Modern Mining Marchh 2017

March 2017 Vol 13 No 3 www.crown.co.za M ODERN MINING IN THIS ISSUE…

 Scoping Study on Rietfontein completed  Hummingbird sets a fast pace at Yanfolila  Diamond miner on a growth path  New contracts boost Aveng Mining  Mining fund to back junior miners

AFRICA’S LEADER In MInInG AnD MInERALS PROCESSInG

StuDIES

WInDER SyStEMS

COntRACt OPERAtIOnS

InfRAStRuCtuRE

MInE DESIGn

MInERALS PROCESSInG

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MODERN M I N I N G

CONTENTS

MARCH 2017

ARTICLES

REGULARS MINING NEWS 4 Stonewall completes Scoping Study on Rietfontein 5 Teranga wins PDAC award for responsible mining 6 New Clydesdale Colliery delivers first coal to Eskom 7 DRA launches two-year graduate programme 8 Further step forward for planned Khoemacau mine 9 SRK rated as a ‘top five’consulting firm 10 New Life of Mine Plan for Ghana’s Edikan gold mine 11 MOD discovers new copper zone below T3 resource 12 Joint Venture to develop cobalt/copper projects in DRC 14 Standout performance by Booysendal 15 Mustang makes“spectacular”graphite discovery at Caula PRODUCT NEWS 44 Hoists gaining traction for vertical movement on sites 45 MSA Africa introduces integrated harness system 46 Osborn provides“unique”solution for opencast operation 47 Metso introduces“revolutionary”cone crusher 49 Maptek delivers smaller, lighter laser scanners 50 BME employs drones to plan and monitor blasts 51 Skyriders displays its skills on Eskom contract 52 CDE launches wash plant and screens at CONEXPO 52 BBE Group establishes automation division COVER 16 Pairing iron and data GOLD 20 Yanfolila a hive of activity DIAMONDS 24 Lucapa on a growth path 30 Mines in water-scarce areas turn to dewatering screens 33 Kareevlei crushing/screening circuit fully operational FEATURE – MINING CONTRACTING 34 New contracts give a shot in the arm to Aveng Mining 40 New fund backs junior miners 43 Largest raiseborer in the world deployed in Zambia

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

Darryl James Circulation Karen Smith 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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Average circulation (October–December 2016) 4258

March 2017  MODERN MINING  1

COMMENT

Ivory Coast and Botswana shine in latest Fraser Institute survey

I nteresting to see that Ivory Coast has emerged as the top mining destination in Africa in the Fraser Institute’s Annual Sur- vey of Mining Companies 2016 in terms of its ‘Investment Attractiveness’. It is fol- lowed by Botswana, Ghana, the DRC, Zambia and Eritrea. Regrettably, South Africa comes in at a lowly 13th in the African rankings, slipping by two places since the previous survey in 2015 and barely beating South Sudan. In the Fraser Institute’s own words, the survey “is an attempt to assess how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment.” An overall Investment Attractiveness Index is constructed by combin- ing a Best Practices Mineral Potential Index, which rates regions based on their geologic attractiveness, and a Policy Perception Index (PPI), which is a composite index that measures the effects of government policy on attitudes towards exploration investment. The latest report is based on 350 responses and rates 104 mining jurisdictions around the world, including 18 in Africa. The survey identifies the Canadian prov- ince of Saskatchewan as the top jurisdiction in the world for mining investment (it has moved up one notch since 2015) with another Canadian province, Alberta, coming in sec- ond and Western Australia third. Rounding out the top ten are Nevada, Finland, Quebec, Arizona, Sweden, the Republic of Ireland and Queensland. While Ivory Coast may be the top coun- try in Africa, a glance at the full Investment Attractiveness Index shows that it is only rated at no 17 in the world. Still, this is a very cred- itable showing. South Africa, by contrast, is way down the index in seventy-fourth place – a drop of eight places since 2015. The scale of South Africa’s fall from favour as a mining destination becomes apparent if one considers that in 2002 the country was ranked 13th in the world (although far fewer jurisdictions were included in the survey back then). Which are the worst mining jurisdictions in Africa? Not surprisingly, Zimbabwe is ranked stone last on the continent and is also in the bottom ten measured globally, along with Mozambique. For those wondering which is the very worst mining jurisdiction in the world, it is apparently the Argentinian prov- ince of Jujuy, which – I must confess – I’ve never heard of before. Commenting on Africa’s showing in the lat- est survey, the authors say that Africa’s median

score on policy factors (the Policy Perception Index) has improved. “This was also the case for the region’s median investment attractive- ness score,” they continue. “Africa’s overall attractiveness now ranks it ahead of the regions of Oceania, Latin America and the Caribbean, Asia and Argentina.” Four African countries – the DRC, Ghana, Ivory Coast and Zambia – experienced improve- ments of over 10 points on their PPI scores, with the DRC exhibiting the largest improvement in Africa based on miners’ perceptions of policy. Like South Africa, Namibia – which at one stage was a front-runner in Africa – is slipping in the rankings. Says the survey: “Namibia’s score and rank deteriorated for the second straight year. In 2014, Namibia was ranked as the 19th most attractive jurisdiction in the world when only policies were considered. The country fell to 29th in 2015 and dropped again to rank 38th this year. After this year’s decline, Namibia no longer ranks as the second most attractive juris- diction in Africa based on policy.” One of the survey’s respondents, incidentally, makes the following comment on Namibia: “A draft policy of local ‘previously disadvantaged’ persons is being circulated. It models itself after South Africa which has clearly failed in its broad-based objectives. There is great danger to all existing or new companies in Namibia.” Of course, the question of how seriously one should take the Fraser Institute’s findings always crops up each year when the latest sur- vey is published and there are those who believe that its ratings should be taken with a pinch of salt. Certainly, one can point to some anomalies and I notice, for example, that Morocco, which was the top ranking country in Africa in 2015 (based on the Investment Attractiveness Index) does not even appear in this year’s survey. One also has to ask whether it can really be true that countries such as the DRC, Ethiopia and Eritrea are better mining investment des- tinations than South Africa, a country with a modern infrastructure, a world-class banking system and a depth of mining expertise prob- ably unequalled in the world. Nevertheless, the survey is extremely influ- ential and one can only hope that our Minister of Mineral Resources and his top civil servants will study it closely and be galvanised into action. South Africa should be rated as the top mining country in Africa. The fact that it is not is inexcusable and a sad reflection on the policies – at least in respect of mining – of our present government. Arthur Tassell

