Modern Mining June 2015

June 2015 Vol 11 No 6 www.crown.co.za M ODERN MINING

IN THIS ISSUE…  Tungsten project enters production  Miners meet in Gaborone  Gold resurgent in West Africa  Asanko Phase 2 looking good  Underground mine planned at Syama

MODERN M I N I N G

CONTENTS

ARTICLES

MINING NEWS 4 RHA tungsten project produces its first concentrates 5 Kipoi plant notches up record production in May 6 Good progress reported on trial mining at Baoulé 7 Canadian accolade for Hatch Goba Chairman 8 Armadale signs agreement on Mpokoto development 10 Another BME blasting record in Zambia 11 Vibrating equipment supplier seals empowerment deal 12 Lucapa secures funding for new fleet of Caterpillar equipment 14 Encouraging results from Buckreef heap leaching 15 Positive feasibility study completed on Balama 16 Zandkopsdrift PFS points to a“robust”project PRODUCT NEWS 55 Hybrid roll crushers prove themselves at SA colliery 56 SlurrySucker allows easy removal of silt and sediment 57 Cat 12K grader – the latest in a long series 58 Shantui open day confirms commitment to local market 59 Bell introduces 6x4 configuration for B25E 61 Multotec successfully relines Copperbelt mills 62 Joint venture company to specialise in large fans 63 Ultra-compact hoist ideal for confined spaces 64 More than 300 units now in SPH Kundalila’s fleet 32 Miners meet in Gaborone FEATURE – MINING IN AFRICA 34 Gold resurgent inWest Africa 44 Asanko’s Phase 2 expansion will more than double production 51 Revised PFS delivers boost for underground mining at Syama REGULARS COVER 18 MK Africa expands its civils base in mining PLATINUM 22 Mechanised mining skills on display at Eastern Limb mine GOLD 26 PEA projects three-year payback for Fair Bride TECHNOLOGY 31 SA-designed belt reeler is a world-beater EVENTS

Editor Arthur Tassell

Advertising Manager Bennie Venter e-mail: benniev@crown.co.za

Design & Layout Darryl James

Circulation Karen Pearson Publisher Karen Grant

4

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,

12

Bedfordview, 2008 Tel: (011) 622-4770 Fax: (011) 615-6108 e-mail: mining@crown.co.za www.modernminingmagazine.co.za

18

COVER A Cat 938K wheel loader, supplied by Barloworld Equipment and owned by MK Africa, loads material from the mine waste stockpile at the Modikwa platinum mine . See page 22 for further details.

34

44

Average circulation (October–December 2014) 4 248

June 2015  MODERN MINING  1

COMMENT

Resource sector under the spotlight in Gaborone

T he Botswana Resource Sector Con- ference held earlier this month (June) in Gaborone was less up- beat than usual – I speak from ex- perience, having attended 10 of the twelve conferences so far held – but was nevertheless very rewarding, with several ex- tremely interesting presentations being given by the likes of Debswana, Lucara Diamonds, Petra, Gem Diamonds Botswana and Khoema- cau Copper Mining. On the downside, I was a bit disappointed that there was no speaker from BCL, which has now taken over the Tati Nickel operation from Norilsk, or from Kimberley Diamonds, which is working on re-opening the Lerala diamond mine near Martin’s Drift. (Sadly, a day after the conference ended, Kimberley Diamonds announced an incident at the mine which resulted in the death of a member of the care and maintenance team.) The conference was attended by approxi- mately 320 delegates. Though well short of the record attendance last year of 400 or there- abouts, this was a very respectable figure given present conditions in the mining industry. The keynote address was given by Botswana’s Minister of Minerals, Energy and Water Resources, Onkokame Kitso Mokaila, who has held the position since 2012. It was good to see that he stayed on after his presentation, listen- ing intently to many of the other speakers. I suppose if I had to single out one project as being of particular significance it would be the new Khoemacau copper mine of Cupric Canyon Capital subsidiary Khoemacau Copper Mining. This is the only real big mining project on the immediate horizon in Botswana and is due to go into construction next year. Johannes Tsimako, Khoemacau Copper Mining’s Regional Manager, gave an update on the project and explained it could well become a bigger enterprise than originally envisaged, with consideration being given to a 5,5 Mt/a operation – a very signifi- cant increase on the 3,6 Mt/a production rate proposed in the existing mine plan. The neighbouring Boseto operation devel- oped by Discovery Metals is now on care and maintenance and Cupric has put in an offer for Discovery’s assets in Botswana, which include a modern processing plant which has seen less than three years of use. If successful (as I suspect it will be), the bid could change Khoemacau’s present plans to build a new con- centrator at its Zone 5 site. Khoemacau Copper Mining, incidentally,

