Modern Mining September 2017

September 2017 Vol 13 No 9 www.crown.co.za M ODERN MINING IN THIS ISSUE…  Big Zinc deposit the focus at Kipushi  Bisie tin project to start producing in 2019  Pan African breaks first ground at tailings project  Sabodala provides template for Banfora

MODERN M I N I N G

CONTENTS

SEPTEMBER 2017

ARTICLES

REGULARS MINING NEWS 4 New era of production draws closer at Kipushi 6 Barloworld opens state-of-the-art distribution facility 7 Substantial resource expansion looms at Kakula 8 Wescoal on track to double its production 8 T3 copper resource continues to grow 9 Algold granted mining licence for Tijirit 10 Walkabout updates DFS on graphite project 11 Large diameter drilling planned at Zebediela 12 Strong quarterly performance by Yaramoko 13 Montepuez enjoys a record month of production 14 Mining agreement for Balama project finalised 15 Cardinal’s Namdini gold resource tops 7 Moz PRODUCT NEWS 40 Otjikoto to get 7 MW of solar power 41 Slurry valves increasingly being put to the test 42 Specialised equipment needs specialised care 43 M&C offers an integrated service across Africa 44 Rock intrusions a problem when specifying sizers/breakers 45 Osborn goes high-tech with upgrade programme 46 Coal mining customer opts for Sykes pumps 46 MSA Africa introduces integrated harness system 47 Wheel mover attachment from Bobcat 48 Cutting maintenance budgets can prove costly COVER 16 New Cat mining truck for smaller underground spaces TIN 20 World’s best tin deposit on track for production in 2019 DIAMONDS 26 Venetia Underground Project surges ahead GOLD 30 Elikhulu tailings project moves into construction 34 Banfora gold plant to be modelled on Sabodala EQUIPMENT 38 Sandvik launches loader for low-profile mining operations

Editor Arthur Tassell Advertising Manager Bennie Venter e-mail: benniev@crown.co.za Design & Layout

Darryl James Circulation Karen Smith Publisher Karen Grant

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Deputy Publisher Wilhelm du Plessis Printed by: Shumani Mills Communications

The views expressed in this publication are not necessarily those of the editor or the publisher.

Published monthly by: Crown Publications cc P O Box 140, Bedfordview, 2008

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Tel: (+27 11) 622-4770 Fax: (+27 11) 615-6108 e-mail: mining@crown.co.za www.modernminingmagazine.co.za

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Cover Barloworld Equipment has deliv- ered three Cat AD22 articulated underground trucks to Mopani Copper Mines in Zambia. The AD22, launched last year, is Caterpillar’s smallest articulated dump truck. See story on page 16 for further details.

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Average circulation (April–June 2017) 4277

September 2017  MODERN MINING  1

COMMENT

Mining in Tanzania in turmoil

T he mining industry is currently under pressure in many parts of Africa from governments seeking a bigger share of the mining pie, no more so than in Tanzania where President John Magufuli, aka ‘The Bulldozer’, has launched what appears to be an all-out assault on the country’s mining companies. While his actions might play well to the ‘man in the street’, they are clearly going to lead to a dramatic loss of mining revenues and have already impacted on Tanzania’s standing as an attractive destination for mining investment. The company bearing the brunt of the President’s wrath is, of course, LSE-listed Acacia Mining, which operates the Bulyanhulu, North Mara and Buzwagi gold mines and is Tanzania’s biggest gold producer. It has been accused of under-declaring the value of concen- trate exports from two of its mines (Bulyanhulu and Buzwagi) over a long period, resulting in a huge loss to the Tanzanian fiscus. How big a loss, you might ask? Well, accord- ing to the Tanzanian Revenue Authority, Acacia owes US$40 billion in unpaid taxes and approx- imately US$150 billion in penalties and accrued interest. These are frankly incredible figures which bear no relation to reality and which Acacia (even assuming it were guilty of the infractions it is accused of, which it vehemently denies) has no prospect of paying. After all, the total amount claimed of US$190 billion is over 200 times Acacia’s market value and more than four times the entire 2016 GDP of Tanzania. The turmoil in Tanzania started in March this year, when the government imposed a ban on gold/copper concentrate exports. More recently and quite arbitrarily, it has passed new legis- lation altering the legal and regulatory regime governing the resources sector, in the process over-turning what should have been rock solid agreements already in place with some min- ing companies. In addition, it has banned the issuing of new mining licences. According to Magufuli, this ban will be lifted once “things are in order”, whatever that means. In response to these moves, Acacia said on 4 September that it had decided “to commence a programme to reduce operational activity and expenditure at Bulyanhulu in order to preserve the viability of our business over the longer term. This programme will include the pres- ervation of all assets and equipment to enable the mine to resume ordinary course operations should the export ban be lifted and the operat- ing environment stabilised.” Acacia added that as a result of the planned reduction in operational activity, it now expected “annual production to be in the order of 100 000 ounces lower than the bottom of the previous