“Africa’s overall attractiveness now ranks it ahead of the regions of Oceania, Latin America and the Caribbean, Asia and Argentina.”

March 2017  MODERN MINING  3

MINING News

The TGME processing plant, which is located 41 km from Rietfontein (photo: Stonewall). Stonewall completes Scoping Study on Rietfontein

ity gold recovery given the past records indicating a 30 % free gold recovery over simple corduroy cloth tables. It is expected that modern gravity gold recovery meth- ods will significantly improve the free gold recovery. Carbon will be processed through an elution plant for the recovery of gold. The processing plant was operated as recently as late 2014, early 2015 during the trial mining of the Pre Mined Residue (PMR) from the Beta mine. This processing included the screening of the material fol- lowed by milling, CIL and elution for the recovery of gold. Rietfontein is fully permitted for min- ing. The mining permit is valid until 2028 with options to extend and allows for the construction of the surface infrastructure; rehabilitation of the adits; access to the underground workings; disposal of waste rock on the surface and mining of ore. The project also has aWater Use Licence which is valid for the duration of the project. “Stonewall is focused on bringing the Rietfontein project in South Africa into production in 2018,” comments Managing Director Rob Thomson. “This fully permit- ted, high grade project should deliver robust cash flow to Stonewall and, impor- tantly, underpin the company’s growth strategy to produce 100 000 plus ounces per annum over the medium term and to be a low cost gold producer in South Africa. Central to this development strat- egy is refurbishing and upgrading of the existing TGME processing plant at Pilgrims Rest which last operated in 2015 when suc- cessful trial mining and processing of the PMR occurred.” 

ASX-listed Stonewall Resources has announced the Scoping Study results for its fully permitted Rietfontein high- grade, hard-rock development. The study was delivered by South African mining engineering consultants Bara Consulting following geological and mineral resource assessments by South African geological consultants Minxcon, conducted in accor- dance with the JORC (2012) Reporting Code. Located in the southern part of Stonewall’s gold holdings in the histori- cal gold mining area of Pilgrims Rest in Mpumalanga, Rietfontein contains a JORC resource of 2,55 Mt at 11 g/t for 905 koz (indicated and inferred). It is located imme- diately to the south of the main tar road between Sabie and Hazyview and 3,3 km west of the town of Sabie. Underground access to the Rietfontein mine is possible through a number of existing adits. Rietfontein is the first Scoping Study to be reported of the three areas of poten- tial mine development currently under scoping-level investigation by Minxcon and Bara. The results of the Rietfontein study suggest a base-case pre-tax NPV of US$114 million and a C1 cost of US$417/ oz are achievable and – says Stonewall – provide strong encouragement for the company to commit to the next stage of its Rietfontein resource upgrade, explora- tion and development programme, as well as to commence the Preliminary Feasibility Study (PFS) phase, including the declara- tion of ore reserves. Stonewall is now engaging with

development, mining and construction orientated contractors, as well as potential financiers, to establish the pre-feasibility basis for Rietfontein’s mining and process- ing operations and the financing required. The Scoping Study envisages that primary access to the Rietfontein under- ground mine will be via the existing adit on 3 Level (1 015 mamsl), which is in good condition. The adit and haulage will be enlarged from its current size of approximately 2,8 m wide by 2,8 m high to at least 3,2 m by 3,2 m. This will allow the use of rubber-tyred articulated dump trucks (ADTs) underground. Ore would be extracted by shrinkage stoping and load- ing and hauling will be done by load haul dumpers (LHDs) and rubber-tyred trucks. The ore above 3 Level will report to 3 Level via ore passes for haulage to surface. Ore from below 3 Level will be trucked from the face to surface (3 Level). Run of mine ore will be trucked 41 km to Stonewall’s existingTGME plant. The pre- liminary production schedule contemplates mining of 200 kt/a (to deliver 60 000 oz/a of gold) over a period of nine years. To treat the ore, the TGME plant will be refurbished and upgraded. Material will be crushed, milled and floated to produce a high grade concentrate. The concentrate will be partially oxidised through the intro- duction of oxygen in a high shear mixing environment. The concentrates will then be leached through a high grade CIL plant for the recovery of gold. Flotation tails will be processed through a separate CIL plant for the recovery of gold. Significant effort will be put into grav-

