Modern Mining July 2016

July 2016 Vol 12 No 7 www.crown.co.za M ODERN MINING

IN THIS ISSUE…  Elandspruit supercharges Wescoal  Khoemacau making good progress  MOD Resources excited by T3 discovery

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MODERN M I N I N G

CONTENTS

JULY 2016

ARTICLES

COVER 18 Dry drilling puts safety first COAL

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

REGULARS MINING NEWS 4 SENET awarded EPCM contract for Yanfolila 5 Galane pushes up gold production at Mupane 6 Rockwell focuses on bringingWouterspan on line 7 Bushveld announces results of metallurgical test work 8 Tests on Kakula ore sample deliver positive results 9 Tiger Resources commissions Kipoi cobalt study 10 Alphamin updates Feasibility Study on Bisie tin project 11 Lucapa testing kimberlite targets at Lulo 14 Drilling at Giro gold project yields exceptional grades 15 Drilling enhances prospects for Fekola and Kiaka 16 Zinc flotation plant at Bisha completed on schedule PRODUCT NEWS 49 Doosan excavators gaining in popularity 50 Washbox belt cleaner removes difficult carryback 51 Goodyear develops tyre for new Volvo ADT 52 Pneuflot technology proves itself in field trials 52 Finnish technology can counter acid mine drainage problem 53 Latest mine scheduling tools with Maptek Evolution 54 Redesigned product improves coal dewatering 55 Multotec drives down DMS maintenance costs 56 Weir Minerals adds cone crusher range to its line-up 22 Elandspruit supercharges Wescoal 26 Major milestone for Mabesekwa 31 Study confirms Mbeya as a “robust project” COUNTRY FOCUS – BOTSWANA 32 Khoemacau Copper Mining outlines its vision for the Kalahari Copperbelt 36 Exciting T3 discovery opens up options for MOD Resources 40 Incredible Karowe’s flood of big stones continues LOGISTICS 46 Platinum hauler keeps rolling with Scania

Darryl James Circulation Karen Pearson 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 Sandvik DS411 rock bolter in operation at Petra Diamonds’ Finsch Diamond Mine in the Northern Cape. See our story on page 18 for full details.

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Average circulation (January–March 2016) 4381

July 2016  MODERN MINING  1

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COMMENT

DRC gold rush analysed in Global Witness report

W estern-style mining compa- nies – the type that are typi- cally listed on stock exchang- es in Australia, Canada and the UK and who issue regular quarterly and annual reports – tend to get a bad press in Africa, often being accused of extract- ing the mineral wealth of the countries they op- erate in without giving much in return. Having visited many mines around Africa, I don’t personally place much credence in these allegations. In my experience, the mines owned by these companies have generally been properly planned, designed and engineered, are operated according to the best safety and environmental standards, and pay significant amounts of money to their host countries in the form of taxes and royalties. Moreover, most will have well-paid, well-trained workforces drawn mainly from local communities. Compare this with the alternatives – either unrestrained artisanal mining or mining by shadowy unlisted companies, either based in Africa or offshore, who lack accountability and who operate with a total disregard for local communities and the environment. The points I make above are well illustrated in the rich goldfields of the eastern Congo in the area to the west and south-west of Bukavu, where, on the one hand, one has Canada’s Banro Corporation operating two well-run mines – Twangiza and Namoya – and, on the other, a gold rush on the Ulindi River (which started in 2013 but has now tapered off) whose beneficiaries have included, according to inter- national NGO Global Witness, “armed groups and a predatory Chinese-owned company, Kun Hou Mining, rather than the local population.” Global Witness has just released a report on the Ulindi River gold rush – which it says generated more than a tonne of gold per year worth about US$38 million – entitled River of Gold and sub-titled How the state lost out on an eastern Congo gold boom, while armed groups, a foreign mining company and pro- vincial authorities pocketed millions . Global Witness, of course, is not – generally speaking – a friend of the mining industry but its reports are invariably well researched and written, and this latest report is no exception. The full report, which is available for down- load on the Global Witness website, runs to 32 pages (and also, incidentally, includes some very interesting photos). Space constraints don’t allow me to go into the details of its alle- gations but the nub of them is contained in a

