Modern Mining May 2018

May 2018 Vol 14 No 5 www.crown.co.za M ODERN MINING IN THIS ISSUE…  Ivanhoe well advanced with Kipushi

 Volvo rigid haulers available from Babcock  Wescoal now a significant player in coal  Mako performs better than forecast  SA company leads in chute technology  Feature: Crushing, screening and milling

MODERN M I N I N G

CONTENTS

MAY 2018

ARTICLES

REGULARS MINING NEWS 4 COVER 20 Volvo rigid haulers strengthen Babcock’s mining offering COAL 24 Wescoal gets critical mass GOLD 28 Impressive start-up by Mako 31 Boungou nears production COMPANIES 32 South Africa’s Weba a world leader in chute technology FEATURE – CRUSHING, SCREENING AND MILLING 36 Kwatani busy with big order to supply screens to coal mine 38 New strategy in place at re-energised Osborn 42 B&E targets the coal sector 46 Collaboration now a key part of Multotec’s strategy 49 Weir builds its capability in the comminution space 7 Feasibility study underway on Gamsberg smelter-refinery 8 WorleyParsons completes update of Wafi-Golpu study 10 Syama Underground on course for late-2018 start-up 11 Vast Resources acquires interest in Eureka gold mine 12 Yanfolila successfully transitions to full-scale operations 13 Upgrading of Kipushi mine now well advanced 14 Perseus’s newest mine makes a strong start 15 Sanbrado gold project heads for development 16 Loulo-Gounkoto still investing in new projects 19 Bulk water supply secured for first phase of Platreef PRODUCT NEWS 52 Metso valves at Tarkwa reduce plant downtime 53 On-site oil treatment extends transformer life 54 Coal mine opts for additional Condra cranes 55 HPE Africa appointed as McCloskey distributor 56 Schauenburg contributes to DigiMine initiative 57 Safety comes first at Skyriders 58 ‘True’flat top grating available from Andrew Mentis 59 Fleetguard solution supplied to Zambian copper mine 60 Roof support system ideal for unstable ground Teranga records strong first quarter results 5 6 PEAs completed on three Ethiopian gold projects Paladin contemplates closure of Langer Heinrich

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

Darryl James Circulation Brenda Grossmann Publisher Karen Grant

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Deputy Publisher Wilhelm du Plessis Printed by: Shumani Mills Communications

The views expressed in this publication are not necessarily those of the editor or the publisher.

Published monthly by: Crown Publications cc P O Box 140, Bedfordview, 2008

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

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Cover The recently launched 100-ton capacity R100E, flagship of Volvo Construction Equipment’s new range of rigid haulers. The range is available locally from Babcock, the dealer for Volvo CE in Southern Africa. See page 20 for further details.

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Average circulation (January–March 2018) 5026

May 2018  MODERN MINING  1

COMMENT

West Africa’s newest gold mines hit the ground running

W ith all the negativity sur- rounding the African min- ing scene at the moment, it’s good to see a group of ‘new generation’ open-pit gold mines in West Africa performing ahead of ex- pectations, simultaneously benefitting both their shareholders and their host countries and communities. The mines I’m referring to – Houndé in Burkina Faso, Mako in Senegal, Sissingué in Côte d’Ivoire, and Fekola and Yanfolila in Mali – have all been brought into production within the past few months, either on or well ahead of schedule and budget, and all are meeting or exceeding their production targets. Perhaps the pick of them, Houndé , developed by TSX-listed Endeavour Mining, recorded its first gold pour in October 2017 and achieved commercial production on 1 November, two months early. Remarkably, no LTIs occurred over the 7 million man hours worked during the construction period. Houndé is expected to produce between 250 and 260 koz of gold in 2018 at an AISC of US$580 to US$630/oz. In its latest quar- terly report (for the period ending 31 March), Endeavour says the mine produced 74 koz at an AISC of just US$433/oz in Q1, meaning that it is well on track to meeting guidance. The plant is performing impressively with the annualised run-rate being 3,6 Mt/a, well above the name- plate capacity of 3,0 Mt/a. Mako , owned by Toro Gold, is a smaller mine than Houndé but, as we report elsewhere in this issue, it has successfully transitioned to steady- state operations after having poured its first gold in January this year and reaching design levels of performance just a month later. It was brought on line two weeks early and within its budget of US$158 million and, according to Toro’s CEO, Martin Horgan, is currently operat- ing very satisfactorily, with all metrics either in line with or better than forecast. Much the same comments can be made with respect to Perseus Mining’s Sissingué mine, which also poured its first gold in January this year and achieved commercial production on 1 April. The plant appears to be running very efficiently, achieving a 97 % recovery rate in March, which is 6 % above forecast. Built at a cost of US$106,7 million, Sissingué should produce around 70 koz/a over its projected life of five years and provides Perseus, until now reliant on its Edikan gold mine in Ghana,

