Modern Mining June 2018

June 2018 Vol 14 No 6 www.crown.co.za M ODERN MINING

MODERN M I N I N G

CONTENTS

JUNE 2018

ARTICLES

COVER 18 Redpath positions itself for African growth DIAMONDS 22 Thorny River diamond project shows promising economics FEATURE – POWER SUPPLY AND ENERGY EFFICIENCY 26 Pace-setting solar farm inaugurated at Otjikoto 31 Hybrid power solutions now competitive for Africa’s mines 34 JB Switchgear completes another project in Africa REGIONAL FOCUS – WEST AFRICA 36 Resource base at Wahgnion gold project grows by 33 % 39 Avenira plans Baobab expansion 42 GSR makes the transition to underground production COMPANIES 46 Reagent experts spread wings through Africa and abroad REGULARS MINING NEWS 4 Cradle Arc announces maiden ore reserve for Mowana 5 Discovery at gold project could be a game-changer 6 SSM completes expansion at mineral sands mine 7 Resolute Mining acquires an interest in Orca Gold 8 Timeframe established for Khoemacau project 9 Capital cost estimate completed for lithium project 10 Botswana’s coal potential highlighted at BRSC 11 DRA backs new fund targeting the mining industry 12 Tsodilo delivers BK16 diamonds for acid cleaning 14 Shanta Gold updates Singida resource 15 HPGR testwork for Achmmach produces positive results 16 Jaw crusher installed underground at Kipushi PRODUCT NEWS 48 FLSmidth offers economical options for large thickeners 49 Rand-Air expands its generator fleet 50 Atlas Copco offers dewatering pump solutions 51 Warning device combines strobe light and siren 52 Condra wins another order from Kamoto Copper 53 SCA develops intermodal side tipper bin 54 MBE focused on support for optimal performance 55 Maptek showcases its Sentry system 56 ELB Equipment sees rising demand for excavators

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

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

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Cover Our cover image shows a conveyor that was installed, operated and maintained by Redpath Mining Africa at Maseve platinum mine in theWestern Bushveld. The 1 km con- veyor towards Block 11 links to the mine’s underground silos and exist- ing 1,4 km conveyor to surface. See page 18 for a full story on Redpath’s African operations.

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Average circulation (January–March 2018) 5026

June 2018  MODERN MINING  1

COMMENT

Copper and coal projects on the way in Botswana

A couple of months back I men- tioned the upcoming Botswana Resource Sector Conference (BRSC), which I described as one of my favourites. Having now at- tended the conference, I thought I might share some of my impressions with readers. First off, it was definitely the ‘quietist’ BRSC I’ve yet attended, with both the num- ber of delegates and exhibitors down – or so it seemed to me – on previous events. I imagine this mainly reflects the depressed state of the mining sector in Botswana but it couldn’t have helped that the first day of the BRSC coincided with the second day of the Junior Indaba in Johannesburg. I was also surprised to see that some com- panies whom one might have expected to participate in the event appeared to be absent. There were no presentations, for example, by Galane Gold, which has the Mupane gold mine near Francistown, or Cradle Arc, which is reviving the Mowana copper mine, north-east of Francistown. Also missing from the line-up of companies was Debswana, by far the biggest player in Botswana’s mining industry, which one hears is well advanced with the planning of the pro- posed Cut 9 at Jwaneng and Cut 3 at Orapa, both very big projects indeed. Regrettably, no information on either was forthcoming at the conference, either from Debswana or anyone else. With Botswana having an estimated coal resource totalling 200 billion tonnes, it was no surprise that this commodity was strongly featured at the BRSC. Both Minergy, which is run by Andre Boje of Wescoal fame (see page 10), and Shumba Resources had a strong pres- ence. Two absentees though (at least in terms of giving presentations) were Maatla Resources, which is developing the Mmamabula mine, and African Energy, which owns the Sese project south of Francistown. It’s an interesting point as to which of the junior coal companies currently operating in Botswana will be first to market. Very likely this will be Minergy, which is expecting to produce its first coal later this year from its Masama project. On the diamond side, all the junior explor- ers active in Botswana were present at the BRSC. This is not to say much, as there are currently only three of them, namely Botswana Diamonds, Pangolin Diamonds and Tsodilo Resources – whereas ten years ago there would probably have been three or four

times this number. They were represented, respectively by James Campbell (see page 22), Dr Leon Daniels, and Dr Mike de Wit, all of them with huge reputations in the diamond exploration field. Leon, incidentally, gave a presentation entitled ‘Contrasting termite transported indi- cator mineral concentrations in the Kgalagadi of Central District Botswana: Macrotermes michaelseni vs Hodotermes mossambicus’ , co- authored by Tshireletso Dira. One might think that a talk of this nature would be highly aca- demic and somewhat dry but it was, in fact, very entertaining and went down well with conference delegates. As he has in previous years, Charles Siwawa, the well-respected CEO of the Botswana Chamber of Mines, gave an update on the coun- try’s mining industry. His address was largely positive but he did acknowledge that a spate of mine closures had resulted in around 10 000 workers losing their jobs. As he pointed out, this is a large number for a country with a popu- lation of only 2 million. Saving the best for last, two of the most encouraging presentations were given by cop- per/silver aspirants, Khoemacau Copper Mining (a subsidiary of US-based Cupric Canyon) and Australia’s MOD Resources, both with projects in the Kalahari Copperbelt. Khoemacau’s Johannes Tsimako, who is Country Manager, put a date to the start of con- struction on the company’s much anticipated Zone 5 underground mine (see page 8) while MOD’s MD, Julian Hanna, and his colleague Kebalemogile Tau, Exploration Manager at Tshukudu Metals (MOD’s Botswanan subsid- iary), updated delegates on MOD’s exploration efforts and its flagship Motheo (T3) project, on which a development decision is expected next year. The two projects between them should result in an investment in Botswana’s mining sector of well over half a billion US dollars and result in an annual copper production from the Kalahari Copperbelt of at least 80 000 tonnes within several years (with plenty of potential for this to grow). Overall, I enjoyed the BRSC and will be reporting on some aspects of it in our next issue. The main takeaway was that there are some very positive developments on the imme- diate horizon in respect of coal and copper/ silver and that Botswana – as a result – can finally look forward to some new investment in its beleaguered resources sector. Arthur Tassell

The two projects between them should result in an investment in Botswana’s mining sector of over half a billion US dollars.

