Modern Mining September 2018

September 2018 Vol 14 No 9 www.crown.co.za M ODERN MINING IN THIS ISSUE…  Cat shovel commissioned at Namakwa Sands  Zinc/lead project exhibits strong metrics  Graphite takes off in Mozambique  Feature: Shaft sinking and raiseboring

MODERN M I N I N G

CONTENTS

SEPTEMBER 2018

ARTICLES

COVER 18 A partnership based on continuous improvement ZINC/LEAD 22 Updated DFS points to strong returns from Algerian project COUNTRY FOCUS: MOZAMBIQUE 26 Mozambique emerges as a graphite mining ‘hotspot’ 33 New player enters ruby sector in Mozambique FEATURE: SHAFT SINKING AND RAISEBORING 36 Healthy order book for shaft-sinking leader 40 Mining contractor looks for a more balanced workload 44 Raiseboring specialist grows in a difficult mining market EQUIPMENT 46 Samplers will give real-time results at Gamsberg project

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

Darryl James Circulation Brenda Grossmann 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

REGULARS MINING NEWS 4

Bisie now at an advanced stage of construction

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MOD Resources decides on 3 Mt/a capacity for process plant

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Drill rigs mobilised to SPD vanadium project

Boungou now in commercial production

Osino discovers major gold trend in Namibia 10 Mineral sands producer enjoys a record year 12 Nokeng launches R17 million training centre 13 DRA Global secures Assmang’s Gloria project 14 Emeritus status for high-flyingWits mining professor 16 Decline development for Ilunga starts early 17 Big increase in Royal Sheba’s mineral resources PRODUCT NEWS 48 Sandvik launches ‘intelligent’drill rig at Electra 49 Aury Africa offers screening service to coal sector 50 Containerised transformer supplied to Husab 50 Real-time blast block data reporting from BME 52 Hire company finds fleet management tool invaluable 53 Mopani a major customer for Condra 54 Rubber compound delivers increased wear life 55 Warranty on submersible pumps extended 56 Latest Vulcan release supports 19 000 users

Cover A Cat 6030 BH hydraulic mining shovel supplied by Barloworld Equipment in operation at the Namakwa Sands heavy minerals mine on the West Coast of South Africa. See page 18 for full story.

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Average circulation (April–June 2018) 4929

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September 2018  MODERN MINING  1

COMMENT

All the facts on SA mining

J ust published by the Minerals Council South Africa (previously the Chamber of Mines) is the latest edition of its Facts and Figures series. This is an updated and extended version of a facts and fig- ures pocketbook – Mine SA 2017 – which was released just before this year’s Mining Indaba. Compiled by the Minerals Council’s chief economist, Henk Langenhoven, and his team, Facts and Figures 2017 is a comprehensive sta- tistical guide to South Africa’s mining sector and confirms that the industry, despite difficult times in recent years, remains the flywheel of the South African economy, contributing 6,8 % (R335 billion) of GDP in 2017 and employing nearly 465 000 people. During the year, the industry paid R19 bil- lion in taxes and R7,5 billion in royalties and disbursed R126 billion in wages and salaries. It accounted for 27 % (R307 billion) of South Africa’s total exports and 7,4 % (R630 billion) of the country’s total production of R8,6 trillion. Interestingly, and somewhat in the face of common perception, some of these figures rep- resent an improvement on 2016, with mining production being 3,4 % higher and employ- ment 1,6 % higher. Gross fixed investment in mining grew to R80,9 billion compared to the figure of R67,6 billion recorded in 2016, revers- ing the downward trajectory seen over the past decade or so. The report notes that the price of gold declined by more than 8 % between 2016 and 2017 while the platinum price declined by over 12 % over the same period. On the other hand, coal export prices improved by 17 % and iron ore prices by over 12 %. According to the report, the two star per- forming commodities in 2017 were chromium and manganese, with production of the former increasing by over 14 % over the period and of the latter by an impressive 40 %. A very worrying statistic from the report is the low level of exploration, with South Africa’s share of Africa’s total exploration spend in 2017 being a miserable 8,3 % compared to as much as 35,7 % in the early 2000s. The report indicates that the total amount spent in 2017 on exploration in South Africa was just over US$87 million, a precipitous decline from the US$403,6 million which was spent in 2007. Discussing the gold sector, the report notes that South Africa was responsible for just 4,2 % of global gold production in 2017 – 136,8 tonnes out of 3 247 tonnes. Compare this with ten years ago, when South Africa’s production was 252,6 tonnes, representing 10,1 % of total

