Modern Mining July 2019

July 2019 Vol 15 No 7 www.crown.co.za M ODERN MINING

IN THIS ISSUE…  Ity successfully transformed  Study supports Prieska revival  Khoemacau a hive of activity  Tonota pursues graphite discovery

MODERN M I N I N G

CONTENTS

JULY 2019

ARTICLES

COVER 18 Sandvik’s interoperability gives miners the ‘big picture’ GOLD 22 Endeavour’s new-look Ity gold mine performing strongly COPPER/ZINC 26 Positive BFS supports the revival of Prieska COUNTRY FOCUS: BOTSWANA 30 Cupric’s Zone 5 mine in the Kalahari enters construction 34 First natural flake graphite discovery in Botswana 38 Tsodilo to extract second bulk sample from BK16

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

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REGULARS MINING NEWS 4

BlueRock reports record production at Kareevlei

4 5

Nedbank CIB pioneers dual-currency mining deal

Publisher of the Year 2018 (Trade Publications)

Maiden JORC resource estimate for Namibian tantalite mine

6 7

Syama achieves commercial rates of ore production

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Gem sells its Ghaghoo mine for US$5,4 million

8 Partnership seeks to boost pipeline of female engineers 10 Hylea Metals to acquire Kayelekera uraniummine 11 Strategic loan to manganese producer 12 Drilling confirms continuity of Longonjo mineralisation 13 Predictive expands its landholding in Guinea 15 North Mara achieves record monthly production 16 CPR prepared on Gakara rare earths project PRODUCT NEWS 40 Reliability leads to a repeat order for Condra 40 Osborn exports double toggle jaw crusher to Turkey 41 Fast-track solution for tailings recovery project 42 Understanding design choices for vibrating screens 42 Hydraulically driven pumps added to rental fleet 43 FLSmidth to test panels at African sites 44 Booyco’s VDS intervenes to improve safety 44 WearCheck acquires reliability testing company

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Cover Technology developed by Sandvik facilitates the sharing of data across different information systems to allow fully integrated mine manage- ment. See page 18 for further details.

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Average circulation (January–March 2019) 5339

July 2019  MODERN MINING  1

COMMENT

Kibali – a decade in the making

I was interested to see in one of the lat- est press releases from Barrick Gold that 2019 marks the 10th anniversary of Randgold’s acquisition of the Kibali gold project in the DRC from Moto Gold- mines. I have been following this project for just about as long as I have been covering Af- rica’s mining industry (20 years) and I’m in no doubt that one has to give huge credit to Rand- gold (now merged with Barrick, of course) for managing to develop not just a gold mine at the remote Kibali site but one of the biggest gold mines in the world. Kibali was not a new discovery when it was acquired. It forms part of the famous Kilo-Moto greenstone belt, where the first mine, Kilo, was opened around 1905 with the Moto gold mine following in 1911. I don’t think anyone now knows with any precision how much gold was produced from the goldfield prior to Kibali being established but I have seen a figure of 300 tonnes quoted for the period up to 1960, the year in which the colonial era ended. My understanding is that Kibali has actually been built on the site of Durba, one of the old mines dating back to the colonial period. When acquired by Randgold, the site was almost impossibly remote and I well remember doing an interview six or seven years ago with Mark Bristow, then the CEO of Randgold and now the CEO of Barrick, in which he recalled that the journey to Kibali from the border with Uganda needed six-wheel drive vehicles and could take several days. Building this vast mine, which is a combined underground and open-pit operation, must surely rank as one of the most challenging logistical exercises ever carried out for a mining project in Africa, given that almost every bit of heavy equipment had to be brought into the DRC from the ports of either Mombasa (in Kenya) or Dar es Salaam (in Tanzania). Speaking to media in Kinshasa recently, Bristow noted that Kibali – which has a workforce of around 5 000 employees and con- tractors – has now contributed US$2,7 billion to the Congolese economy. “Ten years ago, we went to a remote part of Africa and found what we believed was a real world-class opportunity but one which would require a major invest- ment as well as a lot of courage to develop,” he said. “That opportunity became Kibali, which poured its first gold in September 2013 and ramped up to full production in 2018. “We invested in the DRC without any

incentives provided by the government, only a clear and equitable mining code. Last year, however, the then Government unilaterally imposed a new code which we believe puts the Congolese mining industry at risk and could discourage future investment. We continue to engage with the Government on this issue, and were encouraged when the new President, his excellency Felix Tshisekedi, outlined his vision, of attracting foreign investment and developing the industry in a spirit of partner- ship, to Barrick’s executive chairman John Thornton at a meeting earlier this year. It is this partnership that enabled the creation of Kibali and supports Barrick’s search for new world- class gold deposits in the DRC.” The underground mine at Kibali already ranks as one of the most advanced in the global industry in terms of mechanisation and is now being developed to the next technological level, which will allow both manned and unmanned operations. The move to autonomous mining has involved the transfer of skills from expatri- ate instructors to Kibali’s predominantly – more than 90 % – Congolese workforce. Another unique feature of Kibali – which, incidentally is co-owned by Barrick (45 %), AngloGold Ashanti (45 %) and SOKIMO (10 %) with Barrick as operator – is that it is probably the only mine in Africa using hydropower on a meaningful scale. As Modern Mining reported last month (June), with the commissioning in 2018 of its third dedicated hydropower plant, Azambi, the mine now has a total hydropower capacity of 44 MW, sufficient to supply approx- imately 80 % of its power demand in the rainy season. These hydropower plants – all located within a 30 km radius of Kibali – are supple- mented by three thermal power stations able to generate 32 MW. According to Bristow, Kibali remains on track to meet or beat its 2019 production fore- cast of 750 000 ounces. This makes it a seriously big gold mine and I can’t think of another oper- ation in Africa that comes even close. Who would have thought a decade ago that such an outcome was possible, given the instability in the DRC and the almost total lack of infrastruc- ture then available to support the development of a major project? Kudos to everyone involved – in my opinion, they’ve pulled off a near mir- acle, in the process transforming a remote and neglected backwater of the Congo into a thriving new growth point. Arthur Tassell

“Ten years ago, we went to a remote part of Africa and found what we believed was a real world- class opportunity but one which would require a major investment

as well as a lot of courage to develop.”