short executive summary which takes just a few minutes to read. According to Global Witness, its research revealed that Kun Hou Mining paid US$4 000 to Raia Mutomboki armed groups – ‘Raia Mutomboki’ apparently means ‘angered citi- zens’ in Swahili – operating along the banks of the Ulindi and also gave them two AK-47 assault rifles in order to secure access to rich gold deposits on the river bed. “Kun Hou Mining ran four semi-industrial river dredging machines along the Ulindi in the boom,” says Global Witness. “Members of the same armed groups also earned up to $25 000 per month by regularly taxing the workers on locally-made dredgers who were doing the dangerous job of manually sucking up gold from the river bed. Up to 150 of these manually operated dredgers worked along the river at the height of the rush. South Kivu officials charged with oversight of the province’s artisanal gold sector appeared to defend Kun Hou Mining rather than enforce Congolese law and hold the company accountable for its illegal activity.” Needless to say, much – probably most – of the gold from the Ulindi boom has left the DRC illegally and Global Witness notes that South Kivu’s provincial accounts for 2014 and 2015 show no evidence of any gold rush in the area. The NGO also says that the town which was at the epicentre of the rush, Shabunda, has been left in the same state as it was before the rush started. It describes it as a “deprived enclave with no roads, running water or electricity and its people suffering grinding poverty.” Compare what has happened on the Ulindi River with Banro’s activities. The company’s two mines produced a record combined 49 673 ounces of gold in the second quarter of this year. The company, of course, pays all the taxes and royalties that it should and almost 92 % of its roughly 1 500 employees in the DRC are Congolese citizens. In addition, it operates the Banro Foundation which is its vehicle for long-term community development. The Foundation was founded in 2005 – long before either Twangiza or Namoya were established – and since then has invested more than US$5,5 million in more than 70 projects. In June this year, it won – for the sec- ond time – a major award at the DRC Mining Industry Awards for its social investment programmes. So there you have it – the two faces of min- ing in Africa. I know which I prefer! Arthur Tassell

“Members of the same armed groups also earned up to $25 000 per month by regularly taxing the workers on locally-made dredgers who were doing the dangerous job of manually sucking up gold from the river bed.”

July 2016  MODERN MINING  3

MINING News

The Yanfolila site where early earthworks have already been completed (photo: Hummingbird).

SENET awarded EPCM contract for Yanfolila

AIM-listed Hummingbird Resources has awarded the Engineering, Procurement and Construction Management (EPCM) contract for its Yanfolila project in Mali to SENET, a leading South African project management and engineering company. SENET will carry out detailed engineering and manage the mine construction at the 1,24 Mt/a open-pit gold project, for which Hummingbird recently closed a US$71 million fundraise, ahead of anticipated production by the end of 2017. SENET worked on both the Loulo (Mali) and Tongon (Côte d’lvoire) mines for Randgold Resources and has more recently been involved in the execution of

directly for gold mining companies such KBK Gold where he was instrumental in project execution. Yanfolila will produce 132 000 oz of gold in its first full year of production with LoM average production of 107 000 oz/a. The project has an IRR of 60 % and an NPV of US$162 million at a US$1 250 gold price and is expected to generate over US$70 million of free cash flow in its first year of full production. It will have an AISC of US$695/oz – which is expected to be in the lowest quartile of African producers. According to Hummingbird, the project has significant upside from over 1 Moz of gold inventory outside of the current mine plan within the mining permit. Comments Dan Betts, MD of Humming­ bird Resources: “With SENET contracted for Yanfolila’s mine construction, detailed engi- neering has now commenced. We have been working with SENET for two years through the optimisation of the project and delivery of the DFS and we look for- ward to building a mine with them. SENET were previously involved with Yanfolila when it was owned by Gold Fields so their knowledge of the project is second to none. Coupled with their long and impres- sive history of delivering quality projects in Africa, this gives us all great confidence. “I am also extremely pleased to wel- come Wayne Galea to the Hummingbird team as Project Manager. He is a key hire for project delivery and brings a wealth of experience to the role that we are already benefiting from.” 

True Gold’s Karma project in Burkina Faso. Procurement has commenced on long lead items such as the ball mill, tower crane and CIL tanks. Hummingbird has also announced that Wayne Galea has been appointed as Yanfolila Project Manager to work with Shaun Bunn, Technical Director. He is a mining professional with 31 years’ experi- ence in the mining industry specialising in gold. A process engineer by background, he has worked for a number of the world’s leading engineering companies includ- ing AMEC, Bateman and Signet, where he gained extensive experience of manag- ing EPCM contracts. He has also worked the meantime, BMR has started placing orders for locally manufactured items for the leach/precipitation section. The main 90 m 3 sulphuric acid storage tank has been acquired and is in place. Plant design optimisation has resulted in standardising tank sizes for leach/precipitation/zinc re-leach and lead leach sections. Similarly, in the zinc solvent extraction (SX) circuit, optimi- sation of the extraction and stripping phases has resulted in a reduction in the tank sizes. This will result in a modest reduction in plant capital costs. BMR says the expected plant com- missioning date for the commencement of production remains on schedule for early 2017. 

BMR makes progress on Kabwe plant Reporting on its current activities, AIM- listed BMR – which is focused on the recovery of lead and zinc from the tail- ings deposits of Zambia’s oldest mine at Kabwe – says that negotiations are proceeding well with the private South African group engaged inmining, energy and agri-business concerning a US$2 million facility for the construction of the plant at Kabwe and the related sale and purchase agreement for the sale of agricultural grade zinc sulphate heptahy- drate (ZSH) (500 tonnes per month) and lead sponge (300 tonnes per month). BMR says that civil works to the floor space in the old mine concentrator building in preparation for the construc- tion of the plant are well advanced. In