June 2018  MODERN MINING  3

MINING News

Cradle Arc announces maiden ore reserve for Mowana

The processing plant at the Mowana mine (photo: Cradle Arc).

The total costs of the DMS plant and associated upgrades, which have been included in WAI’’s model, are expected to be approximately US$20,0 million. “The successful completion of the ore reserve estimate and upgrade of the mineral resource estimate under- pins the significant scale and long term commercial value potential of Mowana,” comments Kevin van Wouw, Cradle Arc’s CEO. “WAI’s independent assessment further supports our recently imple- mented accelerated development plan announced in April 2018, which we antic- ipate enabling us to reach steady state production and positive cash flows more rapidly, in addition to enabling manage- ment to make the final decision regarding the implementation of the DMS upgrades as we seek to ramp-up production and ultimately strengthen the value funda- mentals of Mowana. “Mining operations at Mowana have been ramping-up over the last six weeks and we currently have two mining units operating full time in the open pit. These works will support a doubling of ton- nage to the existing processing plant and the planned integration of DMS will then enable the plant to produce an average of approximately 21 000 tonnes of copper per annum, and up to 27 000 tonnes of copper in year 3, over a newly extended 14-year life of mine.” 

AIM-listed Cradle Arc has announced a maiden JORC (2012) ore reserve for its 60 %-owned, open-pit Mowana copper mine located in north-east Botswana. On 3 April 2018, the company announced its maiden mineral resource estimate (MRE) for Mowana, completed by Wardell Armstrong International (WAI), and said it had commissioned WAI to produce a maiden JORC (2012) ore reserve, draw- ing together the technical data from the various positive work streams completed in respect of the planned implementation of the Dense Media Separation (DMS) pre- processing technology.   The MRE previously announced has now been further updated followingWAI’s work on the ore reserve estimate, with a portion of the inferred resources being transferred into the higher confidence indicated resource category. The ore reserve (proved and probable) comprises 31,8 Mt at 1,17 % Cu for 370 800 tonnes contained copper metal, based on the DMS mine plan. The MRE puts mea- sured and indicated resources at 55,0 Mt at 1,17 % Cu for 640 000 tonnes of contained copper, representing an increase of 37 %. Following the commencement of the company’s accelerated development plan at Mowana in April 2018, mining opera- tions have been ramping-up and two mining units are currently operating full time in the open pit, allowing access to

ores below the 960 level. In mid-May 2018, the first 40 000-tonne blast of transitional ore was produced in line with the mining reserve plan. Following commencement of process- ing of these transitional ores, Cradle Arc confirms that the recoveries are within the range expected. The parameters included in WAI’s work with regard to the planned DMS upgrades, are based on the purchase, installation and commissioning of two, 150 t/h, DMS mod- ular units and associated ancillary circuits and equipment. ThescopeoftheDMSupgradeprojectwill also include a review of the Environmental and Social Impact Assessment (ESIA) and the mine’s Environmental Management Plan. Upgrades will be required to the tail- ings system to ensure efficient and effective operations. These will include the addi- tional drilling of two 100-inch water supply boreholes and the inspection and refurbish- ment of the current operational borehole network. Certain plant units will need to be upgraded such that they are aligned to the requirements of the DMS plant and able to cater for the additional tonnages required on the dry section, as well as the increased holding capacity required for concentrate thickening and tailings disposal. Controls will also be enhanced for maximum effi- ciencies throughout the plant.

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MINING News

Discovery at gold project could be a game-changer

ASX-listed Azumah Resources has com- pleted a first phase, 22-hole, 3 431-m RC drilling programme at the Kunche deposit – part of its Wa gold project in Ghana – that has discovered what could be a game-changing, high-grade ore shoot approximately 40 m below the base of the previously planned open pit. One hole, KRC831, has returned one of the best mineralised intercepts ever at the 1,5 km strike orebody comprising an inter- val of 44 m at 5,37 g/t Au from 99 m (0,5 g/t Au cut-off, true width approximately 25 m). This includes two high-grade zones of 6 m at 3,33 g/t Au from 99 m and 27 m at 7,86 g/t Au from 116 m (including 20 m at 10,27 g/t Au from 120 m and 1 m at 144 g/t Au from 137 m). This newly defined zone of high-grade mineralisation has been confirmed by two other drill holes and may represent the top of a steeply plunging, high-grade ore-shoot and system feeder of unknown depth extent. The discovery of this ore shoot comes froma recent reinterpretation of geological and structural controls on mineralisation which, now validated, will guide future targeting at Kunche and elsewhere. It is closely associated with the intersection of the most prominent north- east-trending cross-fault into the Kunche Main Lode. The intersection of these two structures is believed to provide a favour- able location for high-grade mineralisation and is an obvious target for follow-up drilling. The driving objective at the Wa proj- ect, a joint venture between Azumah and Ibaera, with Ibaera presently sole funding and managing, is to increase combined

A drill site at the Wa gold project in Ghana (photo: Azumah).

