows suffered by Botswana’s mining industry over the past sev- eral years. These have included the closure of the Boseto copper mine of Discovery Metals in early 2015 (after it was opened with much fanfare in 2012), the collapse of nickel/copper producer BCL (and with it the mining and pro- cessing operations at both Selebi-Phikwe and Tati) in 2016, the demise of the Lerala diamond mine in 2017 and – in the same year – the plac- ing of the Ghaghoo underground diamond mine on care and maintenance. BCL was Botswana’s biggest copper pro- ducer but it seems unlikely that it will ever be resuscitated in any meaningful way. Quite apart from anything else, Russia’s Norilsk has a claim on some of the assets it owned (specifically Tati Nickel), which is enough to deter most poten- tial investors, and there is also reportedly a huge environmental liability which any pur- chaser would presumably have to take on. With Mowana now no longer producing (however modestly), Botswana currently has

zero copper production. The good news is that this could change over the next two to three years as there are two substantial copper mines on the near horizon, both in the Kalahari Copperbelt, a ‘corridor’ of copper/silver miner- alisation which stretches south-west from the Maun area to Ghanzi and beyond. As many readers will know, the two projects I’m referring to are the T3 project of Australia’s MOD Resources and the Khoemacau mine of US-based Cupric Canyon. Although no formal decision has been made by MOD on the development of T3, the com- pany is clearly intent on proceeding with the project. A feasibility study is due out in March this year for a 3 Mt/a open-pit mine, with the target production being 30 kt/a of copper. Assuming the study is positive and that fund- ing presents no problems, MOD is hoping to be in production by late 2020. T3 will probably beat Khoemacau – which will be an underground mine – into produc- tion. Cupric tends to maintain a low profile and releases very few updates on Khoemacau but it did advise in the middle of last year – at the Botswana Resource Sector Conference – that construction of a 3,6 Mt/a ‘Starter Project’ at its Zone 5 deposit would start in earnest in Q1 2019. The mine will cost approximately US$391 million to develop and it is envisaged that it will produce its first concentrate by Q1 2021. Annual production will be in the region of 60 kt of copper and 2 Moz of silver. Given the problems encountered by the Boseto mine (whose plant, incidentally, is now owned by Khoemacau Copper Mining and will be integrated into the Zone 5 Starter Project), one might ask why MOD and Cupric think they can succeed where Discovery failed. This is a story in itself and one could write reams on it but suffice it to say that one major difference is that both the T3 and Zone 5 mines should have access to grid power. Boseto, by contrast, had to rely on diesel gensets, with the fuel bill report- edly accounting for 35 % of operating costs. Boseto was the mine that arguably shook the faith of investors in the potential of the Kalahari Copperbelt. T3 and the Zone 5 mine could restore that faith and, in the process, re-estab- lish Botswana as a smallish but nevertheless significant producer of copper. If Mowana – which, incidentally, is not part of the Kalahari Copperbelt – can eventually be brought back on line as well, so much the better. Arthur Tassell

The suspension of operations at Mowana is the latest in a string of body blows suffered by Botswana’s mining industry over the past several years.

January 2019 _ MODERN MINING _ 5

MINING News

Shaft 1 of Platreef project reaches another milestone

on Shaft 1 will provide initial underground mining access to the high-grade orebody, enabling lateral mine development to pro- ceed during the construction of Shaft 2, which will become the mine’s main pro- duction shaft. The mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 m to 1 200 m below surface. Shaft 1’s 750-metre station also will allow access for the first raise-bore shaft, which will have an internal diameter of 6 m, to provide ventilation to the under- ground workings during the mine’s ramp-up phase. According to Ivanhoe, the thick Flatreef orebody at the Platreef project is ideal for bulk-scale, mechanised mining. As under- ground development progresses, the mine plan calls for the addition of large, mecha- nised mining equipment, such as 14- and 17-tonne load-haul-dump machines and 50-tonne haul trucks, to support the planned long-hole mining method. Ivanhoe indirectly owns 64 % of the Platreef project through its subsidiary, Ivanplats, and is directing all mine develop- ment work. The South African beneficiaries of the approved broad-based, black eco- nomic empowerment structure have a 26 % stake in the project. The remaining 10 % is owned by a Japanese consortium of ITOCHU Corporation; Japan Oil, Gas and Metals National Corporation; and Japan Gas Corporation. „

Miners on Shaft 1’s 750-m level (photo: Ivanhoe).

