Modern Mining July 2015

COUNTRY FOCUS – BOTSWANA

within six months. This timescale would be dictated by the fact Galaxy’s existing process- ing plant – which incorporates CIL and BIOX facilities and which has the capacity to treat 16 000 tonnes per month – would need some refurbishment. The plant lends itself to expan- sion through the addition of larger mills and flotation equipment so we would probably look at undertaking a scoping study on increasing production in the medium term.” Summing up, Byron says he is very positive about the future of both Galane and the Mupane operation. “Mupane has now produced well over 650 000 ounces of gold since it was com- missioned and it certainly has the potential to produce another several hundred thousand ounces over the next several years, provided we can get in all the exploration we need to do and build up fresh reserves. The plant is working well and we’re managing to maintain a good throughput from a variety of sources. The Tau Underground will anchor the operation for the next three or four years and should have a posi- tive impact on our cash costs. “Certainly, the current gold price is as chal- lenging to us as it is to most other gold miners but we believe that we can continue to mine profitably at Mupane even if the price dips below US$1 000, as we do have enormous flex- ibility in sizing production to the prevailing gold price. So the outlook for Galane – which is debt free and unhedged – is very good, and will be even better if we can finalise the Galaxy transaction,” he concludes. Photos by Geoff McLoughlin of Mupane Mining

have inhibited Galane’s ability to carry out all the exploration it needs to do on its properties and says the company is looking at bringing in a joint venture partner to assist with this task. “We’re talking to several parties on a farm-in arrangement,” he says. “We already have a large number of drill-ready targets, so we’re keen to get an agreement in place sooner rather than later. This exploration is vital if Mupane is to have a future into the 2020s.” Discussing Galane’s proposed acquisition of Galaxy Gold (a company founded by well- known mining entrepreneur Peter Skeat), Byron says the conclusion of the deal – which would result in Galane having an initial 78 % stake in the Galaxy – is subject to the satisfac- tory outcome of a very intensive due diligence process which is currently ongoing. “The attraction is the 1,6 million ounces of gold that Galaxy controls in the Barberton Greenstone Belt,” he states. “The key asset is the historic Agnes mine, which started up in the late 1880s, and which has seen some production in recent years, although on a very small scale. All told, the Galaxy assets have produced over a million ounces of gold over more than a century of on and off operation. “I personally know the Barberton area well but, even more importantly, our COO, Wayne Hatton-Jones, has an in-depth knowledge of Galaxy, having acted as its COO several years back. The mining methods required would be somewhat similar to what we’re using at Mupane, so this is another plus. If the deal does go through, we could probably be producing

Stockpiled ore ready to be screened at the Tekwane surface ore deposit.

“This exploration is vital if Mupane is to have a future into the 2020s.” Charles Byron, Director, Galane Gold

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July 2015  MODERN MINING  27