Modern Mining May 2015

MINING News

Pickstone-Peerless heads for production

tal requirement is planned to be provided by facilities from local financial institutions which have indicated interest in the proj- ect. These facilities are now in the process of negotiation. The majority of the required senior and middle management personnel are in place. A significant part of the operational staff is available. There are ample experi- enced mining specialists in Zimbabwe and no personnel shortages are expected. The mining contractor is on site estab- lishing his required facilities. Elements of the mining fleet are also on site and prepa- ration of the opencast mine is underway. Pit preparation will be undertaken dur- ing May 2015 and an ore stockpile (one month) will be created in June 2015, ready for hot commissioning and first production in August 2015. Annualised gold produc- tion of 10 000-12 000 oz Au is expected from the initial mining rate of 10 000 tonnes per month. Grade control drilling has commenced. Refurbishment of the existing carbon- in-pulp (CIP)/carbon-in-leach (CIL) facilities and the civil engineering for the new facili- ties is 70 % complete. The new mill and crusher ex-China has arrived in Durban, South Africa, and (as of early May) was en- route by road to the mine. 

VAST (formerly African Consolidated Resources), the AIM-listed resource and development company, has announced an update on progress on development at the Pickstone-Peerless gold mine in Zimbabwe. As announced on 17 October 2014, Pickstone-Peerless, situated in the mid- lands of Zimbabwe, is being jointly developed by VAST’s Zimbabwean sub- sidiary and Grayfox Investments (Private) Limited via a co-owned operating com- pany. The co-owned operating company has a capex budget of US$4 million equity, funded by Grayfox, with VAST retaining management control via a chairman’s casting vote. As stated in the company’s results for the six months to 30 September 2014, mine commissioning at an initial mining rate of 10 000 tonnes per month from the opencast oxide gold cap was planned for the beginning of H2 2015 with first positive cash flows later in H2 2015. All regulatory requirements are in place, including the mining permit, environmen- tal approval and works plan approval. A decision was made to acquire slightly enhanced processing equipment to facili- tate and reduce the cost of the next phase of expansion. The increased working capi-

refurbishment is to start in the second quarter. Metallon also reports that it has appointed KBA (Pty) Ltd as New Projects Co-ordinator. KBA will be working closely with the Metallon New Projects Team in Zimbabwe on the 2015 Implementation Programme. The key areas of project management will be the new sands retreatment plant at Mazowe, the Mazowe plant and underground upgrade and the new tailings dams at Mazowe and Shamva mines. Another key focus will be bring- ing Redwing mine back into production through mine dewatering and plant and underground refurbishment. Mzi Khumalo, Chief Executive and Deputy Chairman of Metallon Corporation, commented: “There have been some challenges in production during the first quarter due to equipment breakdowns; however, these issues have been addressed through the equipment replacement pro- gramme. Despite this we have still seen an improvement in production of 8 % fromQ1 2014 and work has advanced with our new projects. In the second quarter of 2015, we look forward to continued improvement in production and further progress in pro­ jects implementation. Metallon remains committed to a reduction of costs and remaining a low cost gold producer.” Metallon has four mines – How, Shamva, Mazowe and Arcturus – in production with a fifth, Redwing, due to be re-opened this year. All are underground operations. 

Lucapa recovers 63-carat gemstone at Lulo concession Lucapa Diamond Company, listed on the ASX, has announced the recovery of another large diamond – an exceptional 63,05 carat stone – from the alluvial mining operations at the Lulo dia- mond concession in Angola. Testing with a Yehuda col-

orimeter has confirmed that the 63,05 gem is a Type IIa diamond, the rarest category of diamond in the world. The diamond was recov-

The 63,05 carat stone recovered from the alluvial mining opera- tions at the Lulo diamond concession in Angola (photo: Lucapa)

In November 2014, Lucapa and its partners signed a 35-year mining licence agreement tomine the alluvial diamonds at Lulo within a 218 km 2 area which includes more than 50 km of the Cacuilo River, its valley and terraces. Alluvial diamond min- ing commenced in January 2015. 

ered from mining area 31 at Lulo, which is north of the 150 t/h diamond processing plant. It is the third largest diamond recov- ered at Lulo behind the 131,40 carat and 95,45 carat gems recovered from the origi- nal bulk sampling activities much further south of the plant.

May 2015  MODERN MINING  5