Modern Mining May 2019

May 2019 Vol 15 No 5 www.crown.co.za M ODERN MINING

IN THIS ISSUE…  Perseus approves Yaouré project  Cora looks for gold in West Africa  Volvo’s fuel-efficient mining machines  Country focus – mining in Botswana  Kwatani meets the digital challenge

MODERN M I N I N G

CONTENTS

MAY 2019

ARTICLES

COVER 18 Fuel efficiency the hallmark of Volvo’s mining machines GOLD 22 Sanankoro shaping up to be a standalone mine COUNTRY FOCUS: BOTSWANA 26 Botswana’s mining sector presents a mixed picture 41 Skyriders assists Botash with smokestack inspection FEATURE: CRUSHING, SCREENING AND MILLING 42 MVT brings innovation to screen and feeder design 46 Screen and panel solutions from FLSmidth’s Supercenter 48 Mill lining supplier makes inroads into export markets 51 Mobile coal crusher ups volume and quantity 52 Vibrating equipment specialist meets the digital challenge 55 EngineeredWeba chutes keep plant circuits efficient REGULARS MINING NEWS 4 Refurbished Zambian nickel mine restarts operations 5 Kangra Coal announces share allocation initiative 6 Perseus approves the development of Yaouré gold mine 8 New branding for enlarged project delivery group 9 Record quarterly production from Syama 10 Nordgold invests over US$70 million at Lefa 11 Karowe delivers another record-breaking diamond 12 Esaase trucking costs impact on Asanko’s results 13 Kubi gold project could use new mining method 14 Triton granted Mining Concession for Ancuabe 58 Orica enhances its digital blast optimisation platform 59 Motor rehabilitation keeps ‘wettest’mine pumping 60 SlurrySucker desilts process water tank at diamond mine 61 All-in-one wet processing plant unveiled at bauma 62 MineWare boosts loader performance 63 Multotec trommel screen for Namakwa Sands 64 Flexible screw conveyor from Flexicon 64 Supply chain excellence at upgraded Kitwe facility 15 Orion offers mining familiarisation courses 17 Walkabout initiates ‘early-start’programme PRODUCT NEWS

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

Darryl James Circulation Brenda Grossmann Publisher Karen Grant

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Deputy Publisher Wilhelm du Plessis Printed by: Shumani Mills Communications

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

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Publisher of the Year 2018 (Trade Publications)

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Cover The best-selling Volvo A40G articulated hauler can handle the toughest underfoot conditions. See page 18 for a story on Volvo’s mining machines, available from Babcock, the Southern African dealer for Volvo Construction Equipment.

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Average circulation (January–March 2019) 5339

May 2019  MODERN MINING  1

COMMENT

Namibia’s mining industry shows surprising resilience

E lsewhere in this issue – in an article on the mining scene in Botswana – I mention that Debswana, which owns and operates most of Botswa- na’s diamond mines, is turning 50 this year. Coincidentally, another organisation that is currently marking its 50th birthday is the Chamber of Mines of Namibia, originally founded in May 1969 as the Association for Mining Companies of South West Africa with just a handful of members. Today the Chamber – which adopted its present name in 1990 – has just over 100 members in all classes, although only a small proportion of these, of course, would be producing mining companies. Earlier this month (May), the Chamber spon- sored, as it always does, the annual Mining Expo and Conference in Windhoek and it also released its annual review – the ‘bible’ for any- one interested in Namibian mining – for 2018. According to the review (and somewhat surprisingly, given the weak state of Namibia’s economy at the moment), 2018 was a strong year for the Namibian mining industry. It recorded a growth of 22 % with total turn- over amounting to N$33,54 billion. Royalties paid during the year amounted to N$2,06 bil- lion while the figure for total taxes paid was N$3,98 billion. The industry employed just over 9 000 people on a permanent basis, as well as 498 temporary employees and 6 681 contractors. Total contribution to GDP was 14 % (compared to 11,9 % in 2017). In his foreword to the review, the Chamber’s CEO, Veston Malango, writes: “In terms of its contribution to Gross Domestic Product, min- ing was the strongest performing sector and one of the few to post a positive growth rate, of 22 %, in 2018. This helped to buoy the depressed national economy, which recorded a contraction of 0,1 % according to prelimi- nary figures in the National Accounts. At the forefront of this growth was a boost in uranium output from ramping up activities at Swakop Uranium’s Husab mine, as well as increased output of diamonds, a mineral which is assigned the largest weighting compared to others in the National Accounts.” Swakop Uranium’s production of yellow cake during 2018 totalled 3 571 tonnes, a very significant increase from the 1 345 tonnes recorded in 2017. According to the review, con- struction of the mine was completed during the year and it is now on its way to becoming one of the largest uranium mines in the world. As regards diamonds, Namibia’s output all