geological controls affecting the grade and continuity of mineralisation at Kunche – has also been achieved. The regional scale Wa project is located in the Upper West Region of Ghana. Three main deposits have been discovered and extensively drilled at Kunche and Bepkong, adjacent to the Black Volta River and Ghana’s border with Burkina Faso, and at Julie, approximately 80 km to the east. Extensive metallurgical test work has confirmed a high average overall gold recovery of around 92 % for the combined Kunche, Bepkong and Julie deposits. “These excellent intercepts are a genu- ine game-changer for the Wa gold project and increase our confidence that we can materially boost mineral resources and ore reserves,” says Azumah’s Managing Director, Stephen Stone. 

ore reserves from the current 624 000 oz of gold to a level that will underpin the devel- opment of a standalone gold operation. To achieve this, the joint venture has committed to a A$6 million, multi-target, exploration campaign in 2018. These latest results reinforce the like- lihood of this objective being achieved with immediate positive implications for a material increase in Kunche’s mineral resources and ore reserves. They also encourage early stage concept plans for possible underground mining. The RC drilling programme has clearly met its primary objective to successfully extend above-economic grade mineralisa- tion down-plunge of and proximal to the existing Kunche pit. The second objective – to test and provide further data to help refine the understanding of the major

June 2018  MODERN MINING  5

MINING News

SSM completes expansion at mineral sands mine provision of civils, structural, mechanical, electrical, instrumentation, piping and platework (CSMEIPP),” says Marius Botes, Managing Director of SSM.

bility planning of KP2 was furthermore provided by seconding senior team mem- bers to work in the client’s Australian offices. “This resulted in complete syner- gistic alignment of all parties involved – enabling improved pre-planning which, in turn, led to significant risk mitigation, time- and cost-savings for the client,”Botes comments. SSM – which is ISO 9001 and 14001 certified, with a NOSA four-star rating – is part of the Stefanutti Stocks Mechanical and Electrical division of Stefanutti Stocks (Pty) Ltd. The KP2 project has been one of sev- eral pan-African projects for the company, which says it is quickly building up a solid pan-African construction and project exe- cution track record. “We are currently leveraging this to aggressively seek and secure further miner- als processing plant construction projects throughout the rest of Africa. As such, the KP2 project has been pivotal in expanding our geographic and operational footprint. We drew on our significant experience in managing pan-African CSMEIPP projects in order to execute it timeously and success- fully,” says Botes. “Unlike working in South Africa, the logistics involved in this project were highly complex, as all the required steel had to be containerised and shipped to Kenya. We knew – based on the nature of the project – that precision and accurate pre-planning would be critical. We there- fore engaged a specialised team with substantial pan-African logistical experi- ence,” Botes adds.  Stephan Theron, President and CEO of Trigon, comments: “The completion of the Feasibility Study is a major milestone for the company and its stakeholders. We are extremely pleased with the positive results and look forward to taking the next steps towards production and further develop- ment. We have submitted the Feasibility Study results to our offtake and project finance partner and expect sign off and the availability of the funding facility in the near term.”  of 103,4 % for the Kombat open pits as pre- sented in the FS confirm the robust nature of the Kombat operations.

Stefanutti Stocks Mechanical (SSM) reports it has demonstrated its ability to compete in the pan-African mining sector by suc- cessfully executing Phase 2 of the Kwale mineral sands mine expansion project in Kenya (KP2). The project was awarded in June 2017 with completion scheduled for April 2018. SSM confirms that it has completed the project on time while adhering to the high safety and quality standards inherent to its operational ethos. “We took the lead in this exciting, multi- disciplinary project, which included the

The scope of work was to complete the civil works for the new plant’s operational areas, including fabrication and instal- lation of steel structures to extend the process building. Also included was the installation of new gravity separation units and the associated piping, Botes explains, adding that the end-client was Australian mineral sands producer Base Resources. Early involvement in the constructa-

Stefanutti Stocks Mechanical (SSM) has successfully executed Phase 2 of the Kwale mineral sands mine expansion project in Kenya.

Positive study on surface mining at Kombat Canada’s TrigonMetals Inc, listed on theTSX- V, has announced the results of its Feasibility Study (FS) prepared by Minxcon on the sur- face mining areas of the company’s Kombat operations located in northern Namibia. The proposed surface mining opera- tions in the Kombat East and Kombat Central areas (the ‘Kombat open pits’) rep- resent the first phase of the company’s life of mine (LoM) strategy as presented in the recently published technical report entitled ‘NI 43-101 Technical Report on the Kombat Copper Project, Namibia’, dated March 22,

2018, including a Preliminary Economic Assessment (PEA). Future phases of the strategy com- prise the recommencement of the various historic underground mines at Kombat, starting with the Asis FarWest underground mine (AFW), as well as surface mining at Gross Otavi, and ultimately back into Asis West to mine the gap area and explore the resource at depth. According to Trigon, the positive after- tax NPV of US$4,6 million (at a base case copper price of US$3,10/lb) and healthy IRR

6  MODERN MINING  June 2018

MINING News

Resolute Mining acquires an interest in Orca Gold

Australia’s Resolute Mining, listed on the ASX, has subscribed for approximately 32,4 million new shares in Orca Gold Inc, listed on the TSX-V, through a share placement priced at C$0,675 per share. A subscrip- tion agreement between Resolute and Orca outlines an investment by Resolute of approximately A$22,5 million for a 15 % interest in the fully diluted capital of Orca. Orca is engaged in the acquisition, exploration and development of min- eral properties in North and West Africa. Its principal asset is a 70 % ownership interest in the Block 14 gold project located in northern Sudan (near the border with Egypt). According to Resolute, Block 14 is one of the leading gold development projects in Africa. Orca has defined a mineral resource of approximately 3,8 million ounces and is currently complet- ing a feasibility study on a development expected to deliver annual production of more than 200 000 oz of gold. Orca is also conducting active exploration of a strategic portfolio of highly prospective gold properties in Côte d’Ivoire. Resolute’s MD and Chief Executive Officer, John Welborn, indicates that the investment in Orca is opportunistic and part of Resolute’s ambitious growth strategy: “Orca is a first mover in a region which is host to the largest gold rush seen in Africa in centuries. Sudan’s increasing political stability and highly prospective,