guidance range of 850 000-900 000 ounces.” Petra Diamonds has also been hit by the new, aggressive mood of the government, confirming on 11 September that a not insignificant (71 654 carats) parcel of diamonds from its Williamson mine (which is 25 % owned by the State) had been blocked from export to Petra’s marketing office in Antwerp. The government claims the consignment was significantly under-valued and – as I write this – the latest news is that two government officials have been arrested for ‘eco- nomic sabotage’ relating to this under-valuation. In its statement on the incident, Petra says it complies fully with all legislation in Tanzania and with the provisions of the Kimberley Process and notes that the government “has complete oversight of the diamonds produced at the mine, which are physically controlled by a number of different government representa- tives in conjunction with Petra from the point of recovery until the point of sale.” Another casualty of the current uncertainty surrounding Tanzania’s mining sector is the recent deal between Shanta Gold and Helio Resource Corp, in terms of which Shanta was going to acquire Helio and – as part of the transaction – Helio’s SMP project which has gold resources of 635 koz, with all the deposits located within trucking distance of Shanta’s New Luika mine in the Lupa goldfield. Shanta has now terminated the agreement (a move which Helio is challenging), citing the “poten- tial impact on Helio of the bills signed into law on 10 July 2017.” President Magufuli is on record as saying Tanzania’s people “must profit from our God- given mineral resources”. I don’t think anyone would dispute this proposition and indeed Tanzania is already benefitting very nicely from its minerals industry, with Acacia (and its predecessor companies), for example, having invested over US$4 billion in the country since start-up over 15 years ago. Over this period, Acacia has also spent more than US$3 bil- lion with Tanzanian suppliers, invested over US$75 million in communities and paid over US$1 billion in taxes and royalties. Perhaps by the time these words gets into print some progress might have been made in resolving the standoff between the Tanzanian government and the mining industry. But I’m not counting on it. President Magufuli seems intent on pursuing a ‘bull at a gate’ approach and one can only speculate where it will all end. Even if some sort of compromise is even- tually worked out, the damage will have been done and I doubt that Tanzania will be recover- ing its reputation as a ‘mining friendly’ country

The turmoil in Tanzania started in March this year, when the government imposed a ban on gold/copper concentrate exports.

any time soon. Arthur Tassell

September 2017  MODERN MINING  3

MINING News

New era of production draws closer at Kipushi

Robert Friedland, Executive Chairman of TSX-listed Ivanhoe Mines, and Lars-Eric Johansson, Chief Executive Officer, have jointly announced that negotiations are underway with government agencies – Gécamines, the state-owned miner and Ivanhoe’s partner at Kipushi, and SNCC, the DRC’s national railway company – and potential project financiers to advance agreements to launch a new era of com- mercial production at the upgraded Kipushi mine in the DRC. The Kipushi zinc- copper-silver- germanium mine is owned by Kipushi Corporation (KICO), a joint venture between Ivanhoe Mines (68 %) and Gécamines (32 %). Kipushi is on the Central African Copperbelt in the province of Haut- Katanga, approximately 30 km south-west of the provincial capital of Lubumbashi and less than 1 km from the international border with Zambia. Built and then operated by Union Minière for 42 years, Kipushi began min- ing a reported 18 % copper from a surface open pit in 1924. It was the world’s rich- est copper mine at the time. Then it transitioned to become Africa’s richest underground copper, zinc and germanium mine. State-owned Gécamines gained control of Kipushi in 1967 and operated the mine until 1993. Over a span of 69 years, Kipushi pro- duced a total of 6,6 Mt of zinc and 4,0 Mt of copper from 60 Mt of ore grading 11 % zinc and approximately 7 % copper. It also produced 278 tonnes of germa- nium and 12 673 tonnes of lead between 1956 and 1978. There is no formal record of the production of precious metals as the concentrate was shipped to Belgium and the recovery of precious metals remained undisclosed during the colonial era; however, drilling by Ivanhoe Mines has encountered significant silver values within Kipushi’s current zinc- and copper- rich deposits. Most of Kipushi’s historical production was from the Fault Zone, a steeply-dipping orebody rich in copper and zinc that ini- tially was mined as an open pit. The Fault Zone extends to a depth of at least 1 800 m below surface, along the intersection of a fault in carbonaceous dolomites. The founding era of mining at Kipushi ended in 1993, when it was placed on care

Inspection of a new underground scoop tram loader at Kipushi (photo: Ivanhoe).

to refine the findings of the PEA and to optimise the mine’s redevelopment sched- ule, life-of-mine operating costs and initial capital costs required to return the mine to production, taking into consideration the significant capital already invested to date on critical rehabilitation work. Ivanhoe expects to complete the PFS before the end of this year. “The KICO team, which includes more than 390 Congolese nationals, has done a fantastic job in safely upgrading the mine’s underground infrastructure in anticipation of restarting production,” said Friedland. “Given the extremely high zinc grades at Kipushi, the mine has the potential to become one of the world’s largest and lowest-cost zinc producers, while also pro- ducing significant quantities of copper, silver and germanium. With the current, long-term, bullish market sentiment for zinc, we look forward to working with our partner, Gécamines, prospective proj- ect financiers and our team at Kipushi to fast-track completion of the remaining development at the mine. “ The PFS will focus on the mining of the Big Zinc deposit, whose exceptional grade is more than twice as high as the mea- sured and indicated mineral resources of the world’s next-highest-grade, major zinc project, according to Wood Mackenzie, a leading international industry research and consulting group. In addition to the Big Zinc deposit, Kipushi has several copper-rich zones that also contain silver, germanium and zinc. Measured and indicated mineral

and maintenance due to a combination of economic and political factors. Before Kipushi was idled, Gécamines discovered the Big Zinc deposit at a depth of approximately 1 250 m below sur- face and adjacent to the producing Fault Zone. The Big Zinc’s mineral resources have never been mined. Ivanhoe’s drill- ing has upgraded and expanded the Big Zinc deposit’s measured and indicated mineral resources to an estimated 10,2 Mt grading 34,9 % zinc, 0,65 % copper, 19 g/t silver and 51 g/t germanium, at a 7 % zinc cut-off, containing an estimated 7,8 billion pounds of zinc. Now, the planned restoration of pro- duction at Kipushi is based on initial mining that will be focused on the Big Zinc deposit. According to Ivanhoe, excellent progress has been made by KICO in mod- ernising the Kipushi mine’s underground infrastructure as part of preparations for the mine to resume commercial produc- tion. With the underground upgrading programme nearing completion, KICO’s focus now will shift to modernising and upgrading Kipushi’s surface infrastructure to handle and process Kipushi’s high-grade zinc and copper resources. The current mine redevelopment plan, as outlined in the May 2016 independent, preliminary economic assessment (PEA), has a two-year construction period with quick ramp-up to a projected, steady-state, annual production of 530 000 tonnes of zinc concentrate. A pre-feasibility study (PFS) is underway