4  MODERN MINING  March 2017

MINING News

Teranga wins PDAC award for responsible mining

Teranga Gold Corporation, listed on the TSX and ASX, has received the 2017 Environmental & Social Responsibility Award at the Prospectors & Developers Association of Canada (PDAC) Awards Gala in Toronto. The award recognises Teranga’s leadership and commitment to making lasting contributions to the communities surrounding its Sabodala gold mine in Senegal, West Africa. “We believe that our success is tied to the achievement of the goals of our host communities and our reputation as a responsible partner in sustainable resource development,” said Richard Young, President and CEO of Teranga. “On behalf of our directors, employees, inves- tors, and the local communities in which we operate, we are proud to accept this recognition of our commitment to respon- sible mining and building a strong social licence in West Africa.” Since 2009, Teranga has worked with government and nearby communities to establish initiatives that contribute to the environment and region for the long term. They include investing a minimum of $1,2 million annually in a community social fund to advance sustainable community development projects, supporting small businesses through local procurement, and delivering more than 40 training programmes to develop employee skills, literacy and numeracy. “The Government of Senegal has a very good relationship with Teranga based on a win-win approach and shared support of the mining industry. Teranga under- stands that they need to not only invest for their shareholders, but also invest in the agriculture, education and training for the local communities,” said Ousmane Cisse, Director of Mines and Geology, Government of Senegal. “Teranga is the

Seen at the PDAC Awards Gala reception on 7 March 2017 are (left to right): Richard Young, President and CEO of Teranga, Ousmane Cisse, Director of Mines & Geology, Government of Senegal, Alan Hill, Chairman of Teranga’s board, and Aziz Sy, General Manager, Sabodala Gold Operations.

flagship company in the gold sector, and the PDAC award shows to all companies mining in Senegal that responsible mining is the way forward.” Teranga’s Sabodala mine is the only gold mine and mill in Senegal. Located approximately 650 km south-east of Dakar, it has been in operation since 2009 and in 2016 produced approximately 216 000 ounces of gold. The company also holds

the Banfora gold project in Burkina Faso, which it acquired as part of its takeover of ASX-listed Gryphon Minerals in 2016. Gryphon had intended to develop Banfora utilising a 2 Mt heap leach pro- cessing facility. Teranga’s preferred development path, however, will be based on an optimised CIL flowsheet and the company is expecting to make a develop- ment decision in H2 2017.  month, all commencing in March 2017. Premier has also announced that an X-Ray Transmission (XRT) sorter has arrived on site at RHA and is currently being assem- bled and integrated. It forms part of an upgrade to the existing plant. George Roach, Chairman and CEO, com- mented:“The XRT sorter is an important part of the upgrades and improvements made to the plant and I am pleased to say that the installation is progressingwell and that we are on track for first production this quarter.” 

Shaft upgrades completed at tungsten mine Premier African Minerals, listed on AIM, says that shaft upgrades at its RHA tungsten mine in north-western Zimbabwe have been completed. In addition, the terms for the underground mining contract have now been finalised with mining contractor African Mining and Exploration (Afmine) to deliver up to 16 000 tons of tungsten ore per month to the plant.

At the same time, final terms have been agreed to deliver up to 24 000 tons of tungsten ore from open-pit operations per

March 2017  MODERN MINING  5

MINING News

ASX-listed Universal Coal has reported that its New Clydesdale Colliery (NCC), located approximately 34 km south of eMalahleni in Mpumalanga Province, has supplied its first coal to Eskom. NCC is one of the oldest coal mines in New Clydesdale Colliery delivers first coal to Eskom South Africa, having been in production sporadically since 1949. It was acquired by Universal from Exxaro Resources in 2015 when it was on a care and maintenance basis. Universal returned the colliery to operations in September 2016. The recent

delivery of coal to Eskom is the first such delivery in the mine’s long history. In addition to the first coal sales to Eskom, Universal continues to produce and sell export quality coal under the off- take agreement already entered into and

The first overburden blast at New Clydesdale (photo: Universal Coal).

Positive results from Akwasiso drilling campaign Asanko Gold Inc, listed on the TSX and NYSE MKT, has reported positive initial results from the Akwasiso drilling campaign, which is currently underway targeting an upgrade of 3,85 Mt of inferred resources containing 193 000 ounces of gold to an indicated classification.

to the indicated classification,” comments Peter Breese, Asanko Gold’s President and CEO. “These near-surface, incremental oxide ores are cheap to mine and pro- cess and will form part of the 2018 mine plan, along with Nkran and Dynamite Hill, to supply 5 Mt/a of ore to the processing plant once the plant upgrades have been completed. The plant upgrades, which will be funded from internal cash resources, are currently tracking well ahead of schedule and we expect hot commissioning to com- mence early in Q4 2017. “Since we received the more conserva- tive resource model for Nkran, which we published in February 2017, Asanko has now embarked on a pit optimisation process to establish the optimal NPV for all eleven pits making up the Asanko Gold Mine min- eral reserve base. This optimisation will be included in the new feasibility study that is due for publication in Q2 2017.” 

increase gold production in 2018 as well as lower the all-in sustaining cost (AISC). Mining of the Akwasiso deposit is expected to commence during 2018 to augment mill feed fromboth the Nkran and Dynamite Hill pits, providing mining flex- ibility in anticipation of the commissioning of the Esaase pit and overland conveyor in H2 2018. The Akwasiso ounces are expected to have a lower cost profile than the current Nkran operations, thereby contributing to lowering AISC in 2018. The Akwasiso deposit is on an existing mining permit and only requires a supple- mentary permit application, which is well advanced. Asanko anticipates receiving full permits for Akwasiso in H2 2017. “The results received so far from the Akwasiso infill drilling programme support a significant upgrade of inferred resources

