Modern Mining September 2019

ODERN INING September 2019 | Vol 15 No 9 Objective, incisive editorial for people who are serious about mining

IN THIS ISSUE…  Asphalt solution devised for coal mine  Giyani targets manganese in Botswana  Staged development proposed for Bomboré

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CONTENTS ARTICLES COVER

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REGULARS MINING NEWS 4 Implats Group achieves “stellar results” for FY-2019 6 Minergy lines up its first long-term coal contract 7 Record monthly production at Lucapa mines 8 Wahgnion pours its first gold ahead of schedule 9 Pioneering geophysical work identifies buried kimberlites 13 Zimplats delivers another year of profitable production 14 Mill expansion at Ahafo gold mine processes its first ore 15 Mobile equipment acquired for lead/silver project 16 Osino intersects high-grade gold at Twin Hills 17 Endeavour Mining grows the Fetekro resource base PRODUCT NEWS 50 Weba chutes to optimise silo ore flow at South African gold mine 50 Portable fuel cleanliness analysis kit from Cummins 51 VSDs from WEG commissioned in West African gold mine 52 Conveyor control system developed by ifm 53 Slurry pumps excel in Africa 54 First-of-its-kind mobile data centre installed at Khumani 10 HPX acquires West African iron ore project 11 Uis tin mine produces its first concentrate

18 Weir Minerals Africa offers solutions from comminution to tailings COPPER 22 Kakula reaches high-grade ore COAL 26 Unique asphalt solution meets rigorous mine requirements MANGANESE 30 A new manganese mine in Botswana’s future? GOLD 34 Bomboré project to benefit from staged development FEATURE: SHAFT SINKING AND UNDERGROUND DEVELOPMENT 38 Master Drilling advances its cutting-edge technology 42 Geobrugg systems provide effective rockfall protection 46 Safety underpins everything for Murray & Roberts Cementation 48 Ivanhoe looks at alternative production plan for Platreef

55 Modular plants cut capex and offer flexibility 56 Pumps for filter presses require careful selection 56 KZN companies celebrate 10 years of partnership

ON THE COVER As an example of the effective results that can be delivered by its integrated solutions team, Weir Minerals Africa cites the case of CNC Crushers which was experiencing frequent plant stoppages at its Stilfontein site in North West Province. The solution provided resulted in a significant increase in plant throughput and a dramatic reduction in pump maintenance. See page 18 for further details.

September 2019  MODERN MINING  1 August

COMMENT

South African mining in facts and figures

T he Minerals Council South Africa has released the latest edition of its Facts and Figures book- let. As always, it’s a fascinating combination of commentary and statistics which together give a real sense of exactly where the South African mining industry is in terms of production, revenues, exports, levels of employment and safety. No need to guess – it’s all in ‘Facts and Figures 2018’ . On the whole, the picture that emerges is of an industry which is neither growing nor declining sub- stantially, with some figures up and some down, but few of them dramatically so. For example, in 2018 mining contributed R350,8 billion (or 7,3 %) to GDP compared to R343,6 billion (or 7,5 %) in 2017, a slight drop in percentage terms. On the other hand, the industry’s direct contribution to fixed investment in 2018 was R91,1 billion, compared to R77,1 billion in 2017, while total primary mineral sales amounted to R498,7 billion, as opposed to R474 billion in 2017. Company taxes paid in 2018 totalled R22 billion, a R3 billion increase on 2017. Mineral export sales in 2018 totalled R333,2 bil- lion, the equivalent figure for 2017 being R328 billion. The Minerals Council points out that export earn- ings from minerals are approximately equal to half of South Africa’s foreign reserves and account for 26,7 % of the country’s total export book. The figures for employment are disappointing, with the mining industry employing 456 438 people in 2018, a decline of 1,6 % from the prior year. The most significant job losses were experienced in the gold sector (-11,2 %), the diamond sector (-9,2 %) and the PGM sector (-3,38 %). Balancing these losses, the manganese, chrome ore and coal sectors all added jobs in 2018, with the percentage increase in manga- nese being a healthy 20,2 %. The safety performance of the mining industry in 2018 in terms of fatalities was somewhat improved, with 10 % fewer fatalities being recorded. The PGM sector had 12 fatalities (29 in 2017) while the coal sector saw a slight improvement with nine fatalities compared to 10 in the prior year. Gold remained unchanged, with 40 fatalities in 2018, the same fig- ure as 2017. Total fatalities were 81 in 2018 compared to 90 in 2017. While everyone would agree that even a single fatality is one too many, there’s no question that the mining industry’s safety record has improved dramati- cally over the long term. In fact, over a 25-year period