had a very strong presence at the conference, with its contingent of delegates being led by Sam Rasmussen, who heads Cupric Africa, mandated to manage and grow Cupric Canyon’s copper interests in this part of the world. Sam, like many of his colleagues within Cupric, is a veteran of Phelps Dodge and its successor, Freeport McMoRan, and his African experi- ence has included a stint as GM of the Tenke Fungurume copper mine in the DRC. A company coming up fast behind Khoemacau is Australia’s MOD Resources, which is the second largest landholder within Botswana’s Kalarai Copperbelt. I chatted to Jacques Janse van Rensburg, the company’s GM Exploration (Africa), at the conference and he was highly positive about MOD’s prospects of developing an underground mine at its Mahumo deposit. Jacques is an expert on the Kalahari Copperbelt and prior to joining MOD at the end of 2011 was Project Manager for Hana Mining, the predecessor of Khoemacau Copper Mining (Cupric acquired Hana in 2012). The biggest player in mining in Botswana is, of course, Debswana and at past confer- ences it has not always been represented by its top executives. This year was different with its presentation being given by its MD, Balisi Bonyongo. Although he has only held this position since the beginning of last year (when he took over from James Gowans), he has an unparalleled knowledge of the group, having joined it more than 20 years ago. He gave an exceptionally clear exposition of Debswana’s strategy which we’ll look at in more detail in next month’s issue. There was no presentation on gold at the conference but I did bump into my old friend, Charles Byron, who is Chief Geologist and also a Director of Galane Gold, which owns the Mupane gold mine near Francistown. Charles gave me an update on the Mupane operation and also discussed Galane’s proposed acquisi- tion of Galaxy Gold, which owns assets in the Barberton greenstone belt in South Africa. Finally, I very much enjoyed the presenta- tion given by an old acquaintance of mine, Dr Leon Daniels, who I first met nearly 15 years ago when he was running a tiny gold operation known as Somerset, north of Francistown. He is actually a diamond rather than a gold expert and he gave a typically provocative talk on dia- mond exploration, which I’ll be hoping to cover in more detail next month. Arthur Tassell

Cupric is one of several bidders for Discovery’s assets in Botswana, which include a modern processing plant which has seen less than three years of use.

June 2015  MODERN MINING  3

MINING News

RHA tungsten project produces its first concentrates

AIM-quoted Premier African Minerals Limited says that the first concentrates have been produced at its flagship RHA tungsten project in Zimbabwe. The proj- ect is located in the Kamativi tin belt of north-western Zimbabwe and Premier is planning two stages of development – a first phase, low capex (US$4,8 million) open pit, which provides an 18-month life of mine, followed by an undergroundmine (capex estimate – US$14,7 million) based on mechanised long-hole open stoping. The open-pit annual production will be 96 000 t (ROM) while the underground production rate will be between 192 000 and 288 000 t (ROM). The production of the concentrates fol- lows hard on the heels of the delivery of the process plant to the site in May. The plant was designed and manufactured by Appropriate Process Technologies (APT) of Johannesburg, who were also responsible for assembly on site and commissioning. The earthworks and civil works programme was successfully fast tracked to ensure that the site was ready for offloading of the plant. Development of the open-pit mining

Trucks carrying the process plant arrive on site at the RHA tungsten project on 22 May (photo: Premier African Minerals).

area remains on schedule, with waste strip- ping underway and run of mine ore being stockpiled. According to Premier, visible mineralisation continues to confirm the geological model. The process plant is designed to meet a throughput of 16 t/h or 8 000 tonnes per month and achieve a wolframite recov- ery of 82,8 %. The stated production rate excludes any consideration of a pre-con-

centration circuit which, if implemented in future, could increase the plant through- put fivefold at a 20 % recovery loss as determined in the metallurgical test work announced on 10 September 2014. Intermittent small scale mining has been conducted at RHA and the adjacent Tung mine (which Premier has an option to acquire) 5 km away. Between 1931 and 1979 the mines jointly produced 1 247 tonnes of WO 3 in wolframite concentrate at a reported average concentrate grade of 65 %WO 3 , i.e., approximately 1 919 tonnes of wolframite concentrates. Infrastructure from the historic mining includes a vertical shaft, numerous adits and some under- ground development. Premier announced in March this year that it had completed an off-take agree- ment with Noble Resources International for the sale of wolframite concentrates from the mine. Under the agreement, Premier will supply 500 tonnes of concen- trate over an anticipated initial six-month period whereafter Noble will have a right of first refusal of all future concentrates provided it matches terms offered by other parties. Concentrates are sold in metric ton units (‘mtu’) where one mtu is 10 kg of tungsten trioxide (WO 3 ) contained in a concentrate at a declared percentage, normally 60 % to 65 % being a common reference point. Premier anticipates pro- duction during the open-pit phase of the RHA mine of approximately 5 800 mtu per month of WO 3 contained in a concentrate at an average grade of 63 %. 

Open-pit operations at the project site (photo: Premier African Minerals).

4  MODERN MINING  June 2015

MINING News

Kipoi plant notches up record production in May

275 000 4E ounces per year. Since 2012 operating costs have con- tinued to escalate in Rand terms. As a result of increased estimated costs of construction, regulatory changes now requiring the installation of a vinyl liner for the tailings storage facility, declines in market prices for metals and delays to ramp up plans, peak funding is currently estimated to have increased by approxi- mately 2 % to US$514 million.  During May 2015 Tiger energised the recently installed 30 MVA transformer, which is now being run up to provide grid power to Kipoi. This is a key milestone amongst a number of power supply initia- tives Tiger is currently implementing.  25 kt/a copper cathode operation. The Kipoi operating team is now realis- ing the price benefits resulting from the growing supply of sulphuric acid available in the Southern African markets. Sulphuric acid is the principal reagent used to irri- gate the heap leach pads and is the second largest component of processing costs at Kipoi. Whereas 2015 budgets were set using US$365/t as the assumed price for acid, long-term contracts have recently been entered into for delivery at a cost of approximately US$235/t. The future price of sulphuric acid remains under significant downward pressure.

7 and 11 is in progress and the Meren- sky stockpile amounts to over 100 000 tonnes of material. At the South mine, the Merensky Reef has been inter- cepted with mining in progress. First production from the Project 1 mine is expected in the fourth quarter of this year with a two-year ramp-up required to reach steady-state production of Tiger believes the combination of items 2 and 3 alone could increase monthly pro- duction from the SX/EW plant by as much as 30 % for a very modest capital out- lay, and the debottlenecking initiatives are both complementary and indepen- dent of any potential future expansion of operations at Kipoi from the current be debottlenecked to increase production and reduce operating costs. These initiatives will be assessed with a view to being rolled out over the next 12 months and include: (1) minimising material rehandling by utilising the over- land conveyor from the former HMS plant to the agglomerator; (2) utilising avail- able current to the electro-winning circuit through addition of extra electro-winning cells; and (3) bringing forward the HMS fines delivery through the addition of a small (40 t/h) modular tank leach.