Ivanhoe Mines, listed on the TSX, announced in December that Platreef’s Shaft 1 had reached a depth of 850 m below surface and that development work had begun on the 850-m station – the second of three horizontal mining access stations planned for Shaft 1. The Platreef project is situated near Mokopane in South Africa’s Limpopo Province, adjacent to Anglo American Platinum’s Mogalakwena mine. The first mining access station has been constructed at the 750-m level, following earlier development of a water-pumping station at the 450-m level. The third min- ing access station will be developed at a mine working depth of 950 m. Shaft 1 is expected to reach its projected final depth of approximately 980 m below surface, complete with all four of the stations, in early 2020. The Platreef mining team delivered the first high-grade mineralisation from underground mine development to sur- face stockpiles for metallurgical sampling over three months ago. The high-grade mineralisation inter- sected in Shaft 1 is contained within two mineralised zones (T1 and T2) totalling 29 m of the Turfspruit Cyclic Unit (TCU). A total of 50 grab samples from individual 3,2-m-blast stockpiles yielded an average grab sample grade of 6,35 g/t platinum, pal- ladium and rhodium plus gold (3PE+Au), ranging up to 9,6 g/t 3PE+Au, as well as significant quantities of nickel and copper. The 29-m mineralised intersection in Shaft 1 yielded approximately 3 500 tonnes of ore that will be used for bulk-

scale metallurgical test work. Based on the estimated resource grade of the pilot hole for Shaft 1 (GT008), the 3 500 tonnes are expected to contain more than 400 ounces of platinum group metals (PGMs). In July 2017, Ivanhoe issued an inde- pendent, Definitive Feasibility Study (DFS) for Platreef covering the first phase of production at an initial mining rate of 4 Mt/a. The DFS estimated that Platreef’s initial, average annual production rate will be approximately 219 000 ounces of palladium, 214 000 ounces of platinum, 30 000 ounces of gold and 14 000 ounces of rhodium (combined 477 000 ounces of 3PE+Au), plus 21 million pounds of nickel and 13 million pounds of copper. The 750-metre and 850-metre stations

Platreef’s underground mine development team includes three members from local communities (from left): Nkone Madubana, learner sinker; Katlego Nkwana, learner sinker; and Caroline Dzivhani, geolo- gist. They recently became fully certified underground miners (photo: Ivanhoe).

6 _ MODERN MINING _ January 2019

MINING News

Rainbow announces maiden resource for Gakara

well be related to a carbonatite source. This deposit is open in all directions and is an extremely exciting prospect as it pres- ents a new opportunity for Rainbow to further develop its mining and processing capabilities. “These results will provide us with con- fidence in our ability to obtain near- and medium-term sources of ore, but more importantly point to the existence of a truly unique deposit, which we will con- tinue to explore in the future.” „

London-listed Rainbow Rare Earths, the rare earth element mining company, has announced a maiden Mineral Resource Estimate (MRE) completed in accordance with JORC (2012) in respect of its Gakara rare earths project in Burundi, which is Africa’s only producing rare earthmine. The MRE was prepared on behalf of Rainbow by Benzu Minerals. The resource totals over 1,2 Mt of ore covering a small fraction of the Gakara project – confirming for the first time the scale of the deposit, says Rainbow. Three areas (Gasagwe, Murambi South and Gomvyi Centre) are very high grade vein stockwork deposits and total 12 491 tonnes of total mineral resource at an aver- age Total Rare Earth Oxide (TREO) grade of 55 % (compared to average rare earth proj- ect grades of around 1-4 % TREO). Kiyenzi is a very large, lower grade mineralised deposit with nearly 1,2 Mt of mineral resource at an average grade of 2,2 % TREO employing a cut-off of 1 % TREO. Rainbow plans to rapidly bring Gomvyi Centre and Kiyenzi into production during 2019. “We are pleased to announce the ma i den JORC - comp l i an t M i ne r a l Resource Estimate for the Gakara proj- ect, on time and on budget,” comments Martin Eales, CEO of Rainbow. “The min- eral resource, which is based on only four out of the 28 identified targets within our licence, shows over 1,2 Mt of ore, a considerable deposit in its own right, and provides further evidence that the Gakara deposit is a world-class source of rare earth oxides. “Three of the areas are high-grade vein

stockworks, and include 12 491 tonnes of ore resource at 55 % TREO. These alone will provide over two years’ head feed for our planned ramp-up to 5 000 tonnes con- centrate, and we will of course continue to explore these deposits further. “The Kiyenzi deposit has been con- firmed as a very large, lower grade deposit, which ties in with the airborne and ground gravity results previously announced. The currently modelled deposit amounts to nearly 1,2 Mt of ore at 2,2 %TREO, and may

Drilling at the Kiyenzi deposit in 2018 (photo: Rainbow).

January 2019 _ MODERN MINING _ 7

MINING News

Roxgold completes Bagassi South project

Bagassi South where we expect to deliver approximately 150 000 ounces of gold from our Yaramoko operations in 2019.” The plant expansion increases capacity by nearly 50 % from 270 000 tonnes per annum (t/a) or 750 tonnes per day (t/d) to 400 000 t/a or 1 100 t/d. The expansion maintains the simple and robust design philosophy that was implemented origi- nally at the Yaramoko plant which has generated recoveries in excess of 98 %. The following upgrades were imple- mented to facilitate the additional throughput and gold recovery: a second- ary crushing circuit with a throughput of 100 t/h; conversion of the SAG mill to a ball mill; expansion of the CIL circuit, con- sisting of two extra adsorption tanks and an additional thickener; and expansion of the gravity circuit via an additional Acacia leach reactor and two electrowinning cells. Additional raw water storage and power reticulation infrastructure has also been provided. Mine development has commenced at Bagassi South with approximately 668 m of development completed as of the end of November 2018. As previously reported by Roxgold, first development ore was delivered to the ROM pad in October on schedule. „

Aerial view of the Bagassi South mine (photo: Roxgold).