July 2019  MODERN MINING  3

MINING News

BlueRock reports record production at Kareevlei

BlueRock Diamonds, the AIM-listed diamond producer which owns and oper- ates the Kareevlei diamond mine in the Kimberley region of South Africa, reports a record production of 3 516 carats in Q2-2019, more than four times the fig- ure for Q2-2018. Processed ore totalled 78 759 tonnes, up 130 % on Q2-2018, at a record grade of 4,46 cpht. The average price achieved was US$430/carat on sales of 2 517 carats. A 24,9-carat gem quality stone, the larg- est recovered to date at the mine, sold on

auction for a record US$190 000 in June. Earlier this year in February, BlueRock reported the recoveries of an “exceptional” 8,97-carat stone and a 16,28-carat diamond of gem quality within days of each other. In its Q2 production update, BlueRock says that since the newmanagement team started in April 2019, operational perfor- mance at Kareevlei has been transformed. Volumes are running at almost double the average monthly rates for 2018, leading to a consequent increase in the number of carats produced. Smarter mining and the

The 24,9-carat stone recovered in June (photo: BlueRock).

consequent lower dilution have also led to an improved grade and the increased volumes have resulted in the expected increase in the incidence of larger and higher grade stones. May (29 200 tonnes) and June were record months with June produc- tion exceeding 34 000 tonnes. This was achieved without the benefit of the bud- geted planned plant improvements and was largely due to the new management team introducing stronger operating disciplines, the extended working hours through the commencement of 24/7, 365‑day operations, as well as improved plant availability. BlueRock says it is confident that the near-term monthly production target of 40 000 tonnes is achievable and continues to expect that it will be operating profit- ably in the second half of 2019. Importantly, the grade from the KV1 kimberlite pipe continues to improve in part from smarter mining reducing the commitment to unlocking value across the continent and it is our belief that the collaboration with local stakeholders will benefit the local community and economy in the long-term,” says Witness Kamera at Nedbank CIB. Nedbank CIB underwrote the entire transaction and then began the process of distributing a portion of the exposure in Tanzanian shillings. Lenders who expressed interest provided non-binding expressions of interest and, based on the responses received, final commercial terms were dis- tributed to banks. In order to accommodate indigenous Tanzanian banks, their accession into the

The processing plant at Kareevlei (photo: BlueRock).

Nedbank CIB pioneers dual-currency mining deal In a landmark dual-currency deal for Tanzania, fully underwritten by Nedbank CIB, Geita Gold Mining Limited (GGML) was able to borrow US$115 million with the par- ticipation of local banks at a time when local regulations were evolving.

indigenous enterprises in the mining sec- tor. That includes the provision of financial services. Tanzanian banks have traditionally had limited interaction with the large global mines that operate in the country and typically procure financing elsewhere. In addition, foreign investment in Tanzania’s mining sector has been muted since the imposition of taxation-linked fines on Acacia Mining. “Nedbank CIB is proud to have facilitated another first for the continent in secur- ing this deal. We are more steadfast in our

GGML is one of the largest corporates in Tanzania, and one of the largest mines in the AngloGold Ashanti portfolio. The mine required project financing to expand underground operations. However, in 2018 the Tanzanian government introduced new local content regulations that sought to achieve broad-based participation of

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MINING News

Maiden JORC resource estimate for Namibian tantalite mine

dilution of pure kimberlite and, as the min- ing operations go deeper, it is expected that the dilution will reduce further. A new opencast mining contractor, Teichmann Mining (South Africa), has been appointed and should be fully operational on site by the end of this month (July). BlueRock’s management is continuing to develop and refine its mining plan in order to optimise mining across the five known kimberlite pipes at Kareevlei in line with the company’s strategy to have a higher level of flexibility in the mining operation. The company is also consider- ing ways to increase monthly production to above the current target of 40 000 tonnes a month. “I am very pleased with the impact that our new CEO at Kareevlei and his team have made,” comments BlueRock’s Executive Chairman, Mike Houston.“Whilst the management team is conscious that there are a number of milestones to reach if we are to bring real value to our share- holders, the improved grade and price per carat achieved in H1-2019 is a strong indication of the potential of the Kareevlei resource. “The immediate impact of the new team gives us confidence in our ability to take production to the next level. Once we have achieved our key objective of oper- ating the company profitably, which we expect to happen in the second half of 2019, we will explore how to increase pro- duction volumes further to the optimum level which the resource can comfortably sustain. With all this in mind, we remain on track to meet our guidance targets for 2019 and 2020.”  facilities had to be managed on a bespoke basis, unlike traditional under- written syndications. Nedbank CIB navigated lenders through the regula- tory changes and riskmitigants inherent in the transaction, giving them time to familiarise themselves with the deal. The result was a first-of-its-kind syndicated Tanzanian shillings mining transaction, using a mechanism where acceding Tanzanian shillings lenders de-risked the existing US dollar lender. It reportedly provided certainty for GGML, while sounding out the market for credit appetite among local lenders to participate in local currency. 

