Modern Mining January 2019

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