Roxgold Inc, listed on the TSX, has announced that the Bagassi South project at its Yaramoko property in Burkina Faso has been completed approximately 10 % or US$2,8 million under budget and on

and under budget,” said John Dorward, President and CEO of Roxgold. “We are now looking forward to increasing pro- duction at Yaramoko and ramping up to full capacity at both the process plant and

schedule with the success- ful practical completion of its process plant expansion. Production from Bagassi South will supplement the existing 55 Zone under- ground mine at Yaramoko, commissioned in 2016. The Bagassi South mine, an underground opera- tion, will continue to ramp up during the first quarter of 2019; commercial pro- duction is expected to be achieved in the second quarter of 2019. “We have marked yet another significant mile- stone in providing growth and value to our share- holders with the successful completion of our inter- nally funded Bagassi South project, which has been completed on schedule

The expanded processing plant at Yaramoko (photo: Roxgold).

8 _ MODERN MINING _ January 2019

MINING News

Wassa Underground drilling delivers positive results

Canada’s Golden Star Resources (GSR), listed on the NYSE American and TSX, has reported further step out and infill drill- ing results from its Wassa underground gold mine (Wassa Underground) in Ghana, demonstrating the extension and robust- ness of the deposit. Positive assay results have been received from five new infill and step- out diamond drill (DD) holes at Wassa Underground. Step out drilling confirms gold mineralisation remains open at least 200 m to the south of existing inferred mineral resources while infill drilling con- firms the continuity of width and grade of mineralised areas. A new foot wall zone of gold miner- alisation has been identified. Significant intercepts include 10,4 m grading 11,9 g/t Au from 774,5 m, including 6,4 m grad- ing 16,2 g/t Au, in hole BS18DD393M; and 6,2 m grading 6,7 g/t Au from 944,0 m in hole BS18DD392D1 (drilled depth from wedge). “I am encouraged by the latest positive results from the Wassa Underground drill- ing programme,”commented SamCoetzer, President and CEO of Golden Star. “Our objective is to‘fill the mill’through defining additional mineral resources and utilising theWassa processing plant’s excess capac- ity and these latest results suggest that we are on track to achieve this goal. “The step out drilling results continue to confirm the extension of the Wassa Underground deposit to the south and the deposit remains open down plunge, which suggests further exploration upside potential. The infill drilling results also con- firm the previously recorded grades and widths of the deposit and we expect to

Portal of the underground mine at Wassa. The mine is located in south-western Ghana, approximately 40 km from the Prestea gold mine, also owned by GSR (photo: Golden Star).

upgrade a portion of Wassa’s inferred min- eral resources into the indicated category. “With our larger exploration budget as a result of the funds received from the investment by our new strategic inves- tor, we are focused on demonstrating the potential of this exceptional deposit and delivering compelling value for our shareholders.”

GSR announced in October 2018 the completion of a US$125million investment in the company by La Mancha Holding, a Luxembourg-incorporated private gold investment company. La Mancha, which is also a major investor in Endeavour Mining (which owns and operates several gold mines in West Africa), is now GSR’s largest shareholder. „

Base Resources granted prospecting licence Base Resources, listed on the ASX and AIM, has been granted a new prospecting licence in the Vanga area in Kenya (Vanga PL). The PL is valid for three years and covers an area of 136 km 2 , extending south-west from the company’s existing Kwale Operation towards the Tanzanian border. The PL was applied for following an airborne geophysi- cal and radiometric survey that identified a

series of promising exploration targets. “In the context of the current pursuit of mine life extension at Kwale Operations, the granting of the Vanga PL is a posi- tive and important step,” commented Tim Carstens, Managing Director of Base Resources. “Preparatory activities, ahead of a planned drilling programme in 2019, are underway.” „

January 2019 _ MODERN MINING _ 9

MINING News

Scoping study confirms “robust” first phase for Prieska

A scoping study on the Prieska zinc-cop- per project by Orion Minerals confirms a robust first phase with solid cash flow potential and a rapid payback of just three years from first production. Based on recently updated mineral resources, the scoping study confirms the potential for the project to become a significant near-term, low-cost, zinc and copper concentrate producer, while laying the foundations for future opportunities. “The study indicates solid operat- ing margins, with the peak funding of A$320 million inclusive of 20 % contin- gency, recovered within the first third of mine life, all supported by current indicated resources, yielding an NPV of A$420 million,” commented Errol Smart, Managing Director and CEO of Orion Minerals. Smart said the study identified impor-

tant opportunities for further financial upside, both from extending the life of mine, and from optimising the grade of extraction following further drilling to be conducted from underground. The ASX- and JSE-listed company recently updated its resource statement by increasing the total Deep Sulphide resource to 28,73 Mt grading 3,77 % Zn and 1,16 % Cu, with 18,51 Mt grading 3,60 % Zn and 1,17 % Cu upgraded to the higher-confidence indicated category. “We are very pleased to have com- pleted our resource upgrade that has confirmed what an exceptional deposit we have at Prieska. With nearly two-thirds of the resource now in the indicated cat- egory, we can present the case for the first 10 years of a very attractive mining opera- tion,” said Smart. The current Phase 1 scoping study has examined extracting only 75 % of the