Kazera Global, the AIM-quoted invest- ment company which, through its stake in African Tantalum (Pty) Limited (Aftan), has an interest in the Namibia Tantalite Investment Mine (NTI) in Namibia, has announced maiden JORC (2012)-compli- ant mineral resource estimates over the Homestead and Purple Haze deposits at the mine. The combined total indicated and inferred tantalite and lithium mineral resources at Homestead and Purple Haze are estimated at 324,6 kt, with further resource upside expected to be identified. Strong grades of tantalite occur across both deposits, with an average grade of 323 parts per million (ppm) Ta 2 O 5 including 911 ppm Ta 2 O 5 in the indicated tantalum mineral resource at Purple Haze. Both deposits have higher-than-anticipated grades of lithium, with an average grade of 4 410 ppm Li 2 O, including 10 800 ppm Li 2 O in a portion of the Homestead mineral resource. According to Kazera, the Homestead resources are in line with pre-drill esti- mates, showing both strong tantalite and lithium potential for economic production with total indicated and inferred resources of 199,1 kt and an average tantalite grade of 237 ppm Ta 2 O 5 and an average lithium grade of 3 875 ppm Li 2 O across the deposit.

The Purple Haze resources are above pre-drill estimates and also show strong tantalite and lithium potential for eco- nomic production, with total indicated and inferred resources of 125,5 kt and an average tantalite grade of 459 ppm Ta 2 O 5 and an average lithiumgrade of 5 259 ppm Li 2 O across the deposit. Kazera says that further tantalite and lithium resources are expected to be added to the JORC (2012)-compliant mineral resource estimate across Tantalite Valley, through exploration at the Homestead, Purple Haze, White City and Signaalberg deposits. “We are delighted by these initial results, particularly those at Purple Haze where there exists significant opportu- nity to deliver high quantities and grades of both tantalite and lithium,” comments Larry Johnson, CEO of Kazera. “The initial resource numbers at Purple Haze were ahead of what we initially expected and we look forward to additional resources there and at White City, Signaalberg and – through additional drilling – at Homestead. “With a water supply option, govern- ment certified, via the Orange River, and a maiden JORC-compliant mineral resource confirmed, NTI continues to show the capacity to become a long-term mine for stable production.” 

The Namibia Tantalite Investment Mine in southern Namibia (photo: Kazera).

July 2019  MODERN MINING  5

MINING News

Syama achieves commercial rates of ore production

facility, a surface water management programme is in place, which is allowing the mine to intercept and remove a large volume of rainfall that would otherwise enter the mine during heavy rain events. The permanent primary ventilation system was installed and commissioned during the March 2019 quarter and has resulted in reduced re-entry times following blasts. The commissioning of the Syama Underground Automation System is now well underway with operators in the newly completed surface control room able to control underground production units over shift-change, blasting and re-entry periods, when there are no personnel in the underground mine. This represents the ini- tial delivery of one of the main benefits of automation, the ability tomaintain produc- tion over periods when operations would normally cease in a typical manual mine. The fibre optic backbone and mine- wide wireless network is now complete from the portal down to the 1055 haul- age level and is connected to the surface control room. This network enables the operation of the automated haulage loop, automated rehandle level, mine digitisa- tion and production automation, all of which allow operators to monitor and con- trol mine production in real time. A major technical characteristic of the world’s first fully automated haulage loop is the ability of Syama’s haul trucks to rapidly transition from laser-based underground navigation to surface-based differential global positioning system (GPS) navigation. Recent trials at Syama have demonstrated Resolute’s haul trucks are able to acquire the feed from the two surface GPS base stations and seamlessly lock onto satellite guidance to complete the transition to GPS navigation without any delay or speed reductions. The next phase of automation work will see the commissioning of the 1055 haul- age level with automated rehandle loaders and haulage trucks working together to load from an ore pass and truck directly to the surface ROM pad. With the fans, pump stations, con- trol room and communications network complete, the automation project is being progressively handed over to the operations team which is now at normal operational manning levels. 

The new surface control room at Syama (photo: Resolute).

Australia’s Resolute Mining, listed on the ASX and LSE, reports that its Syama Underground Mine in Mali has achieved commercial rates of ore production hav- ing mined and hauled in excess of 80 % of nameplate mine capacity. The Syama Underground Mine will reportedly be the world’s first fully auto- mated underground gold mine and, at full capacity, will produce approximately 46 000 tonnes of ore per week, or 2,4 million tonnes per year, using a fully integrated automated mine fleet. All key aspects of the mine are now operational with daily ore haulage rates regularly above 5 000 tonnes per day. Following commencement of sub- level caving in December 2018, the key elements of the ramp-up of the Syama Underground Mine consist of infrastruc- ture, development, and the automation implementation programme. “The Syama Underground Mine will transform Resolute,” comments Resolute’s Managing Director and CEO, JohnWelborn. “Achievement of sustained rates of com- mercial production from the world’s first fully automated underground gold mine is a keymilestone for Syama, for Resolute, and for the mining industry. I congratulate the Syama project team, our operations team, and all our partners on this success. We are now focused on continuing the successful production ramp up to nameplate capacity and the completion of full automation of all aspects of the sublevel cave during 2019.”