the number of fatalities has decreased by 87 %. Looking at the industry on a sectoral basis, coal sales totalled approximately R146 billion in 2018 (roughly R15 billion more than the figure for 2017) although production was little changed at 253,26 Mt compared to 252,27 Mt in 2017. Employment totalled 89 647 people, representing about 19 % of employ- ment in the mining sector. Total nominal sales in the PGM sector amounted to R104 billion in 2018, up from the R97 billion of 2017 but, as with coal, total production remained relatively stable (4,32 Moz of platinum in 2018 versus 4,29 Moz in 2017). The sector employed 167 041 people in 2018. This represents a substantial decline from the 197 752 people employed in 2012, the peak over the past 10 years. Turning to the third pillar of South Africa’s min- ing industry, gold, production in the sector continued its inexorable decline, with 117 tonnes of gold being produced (a paltry 3,3 % of global production), 20 tonnes less than in 2017. Total sales amounted to R70 billion, well down on the roughly R83 billion of 2017. The total number of direct employees was just a touch over 100 000. As the Minerals Council points out, while the total number of people employed in the sector has been on the decline since 2007, total employee earnings have soared from R15,9 billion in 2008 to R27,6 billion in 2018. Space doesn’t allow me to go through all the other mining sectors in any detail but, briefly, production of iron ore at 74 Mt in 2018 was fraction- ally down on the 2017 figure while manganese at 14,9 Mt was slightly up. Similarly, chrome ore pro- duction was relatively stable, with 17,85 Mt being produced in 2018, just over 1 Mt up on 2017. As for diamonds, production in carats totalled 9,9 million in 2018 (about 10 % of global production) compared to 9,7 million in 2017. How to sum up Facts and Figures 2018 ? Well certainly the increase in investment by mining com- panies is a very welcome development. But, as Roger Baxter, CEO of the Minerals Council, argues in his introduction to the booklet, it will need to be sustained over the long-term if mining in South Africa is to grow and have a long-term future. Whether that’s going to happen remains to be seen. There are encouraging signs but we’re certainly not out of

On the whole, the picture that emerges is of an industry which is neither growing nor declining substantially,

with some figures up and some down, but few of them dramatically so.

the woods yet. Arthur Tassell

Editor Arthur Tassell e-mail: mining@crown.co.za Advertising Manager Bennie Venter e-mail: benniev@crown.co.za Design & Layout Darryl James Circulation Brenda Grossmann

Publisher Karen Grant

Printed by: Shumani Mills Communications The views expressed in this publication are not necessarily those of the editor or the publisher.

Deputy Publisher Wilhelm du Plessis Published monthly by:

Average circulation April-June 2019 – 5382

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September 2019  MODERN MINING  3

MINING News

Implats Group achieves “stellar results” for FY-2019

The Implats Group reports it has achieved stellar results for the full year to end 30 June 2019. A strong operational per- formance in key areas allowed the Group to harness the benefit of improving market conditions and rising rand PGM pricing during the year and deliver a substantially improved financial result with healthy free cash flow generation and a return to a clos- ing net cash position at year-end. Implats has five main operations with a total of 20 underground shafts. The operations are located within the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe. Revenue improved by 36 % to R48,6 billion as a result of the higher sales vol- umes, higher realised dollar metal prices for rhodium, palladium, iridium and ruthe- nium, and the weaker rand. Gross profit reached R6,8 billion for the year, a five- fold or R5,7 billion gain from the R1,1 billion achieved in FY-2018. EBITDA improved by 90 % to R10,5 billion and headline earn- ings increased to R3,0 billion from a loss of R1,2 million in the prior year. Implats CEO Nico Muller commented:

Implats CEO Nico Muller (photo: Implats).

to plan during the year with the successful completion of the first phase. In addition to structural changes at Impala Rustenburg, and to enhance the competitiveness of

“The Group made material strides in deliv- ering its stated strategy to prioritise value over volume. The execution of the Impala Rustenburg restructuring was advanced

The construction phase of Impala’s 20 Shaft (seen here) was concluded during the year (photo: Implats).

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flow cash. Higher received pricing drove margin expansion at all operations and the Group received higher dividend flow from its joint ventures. The year was characterised by a step- change in operational momentum at Impala Rustenburg as the implementation of restructuring initiatives yielded gains. Despite the closure of 4 Shaft and the scaling down of production at 1 Shaft (col- lectively approximately 554 000 tonnes), mill throughput increased by 2 % to 11,21 Mt (FY-2018: 10,95 Mt). This was due to improved delivery at both 12 and 14 shafts (+504 000 tonnes) and supported by the ramp-up in volumes from 16 (+294 000 tonnes) and 20 (+91 000 tonnes) shafts. The execution of the Impala Rustenburg restructuring made good progress during the year with the first phase being success- fully completed. This process set out to optimise and align the overhead structures and labour complement at the operation to a smaller and more productive future min- ing footprint. A multitude of stakeholder engagements were undertaken to con- power supply requirements (Arcadia’s peak power requirement is 16 MW); and an option for an additional 25 MW of supply in the event of further expansion of the facility or downstream processing (lithium carbonate or hydroxide plant). African Continental Minerals currently holds two Special Grants covering a total 245 000 hectares and is awaiting the final approvals on a third asset. All assets are covered by existing powerlines ranging from 11 kV to 33 kV. Test and production wells will be placed within 4 to 8 km of power distribution lines. ACM’s parent entity, Jacqueline

the Group’s portfolio, management con- tinues to explore ways to improve safety, productivity and cost efficiency at all other operations. To this end, the Group suc- cessfully maintained the recalibration of operations at Marula, while sustaining industry leading productivity and safety per- formances at Mimosa, Two Rivers, Zimplats and Impala Refining Services (IRS).” The Group’s strong performance during the year was anchored by the operational turnaround at Impala Rustenburg, which represents approximately 50 % of the Group’s mine-to-market production. A 3 % increase in concentrate production at Impala Rustenburg, despite the contraction of the mining footprint, together with main- tained delivery from Zimplats, Mimosa and Marula, offset a weaker contribution from Two Rivers. Consequently, Group mine-to- market platinum-in-concentrate volumes were stable at 1,3 million ounces. Each of the Group's operations delivered positive free cash flows in FY-2019 except Mimosa, where working capital changes impacted sales receipts and hence free