A drill site at Orca’s Block 14 project in the Sudan (photo: Orca Gold). under-explored geology has seen the country rapidly emerge as the second largest producer of gold in Africa. Current annual production from Sudan of more than 3 million ounces of gold is sourced from small scale and artisanal mining activ- ity. Similar to Resolute’s entry into Ghana and Tanzania in the late 1990s, we are con- vinced this region of Africa will soon host new modern gold mines.

dentialled management team with the aim of collaborating to unlock value. We believe the combination of our mutual exploration and development expertise and resources will materially advance the existing asset position and advance regional exploration and development opportunities. Ultimately our ambition is to participate in the development of a major new gold mining district consis- tent with Resolute’s Golden Pride legacy as a successful pioneer of the gold mining industry in East Africa”. 

“Resolute has established an initial strategic interest in Orca and we look forward to working with their well-cre-

MINING News

Timeframe established for Khoemacau project

Botswana’s long-awaited Khoemacau copper/silver project is now ready to enter the mine development phase, with early works due to start in October this year and the full project release scheduled for Q1 2019 with the commencement of the boxcuts. This was said at the recent Botswana Resource Sector Conference in Gaborone by Johannes Tsimako, Country Manager, Khoemacau Copper Mining, who disclosed that the mine – which will cost US$391 mil- lion to develop – would produce its first concentrate by Q1 2021. Khoemacau Copper Mining is the Botswanan subsidiary of US-based Cupric Canyon Capital. Cupric acquired the Khoemacau property in 2013. In 2015 it purchased the neighbouring Boseto property, including a new 3 Mt/a concen- trator which was commissioned in 2012 by Australia’s Discovery Metals, and a Tailings

produce 1,2 Mt/a – would use the sub-level open-stoping method with a planned con- version to backfill in the future. Resources available to the Zone 5 proj- ect (including Zone 5 North which was discovered in 2016 and the Zeta NE deposit) total 185Mt at 2%Cu and 27 g/t Ag. Cupric, however, has extensive tenements in the Kalahari Copperbelt area extending over 4 000 km 2 and total resources are estimated at 502 Mt at 1 % Cu and 17 g/t Ag. According to Tsimako, the Starter Project is likely to be followed by further phases of development, with the first expansion being from 60 kt/a of copper to 100 kt/a, which would require a new plant to be built at Zone 5. Ultimately, he said, a yearly production of 180 kt plus of copper was possible based on current resources over the entire property area, including the Banana Zone located roughly 60 km south- west of Zone 5. 

Storage Facility (TSF). Discovery Metals mothballed the Boseto mine in late 2014. Tsimako said the first phase of develop- ment – the ‘Starter Project’– would see the development of a 3,6 Mt/a underground mine at Khoemacau’s Zone 5 deposit with the ore being trucked over a distance of 35 km (using 100-tonne trucks) to the Boseto concentrator for treatment. The concentrator will be upgraded to a capac- ity of 3,6 Mt/a to enable it to process all the ore produced by the Starter Project. The new mine is expected to pro- duce 155 kt/a of 42 % clean, dry copper (cu) concentrate, with 375 g/t silver (Ag) – which translates to 60 kt/a of copper metal and 2 Moz/a silver. Expected Cu and Ag recoveries are 87,8 % and plus 86 % respectively. Tsimako said the new mine – which would consist of three separate boxcuts and spiral decline systems, each able to

The Boseto concentrator, which will be upgraded to 3,6 Mt/a capacity (photo: Arthur Tassell).

AfriTin appoints civil works contractor for Uis AIM-listed AfriTin Mining, which is planning to restart the Uis tin mine in Namibia, has provided an update on its operations.

Commenting on the appointment, Afritin’s CEO, Anthony Viljoen, stated, “I am very pleased to announce this appointment, signalling the beginning of mine construc- tion, in what is another positive step in ensuring that planned production remains on track for commencement H2 2018. The appointment of local contractors attests to our commitment towards establishing Uis as a proudly Namibian operation. “We are confident in the contractor’s ability to execute on the project and we look forward to construction commencing in the very near future.” 

engineers. Phase 1 is designed to process 500 000 tonnes per annum. The commencement of construction of the civil works will involve the follow- ing: platforms and earthworks; upgrading and re-alignment of access and plant roads; a run-of-mine tip retaining wall; bulk infrastructure; and internal plant infrastructure. The contractor is a local, Namibian company specialising in construction and project management.