4  MODERN MINING  September 2017

MINING News

resources contained in the copper-rich Série Récurrente Zone, Fault Zone, and Fault Zone Splay total 1,63 Mt at grades of 4,01 % copper, 2,87 % zinc and 22 g/t sil- ver, at a 1,5 % copper cut-off, containing 144 million pounds of copper. The main production shaft for the Kipushi mine, Shaft 5, has been upgraded and re-commissioned. The main per- sonnel and material winder has been upgraded and modernised to meet global industry standards and safety criteria. The Shaft 5 rock-hoisting winder, which had an annual hoisting capacity of 1,8 Mt, is being upgraded and is expected to be fully oper- ational early next year. Underground upgrading work is continuing on the crusher and the rock load-out facilities at the bottom of Shaft 5 and the main haulage way on the 1 150‑metre level between the Big Zinc access decline and Shaft 5. This work is expected to be completed before the end of the first quarter of 2018. The planned primary mining method for the Big Zinc deposit in the PEA and PFS is sublevel long hole, open stoping, with cemented backfill. The crown pillars are expected to be mined once adjacent stopes are backfilled using a pillar-retreat mining method. The deposit is expected to be accessed via the existing decline and without any significant new development. The main levels are planned to be at 60-m vertical intervals, with sublevels at 30-m intervals.

Kipushi teammembers working on the new 1 150-metre level ore conveyor system (photo: Ivanhoe).

Based on recent, additional metal- lurgical test work and trade-off studies, Ivanhoe has revised the planned process- plant design for the PFS. The optimised plant utilises dense media separation (DMS), followed by milling and a flotation recovery plant. The addition of milling and a flotation recovery plant improved the combination of concentrate grades and recoveries from what the recent metallur- gical test work determined was achievable from a DMS plant only. Ivanhoe has initiated a new coopera- tion agreement with SNCC to rehabilitate the inactive spur line that connects the est, Nexus will have the option to acquire the remaining 10 % interest in the property through a cash payment of US$1 million with a 1 % net smelter return royalty remaining with BELEMYIDA. “We are very pleased to add Rakounga to our portfolio, which effectively repre- sents a 700 per cent increase in size to the Bouboulou concession area,” said Nexus President and CEO Peter Berdusco. “With just under 300 km 2 of ground, we can now follow both the already established Bouboulou 2 and Pelatanga-Rawema mineralised trends for several kilometres to the southwest. There is significant arti- sanal activity along these trends and we’re excited to continue our exploration efforts there in the coming months.” ThemainBouboulou concession covers an

Kipushi mine to the Congolese national railway and to the overall north-south rail corridor that links the DRC Copperbelt to Durban in South Africa. “Ivanhoe and SNCC are negotiat- ing details of an infrastructure financing agreement for the railway rehabilitation works and the terms of operation for the spur line,” said Johansson. “This coop- eration on public infrastructure projects mirrors Ivanhoe Mines’successful, ongoing partnership with the DRC’s state-owned power company, La Société Nationale d’Electricité, for the rehabilitation of three hydropower plants.”  area of 38,3 km 2 and is located approximately 100 km north by northwest of the capital city of Ouagadougou. Exploration on the permit area has been conducted by Boliden (1997 to 1999), Riverstone Resources (2005 to 2011) and Roxgold Inc (2011 to 2012). The property is situated at the north end of the Boromo greenstone belt underlain by an alternating sedimentary-basalt-sedi- mentary-volcanic progression which strikes generally northeast-southwest, and is bisected by the Sabce Shear Zone, which hosts numerous artisanal gold zones over its 120-km length plus the Bissa mine oper- ated by Nordgold. Four zones of gold mineralisation were previously identified on the property termed Koala, Rawema, Bouboulou 2 and Pelatanga. A fifth zone, Rawema West, was recently identified by Nexus geologists, as announced in June this year. 

Nexus Gold adds Rakounga property to its portfolio Nexus Gold Corp, listed on the TSX-V, has signed a definitive agreement with BELEMYIDA SA which will give it the right to earn up to a 100 % interest in the Rakounga gold property in Burkina Faso.

The 250-km 2 property is contiguous to Nexus’s Bouboulou gold concession. It borders Bouboulou on the west and south sides and hosts the Bouboulou 1 gold showing, which is the southern extension of the Bouboulou 2 trend. Bouboulou 1 is an active orpaillage with shaft workings that extend down approximately 80 m. Nexus will have an option to acquire a 90 % interest in the property, in consider- ation for cash payments of US$400 000 and the issuance of 575 000 common shares of Nexus, over a period of three years. Following the acquisition of a 90 % inter-