clude the first phase without disruption and to consider the next phase, which will focus on the planned closure or outsourcing of 1 Shaft and the closure of 9 Shaft, which is nearing the end of its available mine life. Implats notes that the construction phase of Impala Rustenburg’s 20 Shaft capital project was concluded during the year, while the 16 Shaft project reached 92 % completion at year-end. Both shafts are producing more than 50 % of targeted steady-state production and management focus has moved to creating the required mineable face length to complete the pro- duction ramp-up. According to Muller, the focus in 2020 will be on advancing the phased restruc- turing of Impala Rustenburg while taking advantage of the operational improve- ments realised over the past year and maintaining delivery from all other Group operations. “Our project focus will be centred on 20 Shaft, ensuring that the con- tinued commitment to invest and operate is matched with improved project delivery and accountability,” he said.  Resources, has established a team of expe- rienced experts on the ground in Zimbabwe headed by Troy Wilson, a widely recognised coalbed methane (CBM) expert, with over 20 years’ experience across exploration through to production. Arcadia’s primary source of power sup- ply is from the national electricity grid that is owned and operated by Zimbabwe Electricity Transmission & Distribution Company (ZETDC),whose main power distribution lines run adjacent to Arcadia. Prospect has secured Arcadia’s required supply at this interconnection. The MOU provides Arcadia with optionality for power supply and competitive tension for future supply agreements. 

Prospect signs MOU on power supply for Arcadia African lithium developer Prospect Resources, listed on the ASX, has signed a Memorandum of Understanding (MOU) with African Continental Minerals (ACM) for the supply of power to the Arcadia lithium project near Harare, Zimbabwe from ACM’s ‘Coalbed Methane Gas to Power Project’. The MOU is non-binding and sets out the key terms for a subsequent formal off- take agreement as the Arcadia project is developed. The MOU’s key terms include: an agreed term of five years from the commencement date (to be outlined in a definitive agreement); a minimum supply of 20 MW daily power to meet all of Arcadia’s

September 2019  MODERN MINING  5

MINING News

Minergy lines up its first long-term coal contract

months. Minergy says it is confident of signing additional customer contracts in the coming weeks. Minergy also reports that it has engaged a firm of experts to undertake significant technical work to finalise the mine plan to be conducted at Masama. Based on work completed to date, extremely encouraging results are expected. Internal analysis indicates that Masama could have an NPV 10 in the range US$100 million to US$130 million, an IRR of over 100 % and a payback period of less than two years. Minergy stresses, however, that these figures are indicative only and will only be known with accuracy after the con- clusion of the technical review. Key assumptions include a blended average selling price of US$50-55 per ton (this is, however, dependent on product type as well as quality) and cash operating costs of US$4 045 per ton. The company is subject to a 3 % revenue royalty and a 22 % income tax rate. Closure costs for the opencast phase have been accounted for. A coal resource of 386 Mt has been defined in terms of the preliminary work- ings for the project and comprises open-castable and underground mineable resources in the measured, indicated and inferred categories. Open-castable coal reserves are cur- rently in the process of being calculated but ROM coal reserves are likely to range between 55 and 65 Mt, with resultant sale- able coal reserves likely to be in the range of 30 to 40 Mt. Approximately 304 Mt of the total coal resource is considered mineable by underground mining methods and could significantly extend the LOM (cur- rently estimated at 22 years based on open-castable resources). Prior to the open-castable resource being exhausted, a detailed assessment of underground min- ing will take place. In addition, there are also plans to conduct further exploration on the remainder of the prospecting licence, which is substantial and currently totals 352 km 2 . “The team is extremely proud of what has been achieved in a relatively short period of time, not only for Minergy but for the devel- opment of the coal sector in Botswana,” comments Minergy's CEO, Morné du Plessis. “Minergy has pioneered a process that will support the regional industrial demand for coal and, in so doing, benefit the people of Botswana through job opportunities and vital coal skills development.” 

The processing plant at Masama (photo: Philip Mostert Photography).

Coal producer Minergy, listed on the Botswana Stock Exchange, reports that following the successful start-up of min- ing operations at its new Masama coal mine in Botswana, it has exposed the first 340 000 tons of coal, which represents approximately three months of nameplate production. In doing so, it has removed over 2,5 million cubic metres of overburden. Minergy says it is extremely pleased with both the timing and the progress made at Masama, which is transitioning from mine development into a mining operation at full production. First commercial sales are expected this month (September) and the ramp-up of operations is on-track. Currently, the company is mining

110 000 tons per month, resulting in 70 000 – 80 000 tons of saleable coal. The saleable coal target is expected to increase to 100 000 tons per month in early 2020. Several opportunities to sig- nificantly increase production will be assessed going forward. The company is completing the pro- cess to sign its first long-term contract to deliver 120 000 tons of coal per annum to one regional industrial customer, which represents approximately 10 % of esti- mated annual saleable coal. Discussions are underway with a number of other inter- ested regional industrial customers, many of whom have already tested samples of the company’s coal over the past few the mineralisation for the indicated mineral resource is estimated to be continuous from surface to an approximate vertical depth of 150 m, it expects a strong conver- sion of mineral resources to ore reserves upon completion of the DFS, expected in Q4-2019. “The next six months for Graphex will be transformational as we work towards the completion of our DFS and unlocking our US$80 million funding package,” comments Graphex’s MD, Phil Hoskins. “The company is excited to enter the next phase of its jour- ney as it strives to be the producer of choice for coarse flake graphite to the evolving expandable graphite market.” 

Substantial increase in Chilalo indicated resource ASX-listed Graphex Mining has reported a substantial increase in the mineral resource estimate at its Chilalo graphite project, located in south-east Tanzania.