4  MODERN MINING  July 2016

MINING News

Galane pushes up gold production at Mupane mine in Botswana

Teranga Gold to acquire Gryphon Minerals

Teranga Gold Corporation, listed on the TSX and ASX, has entered into a ‘Scheme Implementation Agreement’which will result in its acquiring ASX-listed Gryphon Minerals. Gryphon’s key asset is the 90 %-owned Banfora gold project, a fully permitted, high grade, open-pit gold project located in Burkina Faso. Banfora currently has a measured and indicated gold mineral resource of 2,98 Moz (67,1 Mt at 1,39 g/t) and an inferred gold min- eral resource of 0,66 Moz (15,9 Mt at 1,30 g/t). In January 2013 Gryphon announced a proven and probable reserve of 1,05 Moz (16,7 Mt at 1,95 g/t) contained within four open-pit deposits as part of a Bankable Feasibility Study on a 2 Mt/a CIL operation. There is potential to add reserves at depth and along strike in each of these deposits, and through a number of exploration targets located on Gryphon’s highly prospective land package. “This is an outstanding opportunity to add another high quality gold asset to Teranga’s portfolio and to create a multi-jurisdiction gold producer with diversified production and cash flows,” says Richard Young, President and CEO of Teranga. “Out of the gate, Gryphon’s Banfora project will give us an additional one million ounces in gold reserves, with consider- able exploration potential to further increase the reserve base, which is expected to enhance our production, cost and cash flow profiles commencing as early as 2019.” Adds Steve Parsons, MD of Gryphon: “We are very pleased to be joining forces with Teranga Gold Corporation as we look to cre- ate a pre-eminent West African mid-tier gold producer. This transaction gives an immediate uplift for Gryphon shareholders and provides significant exposure to Teranga’s Sabodala goldmine in Senegal. The combined company can leverage off its strong balance sheet and mining cash flows to help bring the 3,6 Moz Banfora gold project into development and production in the near term.” Young points out that while Gryphon had originally considered a traditional CIL flowsheet, Banfora was redesigned into a heap leach operation in 2013/2014 to lower the project capital cost as the price of gold declined. “We share Gryphon’s belief that in the absence of financing constraints there is greater value today in a fully optimised CIL flowsheet, particularly when combined with an active exploration programme aimed at converting high grade resources to reserves,” he says. 

Canada’s Galane Gold reports that pro- duction from its Mupane mine near Francistown in Botswana for the three months ended June 30, 2016 was 7 855 ounces, an increase of 2 027 ounces on the previous quarter. The increase is a reflec- tion of the higher grade being fed to the operating plant with the start of mining in the main Tau orebody in April 2016. Galane Gold’s Chief Executive Officer, Nick Brodie, commented: “The second quarter of 2016 outperformed our internal expectations with mining commencing in the main orebody at Tau three months before we originally anticipated. The increase in production is a reflection of the management team’s hard work and deter- mination over the last two years to turn Mupane into a high grade underground operation. “Production at the Mupane mine for the three months ended June 30, 2016 represents our best quarterly production since the second quarter of 2014 when we completed mining at the Tholo open pit. We expect this momentum at the Mupane mine to continue into future quarters as we expose more of the Tau orebody.” Galane Gold has also announced that Wayne Hatton-Jones has been elected to its board of directors. He is currently the

Chief Operating Officer of the company. He has over 27 years’experience inmining and has held a number of senior management positions in the mining industry including with Randgold, Gold Ridge Mining, Avocet Mining and Harmony. Galane has also advised that Charles Byron, who was the company’s Chief Geologist and a director, has stepped down. Comments Galane’s Chairman, Ravi Sood: “Having worked with Wayne for the last two years, I know that he will be a positive addition to the board and will assist us in our long-term strategy to oper- ate long-life and low-cost gold mines that can produce positive returns for investors across commodity cycles. “In addition, on behalf of the board of directors and shareholders of Galane Gold, I would like to thank Charles Byron for his service as a director for the past five years. Charles has played a pivotal role in explo- ration in Botswana for almost 30 years. In fact, Charles led the team that conducted the critical exploration work that led to the discovery of the Tau orebody and, ulti- mately, the development of commercial gold mining in Botswana. We are pleased to announce that Charles has agreed to continue to work with us on exploration and other ad-hoc projects.” 

The Mupane gold mine produced 7 855 ounces in the June quarter. Part of the Mupane processing facility is seen here (photo: Galane Gold).

July 2016  MODERN MINING  5

MINING News

Rockwell is planning to commission the Wouterspan plant – seen here under construction – by August this year (photo: Rockwell Diamonds).