Akwasiso is a large scale satellite deposit located 5 km north-east of the process- ing facility at Asanko Gold Mine in Ghana, which is in the process of being upgraded to increase throughputs from 3,6 Mt/a to 5 Mt/a. The project’s capital costs, including the opening up of the Esaase deposit and the installation of the overland conveyor belt over the next two years, are fully funded from existing cash resources and cash gen- erated from operations over this period. Project 5 Million is expected to further

6  MODERN MINING  March 2017

MINING News

previously announced in 2016. The underground operation is pro- gressing well, with the two underground sections delivering 67 kt for the month of February. A third underground section is due to start production this month (March). The underground mine delivers pri- marily 6 000 kcal thermal coal from the Diepspruit shaft and is set to achieve nameplate tonnage rates of 900 000 t/a by the end of June this year. Universal is also in the process of start- ing opencast operations at NCC – at the Roodekop pit – with targeted production being 2,4 Mt/a ROM of premium quality domestic thermal coal and low phos met- allurgical coal. Steady state is expected to be achieved in mid-2017. The boxcut development, which com- menced in January this year, remains on schedule and the first overburden blast took place recently. Says Universal: “With first ROM coal scheduled by the end of March 2017, opencast coal will be pro- cessed in April as per schedule, ensuring contractual coal sales will be exceeded rather than met.” According to Universal, reconstruc- tion of the third DMS module of the Coal Handling and Preparation Plant (CHPP) is progressing well and is on schedule for commissioning shortly, in line with first production from the opencast operation. The HMS module will increase the total operational capacity, enabling NCC to reach the targeted steady state beneficia- tion capacity of 3,3 Mt/a. 

DRA launches two-year graduate programme In order to further the number of quali- fied graduates with practical experience in the industry, global engineering firm DRA is launching a two-year graduate programme that will see it taking on eight graduates across several disciplines in the next year.

neering Council of South Africa (ECSA) has a five-year practical experience requirement, students can use the two-year graduate programme towards their five-year ECSA requirement. Since DRA is a global engineering firm, the graduates also have the opportunity to learn from engineers across the world dur- ing their two-year experience at the DRA Johannesburg office. “There is a skills shortage in the broad engineering sector and DRA saw an oppor- tunity to contribute towards developing talent within the industry,”Dercksen says. The skills shortage is not limited to South Africa. According to Manpower Group’s annual talent shortage survey for 2016, engineers are ranked fourth out of the top ten difficult positions to fill due to lack of skills. The survey goes on to say that the four top reasons why it is hard to fill positions include: a lack of applicants – 64 %; a lack of hard skills or technical competencies – 19 %; a lack of experience – 19 %; and a lack of soft skills (workplace experience) – 11 %. Dercksen says the DRA programme can help alleviate this. “During the programme, the students will be exposed to all elements of the work we do, going through a rota- tional programme. There will be ongoing evaluation of their performance as they work their way through the different engi- neering disciplines and also learn about cost control, budget management, quality control and the ins and outs of site work,” she says. 

Louise Dercksen, Group Human Resources Manager at DRA, says the group will hire graduates from each engineering discipline – mechanical, electrical, process and civil. “We have approached the uni- versities, as well as a graduate recruitment agency, and the two-year programme will start this year and finish in 2019,” she says. Participating students had to send through a short CV, and their latest study results. They also had to go through an interview process and complete a psycho- metric test. “We didn’t look solely at academic results. We’re looking for candidates who are keen to innovate, possess people skills and show potential in business acumen. All-round stu- dents who can add value to our company and the industry,”Dercksen says. Phillip DeWeerdt and Antonio Da Gama Texeira, two project engineers at DRA who recently completed their MBA studies, will be functioning as Project Sponsors for the two-year programme and will ensure its success. The graduates will also be appointed discipline-specific mentors to ensure their development in all required proficiencies of the programme. Dercksen says that while the Engi­

March 2017  MODERN MINING  7

MINING News

Further step forward for planned Khoemacau mine

US-based Cupric Canyon Capital (Cupric) has announced that its wholly owned subsidiary, Khoemacau Copper Mining (KCM), has entered into a US$50 million, term loan facility agreement with Red Kite Mine Finance to provide funding for KCM’s Khoemacau copper-silver project in Botswana. KCM will construct an underground mine at its high-grade Zone 5 deposit. The Zone 5 resource contains 100 Mt of ore grading 2 % copper and 20 g/t silver. The Zone 5 undergroundmine will be accessed with three declines and will utilise a highly- mechanised, low-cost, sub-level open stoping mining method. The mine will initially feed the nearby Boseto copper concentrator, which was acquired as part of Cupric’s purchase of Discovery Copper Botswana (DCB), announced in July 2015. The Boseto con- centrator will be upgraded from its current 3,0 Mt/a nameplate capacity to 3,6 Mt/a. Metal production from the Starter

power when KCM starts production in 2019. Dennis Bartlett, Cupric’s Chief Executive Officer, said: “Proceeds from the term loan will enable us to continue development work at Khoemacau as we prepare to begin full scale construction of the Starter Project in the second half of 2017. All design, engineering and permitting work is progressing well and on schedule, bol- stering our confidence that production will commence in 2019. “In addition, the most recent drilling results including the discovery of Zone 5 North andmineral resource updates for the deposits acquired last year are very excit- ing. We continue to believe that Zone 5, combined with the expansion potential offered by the other deposits within our licence areas, represents perhaps the most attractive new copper project in the world today, with the potential to ultimately achieve copper production in excess of 120 000 tonnes per annum.” 