The company recently completed a 22-hole (totalling 2 083 m) infill diamond drilling programme designed to underpin the upcoming Definitive Feasibility Study. Results have successfully delivered a sub- stantial conversion of inferred resources into the indicated mineral resource category, which now stands at 10,3 Mt grading 10,5 % TGC – a 73 % increase in the indicated cat- egory from the previous estimate. Graphex says that given the project’s exceptional economics and the fact that

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Record monthly production at Lucapa mines

2019, produced two records during the month of August. A monthly processing record of 120 736 tonnes treated was achieved, recovering a record 2 911 car- ats, taking year-to-date carat production to 17 935 carats. The new 1,1 Mt/a plant at Mothae incor- porates XRT technology (which is also used at Lulo). The mine, which exploits an 8,8 ha kimberlite pipe, has an estimated life of plus 20 years at present processing rates. Mothae, in which Lucapa has a 70 % interest with the Government of Lesotho holding the balance, is Africa’s newest kimberlite mine. It is located within the dia- mond-rich Maluti Mountains within 20 km of three other diamond mines. The project was acquired by Lucapa in 2017. Lucapa achieved a consolidated net profit after tax of US$1,1 million in the six months ended 30 June 2019, compared with a loss of US$4,3 million in the com- parative June 2018 half year. 

ASX-listed Lucapa Diamond Company and its project partners have reported record monthly diamond production results from both the Lulo and Mothae high-value dia- mond mines for August 2019. The record monthly production figures for Lulo and Mothae come on the back of the company’s growth-focused strategy, leading to the scaling up of production at both mines to maximise revenue genera- tion and returns. The Lulo mine in Angola produced 3 180 carats in August, the highest monthly result since production commenced in 2015. Lucapa has a 40 % interest in the mine and is also the operator. A significant factor contributing to this record was the monthly grade of 13 carats per 100 cubic metres (cphm 3 ), which is almost twice the planned grade of 6,7 cphm 3 . Lulo is the world’s highest average US$

per carat alluvial project and has produced more than 13 plus-100 carat diamonds since operations began, including Angola’s two largest recorded diamonds of 404 carats and 227 carats. Significantly, these high grades were achieved from two of the flood plain blocks being delineated at Lulo, including new Mining Block 19 situated between the prolific Mining Blocks 8 and 6. These new mining areas have no noticeable prior arti- sanal activity, and the results give Lucapa and its partners further confidence that the extensive flood plain areas along the approximately 50 km stretch of the Cacuilo River still to be explored have the potential to increase diamond resources and mine life. Lucapa’s new high-value Mothae kimberlite mine in Lesotho, which com- menced commercial production in January

Lucapa’s Lulo project in Angola showing the plant area (photo: Lucapa).

September 2019  MODERN MINING  7

MINING News

Wahgnion pours its first gold ahead of schedule

ahead of schedule due to the dedication of our owner’s team led by Metifex, as well as our EPCM partner Lycopodium. “With safety front and centre, the com- missioning phase was completed without a single lost time injury, encompassing over 5,3 million hours worked. This accomplish- ment reflects the hard work and dedication of all of our employees and contractors, and is aligned with our commitment to responsible mining.” Wahgnion has proven and probable reserves of 1,61 Moz of gold. During the first five years of operation (2020-2024), an average annual gold production of 132 000 ounces is expected at an average mill grade of 1,83 g/t and an AISC of US$761/oz. The mine has a 13-year life on current reserves. “We are very excited to report that con- struction is complete and that we have achieved first gold pour at Wahgnion, two months ahead of schedule. This moves us a step closer to reaching our goal of becom- ing a mid-tier gold producer in West Africa,” said Richard Young, Teranga’s President and CEO. Teranga also owns and operates the Sabodala gold mine in Senegal. “We want to thank the Government of Burkina Faso for their support since we purchased Wahgnion in October 2016, and to commend our entire team for taking this project from exploration to production in less than three years, ahead of the original schedule and expected to be under budget.” During construction, Teranga recruited and trained more than 650 skilled workers to work at Wahgnion. Recently, the com- pany transitioned 70 of these employees from construction into operational roles. In addition to a smooth ramp up to commercial production, Teranga is focus- ing on its local social responsibility efforts, such as building new housing and provid- ing livelihood restoration programmes to some near-mine communities, including the development of irrigated agriculture, increased crop production, animal hus- bandry, training and support to launch small businesses, and sustainable income-gener- ating activities for local women. Commencing in 2020-2021, Teranga plans to embark on a multi-year exploration and drilling programme, which will focus on highly prospective exploration targets within trucking distance of the plant, to further optimise the mine plan and extend Wahgnion’s mine life. The current reserve estimate and mine plan include only the four initial deposits on the mine licence. 

The Wahgnion plant during construction (photo: Teranga Gold).

Canada’s Teranga Gold Corporation, listed on the TSX, has announced that its second mine, Wahgnion Gold Operations (Wahg­ nion), began processing ore during August. The first gold pour was achieved two months ahead of schedule and construc- tion costs are expected to be under budget. Located in the south-west portion of Burkina Faso, Wahgnion is expected to produce 30 000 to 40 000 ounces of gold in 2019. During commissioning, 117 712 tonnes of low-grade ore were processed at an aver- age grade of 1,04 grams of gold per tonne. The average recovery rate was 94,7 %. Gold

production amounted to 3 720 ounces and gold poured to 1 743 ounces. “During August, we successfully com- missioned the Wahgnion plant and are pleased to report that all aspects of the plant are now operational. Fine tuning will continue during September with through- put and grade expected to ramp up during the fourth quarter, in line with our guid- ance. Typical with commissioning, low grade ore was used to ensure the extrac- tion process is working well before putting higher grade material into the circuit,” said Paul Chawrun, Teranga’s Chief Operating Officer. “We were able to start production Martin Eales, who has been CEO since 2014 and under whose oversight the com- pany was transformed from an early-stage exploration play to Africa’s only producing rare earth mine, fully listed on the LSE, is stepping down. Rainbow’s Chairman, Adonis Pouroulis, stated, “We are delighted to bring some- one of George’s calibre on board. George has considerable experience in developing assets, particularly in the natural resources and energy space, and has a track record of success. We think he will be instrumental in helping Rainbow reach the next stage of its development. At the same time, I would like to thank Martin for his support during the early stages of Rainbow’s development, IPO, and initial production.” 

