Modern Mining June 2019

June 2019 Vol 15 No 6 www.crown.co.za M ODERN MINING

IN THIS ISSUE…  Ivanhoe advances Kakula  Wahgnion in the home straight  Sanbrado enters construction  Hydro powers DRC mine

MODERN M I N I N G

CONTENTS

JUNE 2019

ARTICLES

COVER 18 Osborn celebrates its centennial COMPANIES 22 Acquisition a major boost toWorley’s mining business REGIONAL FOCUS: WEST AFRICA 26 Wahgnion in its final phase of construction 30 Cardinal targets an uplift in gold recoveries at Namdini 34 Sanbrado gold project moves into execution 38 Mako gold mine turns in a “superb” performance FEATURE: POWER SUPPLY AND ENERGY EFFICIENCY 40 Kibali demonstrates the power of hydro 44 Hybrid power solutions gain traction in mining SAFETY 48 Dräger completes order for long-duration self-rescuers Commissioning of Uis processing plant underway 10 Hummingbird prepares updated LoM plan for Yanfolila 11 Lucapa continues the hunt for source of Lulo alluvials 12 Pan African’s gold production on the increase 13 Thorny River bulk sampling delivers diamonds 14 Construction of Kakula copper mine now in full swing 16 Thor signs EPC contract for Segilola processing plant 17 Tiris project delivers first samples of yellowcake PRODUCT NEWS 50 Orica releases automated fragmentation measurement system 50 Even cleaner coal with Multotec’s X10 spiral 51 World’s largest platinummine saves withWarman® pump 52 Slogging Hammer andWheel Slogger upgraded 53 Largest-ever stator rewind completed without a hitch 54 Multipurpose drill rig launched by Sandvik 54 Ecotails™ promises environmental bonanza for mines REGULARS MINING NEWS 4 Kenmare Resources approves project to moveWet Concentrator Plant 6 7 8 Boipelo wins New Clydesdale mining contract New Volvo A60H hauler on show in Botswana

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

Darryl James Circulation Brenda Grossmann Publisher Karen Grant

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Deputy Publisher Wilhelm du Plessis Printed by: Shumani Mills Communications

The views expressed in this publication are not necessarily those of the editor or the publisher. Published monthly by: Crown Publications cc P O Box 140, Bedfordview, 2008 Tel: (+27 11) 622-4770 Fax: (+27 11) 615-6108 e-mail: mining@crown.co.za www.modernminingmagazine.co.za

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Publisher of the Year 2018 (Trade Publications)

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Cover An Osborn 44 Cone Modular installed in Kazakhstan. See page 18 for a full story on Osborn, which is celebrating its 100th anniversary this year.

55 Mobile water station ideal for mines 56 Anchor customised for mining client

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Average circulation (January–March 2019) 5339

June 2019  MODERN MINING  1

COMMENT

Miners meet in Gaborone

I n last month’s issue, we looked at the state of the mining industry in Botswa- na. Since then, I’ve had the opportunity to attend the annual Botswana Resource Sector Conference (BRSC) in Gaborone, attended this year by about 300 delegates, and meet – or renew my acquaintance with – some of the players in the country’s mining sector. The conference was opened by Botswana’s Minister of Mineral Resources, Green Technol- ogy & Energy Security, Eric Molale. Probably the pick of the presentations deliv- ered at the conference was one given by Johan Ferreira, CEO of both Cupric Canyon Capital and its subsidiary in Botswana, Khoemacau Copper Mining, in which he updated delegates on the nearly US$400 million Khoemacau cop- per/silver underground mine in the Kalahari Copperbelt. He told delegates that the project was now very much in the execution phase, with pre- liminary work – such as the building of a construction camp – having started in October last year and access road construction, bush clearing and bulk earthworks in December. The excavation of the three big boxcuts the project requires kicked off in March this year and is already well advanced. The major contractors on site are Concor for the access roads and other civil works and Kalcon for the boxcuts while the keenly contested underground min- ing services contract has just been awarded to Ausdrill subsidiary Barminco. Johan – who I had the opportunity to chat with at the conference – is well known, of course, in mining circles, having served as GM of both the Moab Khotsong and Great Noligwa gold mines in South Africa and as Senior VP, South African Operations for AngloGold Ashanti, after which he enjoyed a stint as a senior executive with Newmont in Ghana, ending as Regional Senior VP – Africa Region. He joined Cupric in 2017 as Head of Africa Operations but has since taken over as CEO, based mainly in Gaborone. Also presenting on copper were Julian Hanna and Kebalemogile Tau of MOD Resources/ Tshukudu Metals, who provided an update on the T3 (Motheo) project, while Nigel Forrester of Mount Burgess Mining brought delegates up to speed on the Kihabe poly-metallic project. Another speaker dealing with base metals was Roger Key of Kalahari Key Mineral Exploration Company, which is exploring for Ni and PGMs in the Molopo Farms Complex’s Feeder Zone. Moving on from copper and given that 2019 marks the 50th anniversary of the establish- ment of Debswana, the joint venture between De Beers and the Government of Botswana that

