Modern Mining September 2017

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