global production of 2 497,8 tonnes. Over this period the total number of gold mining employ- ees dropped from 166 064 to 112 200. Total gold sales in 2017 amounted to R82,7 billion. Gold, of course, is now no longer the big- gest sector within the South African mining industry. Both coal (with sales of R130 billion in 2017) and PGMs (R97 billion) contribute more. The PGM sector also has a bigger work- force than the gold sector, with 172 171 people employed in 2017. On coal, the report notes that net investment in the coal industry has declined at a rate of 10 % a year since 2009 – from R7,3 billion to R3,8 billion in 2017. “The lacklustre perfor- mance of investment in this industry could not be more telling of the toxic regulatory environ- ment in recent years,” it says. After coal, PGMs and gold, the next biggest contributor to South Africa’s mining industry is iron ore, which recorded total sales of R49,3 bil- lion in 2017. Production for the year was 74 643 tonnes, better than the 2016 figure of 66 456 tonnes but down on 2014’s 80 759 tonnes. Overall the report paints a picture of an industry which is certainly growing in some sectors, as some of the figures above indicate. But there’s no question that mining could do a whole lot better. As Roger Baxter, CEO of the Minerals Council, noted in his presentation at the recent Africa Down Under Conference in Perth, Australia: “South Africa’s mining potential is huge. Even in the absence of a greenfields exploration boom in South Africa, mining investment could almost double in the next four years if the country was to return to the top 25 % of the most attractive min- ing investment destinations worldwide. This would result in another 200 000 jobs being cre- ated in the economy with 50 000 direct jobs created in mining alone … .” The good news is that there are positive developments relating to South African min- ing. Baxter pointed to several of these in his presentation, noting that the administration of President Cyril Ramaphosa had imple- mented measures to tackle corruption and promote investment and that it had appointed the “respected Mr Mantashe” as Minister of Mineral Resources. In themselves, these moves are not enough to arrest the decline of the industry but at least things are starting to move in the right direc- tion. One senses that South African mining might after all have a bright future, a scenario that seemed unlikely just a year ago! Arthur Tassell

During 2017, the mining industry paid R19 billion in taxes and R7,5 billion in royalties and disbursed R126 billion in wages and salaries.

September 2018  MODERN MINING  3

MINING News

Aerial view of the Bisie tin mine (taken in mid-August) showing the portal entrance and the primary and secondary crushers (photo: Alphamin).

Bisie now at an advanced stage of construction

take the company through to commercial production. Located approximately 180 km north- west of Goma, the provincial capital of North Kivu Province, Bisie is 60 km from the town of Walikale and 32 km from the national route linking Walikale with Kisangani. The mine is expected produce on aver-

age 9 642 tonnes of tin per annum over an initial 12,5 year life of mine, at a cash cost of US$8 837 per tonne of tin produced and US$10 359 per tonne tin sold after duties, royalties, levies and marketing fees, gener- ating an average EBITDA of approximately US$110 million per annum. Bisie, which has a capex of approxi- mately US$151 million, has the highest delineates Eve is of similar scale and intensity to the one which encompasses the flagship 834 000 oz Julie mineralised system. At Julie, in addition to the strong response over the Julie mineralisation itself, there is a previously unrecognised, very prominent structural component that extends for several kilometres north-west away from the drill-defined resources. “This recently completed EM geophysi- cal survey, recent and historical drilling results plus several untested high-tenor geochemical targets add further credibil- ity to the emergence of the Wa East region into a prominent West Africa mining camp in its own right,” comments Azumah MD Stephen Stone. 

Alphamin Resources Cor p, listed on the TSX-V, reports that construc- tion of its 80,75 %-owned Bisie tin project in the DRC is currently on sched- ule and – as at 29 August – 75 % complete. Commissioning of the process plant is scheduled for Q1 2019. Equity financing raised to date together with the US$80 mil- lion credit facility is currently projected to

VTEM survey delivers fresh targets for Azumah West African gold explorer and developer Azumah Resources, listed on the ASX, says that a recently completed VTEM (electro- magnetic) geophysical survey over the Wa East camp has identified several new robust targets that will provide high-priority driv- ers for exploration and resource growth in this region during the coming exploration season.