owns four of the country’s five active diamond mines, it was not surprising to see that the group was well represented at the BRSC with a large stand in the exhibition area. A presen- tation recounting Debswana’s achievements was given by Mooketsi Puso, Lead Engineer, Projects. He told the Debswana story very well although I would have liked to have heard more on the Cut 9 and Cut 3 projects at Jwaneng and Orapa respectively. The only other speakers on diamond min- ing and exploration were James Campbell, MD of Botswana Diamonds, who gave an excellent summation of the company’s activi- ties in both Botswana and South Africa, and Dr Leon Daniels, CEO of Pangolin Diamonds, who assessed the future of Botswana’s dia- mond resources. Leon – who discovered his first kimberlite at the age of 21 – is a veteran of diamond exploration in Botswana and his company is currently one of the most active explorers in the country, with 14 prospecting licences in its portfolio. Disappointingly, there were no presentations on coal, which was surprising given that there are at least three new coal mines in the pipeline in Botswana, although there was some cover- age of coal bed methane (CBM) with Tim Hoops of Strata-X Energy describing his company’s Serowe CBM project. A big surprise to me was that there is actu- ally a graphite project in Botswana. This is being pursued by Tonota Resources, whose Exploration Manager, Nico Scholtz, addressed delegates. I talked with Nico at the conference and will be providing further coverage on the project in a future issue. Finally, I should make mention of a presen- tation by Charles Siwawa, CEO of the Botswana Chamber of Mines, who – among other things – displayed an interesting graph showing how mining’s contribution to Botswana’s GDP has been in decline for years. In 1990 mining accounted for a whopping 45 % of GDP but this figure is now hovering around 15 %. Obviously, one of the reasons for mining’s reduced contribution is that Botswana has a far more diversified economy than 30 years ago. Having said this, there’s no doubt that the coun- try’s mining sector has the potential to regain some of the ground it has lost, with coal and copper leading the comeback. While it’s highly unlikely that mining will ever again dominate the economy to the extent it did in 1990, it would certainly not surprise me to see its contri- bution to GDP increasing over the next several years, as projects in the Kalahari Copperbelt and new coal mines come on stream. Arthur Tassell

Mining’s contribution

to Botswana’s GDP has been in decline for years. In 1990 it accounted for 45 % of GDP but this figure is now hovering around 15 %.

June 2019  MODERN MINING  3

MINING News

The Moma TitaniumMinerals Mine showing WCP B (photo: Kenmare).

Kenmare approves project to move Wet Concentrator Plant eral reserves of 220 Mt averaging 4,4 % Total Heavy Mineral (THM). The life of mine average grade mined by WCP B at Pilivili is expected to be 4,6 % THM; in the first four years of production the average grade mined is expected to be 5,3 % THM.

Kenmare Resources, which has a pri- mary listing on the LSE and a secondary listing on the Irish Stock Exchange, has announced the results of the Definitive Feasibility Study (DFS) for the relocation of its Wet Concentrator Plant (WCP) B to the Pilivili ore zone at its Moma Titanium Minerals Mine in northern Mozambique. With the DFS confirming the tech- nical and economic feasibility of relocating WCP B to Pilivili, the project has been approved by Kenmare’s board. “The results of theDFS confirmour plans for relocating WCP B to Pilivili. Kenmare is on track to deliver a 20 % increase in production at Moma on a sustainable basis from 2021 and the move of WCP B to Pilivili will be the final step in achiev- ing this goal,” comments Michael Carvill, Kenmare’s MD. “Earlier this month (June), we received the first of two environmental permits required for the relocation and we expect to receive the second in Q3-2019, with the construction of the purpose-built road commencing immediately thereafter. I look forward to providing further updates on our progress with this growth project during the coming 18 months.” Kenmare previously announced three development projects that together have the objective of increasing production to

1,2 Mt/a of ilmenite (plus co-products) on a sustainable basis from 2021. The first development project, the 20 % capacity expansion of WCP B, was commissioned by the end of 2018, on time and at a cost of more than 25 % below budget. The second development project, the con- struction of WCP C, is well underway, with commissioning scheduled for Q4-2019. The third project is the relocation of WCP B to Pilivili, which is planned to be completed by the end of 2020. This final project targets increased total production by accessing higher grade ore in the Pilivili ore zone. WCP B began mining the Namalope ore zone in 2013 and is expected to complete the current mine path in Q3-2020. All ore zones within the Moma portfolio were considered for the relocation of WCP B but Pilivili was selected due to the favourable combination of higher grades, strong co- product credits and free flowing sand with low slimes, enabling ease of mining and processing. Additionally, Pilivili is located 23 km from Namalope and the existing Mineral Separation Plant (MSP), allow- ing for ease of heavy mineral concentrate (HMC) transportation by pipeline. The Pilivili ore zone has the highest grades within Moma’s portfolio, with min-

Due to these higher grades, it is antici- pated that production from Pilivili will increase overall HMC production by an average of 130 000 t/a, contributing to a total of 1,2 Mt/a of ilmenite production (plus co-products) from 2021. Additionally, Pilivili’s mineral reserves have higher zir- con and rutile co-product credits than Namalope (with 0,25 % zircon and 0,08 % rutile in ore), which should contribute to lower cash operating costs per tonne of ilmenite. As a result of the relocation, Kenmare expects production from WCP B to be suspended for up to 12 weeks, from the completion of mining at Namalope to the start of commissioning at Pilivili. Additional mining areas have been identi- fied for WCP B at Namalope to ensure that production is maintained in the event of delays to the project execution schedule. Pilivili has a mine life of eight years, after which WCP B will mine its way to the adjacent ore zones of Mualadi and Nataka. Consequently, Kenmare believes that