with a second cash flow stream B2Gold’s Fekola mine, situated in south- western Mali near the border with Senegal, is the biggest of the new West African mines, producing 114 koz at an AISC of US$486/oz in its first full-quarter (Q1 2018) of operations. According to B2Gold, the mine’s rapid and suc- cessful ramp up has surpassed its expectations. Construction was completed in late September last year, more than three months ahead of the original schedule, while the first gold pour took place on 7 October. On 30 November, the mine achieved commercial production, one month ahead of the revised schedule and four months ahead of the original schedule. The mine will be one of the biggest gold operations in West Africa, with full-year pro- duction in 2018 expected to be between 400 and 410 koz at a very competitive AISC of between US$575 and US$625 per ounce. It will also be the biggest mine within the B2Gold stable, bringing the group’s total forecast pro- duction for 2018 to between 910 and 950 koz. B2Gold, of course, is a seasoned mine builder, as it has also shown with its Otjikoto gold mine near Otjiwarongo in Namibia, which has been a huge success and is expected to produce between 160 and 170 koz this year. I understand that the team that built Otjikoto was, in large measure, also responsible for Fekola. Yanfolila , Mali’s other new gold mine, which poured its first gold on 19 December, is also meeting all its targets, having ramped up to full nameplate capacity by the end of the first quarter of this year. Developed by AIM-listed Hummingbird Resources, it is a much smaller operation than Fekola but certainly not insig- nificant with around 130 koz targeted in its first full year of production. I am pleased to say that there has been a South African involvement in the project, with the 1,24 Mt/a CIL plant having been built by South Africa’s SENET. With so many new mines having come on stream in West Africa, one might think that the project pipeline might be emptying out. Not a bit of it. There are gold projects at an advanced stage all over the region with the most advanced of all being Boungou (see page 31), a US$231 million development by SEMAFO, which – as I write this – is on the brink of first production. If anything, West Africa’s gold boom is gathering pace rather than tailing off and it could well be that the best is yet to come. Arthur Tassell

Fekola will be one of the biggest gold operations in West Africa, with full-year production in 2018 expected to be between 400 000 and 410 000 ounces at an AISC of between US$575 and US$625 per ounce.

May 2018  MODERN MINING  3

MINING News

The Sabodala gold mine in Senegal (photo: Teranga). Teranga records strong first quarter operating results

TSX-listed Teranga Gold Corporation has reported a gold production of 64 031 ounces in the March quarter (Q1) of 2018, a 13 % increase on the figure for the equiv- alent period in 2017. The total cash cost was US$659/oz compared to US$722/oz in Q1 2017. Since its initial public offering in 2010, Teranga has produced more than 1,4 mil- lion ounces of gold from its Sabodala gold mine in Senegal, which – as of June 30, 2017 – had a reserve base of 2,7 million ounces of gold. Sabodala produced a record 233 267 ounces of gold in 2017. Sabodala is Teranga’s only producing asset but the company is advancing its Wahgnion gold project (formerly referred to as the Banfora project) in Burkina Faso,

the bottom of Gora and Golouma South pits, which required the use of smaller equipment, mine operations experienced reduced shovel productivity. In the prior year period, total tonnes mined were a company record, mainly due to higher than planned equipment availability, improved utilisation of the mining fleet and a significantly higher quantity of free- digging oxide waste. Ore tonnes mined and ore grades were 26 % and 41 % higher, respectively, com- pared to the prior year period mainly due to increased tonnes and grade from the Gora deposit and the final benches of Golouma South being primarily ore. Gora will complete mining activities during the second quarter followed by closure and rehabilitation activities. Ore tonnes milled for the first quarter were similar to the prior year period and benefitted from slightly higher operating hours resulting from the timing of mainte- nance work in the milling circuit. At Wahgnion , all critical long-lead equipment and key contracts have been awarded and bulk earthworks are well underway putting Teranga on track to begin concrete installation for the mill foundation later this month (May). Wahgnion was acquired in October 2016 as part of Teranga’s acquisition of ASX-listed Gryphon Minerals. The fully permitted, high-grade, open-pit project is located in the south-west of Burkina Faso. According to the Feasibility Study

which will rank as its second producing gold mine. The first gold pour atWahgnion is expected by the end of 2019. The com- pany’s project pipeline also includes the Golden Hill project in Burkina Faso. Mining activities at Sabodala in the first quarter were focused on Kerekounda and the last production benches of Golouma South, as well as the narrow lower benches of Golouma West and Gora Phase 3. In the prior year period, mining was focused on Golouma South, the upper oxide zone at Kerekounda, as well as the lower benches of Gora Phase 2 and 3. Total tonnes mined for the first quarter were in line with plan and were 14 % lower compared to the prior year period. Due to mining in narrower benches at or near

The Wahgnion site in Burkina Faso. Wahgnion will be Teranga’s next producing mine (photo: Teranga).

4  MODERN MINING  May 2018

MINING News

released by Teranga last year, Wahgnion will be mined by way of conventional open-pit techniques using drill and blast with material movement by hydraulic excavators and trucks. The project scale suits 110- to 140-tonne class excavators in a backhoe configuration matched to 50-tonne class mining haul trucks operat- ing at 5-m bench heights. The process plant will be located adjacent to the Nogbele deposit, which contains approximately 50 % of the ini- tial reserves. The Fourkoura, Stinger and Samavogo deposits are located 6, 15, and 25 km, respectively, from the pro- cess plant. The haul trucks selected have the ability to haul ore directly to the process plant. The process plant design is based on a conventional CIL gold process flow- sheet consisting of primary crushing, SAG and ball milling, with a pebble crusher, CIL tanks, elution, electro-winning and gold smelting to produce doré on site. Throughput is expected to range between 2,2 and 2,5 Mt/a, depending on the blend of soft and hard ore. Wahgnion will produce 119 koz/a at an AISC of US$843/oz over a nine-year mine life. “We have a clear vision for Teranga and that is to become a multi-asset, mid-tier gold producer in West Africa,” said Richard Young, President and Chief Executive Officer. “With the financings now in place to build our second mine and to move a third project through a future feasibility study, we have a well-defined roadmap for executing on our vision. Beyond the near- term priorities of Wahgnion and Golden Hill, we are also focused on advancing our extensive organic pipeline in Côte d’Ivoire for future growth.” 

