Modern Mining June 2016

MINING News

Mining activities start at Baobab phosphate project

ASX-listed Avenira (previously Minemakers Limited) reports that it made good prog- ress in the March quarter on advancing its Baobab phosphate project in Senegal. The company is developing its first open pit within the Small Mine Permit (SMP) area at Baobab. The Baobab project area covers a total of approximately 1 553 km 2 . Within the project area, the Gadde Bissik prospect of approximately 90 km 2 was identified dur- ing excavation of water wells in the 1950s. Avenira has managed the exploration of the Gadde Bissik area since early 2014, building up a comprehensive knowledge of the project and its potential. The SMP was granted in May 2015 over the area of thickest and highest grade min- eralisation identified to date at the Gadde Bissik prospect and the focus of explora- tion has continued to be within this area since that time. A maiden indicated min- eral resource estimate for Gadde Bissik East of 12,6 Mt at 21,0 % P 2 O 5 at a 15 % P 2 O 5 cut-off grade was announced in December last year. Avenira’s strategy to develop the proj- ect is based on an initial Stage 1 operation producing 500 000 t/a of phosphate con- centrate. Total capital expenditure to production is estimated at US$15 million and the project is fully funded. The opera- tion has been designed to enable multiple stages of expansion. Mined rock phosphate, once dried on conventional pads, will be trucked 145 km on predominantly sealed roads to the Port of Dakar, which has sufficient existing capacity for export. Mining of the Stage 1 open pit overbur-

Overburden removal at the Baobab site by mining contractor Agromines (photo: Avenira).

the region, consolidating ownership of advanced assets in the highly prospec- tive Houndé Belt and providing significant optionality for the development of a mine in the region. Bondi is located within trucking distance of both the 2,1 Moz Au South Houndé project and the 0,7 Moz Au Karankasso project (in which Sarama has a 30 % interest). The Bondi deposit lies within the 168 km² Djarkadougou exploration property in south-western Burkina Faso. Bobo-Dioulasso, Burkina Faso’s second larg- den began at Gadde Bissik during March. Initial mining, undertaken on a 24-hour basis, utilised a 385C excavator and three of the five haul trucks on site. According to Avenira, the mining rate continues to improve as mining conditions are bet- ter understood and resources are added. Two new 390 excavators and the remain- ing trucks were operational by the end of March. The long lead ultrafine screening equip- ment has been fabricated in the US and is ready for shipping to Dakar. The site estab- lishment and local resource procurement advance team from the process plant engi- neering contractor arrived on site at the end of the March quarter. SouthAfrican-based specialist engineer- ing group Consulmet is progressing with

est city, is located approximately 75 km to the west and is linked by a paved highway that transects the property. The mineral resources within the South Houndé and Karankasso projects are each located approximately 30 km (straight line) from Bondi, presenting an opportunity to ultimately combine the three deposits by trucking feed to a central processing facility. Metallurgical testwork by Sarama at the South Houndé project has identified sev- eral processing flowsheets including heap leaching for oxide material and a staged tank-based plant for hard rock material.  “The March quarter has been a very busy and productive period for Avenira,” says Cliff Lawrenson, Avenira’s MD. “Substantial progress was made on site as mining activities commenced at the Baobab phosphate project. All works are currently on time and on budget and the company remains on schedule to deliver first production during the second half of 2016. Getting to production in the second half of 2016 is our first priority, followed by moving from our current Small Mine Permit to a full Mine Permit to enable increased production.”  the fixed price design and construction of the modular wet screening plant. The plant is being fabricated in Johannesburg and will be transported to site for final erection and installation.

Sarama Resources acquires Bondi gold deposit Sarama Resources, listed on the TSX-V, has signed a binding Heads of Agreement with Orezone Gold Corporation which will see it acquiring the Bondi gold deposit. Bondi is 100 %-owned by Orezone and is located immediately adjacent to Sarama’s South Houndé project in south-western Burkina Faso. The deposit has a historical estimate of mineral resources of 282 000 ounces Au (measured and indicated) and 150 000 ounces Au (inferred).

According to Samara, completion of the acquisition will bolster its position in

June 2016  MODERN MINING  9