Following a comprehensive tender pro- cess, the company has appointed a civil works contractor, known as Ino Invest, which will be responsible for the construc- tion of the civil works required at the Uis mine. The construction is to be executed in accordance with the scope, description, drawings, specifications, delivery dates and terms and conditions provided by AfriTin’s

8  MODERN MINING  June 2018

MINING News

Capital cost estimate completed for lithium project

concentrate. Phase 3 contemplates 25 000 tonnes per year of lithium carbonate pro- duction in Walvis Bay, Namibia. Desert Lion’s project is located 120 km to the north-west of Windhoek, Namibia’s capital, and 30 km south-east of Karibib. 

processing of the historic run-of-mine stockpiles at the Rubicon and Helikon mines while Phase 2 will see large scale mining and concentrate production from in-situ material to produce a total of 250 000 to 300 000 tonnes per year of

Lithium developer and emerging lithium concentrate producer Desert Lion Energy Inc has completed the capital cost estimate for the Phase 1 flotation plant designed by Tulela Processing Solutions. The total estimated cost for the plant, capable of processing between 350 000 and 400 000 tonnes of feed per year, is estimated to be approximately C$7,0 million. “The Phase 1 flotation plant is a critical component of our execution strategy, allow- ing us to continue to generate cash and systematically de-risk the project. The low capital cost intensity of the Phase 1 flotation plant further demonstrates the jurisdictional and asset specific benefits of the Desert Lion Energy lithium project,” commented Tim Johnston, President and CEO of Desert Lion, which is listed on the TSX-V. The Phase 1 flotation plant will be used to process the fines from the historic run- of-mine stockpiles at the Rubicon and Helikon mines as part of a three-phase execution plan. Phase 1 envisages the

The Helikon 1 pit surrounded by historical lepidolite stockpiles and waste dumps (photo: Desert Lion).

June 2018  MODERN MINING  9

MINING News

A spirited defence of the coal industry was delivered by Andre Boje, CEO of Minergy, at the recent Botswana Resource Sector Conference (BRSC) in Gaborone, Botswana. Boje said that coal still accounted for 41 % of global electricity generation and 29 % of primary energy demand and predicted that it would continue to play an important role in delivering energy access long into the future. He noted that there were currently 1 600 coal-fired power stations either being planned or under construction in 62 countries which would, without older plant decommis- Botswana’s coal potential highlighted at BRSC sioning, expand the world’s coal-fired capacity by 43 %. On the environmental impact of coal, he said the coal industry had worked for decades on clean coal technologies such as Carbon Capture and Storage (CCS) and High Efficiency Low Emission (HELE). He added that modern coal-fired power plants using these technologies had reduced emissions to levels comparable to gas-fired powered plants. Boje said that Botswana’s coal reserves – which were of high-quality and economical to mine – were estimated to be in excess of

200 billion tons. He argued that the lack of development of these reserves was in part due to the focus on power-related rather than coal-specific projects and pointed out that power generation and coal mining were two separate industries. Citing missed oppor tunities for Botswana coal, he told his audience that Transnet Freight Rail (TFR) in South Africa had a capacity of 82 Mt/a but that only 75 Mt had been railed in 2017 due to coal shortages. He said that Botswana could have taken advantage of the 7 Mt shortfall to export coal, in the process creating more than 1 000 jobs and earn- ing revenue of US$525 million, as well as royalties of US$12,6 million and taxes of US$14 million. Minergy, which listed on the Botswana Stock Exchange in 2017, is well advanced with its Masama coal project, located 50 km north of Gaborone on the south-western edge of the Mmamabula coalfield. Minergy is developing Masama as a 2,4 Mt/a open- cast coal mine with the product earmarked for regional markets, including Botswana and South Africa. A wash plant for the project has been ordered and a mining contractor appointed and first saleable coal is expected in Q4 2018. Boje has a long record in the coal industry. In 1997 he founded Chandler Coal in South Africa which listed on the JSE in 2005 as Wescoal. He served as CEO of Wescoal, now a successful mid-tier pro- ducer, until 2015.  maximise the value of this extraordinary deposit – all at a time when the interest in palladium, the project’s primary metal, is increasing.” The recent infill drilling has intersected areas of 40 to 100 m of vertical thickness with palladium, platinum, gold and rho- dium mineralisation as anticipated in the ‘Super F’ areas of the current resource model. The recent intercepts compare favourably to the mine plan in an indepen- dent Pre-Feasibility Study for the project published in October, 2016. Current Platinum Group Element prob- able reserves at the Waterberg project are 12,3 Moz, consisting of 61 % palladium, 30 % platinum, 8 % gold and 1 % rhodium plus 191 million and 333 million pounds of copper and nickel respectively. 

Pictured on the Minergy stand at the recent Botswana Resource Sector Conference held in Gaborone are some of the company’s senior executives. They are (from left) Martin Bartle, Andre Boje (CEO), Lynette Kruger and John Astrup (photo: Minergy).

Waterberg DFS progressing according to plan Platinum Group Metals, listed on the TSX and NYSE American, says that work on a Definitive Feasibility Study (DFS) being completed by Waterberg JV Resources (Pty) Ltd, with the company serving as operator, and with input from Implats and Japan Oil, Gas and Metals National Corporation (JOGMEC), is proceeding according to plan.

the latest drilling, in calendar Q3 2018. This new resource model will form the basis for mine planning and reserve estima- tion in the DFS. The DFS remains on-track for completion at the end of calendar Q1 2019. Independent engineering for the DFS is underway by the jointly appointed engineering firms Stantec Consulting International and DRA Projects SA along with input from technical specialists from each of the joint venture partners. Comments R. Michael Jones, CEO of Platinum Group: “We have successfully completed the infill drill programme and we are working very closely with all our partners, stakeholders and engineers to

The latest phase of 38 000 m of infill drilling has been completed safely and on budget, bringing the total drill test- ing completed on the project to date to approximately 346 000 m. The company plans to publish an updated resource model and technical report for the Waterberg project, including results from

10  MODERN MINING  June 2018

MINING News

DRA backs new fund targeting the mining industry The DRA Group, a leading mining engi- neering firm, is to act as lead technical partner to CCP 12J Fund Limited (CCP 12J) in respect of engineering (EPC/M) and outsourced operations and maintenance services. qualifying companies, including junior mining companies, to access equity finance, while also providing a tax incen- tive to investors in the venture capital company.