total mineral resource at the mean min- eral resource grade. This would support a 2,4 Mt/a operation, producing about 70 to 80 kt of zinc and 22 kt of copper in concen- trates per annum. “The application of further mod- ernisation, making optimised use of low-cost available renewable energy, also provides an important cost saving oppor- tunity being investigated in depth by the Bankable Feasibility Study which is well advanced,” added Smart. The Bankable Feasibility Study is due for completion in Q2 2019. The Prieska project is located in South Africa’s Northern Cape Province, approxi- mately 290 km south-west of the city of Kimberley. The project area encompasses the historical Prieska copper mine, which was profitably operated by Anglovaal as an underground zinc and copper mine, exploiting the Copperton deposit, between 1971 and 1991. The mine processed on average 3 Mt/a (ROM) to produce a life of mine total of 1,01 Mt of zinc and 430 kt of copper in concentrates. Run-of-mine ore was treated by froth flotation to produce separate con- centrates of copper and zinc. Orion is now investigating the estab- lishment of new mining operations targeting the extraction of the remaining zinc-copper mineralisation at the Prieska VMS deposit. Mine-development studies are sched- uled for completion in the first half of 2019. DRA Projects South Africa is the lead con- sultant appointed to consolidate the BFS, part of which includes the design of the mineral processing plant. „ To mark the first blast at the Uis mine, AfriTin hosted a ceremony at site attended by Tom Alweendo, Namibia’s Minister of Mines and Energy, as well as other govern- ment officials, investors and analysts. “The Uis tin mine operated for over four decades and put Namibia on the global stage for tin production and created sig- nificant economic benefits to the Kunana region,”said Alweendo in a speech delivered at the ceremony.“It gives me great pleasure to see the work that AfriTin has undertaken and this momentous occasion of seeing tin production returning to Uis. We look for- ward to future increase to full production.” „

Longitudinal section of the Prieska project showing the positions of the mineral resources.

First large scale blast at Namibia’s Uis tin mine Following the start of the civil construc- tion works in June 2018, AIM-listed AfriTin Mining has been preparing and rehabili- tating the Uis mine site in Namibia for the commencement of Phase 1 pilot plant commissioning and production of tin concentrate.

tion and crushing circuit. In tandem with production activities, ongoing drilling to make the historic resource JORC compliant continues on schedule. Uis was formerly the world’s largest hard-rock tin mine. AfriTin’s Phase 1 pilot processing plant is designed to process approximately 500 000 t/a producing approximately 60 tonnes of tin concentrate per month as part of Phase 1. Phase 2 will comprise a planned operation of a 3 Mt/a processing facility, producing approxi- mately 5 000 t/a of tin concentrate.

The first large scale blast of ore took place recently and ore preparation and stockpiling in anticipation of the comple- tion of the Phase 1 processing pilot plant is underway. Activities include running the first ore through the front-end comminu-

10 _ MODERN MINING _ January 2019

MINING News

Oklo deploys four rigs at Malian gold projects

ASX-listed explorer Oklo Resources reports that its 2019 field season is well underway with four drill rigs now in oper- ation across its Dandoko and Kouroufing projects in west Mali. The A$5 million drilling programme consists of 35 000 m of AC, RC and DD drilling and approxi- mately 25 000 m of low-cost shallow auger drilling. The projects are located within the Kenieba Inlier of western Mali, approxi- mately 30 km east of B2Gold’s 7,1 Moz Fekola mine and 50 km south-southeast of Barrick’s 12,5 Moz Loulo mine. Oklo currently holds approximately 500 km 2 of highly prospective ground in this emerg- ing world-class gold region. “We are pleased to announce a ramp- up of activity at Seko with diamond drilling now underway. The drilling is testing for strike and depth extensions to the known mineralisation. The arrival of the diamond drill rig complements the aircore and two auger rigs which have been operating at

Kouroufing since November. “First pass, deeper aircore drill testing of the Kouroufing auger gold corridor is now well advanced whilst the two auger rigs continue to test the northern and southern extensions of the identified 6 km gold zone. We look forward to announcing a steady flow of results over the com- ing months,” commented Simon Taylor, Managing Director of Oklo Resources. „ Diamond drilling rig at the Seko prospect, which forms part of the Dandoko project (photo: Oklo).