4  MODERN MINING  June 2019

MINING News

provided by a new 16 km, 110 kV power line adjacent to the purpose-built road, supported by a static synchronous com- pensator to improve reliability. Additional annual operating costs of up to US$5 million are estimated for the WCP B operation at Pilivili, primarily due to the increased cost of transporting HMC from Pilivili to the MSP. However these overall increased operating costs should be more than off-set by the additional production due to the higher grades at Pilivili, which will lead to a decrease in unit operating costs. Kenmare is targeting cash operating costs per tonne of US$120-130 (in 2018 real terms) from 2021.  Kenmare received approval of the ESHIA for Pilivili from the Ministry of Land, Environment and Rural Development in Mozambique in May 2019, in line with the project delivery timeline. The company expects the ESHIA for the purpose-built road to be approved in Q3-2019.  “We will maintain our core focus in Mauritania of getting the Tiris uranium project DFS completed and the proj- ect into production as soon as possible. However, given our extensive knowledge of Mauritania and our planned activities in adjoining areas, this presents another high-quality opportunity in a country we know well. It is an excellent opportunity, in our opinion, to add significant shareholder value for Aura Energy.” Aura is not aware of any significant prior exploration on the permit area despite the area being previously held by Normandy La Source (whomade the initial discovery of the Tasiast gold deposit) during the 1990s. The area of the Nomads permit, which is close to the largeTasiast mine, has not been exposed to modern exploration techniques. 

along a purpose-built road, including a causeway estuary crossing into the new mining pond at Pilivili. This is the same method that was used to transport the recently completed WCP C dredge in the Netherlands. The total capital cost estimate for the relocation of WCP B to Pilivili is US$106 million, including a US$15 million contin- gency. Kenmare intends to fund the total capital cost from its balance sheet and internally generated cash flow. The most significant infrastructure requirement for the relocation is the con- struction of the purpose-built road for the transportation of WCP B and its dredge. The road will be 23 km in length and 66 m wide, and construction will take approxi- mately eight months from Q3-2019. HMC produced at Pilivili will be transported to the MSP using a 16 km overland pipe- line and positive displacement pumping system. Electrical power at Pilivili will be The Nomads permit adjoins and is along strike from Aura’s Taet exploration permit which covers +30 km of strike length of the Tasiast greenstones. Peter Reeve, Aura Energy’s Executive Chairman, said: “We are delighted with this strategic addition to our project area in the Tasiast gold district. It is unusual today to be able to obtain access to virtually unexplored greenstone belts in established gold-bear- ing provinces such as this. We are excited at the potential given the 20 Moz Tasiast gold deposit is the only known significant gold resource in a field where little exploration has been conducted and in a geological setting where gold deposits tend to occur in clusters elsewhere in the word.

the relocation of WCP B from Namalope to Pilivili will be the only move of this kind that is necessary during WCP B’s economic life. The DFS was completed by Hatch Africa, a specialist EPCM consulting firm with strong experience in mineral sands, and overseen by Kenmare’s project develop- ment team. It included an independent peer review process. A number of different methods of relocating WCP B to Pilivili were consid- ered, including disassembly/reassembly and alternate transportation options for the assembled plant by road and/or sea. Moving the assembled plant by road has the lowest risk profile and, accordingly, Kenmare will appoint a specialist heavy lifting and transport contractor to relocate WCP B and its dredge by road. The contractor will use self-propelled modular transporters (SPMTs) to transport WCP B out of its mining pond at Namalope,

Aura Energy extends its position in greenstone belt Aura Energy, listed on the ASX and AIM, has signed a farm-in/joint venture agreement to extend its already significant position in the Tasiast archean greenstone belt.

The agreement has been executed with Nomads Mining Company sarl of Mauritania and allows Aura to earn a 70 % interest in Nomads’ 100 %-owned exploration permit of 160 km 2 which covers 50 km 2 of Archean greenstones in the Tasiast greenstone belt. The exploration permit lies approxi- mately 35 km along strike from Kinross’ giant +20 Moz Tasiast gold mine and 30 km from Algold’s Tijirit gold deposits which occur in the adjoining greenstone belt. Algold has reported a resource of +1 mil- lion ounces of gold at Tijirit.

June 2019  MODERN MINING  5

MINING News

Empowered joint venture company Boipelo Mining Contractors has won a con- tract from Universal Coal for mining and related services at New Clydesdale Colliery in Mpumalanga. According to Charles Makgala, Execu­ Boipelo wins New Clydesdale mining contract

tive Partner at Boipelo Mining Contractors, the turnkey contract covers three under- ground sections of the mine and work began in February 2019. The current operation is on the 2# lower with a complete suite of equipment to support three continuous miner sec- tions. Boipelo Mining Contractors is also responsible for the installation and main- tenance of the conveyor and ventilation infrastructure. “Opportunities do exist in the current operation for expansion and we will con- tinuously be on the look out to improve efficiencies in order to surpass our contrac- tual obligations. The transition to Boipelo Mining Contractors has been well received and was achieved through extensive consultation with New Clydesdale man- agement and the affected employees,”says Makgala. The plant is supplied by Boipelo Mining Contractors, which is a joint ven- ture between leading mining contractors Murray & Roberts Cementation and Makgala’s Amandla TM Group. “This is an exciting project for us, and will employ 175 people directly, over and above which there will be sub-contractors on site when necessary,”says AllanWidlake, Boipelo Mining Contractors Executive

Boipelo Mining Contractors has secured a contract from Universal Coal for mining and related services at New Clydesdale Colliery in Mpumalanga.