ASX-listed Tiger Resources has provided an update on the operating performance of the solvent-extraction and electro- winning (SX/EW) plant at its Kipoi copper project in Katanga in the DRC following completion of the first 12 months of cath- ode production. The SX/EW plant was commissioned in May 2014, ramp-up of production to the 25 000 t/a nameplate design capacity was achieved by August 2014, and since then the plant has continued to demonstrate its ability to produce LME Grade A equivalent quality cathode consistently at or above budgeted rates of production. May 2015 returned a record plant out- put, with 2 306 tonnes of copper cathode produced for the month. Having operated the SX/EWplant for 12 months now, the operations team at Kipoi has identified areas where the facility can

WBJV Project 1 mine heads for late 2015 start-up Platinum Group Metals recently report- ed that its Western Bushveld Joint Ven- ture (WBJV) – Project 1 mine near Sun City was 78 % complete with over 1 900 people working on site, 19 % of them from local communities. The EPCM con- tractor is DRA.

At the North mine (seen in this pho- to), development to open blocks 12, 6,

June 2015  MODERN MINING  5

MINING News

Trial mining of the eastern lobe of the Baoulé kimberlite pipe (photo: Stellar Diamonds).

AIM-listed Stellar Diamonds recently announced an operational update from trial mining at its 75 %-owned, 5 ha Baoulé kimberlite pipe in Guinea in West Africa. The trial mining has yielded a total of 5 087 carats to date at an average grade of 13,5 cpht and high quality gems continue to be recovered, including stones of 12,6 carat and 10,0 carat. The first sale of 733 gem quality carats from Baoulé in March realised US$195 000 for an average value of US$266 per carat (which formed part of a larger sale of 4 414 carats). Included in this sale was a 5,55 carat stone which sold for US$5 000 per carat and several stones which exceeded Good progress reported on trial mining at Baoulé US$1 000 per carat, underpinning the high value and quality of some Baoulé gems. Stellar Diamonds Chief Executive Karl Smithson commented: “Good progress continues to be made from trial mining at Baoulé. Our objective is to produce 15 000 carats from this exercise to enable us to determine the grade, value and presence of large stones in the pipe, with a view to using this information to consider a deci- sion to advance Baoulé to commercial scale mining. “It is pleasing that we have achieved our maiden revenues following the first diamond sale from Baoulé, as well as other Stellar projects. We are currently planning

the next export and sale of Baoulé goods and remain committed to targeting addi- tional diamond sales throughout 2015.” Trial mining of the eastern lobe of the Baoulé kimberlite pipe has continued dur- ing the first quarter of 2015. In order to maximise the pit area in preparation for the second 3 m cut, mining progressed towards the eastern and southern margin of the pipe where a lower grade contact breccia was recently encountered, reduc- ing the average grade to 13,5 cpht at a 1,25 mm cut off. This has resulted in fewer car- ats being produced than anticipated at this point in time, but mining and processing of the second cut is expected to see a return to higher grades, based on the results realised from the first cut of the lobe. Simultaneous to this mining, stripping of the western lobe of the pipe has com- menced in advance of the rainy season. Overburden and ground disturbed by dia- mond diggers is currently being stripped to access the uncontaminated kimberlite in preparation for bulk sampling. The processing plant is running at a steady state average capacity of approxi- mately 50 t/h over a double shift (16 hours). The kimberlite material remains predomi- nantly weathered; however, some harder blocks of kimberlite are being encoun- tered. Since these blocks are too hard to scrub but are also too soft to efficiently crush, they are being sent to an oversize stockpile where they are broken down with an excavator prior to being re-fed into the plant to ensure maximumdiamond lib- eration and integrity of results. 

BlueRock Diamonds commissions new plant AIM-quoted BlueRock Diamonds reports that the new plant at its Kareevlei project in Northern Cape Province is now fully operational and is in commercial produc- tion processing at a rate of approximately 80 tonnes of kimberlite per hour.

Report published at the time of our admis- sion to AIM.” Adds CEO Riaan Visser: “In December 2014, we halted processing of kimberlite through the existing plant to allow con- struction of the new plant to commence, which included the addition of rotary pans to the existing DMS plant and an enlarged and more efficient crushing circuit. We are confident that the new plant will enable us to profitably produce sufficient diamonds at a lower operating cost per tonne in 2015. “We are yet to explore the remainder of the Kareevlei property but based on the sampling data received from the previous owners, particularly for the K5 pipe, we believe that it still offers excellent medium to long term growth opportunities for the company.” 

“This is the culmination of almost 18 months of hard work during which we have completed our trial mining and con- structed our new processing plant,” says Non-executive Chairman Paul Beck in the company’s preliminary results for the year ended 31 December 2014 (released on 19 May 2015). “We were pleased with the results of the trial mining from which we recovered 575 carats. These were sold at an average price of US$248, some 36 % higher than anticipated in the Competent Person’s