January 2019 _ MODERN MINING _ 11

MINING News

Balama achieves commercial production

achieved an average graphite recovery of 70 % in Q4 2018 versus an average graph- ite recovery of 53 % in Q3. “The declaration of commercial produc- tion represents a key milestone for Syrah, reflecting the significantly improved pro- duction consistency and strong recovery improvements,” comments Shaun Verner, Managing Director and CEO of Syrah. “This milestone has been reached through coordinated effort across the entire Syrah team, particularly through the dedication of the Balama operations team. We continue to implement further opera- tional improvements in ongoing ramp up, to bring recoveries in line with our medium and longer term targets.” Developed by Syrah at a cost of US$215 million, Balama is the first ‘greenfield’ graphite project in Mozambique to come into production. Syrah transitioned Balama to operations at the start of 2018 and com- menced selling natural flake graphite to a global customer base. The official inaugu- ration of the mine took place in April 2018, with Mozambique’s President Filipe Nyusi in attendance. Balama has a nameplate capacity of 350 000 tonnes per annum (t/a) at 95 % fixed carbon, with the reserves being suf- ficient for over 50 years of operation at full production. The average head grade is expected to be approximately 19 % Total Graphitic Carbon (TGC) during the first 10 years of operations as per the feasibility study. The mining is a standard truck-and- shovel operation while the ore is treated in a 2 Mt/a plant which provides for crush- ing (by means of a sizer rather than an impact crusher), grinding, flotation, filtra- tion, drying, screening and bagging. The concentrate is exported through the Port of Nacala, which is approximately 500 km from the mine site by road. „ said. “Our aim is to fast track a robust, viable near-term low-capex production opportu- nity. Work during early 2019 will be focused on development of this high-grade zone, in addition to the potential high-grade DSO contribution from the pipes.” The SPD project is located on the Eastern Limb of the Bushveld Complex. It is only 30 km from the currently dormant Mapochs mine, which has a processing plant and railway line. „

ASX- l i s t ed S y r a h R e s ou r c e s h a s declared commercial production at the Balama graphite operation in northern Mozambique. Following a review of monthly operat- ing metrics, the company has determined that the criteria to achieve commercial

production, as set out in the 2017 Annual Report, have been met with effect from 1 January 2019. Balama’s Q4 2018 natural graphite pro- duction amounted to 33 kt; full year 2018 natural graphite production of 104 kt is in line with updated guidance. The mine

The 2 Mt/a Balama processing plant (photo: Syrah).

Maiden resource confirms quality of SPD project Tando Resources, listed on the ASX, has announced a maiden JORC resource at its SPD vanadium project. The resource comprises 588 Mt at 0,78 % V 2 O 5 which of 0,9 % V 2 O

5 , within 100 m of surface).

Tando Managing Director Bill Oliver said the maiden JORC resource confirmed the quality of the SPD project as a potential tier 1 asset and provided an important spring board for the next phase of activities. “The delineation of high-grade, near-surface mineralisation provides an immediate focus for our metallurgical andmining studies,”he

is wholly classified in the inferred cat- egory. Significantly, the resource includes coherent high-grade, near surface zones of mineralisation which total 80 Mt at 1,07 % V 2 O 5 (defined above a cut-off grade

12 _ MODERN MINING _ January 2019

MINING News

Paladin examines optimisation of Langer Heinrich the industry that can release further value by lowering production costs, improving throughput and potentially recovering vanadium as a by-product.

third-party metallurgical and mining con- sultants who were historically involved in the design and expansion of Langer Heinrich. Employees who were involved in operating Langer Heinrich are also work- ing as part of the team to ensure plans are optimised for implementation. „

Paladin Energy, listed on the ASX, says it is progressing several key initiatives to opti- mise its Langer Heinrich uranium mine in Namibia in preparation for a restart decision. Paladin made a decision to place Langer Heinrich on care and maintenance (C&M) in May 2018 due to the sustained low uranium spot price and successfully transitioned to C&M in August 2018. “The company will consider multiple processing options for the mine in a PFS to be completed in 2019, which would give priority to initiatives to strengthen Paladin’s plan for a rapid, reliable restart of Langer Heinrich once the uranium price has improved,” comments Paladin’s CEO, Scott Sullivan. The Optimisation Studies have two key focus areas: resolving current operational issues to improve the stability and reli- ability of the Langer Heinrich mine and processing facility to increase productiv- ity and reduce risk; and capitalising on the latest technological developments in

Paladin has formed a studies team of highly experienced operational, technical and project personnel, including expert

Avenira appoints Project Director ASX-listed phosphate producer Avenira has appointed Charles Graham to the position of Project Director to manage the com- pany’s Baobab Expansion and Upgrade investment project in Senegal. Announcing the appointment, Avenira’s Managing Director and CEO, Louis Calvarin, said Graham had a very strong expertise in leading resource development projects. “Charles has outstanding experience in taking projects through studies to con- struction/commissioning and production across diverse geographical locations in Africa, with a demonstrated strong focus

on shareholder value. His appointment is a key positive milestone for our Baobab Expansion and Upgrade investment project and continues our company’s Feasibility Study momentum.” Graham will lead the Baobab Feasibility Study which is currently progressing well at Wood Plc in South Africa, Avenira’s main engineering consultants. He holds a National Higher Diploma in Mechanical Engineering from Pretoria Technikon, now Tshwane University of Technology, in South Africa and has over 15 years of experience as a project manager. „

January 2019 _ MODERN MINING _ 13

MINING News

The twin decline of the Syama Underground Mine. Seen in the photo are (from left) Issa Diarra, Syama Communications Specialist; John Welborn, MD and CEO of Resolute; and Peter Beilby , COO (photo: Resolute).