comes from Namdeb Diamond Corporation or Debmarine Namibia, which are sister com- panies. During the year, Namdeb produced 571 847 carats, an increase of 34 % on the 2017 figure, while Debmarine produced 1,44 Mct, achieving its target. An interesting feature of the review is that it gives some details of companies and/or mines that one rarely hears from. For example, it has a couple of pages devoted to the Navachab gold mine near Karibib which, until Otjikoto opened several years back, was Namibia’s sole gold producer. Once an AngloGold Ashanti operation but now majority owned by QKR Namibia Mineral Holdings, it produced 1 427 kg (around 46 000 oz) of gold in 2018. A highlight of the year was the successful development of satellite pits to mine small to high-grade ores (with the mining in the hands of an empowered contractor). Similarly, there is a great deal of information on Namib Lead & Zinc Mining (90 %-owned by North River Resources), which is redevel- oping the Namib lead and zinc mine which was previously operational from 1968 to 1991. This project has gone off the radar in the last 18 months or so but the review reveals that the official ground-breaking on site was held in June last year and that all the main site infra- structure was complete by the end of the year. First production of lead and zinc concentrate is expected in the current quarter. Looking ahead, what’s the forecast for mining in Namibia? To answer this question, I can do no better than quote the views of Zebra Kasete, who is MD of Dundee Precious Metals Tsumeb and also President of the Chamber. In his ‘Letter from the President’ in the annual review, he says that Namibia’s national economy is in “dire straits” (his exact words) and officially in a recession. He points out that while mining performed positively during 2018, the longer- term outlook appears less optimistic owing to the fact that a number of prominent mines will be reaching the end of their lives in the next two to ten years. “The primary focus of the Chamber of Mines going forward will thus be on how to boost exploration activity in Namibia and enable the discovery of new mineral deposits which may lead to the opening of new mines,” he states. Readers wanting to get a copy of the review, which runs to about 85 pages, can download it from the Chamber’s website at www.cham- berofmines.org.na . Arthur Tassell

“The primary focus of the Chamber of Mines going forward will thus be on how to boost exploration activity in Namibia and enable the discovery of new mineral deposits which may lead to the opening of new mines.”

May 2019  MODERN MINING  3

MINING News

The Munali processing plant, which incorporates Dense Media Separation (DMS) technology and differential flotation (photo: CNM).

Refurbished Zambian nickel mine restarts operations

revising the metallurgical process with the introduction of Dense Media Separation (DMS) technology and differential flotation. Munali comprises an undergroundmin- ing operation extracting nickel sulphide ore, DMS technology and a standard flo- tation circuit to produce a 10-12 % nickel concentrate. The mine expects to ramp up production to steady-state levels of 60 000 t/a by Q4-2019. The mine is man- aged by an all-Zambian management team and currently has a workforce of 380 people, of whom 10 % are women. It is reported to be the first mine in Africa to use Epiroc’s Minetruck MT54 high-capacity underground truck, with a load capacity of 54 tonnes. These trucks are designed for fast, productive haulage in substantial mining and construction operations where navigation through nar- rower tunnels is required. “It is with great pride that we celebrate the official opening of Zambia’s newest nickel mine, the Munali nickel mine. Today marks a new beginning for the mine with a bright future ahead, backed by an experi- enced investor, Consolidated Nickel Mines,” said Matthew Banda, General Manager of Munali and Mabiza Resources, at the opening. “We are committed to being a responsible miner and ensuring the socio- economic benefits created by the mine are

Mabiza Resources and its major investor, Consolidated Nickel Mines Ltd (CNM), have announced the resumption of mining oper- ations at the Munali nickel mine, located in southern Zambia. CNN is a privately-owned mining and development company that invests in African base metals projects. The refurbished mine was offi- cially opened on 16 April by Edgar Lungu, President of Zambia, at a cer- emony attended by key dignitaries from

Government, including the Minister of Mines, Richard Musukwa, and the Minister of Health, Dr Chitalu Chilufya. Since CNM became the new operator of Munali in 2014, the experienced team has invested over U$50 million to restart the mine. CNM has undertaken a com- plete reassessment of the project. All key technical aspects have been reviewed and re-engineered, from re-interpreting the ore- body and changing the mining method to

An Epiroc Boomer 282 face drilling rig in operation at Munali (photo: CNM).

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MINING News

lasting and shared with our local commu- nities and host government.” Simon Purkiss, CEO of CNM, said the reopening of Munali was the culmination of nearly four years of hard work by the team and had involved a full reassessment of the project to de-risk it both technically and economically. “I’d like to thank all the stakeholders involved – our employees and contractors, local communities, busi- ness partners, regulatory authorities and Government – who have contributed to our plan to re-start operations at the Munali nickel mine. This is a tremendous accomplishment,” he said. CNM acquired full operational control of Munali and the adjacent exploration area in 2015 through a 10-year lease and royalty agreement with Jinchuan, with an option to extend for a further 10 years. Located 75 km south of Lusaka, the mine has excellent transport and com- munication links in a well-known mining jurisdiction. In excess of U$180 million was spent by previous owners on developingMunali and bringing the mine into production in 2008. However, for a number of reasons, such as the use of the wrong geological model and hence the wrong mining method being employed, this led to uneconomic operations and, when the nickel price fell in 2011, the mine was placed on care and maintenance. The Munali mine has been recognised by the Zambian Government as “the lead- ing mining company for CSR in Zambia”for its innovative approach to corporate social responsibility (CSR). A Resettlement Action Plan (RAP) has been successfully completed, with US$7,5 million spent on building new homes for the households impacted by the mine’s operations, as well as commu- nity infrastructure, including a new school, a new clinic, community water boreholes, a community dam and two bridges. Alongside Munali’s CSR programmes, CNM has established the Musangu Foundation, providing seed money for the first year of business. The Musangu Foundation aims to create livelihoods in rural Africa in collaboration with the mining sector through a variety of proj- ects. The projects reportedly move away from the typical ‘donor’ style, and instead embed business principles, generating sustainability and longevity. 