The current operation is on the 2# lower with a complete suite of equipment to support three continuous miner sections.

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MINING News

Partner and New Business Director at Murray & Roberts Cementation. “We are bringing a depth of coal min- ing experience and expertise from both JV partners, and are confident that we will deliver an efficient and cost effective solu- tion to the client.” As part of the mining services offered, Boipelo Mining Contractors will also be negotiating the geological features of three mining sections, which is likely to require drilling and blasting of dykes in the orebody when necessary. New Clydesdale Colliery, whose roots go back to its initial formation in 1942, when the first exploration borehole was drilled, produces thermal coal for local consumption and the export market. The mine has been operated by Universal Coal since 2016, and is one of four in South Africa owned by the company. “We are pleased to be able to work closely with Boipelo Mining Contractors on this important contract,” says Chris Silver, General Manager at Universal Coal New Clydesdale Colliery.“The joint venture represents a solid collaboration of enter- prising new entrants and well-established players. While expecting a high level of quality in the services to be delivered, we are also proud to be contributing to mean- ingful transformation in the mining sector.” Boipelo Mining Contractors is a Level 2 B-BBEE accredited company with a strong focus on sustainability in terms of health, safety, quality and environmental management. 

NewVolvo A60H hauler on show in Botswana The new 60-ton payload Volvo A60H articu- lated hauler, the biggest truck of its type in the world, was on show in Botswana for the first time at the recent Botswana Resource Sector Conference (BRSC), held at the Gaborone International Convention Centre on 10/11 June.

Keitumetse. Babcock is the Southern African dealer for Volvo Construction Equipment. Babcock has a strong presence in Botswana and has recently notched up some strong sales in the country, includ- ing an order from Kalcon for 12 Volvo A40G articulated haulers and two Volvo EC750DL crawler excavators. Kalcon has deployed the machines on its contract to excavate the boxcuts for the new Khoemacau copper/ silver mine in the Kalahari Copperbelt. 

Seen with the machine are Kobus Nortje (right), Regional Manager Service/ Equipment Botswana, Babcock International Group, and colleagues Davis Kopi and Mavis

Positive results from deep drilling at Kunche West African gold explorer and devel- oper Azumah Resources, listed on the ASX, reports that three widely-spaced exploratory drill holes at its Wa gold proj- ect flagship Kunche deposit have all intersected mineralisation down to at least 500 m below surface and returned some exceptionally high-grade intercepts.

in depth in West Africa, Canada, Western Australia and elsewhere in the world. The confirmation of deep mineralisa- tion at Kunche follows the recent discovery of substantial, high-grade mineralisation at the nearby Bepkong East Lode deposit. This has a drill defined strike of over 300 m and has been confirmed to extend to at least 580 m below surface. “Given the excellent drilling results since our last Wa gold project mineral resource upgrade in September 2018, we would expect to be able to increase the current 2,5 million ounces, especially as we undertake further exploration below and in the vicinity of existing deposits and more generally across our vast tenure of prospective Birimian terrain, the host rocks to a majority of West Africa’s world class gold mines,” comments Azumah MD Stephen Stone. 

zones extending below the planned Kunche open-pit mine. The holes, drilled 540 m apart for a total of 2 120 m, were specifically designed to test for repetitions and vertical extensions of the ‘main’ central mineralised ‘fluid con- duit’ discovered at Kunche a year ago. Whilst generally narrow intercepts were returned in this latest round of drilling, the discovery of gold at these depths marks a step-change in depth expectations for the Kunche deposit and provides considerable geological information to guide the next phase of drilling. This phase will infill back up towards the surface as well as probe for mineralisation to even greater depths as other examples of orogenic, structurally controlled ore deposits are known to extend to over 2 km

Notable intercepts from this first con- certed phase of deep drilling at Kunche included 0,5 m at 168,3 g/t Au (over 5 oz of gold per tonne) from 650,5 m (KRCD855) and 0,5 m at 89,39 g/t Au (nearly 3 oz of gold per tonne) from 613,5 m (KRCD853) with visible gold observed at 650,5 m and 613,5 m respectively. These results raise expectations that infill drilling could identify multiple, min- eralised ore shoots associated with feeder

June 2019  MODERN MINING  7

MINING News

Commissioning of the processing plant at Uis has commenced (photo: AfriTin).

Commissioning of Uis processing plant underway

AIM-listed AfriTin Mining, whose flagship asset is the Uis tin mine in Namibia, has issued an operational update relating to its mining and processing facility at Uis as part of the Phase 1 Pilot Plant project. Commissioning of the processing plant has now commenced and is being con- ducted in a phased manner, starting with the testing of mechanical installations and progressing to continuous ore beneficia- tion. The plant consists of two main parts: a 4-stage crushing circuit and a 3-stage concentrating circuit. During the commissioning, the plant will produce initial tin concentrate; how- ever, hot commissioning and continuous plant operations will likely commence in July 2019. This represents a slight deviation from previous guidance by the company stating that commercial tin concentrate

production would begin in Q2 2019. This is due to longer than expected lead times in the procurement of equipment, material and construction services. Commissioning will be followed by a production ramp up spanning four months with the goal of achieving design capacity before the end of Q4-2019. Mi n i ng cont rac to r s have been mobilised and have commenced with continuous mining operations at the Uis mine. Initially, outcropping pegmatites of the V1 and V2 ore bodies will be targeted, utilising an opencast mining method and production will be ramped up accord- ing to the schedule of the processing plant. AfriTin is conducting overburden stripping at a ratio of 1,5 tonnes of over- burden to one tonne of ore so as to ensure the sustainable exposure of ore over the tion. The Independent Transport Study was undertaken by Alistair Group. “Not only does the result of the 5 Mt/a (Case 2) study confirm the excellent quality of the Manono project, it further under- lines the expandability of the project,” says AVZ Minerals’ Managing Director, Nigel Ferguson. “Management will now turn its attention to selecting the optimal through- put level in conjunction with consultants working on the DFS.” 