September 2017  MODERN MINING  5

MINING News

Barloworld opens state-of-the-art distribution facility

abreast of their orders when they come to the facility to collect spare parts. Customers will need to have their customer numbers handy as successful order tracking will take place using their customer numbers.  Barloworld Equipment has been invest- ing significantly in newworld-class facilities to boost capacity and improve service to its customers. The company recently launched a state-of-the-art components rebuild centre in Boksburg and a world- class Caterpillar-accredited training facility at Isando to develop a new pool of highly proficient technicians and help the com- pany bring more female employees into its fold in line with its gender diversity targets. Through ex tensive recruitment and training programmes, Barloworld Equipment is on a quest to have 40 % of its workforce composed of women by 2020, an initiative that is strongly supported by Caterpillar. Barloworld Equipment is today one of the world’s market leaders in the provision of heavy earthmoving machines, thanks to its 90-year partnership with Caterpillar that has been the bedrock for Barloworld Equipment’s expansion beyond South Africa and into 10 other Southern African markets, Iberia, Siberia and the Russian Far East. Barloworld Equipment has never looked back since 1927 when Charles ‘Punch’ Barlow, the eldest son of Barloworld’s founder, Billy Barlow, sold the first Caterpillar tractor to a sugar-cane farmer after he had won a bet against the farmer that the tractor could out-plough a span of oxen. After making the historic Caterpillar sale, Punch travelled to the United States to negotiate with Caterpillar to acquire a licence to make Barlows the sole and offi- cial sales and service Caterpillar dealer in South Africa. The official agreement between Punch and Caterpillar was signed on 17 August 1927, leading to the opening of dealer- ships in Durban and the Free State. “Our success as a company is rooted in our close and long-standing partnership with Caterpillar. As a result, we have both become global brands and Barloworld Equipment is very proud to be one of the world’s leading Caterpillar dealers,” said Sewela. 

Inside the new warehouse, which is a joint initiative of Barloworld Equipment and Caterpillar Inc. a principal supplier of Caterpillar machines to customers who mainly operate in the mining and construction sectors.

Barloworld Equipment recently crowned its 90-year anniversary as a Caterpillar dealer with the official opening of a new, state-of-the-art distribution warehouse that will dramatically reduce the time it takes for customers to order and collect spare parts for their machines. Barloworld Equipment Johannesburg, located at the iconic Barloworld Equipment’s Isando campus, was unveiled at a ceremony attended by senior execu- tives of both Barloworld Equipment and Caterpillar, customers, government offi- cials, and other key stakeholders. Dominic Sewela, CEO of Barloworld Limited, the parent company of Barloworld Equipment, said the investment in the launch of the parts distribution facility was true testament to Barloworld Equipment’s commitment to Southern Africa, where it is

“The new parts facility will dramatically improve the turnaround time from order to collection of parts for our customers. The reduction in the turnaround time will bring enormous benefits to our customers as it will quicken repairs and maintenance work on the machines we supply to them. “This will help reduce downtime and boost productivity for our customers, putting them in an ideal position to take advantage of an anticipated recovery in commodity markets,” said Sewela. The access controlled, 60 000 m 2 distribution facility – which will also accommodate Caterpillar staff – boasts an electronic tracking system that will reduce queues for customers and keep them and increasing demand from electric vehicles.” An SML is designed for larger, long- life mining and processing projects such as Ngualla, and may be granted over an area of up to 35 km 2 (as opposed to maxi- mum of 10 km 2 for a Mining Licence) and for the life of the orebody as stated in the Feasibility Study (compared to a ML of 10 years maximum). The SML application lodged for Ngualla is for a duration of 31 years over an area of 18,14 km 2 . 

Peak applies for Ngualla Special Mining Licence ASX-listed Peak Resources has lodged an application for a Special Mining Licence (SML) for the Ngualla rare earth mine and multi-stage processing plant in Tanzania. Managing Director Darren Townsend said: “The lodging of the SML application is a significant milestone for the project. The grant of an SML will allow the com- pany to move forward with discussions on funding arrangements for the devel- opment of the project with perfect timing in the current climate of rising NdPr prices

6  MODERN MINING  September 2017

MINING News

Substantial resource expansion looms at Kakula

Ivanhoe Mines, listed on the TSX, has announced assay results from another 43 holes as part of the ongoing 2017 drill- ing campaign at the company’s Tier One Kamoa-Kakula copper project, near the mining centre of Kolwezi in the DRC. Exploration drilling at Kakula West, located on the western end of the cur- rently defined high-grade, essentially flat-lying Kakula mineralised trend that now extends at least 12 km, has confirmed a significant area of mineralisation with characteristics and grades similar to the high-grade Kakula mineral resource area located to the east. An area of 2 km by 1 km has already been drilled off at Kakula West on an approximate 300-m grid pattern, while the drilling in the ‘saddle’ area between Kakula West and Kakula is rapidly being in-filled in preparation for an updated resource esti- mate for the Kakula Discovery expected by the end of this year. The Kakula Discovery continues to remain open along a westerly-south-east- erly strike. Based on recent drilling results at Kakula, and given the impressive con- tinuity of the high-grade mineralisation seen to date, Ivanhoe’s geologists expect that by this October drilling will have expanded the delineated strike extent of the area encompassing indicated and inferred mineral resources by approxi- mately 60 %, and that the Kakula and Kakula West deposits will form a continu- ous mineral resource area. “We’re looking forward to providing our shareholders and all Kamoa-Kakula stake- holders with another substantial resource expansion for the coming holiday sea-

son,” said Robert Friedland, Ivanhoe’s Executive Chairman. “Kamoa-Kakula already is independently ranked as the fifth-largest copper deposit in the world. Seeing the unprec- edented rate of growth of high-grade copper resources since drilling began at Kakula in May 2016, I am confident now that soon it will be among the top three. “ The remarkable con-

Chalcocite-rich drill core from DD1210 (from a depth of 938 m) drilled at the western edge of the Kakula resource area.

sistency of the ultra-high-grade copper mineralisation at the Kakula Discovery is unlike anything geologists have ever seen in the DRC’s Copperbelt. The discovery remains open in virtually all directions, so the real question is, how much bigger and better is Kakula going to get?” In response to the unprecedented explo- ration success at Kakula, IvanhoeMines and

Zijin Mining are continuing with the accel- erated exploration programme. Fourteen rigs are drilling in the Kamoa-Kakula project area: 11 in the Kakula Discovery area; one drilling in the Kamoa Nord target area; one drilling to the south of Kakula exploring the Mulamena target; and one conducting ster- ilisation drilling in areas planned for mine infrastructure development.  design and equipment acquisition and will be the sole operator. As remuneration, Tango will receive 60 % of the proceeds from the sale of produced stones. All of Tango’s operational costs are deductible. The property is located immediately near the community of N’zagi (Andrada) and 95 km south-east of Dundo, the pro- vincial capital of Lunda Norte, which has a recently reopened airport with direct ser- vice to Luanda. Tango will, over the coming months, complete a full geological assessment of the property and plans to commence alluvial diamond production as soon as practical. 