Kangra Coal announces share allocation initiative Kangra Coal reports it made history on 2 May 2019 when it hosted a cel- ebration to announce plans to allocate free-carry (unencumbered) shares to workers and local communities for the first time since the mine was estab- lished in 1957. concluded, but we thought we should make our intentions firmly clear right from the start so that you can assess us against our undertaking,” he said. Speakers at the ceremony lauded the initiative, saying it laid the foundation for the redefinition of the relationship between workers, communities and the new mine owners.

Workers were given a day off to be part of the celebration with the mine managers and local community mem- bers. This was an initiative of Menar, the investment company that purchased Kangra through its subsidiary, Canyon Coal, in September 2018. Kangra is the first mine to allocate shares to workers and communities sinceMineral Resources Minister Gwede Mantashe issued Mining Charter III. The Charter requires mining compa- nies to allocate shares to workers and communities. Billed as the‘Kangra New Beginning’, the event was held near themine, which is located in the Mkhondo municipal- ity. The municipal leaders, traditional authority leaders and other community leaders joined the celebration. Workers and community mem- bers ululated when Menar Managing Director Vuslat Bayoglu presented symbolic certificates to signify the 5 % allocation to each. The shares will be held under separate trusts. “In the next few months, the legal process to give effect to the allocation will be

Menar Chairman Mpumelelo Mkhabela said the share allocation to employees and communities was different to the usual employee share- ownership schemes where shares are granted for a limited period. “This is a permanent arrangement. For as long as you work at Kangra, you will own shares. If the company makes profits and dividends are declared, you will also benefit from dividends that will accrue to the employee trust,” Mkhabela explained. Canyon Director Dr Sakhile Ngcobo provided a broad overview of Kangra’s operations, explaining that the com- pany is involved in the mining and processing of thermal coal through the operation of an underground mine, along with several opencast pits, located in the Mpumalanga coalfields. Kangra currently produces about 2 million tons a year of saleable coal with the majority of its high volatile coal sold on the export market, and the rest sold to independent users. 

Menar MD Vuslat Bayoglu (on the left) at the ‘Kangra New Beginning’ celebration.

May 2019  MODERN MINING  5

MINING News

The Yaouré pit mined by Cluff Gold, which later became Amara Mining. The Yaouré project was acquired by Perseus in 2016 as part of its acquisition of Amara (photo: Perseus Mining). Perseus approves the development of Yaouré gold mine

development team, acting in anticipation of an imminent positive development decision, have worked towards com- mencement of full-scale development. During this period, detailed engineering has been progressed and supply contracts, including a contract with Outotec for the manufacture and supply of the SAG and ball mills, have been conditionally awarded to suppliers of a large proportion of the plant and equipment required for the pro- cessing facility. These orders will now be confirmed, fixing approximately 50 % of the capital budget and enabling development to proceed on schedule. Under the terms of Lycopodium’s contract, first gold is due to be poured at Yaouré by 23 January 2021, although a‘stretch target’involving an ear- lier gold pour in December 2020 is being pursued. Another activity on the critical path for development is payment of all outstanding crop, land and sacred site compensation. This is well advanced with crop compen- sation paid in full, and approximately 80 % of landowners paid compensation at rates specified by the local Prefect’s decree. Negotiation of compensation rates for sacred sites will be finalised shortly once land compensation payments are complete. Payment of compensation to

Perseus Mining, listed on the ASX and TSX, has announced that its board of directors has formally approved construction of the company’s third gold mine, the Yaouré gold mine in Côte d’Ivoire. With a forecast capital cost of US$265 million, Yaouré – with an average annual production of 215 000 oz in its first five years of opera- tion – is expected to become a large scale, low-cost gold mining operation that will form an important part of Perseus’s asset portfolio for many years to come. The decision to develop Yaouré fol- lows the recent granting of an Exploitation Permit by the Government of Côte d’Ivoire to Perseus’s Ivorian subsidiary, Perseus Yaouré SARL, and confirmation of Perseus’s development funding plan that includes deploying, in part, a US$150 million revolving credit facility, US$121 million of existing cash and bullion, and strong future cashflows from Perseus’s Edikan and Sissingué gold mines, located in Ghana and Côte d’Ivoire respectively. Perseus says the decision to proceed with development will take immediate effect, opening the way for the execu- tion of the engineering and supply contracts between Perseus and engineer- ing company Lycopodium. Perseus has collaborated successfully with Lycopodium in the past, most notably on the ahead-of-

time, on-budget development of Perseus’s Sissingué gold mine that was commis- sioned in early 2018. “When Perseus acquired Amara Mining plc in April 2016, our primary objective was to bring Yaouré into pro- duction as soon as practical,” comments Perseus’s Chief Executive Officer and MD, Jeff Quartermaine. “With the decision announced today (6 May), we have moved one step closer to achieving this goal and, in doing so, we are firmly placed on the path to achieving our stated aim of pro- ducing more than 500 000 ounces of gold at an all-in site cost of less than US$850 per ounce frommultiple mines in several juris- dictions in West Africa. “A large amount of effort has gone into preparation and planning of the develop- ment of Yaouré and with the experience that our team developed from the suc- cessful execution of the Sissingué mine development plan, we are confident that Yaouré will also be developed on time and on budget and in the process further establish Perseus’s reputation as a reliable and capable developer and operator of gold mines in West Africa.” A Notice of Award for the engineer- ing and supply contracts was issued to Lycopodium on 10 January 2019 and, since then, Lycopodium and Perseus’s in-house