6  MODERN MINING  June 2015

MINING News

Canadian accolade for Hatch Goba Chairman

Hatch Goba Chairman Trueman Goba received theMcMaster University Faculty of Engineering Leadership Award at its annual Applause and Accolades Awards Gala in Hamilton, Ontario in Canada on 7 May 2015. The Leadership Award was established in 2004 to recognise an outstanding citizen who has contributed to engineering, McMaster University and the community of Ontario. The university’s Engineering Faculty is rated among the best in the world. Goba has been instrumental in forging a successful relation- ship between McMaster Engineering and the University of KwaZulu-Natal. The latest recognition for Hatch Goba’s Chairman follows the presentation of the prestigious Lifetime Achievement Award for Excellence in Engineering at the inaugural South African Professional Services Awards (SAPSA) ceremony held in Johannesburg on 30 October 2014. Here Goba was deemed overall winner in a category with numerous high-profile nomi- nees by a distinguished panel of judges who reviewed media reports, technical awards, cli- ent surveys and organisation profiles before reaching their final decision. Goba was born in Chesterville, South Africa. He began his career as a survey technician and LSE-listed Acacia Mining reports that its North Mara gold mine has been named as the over- all winner of the 2014 Presidential Awards for Corporate Social Responsibility and Empowerment (CSRE) in Tanzania. In addi- tion to being named as the overall winner, North Mara was also awarded the large scale mining CSRE Presidential Award. Another Acacia mine, Buzwagi, was awarded the CSRE Presidential Award for Infrastructure as a result of its investment in improving the road network close to the mine. The awards are part of a programme jointly run by the Tanzanian Ministry of Energy and Minerals and the Extractive Inter-Stakeholders Forum and were launched in 2012 to recognise the CSR performance of companies operating in the extractive sector. Potential award recipients are judged by an independent panel of judges who travel to each of the sites to adjudicate participating operations on their commitment to sustain- able community wellbeing, human resource

Hatch Goba Chairman Trueman Goba at McMaster University in Canada. went on to graduate with a BSc Eng and aMEng (Civil). In 2001, Goba’s company GMA merged with Keeve Steyn to form Goba (Pty) Ltd, which merged with the Hatch Group in 2013. Goba was President of the Engineering Council of South Africa (ECSA) from 2007 to 2009 and also President of the South African Institution of Civil Engineers (SAICE) in 2002. In 2010, he was appointed to the first National Planning Commission and was awarded a Gold Medal by the SAICE in 2013. 

Acacia’s Tanzanian gold mines win awards development and training, local industry par- ticipation, social infrastructure contributions and the integration of the energy andminerals sector with other areas of the economy.

Commenting on the awards, Acacia CEO Brad Gordon said: “We are delighted that North Mara has been recognised as having the leading CSR programme of any extractive operation in Tanzania in 2014. Improving our relationships with the communities around our mines has been a key focus for Acacia, and these awards highlight the progress we have made to date and are testament to the efforts of the leadership teams at the mines. We believe all of our stakeholders should benefit from our operations and will continue to work with the communities around all of our mines to provide further opportunities for alternative livelihoods and infrastructure improvements.” Acacia is Tanzania’s largest gold miner and has three producing mines, Bulyanhulu, Buzwagi and North Mara, all located in north- west Tanzania. 

June 2015  MODERN MINING  7

MINING News

Reverse circulation drilling in progress at the Mpokoto site (photo: Armadale Capital).

Armadale signs agreement on Mpokoto development

AIM-quoted Armadale Capital has signed a Heads of Terms agreement with the Africa Mining Contracting Services group (A-MCS) with a view to funding, devel- oping, constructing and operating the Mpokoto gold project in the DRC’s Katanga Province. The agreement envisages that A-MCS will introduce investors to provide at least US$20 million of loan financing with a view to funding Mpokoto into production, which is targeted for H1 2016. Paul Smith steps down as COO of Wesizwe Platinum Wesizwe Platinum Limited has announced the departure of Paul A. Smith, the compa- ny’s Chief Operating Officer, who is leaving with immediate effect to pursue other per- sonal interests. Smith joinedWesizwe in January 2013 and served the company up to 9 June 2015. He was a member of Wesizwe’s Executive Team, supporting the CEO in the ongoing develop- ment of the company’s flagship Bakubung Platinum Mine (BPM) project, located on the Western Limb of the Bushveld Complex, close to Rustenburg in NorthWest Province. 

and that the costs, both capital and opera- tional, are agreed between all parties and reflect the final terms agreed between the parties to construct and operate the mine through the mining services contract. This process will also form a crucial part of the due diligence being undertaken by A-MCS and the investors that it intends to introduce. Mpokoto has a current total mineral resource of 678 000 oz Au from 14,58 Mt at 1,45 g/t Au at a cut-off grade of 0,5 g/t. It is envisaged that the mine will produce approximately 25 000 oz per annum over a nine-year life of mine. The results of an Expanded Scoping Study demonstrated a post-tax NPV of US$55,3 million based upon a discount rate of 8 % and a gold price of US$1 250/oz. The project comprises four mining licences which are valid for an initial term of 30 years from 30 September 2014. Significant further upside is anticipated with an exploration target of 2,4 to 3,0 Mt grading 1,25-1,5 g/t Au which Armadale estimates should yield an additional 120 000-150 000 oz Au to the project. A proposed drilling programme is already planned targeting primary mineralisation and down dip mineralisation beyond the present pit limits. 

“This is a landmark agreement for our strategy of bringing Mpokoto into produc- tion within the next 12 months,”says Justin Lewis, Director of Armadale.“The provision of at least US$20 million project finance is a crucial step in the project’s development and, with extensive local experience, we are delighted to have signed with A-MCS. We will now work closely with our new partners to finalise the DFS and the defini- tive agreements to deliver a low cost, low capex mine capable of generating excel- lent returns for shareholders. With this funding and development agreement, an initial NPV of US$55,3 million (£36,3 million) based on a forecast gold price of US$1 250/oz, and a further potential resource upgrade, Mpokoto continues to show its commercial value.” The key components of the capital cost identified in the scoping study were US$8,25 million for the processing plant, US$3,75 million for associated infrastruc- ture and US$8,5 million for infrastructure. The final amount of funding will be subject to the results of the DFS. A-MCS has agreed to work with Armadale and its principal consultant, Bara Consulting, to complete the DFS on the project. This will ensure that Armadale benefits fromA-MCS’s in-country expertise

8  MODERN MINING  June 2015

MINING News

the east and west and we are encouraged that this northern mineralised horizon may contribute to future estimates of mineral resources. We will be completing addi- tional work to determine the structural Kombat Copper reports on drill results

setting of this horizon and its possible rela- tionship to the southern horizon that was extensively mined underground.” Kombat Copper is hoping to define a near surfacemineral resource at Kombat suf- ficient to support an open-pit scenario that would allow a fast track to production. 