Australia’s Resolute Mining, listed on the ASX, reported in December the successful commencement of sublevel cave ore pro- duction from the new Syama Underground Mine in Mali, West Africa. The extraction of first ore from the southern end of the 1105 level of the Syama sublevel cave marks the greatly anticipated beginning of the main caving operation at Syama and the achievement of a major milestone for the company. Sublevel cave ore production starts at Syama “The successful development of the Syama Underground Mine represents a pivotal moment in the long history of Resolute,”commented Resolute’s Managing Director and Chief Executive Officer, John Welborn, who was on-site at Syama for the commencement of ore production from the sublevel cave. “Syama will be the world’s first purpose- built, fully automated sublevel cave gold mine,” he said. “It is a world-class, long-life,

low-cost asset that will deliver long-term benefits to our shareholders, stakehold- ers, and local Mali communities for years to come. “Syama will be the most sophisticated and advanced gold mine in Africa. Our investment in exploration, infrastructure, technology, power and innovation at Syama has transformed a world class ore- body into a world class mine. Resolute has an ambition to be a leader in sustainable

14 _ MODERN MINING _ January 2019

MINING News

and responsible economic growth in Africa. We recently announced plans to build a new 40 MW Syama Solar Hybrid Power Plant which will deliver an expected 40 % savings on power costs and is expected to be the world’s largest mine-based, off-grid fully integrated independent solar hybrid power plant. “The commissioning of Project 85, a series of sulphide processing plant upgrades, will enable us to achieve improved recoveries from high-grade ore sourced from the new sublevel cave,” Welborn continued. “The combination of mine automa- tion, improved recoveries, and lower cost power has the potential to increase Syama site production to 300 000 ounces of gold per annum and reduce Life-of-Mine All-In Sustaining Costs to below US$750 per ounce. “The Syama Underground Mine is an achievement that builds Resolute’s African development expertise demon- strated in earlier successes at Obotan and Golden Pride. The new mine also builds on the company’s underground technical achievements demonstrated in pioneering the sublevel shrinkage mining method at the Mount Wright Underground Mine in Ravenswood, Queensland.” Sublevel caving is an advanced and highly efficient low-cost bulk underground mining method that provides early access to ore. Mining commences at the top of

Primary loader hauling ore from Level 1105. The equipment for the Syama Underground Mine is being supplied by Sandvik (photo: Resolute).

the deposit and develops downwards. Ore is mined from sublevels spaced at regular intervals throughout the deposit. A series of ring patterns are drilled and blasted from each sublevel, and broken ore is extracted out after each blast. Sublevel caving com- prises a series of repetitive activities and is ideally suited to automation. Syama is well suited to the sublevel caving mining method because of its scale, width, orientation, and uniformity of grade. Unlike other bottom-up caving

methods (block cave, panel cave), sub- level cave mining is a top-down method and therefore does not require large initial investments in mining infrastructure prior to commencement. The Syama sublevel cave commenced on the 1105 level with the firing of the first production ring. Production drilling continues in the 1105, 1130 and 1200 lev- els as the underground mine advances towards the targeted full production rate of 2,4 Mt/a. „

Galane Gold places orders for Galaxy upgrade Galane Gold, listed on the TSX-V and the Botswana Stock Exchange, announced in December that it had placed the material orders required for the processing plant upgrade according to its plan to recom- mence production at its Galaxy gold project in Mpumalanga, South Africa by April 2019. Galane has already refurbished the existing 15 000 tonnes per month pro- cessing plant at Galaxy and the upgrade will increase the plant capacity to 30 000 tonnes per month.

dewater the concentrate to approximately 10 %moisture prior to bagging, containeri- sation and dispatch. “With the completion of the funding requirements for our facility with Barak, Galane is now in a position that it can prog- ress to the restarting of the operations at Galaxy,” commented Galane Gold’s CEO, Nick Brodie. “The work done by Galane while Galaxy was in care and maintenance has resulted in a detailed scope of work for the plant upgrade which we have had verified by independent third parties. Galane has also followed the same process for the restart of underground operations. “This represents only the first step of our resurrection of the Galaxy mine and we will shortly commence a study with the aim being to double production and lower the all-in cost as a result of increased econo- mies of scale.” „

sistency of the mineralised feed to the plant will be improved by the installation of an apron feeder under the ROM bin. Initially the existing mill and a single flotation stream will be used to operate up to 15 000 tonnes per month while the new 3,6 m x 6,7 m ball mill and second flotation stream are being erected. Once the new mill is completed both flotation streams will be brought on line to produce concentrate. In addition, a new reagent makeup and dosing plant will be installed to accurately mix and dose flotation chemicals into the circuit. The concentrate will then be thickened, initially in one 4,2 m high rate thickener, while a second unit is installed to cater for a 30 000 tonnes per month throughput. Two 1 250 x 1 250 mm automatic side bar hydraulic filter presses will be installed to

The processing plant upgrade allows for the refurbishment of the Galaxy crush- ing plant and includes the installation of a new jaw and cone crusher which will be able to crush up to 90 t/h. This will pro- vide for ample maintenance time, even at maximum mill throughput, and also accommodate future expansion. The con-

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MINING News

Lycopodium awarded Yaouré contract Lycopodium reports it has been awarded the engineering and supply contract for Perseus Mining’s Yaouré gold proj- ect in Côte d’Ivoire. The award is subject to finalisation of the formal contract documentation, full project funding and receipt by Perseus of its exploitation per- mit. Contract revenue is expected to be US$95,1 million. ance of approximately 8 %) to develop the project. Yaouré, which be an open-pit mine (although there is underground poten- tial), will have a 3,3 Mt/a plant with average annual gold production of