Rockwell focuses on bringingWouterspan on line beneficiation). The average price per carat improved by 27 % on Q4 2016 to US$1 864. Commenting on the results, James Campbell, CEO and President, said: “Our performance in the first quarter of fiscal 2017 is reflecting the effects of the improvements that we have been implementing, following the strategic interventions of late FY 2016. Productivity has been enhanced on our operations with the result of improved diamond recoveries and diamond values.

turn to increased processing volumes. Our MOR sales are up 31 % on the previous quarter and 67 % on the same period last year. However, the demand for plus-10- carat stones remained softer throughout the quarter, due to lower demand.” Campbell said Rockwell had taken a decision in May to outsource its min- ing processes on a fixed, pay-per-volume delivered basis. “Accordingly, we have initiated negotiations on a new contrac- tual arrangement, which will transfer the maintenance, availability and volume risks related to earthmoving fleet availability to the mining service provider. This new arrangement represents a fundamental change to our business and operating model, which we expect will bring about further improvement,” he said. “We are pleased with the progress on the Wouterspan project. Early stage mining has so far produced a 100 000 m 3 stockpile, with which we can commence early commissioning of the wet pro- cessing plant, whilst construction of the Phase II in-field screening plant is being completed.” 

Rockwell Diamonds Inc, listed on the TSX and JSE, has announced its quarterly pro- duction and sales update for the three months ended May 31, 2016. In the update, the company says it is continuing to pursue its medium term target to process 500 000 m 3 of gravel per month in the Middle Orange River (MOR). The immediate focus is on the construction and commissioning of the plant at Wouterspan (WPC) by August 2016; continuous improvement of mining throughput at Remhoogte (RHC); and the cost effective wind down of Saxendrift by August 2016. Volumes were up 32 % on Q1 2016 and 7 % on Q4 2016, chiefly due to substan- tially higher volumes mined and processed at RHC. MOR grades were up 12 % on Q4 2016 owing to better recoveries from the middlings material at Saxendrift mitigating a drop in grades at RHC (down 11 %). Some 4 880 carats were sold in the reporting period, up 3 % on Q4 2016 and 59 % on Q1 2016, while the value of sales increased 31 % from Q4 2016 and 67 % from Q1 2016 to US$9,1 million (excluding

“While operations are continuing to wind down at Saxendrift, production at Remhoogte is now stabilising after a challenging third and fourth quarter, previ- ously reported. The positive impact of the new in-field screening capability installed at RHC late in FY 2016 and improving EMV availability is reflected in the notable increase in volumes mined and processed at RHC (up 30 % and 42 % respectively compared to Q4 2016). “Average per carat values at RHC increased by 32 % to C$1 944 per carat, owing to the recovery and incidence of larger stones which normally follows in

6  MODERN MINING  July 2016

MINING News

Bushveld announces results of metallurgical test work

minerals processing experts specialising in gravity recovery. The results show that at a top size of 1mm, >70 % Sn recoveries are achieved for enhanced gravity concentration, less than 15 % Sn is lost to tailings during spiralling, and shaking tables achieve at least 85 % recovery, giving over 50 % cumulative recoveries and a final concentrate grade of 74,59 % SnO 2 (58,75 % Sn). Consequently, a flowsheet has been

AIM-listed Bushveld Minerals has announced results from pilot-scale met- allurgical test work and plant design at its Groenfontein tin deposit in Limpopo Province, South Africa.  The test work was intended to assess tin recovery on a plant-scale, gain insight into potential concentrate grades, and to fine-tune plant flowsheet design param- eters. The test work indicates a recovery using gravity concentration of over 70 % for grind sizes of -1 mm. Bushveld released a scoping study on the Groenfontein and Zaaiplaats deposits in September 2014, which envisaged a mining rate of 691 000 t/a at a head grade of 0,12 to 0,23 % SnO 2 to produce 610 to 1 130 tons of refined tin metal per annum post smelting. Following on from the 2014 scoping study, the company decided to revise the development plan for the project to focus on mining the higher-grade zone of the Groenfontein and Zaaiplaats deposits and processing it using a relatively simple gravity separation flowsheet to produce a saleable concentrate product. The scope revision was driven by the company’s interest in executing a low capex, near-term production operation. The aim is to take advantage of a rela- tively buoyant tin market and establish Groenfontein as a standalone tin asset. In order to assess tin recovery param- eters on a plant scale, gain insight into potential concentrate grades, and to fine- tune plant flowsheet design parameters, a large (500 kg) sample of surface ore from historical workings at the Groenfontein deposit was submitted for additional met- allurgical test work at Peacocke & Simpson,

recoveries. With recently updated plant capex and opex estimates at hand, we look forward to finalising infrastructure and mine cost estimates while continu- ing to focus attention on accelerating smaller-scale mine development and commissioning. The tin market has been particularly positive in a generally nega- tive commodity environment with the tin price up 18 % since the start of the year on supply constraints.” 

developed for gravity sep- aration, with crushing and screening and rod-milling to -1 mm. Material is con- centrated via spirals and shaking tables to maxi- mise recovery and SnO 2 concentrate grade. The plant design envisages a 164 160 t/a operation producing up to 510 t/a of SnO 2 . Bushve l d s ays t he next step is to complete flowsheet design and mine-planning studies to determine mine capex and opex parameters, which will be incorporated in a revised financial model. Fo r t une Mo j ape l o, CEO of Bushveld Minerals, said: “ The encourag- ing metallurgical results achieved suppor t our view that high- grade cassiterite concentrates can be produced from the Groenfontein deposit wi t h re l a t i ve l y good

A drill rig working at the Mokopane tin project in Limpopo Province (photo: Bushveld Minerals).