Project will average 50 000 tonnes of cop- per and 1,4 million ounces of silver per annum. The Zone 5 mine is expected to have a minimum life of 25 years and aver- age C1 cash costs of around US$1,00 per pound. The total cost to develop KCM’s Starter Project is approximately US$350 million, with underground mine development being the largest single cost component. Efforts are underway to optimise both ore grade and capital expenditures. Within the next few months, the Botswana Environmental Ministry is expected to approve modifications to KCM’s environ- mental permits to facilitate processing Zone 5 ore at the upgraded Boseto plant. The Botswana Power Company is also progressing development of the high-tension power line that will provide commercial power to the north-west region of Botswana. This power-line proj- ect includes a spur line to Boseto and Zone 5, providing low-cost commercial

The Boseto concentrator is to be upgraded from its current 3,0 Mt/a nameplate capacity to 3,6 Mt/a (photo: Arthur Tassell).

Execution of mining right a milestone for Tjate Jubilee, the AIM-quoted and AltX-listed Mine-to-Metals specialist, has announced that Tjate Platinum Corporation Proprietary Limited (Tjate), has executed a mining right with the Department of Mineral Resources in respect of the project com- prising the Farms Dsjate 249 KT, Fernkloof 539KS and Quartzhill 542 KS, situated in the Magisterial District of Sekhukhune in Limpopo Province. Tjate (in which Jubilee is the biggest

milestone in the development of the project and is in line with the company’s Mine-to-Metals strategy. The mining right confirms the significant potential value the project offers to Tjate and contributes to the company’s resource portfolio. The timing of the mining right coincides with the continued global recovery supporting the anticipated improvement in the plati- num markets. The Tjate platinum project is one of the world’s largest undeveloped blocks of platinum and we look forward to unlocking its full potential.” 

shareholder) now has the right to mine and process all platinum group metals, chrome, nickel, copper, gold and certain associated metals and minerals from the project min- ing area, subject to its complying with the terms of the mining right and alignment to the requirements of the Mining Charter. Leon Coetzer, Chief Executive Officer of Jubilee, said: “We are pleased that the Tjate platinum project has received the mining right. The mining right is a major

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MINING News

SRK rated as a ‘top five’ consulting firm

SRK Consulting SA has been rated in the top five companies in South Africa’s consult- ing engineering (mining and infrastructure) segment in the recent Top 500 Companies Awards. The awards survey over 3 000 businesses and honour those who excel in their sectors in terms of best practice standards as well as in the implementation of strong social, empow- erment and development policies. Conducted by Topco Media and the University of Cape Town’s Development Policy Research Unit, the survey singles out the five top firms in each of 100 different economic segments; the top 500 companies currently have a collective turnover of R3,5 trillion. Being ranked so highly among peers was gratifying and humbling, said SRK Managing Director Vis Reddy. “We are certainly known as innovators and perfectionists in our efforts to create value for our clients’ businesses, and we work hard to stay at the cutting edge of what is an increas- ingly competitive and demanding field,” said Reddy. “It is also vital that business promotes equity and social transformation, so it is fit- ting that the awards recognise this in their adjudication.” The Top 500 Companies Awards consider employment profiles and diversity in man- agement and control, as well as commitment to corporate social investment, employment equity and skill development. As an indepen- dent network of consulting engineers and scientists, SRK is owned and managed by its staff and invests significantly in fostering Energizer Resources Inc, listed on the TSX, reports that a Detailed Engineering Study on its 100 %-owned Molo graphite project in Madagascar is expected to be completed by March 31, 2017. The decision to commence the study was based on the positive results of the Front End Engineering andDesign (FEED) study, which was completed this past November. Energiser has also announced that Johann de Bruin, former Managing Director of DRA Africa (DRA), has joined Energizer as a consul- tant. DRA prepared the Feasibility Study on the Molo project in 2015 with de Bruin acting at the time as the primary liaison between DRA and Energizer. De Bruin also served on Energizer’s board of directors from 2012 until

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Vis Reddy, MD of SRK Consulting SA.

2014, when he stepped down to focus on his increasing responsibilities at DRA as MD. His mandate will be to oversee all aspects regarding the operational readiness of the Molo project as the company prepares for the commencement of procurement for mine infrastructure. He will support Energizer’s Senior Vice-President of Operations, Robin Borley, and together they will ensure that the project, post-funding, meets all operational requirements during the implementation process. Borley was the former Director of Mining for DRA before joining Energizer full time in 2013 as both Senior Vice-President and Director, and is – among other things – an expert in project set-up.  talent in a culture of excellence. Reddy said the growing social, environ- mental, financial and legal pressures on industry have led SRK to broaden its expertise over the decades from its mining base into fields including: civil engineering and infra- structure; water and waste; environmental management, social impact and governance; and the energy sector, including renewables. The SRK approach is to integrate all aspects of project success to optimise opportunities and manage risk. 