life of the Phase 1 operation. AfriTin says it is in the process of recruit- ing operational personnel. Approximately one-third of the total planned comple- ment of 90 people has been appointed, including the entire management team. General infrastructure to the operation is now in place, including water supply from groundwater sources and electrical power supply from diesel generating sets. The company has concluded an agreement with the Namibian Power Corporation for the provision of grid electrical power and construction of the infrastructure required for the grid power connection has started. At Uis, formerly the world’s largest hard- rock tin mine, management are employing a two-fold strategy: the Phase 1 Pilot Plant is designed to process approximately 500 000 tonnes per annum producing approximately 60 tonnes of tin concentrate per month while Phase 2 will comprise the planned operation of a 3 Mt/a processing facility, producing approximately 5 000 tonnes per annum of tin concentrate. Commenting on the developments, AfriTin's Chief Executive Officer, Anthony Viljoen, stated: “We have been looking forward to this exciting phase of the proj- ect since breaking first ground at the end of 2018. While there is work to be done to achieve steady-state production, the significant step of commencing produc- tion and first concentrate is a momentous milestone for the company.” 

Another step forward for lithium/tin project AVZ Minerals, listed on the ASX, has announced the extended results of the Scoping Study for 5 Mt/a of capacity at the Manono lithium and tin project in the DRC. The Independent Study was undertaken by CPC Project Design (CPC). In addition, an independent economic model and financial analysis was undertaken and completed by Alan Dickson & Associates (ADA). Both doc- uments utilised measured, indicated and inferred resources as the basis for comple-

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MINING News

Iluka to partner with IFC in Sierra Leone

sands assets in Sierra Leone. The com- pany produces high-quality rutile and ilmenite from the world’s largest natu- ral rutile deposit, located in the Bonthe and Moyamba districts of Southern Province. With an operating history span- ning more than 50 years, Sierra Rutile is one of Sierra Leone’s oldest and largest resource companies. 

ASX-listed Iluka Resources Limited (Iluka) and International Finance Corporation (IFC) have signed agreements to com- mence a strategic partnership in relation to Iluka’s Sierra Rutile operation. Under the terms agreed, IFC will subscribe to new shares equivalent to a 10 % stake in Sierra Rutile for US$60 million. IFC is a member of the World Bank Group. IFC will initially invest US$20 million for a 3,57 % stake, with a further investment of US$40 million to increase its stake to 10 % to occur if, or when, Iluka approves the con- struction of early works for the Sembehun project and upon completion and disclo- sure of the related Area 5 Environmental and Social Impact Assessment. The Sembehun deposits comprise more than 70 % of Sierra Rutile’s remaining ore reserves and development of Sembehun has the potential to extend the life of Sierra Rutile’s operations significantly. Iluka is an international mineral sands company with expertise in exploration,

development, mining, processing, market- ing and rehabilitation. The company has over 60 years’ experience in the mineral sands industry and is the largest producer of zircon and rutile globally. Sierra Rutile, a wholly owned subsid- iary of Iluka, operates world-class mineral

The Gangama processing plant, which forms part of the Sierra Rutile operation (photo: Iluka).

June 2019  MODERN MINING  9

MINING News

Hummingbird prepares updated LoM plan for Yanfolila early estimates from the LoM plan show a significant improvement on production levels and a lowering of the cost base of the mine. From 2023 the average annual production from reserves reduces to 80 000 oz per year.

In its final audited results for the period ended 31 December 2018, AIM-listed Hummingbird Resources – which owns and operates the Yanfolila gold mine in Mali – says that following the success- ful 2018 exploration drilling campaign, it is currently updating its reserve and resource statements which are due shortly. Additionally, the second ball mill currently being installed at Yanfolila is due for com- pletion in Q3-2019. Both of these factors have meant Hummingbird is currently updating its Life of Mine (LoM) plan. At present, this was last forecast as part of the DFS in 2016 and showed that Yanfolila would aver- age 107 000 oz of gold production per year. The current draft LoM plan, awaiting finalisation, indicates that in the upcom- ing three years (2020-2022), the company is able to achieve production of 130 000- 145 000 oz per year at a targeted AISC of US$800/oz. The company reports that the