July 2016  MODERN MINING  7

MINING News

Tests on Kakula ore sample deliver positive results

academic and industrial interest in kimber- lites and diamonds. Together, the 11 IKC field trips offer the opportunity to visit all of the diamond mines in Southern Africa, both primary and secondary deposits. These include the first diamond mines discovered in each of the five diamond-producing countries in the region (Orapa, Botswana; Kimberley, South Africa; Letseng, Lesotho; Murowa, Zimbabwe; and Elizabeth Bay, Namibia). Unique to this conference, delegates can visit the rough diamond sorting facilities at the Diamond Trading Company Botswana and De Beers Global Sightholder Sales in Gaborone. Full details are available from website www.11ikc.com .  The primary objective of the cur- rent drilling programme at the Kakula Discovery is to confirm and expand a thick, flat-lying, bottom-loaded zone of very high-grade copper mineralisation in the southern part of the Kakula Discovery area that has the potential to have a significant, positive impact on the Kamoa project’s future development plans. Kakula’s drill- ing programme has seven rigs operational in the field and two rigs on standby. The planned 25 000 m of drilling is scheduled to be completed later this year.  trate grade of 37 % copper. The PFS circuit was optimised on this material. Mineralogy on the Kakula sample of drill core confirmed that the material is chalcocite dominant, with lesser amounts of bornite. “These preliminary Kakula metallurgi- cal test results are positive as they indicate that the metallurgy at Kakula is very similar to that at Kansoko Sud and Centrale, and that mineralisation from these three areas can be successfully processed through the same concentrator plant,” said Vongani Nkuna, Kamoa’s Senior Process Engineer. “The next steps are to repeat and con- firm the Kakula metallurgical results by running duplicate tests at Zijin’s labora- tory and XPS’s laboratory in Canada. After this, we will look at minor changes to the planned Kamoa concentrator circuit to fur- ther improve recoveries. Once we have a resource model for the Kakula area, we will plan a rigorous sample selection and test work campaign.”

Robert Friedland, Executive Chairman of TSX-listed Ivanhoe Mines, and Lars-Eric Johansson, CEO, have announced initial metallurgical test results from a sample of drill core from ongoing exploration in the Kakula Discovery zone, in a southerly portion of the Kamoa copper project in the DRC. The tests achieved copper recoveries of 86 % and produced a copper concentrate with an extremely high grade of 53 % cop- per. The results also indicate that material from Kamoa’s Kakula and Kansoko zones could be processed through the same concentrator plant, which would yield significant operational and economic efficiencies. The Kamoa project, located approxi- mately 25 km west of the town of Kolwezi

in Katanga Province, is a joint ven- ture between Ivanhoe Mines and Zijin Mining Group Co, Ltd. The 60- km 2 Kakula Discovery zone is on the Kamoa mining licence, approximately 10 km south-west of the Kamoa project’s planned initial min- ing area at Kansoko Sud. Testing of the Kakula sample was con- ducted at Zijin’s laboratory in China, using the flowsheet developed during the Kamoa Pre-Feasibility Study (PFS). The material testedwas a composite of drill holes DD996 and DD998, assaying 4,1 % copper. As a comparison, testing of a previous develop- ment composite sample from the planned, initial mining deposit at Kamoa’s Kansoko Sud zone and the adjacent Kansoko Centrale zone, assaying 3,61 % copper, achieved an 85 % recovery and a concen-

One of the drills in operation at the Kakula Discovery area, approximately 10 km south-west of the boxcut and initial mining area at Kansoko Sud (photo: Ivanhoe Mines).

Botswana to host major kimberlite conference The 11th I nternational K imberlite Conference (11 IKC) is to be held at the Gaborone International Convention Centre in Botswana from 18-22 September 2017. International Kimberlite Conferences (IKCs) are special events which take place every four to five years, with the first IKC hav- ing being held in Cape Town in 1973. The 11 IKC will be the first IKC to be hosted by Botswana.

the country, now the Orapa mine. This anni- versary will be celebrated under the banner of ‘50 Years of Diamonds in Botswana’. The objective of this conference is to bring together geoscientists from both the academic and exploration/mining commu- nities to share their knowledge, stimulate scientific debate and to further the under- standing of the geology of kimberlites, diamonds and related subjects. The confer- ence will include oral and poster technical sessions as well as field trips in Botswana and neighbouring countries. The 11 IKC technical sessions will cover six conference scientific themes, each with a keynote, which reflect current and future

According to the organisers, the location of the 11 IKC is particularly appropriate as Botswana is currently the largest diamond producer by value worldwide and 2017 is the 50th anniversary of the discovery of the first economic diamondiferous kimberlite in

8  MODERN MINING  July 2016

MINING News

Tiger Resources commissions Kipoi cobalt study The Kipoi project is located in the heart of the Katanga Copperbelt (photo: Tiger Resources).

from the Kipoi project and is currently undertaking debottlenecking works at the plant to increase production capacity to 32 500 tonnes per year. 