Energizer advances the Molo project

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March 2017  MODERN MINING  9

MINING News

New Life of Mine Plan for Ghana’s Edikan gold mine

site costs including all direct production costs, royalties, waste stripping costs and sustaining capital expenditure (AISC) are estimated at US$875 per ounce in the five- year period from 1 July 2017 to 30 June 2022 and US$864 per ounce over the full remaining life of mine. The forecast sustaining capital costs (including the cost of site rehabilitation) which are included in the estimate of the AISC total US$34,5 million. The Edikan LOMP forecasts strong positive after tax cash flow totalling approx- imately US$403million, assuming a flat spot gold price of US$1 200 per ounce for the remaining mine life from 1 January 2017. Perseus says the LOMP should be con- sidered in conjunction with previously provided production and cost guidance for the June 2017 half year. With over 25 % of the half year elapsed, Perseus is on track to achieve in the middle of the production guidance range of 90 koz to 100 koz of gold and is currently positioned towards the middle of the cost guidance range of US$1 000 to US$1 220 per ounce. The updated LOMP for Edikan involves mining and processing of ore from six open pits based on optimisation, design and scheduling using a gold price of US$1 200 per ounce and input parameters based on Perseus’s operating experience including costs from recently contracted supply contracts. Edikan first produced gold in August 2011 and achieved commercial produc- tion on 1 January 2012. It is located on the Ashanti Gold Belt.  orders that will result in initial sales in the region of 5 000 to 8 000 tonnes per month, with the ability to increase production as appropriate. The company says that it is moving the project forward as quickly as possible to facilitate production to meet this demand. As Edenville announced in February 2017, a coal washing plant has been secured and is currently being prepared for ship- ment to Tanzania. Once the plant arrives on site, the estimated time for construction is six to eight weeks and commissioning will take place immediately following that. In the meantime, Edenville expects to have access to a local, smaller scale, crusher to process coal. 

Aerial view of the Fetish open pit, one of several pits at Edikan (photo: Perseus Mining).

Perseus Mining, listed on the ASX and TSX, has updated its Life of Mine Plan (LOMP) for its Edikan gold mine in Ghana, follow- ing a re-estimation of mineral resources and ore reserves. Independently estimated proved and probable ore reserves for Edikan total 56,5 Mt of ore, grading 1,14 g/t gold and containing 2 078 koz of gold as at 31 December 2016. Comparisons of the updated Edikan mineral resource models against ore delin- eated by grade control during the last three months of 2016 and in January 2017 indicate that the updated resource esti- mates on which the ore reserves are based are likely to be more reliable predictors of ore tonnes and grades than the resource models used previously, resulting in a closer correlation between forecasts and

actual gold production and improved reli- ability of the LOMP. Consistent with the revised ore reserve that contains 15 % more tonnes, an 8 % lower grade and 5 % more contained gold than previously estimated, the life of mine production profile is slightly flatter but extends for longer than the previous LOMP published in April 2016. The estimated remaining life of mine gold production of 1 388 koz is 96,6 % of the amount estimated for the correspond- ing period in the previous LOMP. Gold production averages 214 000 ounces/ annum over Edikan’s remaining 6,5 year mine life (from 1 July 2017) including pro- duction of approximately 240 000 oz/a for the next five years. The forecast weighted average all-in construction and operation of the wash plant including, importantly, the training of local Tanzanians. He is a degree quali- fied electrical engineer and has 12 years of experience in the construction and opera- tion of coal washing plants. Edenville also reports that Letters of intent (LOIs) and expressions of interest have been received from several parties who intend to purchase coal from the oper- ating mine on a long-term basis. It says that at present no assurances can be given that these LOIs and expressions of interest will result in formal sales contracts, although Edenville is conservatively planning for firm

Edenville Energy moves Rukwa towards production In an update on its Rukwa coal project in western Tanzania, AIM-listed Edenville Energy says it has appointed a consul- tant mining engineer, with over 20 years of experience in the resources industry, including 10 years in Africa, to oversee the mining development and efficient opera- tion of the project.

Work has subsequently begun on min- ing equipment selection, recruitment of operations personnel and planning of min- ing development. To complement the mining engineer, Edenville has also appointed a consultant coal processing engineer to oversee the

10  MODERN MINING  March 2017

MINING News

MOD discovers new copper zone below T3 resource The new zone extends over approxi- mately 72,6 m, from 250,0 m to 322,6 m down hole depth. Estimated true width may be >50 m based on an early interpre- tation of the geometry of the intersection. Bedding and vein measurements of drill core suggest the new zone dips steeply north (approximately 65 deg) but further drilling is required to confirm this. The new zone appears to be truncated up-dip by the shallow dipping (approxi- mately 30 deg) thrust at the base of the T3 resource.

and chalcocite mineralisation below the resource. MOD’s Managing Director, Julian Hanna, said the first assay results from this previously unknown zone were simply out- standing. “This new intersection exceeds the width and grade of the overlying T3 resource which is several times wider than most copper deposits in the Kalahari Copperbelt. While we haven’t yet reached the limits of understanding the potential at T3, it is clear we need to rethink ways to upscale the PFS production targets and ramp up exploration to a new level.” He added that MOD had agreed with Metal Tiger to accelerate resource drilling of the new zone intersected in MO-G-65D and in adjacent drill holes. “If a substantial resource upgrade results from this drill- ing, it will be incorporated into the T3 PFS which is in progress,”he said.“Four drill rigs are now on site and MOD is well funded for the current programme with approxi- mately $5 million in the bank.” 

MOD Resources, listed on the ASX, has announced that assay results have con- firmed the discovery of significant widths and grades of copper and silver miner- alisation below the current resource at its T3 deposit in Botswana. The intersection comes one year after the discovery of T3. T3 forms part of a joint venture with AIM-listed Metal Tiger (30 %) relating to an extensive holding of licences in the central and western parts of the Kalahari Copperbelt in Botswana. The new zone intersected by MO-G‑65D comprises multiple intervals of dissemi- nated, laminated, cleavage and vein hosted copper sulphides including bornite, chalcocite, covellite and chalcopyrite. The dominant host lithology is green/grey silt- stone, overlying pink and grey sandstone. Some 72 m at 1,5 % Cu and 27 g/t Ag was intersected in MO-G-65D from 250 m down hole depth and includes a high grade intersection of 18 m at 2,7 % Cu and 52 g/t Ag from 280 m.