PEAs completed on three Ethiopian gold projects East Africa Metals Inc (EAM), listed on the TSX-V, reports it has received from Tetra Tech Canada Inc positive results from Preliminary Economic Assessments (PEAs) for its three gold projects in Ethiopia.

approximately 15 km from Mato Bula and Da Tambuk. According to its PEA, Mato Bula could deliver an average annual metal produc- tion of approximately 34 750 oz of gold, 1,67 million pounds of copper and 4 780 oz of silver over a minimum eight-year mine life. It would be an open-pit operation allied to a processing plant able to process at a rate of 1 400 tonnes/day using conven- tional crush/grind comminution, gravity concentration and flotation to produce a copper-gold concentrate. In addition, a gold-bearing pyrite concentrate would be produced and treated off-site using CIL technology. Pre-production capex is esti- mated at US$54,2 million. The PEA on the Da Tambuk project envisages an average metal production of approximately 24 000 oz of gold per year and 6 000 oz silver per year with the ore being produced by an underground mine utilising ramp access, cut and fill and open stope mining. The processing rate would be 550 tonnes/day using crush/ grind comminution, gravity concentra- tion and CIL technology. The mine would have a minimum life of four years based on mining to a depth of 200 m below surface. The pre-production capex is estimated at US$34,1 million. The Terakimti PEA proposes a produc- tion of approximately 17 800 oz gold per year and 57 250 oz of silver per year over a four-year mine life. Mining would be by open-pit methods while the process- ing rate contemplated is 715 tonnes/day using two-stage crushing, heap leaching and Merrill Crowe technology. Of the three projects, it has the lowest pre-production capex – just US$17,2 million. 

Separate PEAs have been received for the company’s 100 %-owned Mato Bula gold copper project, its 100 %-owned Da Tambuk gold project and its 70 %-owned Terakimti gold heap leach project in the Tigray Regional National State of Northern Ethiopia. According to East Africa Metals, each of the projects demonstrates robust econom- ics utilising industry standard mining and processing technology. “These PEA studies indicate very posi- tive results that demonstrate the significant commercial development potential of East Africa’s Ethiopian projects, and provide a sound basis for ongoing development engineering, with the ultimate objective of establishing commercial production,” com- ments Andrew Lee Smith, Chief Executive Officer of East Africa. “Collectively, under the development scenario described in the PEAs, these three projects present the opportunity to develop mining operations and revenue over the next 18 to 24 months and position EAM to continue the expan- sion of the scope of development and the current resource”. All three projects are located within 10 km of existing paved highways and the national power grid, and approximately 35 km from the town of Shire, which has an airport and extensive services. The Mato Bula and Da Tambuk projects are located 5 km apart and offer the opportunity to share access road and power line construc- tion costs. The Terakimti gold project is

May 2018  MODERN MINING  5

MINING News

The Langer Heinrich Mine is located 80 km east of Walvis Bay in Namibia. When production started, it was the first conventional uraniummining and process- ing operation to have been brought on line in over a decade. It was built for US$92 million but has subsequently been expanded (photo: Paladin). Paladin contemplates closure of Langer Heinrich

that may result in initial redundancies. Subject to receiving any required approvals and completing preparatory initiatives, Paladin believes it will be in a position to make a formal decision regard- ing care and maintenance within the next two months, which would then initiate a one to two-month final process, after which time LHM would cease uranium production. Regarding the potential to place LHM on care and maintenance, CEO Alex Molyneux said: “The uranium market has failed to recover since the Fukushima Incident in 2011, with the average spot price so far in 2018 the lowest in 15 years. It’s deeply distressing to have to consider suspending operations at LHM because of the consequences for our employees, and the broader community. However, as there has yet to be a sustainable recovery in the uranium market, and with the aim of pre- serving maximum long-term value for all stakeholders, it is clearly prudent to con- sider these difficult actions.” LHM has been in continuous operation since 2007 as a world-class open-pit ura- nium mine. It has a notional capacity of 5,2 million pounds of uranium production per year and produced 3,4 million pounds in the 2017 calendar year with physical mining curtailed and the plant being fed by historically mined medium-grade stock- piled ore. LHMcurrently employs more than 600 direct employees and contractors. 

ASX-listed Paladin Energy reports that preparatory steps are being taken for a potential care and maintenance decision in respect of its Langer Heinrich Mine (LHM) in Namibia. Paladin previously disclosed that the medium-grade ore stockpiles, which are currently the processing feed for LHM’s processing plant, are expected to be exhausted before mid-2019 and that a decision needs to be made at least six months prior to the exhaustion of those stockpiles as to whether to restart physi- cal mining, process low grade stockpiles or place LHM on care and maintenance. The company says that given the con- tinued deterioration of macro factors,

Indiana with a strategic foothold in a highly prospective location where there is a history of major gold discoveries,” says Indiana’s Chairman, Bronwyn Barnes. “We consider the regional geological setting, combined with the early positive results from previous exploration, to be highly encouraging for gold and believe that an expanded exploration programme is warranted to define targets for drill test- ing. We have commenced activities on the ground in anticipation of complet- ing legal formalities and will now move immediately to expand current exploration programmes.”  The company has begun consultations with relevant stakeholders (Government, customers, LHM’s minority joint-venture partner and employee representatives/ unions) with a view to completing such consultations in a timely manner. Other preparatory works are underway including changes in certain supplier arrangements and changes in staffing including the stubbornly low spot ura- nium price but also factors such as foreign exchange rates and prices of processing reagents, it is becoming less likely that the company will be in a position to resume physical mining activity at LHM in 2018 nor would processing low grade stock- piles be viable.