The June 2019 quarter has seen sub- stantial progress in development rates, drill and blast performance and sublevel cave drawpoint availability. This has resulted in total blasted ore tonnage mined for the current quarter increasing significantly with total tonnage for the three-month period expected to total almost 600 000 tonnes. Based on current performance, ore hauled to the run-of-mine (ROM) pad during the current quarter will total approximately 320 000 tonnes. This rep- resents more than double the hauled tonnes achieved in the March 2019 quarter (152 000 tonnes). The haulage improve- ment has been achieved by the successful development of additional production slots which has allowed the number of active stoping areas (drawpoints) to be increased from six to twelve over the course of the current quarter. As current stoping activity is occurring on the first production levels of the cave, a significant quantity of the ore blasted in the stopes is retained in-situ in order to create an ore blanket against future hang- ing wall dilution. These ore tonnes will be recovered from the lower levels of the mine. Consequently, the blasted ore ton- nage for the June 2019 quarter will exceed mined (hauled) tonnage by more than 250 000 tonnes. Underground pumping systems are now fully installed and operational. In addition to the underground pumping

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MINING News

Gem sells its Ghaghoo mine for US$5,4 million

of Botswana for its assistance during the sale process.” The Ghaghoo mine is situated near the south-eastern border of the Central Kalahari Game Reserve (CKGR). The project was acquired by Gem in May 2007 and the official opening of the mine took place in September 2014. Ghaghoo is Botswana’s first underground diamond mine with access to the kimberlite – buried under 70 m of Kalahari sand – being provided by a unique decline shaft which was con- structed using an Open Face Tunnelling Shield. The mine was placed on care and maintenance by Gem in March 2017 as a result of the weak state of the diamond market for the category of diamonds produced by Ghaghoo. 

addition, Pro Civil will assume the environ- mental liability currently associated with GDB. Subject to regulatory approvals within Botswana, the transaction is expected to be completed in the third quarter of 2019. The Government of Botswana has been consulted throughout the process and is fully conversant with the relevant details of the transaction. Clifford Elphick, Chief Executive Officer of Gem Diamonds, commented: “This sale is in line with our strategic objective to dis- pose of non-core assets. Gem Diamonds remains focused on optimising produc- tion and efficiency at the Letšeng mine in Lesotho. On behalf of Gem, we wish the Pro Civil team well for the future, and I would also like to thank the Government

LSE-listed Gem Diamonds has announced that it has entered into a binding agree- ment with Pro Civil (Pty) Ltd for the sale of 100 % of the share capital of Gem Diamonds Botswana Proprietary Limited (GDB). Pro Civil is a company registered in Botswana. GDB’s primary asset is the Ghaghoo dia- mond mine in Botswana, which it wholly owns. GDB reported a loss before tax of BPW49,5 million (US$4,9 million) for the period ended 31 December 2018 and, as at the same date, had gross assets of BWP42,3 million (US$3,9 million). Under the share sale agreement, Pro Civil will make a once-off upfront payment of US$5,4 million for the share capital of GDB. Gem Diamonds will use the sale pro- ceeds for general corporate purposes. In

The Ghaghoo mine during its operating years showing the decline (photo: Gem Diamonds).

July 2019  MODERN MINING  7

MINING News

Partnership seeks to boost pipeline of female engineers

spoke of her humble beginnings as an Anglo American bursar, to becoming the first female General Manager of De Beers’ Kimberley and Voorspoed mines. She was later appointed Senior Vice President of the Group’s Sightholder Sales in South Africa before taking over as Deputy CEO of De Beers Consolidated Mines in 2017. She has been in her current role since April 2019. “The world you are about to enter into requires passion, dedication and hard work, but you must always remember not to compromise who you are along this journey – always stick to your values. I am very proud to be part of a company that is driven by its purpose to re-imagining min- ing to change people’s lives. We are also committed to empowering women and girls and I hope you take this opportunity to learn and become the best versions of yourselves,” said Zikalala. The students were also given the opportunity to enter into the world of diamonds, interacting with various De Beers Group departments such as De Beers Group Technology, Exploration, Innovation (Ignite) and Element Six. The evening ended with a simulation exercise that tested their problem-solving skills and teamwork. In August this year a series of half-day GirlEng #AskAnEngineer workshops will begin, facilitated by engineers, students and the WomEng team. Each session will target 200 girls in schools around De Beers Group’s operations. The first is in Musina, South Africa, followed by sessions in Windhoek, Namibia, and Orapa and Jwaneng in Botswana. completed to date, we are extremely pleased with the results as they have sig- nificantly extended the footprint of the three Kari discoveries. Moreover, these results boost our confidence that maiden resources will be delineated for Kari West and Kari Center before year-end. We look forward to continuing to build on our recent value creation success, as noted with the recently published maiden reserve at Kari Pump which was discovered at a cost of less than US$13,50/oz of reserve.” The Kari anomaly covers an area 6 km long by 3 kmwide and is located 7 kmnorth- west of the Houndé processing plant. 

WomEng Fellowship Programme participants (photo: De Beers).

Beers Group, Unilever and EY, is designed to strengthen the students’ employability and leadership skills and cultivate innova- tive entrepreneurial thinking through the WomEng Innovation Challenge. Students are challenged to develop an engineer- ing business solution to meet the UN’s Sustainable Development Goals. De Beers Group hosted 60 female pre-and-post graduate engineering stu- dents from South Africa, Botswana and Namibia at its Johannesburg Head Office on Thursday, 4 July 2019 to learn more about De Beers Group and the diamond value chain. The students were hosted by Managing Director of De Beers Group Managed Operations, Mpumi Zikalala, who took the aspiring female engineers through her journey in the mining industry. Zikalala prising 104 000 m has been drilled since November 2018 over the large Kari gold- in-soil anomaly, totalling over 300 000 m since drilling began in 2017. The ongoing exploration programme has continued to be highly successful as approximately 85 % of holes drilled encountered meaningful mineralisation, resulting in the extension of all three discoveries made in the Kari area. Comments Patrick Bouisset, Endea­ vour’s Executive President Exploration and Growth: “With more than half of the 2019 planned 195 000-m drilling programme

De Beers Group is investing US$315 000 over three years in programmes that aim to encourage young women to study STEM (science, technology, engineering and mathematics) subjects and to pursue engi- neering careers in South Africa, Namibia and Botswana. Katie Fergusson, Senior Vice-President Social Impact, De Beers Group, said:“With a global shortage of engineers, and women representing only 11 per cent of the engi- neering workforce, attracting more young women into engineering is vital. In our fast-changing world, we need diversity of thought to find new solutions, so we are therefore thrilled to be able to partner with WomEng and play a role in supporting the next generation of talented engineers who will play a critical role in shaping the future.” The programme, in partnership with De

Endeavour extends ‘footprint’ of Kari discoveries Endeavour Mining, listed on the TSX, has announced that an ongoing exploration programme at its Houndé mine in Burkina Faso has significantly extended mineralisa- tion at all three discoveries in the Kari area, boosting confidence that maiden resources will be delineated before year-end.