The intersection in MO-G-65D extends the T3 mineralisation >100 m below the maiden resource announced by MOD in September 2016 and remains open at depth and along strike. It is also approximately central below the planned pit design used in the T3 scoping study. In addition to MO-G65D, holes MO-G-60D, MO-G-63D, MO-G-64D, and MO-G-66D also intersected varying widths of disseminated and vein bornite

March 2017  MODERN MINING  11

MINING News

Joint Venture to develop copper/cobalt projects in DRC

ASX-listed Cape Lambert Resources has entered into a binding Heads of Agreement with Congolese company, Paragon Mining SARL, to form a 50/50 Joint Venture (JV) to develop the Kipushi cobalt tailings project and the Kasombo copper-cobalt project and operate the Kipushi processing plant in the DRC. The projects are located approximately 25 km from Lubumbashi in Katanga Province. Commenting on the agreement, Cape Lambert’s Executive Chairman, Tony Sage, said: “Cape Lambert has built a successful track record of identifying commodities and projects at the right time. By apply- ing our technical, financial and marketing support, we can add immediate value to these projects and return significant value to the company, its shareholders and all stakeholders. “We believe cobalt, as a commodity, has an extremely positive future and with this transaction and the proposed joint venture, we believe we are well placed to benefit from significant demand and price

The Kipushi plant has a capacity of 150 t/h (photo: Cape Lambert).

The facility comprises a fully permit- ted, conventional flotation plant with a throughput of 150 t/h (annual throughput of plus 1,0 Mt) and has a design capacity of 4 000 t/a of cobalt, 10 000 t/a of copper and 2 000 t/a of zinc in concentrate. The processing plant has been designed and constructed to treat the Kipushi cobalt

increases in this commodity sector.” Construction of the Kipushi processing plant commenced in July 2014, with final mechanical and power installation testing completed in March 2016. Total construc- tion costs of approximately US$20 million have been incurred on the establishment of the plant and mining equipment.

The Kipushi tailings extend over an area of more than 1,2 km in length and 400 m in width (photo: Cape Lambert).

Maiden resource declared for Acacia prospect LSE-listed Acacia Mining has announced a maiden NI 43-101 compliant inferred min- eral resource estimate of 1,31 Moz of gold at 12,1 g/t on the Liranda Corridor within the company’s West Kenya project.

was a first step in the delineation of a multi- million ounce high-grade corridor. “In addition to the Acacia prospect, which hosts all of this maiden resource, we have known mineralisation on the Bushiangala prospect, one kilometre away to the west, with a further three prospec- tive lodes in early stage testing,” he said. “Whilst Kenya is a relatively new mining destination, we are very pleased with the relationships we have built and the sup- port we have received and look forward to working closely with all stakeholders as we progress this highly promising project.” 

A 45 000 m drilling programme has been budgeted for 2017 with six rigs active on site, targeting an increase in resource to over 2 Moz in H2 2017. Acacia says that a scoping study on a potential underground operation is planned to commence in H2 2017. Commenting on the maiden resource, Acacia’s Chief Executive Officer, Brad Gordon, described the West Kenya proj- ect as one of the highest grade projects in Africa today and said the initial resource

All inferred material is located on the Acacia prospect with multiple lodes open laterally and at depth. There is also near term upside from the Bushiangala pros- pect which has known mineralisation which has not yet been incorporated into the maiden resource.

12  MODERN MINING  March 2017

MINING News

The company will further complete a detailed technical review of Paragon’s pro- posed mine plan and scheduling for Kipushi as part of its current due diligence review. Upon successful completion of its due diligence and the establishment of the JV, the company will allocate its technical and financial resources to finalise and optimise the Kipushi mining plan and processing of the tailings in order to meet the joint ven- ture objectives of commencing mining operations within six months. The Kasombo copper-cobalt project is part of the Kasombo Complex, a series of copper-cobalt rich deposits that have been extensively explored by Gecamines and developed and mined by various inter- national companies in joint venture with Gecamines. Kasombo comprises three proj- ects across two granted mining licences. Kasombo 1 was the first operation to be developed in 1995 and mined and pro- cessed ore under a joint venture between Forrest International Group and Gecamines. The mined copper and cobalt grades were reportedly 2,7 % to 3,7 % copper and 0,7 to 1,5 % cobalt. Paragon has secured an option with Gecamines over Kasombo 6, 7 and 12 which is required to be exercised as a condition precedent to the transaction. Cape Lambert says that – assuming a suc- cessful completion of its due diligence and the establishment of the JV – the objective is to complete further exploration and feasibil- ity study work on Kasombo in order to meet the JV objective of completing a feasibility study within 18 months and starting mining activities within 24 months.  centrator circuit will be used to upgrade the gold grade of the dump material before fur- ther metallurgical processing. The circuit’s nameplate processing capacity is 60 000 tonnes per month for sand and slimes materials. The plant includes a water recycling system to minimise the usage of clean water. It is anticipated that the concentrator circuit will arrive and be assembled in the second quarter of 2017, with commissioning to take place during the third quarter of 2017. CRG’s assets are located within the Central Rand Goldfield which borders the southern outskirts of Johannesburg. 