Indiana to acquire Malian gold assets ASX- l i s ted I nd i ana Re sou rce s ha s announced that – following successful com- pletion of its due diligence – it has finalised legal agreements to acquire 100 % of the shares of Mukuyu Resources Limited, the owner of interests in two highly prospective gold exploration licences in western Mali. The Mukuyu assets comprise two exploration permits at Koussikoto Ouest and Kenieko Nord (total area of 126 km 2 ), located in the prolifically gold mineralised Kenieba Province of western Mali, approxi- mately 550 km west of the capital city of Bamako. “The acquisition of Mukuyu provides

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MINING News

Feasibility study underway on Gamsberg smelter-refinery

Vedanta Zinc International (VZI), a subsid- iary of London-listed Vedanta Resources, reports it has started a feasibility study into the development and construction of a Zinc Smelter-Refinery Complex to process concentrates from its Gamsberg project at Black Mountain Mining in the Northern Cape. The establishment of the proposed ben- eficiation plant will make Gamsberg a fully integrated zinc production site, with the mine, concentrator and Smelter-Refinery Complex at a single location, making it the first integrated zinc manufacturing facility in South Africa. It is envisaged that the first phase of the Smelter-Refinery Complex will have a capacity of 250 000 t/a of finished zinc metal. As the entire Gamsberg project has been developed in a modular fashion, so the Smelter-Refinery Complex could also be expanded to align with Gamsberg Phases 2 and 3. The feasibility study will evaluate the infrastructural requirements of the com- plex – the beneficiation facility would require around 200 MW of additional power, and additional water supply. Both of these would mean significant large- scale investment.   The scope of the feasibility study includes a review of previous work undertaken by VZI into the possibility of developing a Southern African Zinc Cluster that would incorporate both Black Mountain and Skorpion Zinc, which is located in southern Namibia. Skorpion Zinc currently operates an integrated zinc refinery, and the potential exists for the conversion of this 150 000 t/a refinery to co- treat sulphide and oxide concentrates from

A recent view of the Gamsberg site near Aggeneys. First production from the US$400 million (Phase 1) project is expected in mid-2018. Phase 1 has a life of mine of 13 years, producing an expected 4 Mt/a from the open-pit mine and 250 000 t/a from the concentrator plant (photo: VZI).

Vedanta’s commitment to beneficiating to final metal, which is the model followed by the group in India. The Gamsberg refinery could see a further investment by Vedanta of between US$700 million and US$800 million. 

Gamsberg and other sulphide concentrate raw materials from nearby. Should these projects proceed, this Southern African Zinc Cluster has the potential to be one of the world’s largest zinc supply regions. This feasibility study is in line with

NewMD appointed at Lucara subsidiary Lucara Diamond Corp has announced the promotion of Naseem Lahri to Managing Director of Boteti Mining (Pty) Ltd, Lucara’s 100 %-owned subsidiary in Botswana, effec- tive immediately.

the Debswana Pension Fund, Botswana Accountancy College and Pula Medical Aid. She has served as Boteti’s CFO and Director since March 2013, responsible for Finance, Administration and Security.  In her expanded role as MD, Boteti, Lahri will have oversight in all aspects of the business and, as a matter of priority, will be working closely with General Manager Johane Mchive, appointed in 2017, to help drive improved performance at the Karowe diamond mine. 

Lahri is a Professional Accountant with a Masters in Strategic Management (BCOM, FCCA), with more than 17 years’ experience in the mining industry, includ- ing 10 years within Corporate Finance at Debswana at the senior management level. She has also served as a board member in

May 2018  MODERN MINING  7

MINING News

WorleyParsons completes update of Wafi-Golpu study

large-scale open pit mining of the Wafi deposit rather than underground mining; however, this was dismissed for various reasons. Subsequent investigations were highly successful in more accurately delin- eating an orebody but further work was required to determine the economic viabil- ity of mining. A number of technical studies across various disciplines was completed post- 2012 which determined a viable business case for development of a large-scale deep-level block cave mine. The outcomes of the Pre-Feasibility Study initiated a Pre-Feasibility Optimi­ sation Study phase of work. This phase of work contemplated alternative options focused more towards a smaller, scalable, lower capital cost start-up mine. In November 2013, the Pre-Feasibility Optimisation Study was commissioned with the purpose of developing a single, preferred business case to a pre-feasibility study level of definition. WorleyParsons RSA were appointed by the WGJV as the Pre-Feasibility Optimisation Study con- sultants. Prior to commencing the study, WorleyParsons utilised the StepWise meth- odology to develop, assess and shortlist preferred options. Bailie says that by following the Step­ Wise process, theWGJV andWorleyParsons RSA were able to reframe a new business case for the Wafi-Golpu project by looking at a small-scale build-up and programme of ongoing work that led to the Feasibility Study, and later the Feasibility Study Update. Initially fourteen conceptual mining options were developed and assessed with the associated technical and business case, which was narrowed down to three preferred options to carry forward into the Pre-Feasibility Optimisation Study. WorleyParsons RSA completed the study in 2014 which recommended a staged development approach involving the mass mining method, block caving, commenc- ing with the development of a smaller lower cost start-up mine (Stage 1 project). The Stage 2 project focused on a life of mine plan as a follow-on from the Stage 1 project, with the objective of identifying and evaluating options to maximise and enhance the value of the Golpu orebody through optimising access and the exploi-

Processing plant of the greenfield Wafi-Golpu project.

