Modern Mining October 2015

MINING News

Aftan purchases remaining 40 % stake in TantalumValley The Tantalite Valley site in southern Namibia (photo: Kennedy Ventures).

These studies focused on determin- ing both the trade-off between maximum diamond value recovery against process- ing costs (using a range of bottom cut-off screen sizes), as well as optimum opencast mining scenarios at the Mothae kimberlite based on the mining of the Main Pipe only, which comprises the South-West (SW), South-East (SE) and South-Central (SC) domains of the kimberlite. The basis for both studies was the NI 43-101 Technical Report completed by Lucara Diamond Corporation in February 2013. The revenue scenarios compiled by The MSA Group come from a sample of 23 738 carats that were used to model the average diamond value per size class for each of the four kimberlite domains. Average diamond values were calculated for three bottom cut-off screens (+2 mm; +3 mm; +4 mm) using three revenue models.  earlier this year, Chairman of the England and Wales Cricket Board and is currently the Board’s President). The plant recommissioning at Tantalite Valley was started in July this year. Phase one involves ramping up through the coarse recovery plant to treat 10.5 kt/ month and produce 5 000 lb of Ta 2 O 5 per month. Phase two will see the implemen- tation of the fines recovery section which will lift throughput to 15 kt/month, recov- ery to 75 % and output to 9 200 lb Ta 2 O 5 by mid-2017. An independent study has confirmed the estimated resource at Tantalite Valley of 843 000 tonnes grading 490 ppm Ta 2 O 5 . The licence area is estimated to hold a global ore resource of 2 Mt, sufficient for 15 years of operation. 

These technical reports are intended as components of a future Preliminary Economic Assessment (PEA) and Pre- feasibility Study (PFS) and review multiple mining scenarios and simulated progres- sive cutting of processing costs, which will now be explored during final plant and open-pit design work. Highlights of the studies include the potential to significantly increase Mothae’s NPV from management’s original esti- mates; the identification of an improved strip ratio at <1:1 compared to <1,5:1 previously assumed; and the potential for average diamond values up to US$2 000/ carat. In addition, several mining scenarios exceed 20 Mt at US$40+/t ore value in a low operating cost mine exceeding 2 Mt and 40 000 carats per year. of Kennedy Ventures, commented: “We are pleased to conclude this agreement at this time as the Tantalite Valley mine is being prepared for production. The re- commissioning of the mine is on track and within budget to commence production in the current quarter. This agreement enables Aftan to become sole owners of the operating and title companies and will create further value for Kennedy Ventures’ shareholders.” Hibberd is a qualified geologist and mining engineer from the Royal School of Mines, Imperial College, and has over 30 years’ experience in the mining indus- try, including with De Beers, RTZ and JCI. The Chairman of Kennedy Ventures is Giles Clarke, a businessman who is also well-known in cricket circles (he was, until

Kennedy Ventures, which is focused on tantalite production in Namibia through its 75 % holding in African Tantalum (Aftan), reports that Aftan has entered into a pur- chase agreement with Magnum Mining and Exploration Limited to acquire the remaining 40 % interest in the Tantalite Valley project in Namibia for a cash consid- eration of R7 million. The Tantalite Valley project will be Aftan’s first mine to come into opera- tion. Mining from the high grade ores at the mine site in southern Namibia is on track to commence in Q3 2015, with first delivery of production from Aftan to its offtake partner, a leading manufacturer of electronic components, on track for the beginning of Q4 2015. Peter Hibberd, Chief Executive Officer

Independent studies confirmMothae’s potential Paragon Diamonds Limited, the AIM- quoted diamond development company, has announced the results of two indepen- dent studies carried out by The MSA Group on the Mothae kimberlite project, located in Lesotho, that Paragon is in the process of acquiring.

Paragon says the conclusions con- firm – and exceed – management’s initial expectations that Mothae represents a low cost opportunity for Paragon to generate significant value for shareholders through the potential recovery of large high value diamonds. Mothae is only 5 km from the world class Letšeng diamond mine in Lesotho which is located within a cluster of kimberlites, including Paragon’s Lemphane kimberlite pipe project.

12  MODERN MINING  October 2015