both BHP Billiton veterans, and Nigel Townsend, founder of mining engineer- ing firm TWP, will all serve on the fund’s investment committee. DRA has committed an initial R150 million to the CCP 12J initiative. CCP 12J completed an initial third party capital raise after a soft launch in February 2018, shortly after it received its Financial Services Provider licence from the Financial Sector Conduct Authority (FSCA, previously FSB) and the venture capital company approval from SARS. Jean Nel says that the fund will not gen- erally look to invest in primary exploration, pre-production mining projects or early stage feasibility studies. “We plan to earn an attractive risk-adjusted return for our investors by pursuing lower risk ancillary or secondary mining-related projects such as tailings retreatment, dump reprocessing operations or brownfields processing plant expansions, where we can partner with existing industry players and can mitigate as many inherent risks as commercially possible,” he says. 

Jean Nel (former CEO of Aquarius Platinum) assisted in the development of CCP 12J as a solution that is aimed at both providing attractive risk-adjusted returns to investors and which will promote capital investment in South Africa’s under- invested mining sector. Besides the access to the skills and resources within DRA and Stockdale Street, CCP 12J has been able to attract a formidable team of industry stalwarts to senior management and investment committee positions. Paul Miller, experi- enced Nedbank CIB mining investment banker and former Keaton Energy Chief Executive Officer, has been recruited as Managing Director of the CCP 12J man- agement company while Mike Clare, financial services distribution specialist, will head up fund raising and distribu- tion. Michael Golding and Tom Borman,

CCP 12J is a new mining-focused ven- ture capital company, established in terms of Section 12J of the Income Tax Act. DRA will also be a principal investor in CCP  12J. Stockdale Street, a private equity fund manager which advises DRA’s largest shareholder, is a co-founder of CCP 12J. CCP 12J will leverage off both DRA’s extensive minerals processing, mining engineering and outsourced operations capabilities and Stockdale Street’s disci- plined focus on capital preservation, to makemining-related equity investments in South Africa. CCP 12J will seek to invest in mining projects which are, predominantly, related or ancillary to existing mining operations and which meet the criteria of a‘qualifying company’under Section 12J of the Income Tax Act. Section 12J was established to assist

June 2018  MODERN MINING  11

MINING News

In an update on its BK16 kimberlite proj- ect in Botswana, Tsodilo Resources, listed on the TSX Venture Exchange, reports that the first two parcels of diamonds (101 stones – 18,57 carats and 130 stones – 17,79 carats) have been delivered to Lucara Diamond Corp for cleaning at its acid cleaning laboratory located at the Diamond Technology Park (DTP) in Gaborone, Botswana. The two parcels consist of diamonds recovered as of May 4, 2018. The diamonds will be stored at I Hennig & Co’s secured facilities at the Tsodilo delivers BK16 diamonds for acid cleaning DTP after cleaning has taken place. Ray Ferraris of QTS-Kristal Dinamika – South Africa, has been retained to initiate a Size Frequency Distribution (SFD) study as well as a Diamond Reconstruction and Breakage (DRB) study after the stones have been acidised. The SFD study is utilised to predict the diamond size frequency in a diamond deposit and contributes significantly towards the estimation of expected rev- enue. The purpose of the DRB study is to establish a first-order profile for the extent

and nature of diamond breakage related to natural or imposed industrial causes. This breakage study will also do a comparison with a parcel of historic dia- monds that were recovered between 1999 and 2000 from previous operations. Those diamonds were ‘mined’ from an old underground shaft and tunnel system and were not impacted by the LDD drilling programme. All 243 samples generated by the LDD programme at BK16 (which was under- taken last year) and all historical tailings have now been processed through the company’s DMS plant located in Letlhakane, Botswana. The recovery unit, which has been established in Tsodilo’s security area in Maun, has recently moved to a double shift operation of 15 daily hours to speed up the recovery process. The recovery unit is sorting both the main LDD sample concentrates and the audit retreatment samples through Tsodilo’s Bourevestnik (BV) Polus-MX-ray sorter. The plus 3mmBV concentrates will be re-crushed, screened and reprocessed through the X-ray unit to recover any locked-up diamonds in the 3 to 12 mm fraction. The BK16 kimberlite project is located within the Orapa Kimberlite Field (OKF). In 2017, the OKF area produced 11,07 million carats. Of the 83 known kimberlite bodies in the OKF, eleven have been or are cur- rently being mined.  Bara is an engineering consul- tancy based in Johannesburg with extensive experience in African graphite and vanadium. The Scoping Study is expected to be completed by end-July 2018, putting the project on track for production and cash- flow by mid-2019. Mustang Managing Director Dr Bernard Olivier said: “This appointment is another key step in our strategy to be in produc- tion at Caula by the middle of next year. We have multiple workstreams underway to deliver a maiden vanadium JORC resource and an upgraded graphite resource along with metallurgical testing for an integrated vanadium and graphite processing flow- sheet. We are also awaiting the results of ore-sorting testwork in Australia.” 

Tsodilo’s DMS plant – which has been extensively refurbished – in Letlhakane (photo: Tsodilo).

ASX-listed Mustang Resources says that its strategy to develop the Caula vanadium- graphite project in Mozambique is well Bara to undertake Caula Scoping Study on track with the appointment of highly regarded specialists Bara International to undertake the Scoping Study.