Kombat Copper Inc, listed on the TSX-V, has received assay results from nine addi- tional holes of its 35-hole diamond drill programme at the Kombat copper mine, located between Otavi and Grootfontein in northern Namibia. According to the company, the results observed to date continue to indicate a near-surface mineral resource. The initial drill hole programme is now complete and all samples for assay have been submitted to the laboratory. Highlights include Hole K15-010 which intersected 1,16 % Cu and 11,14 g/t Ag over a 19,25 m core length and Hole K15‑012, which intersected 1,37 % Cu and 14,77 g/t Ag over an 8,33 m core length. “The vast majority of the holes being reported are in what is known as the Central Pit area which saw very limited mining at the end of the mine life in 2006- 2007,” says Bill Nielsen, President and CEO of Kombat Copper. “Our results have expanded the known mineralisation to

Exploration drilling underway earlier this year at the Kombat mine (photo: Kombat Copper).

INCREASED YIELD AACHEN TM HIGH SHEAR TECHNOLOGY Evolved over 25 years, MMSA’s proprietary technology has significantly increased operational and process performance. A combination of shear, elevated pressure and high oxygen levels enables superior oxidation reactions with improved production rates. Features and benefits include: Higher processing recoveries, hard-wearing trouble-free service life, standard equipment allowing easy retrofits, maintenance, performance monitoring, ongoing support and advice.

Maelgwyn Mineral Services Africa (Pty) Ltd Tel +27 (0)11 474 0705 Fax +27 (0)11 474 5580 Email MMSA@maelgwynafrica.com www.maelgwynafrica.com

MINING News

The north-west pit at Kansanshi showing the area of the record-breaking blast (photo: BME).

Another BME blasting record in Zambia

its own digital initiation system. The system allocates precise firing times to detonators, allowing engineers to design complex firing sequences in a blast to achieve desir- able and repeatable blast results. “Everything went according to plan, with the logging, programming, status check and the blast itself all on schedule and with good results,” said de Bruin. “We are now only 645 detonators away from the overall African record.” BME has been a pioneering force in the field of electronic detonation, which is growing in popularity as more mines and quarries benefit from the reliability and accuracy of these devices. According to BME Technical Director Tony Rorke, the accuracy of electronic deto- nators is not only making blasting practice more predictable, but is also allowing for larger and more cost-effective blasts. Now the leading supplier of explosives to the South African open-pit mining and quar- rying industry, BME is also an innovator of various blast-related services and products. “The use of shocktube (non-electric) detonators has always had the limitation of being reliant on hard-wiring throughout,” said Rorke. “This places certain constraints on the blast design and implementation, and can raise the risk of a mis-fire under certain conditions.” The advantages of using electronic det- onators include the ability to trigger blasts through a wireless signal. Included in these are that blasting lines to the detonators are less likely to be damaged, thereby substan- tially reducing the likelihood of a mis-fire. 

Leading explosives supplier BME has raised the bar with a record blast at Zambia’s Kansanshi mine in March 2015, detonating 4 141 electronic delay deto- nators (EDDs) in a single blast in the operation’s north-west pit. “This is a great achievement for the BME team in Zambia and another milestone for the AXXIS system,” said BME’s Country Manager in Zambia, Charles Pretorius. “It is our second record for the most EDDs in

one blast for BME world-wide, beating our own record of last year.” Wayde de Bruin, the Senior Operations Manager on site, said the blast comprised a main block, as well as trim just above the main block. The blast was done using one master blasting box at the point of blast- ing communicating remotely to the slave boxes and detonators down in the pit. To improve the safety, ease of use and accuracy of blasts, BME developed AXXIS – increased focus on resource development at the Blanket mine. The rate of explora- tion drilling has increased and will increase further when the new drill machines, which have already been ordered, are delivered and commissioned. “The upgrade of approximately 491 000 tonnes from inferred resource to indicated resource represents a significant improve- ment in the overall confidence level of Blanket’s resources.” When the Preliminar y Economic Assessment was completed in late 2014 for the revised investment plan at Blanket mine, approximately 55 per cent of Blanket’s resource base comprised measured and indicated resources and 45 per cent com- prised inferred resources. After the upgrade, the resources split has improved to 62 % in the measured and indicated category and 38 % in the inferred category. 

Blanket mine upgrades its resource base Canada’s Caledonia Mining has announced an increase and upgrade to the resource base at its 49 %-owned subsidiary, the Blanket mine in Zimbabwe.

Based on the drilling that has been com- pleted at depth below the AR Main and Blanket sections over the past year, it has been possible to upgrade 491 000 tonnes from the inferred to the indicated resource category and to add 47 000 tonnes of new inventory to indicated resource. This upgraded indicated resource of 538 000 tonnes is additional to the 2,93 Mt of reserves and indicated resource that was used for the Reserve Plan in the Technical Report prepared by Minxcon in December 2014 and represents an increase of 17,4 % in terms of tonnes and 20,5 % in terms of contained gold. Commenting on the resource upgrade, Steve Curtis, Caledonia’s Chief Executive Officer, said: “This upgrade reflects an

10  MODERN MINING  June 2015

MINING News

Realising possibilities...