New Chief Executive Officer takes over at Rainbow Rainbow, the rare earth element mining com- pany which operates the Gakara project in Burundi, has appointed George Bennett to the Board as Chief Executive Officer, with immediate effect.

With over 25 years’ experience in mining, finance and management, Bennett has led a number of mining and energy companies, including Shanta Gold, which he successfully listed on the London Stock Exchange (LSE) in 2005. In 2006 he established MDM Engi­ neering, which listed on the LSE in 2008. MDM is a mining engineering company building mineral process plants and mining infrastructure throughout Africa. In 2014, Bennett was instrumental in selling the busi- ness to Foster Wheeler for US$120 million.

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Pioneering geophysical work identifies buried kimberlites

Botswana Diamonds (BOD), the AIM- and BSE-listed diamond explorer, has announced that pioneering geophysical work has identified what is believed to be kimberlite pipes buried at shallow depth on the company’s Thorny River ground in South Africa’s Limpopo Province. The targets identified are very similar to the pipe that constituted the high-grade and famous De Beers Marsfontein mine, in so much as the pipe had little surface indi- cation due to dolerite rock cover but grew and swelled below the dolerite. Much of the Thorny River area geol- ogy comprises a dolerite dyke swarm. Conventional geophysical techniques have been unable to detect kimberlites under the dolerite including those that are deeper seated. Subterrane, a partner, is using its proprietary technology, which enables exploration of geophysical anomalies beneath the dolerite and those that are buried. This could lead to the discovery of kimberlites similar to Marsfontein. Thus far,

Subterrane has identified five such target areas within the Thorny River project. John Teeling, Chairman of BOD, com- mented: “It has long been held that there should be high-grade kimberlite pipes other than the Marsfontein mine in the Thorny River area. The geology made discovery dif-

ficult. New geophysical technology tries to see through the dense dolerite cover. The company pioneering the work, Subterrane, believe they have identified five targets likely to be kimberlites. We are working to better define where to drill. The targets are shallow so will not be expensive to drill.” 

Trenching underway at the Thorny River project (photo: Botswana Diamonds).

September 2019  MODERN MINING  9

MINING News

HPX acquires West African iron ore project

ees and contractors are Guinean nationals and the project’s recruitment and training programme will continue to give priority to qualified Guineans for senior management and professional roles. “As a catalyst of sustainable economic development in Lola Prefecture and in the greater Forestière region, the mine will ensure long-term protection for the nearby Mount Nimba Strict Nature Reserve. We are acutely aware of the importance of this world heritage area and are fully commit- ted to preserve its unique features and to implement the Nimba project in a way that is a model for responsible sustainable development.” Subject to all necessary approvals, HPX is planning to bring a starter mine of one to five million tonnes per year into production as quickly as possible while feasibility studies are being completed for an expanded operation of at least 20 mil- lion tonnes per year. The Government of Guinea and HPX have agreed on terms for the updated Nimba Mining Convention, including a 15 % free-carried government interest in SMFG, as well as tax and royalty arrangements and a development timetable. Further to a news release by Ivanhoe Mines earlier this year announcing the pro- vision of a secured loan facility for HPX and an agreement for mutual technical support and collaboration, Ivanhoe has commit- ted to commence negotiations to provide technical support to the Nimba project. Such support would be provided on an arms-length, cost-recovery basis. Ivanhoe is a Canadian mining company focused on advancing its three principal projects in Southern Africa.  advancement of the Khemisset project with ever increasing confidence in our technical and economic outcomes, culminating in the release of our Feasibility Study in the first half of 2020. “We look forward to releasing an updated Mineral Resource Estimate, with a significant proportion within the measured and indicated resource categories. This Mineral Resource Estimate will form an inte- gral part of our on-going Feasibility Study. We continue to believe the results of this study will confirm our belief that Khemisset has the potential to be a low capital cost, high margin potash development, which generates strong cash flows regardless of fluctuations in potash price.” 

Eric Finlayson, President of High Power Exploration Inc (HPX), announced at a sign- ing ceremony held recently in Conakry that HPX had received consent from the Government of the Republic of Guinea to acquire the 95 % interest in the Nimba iron ore deposit held by BHP, Newmont Gold and Orano (formerly Areva, the French gov- ernment nuclear utility). The ceremony was attended by Alpha Condé, President of the Republic of Guinea, and Kgalema Motlanthe, the former President of South Africa. Finlayson also announced that Motlan­ the and Guy de Selliers de Moranville had agreed to become Co-Chairmen of the HPX subsidiary that will hold the Nimba asset and both have joined the board of Société des Mines de Fer de Guinée (SMFG), the Guinean company operating the project. HPX is a privately-owned, US-domiciled mineral exploration and development company with an operating office in Vancouver, Canada. Its board and manage- ment team are led by Chairman and Chief

Executive Officer Robert Friedland (who is also Executive Co-Chairman of Ivanhoe Mines); Co-Chairman Egizio Bianchini, for- mer Co-Head of the BMO Global Metals & Mining Group and Vice Chairman of BMO Capital Markets; and Finlayson, a former head of exploration at Rio Tinto. In a 2015 review completed by the United States Geological Survey, the Nimba deposit, which is located in the Forestière region of south-eastern Guinea, is esti- mated to comprise around a billion tonnes of high-grade iron ore containing very low levels of impurities. “With local procurement of goods and services, local recruitment and training of the work-force, the upgrading of transport routes and infrastructure, and the resulting economic multiplier effects, we anticipate that major social and economic benefits will flow from the Nimba mine,” Finlayson commented. “As President Condé expects, more than 95 % of the project’s current employ-

Exploration camp at the Nimba iron ore project in Guinea.