The Kari anomaly, which now extends over a very large area measuring 6 km long and 3 kmwide, hosts three recent discover- ies (Kari Pump, Kari West and Kari Center) with approximately 25 % of the target still to be drilled. A total of 1 027 holes com-

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MINING News

The sessions are designed to create awareness of the importance of STEM subjects and to provide the students with practical tools and routes to access engi- neering and technology careers. They will be followed by a regional GirlEng pro- gramme, where 60 students chosen from the earlier sessions are eligible for a spon- sored two-day Innovation Boot-Camp in Johannesburg in March 2020. Students will also be provided with support for univer- sity and scholarship applications, as well as exposure to mining environments. WomEng, founded in South Africa in 2006, has run programmes in 19 countries and reached more than 50 000 girls and women studying STEM subjects. They are currently partnering with UNESCO on their #1MillionGirlsinSTEM goal. Aditi Lachman, WomEng Programme Coordinator, said: “The event, hosted by De Beers Group, solidified our WomEng-De Beers Group relationship and collective commitment to developing young engi- neering leaders with skills of the future. The future looks bright and we are excited.” 

New road link for Kamoa-Kakula copper project With the onset of the dry season in the DRC, Ivanhoe Mines, listed on the TSX, reports that fast progress is being made on the construction of the new highway directly linking the Kamoa-Kakula copper project to Kolwezi airport, located south-east of the city of Kolwezi.

system, via a planned new border crossing. This proposed heavy-haul route to Zambia would significantly streamline truck freight to and from Kamoa-Kakula. The Kamoa-Kakula joint venture is con- structing 19 kmof the roadwhile the Lualaba provincial government is constructing the remaining 15 km under a toll concession agreement with a DRC-based contracting company. The toll road will also include a new northbound, 9 km section of road con- necting all the mines on the western side of Kolwezi to the new provincial road. A separate 8 km, private mine access road is also being constructed by the Kamoa-Kakula joint venture at Kamoa- Kakula to safely by-pass the villages of Israel and Kaponda. This road is also expected to be fully operational by the end of 2019 and will connect the Kakula mine directly to the new 34 km provincial road. The private mine road will be available for transporting ore mined elsewhere on the Kamoa-Kakula project to the Kakula concentrator for processing. 

The new 34 km, east-west road is over 25 % complete and is expected to be fully operational by the end of 2019. It will significantly improve Kamoa-Kakula’s trans- portation corridor that is being used to bring in mining equipment and construction materials, and that will be used to transport copper concentrates. The new road will also improve the safety and commuting time for employees between Kamoa-Kakula and Kolwezi and Lubumbashi, as well as for mine visitors arriving at Kolwezi airport. The road will provide Kamoa-Kakula with a direct, high-quality connection to the national road between Kolwezi and Lubumbashi, and to a proposed, new south- bound provincial road that will connect to Lumwana, Zambia and the Zambian rail

July 2019  MODERN MINING  9

MINING News

The Kayelekera uraniummine during its days of operation (photo: Paladin Energy).

Hylea Metals to acquire Kayelekera uraniummine tion plant. The operation is currently on care and maintenance with all assets – including a 1,5 Mt/a processing facility – maintained in good standing.

to include around 91 000 tonnes at an aver- age grade of 2,27 g/t gold, equating to approximately 6 500 oz of contained gold with a recovery of 73 %. The total plant feed from the mining operation and the Akrokeri Tailings will be approximately 2,26 Mt with an average grade of 1,2 g/t gold, giving total ounces to the plant of approximately 88 500 oz. The heap leach facility will recover, in total, approximately 72 000 oz, giving an overall Life of Mine (LoM) recovery of approximately 81 %. The LoM is estimated at five years with an average all-in cost, that includes capital plus cash costs, of US$852/oz.  commercial production being achieved in 2010. In February 2014, Paladin placed Kayelekera on care and maintenance due to the low uranium pricing. Internal stud- ies determined that an improved uranium market would provide an opportunity for Kayelekera to restart and again produce uranium from its remaining resource.  optimistic about the global uranium mar- ket and the outlook for firmer pricing,” said HCO Managing Director Simon Andrew. Kayelekera is located in northern Malawi, 52 km west (by road) of the town of Karonga. Paladin permitted, con- structed, commissioned and operated Kayelekera, designed to produce 3,3 Mlb/a of U 3 O 8 , between 2007 and 2014, with

ASX-listed Hylea Metals Limited (HCO) has entered into an agreement with ASX-listed Paladin Energy to acquire a 65 % interest in the Kayelekera uranium project in Malawi. The remaining 35 % is held by HCO’s joint venture partner Chichewa (20 %) and the Government of Malawi (15 % ). HCO will have an option to acquire a further 20 % interest in Kayelekera from Chichewa Kayelekera hosts a high grade resource with an existing open-pit mine and has demonstrated excellent metallurgical recoveries (87,5 %), having historically pro- duced over 10,9 MIb of uranium between 2009 and 2014. Significant infrastructure is already in place including a resin-in-pulp extrac-