Project delivery company WorleyParsons RSA has recently completed the Feasibility Study Update (FSU) for the Wafi-Golpu Joint Venture (WGJV ) in Papua New Guinea, giving the greenfield Wafi-Golpu project a revised execution plan going forward. Bryan Bailie, the Executive Project Director for WGJV, says, “The Feasibility Study Update developed by the WGJV, WorleyParsons RSA and other consultants sets out an improved business case for the Wafi-Golpu project, and the study confirms the preferred technical options to deliver the block cave mining project safely and with appropriate consideration given to environmental, social and cultural heritage stewardship.” The FSU report incorporates findings from earlier pre-feasibility and feasibil-

ity studies and draws on extensive data collection undertaken since 2016. It also forms an integral component of the revised Proposal for Development in support of the Special Mining Lease appli- cation which was submitted to the Mineral Resources Authority (MRA) by the Wafi- Golpu Joint Venture in August 2016. Wafi-Golpu is a joint venture copper- gold project that is owned 50/50 by Harmony Gold Mining Company South Africa and Newcrest Mining in Australia. It is located in the Morobe Province of Papua New Guinea, approximately 65 km south- west of the city of Lae. Various approaches to development (including infrastructure configurations) have been considered in the investigations for the development of the Wafi-Golpu deposits. Early investigations considered planned for resource delineation in 2018 to be included in the alluvial JORC resource update. This mining block is located close to the treatment plant. Lucapa says the frequent recovery of large and premium-value diamonds from new areas along the Cacuilo River val- ley continues to illustrate the uniqueness and potential of the Lulo diamond con- cession. Lulo has already recovered ten plus‑100‑carat diamonds to date, includ- ing Angola’s two biggest recorded white Type IIa gems weighing 404 carats and 227 carats. 

Large pink diamond recovered at Lulo in Angola Lucapa Diamond Company, listed on the ASX, and its partners, Endiama and Rosas & Petalas, have announced the recovery of a large gem-quality pink diamond from the Lulo diamond project in Angola.

The 46-carat pink is the largest gem- quality coloured diamond recovered to date from the Lulo mining operations, eclipsing the 43-carat yellow gem recov- ered in January 2018 and the 39-carat pink recovered in September 2016. Significantly, the 46-carat pink, along with other large Specials, was recovered from new Mining Block 4, which is an area

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MINING News

Exploration ramps up at Kunene project Namibia Rare Earths Inc, listed on the TSX‑V, has contracted SkyTEM Surveys ApS to carry out a detailed airborne electromagnetic (EM) and magnetic survey covering all the previ- ously identified cobalt targets on its Kunene cobalt-copper project in northern Namibia. The survey will cover over 600 km 2 and com- prises 3 700 line kilometres to be flown with a helicopter-borne time domain electromag- netic system at a flight line spacing of 200 m. The objectives of the survey are to detect conductive horizons and sulphide accu- mulations associated with cobalt-copper mineralisation to depths of 300-400 m, and to assist with geological mapping and struc- tural interpretations. The system is being mobilised from Denmark and the survey is scheduled to be completed by the end of June this year.

tation of the orebody above the 4 100 m RL target area. In 2016 the Feasibility Study was sub- jected to a competent independent review process which identified no fatal flaws but made recommendations for additional work to be undertaken. The FSU incorporates a much larger mine than previously anticipated and min- ing throughput will be increased from 3 to 16,84 Mt/a at BC44, 6 to 16,84 Mt/a at BC42 and BC40 at PFS level. This increase in throughput required the redesign of the underground material handling system, process plant, associated infrastructure, and overland concentrate and tailings transport pipelines. In setting out the updated business case for the FSU, WorleyParsons RSA drew on SmartPlant design technology that utilises rapid prototyping, and other innovative processes such as Building Information Modelling (BIM) to create a sophisticated digital project design platform and pre- pare for project execution as efficiently and cost effectively as possible. 

“We are in the early stages of exploration of what may well be an emerging cobalt district,” comments Don Burton, President of Namibia Rare Earths. “As global attention focuses on diversification of cobalt supply outside of the DRC and on where to secure conflict-free sources of cobalt, Namibia clearly offers the opportunity for the discov- ery of world class primary cobalt deposits. “This phase of our programme at Kunene is all about discovery. Having closed our C$4 million financing, we are well-funded to carry out the necessary exploration programmes. Our SkyTEM survey will be the first airborne EM survey over this highly prospective area. Sediment-hosted cobalt-copper deposits should respond well to electromagnetic methods. Based on what the surface geo- chemistry is showing us, the SkyTEM survey will undoubtedly deliver multiple targets for the budgeted drilling campaign.” The Kunene property was one of several acquired fromGecko Namibia in a deal final- ised earlier this year. 

Preliminary data will be delivered on site to allow for immediate ground follow-up by field teams which are being deployed in advance to carry out geological mapping and sampling over the primary target areas.