Infill drilling programme at Khemisset completed Emmerson reports completion of the infill drilling programme at its 100 %-owned Khemisset potash project in Northern Morocco.

completed within the timelines set by the company and under the allocated budget. Final geochemical assays are expected shortly, which will allow an updated geo- logical model and JORC Mineral Resource Estimate to be completed prior to the end of October 2019. Hayden Locke, Chief Executive Officer of Emmerson, commented: “The completion of our drilling programme on time and under budget, and with excellent core recovery, is a major milestone for Emmerson and a credit to our fantastic geological team. “The detailed information from the drill programme will enable the continued rapid

The programme, undertaken by Drillon, consisted of nine holes and successfully achieved its objectives of providing addi- tional geological information in the area most likely to be the target of initial mining opera- tions. In addition, it has provided enough sample material to allow completion of a comprehensive metallurgical test work pro- gramme and detailed geotechnical testing. The entire drilling programme was

10  MODERN MINING  September 2019

Uis tin mine produces its first concentrate

which are in line with the project ramp-up and design specification of the plant. “We are delighted that our vision of bringing this historic mine back into produc- tion after almost thirty years of closure has taken a significant step forward,” comments Anthony Viljoen, CEO of AfriTin. “After only two years, AfriTin is still the only pure-play producing tin company on AIM and this can be attributed to the commitment and dedi- cation of the entire AfriTin team.” 

AfriTinMining, listed on AIM, has announced production of its first tin concentrate at its flagship Uis tin mine in Namibia. Tin production comes soon after the company announced the completion of the Phase 1 Pilot Plant on 26 July 2019 and that hot and cold commissioning were nearing completion ahead of production ramp-up. AfriTin will now focus on ramp- ing up the plant to its design capacity of 500 000 tonnes of ore per annum, which will produce approximately 60 tonnes of tin concentrate per month by the end of Q4-2019. The Uis deposit was discovered in 1911 with mining commencing in 1950. As a result of unfavourable market conditions at the time, the mine went into care and maintenance in the early 1990s and was then closed. This tin concentrate is the first produced since the closure of the mine and is an important milestone for the company as well as having a significantly positive impact on the community of Uis. AfriTin has also announced that it has

concluded an offtake agreement with Thailand Smelting and Refining Co, Limited (Thaisarco) for tin concentrate produced from the Uis mine. The one-year offtake agreement enables AfriTin to sell its tin concentrate and secure revenue for the next 12 months with an option to extend the contract. The offtake agreement speci- fies pre-agreed concentrate deliverables

The Uis pilot plant has produced its first concentrate (photo: AfriTin Mining).

September 2019  MODERN MINING  11

MINING news

Zimplats delivers another year of profitable production

Reporting on the Zimplats operation in Zimbabwe in its annual results (to 30 June 2019), Implats says that the Zimplats team delivered another year of consistent, effi- cient and profitable production. Increased volumes from the fully rede- veloped Bimha mine compensated for opencast contributions in the prior period, yielding largely unchanged milled ton- nage and PGE head grade of 6,49 Mt and 3,48 g/t, respectively (FY2018: 6,57 Mt and 3,48 g/t). Platinum production was flat at 270 000 platinum ounces in matte (including con- centrates sold) (FY-2018: 271 000) and benefited from smelter volumes released ahead of the planned furnace rebuild in the new financial year. Costs were well contained with absolute savings due to the closure of the opencast section, reduced treatment fees from the export of concentrates in the previous year, and tailwinds from the impact of a depreci- ating rand and RTGS on local input pricing. Cash costs of US$348 million declined by 2 % (US$356 million) as did unit costs of US$1 288 per platinum ounce in matte (FY‑2018: US$1 313). Zimplats’ achieved basket price ben- efited from its high palladium, nickel and copper content, which compensated for weaker platinum pricing. Sales revenues increased by 20 % to R9,0 billion (FY-2018: R7,5 billion). The operation delivered gross profit of R2,7 billion (FY-2018: R1,9 billion).

The development of Mupani mine, which will replace the Ngwarati and Rukodzi mines, continues to run ahead of schedule. At year-end, US$67 million had been spent, with an estimated total cost of US$260 million at completion. Ore contact was reached in the fourth quarter of the year under review and production from a single mining fleet began in June 2019. The capital project is expected to be completed by July 2024. However, steady- state platinum production of 90 000 ounces per annum will only be achieved The new Mupani mine will replace the Ngwarati and Rukodzi mines (photo: Implats).

in 2029 when all the teams from the two depleting shafts are relocated to Mupani. Surface infrastructure development, to facilitate earlier-than-planned mining, is being prioritised. Zimplats is 87 %-owned by Implats and it is situated on the Zimbabwean Great Dyke south-west of Harare. Zimplats operates several underground mines and a concen- trator at Ngezi. The Selous Metallurgical Complex (SMC), located 77 km north of the underground operations, comprises a con- centrator and a smelter.  operations at the Prieska project. The planned Foundation Phase of operations would result in the mining and processing of 2,4 Mt/a of run-of mine feed for 10 years, to sell approximately 21 kt of copper and 70 kt of zinc as differentiated concentrates each year. Other post-BFS workstreams in prog- ress to prepare the project for execution include third-party peer reviews of the BFS in preparation for funding discussions; the value engineering of components of the BFS; mine-to-market business plan opti- misation using the Whittle Enterprise Optimisation process; pilot-scale water treatment field trials of the water accu- mulated in the underground excavations; and the expedition of the various ancillary licences required to operate a mine. Orion reports that substantial progress is being made in all areas. 