Tango Mining signs Angolan agreement Tango Mining, listed on the TSX-V, has signed a three-year renewable services agreement for mining andmarketing of dia- monds with Txapemba Canguba RL which is a ‘Cooperativa Exploração Semi-Industrial de Diamantes’located in the Municipality of Cambulo in Angola’s Lunda Norte Province. Txapemba has an 84 km 2 concession for the semi-industrial exploitation of dia- monds within the Luembe River basin in an area that was a past alluvial diamond pro- ducer and well known for both alluvial and kimberlite diamonds.

Tango will be responsible for capital expenditures associated with alluvial mine

September 2017  MODERN MINING  7

MINING News

Wescoal on track to double its production

retained. However, Keaton and its associ- ated brand will, for the immediate future, continue to be used and exist as a wholly- owned subsidiary of Wescoal. “Inorganic growth initiatives will still be focused on acquiring additional resources and strategic interests in key coal related infrastructure where there are value enhancing growth opportunities,” he points out. Sulaiman says transformation is at the centre of the company’s employment and ownership principles. “In keeping with the company’s 51 % minimum black owner- ship, its enlarged shareholder base is now around 51,68 % and once there are further shareholdings identified, but not yet veri- fied, this figure could be as high as 58,09 %. In addition, a broad-based ownership scheme involving employees is planned for implementation which is likely to fur- ther enhance BEE ownership. ”Our strategic priorities remain to maxi- mise value from existing assets in a safe and responsible manner, to sustainably grow the business, and to deliver solid and predictable operational and financial performances. We will continue to plan and execute projects in a considered, risk- basedmanner to manage and realise value from our growth plans.”  announced on 7 August 2017, has com- menced, initially with four drill rigs testing the potential for additional resource exten- sions, high grade vein mineralisation extending down dip from the planned open pit, and IP and EM targets north of T3. MOD has also announced plans to dou- ble its exploration budget to approximately A$10 million at its Botswana copper project for the 12 months commencing 1 October 2017. The budget increase is in recogni- tion of the substantial untested potential that exists within the company’s regional licence holdings. MOD plans to extend drilling well beyond T3, where a 70-hole diamond drilling cam- paign is in progress, to encompass district scale targets including the >50 km long T3 Dome surrounding T3 and the >60 km long T20 Dome 100 km west of T3. In addition to theexistingT3drillingcurrentlyunderway, the revised exploration programme is expected to includemore than 160 diamond and 40 RC holes with the majority to focus upon targets along theT3 Dome andT20 Dome. 

Wescoal’s acquisition of Keaton Energy in July has placed the coal-mining and dis- tribution group squarely on track to lift its annual production from under 4 Mt/a to 8 Mt/a ROM in the short to medium term and the Trading division is in line with business expectations, say CEO Waheed Sulaiman. A Wescoal Holdings Limited market update recently released on the JSE high-

lights the activities of the group which has moved on its intentions to play a role as a consolidator in the junior coal mining sec- tor. Sulaiman says Wescoal is prioritising a successful integration to unlock value from the Keaton business. “The Group restructure and rede- ployment process is also in line with the regulatory framework and key technical and mining skills have been successfully

Mining operations at the Vanggatfontein mine near Delmas – one of the mines now in the Wescoal stable as a result of its acquisition of Keaton Energy (photo: Wescoal).

T3 copper resource in Botswana continues to grow ASX-listedMOD Resources has announced a substantial increase in the mineral resource at the T3 copper project (T3) in Botswana following inclusion of holes completed in the March quarter 2017.

cut-off (8,9 Mt at 1,27 % Cu and 12,5 g/t Ag) has converted into the high confidence measured resource category. Assuming a higher cut-off grade (>1,0 % Cu), the revised total mineral resource comprises 20,57 Mt at an average grade of 1,43 % Cu and 14,7 g/t Ag. MOD’s Managing Director, Julian Hanna, said, “The 16 % uplift to more than 400 000 tonnes contained copper has potential to add significant value and profitability to this project. Coincidentally, copper has also risen approximately 30 % since the maiden resource was announced, approaching the US$3/lb copper price used for the upside case in the original T3 scoping study we released on 6 December 2016. “As a result of these very positive devel- opments, our feasibility study team is rethinking the planned mining schedule and processing rates to be used in the pre- feasibility study (PFS).” The next phase of drilling at T3 (Phase 2),

T3 forms part of the joint venture (JV) between MOD (70 %) and AIM-listed Metal Tiger (30 %) which includes an extensive licence holding in the central and western parts of the Kalahari Copperbelt. The in- country operating company is Tshukudu Metals Botswana(Pty) Ltd. Assuming the cut-off grade (>0,5 % Cu) used for the maiden resource announced in September 2016, the revised resource estimate represents approximately a 27 % increase in total resource tonnes to 35,97Mt and a 16 % increase in contained copper to 408,9 kt Cu, compared with the maiden resource. The copper grade is 1,14 % Cu and the silver grade is 12,8 g/t Ag. In addition, 25 % of the total resource tonnes of the revised resource at 0,5 % Cu

8  MODERN MINING  September 2017

MINING News

Algold granted mining licence for Tijirit Algold Resources, listed on the TSX-V, reports that the Mauritanian Council of Ministers has issued a formal decree granting a 30-year min- ing licence for its Tijirit gold project.

completed several rounds of financing to raise over $20 million, including $3,7 million from Mauritanian partners, built a growing exploration camp, carried out 45 000 metres of drilling in three phases, filed a NI 43-101 compliant resource report and received the formal grant of a 30-year mining lease from the Government of Mauritania,” added Algold Chairman Benoit La Salle. “Algold has made significant progress in a short period of time and we plan to continue to build on this suc- cess with a focus on execution and results.” 