May 2018  MODERN MINING  9

MINING News

Syama Underground on course for late-2018 start-up

tion continued from the first and second production levels (the 1130 and 1105 lev- els). In all, 64 448 tonnes of underground development ore at a grade of 3,0 g/t was delivered to the processing plant during the reporting period. The second primary ventilation raise bore from the 1290 to the 1140 level was completed during the quarter. The Autonomous Decline has reached the 1035 level and the Main Decline has reached the 1055 level. Both fan chambers are being prepared for construction of the primary fans and development of the 1240 and 1105 main pump chambers has been completed in preparation for pump station construction. Development rates continue to main- tain progress in line with expectations. Advance slowed in the March 2018 quarter as work focused on establishing a number of items of key underground infrastructure. The incline is due to break through into the boxcut in the September 2018 quarter. Development ore will continue to aug- ment the stockpiled sulphide material and satellite open-pit sulphide sources. “The Syama Underground mine is making steady progress towards the final goal of a world class sublevel cave opera- tion,” comments John Welborn, Resolute’s MD and CEO. “Completion of the Syama Underground mine will take total site production from Syama to levels above 250 000 ounces of gold annually.”  south and to the east is currently being implemented. In addition, high density soil sampling is being undertaken over the identified ground magnetic anomaly. Other news from Pangolin is that it has signed an option agreement withMakanwu Civil Blasting (MCB), a private company incorporated under the laws of Botswana. Under the agreement, MCB has granted Pangolin the sole and exclusive option to earn up to a 75 % interest in respect of MCB’s AK10 diamond project located in the Central District of Botswana. The AK10 kimberlite is only 4 km NNE from the Karowe mine of Lucara. It was originally discovered in 1968 from airborne magnetics by De Beers who established that it was diamondiferous. It has been modelled to be 6 ha in size and is close to surface with only 9 m of cover. 

Underground development at Syama (photo: Resolute).

Reporting on the three-month period to 31 March 2018, ASX-listed Resolute Mining says that the Syama Underground mine development remains on schedule for first sublevel cave ore production to com- mence in December 2018. The Syama mine is located in the south of Mali, approximately 30 km from the Côte d’Ivoire border and 300 km south-east of the capital Bamako. It is a large-scale operation which comprises two separate processing plants: a sulphide processing circuit and an oxide processing circuit. Mining at the main Syama open pit

was completed in May 2015. Ore for the sulphide circuit is currently being sourced from stockpiled material, sulphide ore from the northern satellite orebodies, remnant ore from the Syama main pit, and underground development ore. Ore for the oxide circuit is provided by open-pit min- ing of a series of satellite orebodies. The new underground operation will extend the mine life at Syama beyond 2028. During the quarter, underground development commenced on the fourth production level (the 1055 level) and underground development ore produc- a chrome spinel inclusion on the broken surface of the diamond is interpreted by Pangolin to be an indication that the dia- mond is close to source and transport distance is minimal. In addition to the dia- mond, ilmenites with surfaces showing little or no wear through transport have also been recovered from soil samples from the same area during three phases of soil sampling. A detailed ground magnetic survey has been completed over an area of 144 ha and a magnetic anomaly has been identi- fied in the south of the area. The diamond is located adjacent to the ground magnetic anomaly. An additional ground magnetic survey extending the existing survey area to the

Pangolin recovers diamond at Jwaneng South Pangolin Diamonds Corp, listed on the TSX‑V, has announced it has recovered a white diamond from its wholly-owned Jwaneng South kimberlite project in an area 100 km south of the Jwaneng dia- mond mine in the Southern District of Botswana.

The diamond was recovered from an unscreened 60-litre sample collected within a 10 m 2 area of a GPS-controlled sample site. This material was dry screened in the field to recover the +0,425 – 4,0 mm size fraction. The sample was then transported to Francistown, Botswana and processed through Pangolin’s 1 t/h DMS plant. The white diamond measuring approxi- mately 1 mm in its long axis is a fragment of the original diamond. The presence of

10  MODERN MINING  May 2018

MINING News

AIM-listed Vast Resources has announced the acquisition from Alpha Resources and the Industrial Development Corporation of South Africa of a 95 % interest in Delta Gold Zimbabwe (owner of the Eureka gold mine) by its Zimbabwe group company, Dallaglio Investments (Pvt) Ltd. Vast’s economic interest in Dallaglio is 25,01 %. The deal – which results in Vast having a 23,75 % indirect interest in Eureka – is worth US$4,48 million in cash. In addition, Dallaglio will finance Delta Gold for US$1,8 million to meet Delta’s current creditors. Vast’s primary existing asset in Zimbabwe is the Pickstone-Peerless gold mine (in which it has a 25 % indirect interest), located 100 km south-west of Harare. Andrew Prelea, Chief Executive of Vast Resources, commented: “We are extremely pleased to announce the first new acquisition together with our strategic partners in Zimbabwe for many years. This demon- strates our continued belief in Zimbabwe and the ability to find robust assets to add to the Vast portfolio. “The Eureka mine has had historical investment in excess of US$30 million in the late 1990s. We believe this to be a highly attractive acqui- sition target given the size of the resource and level of investment in equipment made to date and I look forward to providing updates regarding development and commissioning at Eureka in the coming months. “The knowledge we have accumulated from our operations at Pickstone-Peerless is invaluable in assessing the true value of dormant mines such as Eureka that can be brought in to commercial production in the near term.” Eureka, which has been on care and maintenance since 2008, is situated about 5 km south-east of Guruve, 300 km from the Pickstone- Peerless mine and 150 km north of Harare. Access to the mine is by an all-weather tarred road from Guruve and then a 3,5 km dirt road to the mine. It was developed as a modern gold mine in 1999 designed to pro- duce approximately 70 000 oz of gold per annum from an open pit before an underground operation was established.  Vast Resources acquires interest in Eureka gold mine Minister visits Prospect’s pilot plant ASX-listed Prospect Resources, which is developing the Acacia lith- ium project, reports that the Zimbabwean Minister for Mines and Mining Development, Winston Chitando, visited the company’s lithium carbonate pilot plant in Kwekwe recently to see first-hand the work that Prospect is doing to create battery grade (+99,5 %) lithium carbonate. Prospect’s lithium carbonate pilot plant is the only such plant in Africa. Prospect is using this facility to provide sample products to potential and future customers around the world and to dem- onstrate Zimbabwe’s technical capability. During the pilot plant visit, the Minister confirmed that inter- national mining companies operating in Zimbabwe will not be required to list on the Zimbabwe stock exchange. “As you have heard from His Excellency the President, Zimbabwe is open for business and we are removing barriers for companies to invest in Zimbabwe to create jobs and wealth for the country,” he said. 