Vibrating equipment supplier seals empowerment deal A significant, strategic move has resulted in local vibrating equipment manufacturer Joest entering into an agreement with black-owned consortium Vhatsila Holdings to form Joest Kwatani. The agreement sees Vhatsila Holdings acquiring a 30 % stakeholding in the company. As a result of this move and the concerted effort to continue with its programme of preferential procurement and skills development, Joest Kwatani has now achieved a Level 3 BBBEE certification. Two shareholders from Vhatsila Holdings have been appointed to Joest Kwatani’s board as non-executive directors. Under Gunter Vogel’s guidance, Joest Kwatani has grown over the past 26 years into a major supplier of high quality vibrating equip- ment suitable for the harsh African mining environment. According to Kim Schoepflin, MD of the company, Joest Kwatani has a heritage that is proudly African and it is therefore fitting that the company has changed its name to one which embodies this credo. “Interestingly, Kwa Tani is Swahili for ‘For Tonnage’. This is appro- priate, given the fact that Joest Kwatani has a 39-year track record of designing and supplying high quality customised vibrating equipment, characterised by robust construction and emphasis on continuous tonnage,” she says. Part of the company’s heritage is its ongoing commitment to overall transformation and it will leverage this operating strategy to continue to empower and uplift South Africans. “We have a philosophy of identifying talent from within the organisation and have a programme whereby individuals’ skills are developed in their area of potential, allowing them to better their position in the company. This includes the ongoing training of arti- sans, both at learnership level and above,” says Schoepflin. Showing care for the communities in which it operates is one of Joest Kwatani’s core values and education remains the key focus of the company’s Social Upliftment Programme. Joest Kwatani facilitates business and administrative skills development for a number of dis- abled, previously disadvantaged individuals who would otherwise not have access to this type of education. 

...frommine to market.

Environment & Approvals

Resource Evaluation

Mine Planning

Mining&Mine Development

Materials Handling

Non-Process Infrastructure

Mineral Processing

Tailings &Waste Management

Smelting & Refining

Transport to Market

WorleyParsons adds value through our full scope of services from pit to port including studies, mine planning, impact assessments, permitting and approvals, project management, construction management and global procurement.

46 157 countries

35,600

offices

people

www.worleyparsons.com

Derrick Alston (left), CEO of Joest Kwatani, with Kim Schoepflin (centre), MD of Joest Kwatani, and Masego Mokitimi of Vhatsila Holdings.

June 2015  MODERN MINING  11

WP ad 90x260.indd 1

2015/04/20 10:43

MINING News

Lucapa secures funding for new fleet of Cat equipment of schedule. This will result in a significant increase in anticipated cash flows earlier than originally planned.

raised A$4,8 million in fresh equity via a share placement and the Lulo partners have continued to recover high value dia- monds which have sold for A$3,7 million, leaving the project well-funded. We are also now finalising a A$4,5 million fleet financing arrangement for new Caterpillar earthmoving equipment on favourable financing terms. “To procure this equipment externally and have it shipped into Angola would have taken approximately four months, so we are obviously delighted the equipment required to scale up our diamond mining operations is both in-country and in-stock. “The Caterpillar deal also provides us with an opportunity to use a similar financing structure to source the addi- tional earthmoving fleet required to ultimately scale up to a processing rate of 40 000 bcm/month in the future once the short-term financing agreement is completed.” Wetherall said the gazetting and incorporation formalities for the Lulo mining venture which were required as a final condition of the original US$15 million debt facility proposal were progressing following the issuance of a Ministerial Directive, but were not yet completed. “While the original financier remains supportive, having already completed their due diligence, the terms secured for the Caterpillar equipment financing deal are more favourable for this type of asset purchase and level of invest- ment. Lucapa does, however, still look forward to working together with them in time to come as we scale up.” The 3 000 km 2 Lulo diamond con- cession is located in Angola’s Lunda Norte diamond heartland within 150 km of Catoca, the world’s fourth biggest kimberlite diamond mine, and on the same favourable geological trend. In November 2014, Lucapa and its partners signed a 35-year mining licence agreement to mine the alluvial diamonds at Lulo and alluvial dia- mond mining commenced in January 2015. The Lulo alluvial diamonds sold to date have achieved exceptional average sale prices of more than A$2 500 per carat. 

ASX-listed Lucapa Diamond Company Limited has announced that it has agreed the key terms of a financing deal aimed at doubling its alluvial diamond mining oper- ations and growing cash flow significantly. The A$4,5 million deal will see Lucapa source a new Caterpillar earthmoving fleet which will enable diamond mining at the Lulo diamond concession in Angola to be scaled up ahead of schedule to 20 000 bulk cubic metres (bcm) per month. The fleet is available for immediate delivery. The new Caterpillar equipment to be acquired under the financing deal includes three 740B trucks, one 374F LR excavator, one 140M grader and a D8R bulldozer. Utilising its existing earthmoving fleet, Lucapa and its partners are on track to achieve their initial Phase 1 diamond mining target of processing 10 000 bcm/ month of diamond-bearing alluvial gravels through the 150 t/h diamond plant at Lulo by the end of June 2015. The new fleet of earthmoving equip- ment will enable the Phase 2 target of 20 000 bcm/month to be achieved ahead

Significantly, the Lulo partners will also be able to dedicate a standalone fleet to kimberlite exploration so this programme can occur in parallel with alluvial dia- mond mining operations. As previously announced, priority kimberlite targets to be bulk sampled in the June 2015 quarter include the L46 kimberlite, which is con- sidered a likely source of the higher grade diamonds recovered in previous alluvial bulk sampling at the E46 alluvial area at Lulo. Lucapa CEO Stephen Wetherall said the commercial terms offered on the Caterpillar financing deal over a 12-month term were the best of a number of financ- ing proposals received by the company to fund the scaling up of diamond mining operations at Lulo. “Since we signed the term sheet for the original US$15 million financing pro- posal back in January 2015, we have made significant funding progress. Lucapa has

Alluvial gravels being fed into the front end of the 150 t/h diamond processing plant at Lulo (photo: Lucapa Diamond Company).