To date, the company has delineated a JORC 2012 mineral resource of 2,1 Moz of gold grading 1,5 g/t Au, including 1,4 Moz measured and indicated grading 1,7 g/t Au, with these evenly distributed between Kunche-Bepkong and Wa East (Julie deposit). The 247 km 2 , 822-line kilometre helicop- ter-borne survey has identified a major new target, named Eve, on the western edge of the Julie West licence. It is closely associ- ated with the intersection of a regionally prominent, north-west-trending splay off the Baayiri Fault and a major north-east trending Tarkwaian structure. Encouragingly, the EM response that

Azumah’s regional scale Wa gold proj- ect is located in the Upper West Region of Ghana. Three main deposits have been dis- covered and extensively drilled at Kunche and Bepkong, adjacent to the Black Volta River and Ghana’s border with Burkina Faso, and at Julie approximately 80 km to the east.

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MINING News

MOD Resources decides on 3 Mt/a capacity for T3 process plant

ASX-listed MOD Resources reports that following the major increase in the resource at its T3 copper/silver project in Botswana announced 2 July 2018, a review of the planned throughput for the T3 process plant has been undertaken. The Feasibility Study is now based on an increase in the process plant throughput to 3 Mt/a, with allowance for staged future expansion. Throughput selection was based on criteria that included the tonnes of indi- cated category resource, target mine life of at least 10 years and the optimal operational and financial outcome for MOD. The company has also announced key appointments to assist with the development and funding of the initial open-pit develop- ment of the T3 project, including Sedgman, a member of CIMIC Group, for process and infrastructure engineering, and Azure Capital and Terrafranca Advisory Limited as joint debt advisers. According to MOD’s MD, Julian Hanna, the company has expe- rienced a great deal of interest already in the T3 project, following MOD’s debut presentation at the recent Diggers and Dealers Conference. “We are really pleased to report this increase in the proposed plant capacity following the recent resource upgrade,” he says.“The T3 Pit Feasibility Study remains on schedule for com- pletion by the end of March 2019 and all key technical consultants are now engaged. “The T3 project is located at one of many ‘domes’ identified within the 700 km 2 T3 Dome Complex that could, if mineable resources are discovered, utilise the proposed T3 process plant.” He added that MOD was continuing to fast-track exploration drill- ing at the nearby A4 Dome. Sedgman will also compile the final Feasibility Study docu- ment incorporating inputs from the various consultants who are contributing to the study. “The appointment of Sedgman is a great addition to an excel- lent team of Feasibility Study consultants,” commented Technical Director Steve McGhee. “Their highly relevant EPC experience at the Boseto copper project in Botswana provides a high degree of confidence around in-country costs and implementation that will be important aspects of the study. We look forward to working closely with Sedgman, the debt advisers and the rest of the team to deliver a high quality Feasibility Study and progress the financ- ing of the T3 Pit project.” 

Installing roof bolts inside the mine (photo: Alphamin). grade of contained tin of any tin mine in the world and the sec- ond largest resource size (although drilling stopped before the full resource size was determined). Over 1 million man-hours have now been worked on the proj- ect by over 600 employees with no lost time injuries reported. According to Alphamin, mine construction is progressing ahead of schedule with the underground mining contractor, Reliant SARL, having completed 1 709 development metres out of a total of 2 700 as at 26 August. Construction of the process plant by EPCM contractor DRA is ahead of schedule with 256 tons of steel erected and the majority of the kit required now on site. Construction of the company’s 36 km access road to site and airstrip is now complete with project deliveries getting through to site without difficulty. The 1 200 m long airstrip is located approxi- mately 11 km from themine and is due to go into use in the current quarter (Q3), following completion of the licensing process. Over 70 % of project loads have been delivered to the mine site and procurement is 90 % complete. Social development investments targeting over 1 500 house- holds for livelihoods and community infrastructure projects continue. Site security and community relations have been strengthened further by the peaceful and voluntary migration of the remaining 500 artisanal miners from Alphamin’s concession in late 2017 and early 2018. The recent Ebola outbreak in North Kivu Province is being monitored closely and strict protocols have been put in place to reduce the risk of transmission at Bisie. Alphamin points out that the outbreak is located some 1 200 km from Bisie by road and that, to date, there has been no impact on the company’s operations. 

Proposed site layout and infrastructure for the T3 Pit project.