215 000 ounces at an AISC of US$734/oz for the first five years of production. First production is expected in late 2020. The project is located in a rural area on the southern edge of Lake Kossou, 35 km north-west of the capital Yamoussoukro and 25 km east-north-east of the city of Bouaflé in central Côte d’Ivoire. „

Nedbank mandated for Fungoni financing ASX-listed Strandline Resources reports it has taken another significant step towards becoming a minerals sands producer by signing a Lead Arranger mandate with Nedbank Limited (Nedbank CIB) to act as a lead arranger and underwriter of a US$26 million finance facility for its Fungoni project in Tanzania.

The new contract continues Perseus’ association with Lycopodium, following the successful delivery of the Sissingué gold project (also in Côte d’Ivoire) and completion of the Definitive Feasibility Study (DFS) and Front End Engineering and Design (FEED) for Yaouré. Perseus announced in October last year that a value engineering assessment (VEA) and the front-end engineering and design (FEED) study for Yaouré had been completed. These confirmed the cost esti- mates in Yaouré’s October 2017 DFS. The DFS estimated a capital cost of US$264 million (including a contingency allow-

technical, financial, legal and environmental and social due diligence, which are targeted for completion by the end of the March quarter 2019. With key mining and environment licences in place, 100 % of the product pre-sold via offtake, strong government support, an EPC contract now executed and due diligence underway with Nedbank CIB, Strandline says it is well positioned to com- mercialise its first project in Tanzania. The Fungoni DFS confirmed the project will deliver strong financial returns, includ- ing EBITDA of US$115 million. „

The facility accounts for the majority of Fungoni’s total estimated development capital cost of US$32 million. Nedbank CIB has already commenced the detailed due-diligence process. The facility remains conditional upon docu- mentation and satisfactory completion of

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MINING News

Balama Central FS indicates “outstanding returns” assembly of lithium ion batteries.”

applied in the first year. To enhance early cashflow, the target feed grade to the plant will average 12,5 %TGC. This is maintained for 29 years before reducing. The cut-off grade was determined through the application of project unit operating costs and recoveries. The recov- eries were determined by deposit scale geometallurgical assessment of samples representative of the variable lithology types, oxidation and TGC% grade ranges. The marginal cut off was estimated to be 3,4 % TGC for the weathered material and 2,9%TGC for the freshmaterial. An elevated cut-off grade of 6 % TGC was selected as it produced sufficient mine life. Material between the marginal cut-off and 6 % TGC will be placed on amineralisedwaste dump, separate from the main waste dumps. The Balama Central process plant will process run of mine (ROM) ore at an aver- age rate of 480 000 t/a. The flowsheet has been developed based on the results of extensive test work on various samples. Battery Minerals expects that the Balama Central process plant will include the following: ROM pad, designated stock- pile areas and the ability to blend ore on the pad; primary jaw crusher and crushed ore stockpile; primary closed-circuit rod mill; rougher flotation; concentrate regrind- ing and cleaning; concentrate filtration; concentrate drying, screening and bag- ging; and tails thickening and disposal. „ mented: “We are extremely delighted to have started our commercial diamond recoveries at Mothae on such a successful and positive note with the recovery of this 78-carat white dia- mond. Recovering such a diamond this early confirms our confidence in Mothae as a large diamond source. “We look forward to completing the pro- gressive plant ramp up phase following the implementation of a second shift at the plant.” The new Mothae plant incorporates advanced diamond recovery technology, including two XRT diamond recovery mod- ules designed to recover large and rare Type IIa diamonds ahead of the secondary crush- ing circuit, thus reducing potential diamond breakage and improving the recovery of unbroken large stones. „

Australia’s Battery Minerals, listed on the ASX, reports that a Feasibility Study (FS) has found that its second proposed graphite project in Mozambique, Balama, will cost just US$69,4 million to develop and generate outstanding financial returns. The project is located in the prov- ince of Cabo Delgado in the north of the country Balama’s strong outlook is highlighted by the study’s finding that it will generate average free operating cashflow of US$35 million a year and have a pre-tax internal rate of return of 55 %. The project’s payback period is estimated at two to three years. The study underpins a maiden ore reserve at Balama of 19,7 Mt at 11,1 %Total Graphitic Carbon (TGC) for 2,2 Mt of con- tained graphite reported at a cut-off grade of 6 % TGC. Battery Minerals’ Managing Director, David Flanagan, said Balama was a top- class project with some of the best product sizing classification, operating costs, con- centrate purity and economic returns in the graphite sector. “The Balama Central graphite project immediately adjoins the world’s largest graphite export operation, which is cur- rently being delivered into all the world’s major lithium ion battery manufacturing markets,” he said. “As a result, this area is one of the world’s most important suppli- ers of minerals which are essential to the

