Modern Mining November 2018

MINING News

Exploitation Permit opens the way for Baobab expansion

Avenira, listed on the ASX, reports that BaobabMining and Chemicals Corporation SA (BMCC), an 80 %-owned subsidiary of the company, has received a Senegalese Government Exploitation Permit for the Gadde Bissik area within its Baobab phos- phate project in Senegal. Comments Avenira’s MD and CEO, Louis Calvarin: “ The grant of this Exploitation Permit is a major milestone for our Baobab expansion and upgrade investment project. Receiving the per- mit underpins all future steps including funding the project implementation and increases our company’s Feasibility Study momentum. I would like to thank the Government of Senegal and the Baobab project team for all their work and sup- port reaching this point.” The permit covers an area of 75 km 2 around the former Gadde Bissik Small Mine Permit and is valid for an initial renewable period of 20 years. Following the restructuring triggered by this permit grant, the Senegalese Government will hold a 10 % free-carried interest in the legal entity owning the per- mit, and the new structure will be exempt from paying certain taxes. The permit covers the area identified by Avenira as offering the best economic potential for commercial phosphate rock mining. It surrounds the ‘Small Mine’ operation – the Gadde Bissik mine – launched by Avenira through BMCC in 2016.

Phosphate concentrate production at Baobab (photo: Avenira).

to initiate a ‘Bankable’ Feasibility Study phase (Class 3 estimate with a ±10 % targeted accuracy) based on the proj- ect configuration set at the conclusion of the FS, aiming at a June 2019 quarter completion. The indicated mineral resource within the permit area is estimated at 41,8 Mt at 19,4 % P 2 O 5 at a cut-off grade of 10 % P 2 O 5 , and the inferred mineral resource is estimated at 247 Mt at 16,0 % P 2 O 5 at a cut-off grade of 10 % P 2 O 5 , both taking into account depletion by mining to date. 

Mining at Gadde Bissik was suspended in 2017 and the mine is currently process- ing existing ROM stockpiles. A Feasibility Study (FS) is underway which is examining replacing the existing processing circuit on site with industry-standard flotation, magnetic separation and drying steps. The target capacity is 1,0 Mt/a of phosphate rock concentrate. The FS – which is being undertaken by Wood PLC – is currently projected to be completed in the December 2018 quarter (Class 4 estimate with a ±20 % targeted accuracy). Following this, Avenira intends

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