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MINING News

Panoramic view of the Yaouré site. As can be seen here, the property lies close to the southern shore of man-made Lake Kossou. The Kossou hydroelectric power station is situated 6 km east of the project (photo: Perseus Mining).

remain open along strike and at depth, Perseus prepared a scoping study for a potential underground mining opera- tion which indicated that inferred mineral resources appear amenable to extraction using mechanised underground room- and-pillar mining methods. Underground access from Yaouré’s CMA open pit com- bined with the selected mining method significantly reduces the capital develop- ment requirements. 

posed CMA open pit using underground methods. In November 2018, Perseus announced that a preliminary inferredmineral resource had been estimated for a potential under- ground mining operation at Yaouré (to supplement the CMA open-pit operation) that totalled 3,0 Mt, grading 6,2 g/t gold and containing 595 000 ounces of gold. Noting that mineral resources for a potential underground mining operation

landowners and farmers is required before clearing and preparation of the sites for the processing facility and the tailings dam can commence. Tendering of civil work for site prepa- ration is expected to be complete by the end of May, enabling work to advance before the onset of the peak of the wet season that typically occurs in August and September. A specially formed committee compris- ing representatives of the departments of Mining, Finance, Budget and Environment will represent the Ivorian government in negotiations with Perseus for a Mining Convention to establish a stable fis- cal and social environment for the project. Finalisation and execution of the Convention is expected in the September 2019 quarter. Concurrently with the commencement of development activities on the Yaouré site, Perseus is also planning to reacti- vate exploration activities adjacent to the proposed mine site. A high priority will be placed on the advancement of work aimed at delineating further mineralisation that can be mined from below the pro-

Test work underway on Haib ore sample Deep-South Resources Inc, listed on the TSX‑V, reports that Mintek has commenced its metallurgical test work on stockpilemate- rial from the Haib copper project in southern Namibia. The test work programme is man- aged by METS Engineering of Australia.

produce data for an eventual commercial pilot heap leach campaign. Since 2003 heap leaching technologies have evolved substantially. Codelco has successfully used microbially-assisted heap leaching of copper sulphide ore contain- ing chalcopyrite since 2014 at its Radomiro Tomic mine in Chile. Other operations in Chile have also piloted microbially-assisted heap leaching of chalcopyrite ores. The programme will also focus on testing the amenability of High Pressure Grinding Rolls (HPGRs) and test the acid consump- tion of the heap leaching process. 

Deep-South has provided Mintek with about 1,8 tons of ore sample from a large stockpile that was extracted during a pre- vious sampling campaign. The sample contains chalcopyrite as the main copper mineral. The aim of the programme is to test the amenability of the ore to microbially- assisted heap leaching. The test work will

May 2019  MODERN MINING  7

MINING News

New branding for enlarged project delivery group

viding solutions for each step of the mining value chain. TheWorley MM&M division for Africa will be headed up by Robert Hull, who had been responsi- ble for the management of all projects delivered locally and globally from WorleyParsons RSA. Hull’s counterpart, Ed Hanbidge, will head up the EC&S (Energy, Chemicals & Services) division for southern and eastern Africa. Hanbidge was previ- ously MD of Jacobs Matasis, the South African arm of Jacobs ECR. In South Africa since 2010, Jacobs Matasis has been a significant contributor of exper- tise to the region and a major service provider of engineering, technical, pro- fessional and construction services to the refining, oil and gas, and chemicals industries. The company is known for its long-standing customer relation- ships, as well as project portfolio and alliance experience. “The presence of these two com- plementary divisions in South Africa – one focusing on minerals and min- ing, the other one on energy, oil and gas – will create a stronger, united entity in many respects, through combined ser- vices, delivery programmes, resources and expertise,” says Hanbidge. “As a unified, integrated organisation, we will be able to serve our clients bet- ter, not just in one particular area, but in a number of areas. Our synergies of execut- ing work will be stronger. Our clients won’t have to deal with multiple companies, but rather with one company that can now provide much more in terms of service, which in turn will also deliver cost benefits to our customers.” Hull concurs. “As one of the biggest one-stop-shops in Africa for professional services in energy, chemicals and resources, our customers can expect greater efficien- cies, more services, and a greater diversity of skills.” He assures that customers will be working with the same people under an integrated, unified banner. “We won’t be changing our DNA of working – our relationship-based way of working will continue,” affirms Hanbidge. “Business will continue as usual, but services will be delivered in a more cost-effective way, while bringing our cus- tomers the best of both worlds.” 