Battery Minerals expects to develop Balama Central after its first Mozambican graphite project, Montepuez, is commis- sioned. The company is currently in the process of completing full project financ- ing for Montepuez. Mining at Balama Central will be under- taken using standard truck and excavator methods. Drill and blast of the fresh mate- rial will be required. Pit designs for the Lennox and Byron deposits were based on Whittle pit opti- misations for each deposit considering project specific unit costs, prices, recov- eries and geotechnical inputs. The pit optimisations were constrained within the limits of the indicated resources for each deposit. The current design for the Lennox pit extends to a depth of approximately 90 m, whilst the current design for the Byron pit extends to a depth of approxi- mately 135 m. Each pit will have a single waste dump, located to the east of each excavation. Pit ramps will be oriented to ensure that both ore and waste haulage distances are minimised. Long-termore stockpiles will be located between each pit and the ROMpad. A mining schedule was completed based on the processing plant target pro- duction of approximately 58 kt/a of TGC concentrate at 96 % TGC and practical mining constraints. A 75 % ramp-up was

NewMothae treatment plant recovers 78-carat white diamond

Lucapa Diamond Company, listed on the ASX, and the Government of the Kingdom of Lesotho (GoL), announced last month (December) the recovery of a 78-carat white diamond from the Mothae kim- berlite mine in Lesotho (Lucapa 70 %; GoL 30 %). The white diamond is the largest ‘Special’ recovered through the new Mothae treatment plant following the commencement of commissioning and recovery of commercial diamonds in early December. A second operating shift has now also commenced at the Mothae plant as part of the progressive ramp up to the 1,1 Mt/a nameplate capacity. Lucapa MD Stephen Wetherall com-

The 78-carat white diamond (pre-boiling) recovered through the newMothae treatment plant (photo: Lucapa).

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MINING News

Sampling programme by Orca identifies large anomaly our primary focus on Block 14 in the Sudan. “Following on the early success at Morondo, our discovery of a broad soil anomaly in the highly prospective Korokaha North permit clearly demon- strates the quality of our strategic property portfolio in Côte d’Ivoire. This discovery is

of significance given its close proximity to Randgold’s Tongon mine (15 km). The next steps for Orca in Côte d’Ivoire are to deliver a PEA on Morondo, further define the anomalies at Korokaha North and con- tinue the systematic assessment of our extensive property portfolio.” „

Orca Gold Inc, listed on the TSX-V, reports that an initial sampling programme on its 100 %-owned Korokaha North gold proj- ect in Côte d’Ivoire has outlined an 8 km by 1 km soil anomaly. The programme conducted at Korokaha North, which is Orca’s second exploration permit, follows the company’s success in defining a maiden 1,2 Moz inferred min- eral resource at the Koné prospect in the Morondo exploration permit. Gold mineralisation at Morondo was first discovered by Red Back Mining in 2010. Soil sampling at Korokaha North, based on an 800 m by 50 m grid, has defined a large anomaly over an 8 km strike length and up to 1,15 km wide (at +20 ppb Au). Within this broad envelope, coherent anomalies of +50 ppb Au up to 4 km in strike length are clearly defined. Orca, whose prime asset is the Block 14 gold project in Sudan, holds a portfolio of three exploration permits and seven permit applications in Côte d’Ivoire. Following the acquisition of this portfolio from Kinross in October 2017, exploration initially focused on the delineation of a mineral resource at the Koné prospect. Commenting on the new discovery, Hugh Stuart, President and Director of Orca Gold, said: “Our aim in Côte d’Ivoire is to systematically work through our property portfolio with an aim to add value for Orca shareholders whilst not detracting from

Algold gets more time to complete study Algold Resources, listed on the TSX-V, reports that the Mauritanian Ministry of Oil, Energy and Mines has granted a 12-month extension to the Corporation for the com- pletion of the Tijirit gold project feasibility study.

which Algold owns 75 %, the Government of Mauritania holds 15 % and Wafa Mining and Petroleum has 10 %. This is an impor- tant endorsement for Algold and we are grateful for the Government of Mauritania’s continued strong support.” Over the past 30 months, Algold has suc- cessfully completed several key milestones including: acquiring Tijirit; several rounds of financing to raise over $25 million, with $7,9 million from Mauritanian partners; 75 000 m of drilling in four phases; fil- ing of an NI 43-101 resource report and a Preliminary Economic Assessment; and receipt of a 30-year mining lease from the Government of Mauritania. The Tijirit project encompasses an area measuring more than 750 km 2 , which is comprised of the 306-km 2 Tijirit exploita- tion licence and the 460-km 2 Tijirit East exploration licence. The project is situ- ated approximately 25 km south-east of the Tasiast gold mine. Exploration is being carried out on the Eleonore, Sophie I, Sophie II-III, Lily and SVS zones. „

At Algold’s request, the Government of Mauritania granted an extension for the delivery of the feasibility study. This will allow Algold to pursue more technical work, including drilling, metallurgy and hydro- geology, which can potentially expand the project’s scope and resources. The feasibility study was originally scheduled for comple- tion by the end of 2018. “Algold and the Government of Mauritania have always worked closely together in the development of the Tijirit gold project,” said Benoit LaSalle, Algold’s Chairman and CEO. “The extra time pro- vided by the extension will allow for more technical work to be performed, which is yet another illustration of the synergy and team spirit created by the establishment of the TIREX Gold Company, a partnership in

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