May 2018  MODERN MINING  11

MINING News

A striking night shot of Yanfolila (photo: Hummingbird). Yanfolila successfully transitions to full-scale operations

mine resources to look to convert oppor- tunities and resources into reserves and an extended mine life. We have committed to spend up to 15 % of our free cash flow into this activity which is anticipated to be in the region of US$8 million. Colin Porter has recently joined the company as exploration manager to head up this activity.” Hummingbird says the successful ramp- up of the entire plant is due to the flexible design and the experience of the construc- tion team – both in-house and in SENET, the engineering contractor. The company also notes that Yanfolila has a 95 % Malian work force with the supervisors and con- trol room operators having been recruited from similar gold operations within Mali, adding important local experience.  Kilembe copper-cobalt deposit is consid- ered a VMS deposit. A number of priority anomalies have been identified from the initial data inter- pretation which will be utilised to focus ground crews who will undertake map- ping and prospecting; detailed ground geophysical surveying; and soil and rock sampling to further define key target areas within the exploration licence. The helicopter survey will now be focused on the company’s licence in Kasese District, south of the former Kilembe mine, and thereafter will be utilised, as required, on a focused basis to support the ground programme currently underway at the Bujagali property. 

AIM-listed Hummingbird Resources says in its report for the quarter ended 31 March 2018 (Q1) that it has success- fully achieved an on-schedule transition from construction, through ramp up, to full scale operations at its Yanfolila gold mine in Mali. Both the mine and plant were operating at nameplate capacity by the end of Q1. During the quarter 18 785 ounces of gold were poured at an average grade of 2,96 g/t with the figures for March being 9 912 ounces at an average grade of 3,39 g/t. Total ore processed was 238 628 tonnes. Production guidance for 2018 is between 105 000 and 115 000 ounces (including the Q1 ramp-up). “Yanfolila had a strong start to the year

with the ramp up phase going to plan and with a significant increase in performance throughout the quarter,” says Dan Betts, CEO of Hummingbird. “The process plant is operating to design specification and the grade and recoveries of gold we are seeing are solid and consistent with expectations. Progress has been strong and I am pleased that we are able to declare commercial pro- duction from 1 April 2018 with the plant having operated at over 95 % of nameplate for the month of March and continuing to operate at 100 % throughout April. “The focus remains on continually refining and improving Yanfolila into a con- sistent low-cost operation. Additionally, one of our immediate priorities this year is to aggressively explore and develop the near mineralisation at depth; better understand local stratigraphy; and sample buried bed- rock in preparation for drilling. At M2 Cobalt’s Kilembe Area proper- ties, Geotech has now completed the helicopter-borne VTEM™ B-Field and hori- zontal magnetic gradiometer geophysical survey over the company’s northernmost exploration licence in Bunyangabu District (Kilembe Area Property). The survey was flown at 100-m spaced lines and was designed to identify priority geophysical anomalies analogous to that of volcano- genic massive sulphide deposits (VMS) for follow-up exploration. The past producing

M2 Cobalt commences trenching at Bujagali M2 Cobalt Corp, listed on the TSX-V, has mobilised trenching crews and has com- menced trenching its Waragi and Bombo targets at the Bujagali property in Uganda. Both targets comprise large-scale cobalt, copper and nickel anomalies recently dis- covered by M2 Cobalt through its ongoing exploration programmes. Anomalous soil and rock samples at the Waragi tar- get contain 1,24 % Co and 0,4 % Cu and anomalous soil and rock samples at Bombo contain 0,65 % Co, 0,4 % Cu and 0,15 % Ni.

Trenches are designed from 30 to 90 m in length cross cutting stratigraphy to test

12  MODERN MINING  May 2018

MINING News

Upgrading of Kipushi mine now well advanced

1 150‑metre level, between the Big Zinc access decline and Shaft 5. Based on the findings of an indepen- dent, pre-feasibility study (PFS) issued in December 2017, Kipushi is expected to have average annual production of 381 000 tonnes of zinc concentrate over an 11-year initial mine life at a total cash cost of approximately US$0,48 per pound of zinc. The PFS focuses on the initial mining of Kipushi’s Big Zinc orebody, which has an estimated 10,2 Mt of measured and indi- cated mineral resources grading 34,9 % zinc. The planned return to production would establish Kipushi as the world’s highest-grade, major zinc mine. The project is located adjacent to the town of Kipushi and approximately 30 km south-west of Lubumbashi. Ivanhoe acquired its 68 % interest in the project in November 2011; the balance of 32 % is held by the DRC’s state-owned mining company, Gécamines. 

New rollers being installed on the ore conveyor on Kipushi’s 1 150-metre-level as part of the infrastruc- ture upgrading programme (photo: Ivanhoe).

Reporting on its Kipushi copper-zinc- germanium-lead mine in the DRC in its results for the first quarter of 2018, TSX- listed Ivanhoe Mines says it has completed the upgrading of a significant amount of underground infrastructure at the pro­ ject, including a series of vertical mine shafts to various depths, with associated head frames, as well as underground mine excavations. A series of crosscuts and ven- tilation infrastructure are still in working condition. The underground infrastructure also includes a series of pumps to manage the influx of water into the mine. Shaft 5, the main production shaft for the historic Kipushi mine, is 8 m in diam- eter and 1 240 m deep. It has now been upgraded and re-commissioned. The main personnel and material winder has been upgraded and modernised to meet international industry standards and safety criteria. The Shaft 5 rock-hoisting winder is now fully operational.