Central Rand Gold (CRG) says it has placed an order, on binding contractual terms, for the procurement of a concentrator circuit. It will consists of four centrifugal concentra- tors, two scrubbers, one high-speed agitator, one dewatering screen and other ancillary equipment necessary to process material prior to thickener underflow processing in the metallurgical plant. As announced on 6 October 2016, the company has executed an agreement to acquire mine waste dumps – situated 10 km from its processing plant – that contain 2,3 Mt of gold-bearing materials, with an average in-situ grade of 0,7 g/t. The con- The Kipushi tailings are from Geca­ mines’ nearby flotation plant that treated ore from the Lwiswishi open-pit cobalt- copper mine. Lwiswishi, which was operated under a joint venture between Forrest International Group, OM Group and Gecamines, is reported to have produced 4 500 t/a of cobalt in the mid-1990s and accounted for as much as 10 % of global supply. Approximately 4,7 Mt of material was deposited into the Kipushi tails dam. Cape Lambert is proposing to complete further confirmatory sampling and met- allurgical testwork and a shallow auger drilling programme in order to allow a JORC 2012 compliant resource and reserve to be determined for Kipushi. tailings. Extensive metallurgical testwork was completed in China and in South Africa prior to the commencement of construction activities. Cape Lambert will complete a detailed review of the plant and the metallurgical testwork that has been completed as part of its technical due diligence review. The Kipushi tailings are located 8 km from the Kipushi processing plant and immediately adjacent to TSX-listed Ivanhoe Mines’ Kipushi project. The tailings extend over an area of more than 1,2 km in length and over 400 m in width. They have a maximum depth of approximately 12 m in the centre of the tail- ings dam and 5 m at the boundaries, with average depths of around 8 m. Paragon has secured the right to mine the Kipushi tailings under an existing agree- ment with state-owned copper and cobalt mining company, Gecamines.

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March 2017  MODERN MINING  13

MINING News

In his commentary on Northam Platinum’s results for the 2017 financial half-year, Chief Executive Paul Dunne says that the standout feature of the first half of F2017 was the good operating performance at Northam’s Booysendal mine on the Eastern Limb of the Bushveld Complex and the pace at which growth is being achieved. “The production run rate of 100 000 PGM ounces in the first half significantly exceeded the mine’s nameplate capac- Standout performance by Booysendal ity. From the original mining footprint we believe we have created capital efficient, scalable growth opportunities with long- term benefits for all stakeholders,” he says. “Both the deepening project on the UG2 mine, and work on the Booysendal South mine continued apace. The first blast for the boxcut at Booysendal South was completed in early September 2016 and the mining contract has recently been awarded to begin underground

operations in March 2017. The Merensky module at Booysendal North is now com- plete and producing at 25 000 tonnes per month.” Commenting on Northam’s Zonder­ einde operation on the Western Limb of the Bushveld Complex, Dunne notes that both tonnages and production ounces were affected owing to operational reorganisation measures underground, following the discharge of 357 employ- ees after labour disruptions in June 2016. “This situation is being addressed and we expect to be back to full complement by March 2017. The drop in milled tonnages was exacerbated by an 18-day outage resulting from a mill bearing failure in the UG2 concentrator.” Dunne says that the development of Booysendal South continues. “With a relatively modest capital programme and small footprint, this brownfields expan- sion will deliver 250 000 PGM ounces per annum at steady state.” Dunne also refers to Northam’s pro- posed acquisition of the Eland platinum mine near Brits from Glencore Operations South Africa for R175 million. “We believe that the Eland orebody, together with the established infrastructure, presents an attractive, low-cost opportunity and a medium-term option for growth,” he says. Eland’s surface and underground infra- structure includes a concentrator with a nameplate capacity of 250 kt/month; a chrome spiral recovery plant; a tailings storage facility with a capacity of 100 Mt; and two decline systems. Its assets also include a substantila mining fleet in excess of 100 vehicles.  Toby Bradbury, Chief Executive Officer, commented: “The excellent exploration results from Nkuluwisi once again show- case the geological potential of the Lupa goldfields. Furthermore, after resource upgrades at Elizabeth Hill in 2015 and Ilunga in 2016, Shanta’s exploration team continues to demonstrate its ability to convert its knowledge and experience into value-creation through the drill bit. “The grades and thicknesses of the mineralisation at Nkuluwisi are very encouraging. The deposit remains open at depth, and strike, and we are confident that further exploration will add to the forthcoming expected maiden resource at Nkuluwisi due in Q2 2017.” 

The Booysendal platinummine (photo: Northam).

Shanta drill holes intersect “encouraging mineralisation” AIM-listed Shanta Gold has provided an update on its ongoing exploration pro- gramme within and surrounding the New Luika Gold Mine (NLGM), located in the Lupa goldfields of south-west Tanzania. Reverse Circulation (RC) drilling at the Nkuluwisi mineralised target, located approximately 12 km north-west of the NLGM’s central processing hub, has inter- sected encouraging mineralisation which is open along strike and at depth. 120 m below surface. Exploration to date has covered a strike length of about 900 m and significant portions of the regionally prominent Nkuluwisi Shear Zone remain untested and exploration work is ongoing. The drilling results are currently being modelled and will be submitted to Shanta’s independent resource consultants for resource estimation purposes in the near future.

Drilling highlights include: 13 m at 6,31 g/t gold from 60 m in hole SGR090, including 5 m at 10,81 g/t; and 19 m at 3,58 g/t from 22 m in hole SGR178, includ- ing 10 m at 5,3 g/t.

A total of 44 RC drill holes comprising 5 833 m of drilling has been completed at Nkuluwisi, identifying mineralisation down to vertical depths of approximately

14  MODERN MINING  March 2017