Homase Trend, either side of the previously mined Homase pit, to generate cash flows to fund the further development of AKHM. The DEP estimates that the mine- able resource from the proposed mine is approximately 82 000 oz of contained gold in oxide ore with a projected 82 % recovery from 2,17 Mt of oxide ore at an average grade of 1,2 g/t gold. This mineable resource is part of the AKHM JORC resource of 602 000 oz. Goldstone is proposing to also place tail- ings from the former Akrokeri underground mine (Akrokeri Tailings), which it estimates In FY-2013, the open-pit mine produced 1,07 Mt of ore at an average grade of 1 350 ppm U 3 O 8 with an annualised strip- ping ratio of 3:1. “The acquisition of 65 % of Kayelekera is an excellent opportunity for HCO. Kayelekera is a world-class uranium asset that has produced over 10,9 MIb of ura- nium and represents an opportunity to use the past production information to re- engineer certain mining and processing processes in order to reduce the overall capex and opex of the operations. We are

Goldstone plans low-cost mining operation AIM-listed Goldstone Resources has submit- ted the results of the Definitive Economic Plan (DEP) prepared for its Akrokeri-Homase gold project (AKHM) in Ghana to the GhanaianMinerals Commission for its review and approval. This is an important step as it demonstrates the viability for a low-costmin- ing operation, as the company seeks tomove rapidly towards establishing its first operat- ing mine within the Homase Trend.

The DEP sets out the basis for a low-cost (US$6,5 million capex) heap leach process- ing facility to process material from three satellite open pits lying along the known

10  MODERN MINING  July 2019

MINING News

Strategic loan to manganese producer time with Otjozundu that may be in the best mutual interests of both parties.

tance and guidance Premier will progress to this point as well.” The Otjozundu project is located some 150 km north-east of Windhoek and is in a well-known and established manganese district that has been largely consolidated under Otjozundu, whose tenements cover an area of approximately 1 367 km 2 and more than 114 km of strike, of which only 14 km has been explored to the point of declaration of a JORC resource. Otjozundu operations are continuous from a number of open pits in an owner- miner environment. Processing to the extent necessary is through a crush, screen and jig plant. All plant and equipment are owned by Otjozundu. Otjozundu is wholly owned by MNH, which acquired the project from Shaw River Manganese Limited for A$4,95million in 2018. Otjozundu is currently exporting 4 500 tonnes of lump ore per month at bet- ter than 35 % Mn, equivalent to not less than 150 000 dmtu (dry metric ton units) per month. Current monthly gross revenue generated exceeds US$750 000. 

AIM-listed Premier African Minerals has announced a strategic loan toMNHoldings Limited (MNH), the owner and operator of the Otjozondu manganese mining project in Namibia, and the appointment of two key mining executives as consultants to Premier. Premier, whose assets include the RHA tungsten mine and Zulu lithium and tan- talum project in Zimbabwe, and Cambrian Limited have jointly agreed to loan to MNH US$1,35 million with an annual inter- est of 10 %. George Roach, CEO of Premier, com- mented:“Otjozundu is a producing revenue generating manganese mine based in Namibia currently involved in an expan- sion programme. The loan to Otjozundu will enable it to conclude the purchase of significant additional plant and equip- ment from the nearby Purity mine to allow Otjozundu to steadily increase production and revenues. I sincerely expect that this loan may lead to a closer relationship in

“An additional immediate benefit to Premier is the appointment of Neil Herbert, the Chairman of Otjozundu, and Peter Cunningham as consultants to Premier. In due course, Premier intends to invite both Neil and Peter to join the Board of Premier, subject to the satisfactory completion of standard regulatory checks in compliance with the AIM rules. These initial appoint- ments are part of the process of enhancing the company’s executive team and creat- ing opportunities to assist Premier in the restructure and diversification of country and commodity risk I have been discuss- ing and have alluded to for some time now. “Premier must move from a company dependent on continuous funding through shareholder support to one that can be rev- enue producing and start to return value to shareholders. Both Neil Herbert and Peter Cunningham have a demonstrable history of just this and I hope that with their assis-

July 2019  MODERN MINING  11

MINING News

Drilling confirms continuity of Longonjo mineralisation

are significant as they add further proof of the existence of arcuate mineralised ring dyke structures around the margins of the circular carbonatite. “Several kilometres of this prospective contact zone have yet to be drill tested and offer further upside potential to the weath- ered zone mineralisation at Longonjo.” Pensana has appointed international engineering company Wood Group to execute the PFS for the expedited devel- opment of the Longonjo NdPr project. Wood Group previously undertook the Scoping Study for Longonjo and has an experienced rare earth mining and development team. The study will focus on the delivery of a low capital cost open- pit mining and processing operation which will export flotation concentrates to customers in China via the recently upgraded Benguela rail line and the Atlantic Port of Lobito. The project lies just 4,3 km from the sealed national highway and rail line that run from the port at Benguela, 200 km to the west, to the provincial capital of Huambo, 60 km to the east. A power transmission line from the Gove Dam hydroelectric power plant cur- rently extends to Caala, 38 km to the east of the project. 

Pensana’s Chairman, Paul Atherley, explaining the Longonjo development strategy earlier this year (photo: Pensana).

ASX-listed Pensana Metals has reported the final results from the recent infill and exploration reverse circulation (RC) drilling programme at the Longonjo NdPr project located in an infrastructure-rich region of Angola. Neodymium and praseodymium are commonly referred to as NdPr and are elements most commonly used in the creation of high-strength per- manent magnets. The results have confirmed

intersections confirm the continuous nature of the near surface blanket of weathered zone NdPr mineralisation in the area targeted for initial open-pit mining in the Preliminary Feasibility Study,” com- ments Pensana Executive Director Dave Hammond. “The results from the exploration holes

the continuity of high-grade weathered mineralisation from surface. The infill RC drilling was completed to support a revised Mineral Resource Estimate (MRE) for the high-grade weath- ered zone mineralisation at Longonjo. An updated MRE has com- menced in support of the Preliminary Feasibility Study (PFS) which is scheduled for completion in September 2019. Exploration drilling on the southern margin of the car- bonatite has identified a thick zone of weathered mineralisa- tion which remains open along strike for 550 m to the east and requires further drilling to evalu- ate its full potential. “ These high-grade NdPr

An RC drill rig working at Longonjo (photo: Pensana).