Orion and Byrnecut envisage partnering on Prieska Orion Minerals, listed on the ASX and JSE, has announced that it has concluded a Memorandum of Agreement with Byrnecut Offshore (Proprietary) Limited (Byrnecut) envisaging an alliancing agreement for underground mine development and pro- duction at the Prieska copper-zinc project in South Africa’s Northern Cape Province. The agreement follows the announce- ment of the grant of the Mining Right for the Prieska copper-zinc mine and paves the way for Byrnecut to bring the benefit of its experience to the development and opera- tion of the Prieska project which is intended as a global best practice mechanised min- ing operation.

at the Prieska project, whereby Byrnecut:  undertakes to provide underground mine development and mine production services;  commits to promoting local employment and skills transfer in support of transfor- mation of the industry; and  commits to collaborating with local black economic empowerment (BEE) enter- prises, in line with Orion’s commitment to the progressive transformation and modernisation of the South African min- ing industry. Formalising the agreement is one of the key project development milestones that follow the release of the positive Bankable Feasibility Study (BFS) (announced in June 2019) for the establishment of high margin and long-life underground mining

Key terms of the agreement are that the parties will seek to enter an alliancing agreement related to underground mining

September 2019  MODERN MINING  13

MINING News

Newmont Goldcorp Corporation, listed on the NYSE and TSX, has announced that the Ahafo Mill Expansion (AME) project in Ghana has successfully processed its first ore and is on track to achieve commercial production in the fourth quarter of 2019. The mill expansion will increase average annual gold production at the Ahafo mine by between 75 000 and 100 000 ounces for the first five years, beginning in 2020, with mill capacity expanding by more than 50 % through the addition of a crusher, grinding mill and leach tanks. The project is expected to deliver an internal rate of return of more than 20 % and, together with other projects at Ahafo, will extend profit- able production through to at least 2029. “Combined with Subika Underground, Mill expansion at Ahafo gold mine processes its first ore which was successfully completed in November 2018, the mill expansion will increase Ahafo’s production to between 550 000 and 650 000 ounces per year through 2024, while lowering life-of- mine processing costs,” said Tom Palmer, Newmont’s President. “The project also accelerates the efficient processing of stockpiled ore and supports profitable development of Ahafo’s highly prospective underground resources, which continue to demonstrate considerable upside.” In 2019, Ahafo is expected to achieve record production – with improved costs – driven by higher grades from the Subika open pit, a full year of mining from Subika Underground and the completion of the AME. Capital costs for the AME are estimated

at between US$140 million and US$180 mil- lion and have been funded through free cash flow and available cash balances. Commercial production began at Ahafo in 2006, and in 2018 the operation sold 436 000 ounces of gold at all-in sustaining costs of US$864 per ounce. Over the last six years, Newmont has successfully built 11 new mines, expansions and projects on four continents – on or ahead of schedule and at or below bud- get. These projects include Akyem and the Phoenix Copper Leach in 2013; the Turf Vent Shaft in 2015; Merian and Long Canyon in 2016; the Tanami Expansion in 2017; Twin Underground, Northwest Exodus and Subika Underground in 2018; and the Tanami power project in 2019. 

The mill expansion will increase average annual gold production at the Ahafo mine by between 75 000 and 100 000 ounces for the first five years (photo: Newmont).

investment into our region, and are com- mitted to working with all parties. The agreement creates a broad-based struc- ture that creates new opportunities for Host Communities to participate in a busi- ness that has long been in our community. Working together, with integrity and respect, this agreement – and project – will be a success.” Added Werner Duvenhage, RBM’s Managing Director: “This is an important milestone for Richards Bay Minerals and underscores our commitment to create truly sustainable development through working with our partners, including the govern- ment, suppliers and Host Communities. This agreement is pioneering and transformative, ensuring that our communities can directly participate in this major project.” 

RBM and Host Communities sign Zulti South agreement Richards Bay Minerals (RBM), South Africa’s largest mineral sands producer, and the Dube, Mkhwanazi, Mbonambi and Sokhulu communities signed a landmark agree- ment in August this year securing local business participation in the Zulti South project. Approved in April, 2019, the project will bring an investment of US$463 million, approximately R6 billion, into the region and will extend the life of RBM. Production from Zulti South will be processed through RBM’s existing infrastructure.

basis for a broad-based structure with the Host Communities and their partners in the King Cetshwayo District, which will benefit the communities by creating opportunities for participation that would otherwise not have been accessible. The Consortium established through the agreement will act as a mechanism to accelerate and deliver transformation and empowerment to businesses in the district. Other communities will continue to have the opportunity to participate in contracts other than those ringfenced, with the Provincial government overseeing implementation. Speaking at the signing on behalf of the Host Communities, Mbonambi Administrator Martin Mbuyazi said: “We welcome this

The agreement is the result of discussions undertaken through a Multi-Stakeholder Forum process to address Host Community concerns around procurement. The agree- ment outlines the principles that form the

14  MODERN MINING  September 2019

Mobile equipment acquired for lead/silver project The second-hand mobile crushing equipment is located in Lilongwe and is approximately 45 km from the Tshimpala project. The equipment has only 520 oper- ating hours (mobile jaw crusher and mobile screen) and 820 operating hours (mobile rotary crusher). The mobile crushing and screening

equipment, which is to be provided under an operating lease agreement with Shire, with equal payments scheduled over the initial 12 months of operations, was origi- nally purchased, as new, at a total cost of US$1,6 million. Commissioning and delivery of the mobile plant and equipment by Shire is scheduled to be completed at Tshimpala in the December 2019 quarter. 