mine successfully ramped up to full-scale production in Q1-2018, displaying both the operational efficiency of the mine and positive cash flows for the subsequent quarters,” he states. “Notwithstanding our successes during the period, the Group also faced opera- tional setbacks in Mali. Heavy rainfall, which led to potential pit wall instability issues, and a damaged public bridge on the only road to site certainly tested us. From the board to the operations team on the ground, we were all faced with a com- plex challenge. The fact that we recovered from this within such a short space of time is a real testament to the team’s hard work.” Betts notes that the 2018 exploration campaign has brought excellent drilling results across Yanfolila’s 2,2 Moz gold base and says the company is optimistic that it will allow it to increase cumulative gold production over the mine life. “Particularly strong results came from Gonka, a deposit located just 5 km from the process plant, where mineral-rich intercepts included 15 m at 16,03 g/t and 18 m at 9,39 g/t,” he says. “Such high- grade potential has made us even more confident in our long-term plans for the mine and the potential for underground developments. “What is more, the period saw the commencement of the construction of a second ball mill, which will increase plant throughput and align with these new dis- coveries. The second mill will boost plant capacity from 1,24 Mt/a to 1,4 Mt/a when processing a blend of ore, and from 1 Mt/a to 1,24 Mt/a when processing 100 % fresh ore. The circa US$13million capex project is expected to complete during Q3-2019 and will significantly enhance our throughput capacity with an estimated 24 % increase above original design.”  with the help of highly experienced external exploration consultants, have completed a detailed geophysical survey and exten- sive soil sampling programme which has yielded some excellent results indicating that we may have a number of high-poten- tial prospects within our Zamsort licence. “We have generated a large number of drilling targets from the data and geological models and beginning with Cheyeza, one of our highest-priority targets.” 

Hummingbird intends to announce the results of scoping studies on both the Gonka deposit and undergroundmining at Komana East (currently an operating open pit). The studies will, when converted to reserves following feasibility study com- pletion, augment the existing reserves to increase annual production and extend the mine life further. Based on current resources, over 1 Moz of gold sits outside of reserves. In his CEO’s statement accompanying the audited results, Dan Betts says that 2018 proved to be a period dominated by key milestones and operational chal- lenges. “After pouring first gold to plan on 19 December 2017, the Yanfolila gold

Installing the motor for Yanfolila’s second ball mill (photo: Hummingbird Resources).

Drilling starts on Arc Minerals' Copperbelt properties AIM-listed Arc Minerals has begun an initial 7 500-m drilling programme at its Zamsort/Zaco copper projects located in the Zambian Copperbelt, adjacent to world- class operating copper mines.

programme is designed to test the large Cheyeza anomaly as well as the Lumbeta and Muswema targets in addition to other tar- gets generated through the comprehensive geophysical and soil sampling programme. “We are very excited about this drill- ing programme,” says Nick von Schirnding, Executive Chairman of Arc Minerals. “Over the past year, our technical team,

Arc Minerals has appointed a local drill- ing contractor with significant experience in the Copperbelt and two diamond drill rigs have commenced drilling. The drilling

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MINING News

Lucapa continues the hunt for source of Lulo alluvials diamonds, including Angola’s two biggest recorded diamonds weighing 404 carats and 227 carats.

including anomalies highlighted in the technical review demonstrating reversely polarised magnetic signatures, will be undertaken. The new kimberlite exploration pro- gramme will be completed over the next 12 months at a budgeted cost of US$3,3 million. As in the past, Lucapa will fund the exploration costs from a portion of its returns from Lulo alluvial mining company Sociedade Mineira Do Lulo. Exploration thereafter will be results-driven. “The next phase of the kimberlite programme builds on the great body of exploration work completed over many years at Lulo to pinpoint the source pipes hosting the world’s best alluvial diamonds,” comments Lucapa Managing Director Stephen Wetherall. “Like the diamond experts involved in our recent technical review, we remain convinced that the kim- berlite source of these diamonds awaits discovery beneath our prolific alluvial diamond field.” 

ASX-listed Lucapa Diamond Company and its partners, Empresa Nacional de Diamantes EP and Rosas & Petalas, have announced the launch of the next explora- tion phase to locate the kimberlite source of the high-value alluvial diamonds at the Lulo project in Angola. The next 12-month programme is based on an extensive technical review of Lulo kimberlite exploration results to date, including those of the extensive 2018 drill- ing programme which confirmed a further 70 kimberlites within the Lulo alluvial diamond field, which increased the total known kimberlites within the concession to more than 100. The technical review included input from some of the world’s leading indepen- dent diamond consultants. Lulo is the world’s highest-value alluvial diamond field, producing diamond sales of US$146 million to date at an average price per carat of greater than US$2 000. Lulo has produced 13 plus 100-carat alluvial

The next kimberlite phase builds on all the previous drilling, sampling and explo- ration work completed by Lucapa and its Lulo partners to narrow down the hard- rock diamond source or sources of the exceptional Lulo alluvial diamonds. It will include an extensive stream bulk sampling programme focusing on six major tributaries feeding from high-inter- est areas into the Cacuilo River upstream of Mining Blocks 8 and 6, where some of the largest and most valuable alluvial dia- monds have been recovered at Lulo. It will also involve follow-up delinea- tion drilling of 16 Lulo kimberlite pipes rated most prospective to host diamonds. This drilling will help define the structure and surface area of each pipe, including surface volcaniclastic kimberlite material for later bulk sampling. In addition, drill- ing of eight additional kimberlite targets,