12  MODERN MINING  July 2019

Predictive expands its landholding in Guinea

highlighted the Kaninko area during its terrain-scale assessment of the Siguiri Basin in late 2018. Company geologists will commence initial low-cost geological mapping and geo- chemical sampling of artisanal sites shortly and follow-up with regional stream sediment sampling when water levels fall sufficiently for that to be possible. The Authorisation contains at least one significant artisanal mine site consisting of extensive pitting into weathered bedrock over several hectares with shallow surficial workings in lateritic cover material extending for hundreds of metres away from the pitted area. Other artisanal sites are reported on the property but have yet to be examined. 

ASX- l i s ted Pred i c t i ve Di s cove r y ha s announced that it has been granted a new Reconnaissance Authorisation cover- ing 100 km 2 over the Kaninko project near the town of Kouroussa in the Siguiri Basin, located in Guinea. The tenement is located approximately 10 km from the Cassidy Gold Kouroussa gold deposit. With five projects covering 500 km 2 of highly prospective landholdings, Predictive is currently undertaking multiple early-stage exploration programmes across its portfolio of 100 %-owned Guinean projects with encour- aging initial results so far from its Kankan and Nonta projects. Utilising its Predictore™ system, Predictive

Artisanal workers on the Kaninko Reconnaissance Authorisation, located in Guinea (photo: Predictive).

Xinhai committed to Namibia’s Kombat project Trigon Metals Inc, listed on the TSX-V, has provided an update on the investment and engineering, procurement and construction (EPC) process with Shandong Xinhai Mining Technology & Equipment Inc (Xinhai).

of the capital requirements of the project by way of debt financing through Chinese export credit facilities. In May 2019, representatives of Xinhai visited the Kombat site and undertook an extensive on site review. Following the site visit, Xinhai has confirmed its commitment to Trigon and the proposed transaction. Xinhai has also reiterated its confidence in the project, highlighting several areas of potential upside including plant efficiencies, exploration potential and life of mine. According to Trigon, Xinhai has a proven track record of successful implementation of large-scale engineering and construc- tion projects in Africa and is well placed to partner with Trigon to support the restart of mining at Kombat. 

As announced previously, Trigon has entered into a non-binding Memorandum of Understanding (MoU) with Xinhai. In terms of the MoU, Xinhai has agreed to invest in Trigon, in exchange for the right to be appointed as the EPC contractor for the open-pit mining operations at Trigon’s Kombat copper project in northern Namibia. Xinhai has also agreed to invest up to 10 % of the capital requirements of the proj- ect by way of providing services in exchange for equity in Trigon, and will further assist Trigon in securing up to an additional 80 %

July 2019  MODERN MINING  13

MINING News

North Mara achieves record monthly production

In its Q2-2019 Production Results, LSE- listed Acacia Mining, which operates three mines in north-west Tanzania, reports that gold production for the quarter was 19 % higher than the prior year period, mainly due to 39 % higher production at North Mara, offset by expected reductions in production at Buzwagi and Bulyanhulu. Gold sold during the quarter amounted to 143 325 ounces. This was 10 % below production due to the timing of gold shipments from North Mara which were weighted towards the end of June. “I am pleased to announce that Acacia achieved a 51 % increase in production in the second quarter of 2019 compared to Q1-2019, following the successful imple- mentation of our revised mining plan at North Mara for both the underground and open-pit mines which saw production at the mine increase by 80 % over the period,” said Peter Geleta, Acacia’s Interim Chief Executive Officer. “Overall, we achieved gold production of 158 774 ounces in Q2-2019 with a par- ticularly strong quarter from North Mara, which set a monthly production record of 47 849 ounces for the month of June. We remain confident of achieving production within our guidance of 500 000 to 550 000 ounces for the year. I would like to thank our people who have made this possible, delivering a strong second quarter across all three of our mines despite the contin- ued challenging operating environment.” At North Mara, after successfully addressing the unanticipated produc- tion issues experienced in Q1-2019, gold production for Q2-2019 rose sharply to 119 113 ounces, 39 % higher than the prior year of 85 920 ounces. This improvement was driven by the mining of higher grade areas at the Gokona underground mine as well as increased volumes at higher grades from the Nyambirama open-pit mine, combined with a 4,0 % improvement in throughput and a 1,7 % improvement in plant recovery rates. North Mara achieved a head grade of 5,4 g/t during the second quarter of this year compared to 4,1 g/t in Q2-2018 and 3,0 g/t in Q1-2019. Notably Q2-2019 production was 80 % above Q1-2019 pro- duction of 66 324 ounces, with Q1-2019 having been negatively impacted by the fall of ground at the Gokona underground

The North Mara mine is a combined open-pit and underground operation (photo: Acacia).