ASX-listed Force Commodities has entered into an agreement with Malawian-based engineering and construction company, Shire Civils, for the acquisition of mobile crushing and screening equipment that it plans to use at its Tshimpala project. This is a high-grade lead and silver project located in the Dowa District of Malawi. The mobile crushing and screening equipment comprises a Metso Lokotrack LT106 mobile jaw crusher, a Metso Lokotrack LT1213 mobile rotary crusher and a Metso Lokotrack ST4.8 mobile screen capable of a throughput of up to 250 t/h and production of four different sized prod- ucts through the triple deck screens. In addition, under the agreement, Shire will also be engaged to establish the plat- forms for the mobile equipment at the processing site, transportation of the mobile equipment from Lilongwe to the processing site, full commissioning of the mobile equip- ment and training of the company’s planned employees from the surrounding communi- ties, who will operate the equipment.

The Lokotrack LT106 to be deployed at the Tshimpala project (photo: Force Commodities).

September 2019  MODERN MINING  15

MINING News

Osino intersects high-grade gold at Twin Hills

sures have no impact in this area,” he said. “Until the project is funded, the company will only incur development and exploration/ evaluation expenditure where necessary. All costs have been examined, and in most cases reduced, to ensure our cash is put to the very best use during the project financ- ing process.” Through its local subsidiary, ThirdWay has been operating in Mozambique for over five years and has a significant track record in corporate finance, investment advisory and development consulting. Subject to completing project financ- ing, Battery Minerals intends to commence graphite flake concentrate production from Montepuez at an initial rate of 50 000 t/a at an average flake concentrate grade of 96 % Total Graphitic Carbon (TGC).  The Twin Hills project is mostly covered by a thick layer of calcrete and lies on the regional scale Karibib Fault, approximately 25 km along strike from the producing Navachab gold mine (which has approxi- mately 6 Moz in past production and remaining resource). Osino has secured a total length of 70 km of the Karibib Fault Zone under exclusive exploration licence. Osino is managed by Heye Daun, CEO and co-founder, and Alan Friedman, President and co-founder, who were also co-founders of Auryx Gold. In 2010, Auryx acquired the Otjikoto gold deposit – originally an Avmin discovery – from Teal Mining & Exploration, a joint venture between South Africa’s ARM and Brazil’s Vale. After it expanded the resource and completed a PEA on the project, Auryx was sold to B2Gold in 2011. B2Gold subsequently developed Otjikoto into a highly successful gold mine (and only the second in Namibia, after Navachab).  terised by wide, lower grade gold haloes, with higher grade shoots within them. From the limited drill assays we have seen so far, Twin Hills Central appears to be fitting into this model.” Assays from a further three diamond holes at Twin Hills Central are still awaited, as well as the assays results from the deepening of holes OKD001 and OKD002 which ended in mineralisation. Osino is currently planning the next phase of drilling to start as soon possible, focusing on in-fill and step out drilling at Twin Hills Central, as well as fence lines over other identified prospects within the 11 km Twin Hills gold system.

Diamond drilling at Twin Hills Central (photo: Osino Resources).

Osino Resources Corp, listed on the TSX-V, reports that it has intersected a high-grade gold zone in the fourth hole of the seven- hole diamond drill programme at its Twin Hills gold project, located in the Karibib Gold District in Namibia. This news follows the announcement of the Twin Hills Central discovery in August 2019. The hole delivered the best intercepts yet including 65 m at 1,36 g/t Au (including 31 m at 2,2 g/t Au). Extensive mineralisation has now been intersected in four out of seven diamond holes, suggesting a strike

together with an extensive network in key financial centres in the UK, Europe and the Americas, means they are ideally placed to source the funding for Montepuez.” In parallel with the appointment of ThirdWay, Battery Minerals has imple- mented a cost reduction strategy aimed at ensuring it remains funded throughout the project financing process. Sinclair said the cost reduction exer- cise, which commenced in May 2019, has reduced ongoing overheads while not impacting the company’s ability to complete project funding. “We are fully committed to completing funding of Montepuez and therefore we have ensured that the cost reduction mea- length of more than 400 m and widths of up to 200 m, open along strike to the east and west and down dip. The mineralisation seen so far comprises both wide, continu- ous zones of mineralisation and higher grade zones within. “The intersection of this high-grade shoot so early in the drill programme is remarkable and adds to our confidence in the growing scale and grade of the Twin Hills discovery,” comments Dave Underwood, Osino’s VP Exploration. “Sediment-hosted, orogenic gold deposits are often charac-

ThirdWay Africa to assist with Montepuez funding ASX-listed Battery Minerals has announced that it has taken a key step in its revised strategy to develop the Montepuez graphite project in Mozambique by appointing spe- cialist corporate finance and development capital advisor ThirdWay Africa to assist it in securing project funding.

According to Battery Minerals’ Managing Director, Jeremy Sinclair, ThirdWay has extensive experience and networks which would be made available to Battery Minerals as part of the project funding process. “ThirdWay specialises in securing not just traditional capital but also funding from large development organisations and governments,” Sinclair said. “Their under- standing and presence in Mozambique,

16  MODERN MINING  September 2019