June 2019  MODERN MINING  11

MINING News

Pan African’s gold production on the increase

be funded from existing Group facilities. “The Group’s performance over the past nine months reflects our efforts to maintain Pan African’s position as a safe, low-cost and long-life gold producer,” comments Pan African’s CEO, Cobus Loots. “Safe, highly profitable and sustainable ounces at Elikhulu have replaced those of Evander’s loss-making underground oper- ations. We continue to optimise Elikhulu, which delivered a throughput of 1,3 mil- lion tonnes in March 2019, 100 000 tonnes above the nameplate capacity. The focus is now on maximising sustainable margins from this world-class operation. “We have commenced the develop- ment and equipping of Evander Mines’ 8 Shaft Pillar (‘Evander Pillar operation’), with first gold expected in August 2019. The Evander 8 Shaft Pillar is expected to contribute an additional 20 000 oz to 30 000 oz per annum for three years, at all- in sustaining costs (AISC) of approximately US$900 per ounce, therefore making a meaningful contribution to the Group’s near-termproduction and profitability. The operation will be mined by a specialised and experienced independent contractor given the nature of pillar mining.  “We have completed extensive feasibil- ity work on Barberton Mines’ Royal Sheba project,” he continues. “Due to the Group’s disciplined capital allocation criteria and the capital cost estimates to develop this mine, the company will not pursue the Royal Sheba project on a stand-alone basis. The existing Barberton Mines’ processing plant infrastructure can be upgraded to process ore from this orebody. The benefits of this approach are the ability to expedite the environmental licensing process, shorten the timeline to production, enhance returns from mining this orebody and negate the requirement for external capital funding. We look forward to updating the market on this project in the months ahead. “We are confident the Group remains on track to meet its gold production guid- ance of 170 000 oz for the full financial year to end 30 June 2019. With Elikhulu produc- ing at a steady state for a full year and the incremental contribution from Evander’s Pillar operation, we expect to produce approximately 185 000 oz of gold for the 2020 financial year, which is a sizeable increase in our gold production profile.” 

A robust performance from Barberton Mines contributed to Pan African’s increased gold production (photo: Pan African Resources).

Pan African has provided an opera- tional update for the nine months ended 31 March 2019, as well as detail on its progress with internal growth projects and initial production guidance for the 2020 financial year. Gold production from the Group’s con- tinuing mining operations increased by 51,4 % to 123 771 oz (2018: 81 729 oz), with robust performances from Barberton Mines’ underground operations and the Group’s tailings retreatment plants. The feasibility study into the merits of mining the Evander 8 Shaft Pillar and high-grade areas in proximity to the pillar has been completed and the Pan African board of directors has approved the

development of the project. The Evander 8 Shaft Pillar will replace the current remnant underground mining and vamping production and is expected to contribute, on average, 30 000 oz per annum over the next three financial years, with approximately 20 000 oz of produc- tion forecast for FY2020. The existing Kinross processing plant and Evander’s 7 Shaft infrastructure will be used to treat and hoist the mined ore from the Evander 8 Shaft Pillar. Capital expenditure of approximately R70 million is to be incurred over the life of the project, of which R40 million is to be incurred upfront. All capital for the Evander 8 Shaft Pillar’s development will development plan to increase production and I look forward to providing further updates as we progress.” According to BlueRock, the Kareevlei mine ranks as one of the top 10 highest value per carat diamond mines in the world. The Kareevlei licence area covers 3 000 ha and hosts five known diamondiferous kim- berlite pipes. As at November 2018, it was estimated that the remaining inferredmineral resource from four of the kimberlite pipes (KV1, KV2, KV3 and KV5) represents a total of 367 000 in-ground carats. 

Kareevlei produces its largest diamond to date BlueRock Diamonds, the AIM-listed dia- mond mining company which owns and operates the Kareevlei diamond mine in the Kimberley region of South Africa, has recovered its largest diamond to date, a 24,98-carat gem quality stone. The larg- est diamond prior to this was 16,28 carats, which sold for US$78 947.

Mike Houston, Executive Chairman, commented: “This record recovery of such a high-quality diamond is an excit- ing milestone and underpins why we are so confident about the potential of the Kareevlei mine. We have a comprehensive

12  MODERN MINING  June 2019

MINING News

Botswana Diamonds (BOD) has announced that Vutomi (in which it has a 40 % interest) has received permission to sell diamonds recovered during bulk sampling at its Thorny River project, located to the east of Mokopane in Limpopo Province. The sale of diamonds from bulk sampling will enable funding of further development by Vutomi. Trenching by Botswana Diamonds has identified a ‘hotspot’ at Thorny River with a thick kimberlite intersection of 4 m wide, suggesting a ‘kimberlite blow’. Some 256 carats of rough diamonds have already been recovered (to 10 June) from the re- commissioning of the processing plant. The bulk sampling programme will generate short-term cash flow, whilst building the mineral resource. SouthernEra Diamonds, has included its coarse tailings dumps gen- erated from the mining of the Marsfontein Thorny River bulk sampling delivers diamonds and Klipspringer diamond mines in the same revenue-sharing agreement. The Thorny River bulk sampling project is a joint venture between SouthernEra, providing the processing (40 %), Palaeo (40 %), the mining contractor, and Vutomi (20 %), providing the ground. BOD has also announced that Vutomi’s application for a Section 27 Mining Permit over a portion of the Marsfontein farm has been accepted by the authori- ties. Marsfontein is contiguous to, and an extension of, the Thorny River project. This portion of the farm is host to the rich M8 kimberlite dyke, bordering the Marsfontein diamond mine, in-situ gravels and dumps. Marsfontein was mined between 1998 and 2000 by a De Beers/SouthernEra joint venture with its production over its short life being a phenomenal 1,9 million carats.

Diamonds recovered at Thorny River from the re-commissioning of the processing plant (photo: Botswana Diamonds). The payback time on the capital invested in the operation was a mere three-and- half days. 

Trenching activity at Thorny River (photo: Botswana Diamonds).