Pictured at a function at the Worley premises in Johannesburg held to introduce the new combined Worley group are (from left): Krish Iyer, President Middle East Africa; Francois Bosch, Business Development (BD) Sales Manager, East Africa; Denver Dreyer, Senior Vice President Mining Minerals and Metals (MM&M), EMEA; Ian Davies, Senior Vice President, BD & Growth MEA; Ryan Froude, Operations Manager, East Africa; Robert Hull, Vice President, MM&M, Africa; and Ed Hanbidge, Vice President, EC&S, Southern and Eastern Africa (photo: Arthur Tassell).

ity and capability. It’s about opportunity,” comments Andrew Wood, CEO of Worley. “The opportunity to become the partner of choice for our customers, the employer of choice for our people, and to deliver enhanced returns for our shareholders.” Wood adds that the integration of the two organisations will create a global com- pany of nearly 60 000 people across 50+ countries, fully committed to helping cus- tomers meet the world’s changing energy, chemicals and resources needs. The combined force will offer full life cycle ser- vices for customers across hydrocarbons, chemicals, and minerals and metals, with extended global delivery centre capabili- ties, supported by world-class people and systems. Outgoing CEO of WorleyParsons RSA Denver Dreyer, who effective immedi- ately is taking up the role of Senior Vice President Mining, Minerals & Metals (MM&M) for Europe, Middle East and Africa (EMEA) for Worley, comments that the merger will increase the organisation’s global footprint in the minerals, metals and mining sector. South Africa will con- tinue to be a Global Centre of Excellence in mining and minerals processing, pro-

Following the announcement in October 2018 of WorleyParsons’ binding offer for Jacobs’ Energy, Chemicals and Resources (ECR) line of business, the combined new entity has come together under a new brand – Worley – as of 29 April 2019. While financially an acquisition, opera- tionally the transaction is a combination of two highly complementary organisations that creates a pre-eminent global provider of professional project and asset services in energy, chemicals and resources. As one of the world’s largest project delivery organisations, Worley has been a leading provider of professional services to the resources and energy sectors, and the complex process industries, covering the full project lifecycle in the hydrocarbons, power, minerals and metals, chemicals, and infrastructure sectors. This now includes key strengths from the heritage Jacobs ECR business of com- plex petrochemical and chemical projects, maintenance, modifications and opera- tions (MMO) for hydrocarbons projects, including onshore and offshore production facilities and integrated project delivery, construction and technical services. “This merger is about more than capac-

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MINING News

Record quarterly gold production from Syama

ASX-listed Resolute Mining produced 95 105 oz of gold at an AISC of US$740/oz in the March 2019 quarter, with 84 552 oz coming from its Syama mine in Mali and the balance from Ravenswood in Australia. In its report on the quarter, the company says that its new underground operation at Syama (Syama Underground) is continuing to ramp up with commercial production targeted for the September 2019 quarter. Syama is located in the south of Mali, approximately 30 km from the Côte d’Ivoire border and 300 km south-east of the capi- tal, Bamako. It is a large-scale operation which comprises Syama Underground and the Tabakoroni open-pit mine which provide ore to two separate processing circuits: a 2,4 Mt/a sulphide processing cir- cuit and a 1,5 Mt/a oxide processing circuit. Syama quarterly production was up more than 50 % on the December 2018 quarter comprising 71 186 oz from Syama Oxide operations and 13 366 oz from Syama Sulphide operations. Following commencement of sublevel caving in December 2018, the ramp-up of Syama Underground continued during the March 2019 quarter subject to a decision to prioritise infrastructure, development, and the automation implementation pro- gramme. Substantial progress was made in the commissioning of the automated fleet with the commencement of autonomous production drilling early in the quarter. The permanent primary ventilation system was installed and commissioned which has resulted in reduced re-entry times following blasts, while underground pumping systems, and a number of other key items of underground infrastructure, were substantially completed. The focus

Syama’s Automation Control Room is now complete (photo: Resolute).

Syama Underground mine. The permanent primary ventilation system and critical pumping infrastructure were completed during the quarter. We also commenced autonomous production drilling as part of the ongoing automation programme. “Our Syama team remains focused on the optimisation and commissioning of the most advanced underground mining automation system in the world at the Syama Underground mine. Underground ore production will continue to ramp up over the coming quarters with commercial production targeted for the September 2019 quarter. “Syama is becoming the robust, high production, low cost gold complex we have envisaged. Syama will be a power- house of gold production for Resolute for many years to come and the commis- sioning work undertaken at the Syama Underground mine during the quarter provides an important foundation for future success.” 

on development has resulted in a more modest increase in underground ore pro- duction than previously planned. Construction of the Syama Automation Control Room is now complete and com- missioning of the automation control systems is well advanced. As implemen- tation of the automated fleet progresses, operation of underground mobile equip- ment will be increasingly undertaken from the Control Room. “The quarterly production and costs from Syama is very pleasing and repre- sents a site production record of 84 552 ounces,” comments Resolute’s MD and CEO, John Welborn. “The performance of Tabakoroni was exceptional with high- grade ore and strong recoveries enabling us to also achieve record quarterly pro- duction of 71 186 ounces from the Syama oxide circuit. This strong performance supported our decision to prioritise infrastructure, development and the auto- mation implementation programme at our

May 2019  MODERN MINING  9

MINING News

Nordgold invests over US$70 million at Lefa

be complete before the end of the year. Lefa increased ore mined volumes in 2018, focusing its mining activities on delivering ore from four pits, as well as on waste stripping at two pits to ensure delivery of quality ore in 2019. Road access has been completed to the recently dis- covered Kassa mining area, which will serve as a new satel- lite pit. Two major construction programmes were completed during the year. The Lero Karta river diversion was relocated to its final position and various upgrade design specifications were undertaken. The mine continued to operate success- fully throughout a heavy rain season in 2018. Upgrades to the tailings dam embankments were completed.