mine being placed on reduced operations in late 2017. Acacia, which is in a long-running dis- pute with the Tanzanian government over tax payments and other issues, has Barrick Gold as its majority shareholder. In May this year, it received an indicative proposal from Barrick regarding a possible offer for the entire issued and to be issued share capital of the company not already owned or controlled by Barrick. The company recently announced a mid-year mineral reserve and mineral resource update for its Gokona mine at North Mara which adds to the long-term potential of this underground operation. Mineral reserves as at end May 2019 increased by 13 % in comparison to year- end 2018 from 1,12 Moz of gold at 5,6 g/t to 1,26 Moz of gold at 5,5 g/t. This was pri- marily driven by the successful additional drilling on the East and West extension at Gokona in Q4-2018 and Q1-2019, offset by mining depletion and a more conservative change in assumptions for crown pillar stope recovery. Measured and indicated mineral resources increased by 63 % from 75 koz of gold at 3,3  g/t to 122 koz of gold at 3,6 g/t. Inferred mineral resources increased by 65 % from 515 koz of gold at 6,5 g/t to 849 koz of gold at 5,4 g/t following the increase in drill density and confidence levels in the deeper areas of the deposit. 

mine and an excavator breakdown in the Nyambirama open pit. During the quarter, the Gokona underground mine commenced ore development in the high grade GB2 area, which is the faulted offset continuation of the high-grade Golden Banana zone that has been mined since 2015. Ounces from ore development and the first stope were extracted in June, which produced approximately 20 000 ounces of contained gold at a grade of 27,5 g/t. Further stop- ing in GB2 is scheduled in Q3-2019 and is expected to support the current higher production volumes. Buzwagi gold production of 30 283 ounces for the quarter, although 19 % lower than the prior year of 37 415 ounces, was in line with expectations and 6 % higher than Q1-2019 production of 28 577 ounces. Bulyanhulu produced 9 377 gold ounces for the quarter which was in line with expectations, although 10 % lower than the prior year of 10 443 ounces and 6 % lower than Q1-2019 production of 9 999 ounces. Q2-2019 production was impacted by the expected lower grades recovered from the retreatment of tail- ings and the resultant lower recovery rates, partly offset by improvements in plant throughput. All production contin- ued to be produced from the retreatment of tailings as a result of the underground

July 2019  MODERN MINING  15

MINING News

CPR prepared on Gakara rare earths project

LSE-listed Rainbow, the Rare Earth Element (REE) mining company which holds the Gakara project in Burundi, has received a Competent Person’s Report (CPR) from MSA dated 4 June 2019. Gakara is one of the highest grade (47 %-67 % Total Rare Earth Oxide) rare earths projects globally and the only African producer. The full text of the CPR contains a review

of the company’s recently announced strat- egy to invest in the opening of additional mining areas and new mining machinery and endorses Rainbow’s strategy on the assumption that risk areas identified in its report are addressed In addition, MSA has increased its estimation of the high-grade rare earth vein tonnages classified by JORC as an

Exploration Target from 20 000 – 80 000 tonnes at the time of Rainbow’s IPO in 2017 to 27 000 – 103 200 tonnes, an increase of 30 % at the mid-point of the range even taking into account the depletion from recent mining production. MSA is of the view that some additional work is required before it could translate its calculations for the Exploration Target into a resource. Specifically for the high-grade deposits, it suggests more extensive use of laboratory testing of channel samples (rather than hand-held Niton XRF data which Rainbow has used for a number of years) and additional computerised vein modelling; and for the lower grade deposits such as Kiyenzi a comprehensive laboratory sampling of all existing drill core from the 2018 drilling campaign plus addi- tional drilling and metallurgical testing. All these activities are planned by Rainbow in the coming months. Rainbow began production of rare earth concentrates in Q4-2017 and has a ten-year distribution and offtake agree- ment with multinational thyssenkrupp Materials Trading secured for the sale of at least 5 000 t/a of concentrate produced. The Gakara ‘basket’ is weighted heavily towards the magnet rare earths, including neodymium and praseodymium, which are driving demand and account for 70 % of annual global REE sales due to their use in vital components in motors, generators, wind turbines and electric vehicles.  Comments Sean Gilbertson, Gemfields’ CEO: “We have enjoyed a sound and suc- cessful partnership with Mwiriti at the Montepuez ruby mine and we look forward to furthering our joint understanding of these new licences. While the opportunities are early stage, secondary gold mineralisa- tion has been observed and recovered in small quantities from several areas within the licence portfolio and these will therefore constitute our key focus in the year ahead. “Gemfields remains a company focused on emeralds, rubies and sapphires mined in Africa. However, given their proximity, the relative ease of mobilisation, our long- standing relationship with Mwiriti and the mineralisation observed on site to date, we feel it is important to fully investigate the possible upside potential of these licences for our shareholders.” 

The Gasagwe mining area, part of the Gakara project (photo: Rainbow).

Gemfields in JV to explore greenfield licences JSE-listed Gemfields (formerly Pallinghurst Resources) has announced that it has agreed to establish a joint venture (JV) company with Mwiriti Limitada, a Mozambican-registered company, in order to explore and progress opportunities aris- ing from 12 greenfield licences presently held by Mwiriti.

view to building on the successes achieved in Mozambican rubies, where Gemfields and Mwiriti’s collaboration brought con- siderable benefits to both the regional economy and local communities. Mwiriti will contribute six applications for mining concessions and six exploration licences for gold and assorted minerals. Mwiriti will receive from the JV an advance payment of US$3 million against Mwiriti’s share of future earnings arising from the operations of the new JV. The licences, which begin as little as 20 km from MRM’s existing operations, include an extension of the known Montepuez ruby belt with both secondary gold incidence and primary corundummin- eralisation having been observed.

The new joint venture company will be incorporated in Mozambique with Gemfields owning 75 % and Mwiriti 25 %. Mwiriti is Gemfields’ existing partner in Montepuez Ruby Mining Limitada (MRM) in which Mwiriti also owns 25 %. Under the terms of the JV agreement, Gemfields will contribute its proven explo- ration and project development experience together with appropriate financing with a

16  MODERN MINING  July 2019