Modern Mining November 2019

MINING News

Commercial production at Nayega approaches

tial to develop such a refinery for the Nayega project. The decision was taken based on confirmation of the licence and the excellent leaching results from test- work completed on samples obtained from the transitional and deeper saprolitic zones within the Nayega orebody. “The Council of Ministers Decree authorising the grant of the exploitation permit for our flagship Nayega manganese project is transformational and a major mile- stone for the company,” commented Russel Lamming, CEO of Keras Resources. “Our strategy of proving up the project through the fully funded 10 000-tonne bulk sample programme has been validated, and with- out investing any further capital, Keras can transition seamlessly from Explorer to Producer. The installed processing capacity allows us to commence production of ben- eficiated 38 % manganese ore at a rate of 6 500 tonnes per month – this is planned for the first quarter of 2020. “Concurrently, we will look to imple- ment Phase 1 of the expansion programme through the installation of a new 70 t/h scrubber plant to be constructed in paral- lel with our existing 25 t/h plant. This gives us the flexibility to use the existing plant as both a production plant in the short-term, but also as a sampling plant when we start assessing the feasibility of producing battery-grade manganese. The company is currently in discussions with various off- takers to provide finance for the expansion programme.”  statement expected in Q1-2020. Eric Zurrin, Chief Executive Officer, commented: “The company is pleased to announce a significant increase in reserves and resources at the Newly Drilled Targets, following a short and low-cost campaign that was completed in September. We have high expectations that the targets will con- tinue to grow both in size and number as we look to add to our mine life at New Luika. “We have restated the reserve at Ilunga, which was insufficiently drilled ahead of declaration in 2017. Grade control under- taken during the period provides for a more accurate representation and increases con- fidence in Ilunga’s contribution to the plant over the coming years.” New Luika, now in its seventh year of production, is comfortably on track to meet guidance for 2019 of 80 000 to 84 000 ounces of gold production at an AISC of US$740 to US$800 per ounce. 

View of the Nayega site showing the bulk sample programme, which was completed earlier this year, in progress (photo: Keras Resources).

Keras Resources reports that the authori- ties in Togo have granted a licence for large-scale exploitation of the manganese deposit at Nayega in the north of the coun- try to its 85 %-owned subsidiary, Société Générale de Mines (SGM), which holds an exploration permit over the project. The exploitation permit is expected to be concluded by year end allowing commercial production at Nayega to com-

mence in the first quarter of 2020. Initial operations will be based upon shipping of ore to smelter end users; how- ever, AIM-listed Keras believe that there is potential to add significant value by the production of manganese sulphate for the fertiliser and battery market as a second stage development. As a result, Keras has appointed Perth-based Simulus Engineers to conduct a Scoping Study on the poten-

Shanta Gold updates its reserves and resources Shanta Gold, listed on AIM, has provided a reserve and resource update as at 30 September 2019 at the New Luika Gold Mine (NLGM) in south-western Tanzania. The new resources and reserves have been estimated following a drilling pro- gramme for the 6-month period from 1 April 2019 to 30 September 2019, which totalled approximately 8,5 km and consisted of 81 holes all located within 4 km of the plant, at a cost of around US$1 million.

already announced in July 2019), up 219 % from the 57 916 ounces grading 1,77 g/t at end-December 2017. In addition, new inferred resources of 94 007 ounces grading 2,75 g/t, up 26 % from 74 427 ounces grading 1,71 g/t, have been estimated at the Newly Drilled Targets, with further drilling planned to prove this up. At one of the company’s existing min- ing areas, Ilunga, underground reserves have decreased by 44 000 onces since the reserves declared in March 2017 following grade control drilling and a revised resource model design. Since 30 September 2019, drilling has been ongoing on the mining licences and across other regional targets in the Lupa goldfield. An exploration update is anticipated prior to year-end 2019 with a consolidated reserves and resources

This drilling has added new probable gold reserves totalling 135 438 ounces grading 4,07 g/t Au at Bauhinia Creek Deep West, Elizabeth Hill North, Bauhinia Creek North and Black Tree Hill (the ‘Newly Drilled Targets’). Drilling at these targets has resulted in indicated resources of 219 408 ounces grading 3,19 g/t (inclusive of the abovemen- tioned reserves and the 83 543 ounces

16  MODERN MINING  November 2019