Underground upgrading work is continuing on the crusher and the rock load-out facilities at the bottom of Shaft 5 and on the main haulage way on the

Regular maintenance of one of the Grifo pumps at the 1 200-metre-level pump station (photo: Ivanhoe).

May 2018  MODERN MINING  13

MINING News

The processing plant at Sissingué achieved an average gold recovery of 97 % in March this year (photo: Perseus).

Perseus Mining’s newest mine makes a strong start

1,36 g/t with an average head grade for the quarter of 1,11 g/t. Similarly, the gold recovery rate improved with an average of 97 % in March 2018 and an average of 94 % for the quarter, 6 % and 3 % respectively above forecast. Throughput rates which averaged 213 t/h in March and 192 t/h for the quarter also improved as the quarter pro- gressed and confidence grew in the plant’s performance. The capital cost of the development of the Sissingué mine and infrastructure, excluding earlyworks but including the cost of operations readiness initiatives, is fore- cast at US$106,7million, in linewith budget. Based on the updated life of mine plan for Sissingué including the nearby Fimbiasso (formerly referred to as Bélé) deposits, estimated gold production totals 358 000 ounces over the life of mine including approximately 80 000 ounces per annum for the first 3,25 years and approximately 70 000 ounces per annum over the full five-year life of mine. An updated life of mine plan reflect- ing actual technical parameters and costs incurred after several months of operation will be published in the September 2018 quarter. 

In its report on the March 2018 quarter, Perseus Mining, listed on the ASX and TSX, notes that a highlight of the reporting period was the development and commis- sioning of its Sissingué gold mine in Côte d’Ivoire ahead of time and on budget. Commercial production at the mine was declared on 1 April. Sissingué produced a total of 9 405 ounces of gold during the quarter after the

first ore was fed to the mill on 13 January 2018, the first gold poured on 26 January and mill performance tests passed on 12 February. As the quarter progressed and greater confidence was developed in the per- formance of all parts of the new plant, the grade of ore feed was progressively increased and in March the average recon- ciled gold head grade of ore processed was field using information from the data- base. BOD has independently acquired a Zimbabwe diamond database and, along with its significant networks, has expertise in diamond exploration, development and mining. “Zimbabwe is a country with excel- lent diamond potential,” comments John Teeling, Chairman of BOD. “Both Botswana Diamonds and Vast Resources have exten- sive experience in and knowledge of the country. It is opening for business and both BOD and Vast are keen to make the most of this opportunity. I look forward to provid- ing our shareholders with further updates in due course.” 

Companies team up to search for diamonds Botswana Diamonds (BOD), the AIM- and BSE-listed explorer, has announced that it has signed a Memorandum of Understanding (MOU) with Vast Resources. In terms of the MOU, the companies have agreed to exchange information derived from past exploration on areas prospective for diamonds in Zimbabwe and to form a special purpose vehicle, to be jointly owned by each company, for the purpose of devel- oping and exploiting diamond resources in Zimbabwe.

As announced in September 2008, Vast acquired, at that time, a database relat- ing to diamonds in Zimbabwe. Until 2010, Vast carried out its own exploration in the

14  MODERN MINING  May 2018

MINING News

Sanbrado gold project heads for development

“We are on track to deliver an updated mineral resource estimate this quar- ter, as well as the results of the updated Feasibility Study incorporating open-pit and underground mining. The Feasibility Study will integrate the high-grade gold from M1 South into the mine plan, which is expected to deliver transformational changes to the annual production, cost profile and life of mine.” WAF announced in April that the Burkina Faso Ministry of the Environment, Green Economy and Climate Change had approved the updated Environmental and Social Impact Assessment (ESIA) and Resettlement Action Plan (RAP) for Sanbrado. The updated ESIA reflects the change in process from heap leach to carbon- in-leach extraction and the addition of underground mining to the overall mine plan and is the penultimate stage of the permitting process with the updated min- ing licence expected in mid-2018. 

activities, in particular, commencing the underground decline into the high-grade M1 South deposit,” comments Richard Hyde, MD of West African Resources. “Accessing M1 South from the under- ground earlier will enable infill and extensional drilling to continue in a more targeted and cost-effective manner. “WAF is now well positioned to deliver an updated Feasibility Study incorporat- ing concurrent open-pit and underground mining this quarter and press on towards the development of the project later this year.” The funds generated by the place- ment will also support WAF’s on-going exploration programme. “We have a very substantial mineral endowment in the wider Sanbrado project area to explore, and, as such, we have an objective to drill at least 60 000 metres per annum to con- tinue building the mining inventory,” says Hyde. “This placement ensures we can maintain this pace of drilling.

West African Resources (WAF), listed on the ASX and TSX-V, reports it has received firm commitments to raise A$35 million through a placement of 109 375 million shares. The company owns the Sanbrado gold project in Burkina Faso. A Feasibility Study in 2017 indicated that Sanbrado could be developed as a 2 Mt/a open-pit/CIL project and produce at 150 koz per annum in its first three years and 93 koz per annum over an envisaged nine-year mine life. The study is currently being revised with the results expected shortly. WAF reports that share placement was heavily over-subscribed, and supported by existing shareholders, as well as sev- eral new large institutional investors from European, North American and Australian markets. “The demand for the placement is a strong endorsement of the quality of the Sanbrado gold project and our strat- egy to bring forward early development

May 2018  MODERN MINING  15