“This milestone is a significant achievement for both Mauritania and Algold. It is an impor- tant step in our growth plan for Tijirit, as well as for the development of other deposits within the licensed area, which extends over some 300 km 2 ,” said François Auclair, Algold’s CEO. “In less than 18 months, Algold has success- fully acquired a highly prospective property,

Drilling at the Tijirit gold project in 2016 (photo: Algold Resources).

Lucara completes capital projects at Karowe within this size fraction. The commissioning of the circuit has been completed and verifi- cation of the diamonds recovered within this size frequency distribution is being confirmed against historical recoveries.

Canada’s Lucara Diamond Corp has announced the completion of the Mega Diamond Recovery (MDR) and the Sub-middles XRT cap- ital projects at its Karowe mine in Botswana within budget and ahead of schedule. The company’s MDR circuit treats material in the size range between 50 mm and 120 mm and is located directly post the primary crusher and ahead of the process plant. This design maximises the upfront recovery of exceptional diamonds prior to the comminution processes where diamond damage may occur and reve- nue lost. Commissioning of the circuit has been completed and the systemhas been integrated into the existing process stream. The Sub-middles XRT circuit processes material in the size range between 4 mm and 8 mm. The circuit has replaced the need for a dense medium circuit and five diamond recovery unit processes for treating diamonds

“The commissioning of the MDR and Sub- middles XRT circuits advances the company’s ability to efficiently recover its diamonds and maximise value for its exceptional diamonds,” saidWilliam Lamb, Lucara’s President and CEO. “The Sub-middles XRT circuit cost effectively processes the variable yield material from the south lobe through the utilisation of a single unit process which reduces feed to the more costly concentration and recovery pro- cessing units. The completion of these two capital projects concludes our major capi- tal expenditures for upgrading the process facilities, all of which have been funded from internal cashflows.” 

September 2017  MODERN MINING  9

MINING News

De Beers launches Business Incubator in Limpopo

basis and will cover topics such as mar- ket research, financial management and operational management ultimately con- tributing towards a bankable business plan. One-on-one sessions with entrepre- neurs will assist mentors in evaluating their progress and providing meaningful coaching and support. Upon completion of the programme, the best and bright- est will be selected for the next phase of the programme which includes access to funding and further training and development. The incubation programme at Venetia mine follows that of Voorspoedmine in the Free State which launched in June and has supported 45 entrepreneurs to date. Leading up to the launch event, Gregory Petersen, Senior Commercial Manager Enterprise and Supplier Development for De Beers Consolidated Mines, said: “The mining sector has an important role to play in the socio-economic develop- ment of our region. By empowering and promoting small business, we hope to contribute towards economic growth and job creation.”  Research Institute for Mining and Metal­ lurgy (BGRIMM) in Beijing. A large-scale closed-circuit testwork campaign was undertaken by BGRIMM, which is one of China’s key research facilities and reportedly has world leading expertise in graphite extraction. The sample selected for the BGRIMM testwork was high-grade surface ore (32 % TGC), from the areawheremining is planned to commence. This sample was very similar to the Surface Composite Sample tested at Nagrom Laboratories in Perth in July 2016. After due allowance for fines recovery dif- ferences, the BGRIMM and Nagrom results are very similar. However, Walkabout has decided to moderate the life of mine ratios for Super Jumbo, Jumbo and Large flake sizes in order to mitigate potential process risk. The com- pany says the yield of +500 um flakes is still the highest in its peer group and points out that the fresh material makes up more than 80 % of the mining reserve. The DFS was based on an annual pro- duction of 40 000 tonnes of graphite concentrate with a high-grade feed to the plant of <300 000 tonnes per annum. 

De Beers has launched its second Business Incubator near its Venetia mine operation in Limpopo. The accelerated development programme aims to promote up-and- coming entrepreneurs, as well as small, medium and microenterprises from min- ing communities. The programme will be facilitated by the specialist monitoring and training

company TrioPlus and will provide support to 40 enterprises or entrepreneurs – 20 from each municipal area into two sepa- rate incubation programmes in Blouberg and Musina. The incubation programme kicked off in August with two workshops target- ing existing and aspiring entrepreneurs. Classroom training will run on a monthly

Participants in the De Beers Business Incubator with Venetia mine management and representatives of Blouberg Local Municipality.

Walkabout updates DFS on Lindi Jumbo graphite project A Definitive Feasibility Study (DFS) by ASX- listed Walkabout Resources (WKT) for a proposed open-pit mine and graphite pro- cessing plant at its Lindi Jumbo graphite project in Tanzania was released to the ASX in February this year. Following the subse- quent Tanzanian legislative changes and further metallurgical testwork, WKT has released an update to the DFS. results; and a minor adjustment to the mod- elling payback schedule as per the updated funding plan. Project start-up capital has been reduced from US$38,7 million to US$29,6 million, a saving of US$9,1 million. The pre-tax NPV 10 is now US$302 million as against the previ- ous US$320 million while the pre-tax IRR has increased from 96 % to 108 %.