12  MODERN MINING  June 2015

MINING News

Single ownership structure created for Waterberg project

60 m. This is in contrast to the conventional Bushveld deposits, many of which are in excess of 1 000 m deep and only 1 m thick. TheWaterberg deposit has been divided into theWaterberg I, II, and III domains. Each domain represents approximately 5 km of strike length. The June 2014 Waterberg resource estimate is 29,07 million inferred ounces over approximately the first 10 km of strike length. Of these resources, approx- imately 22,3 million ounces are hosted on the oldWaterberg Joint Venture area while the balance of 6,8million ounces resides on the oldWaterberg Extension area. A total of 71 000 m of largely infill drill- ing on the old Joint Venture area has been completed since June 2014. A resource update covering the entire Waterberg deposit area is in progress and remains due to be completed shortly. A PFS by DRA for theWaterberg project as a potential large scale, fully mecha- nised, decline accessible mine is currently in progress. 

decrease its interest in the old Waterberg Joint Venture from 37 % to 28,35 % and increase its interest in the old Waterberg Extension from zero to 28,35 %. “The consolidation of the Waterberg project eliminates project boundaries; reduces development, administration and infrastructure costs; creates strong effi- ciencies; and enables the most economic development of the deposit,”says Platinum Group Metals CEO R. Michael Jones. “The unified ownership structure also allows for superior mine planning and scheduling focused on the early exploitation of higher grade tonnes of Super F mineralisation, which may be planned with lower-cost mechanised processes in the ongoing Pre- Feasibility Study.” The Waterberg deposit was discovered by the Joint Venture in a newly identified section of the Bushveld Complex. The deposit has the key features of being near surface, at 140 m deep to the shallowest edge, and having a thickness from 3 m to

Platinum Group Metals (PTM), listed on the TSX and NYSE, has announced that the Japan Oil, Gas and Metals National Corporation (JOGMEC) has committed to provide the next US$20 million of joint venture funding at its Waterberg project. In conjunction with JOGMEC’s firm funding commitment, PTM, JOGMEC and empowerment partner Mnombo Wethu Consultants have agreed to consolidate the Waterberg Joint Venture and the Waterberg Extension projects into one uni- tised project area (the‘NewWaterberg JV’). As a result of the consolidation, and with the funding provided by JOGMEC, approximately 15 drill rigs and crews will immediately be returned to active status at the Waterberg site, says PTM. PTM will increase its direct and indi- rect effective interest in the old Waterberg Joint Venture area from 49,98 % currently to 58,62 % and will decrease its effective interest in the old Waterberg Extension from 87 % to 58,62 %. JOGMEC will

June 2015  MODERN MINING  13

MINING News

Encouraging results from Buckreef heap leaching Tanzanian Royalty

“The reserve growth at Twangiza has been achieved through the proven ability of the current plant to economically pro- cess non-oxide materials existing within the reserve pit shell. This achievement will extend the mine life of the current installed operations to 14 years, and provide a foun- dation for future optimisation and the possible future expansion of the existing Twangiza operations,” commented Banro’s CEO and President, John Clarke. During 2014, the company scaled down its exploration activities at its Twangiza, Namoya, Lugushwa and Kamituga proj- ects and focused its geological expertise on supporting the production growth at Twangiza, development at the Namoya mine and identification of near mine high grade targets.  deposit to heap leaching, which is typi- cally lower in capital and operating costs than other gold recovery methods. The leaching kinetics will be strengthened via the addition of an agglomeration unit to significantly increase percolation and per- meability, thus enhancing the excellent initial oxide recoveries so far reported.” Jim Sinclair, the company’s President and CEO, added: “This is another critical step on our company’s path to production. Not only have we demonstrated that heap leaching represents a viable gold recovery option at Buckreef but the cyanide soluble leach assay data will allow us to better map and quantify recoverable gold for the sub- stantial resource blocks – not only for the Buckreef South Pit but also for the nearby Buckreef Main deposit and the Tembo and Bingwa satellite deposits.” The Buckreef Gold Mine Re-Develop­ ment project was acquired from the Tanzanian State Mining Company (Stamico) in December 2010. Under a Heads of Agreement concluded with the state-owned company, Tanzanian Royalty has the right to earn a 55 % inter- est in Buckreef with Stamico holding the remainder. The project is located in north-central Tanzania immediately to the south of Lake Victoria and 110 km south-west of Mwanza. The project area comprises the dormant Buckreef gold mine and four prospects with known mineralisation: Buckreef, Buziba, Tembo and Bingwa. 

has also commenced pumping and eluting the leachant generated from Pad 1 through the carbon elution c o l umn s , ma r k i ng the second progres- s i ve s t ep t owa r d s gold recovery at the Buckreef project. The company says that it is notable that the head grade (mg/ ℓ ) from the pregnant leach solution in the PLS pond increases as

Loading cyanide into the 6-t capacity carbon-in-column (CIC) gold adsorption plant at the Buckreef project (photo: Tanzanian Royalty).