June 2019  MODERN MINING  13

MINING News

Construction of Kakula copper mine now in full swing

is expected to be published early next year. “With the initial mine development of Kakula soon to be fully financed, we now are focused on rapidly advancing the con- struction of surface infrastructure and the processing plant to match the accelerating pace of development of the underground mine workings and to transform Kakula into one of the world’s greatest copper mines. The shallow, thick, high-grade nature of the orebody will allow us to ramp up production quickly,” comments Robert Friedland, Co-Chairman of Ivanhoe. “The significant progress to date has been the result of the collaborative efforts of many international and DRC-based stakeholders. Now that development is well underway and we have a clear line of sight to the first copper production, it is our goal to take as many top-tier interna- tional, institutional mining investors to the mine site so that they can see first-hand the scope and quality of development work being performed by the Kamoa- Kakula team, many of whom are from the communities surrounding the project. “These investors also will get to see the drill core from the new Kamoa North Bonanza Zone – with multiple, thick inter- cepts that run greater than 15 % copper – and gain an in-depth appreciation as to why we are so excited about the potential of this extraordinary discovery.” Approximately 2 500 employees and contractors are now working at Kamoa- Kakula as Ivanhoe and its partners advance the project. Congolese nationals comprise more than 90 % of the current workforce. A total of 647 m of underground development was completed in May, approximately 100 m more than achieved in April. Lower-grade development ore is being stockpiled on surface near the site of the concentrator plant. This ore will be used for plant commissioning. Mine access drives 1 and 2 (interconnected, parallel tunnels that will provide access to ore zones) are approximately 200 m from Kakula’s initial high-grade mining area, and these priority drives are expected to intersect the higher grade ore in late July or early August this year. The Kakula mine access is via twin declines on the northern side (which have been completed) and a single decline on the south side of the deposit (under devel-

TSX-listed Ivanhoe Mines reports that excellent progress is being made in the construction of the Kakula copper mine – the stage one, 6 Mt/a operation – on the tier-one Kamoa-Kakula project near Kolwezi in the DRC. On April 25, 2019, Ivanhoe announced that China-based CITIC Metal had agreed to invest an additional C$612 million (US$459 million) in Ivanhoe by way of a private placement. Since that announce- ment, the pace of underground mine development has accelerated and the first access drives are approaching Kakula’s ini-

tial high-grade ore. In addition, Ivanhoe and its joint-venture partner, Zijin Mining, have commenced earthworks for the sur- face processing plant and have issued tenders for the long-lead mining and processing equipment. Initial copper con- centrate production from the Kakula mine is currently scheduled for the third quarter of 2021. The initial, five-year, detailed mine design has now been finalised and pro- duction scheduling is in progress. The full, detailedmine design will be included in the independent definitive feasibility study that

Large-capacity, semi-autonomous mining equipment in operation underground at the Kakula mine (photo: Ivanhoe Mines).

Altus Strategies acquires VMS target in Ethiopia Africa-focused project and royalty gen- erator Altus Strategies, listed on London’s AIM and the TSX-V, has announced that its 100 %-owned Ethiopian-focused subsid- iary, Altau Resources, has been granted the 285 km 2 Zager exploration licence, targeting volcanogenicmassive sulphide (VMS) hosted copper and gold deposits in the Tigray National Regional State of northern Ethiopia. Steven Poulton, Chief Executive of Altus, commented: “The grant of Zager increases our strategic exploration holdings across the highly prospective Arabian Nubian Shield of northern Ethiopia to over 877 km 2 . The company selected the licence based on our in-house remote sensing study, which included an extensive review of historical geological data. These highlighted Zager’s geological prospectivity and identified

numerous artisanal alluvial gold workings. “Zager is underlain by an almost identical geological terrane to that of the company’s Daro project, located 80 km to the east and where the company has rapidly discovered a number of encouraging copper and gold targets. The geology of this region hosts the Bisha mine, owned by Zinjin Mining, and the Asmara project, owned by Sichuan Road & Bridge Mining Investment Development Corp in Eritrea, approximately 135 km north and north-east of Zager respectively. Zager is also just 10 km north-west of the Harvest VMS project, which is being advanced by TSX-V-listed East Africa Metals Inc. “Our field team will commence recon- naissance exploration shortly and we look forward to updating shareholders on results in due course.” 

14  MODERN MINING  June 2019

MINING News

The first two high-capacity ventilation fans installed at Kakula’s northern declines (photo: Ivanhoe Mines). opment). One of the northern declines will be themine’s primary access way, while the other will be for the ore conveyor haulage system. The southern ventilation decline will serve as a secondary access and will facilitate the acceleration of critical, early mine development. primary accesses to the production areas. These drifts will also be used as the primary intake and exhaust ventilation circuits and will connect with the intake and exhaust ventilation shafts. Underground access to the first raise bore ventilation shaft has been reached. The pilot hole for the 177-m raise bore has been completed and ream- ing of the 5,5-m diameter ventilation shaft is expected to be completed in July. The primary ore handling system will From the bottom of the northern and southern declines, a pair of perimeter drifts will be driven to the east and west extremi- ties of the deposit and will serve as the

include perimeter conveyor drifts and load-out points along the north side of the deposit. The perimeter conveyor drifts will terminate at the main conveyor decline. Connection drifts between the north and south perimeter drifts will pro- vide access and ventilation to the planned mining areas. Approximately 99 % of the deposit will be mined using the drift-and- fill method, which was chosen to maximise the overall extraction of Kakula ore. 

June 2019  MODERN MINING  15