One of the pits at the Lefa gold mine in Guinea (photo: Nordgold).

There has also been investment in upgrading the mining fleet. As part of the mining fleet replacement programme, a new excavator and five new trucks were commissioned in Q4 2018, with three more trucks delivered in Q1 2019. In 2018, Lefa’s exploration activities included greenfield discovery drilling, resource conversion drilling and deep underground potential drilling. Four early- stage exploration satellite discoveries were made during the year. Additional investment was made into upgrading the Lefa processing facilities in 2018. The processing plant throughput was increased by 2 % by recommission- ing of the pebble crusher with significant engineering modifications to the mill cir- cuit. The processing plant’s gold recovery section also saw significant improvements, including the installation of a separate reagents wash column and elution col- umn, 800 electrowinning cells, a cascade barring furnace, and the replacement of the pre-soak tank and elution heaters. The Tailings Storage Facility (TSF) 1 extension was completed in 2018 with the additional operating capacity expected to last until 2021. The TSF 2 feasibility study has commenced and is scheduled for com- pletion in 2020. 

Reviewing activities during 2018 at its Lefa gold mine in Guinea, Nord Gold SE (Nordgold) reports it completed a sig- nificant investment programme into the operation during the year. Capital expenditures designed to both improve efficiencies at Lefa while also extending its life of mine increased to over US$70 mil- lion from US$48 million in 2017. Nordgold acquired the Lefa mine in 2010. Since acquiring the mine, the com- pany has invested almost US$1 billion into the country thereby maintaining its position as one of Guinea’s largest gold producers. From 2011 to 2018, Nordgold paid approximately US$180 million in corporate taxes and royalties. Lefa pro- vides direct employment for almost 1 200 employees, as well as over 800 indirect jobs. The mine has also invested signifi- cantly to improve the provision of local health and education services, including support in the fight against Ebola, as well as the creation of new medical facilities and some 40 schools. In 2019, Nordgold says it plans to increase its extensive investment in Guinea by 15 % year-on-year to approximately US$80 million. “We remain committed to Guinea and to driving performance at the Lefa mine.

This intensive investment programme will put us in the best position to maximise the value of this major asset. Alongside the investment into equipment and facilities, we will also maintain our strong support of the local communities. The investment into staff development programmes, but also education and health facilities, will bring major benefits to the area. Lefa is an important asset, and Nordgold will con- tinue to invest in exploration to extend its life of mine and to sustain the current pro- duction level,” says Alejandro Rodrigues, Acting GM of Lefa. Nordgold has made further improve- ments to safety and working conditions at Lefa, including the purchase of a second fire engine and additional state-of-the-art fire-fighting equipment. Nordgold has continued to invest in employee development. In addition to wage rises for all workers, the company has provided training programmes to over 600 employees, half of Lefa’s workforce. There has also been an upgrade to both office and on-site leisure facilities. Lefa will extend its employee devel- opment programme, offering vocational training courses to over 1 000 employees in 2019. Construction of a leisure and fit- ness facility is on-going and expected to

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MINING News

Karowe delivers another record-breaking diamond

Canada’s Lucara Diamond Corp has announced the recovery of a 1 758-carat diamond from its 100 %-owned Karowe diamondmine located in the Orapa Kimberlite Field in Botswana. One of the largest diamonds in recorded history, the largest diamond recovered in Botswana, and the largest diamond to be mined at Karowe to date, the unbroken stone was recovered through Lucara’s state-of-the-art XRT circuit, commissioned in April 2015, which utilises TOMRA sensor technology. Weighing close to 352 grams and measuring 83 mm x 62 mm x 46 mm, the diamond has been characterised as near gem of variable quality, including domains of high-quality white gem. Since the XRT circuit was commisioned, 12 dia- monds in excess of 300 carats have been recovered at Karowe, including two greater than 1 000 carats, from a total production of approximately 1,4 million carats. Of the twelve +300 carat diamonds recovered, 50 % were categorised as gem quality with 11 sold to date gener- ating revenue in excess of US$158 million. Eira Thomas, Lucara’s CEO, commented: “Lucara’s technologically advanced, XRT diamond recovery cir- cuit has once again delivered historic results. Karowe has now produced two diamonds greater than 1 000 carats in just four years, affirming the coarse nature of

the resource and the likelihood of recovering additional, large, high quality diamonds in the future, particularly as we mine deeper in the orebody and gain access to the geologically favour- able EM/PK(S) unit, the source of both of our record breaking, +1 000 carat diamonds.” 

TOMRA XRT machines at Karowe (photo: Lucara).