rials in the reserve pit shell which have been proven to be economically treat- able with the existing plant. This expands the Twangiza mine life utilising the exist- ing plant to 14 years. At Namoya, Banro’s second mine, the proven and probable mineral reserves have decreased 5 % to 1,27 Moz (20,53 Mt at 1,92 g/t Au), primar- ily due to mining depletion. Banro’s overall mineral reserves have grown by 23 % to 2,91 Moz (42,91 Mt at 2,11 g/t Au) at a US$1 200/oz gold price. Banro’s total measured and indicated resources for all its properties amount to 7,73 Moz (154,91 Mt at 1,55 g/t Au) while inferred resources total 5,26 Moz (97,78 Mt at 1,67 g/t Au). the leaching progresses. Moreover the discharge grade (mg/ ℓ ) from the carbon columns into the barren leach solution (BLS) indicates >98 % capture from the PLS. Truck-stacking of material on Pad 3 (of 4) commenced on 6 May 2015 and is in progress. The strategy of the company is to fill all four pads now at Buckreef, tak- ing advantage of the fact that the greater degree of gold in the leachate occurs early in the process rather than later, provided that permeability is maintained at a favour- able level. Joseph Kahama, Chairman of Tanzanian Royalty and COO (Tanzania), commented: “The analytical assay results from the leachant that continues to be generated from Heap Leach Pads 1 and 2 illustrate the amenability of the Buckreef South Pit

Canada’s Tanzanian Royalty Exploration Corporation reports that assay results from leachant (pregnant solution) collected from its heap leach pads and the pregnant leachate solution (PLS) holding pond at its Buckreef South Pit gold mine process- ing plant in Tanzania have returned highly encouraging results. The company found that the permeabil- ity and leaching degree of the padmaterial was improved by mixing river sand with the mineralised material on the pad. The assay results for samples collected from Pad 1 returned moderate values ranging from 0,3 mg/ ℓ to 0,8 mg/ ℓ over a 20-day period. This is attributed to the intensely clayey nature of the leach materials, hence the decision to improve permeability and percolation on Pad 2.

Reserve growth at Twangiza extends mine life Banro Corporation has provided an update of its mineral resource and mineral reserve estimates at its wholly-owned projects on theTwangiza-Namoya gold belt in the DRC. The annual review of resources and reserves at the company’s four core proj- ects, Twangiza, Namoya, Lugushwa and Kamituga, has resulted in a substantial increase in mineral reserves with the conversion of transition and fresh min- eral resources into mineral reserves at Twangiza, one of the company’s two oper- ating mines.

The Twangiza proven and probable reserves have increased 59 % to 1,64 mil- lion ounces of gold (22,38 Mt at 2,28 g/t Au) with the inclusion of non-oxide mate-

14  MODERN MINING  June 2015

MINING News

no Project iS too big or too small We think big on every detail, all the time

Positive Feasibility Study completed on Balama

ASX-listed Syrah Resources has reported the results of its Feasibility Study (FS) prepared for its 100 %-owned Balama graphite project in Mozambique. The project is located on a 110,6 km 2 mining conces- sion in northern Mozambique, within the district of Balama in Cabo Delgado Province. The project area is accessible by a sealed highway and is close to the large regional Chipembe Dam. The FS confirms Balama as a project with low capital intensity, low technical risk and attractive returns. The payback period is estimated at less than two years from commercial production. According to Syrah, Front End Engineering Design (FEED) has com- menced to further optimise and de-risk the development plan as well as bringing greater certainty to the timing of procurement for key capital equipment. Financing discussions are well advanced. Perth- based CPC Engineering has been appointed to undertake the FEED. As outlined in the FS, the Balama project will be a high-grade, open-pit operation utilising conventional mining methods with an extremely low stripping ratio. The processing plant will have a feed rate of 2 Mt/a and a nameplate capacity of 380 000 tonnes of concen- trate per annum at 95 % total graphitic carbon (TGC). Graphite concentrate will be transported to and shipped via the Port of Nacala – reputedly the deepest port in Southern Africa – which is located approximately 490 km by a sealed highway south-east of the project. The author and key contributor of the Feasibility Study was Snowden Mining Industry Consultants with input from a range of technical specialists including China Aluminium International Engineering Corporation Limited (Chalieco); Changsha Engineering and Research Institute Ltd of Nonferrous Metallurgy; Coastal & Environmental Services; Knight Piésold; SRK Consulting; Intech Engineers and Digby Wells. Syrah’s experienced internal technical team also contributed. The FS highlights the attractive economic returns of the project. The study does not consider the vanadiumproduction potential of Balama (scoping study completed previously), which will be progressed to full feasibility following commissioning of the graphite project. As part of the FS, a maiden proved and probable graphite ore reserve has been declared, comprising 81 Mt at 16,2 %TGC for 13,2 Mt of contained graphite. This ore reserve provides sufficient inventory to support operations (after project ramp up) for over 40 years. The final graphite concentrate product will be classified into five particle sizes as required under Syrah’s binding offtake agreement with Chalieco and requested by other customers. The project demonstrates low capital intensity (US$138 million ini- tial capital cost, including 10 % contingency) and will be a first quartile producer with cash costs of US$286 per product tonne free on board (FOB) from the Port of Nacala. According to Syrah, these costs com- pare favourably to current graphite prices and highlight the economic strength of Balama. “We are absolutely delighted with the results of this Feasibility Study, which confirms our long held view that Balama will shortly become the world’s premier graphite mine. Metallurgical testing has also confirmed that Balama graphite will become a leading source of high quality spherical graphite for Li-ion battery applications,” com- ments Syrah’s MD, Tolga Kumova. 

mineralS ProceSSing

mine deSign

infraStructure

Winder SyStemS

contract oPeration

StudieS

Tel: +27 11 202 8600

draglobal.com

June 2015  MODERN MINING  15