The weighted average (Base Case) bas- ket price of product is reduced to US$1 564 per tonne from US$1 687 per tonne as a result of a modified metallurgical product mix. Walkabout says detailed engineering and planning has progressed very well over the past six weeks and continues inYantai in China. Provisional approval for partial stage funding has been granted by the project funding partners, CNBMGeneral Machinery Co Ltd, and this allows Jinpeng Mining and Materials Co Ltd to proceed with engineer- ing design and project management. Final equipment selection has taken place following the completion of the optimisation test work at Beijing General

Walkabout says the Updated DFS has been modelled employing only the ore reserve published to the ASX in April 2017. This reserve contains proven and prob- able ore reserves of 5 Mt at 6,13 % TGC for 809 kt of graphite concentrate and com- prises 42 % of the measured and indicated resources only. The DFS has been updated with all available new information to date. In gen- eral, this is in four key areas: the effects of the Tanzanian amendments to the Mining Act 2010; an updated capital estimate pro- vided by Jinpeng Mining and Material Co Ltd as part of the contractual submissions for developing EPCM & F documentation; updated and more reliable metallurgical

10  MODERN MINING  September 2017

MINING News

Botswana Diamonds plans large diameter drilling at Zebediela

Botswana Diamonds, the AIM- and BSE- listed explorer, has provided a further update on its Vutomi Joint Venture in South Africa, which includes the Zebediela and Ontevreden projects. Seventeen reverse circulation percus- sion holes have been drilled at Zebediela on the farms Frischgewaagt, Hartbeesfontein andDoornrivier in Limpopo Province.These holes have been drilled to further delineate the extensive kimberlite pipe/fissure sys- tem and as pilot holes for a Large Diameter drilling programme which is scheduled to commence in October. This, along with previous geological and resource develop- ment work, is targeting the declaration of an inferred resource on the project by the end of the year. Zebediela is located in close prox- imity to the De Beers/SouthernEra

Marsfontein mine, which had an average grade of 172 cpht and diamond value of US$128/ct. Capital payback on the proj- ect – which was active between 1998 and 2000 – was less than four days. At Ontevreden, the company’s latest kimberlite discovery in the North West Province of South Africa, detailed ground geophysics has been completed produc- ing a minimum anomaly size of 100 m x 70 m. Samples of the high interest Group 2 kimberlite have been taken for kimberlitic indicator analyses and these are currently being processed through in-house facili- ties.  The grains will be microprobed at the University of Johannesburg. Ontevreden is close to Petra’s Helam mine which has grades running as high as 500 cpht and diamond values of US$255/ct. 

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A reverse circulation percussion rig drilling delineation holes at Zebediela (photo: Botswana Diamonds).

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IronRidge appoints Exploration Manager AIM-listed IronRidge Resources has appointed Joe Clarry to the position of Exploration Manager. The com- pany says the appointment bolsters its management team as it continues to expand and develop its projects in Africa, in particular its rapidly devel- oping lithium project portfolio. His immediate focus will be on the rapidly advancing Cape Coast lithium project

in Ghana as it moves towards initial drill planning. Clarry’s experience includes exten- sive lithium pegmatite and gold exploration and project studies through- out West Africa and Australia in both grassroots exploration and brownfields settings. More recently, he was involved in the rapid delineation of a spodumene dominant lithium pegmatite in Mali. 

September 2017  MODERN MINING  11

MINING News

TSX-listed Roxgold Inc, which owns and operates the high-grade Yaramoko under- ground gold mine in Burkina Faso, has reported its financial results for the three- Strong quarterly performance by Yaramoko month period ended June 30, 2017. During the reporting period, the com- pany maintained a lost time injury (LTI) ratio of 0,00 and achieved over 3 million

hours worked LTI free. Gold production totalled 27 970 ounces of gold at an aver- age cash operating cost of US$498 per ounce. The company mined 66 044 tonnes of ore for the quarter including 28 628 tonnes of ore from stoping activities while the plant processed 65 159 tonnes of ore at an average head grade of 12,8 g/t Au. Plant availability was 97,2 % and overall recovery was 99,0 % during the quarter. During the three -month period, Roxgold also commenced construction work at site to facilitate the Bagassi South expansion project and started a drilling programme targeting newly identified geophysical targets along the Bagassi Corridor. Bagassi is located less than 2 km south of the 55 Zone (the site of the cur- rent mine) and the Yaramoko plant. “We are very pleased with the contin- ued strong performance at Yaramoko this quarter where we are on track to deliver at the upper end of our annual production guidance and costs were as expected. Grades were in line with plan, and we anticipate grades to be similar in Q3 ahead of increasing in the fourth quarter,” com- mented John Dorward, President and CEO of Roxgold. Located approximately 200 km south- west of Ouagadougou, the capital city of Burkina Faso, in the the Houndé green- stone region, Yaramoko is a new mine which poured its first gold in May last year with commercial production being declared on 1 October 2016. It is expected to produce between 105 000 and 115 000 ounces in 2017.  feasibility study for an 80 000 oz/a heap- leach operation at the Akyanga deposit resulting in an ungeared NPV (at a dis- count of 8 %) and an IRR of US$171 million and 35 % respectively at a US$1 300/oz gold price. This assumes a contract mining scenario with an initial capital cost estimate of US$87,4 million and a total operating cost of US$628/oz. African Mining Consultants (AMC) recently completed a review and re-inter- pretation of the geological model of the deposit and reported a 1,05 Moz JORC inferred resource at a grade of 2,27 g/t Au (using a 1,5 g/t Au cut-off ) within a lower grade envelope of 1,57 Moz at a grade of 1,65 g/t Au (using a 0,5 g/t cut-off grade). 

The camp at the Yaramoko gold mine in Burkina Faso (photo: Roxgold).

Drill programme underway at DRC gold deposit Premier African Minerals, the London- listed mining and exploration company, has provided an update on Casa Mining Limited (Casa) in which Premier has a 4,5 % interest. Casa is a privately-owned mineral exploration company focused on developing the Akyanga gold deposit, part of the prospective Misisi gold project in the DRC.