ASX-listed Tiger Resources has commis- sioned a study by independent consultant Mintrex Pty Ltd to investigate the eco- nomic viability of producing cobalt at its Kipoi project. Kipoi is located 75 km north- west of Lubumbashi, the capital of Katanga Province, in the central part of the Katanga Copperbelt in the DRC. Tiger has a resource of 40 400 tonnes of measured and indicated and 5 600 tonnes of inferred cobalt across the Kipoi Central, Kipoi North, Kileba and Judeira deposits at its Kipoi project. There are additional cobalt resources at the nearby Sase Central deposit, where Tiger has defined 5 000 tonnes of indicated and 1 000 tonnes of inferred cobalt. The Mintrex study is expected to take three months to complete and will exam- ine Tiger’s potential processing pathways, with Mintrex to recommend options for future metallurgical testwork. Tiger Chief Executive Officer Michael Griffiths said the growing global demand for cobalt had encouraged the company to examine if it could economically convert its resources to a saleable product. “Cobalt is used in many industries, but its demand is increasing mostly due to its use in batteries and super alloys,” he said. “Tiger is in a position to capitalise on this

with our known resource at Kipoi and a strong operating and production record.” Tiger currently produces approximately 26 000 tonnes of copper cathode per year

Frontier files technical report on graphite project Canada’s Frontier Rare Earths has filed a Canadian National Instrument 43-101 compliant technical report on SEDAR incorporating a maiden mineral resource estimate for its 70 %-owned Lurio graphite project in Mozambique.

Nipacue sequence, the Nipacue Outer (NPO) layer, was evaluated by means of a reverse circulation (RC) and diamond drilling (DD) programme in order to provide data for the preparation of a mineral resource estimate. Three areas on the NPO layer were selected for drilling, known as Nipacue North, Nipacue Central and Nipacue South. The MSA Group was commissioned to prepare the estimates for Nipacue North, Nipacue Central and Nipacue South and an Independent Technical Report for the proj- ect based on total graphitic carbon (TGC) assays from the RC and DD drill holes, den- sity measurements from cores of the 22 DD drill holes, and data from mineralogical, metallurgical and other exploration work carried out on the project. The total indicated resource is estimated at 26,4 Mt at 7,34 % TGC for 1,94 Mt of con- tained graphite while the total inferred resource is 29,7 Mt at 6,76 %TGC for 2,01 Mt of contained graphite. 

The project is located approximately 80 km south-west of the port city of Pemba in Cabo Delgado Province and contains a number of known graphite sequences. As previously reported by Frontier, a series of phased, systematic exploration activities was conducted on the project up to the end of 2014, including geological mapping, rock-chip sampling, trenching, mineral- ogical analysis, ground geophysical surveys and metallurgical test work. Previous work on the project was predominantly focused on the Nipacue graphite sequence, which was considered to be the most promising of the sequences in the project area. In 2015 the most pro- spective of the graphite layers in the

July 2016  MODERN MINING  9

MINING News

Alphamin updates Feasibility Study on Bisie tin project seen little foreign investment.

Alphamin Resources Corp, listed on the TSX-V, has reported on the results of an update to its Feasibility Study for its 80,75 %-owned Bisie tin project located in the Walikale Territory of North Kivu Province in the DRC. The Updated Feasibility Study (UFS) updates the Original Feasibility Study (OFS) (dated February 2016) and is based on an increase in Bisie’s mineral resources. “The 34 % increase in the indicated mineral resources announced on 11 May 2016 and improved tin price outlook has enhanced the forecast economic perfor- mance indicators for Bisie significantly. The improvement in profitability and extension to the life of mine (LoM), reinforces our belief that the project forms the ideal foun- dation onwhich to build amining company and associated infrastructure for mining in the tin-rich province of North Kivu,” com- mented Boris Kamstra, CEO of Alphamin. “The project is based on proven min- ing and tin recovery methods, which should make it straightforward to oper- ate, with low unit tin production costs and significant growth opportunities. Our UFS confirms our view that Bisie presents shareholders with an attractive opportu- nity to invest in one of the highest grade known tin deposit provinces in the world. “The Alphamin team has continued to

improve the economic performance indi- cators of the project through additional drilling and further engineering of the mine design and schedule. The high tin grades in the mill feed will result in excel- lent metallurgical recoveries and produce a premium concentrate for smelting. The Alphamin team is also committed to con- tributing to the stability and economic activity in North Kivu, bringing significant benefit to the community and other stake- holders alike. As a result, great progress is being made in road building and other community development initiatives.” Kamstra further emphasised that the project design also allows for a phased scale-up of production from additional exploration targets surrounding the Mpama North area. The UFS is based on an underground mine at the Mpama North orebody containing over 208 000 tonnes of tin from defined measured and indi- cated mineral resources. The process plant is designed to treat the run of mine (ROM) material using proven gravity separation methods. It is anticipated that the project will employ approximately 700 people during construction, and create approximately 450 permanent local jobs during opera- tions along with significant economic benefits in an area of the DRC that has