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MINING News

Esaase trucking costs impact on Asanko’s results

nearing completion and, as the pushback comes to a conclusion in Q3, we forecast AISC to decline and maintain our full-year AISC guidance of US$1 040 – 1 060/oz. “After a thorough review of our current operations in my first month as CEO, I can see that we are in the final stages of a two- year capital investment programme, which included a mill expansion from 3 Mt/a to 5 Mt/a, a major pushback of the Nkran pit and the initial development of Esaase. “We are now well positioned to start harvesting the benefits of these major investments as we shift our focus to maxi- mising cashflow generation from the AGM over the next 18-24 months while we work with our JV partner on formulating the long-term development plan for Esaase and optimal life of mine plan for the AGM complex.” No lost time injuries (LTIs) were reported during the quarter, and AGM has now achieved over 24 months and more than 12,3 million employee hours worked with- out a single LTI. AGM achieved steady state levels of production at Esaase in February 2019, with ore mining rates averaging 147 500 tonnes per month over February and March at an average grade of 1,3 g/t. Trucking costs for the quarter were ele- vated as contractors at Esaase transitioned from road construction activities to ore haulage activities. With commercial con- tracts now in place, ore haulage costs are expected to reduce to planned levels of US$7,00-$7,50 per tonne hauled.  Newmont Goldcorp’s Africa production is expected to be 1,1 million ounces in 2019 with a full year of production from Subika Underground, higher grades fromthe Subika open pit and improved mill throughput in the second half of the year with the Ahafo Mill Expansion. Production is expected to be 930 000 ounces in 2020 with lower grades at Akyem and the Subika open pit which are partially offset by higher underground grades at Ahafo and a full year of production from the Ahafo Mill Expansion. In 2021, production is expected to be 1 million ounces as Akyem reaches higher grades near the bottom of the pit. The com- pany continues to advance the Ahafo North project and other prospective surface and underground opportunities. 

The Esaase site, where mining activities are now in full swing (photo: Asanko Gold).

Reporting on its activities during Q1-2019, Asanko Gold Inc, listed on the TSX and NYSE American, says that its Asanko Gold Mine (AGM) in Ghana is on track to meet 2019 guidance of 225 000 to 245 000 ounces. AGM – which is a 50:50 joint ven- ture with Gold Fields, which is managed and operated by Asanko – recorded a net loss after tax of US$14,1 million for the quarter including a loss of US$13,3 mil- lion associated with adjustments to the carrying value of ore stockpile inventory. The all-in sustaining cost (AISC) over the reporting period was US$1 123/oz.

Commenting on the Q1-2019 perfor- mance, Greg McCunn, Chief Executive Officer, said: “The Asanko Gold Mine deliv- ered a solid operational performance producing 60 425 ounces, in line with our guidance for 2019. Costs for the quarter were impacted by higher trucking costs as we initiated mining operations at the large scale Esaase deposit. Commercial truck- ing contracts are now in place and we expect oxide ore from Esaase to represent 25-30 % of the mill feed on an ongoing basis. In addition, we continued with the waste stripping of Cut 2 at Nkran. This is The Ahafo Mill Expansion, together with the company’s recently completed Subika Underground project, will improve Ahafo’s production to between 550 000 and 650 000 ounces per year for the first five full years of production (2020 to 2024). During this period, Ahafo’s CAS (costs applicable to sales) is expected to be between U$650 and U$750 per ounce and AISC is expected to be between US$800 and US$900 per ounce. This represents an average produc- tion improvement of between 200 000 and 300 000 ounces at a CAS improvement of between US$150 and US$250 per ounce and an AISC improvement of U$250 to U$350 per ounce, compared to 2016 actuals.

Ahafo Mill Expansion to start producing in Q4-2019 Reporting on its assets in Ghana in its first quarter 2019 results, Newmont Goldcorp Corporation, listed on the NYSE and TSX, says that both first production and com- mercial production from the Ahafo Mill Expansion are expected in the fourth quar- ter of 2019.

The expansion is expected to increase average annual gold production by between 75 000 and 100 000 ounces per year for the first five years beginning in 2020. Capital costs for the project are estimated between US$140 and US$180 million with expenditure of approximately US$35 to U$45 million in 2019. The project has an IRR of more than 20 %.

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MINING News

Kubi gold project could use new mining method enlarging the pilot holes to predetermined sizes to recover the ore.

requirements has been initiated in order to fully reflect the Group’s current emphasis on its profitable recovery operations. Klingenberg joined Goldplat in March 2015 and in June 2017 was appointed as the Group’s Chief Financial Officer. During this period, he has been involved in all aspects of the Group’s management.  According to Anaconda, the SMD tech- nology is a ‘disruptor’ in that it reduces the cost to extract ore by 50 % over con- ventional UG narrow mining techniques; places the operator in a safe location on the surface; can access areas not open to conventional mining; reduces the environ- mental footprint; and bypasses the crushing and grinding circuits by moving the ±2 mm drill cuttings in a slurry direct to the mill.  hole-openers can be used to drill along the pilot hole’s trajectory up to 2 m.

Asante Gold Corporation says that that a newmining technique, Sustainable Mining by Drilling (SMD), is currently under review by the company for future application at its Kubi gold project in Ghana. SMD is a two-stage drilling method that enables direct mining of narrow deposits. The technology is being devel- oped and commercialised by Anaconda Mining Inc, in collaboration with Memorial University of Newfoundland, Canada, and utilises technology proven in other indus- tries. Anaconda’s SMD technology was recently placed second in the Goldcorp Inc #DisruptMining challenge held at the PDAC in Toronto in March this year. SMD is a complete surface min- ing option with involves a drilling rig being used as the main surface piece of equipment in conjunction with several field-proven down hole technologies. The mining process is divided into two campaigns: drilling the pilot holes and accurately mapping the vein and then