Change at the top at Kore Potash Kore Potash, the potash development company whose flagship asset is the 97 %-owned Sintoukola potash project in the Republic of Congo, has appointed Stuart Bradley (Brad) Sampson, aged 52, as Chief Executive Officer and director, effec- tive from 4 June 2018. Sampson, a mining engineer, was most recently CEO of ASX-listed Tiger Resources, a copper producer in the DRC which in January 2018 entered into a binding agree-

ment to sell its assets to a Chinese group for US$250 million. Prior to this, he held senior positions at Newcrest Mining, one of the world’s largest gold mining companies, including General Manager of Newcrest’s West African operations. From 2008 to 2013, he was the CEO of AIM/ASX-listed Discovery Metals, where he was hired to lead the proj- ect financing, construction and subsequent production of the company’s flagship cop- per asset in Botswana. 

12  MODERN MINING  June 2018

MINING News

Aukam processing plant commissioned and has a current capacity of 650 tons per annum. Construction is already underway for the installation of a larger mill with an 11 000 ton per annum capacity.

grab samples (2 to 30 kg) from across the stockpiled dumps. Aukam was established in 1940 and subsequently produced approximately US$30 million of graphite at today’s prices. The site is located on approximately 27 870 ha in southern Namibia close to the port city of Luderitz and is estimated to con- tain a significant amount of high grade, vein type graphitic material. The property hosts three underground adits that were mined periodically between 1940 and 1974.  items of earthmoving equipment. Prospect says it is excited about moving the Arcadia project into the development and build phase. Since the updated off-take agreement was announced on 4 April 2018, the company is now in complete control of the design, build, commissioning and financing of the mine and concentrate plant. The company expects to secure more than US$55 million in funding for the first phase of Arcadia that will see it pro- duce lithium concentrates for export by 30 June 2019. 

Next Graphite, co-licence joint interest holder in the Aukam vein graphite project in Namibia, reports that the processing plant at the project has been commis- sioned successfully and an initial shipment of graphite concentrate has been made. The plant was constructed between December 2017 and March 2018, with ini- tial throughput and optimisation reached during March and April 2018. To date, the plant has generated 5 tons of graph- ite concentrate grading between 88 and 95 % Carbon as Graphite (Cg), of which 2,5 tons has been shipped to Perpetuus Carbon Technologies for the manu- facture of graphenes to be used in the automobile and bicycle tyre industry. Next Graphite’s joint venture partner, Gratomic Inc, is currently in collaboration with Perpetuus to build on Perpetuus’capa- bility to initially provide approximately 550 tons of surfaced modified graphenes per annum to support the volumes required by the tyre manufacturing industry. The Aukam processing plant uses a sim- ple crushing, grinding and flotation system

Graphite feed for the Aukam process- ing plant is obtained from screening and sorting of stockpiles produced by histori- cal and recent mining. An average feed grade of 56,29 % Cg with a range of 41,55 to 63,87 % Cg was determined from ten

JRG to undertake earthmoving at Arcadia ASX-listed Prospect Resouces has appointed J.R. Goddard (Pvt) Ltd (JRG) as the earthmov- ing contractor for the Arcadia lithiumproject near Harare in Zimbabwe. JRG is expected to begin mobilisation of plant and equipment immediately and to break ground in the coming weeks.

According to Prospect, JRG has been at the forefront of the construction industry in Zimbabwe since 1982. The company is a specialist in large-scale earthworks, civil con- struction and infrastructure development. It currently owns and operates 120 major

MINING News

Shanta Gold updates Singida resource and 5 m at 10,35 g/t gold from 120 m in hole SC713.

including geology, mine planning and process design. Project capital funding is being targeted from external third parties at the Singida asset level. “The objective of the modest 1 600 metre RC drilling programme in Q1 2018, which targeted two of the seven key tar- gets at Singida, was to upgrade resources from the inferred to the measured and indicated (M&I) categories,” comments Eric Zurrin, CEO of Shanta. “This objective has been achieved – M&I resources have now increased to nearly 400 000 oz of gold at 2,08 g/t. A geophysics programme is planned for Q3 to test upside at the Cornpatch and Cornpatch West targets as we target ongoing expansion and upgrad- ing of the resource.” 

AIM-listed Shanta Gold has announced an updated JORC-compliant mineral resource estimate (MRE) and project update on its Singida gold mining project in Central Tanzania. Highlights are a 56 % increase in mea- sured resources and a 12 % increase in measured and indicated resources, total- ling 381 koz of gold at 2,08 g/t. Only two of the seven targets within the project’s mining licences were tested in the recent drilling campaign. As previously announced in April 2018, drilling intersections included 10 m at 20,82 g/t gold from 138 m in hole SC702, including 3 m at 57,13 g/t gold from 138 m,

The project will be connected to the central government power grid, which is anticipated to pass within 500 m of the proposed location of the project site. Construction of the power supply line is expected to be completed by the end of 2018, funded by the government and an external donor. In March 2018, Shanta established an internal Owner’s Team to advance desktop work for the project using existing internal resources, at no additional cost to Shanta. A number of workstreams are ongoing by the Owner’s Team across all disciplines

The camp at the Singida project in central Tanzania (photo: Shanta Gold).

14  MODERN MINING  June 2018

MINING News

HPGR testwork for Achmmach produces positive results which is scheduled for release shortly.

both with capital and operating costs. “The advantages of these technolo- gies are considerable – the processing plant will require less equipment and the tailings dam will be smaller in size, which will reduce the project’s environmental footprint and capital costs. In addition, reagent, power and water use will all be lower, reducing operating costs.”  “We are excited to continue our long- standing partnership with Sierra Rutile, which has included three feasibility stud- ies and two engineering, procurement and construction (EPC) projects. This latest proj- ect will help to consolidate our partnership in West Africa,” comments Neale Goddard, DRA’s Executive Vice President for Europe, Middle East and Africa. The estimated DRA project value is US$55 million and the contract is expected to be completed by June 2019. 