The UFS envisages the project imple- mentation plan being executed over a period of 18 months. Establishment of the underground mine is scheduled to com- mence in Q1 2017, with ore development and stoping beginning six months after the establishment of the mining portal. First production of tin in concentrate is anticipated in Q3 2018. The project requires an estimated initial capital expenditure of US$124,2 million to support the construction of an access road, an underground mine, a process plant, a tailings dam and associated facilities with a ROM process capacity of 360 kt/a. The mine is estimated to produce 10 750 tonnes of tin in concentrate on average per year over an almost 12-year LoM, with cash costs of production of US$7 396 per tonne tin. Mining contractors will mine the Mpama North orebody using proven underground mechanised mining meth- ods to deliver ore to the process plant at an expected rate of 30 kt/month. Bara Consulting has estimated mineral reserves (converting only measured and indicated mineral resources) of 3,52 Mt, at a grade of 4,34 % tin, using a cutoff grade of 1,8 % tin. A comprehensive programme of metal- lurgical testing was executed to support the OFS and UFS. An overall metallurgical recovery of 79 %was achieved under labo- ratory conditions. Factoring in operating conditions, operator skill levels, and an ele- ment of conservatism, an overall recovery of 72 % has been applied in the evaluation of the project economics. The process design is based on recovery of tin into concentrate through conven- tional gravity separation methods. The process plant design capacity is 500 kt/a, though Alphamin has planned to operate the plant at only 360 kt/a using feed mate- rial from Mpama North only. Alphamin believes that there are opportunities to further improve the eco- nomics of the project through continued engineering, capital cost reductions, and potential process plant engineering ini- tiatives. It says that during the next six to twelve months it will vigorously inves- tigate ways to reduce or defer capital expenditures to minimise the capital at risk to its shareholders. 

Drill pad preparation at Bisie in the DRC. Alphamin recently announced a 34 % increase in the project’s indicated mineral resources (photo: Alphamin).

10  MODERN MINING  July 2016

MINING News

ASX-listed Lucapa Diamond Company and its partners have announced the start of a drilling programme to test high-priority kimberlite targets at the Lulo diamond project in Angola. The Lulo concession cover 3 000 km 2 in Lunda Norte province and is located within 150 km of Catoca, the world’s fourth biggest diamond mine. The aim of the drilling programme is to help identify the primary kimber- lite source, or sources, of the large, high Lucapa testing kimberlite targets at Lulo value alluvial diamonds being recovered from Lulo, which include Angola’s biggest recorded diamond – a 404-carat Type IIa D-colour gem which sold for US$22,5 mil- lion in February 2016. The first kimberlite target being drilled is L259 – beneath which several large premium-value diamonds, including the 404-carat stone, have been recovered. Previous gravity and ground electro- magnetic (EM) surveys have a identified

Maiden drill programme underway by Orion Gold Orion Gold, listed on the ASX, has confirmed that the maiden drill programme at its Marydale gold project and historical Prieska copper mine zinc-copper project, both in South Africa’s Northern Cape Province, is now underway. Drilling has begun at the Marydale gold project, a virgin discovery of possible epi- thermal origin, located 60 km from the historical Prieska copper mine. Drilling will test the geological model for the miner- alisation by in-filling historical drilling at the project with oriented core drilling. Drilling is also underway at the Prieska mine zinc-copper project, focusing on near surface mineralisation at the company’s +105 Level exploration target.  a 78-108 hectare body at L259 consistent with a weathered near-surface expression of a kimberlite. The kimberlite drilling is being con- ducted using the Landcruiser-mounted Sedi drill rig purchased by the Lulo part- ners. The diamond rig can drill 61 mm diameter holes to extract core from a depth of up to 70 m. The Sedi drill rig also has auger drilling capacity. The drilling programme is scheduled to continue throughout 2016. Options being considered to expedite the programme are the addition of a second drilling rig with a deeper and wider capability. 

Drilling of the L259 kimberlite target at Lulo (photo: Lucapa).

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July 2016  MODERN MINING  11

MINING News

Disciplines unite at Wits to prepare mining for the 21st century way to developing an automated tunnel for mining at depths no longer viable or safe for humans to operate,” said Professor Cawood.

so that mining issues could be addressed in an integrated manner. “It has taken some time to achieve this, but the WMI now draws upon a for- midable battery of expertise and insights from disciplines like architecture, public health, law, global change, population migration, urban development, electron- ics and computer science,” he said. “These now augment the already substantial work being done within the School of Mining Engineering through its Centre for Mechanised Mining Systems and the Centre for Sustainability in Mining and Industry.” He said that South Africa’s deep level orebodies posed particularly difficult chal- lenges to mining operations, but argued that encouraging progress was already being made to show the path forward for both established and new operations. “Work on converting ‘indoor’ position- ing systems to underground applications is already underway, for instance, paving the