Casa has a 71,25 % interest in the Misisi project, which is located in South Kivu, approximately 350 km south of Bukavu and 180 km north of Kalemie in the eastern DRC. In 2014, SRK Consultants (UK) reported an inferredmineral resource at the Akyanga deposit of 5,5 Mt at a grade of 1,5 g/t Au for approximately 272 koz of contained metal. SRK has further reported an inferred transition gold mineral resource of 16,2 Mt at a grade of 1,8 g/t Au for approximately 927 koz of contained metal. MDM Engineering Projects, in con- junction with SRK, completed a scoping

Casa has begun a 5 000-m drilling programme with the objective of increas- ing and upgrading the existing mineral resource estimate. The first 2 200 m of the programme are expected to be completed during October 2017.

12  MODERN MINING  September 2017

MINING News

Montepuez enjoys a record month of production

buyers from around the world,” he said. He noted that the ramp-up of the pro- cessing plant had been highly successful, as shown by the record production recorded in August. “We had some initial challenges with the commissioning and ramp-up; however, after resolving these teething problems we have made outstanding progress and can now demonstrate the impressive production capacity of Montepuez.” The Montepuez project consists of four licences covering 19 300 hectares directly adjacent to the world’s largest ruby deposit discovered by Gemfields in 2012. Since supply of rubies from sources outside Mozambique has become frac- tured and unreliable, Mustang believes it stands to capitalise on the current demand around the world for ethically produced rubies by becoming a reli- able, consistent supplier of high-quality rubies. 

Mustang Resources, listed on the ASX and focused on developing its Montepuez ruby project in northern Mozambique, says that preparations for the maiden auction of its rubies are firmly on track, with its inventory rising to 176 522 carats. The latest increase follows a record month of production in August, dur- ing which the plant at the Montepuez project delivered 15 613 carats from the 34 561 tonnes processed. The successful ramp-up of the processing plant means Mustang is com- fortably within reach of its 200 000-carat target for its inaugural rough ruby ten- der, which is scheduled for late October 2017 in Port Louis, Mauritius. Mu s t a ng Ma n ag i ng D i r e c t o r Christiaan Jordaan said the company had also received strong inquiries and support from the industry in respect of the tender.“We have been overwhelmed by the interest shown by leading ruby

The plant at Montepuez delivered 15 613 carats from the 34 561 tonnes processed in August (photo: Mustang).

September 2017  MODERN MINING  13

MINING News

Syrah Resources reports that its wholly owned subsidiary, Twigg Exploration and Mining, Limitada (Twigg), holder of the Balama graphite project, has finalised the negotiation of a Mining Agreement Mining agreement for Balama project finalised with the Ministry of Mineral Resources and Energy of Mozambique. The Mining Agreement was approved at the Council of Ministers weekly ordinary session meeting held on 29 August 2017.

The Mining Agreement consolidates all prior project documents and approvals. It also provides the company with clarity around the governing laws and contrac- tualises the mining rights and other obligations for the project. Balama, located in Cabo Delgado Pro­ vince in the north of Mozambique, will be a simple, low strip ratio, open-pit opera- tion. Processing will utilise conventional processes including crushing, grinding, flotation, filtration, drying, screening and bagging. The processing rate is 2 Mt/a with the nameplate capacity being 380 000 tonnes of graphite concentrate per annum. The project, which is on the verge of production, is expected to produce between 140 kt and 160 kt in the first year of production. During the first 12 months, it is expected to achieve a C1 production cash cost of less than US$400 per tonne with this ultimately expected to reduce to less than US$300 per tonne. According to Syrah, Balama will rank as the world’s largest, low cost, high quality producer of natural graphite. 

The Balama plant site photographed in July this year (photo: Syrah Resources).

Pre-production mining starts at Yanfolila AIM-quoted Hummingbird Resources reported in late August that pre-productionmining had commenced on schedule at its Yanfolila gold project in Mali. Comments Dan Betts, CEO of Hummingbird: “Commencement of mining activities at Yanfolila is a significant milestone for Hummingbird as we continue to bring the project closer to pro- duction by the end of this year. Our contract mining partners, AMS, have mobilised a significant fleet to site and this commitment emphasises the momentum the project has gained throughout the year.” Pre-production mining will ramp up over the next three months as Hummingbird approaches full scale operations. By the end of

November, it is anticipated that over 3 Mt of material will have been moved. The mining fleet currently on site includes one Liebherr 9150 excavator, one Liebherr 9250 excavator, six Cat 777 rigid trucks, five Cat D9 dozers, a Cat 336 excavator and two Cat 980 loaders. During the first phase of mining there will be areas of free-dig material as well as material that will require light blasting. Blasting will be conducted using non-electric down hole delay detonators with ammoniumnitrate, fuel oil (ANFO) for dry holes and emulsion explosives for wet holes. AEL Mining Services will provide an explosive storage and supply service to the mining contractor. Advanced grade control drilling to better delineate the orebody and improve planning and ore scheduling to the mill is ongoing together with state-of-the art Trimble differential GPS and Pix 4D drone mapping for survey and volumetric calculations. Minesched software is being used for short-term and life of mine scheduling with Blockbuster software being used to update the ore reserve model with advance grade control drilling assay results. Yanfolila will have an average annual gold production over a Life of Mine (LOM) of eight years of 107 000 ounces although the first full year of operation will see 132 000 ounces being produced. In all, some 8,7 Mt of ore (at an average grade of 2,95 g/t and a LOM strip ratio of 11,9 to 1) will be mined over the LOM to produce a total of 770 000 ounces. The EPCM contractor for the plant and associated infra- structure is South African project house SENET while IMAGRI-SARL – a Malian contractor – is responsible for the civil works and SMPP work. 

A recent photo of the Yanfolila site in Mali (photo: Hummingbird).

14  MODERN MINING  September 2017

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