Using an inclined mast drilling rig, an inclined pilot hole is drilled along the cen- tre line of the vein (equidistant between the hangingwall and foot wall) with a direc- tional drilling system. Steering the pilot holes live with a survey tool determines the current orientation and allows refinement of the 3D model of the vein used to plan the pilot hole enlargement. Once the pilot hole has been drilled, progressively larger

Change at the top at gold producer Goldplat, the AIM-listed gold producer with gold recovery operations in South Africa and Ghana as well as a gold mine in Kenya, has announced that Gerard Kisbey-Green has stepped down as CEO and that Werner Klingenberg has been appointed as the interim CEO with immediate effect. A full review of the Group’s senior management

MINING News

Triton granted Mining Concession for Ancuabe

Triton Minerals, listed on the ASX, reports that Mozambique’s Minister of Energy and Natural Resources, Ernesto Max Elias Tonela, has granted the Mining Concession for the company’s Ancuabe graphite proj- ect in Cabo Delgado Province in Northern Mozambique. Ministerial approval was the final step

in the Mining Concession application pro- cess, withTriton now having secured all the necessary regulatory approvals to progress the development of Ancuabe. The grant of the Mining Concession is also a critical milestone in terms of finalis- ing funding negotiations for the project. It will allow Triton to accelerate discussions

with sponsor banks of the company’s nominated engineering, procurement and construction (EPC) contractor. “The board is extremely pleased to receive final government approval for Ancuabe,” comments Triton’s MD, Peter Canterbury. “Mozambique has a long and proud history of mining and both regional and national government bodies have been extremely supportive during the permitting process, further reinforcing that the country is a premier location for min- ing investment in East Africa. “Triton has now signed binding off- take agreements for approximately 53 % of annual production from Ancuabe, has executed an EPC contract with MCC International, has been granted its Mining Concession which is the final approval required to commence produc- tion at Ancuabe, as well as having signed a project investment, financing and off- take MoU with Qingdao Jinhui Graphite Co Ltd and various other MoUs for off- take, graphite product marketing and off-take. “Importantly, the granting of the Mining Concession is a critical element of the financing process, that is progress- ing well. An announcement in relation to financing is expected in the near future.” Upon completion of the funding package for Ancuabe, Triton anticipates commencing design work, mobilisation to site and construction immediately. The Ancuabe Definitive Feasibility Study (DFS), published in December 2017, demonstrated that the project is techni- cally robust with strong economics. The DFS details an open-pit mine and process- ing plant able to produce approximately 60 000 t/a of graphite concentrate over the evaluation period of 27 years. 

Layout of the proposed Ancuabe mine. Two deposits, T12 and T16, will be exploited.

New Chief Executive Officer for Golden Star Canada’s Golden Star Resources (GSR), which owns and operates the Wassa and Prestea gold mines in Ghana, has appointed Andrew Wray as President and Chief Executive Officer, effective May 1, 2019, in succession to Sam Coetzer. Wray was previ- ously CEO of La Mancha.

Baker, Chairman of the GSR board. “Over the last six years, Sam has done an exceptional job in transitioning Golden Star into an underground mining company, attracting new shareholders, and improv- ing its financial position. On behalf of the entire board of directors, I wish to sincerely thank Sam for his commitment and dedica- tion and wish him all the best in his future endeavours.” Prior to joining La Mancha, Wray worked for Acacia Mining for over seven years, where he was Chief Financial Officer. Formerly, he spent close to 15 years with JPMorgan Cazenove. 

“After a thorough process, the Board of Directors has determined that Andrew has the ideal attributes to lead Golden Star. He combines significant experience in the sec- tor with a real focus on creating value for shareholders, together with the leadership skills to take the company through the next phase of its development,” comments Tim

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MINING News

Orion offers mining familiarisation courses

In line with its firm commitment to ensuring that local com- munities benefit from its ventures, Orion Minerals reports it has commissioned introductory mining familiarisation short courses within the Siyathemba Municipality in South Africa’s Northern Cape Province. The programme is aimed at raising public awareness of the mining industry and the opportunities the industry creates, ahead of the planned development by Orion of the Prieska zinc-copper project. The courses, on offer to members of the public, free-of-charge, have been running since April 2019 and will continue until June 2019. Participants are being provided with an overview of minerals mined in South Africa; an insight into howmining operations are conducted; and an understanding of the career options available within the min- ing industry. They are also given the opportunity to visit the Prieska project, where they get to witness first-hand the early phases of a mine development project. Orion is in the advanced stages of completing a bankable feasibil- ity study (BFS) on the Prieska project, located within the Siyathemba Municipal area. A recently completed scoping study indicates that the planned Prieska operations could be in production by 2022, process- ing 2,4 Mt/a of run-of-mine material and having a skilled workforce numbering 850 persons. “While we advance our bankable feasibility study and put funding in place for project development, we wanted to start preparing the community to be able to leverage off the numerous opportunities mining ventures can bring. The Siyathemba community has consid- erable interest in the Prieska project and are eager to understand our business and how best we can collaborate for mutual benefit. We have thus initiated week-long training courses centred at Prieska, Marydale and Niekerkshoop, for those residents who have completed their grade 12 and have an interest in mining,” says Walter Shamu, COO of Orion. The programme has, to date (early May), been successfully com- pleted by 158 participants, with the total number registered for the first programme being 400. Participants also earn accreditation towards industry-recognised mining-related qualifications. 

Participants in one of the Orion courses (photo: Orion Minerals).

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