Innovative technology solutions for the struggling mining sector are the focus of a new unit at Wits University, bringing together various disciplines and headed by former School of Mining Engineering head Professor Fred Cawood. The Wits Mining Institute (WMI) will house the school’s Digital Mine project – already well advanced in developing a mock mine within the Chamber of Mines building onWits University’s West Campus – and a college network to develop 21st century skills at artisan/technician level. “The Institute’s mission is to make mining safer and more sustainable by har- nessing fast-developing technologies and practices fromdifferent sectors – which are sadly not always incorporated into mining applications quickly enough to address the industry’s many challenges,” said Professor Cawood. He said the breakthrough that the WMI hadmade was to forge working links across the university’s schools and research units,

Cutting edge software, sensors and related high-tech infrastructure were allowing developments such as real time underground airflow modelling, and access systems that could automatically exclude personnel restricted by health issues or legal compliance requirements. “This kind of intervention brings us closer to the concept of the intelligent mine, where the data required for good decisions is available in real time – and in many cases can inform automated responses that removes the risk of human error,” he said. The major funders of the digital min- ing infrastructure to date are Gold Fields, Aveng Mining, the Minerals and Education Trust Fund, Wits University, New Concept Mining and Sibanye Gold, which is cur- rently the largest sponsor. 

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MINING News

Drilling at Giro gold project yields exceptional grades

3 m at 1 260 g/t Au from 15 m; and 33 m at 6,1 g/t Au from surface including 3 m at 34,7 g/t in laterite. “These are exceptional results from this initial shallow drilling programme at our newest target at Douze Match,” com- ments Burey’s Chairman, Klaus Eckhof. “The results from hole DM-RC003 are better than anything I have seen in my Moto-Kibali experience. Finding such high grade this early on the Douze Match anomaly suggests we have discovered a potential company-making prospect where we will now focus on testing along strike and to depth. “Further drilling will continue to define the extent of the mineralisation and also target greater depths down to 100 m. While high grade occurrences are com- mon in the region, we have never seen intercepts of these exceptional grades.” The Giro gold project comprises two exploitation permits covering a surface area of 610 km² in the Kilo-Moto Belt, a sig- nificant under-explored greenstone belt which hosts Randgold Resources’ 17-mil- lion ounce Kibali group of deposits, lying within 30 km of Giro.  The industrial city of Mbeya is situated only 26 km from the project area. The reserves are reported in accordance with JORC Code (2012) and incorporate the results of the recently completed Cradle Definitive Feasibility Study (DFS) inclusive of the extensive investigations and work carried out since 2012 by Cradle and, more recently, by Panda Hill Tanzania Limited (PHT). Cradle owns 50 % of PHT which in turn owns 100 % of the project. The ore reserve estimate assumes that the project commences at a throughput of 1,3 Mt/a and is ramped up to 2,6 Mt/a after four years of production and is based on the mine designs generated from the first three pushbacks defined in the DFS. The mine will consist of an open-pit operation using conventional back-hoe type excavators loading both ore and waste onto a fleet of 90-t haul trucks. Drill and blast will be required and a bench height of 5 m has been assumed with load- ing on 2 x 2,5 m flitches. 

Diamond drilling in progress at the Giro gold project in the DRC (photo: Burey Gold).

ASX-listed Burey Gold has reported results from the first 10 RC drill holes at its Douze Match target area which lies immediately south of a dominant granite intrusion in the NW portion of PE 5049 on its Giro gold project in the Moto Greenstone Belt in the north-east of the DRC. The shallow RC

drilling programme was designed to test approximately 1 km of the soil anomaly which extends over 4 km x 2,5 km at Douze Match. Significant intercepts from the drilling include 2 m at 196 g/t Au from 12 m and 15 m at 255,6 g/t Au from 15 m, including

Australia’s Cradle Resources, listed on the ASX, has announced a maiden ore reserve estimate – 20,6 Mt at a Nb 2 O 5 grade of 0,68 % – for the Panda Hill Cradle declares maiden resource for Panda Hill niobium project in Tanzania. The proj- ect is located in the Mbeya District in south-western Tanzania, approxi- mately 650 km west of Dar es Salaam.

Bauba Platinum secures Mine Right for Moeijelijk JSE-listed Bauba Platinum reports it has successfully secured a 20-year Mine Right for chrome on the Farm Moeijelijk 412 KS from the Department of Mineral Resources. Chief Executive Officer of Bauba, Nick van der Hoven, commented: “I am very pleased to announce the fulfilment of the legislative conditions for the continuation of mining operations, beyond that permit- ted under the Small Scale Mining Permit received in November 2014, as this will enable the company in the foreseeable future to continue its pursuit of being both a cash generating chrome producer and an exploration company.”

certain parties regarding the planning of underground chrome operations on Moeijelijk which are to be undertaken under the Mine Right at an anticipated 30 000 tonnes of run of mine chrome ore per month. The company says the development of the underground mining operations may possibly commence either during the last quarter of 2016 or during the first quarter of 2017, subject to the granting of a pending Water Use Licence application and prevail- ing market conditions. The development of underground min- ing operations would run parallel with the opencast operations, consequently render- ing a significant increase in tonnages to be mined monthly. 

Bauba has, during the second quarter of 2016, also concluded discussions with

14  MODERN MINING  July 2016