ASX-listed Kasbah Resources has com- pleted a High Pressure Grinding Roll (HPGR) testwork programme on run-of- mine ore from the Achmmach tin project in Morocco with very positive results. The testwork confirmed the ability of HPGR to deliver the required size reduc- tion of ore more efficiently and cost effectively than conventional rod mill- ing. Metallurgical analysis of the HPGR testwork results also confirms there are no negative metallurgical impacts with regards to tin recovery. An HPGR will be included in the Achmmach processing plant replacing the rod mill or vertical hammer mills con- sidered in previous studies. The use of an HPGR in the circuit means that only two- stage crushing is required, rather than the three-stage crushing considered in previ- ous studies. HPGR and ore sorting will both be included in the new Definitive Feasibility Study (DFS) for the Achmmach project,

Kasbah’s Chief Executive, Russell Clark, commented:“The recent metallurgical test- workprogrammehasdeliveredverypositive outcomes and has confirmed that both ore sorting and High Pressure Grinding Roll technology be included in the Achmmach processing plant. These will have a posi- tive impact on the project economics,

DRA Global secures West African EPC contract Global engineering firm DRA has secured a contract with Sierra Rutile Limited, a wholly owned subsidiary of Iluka Resources Limited, for the expansion of Sierra’s mineral sands operations in the Bonthe District of Sierra Leone. Sierra’s Gangama plant, which was originally constructed by DRA in 2016, will double its capacity to 1 000‑1200 t/h at the project’s completion.

The project also includes the expansion of the Lanti front end circuit and the refur- bishment of the Lanti floating concentrator.

June 2018  MODERN MINING  15

MINING News

TSX-listed Ivanhoe Mines has announced that a large capacity rock crusher has been successfully installed 1 150 m below surface at the upgraded Kipushi zinc-cop- per-silver-germanium mine in the DRC. The unit – a Sandvik jaw crusher – has a maximum capacity of 1 085 tonnes an hour. After the 54-tonne machine was disassembled on surface, the pieces were lowered down Kipushi’s main pro- duction shaft – Shaft 5 – and installed in the crusher chamber. Reassembly of the crusher is underway and commissioning is Jaw crusher installed underground at Kipushi expected to begin this month (June). “The installation of the massive new rock crusher at the bottom of Shaft 5 is a noteworthy engineering accomplishment,” said Robert Friedland, Executive Chairman of Ivanhoe. “It marks the final, major underground infrastructure upgrading project needed to resume underground mining, crushing and hoisting operations at Kipushi.” Friedland said negotiations were ongoing with government agencies – Gécamines, the state-owned miner and

Ivanhoe’s partner at Kipushi, and SNCC, the DRC’s national railway company – and potential project financiers to advance agreements to launch a new era of com- mercial production at Kipushi. “Since acquiring our 68 % interest in the Kipushi project in 2011, our team has worked with Gécamines to achieve our shared objective of resuming commercial production,” Friedland added. “In paral- lel with ongoing mine upgrading work and completion of the definitive feasibil- ity study, we are evaluating a number of proposals we have received to fund the remaining infrastructure construction.” Built and then operated by Union Minière for 42 years, Kipushi began min- ing a reported 18 % copper from a surface open pit in 1924. Then it transitioned to become a high-grade, underground cop- per, zinc and germaniummine. Gécamines gained control of Kipushi in 1967 and operated the mine until 1993, when it was placed on care and maintenance due to a combination of economic and political factors. The planned restoration of production at Kipushi is based on initial mining that will be focused on the Big Zinc deposit, which was discovered by Gécamines before it idled the mine. No mining has ever been conducted on the Big Zinc’s mineral resources.  where he worked for De Beers. He joined Firestone in 2014 as the Mineral Resources Manager on the project team and in 2016 became General Manager of Liqhobong mine. His responsibilities to date have included managing and implementing the commissioning and ramp up to commer- cial production of Liqhobong, day-to-day managing of site operations, as well as producing the recently approved revised mine plan. Prior to joining Firestone, Bosma was General Manager of a joint venture between De Beers and AngloGold Ashanti. He previously worked as a vice president for Pala Investments, an international min- ing investment fund based in Switzerland. He is a qualified geologist and holds BSc (Honours) and MSc degrees, as well as an MBA from the University of Cape Town’s Graduate School of Business. 

Main frame of the new underground rock crusher being transported to the 1 150-metre level crusher chamber (photo: Ivanhoe).

New CEO for Firestone Diamonds

AIM-listed Firestone Diamonds, which operates the Liqhobong diamond mine in Lesotho, has appointed Paul Bosma as its new Chief Executive Officer (CEO) with effect from 1 July 2018. His appointment

follows Stuart Brown’s decision to step down as CEO and Director of the company. Bosma has more than 24 years’ experi- ence in the mining industry, of which 14 years have been in the diamond sector

Companies appointed to deliver Toliara PFS Base Resources, listed on the ASX, has appointed Mineral Technologies and Lycopodium to deliver the Pre-Feasibility Study (PFS) for its Toliara mineral sands proj- ect in the south-west of Madagascar.

robust and fit-for-purpose mineral process- ing plants. Base Resources anticipates PFS comple- tion in the March quarter of 2019. The PFS will build on the considerable body of work completed by previous owners of the Toliara Sands project and form the foundation for an accelerated feasibility study programme that aims to advance the project toward a decision to proceed to construction in the second half of 2019. 

As a team, Mineral Technologies and Lycopodium have previously undertaken studies and projects in minerals sands, including previous work on the Toliara Sands project, and – says Base Resources – are known throughout Africa for delivery of

16  MODERN MINING  June 2018