September 2018  MODERN MINING  5

MINING News

Drill rigs mobilised to SPD vanadium project

ASX-listed Tando Resources reports that it is set to start its drilling programme at its SPD vanadium project in South Africa. Two drilling rigs (one RC and one dia- mond core) have been mobilised to site, with drilling scheduled to be conducted at both the existing high-grade resource and the surrounding high-grade vanadium pipes at the same time. As part of mobilisation, the drilling con- tractor, assisted by Tando, has recruited employees from the local communities. This is expected to be the first of many opportunities for the project to provide benefits such as employment and training for these communities. Phase One of the drilling programme will comprise 18 holes for 1 650 m at the SPD deposit, where there is currently a resource of 513 Mt at a grade of 0,78 % V 2 O 5 defined under the SAMREC code. This resource is a ‘foreign resource’ (as defined in the ASX Listing Rules). The drill- ing is aimed at converting it to a Mineral Resource Estimate (MRE) as defined in the JORC Code. Tando expects the MRE will be published by the end of October 2018. Phase One will also include the first holes to be drilled at the shallow, high- grade vanadium pipes which sit within a 3 km radius of the SPD deposit. Tando has reported a host of high-grade vana- dium assays from samples taken from the surface of these pipes with assay results consistently above 2 % V 2 O 5 . Tando says these vanadium grades highlight the strong potential for the pipes to underpin a simple, low-cost, high-grade DSO operation with a compressed devel- opment timetable. First visual results from drilling of the pipes are expected later this month (September) with assay results

Location of the SPD vanadium project and other vanadium deposits in the Bushveld Igneous Complex.

likely to be received during October. Following completion of the Phase One drilling programme, Tando will move straight into Phase Two, which will be aimed at upgrading the maiden JORC resource to the indicated category (pro- vided results are as anticipated). Phase Two is currently designed to comprise 58 holes for 5 550 m. The cost to complete the entire Phase 1 and Phase 2 drilling programme and the resultant resource estimations is estimated at A$1,4 million. Tando is fully funded for delivering strong financial returns and producing premium-quality zircon and tita- nium products that are in high demand. The project, which is favourably located approximately 25 km from Dar es Salaam, has a low development capital cost of US$30 million. It has an ore reserve of 12,3 Mt at 3,9 % Total Heavy Minerals (THM), with opportunities to grow reserves and mine life, further increasing financial returns. 

the drilling programme as well as the metallurgical and mining studies which will follow completion of the drilling programme. Tando MD Bill Oliver said the scene was set for Tando to demonstrate the value of the world-class SPD vanadium project. “We know we have extensive high- grade vanadium at SPD and that the value of the project will become clearer as we convert it to JORC status. We also believe there is outstanding potential at the sur- rounding vanadium pipes, which we have demonstrated host high-grade miner- alisation from surface and may therefore underpin a low-cost DSO operation. The commencement of drilling, and the com- bination of the impending assay results, the testing of the pipes and the conver- sion to JORC resource status means we will have strong newsflow over coming months.” The SPD project is located on the Eastern Limb of the Bushveld Complex. It is only 30 km from the currently dormant Mapochs mine, which has a processing plant and railway infrastructure. 

Strandline receives mining licence for Fungoni ASX-listed Strandline Resources reports that the Tanzanian Ministry of Minerals Mining Commission has granted the mining licence for its Fungoni heavy mineral sands project. The grant of the mining licence is a major milestone allowing Strandline to finalise development plans, including completion of funding and pre-construction activities. The Fungoni Definitive Feasibility Study (DFS), completed in October 2017, con- firmed the project will be capital efficient,

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MINING News

Boungou now in commercial production

4,11 g/t Au for 1,5 million ounces of gold. Initial results from the US$9 million 2018 exploration programme on Boungou have confirmed the occurrence of gold-bearing mineralisation at the nearby Osaanpalo and Baali zones. Drill programmes after the rainy season will focus on testing the extent of the structures on both zones with the aim of identifying new mineral resources and supporting future produc- tion increases. The Boungou mine is located 320 km east of Ouagadougou, the capital city of Burkina Faso. Over the construction period the project recorded 5,6 millionman-hours (18 months) without a lost time injury. The mine was constructed within budget at a cost of US$231 million. 

SEMAFO Inc, listed on the TSX, reports that commercial production has been achieved at its Boungou gold mine in Burkina Faso, effective September 1, 2018. Commercial production was declared when operations reached the internal commercial production measure of 30 consecutive days of mill throughput at 75 % of nominal design capacity (4 000 t/ day). During the 30-day period, the mill processed more than 90 000 tonnes of ore at an average grade of 2,4 g/t Au and with a recovery rate of 83 %. During the period, the mill mainly pro- cessed lower grade ore sourced from the east pit. However, as the process was being optimised, higher grade ore was intro- duced and a recovery rate of more than

93 % was reached at the end of the period. Boungou began processing ore at the end of May and achieved its first gold pour on June 28, 2018. During the pre-commer- cial period from June to the end of August, the mine produced 12 000 ounces of gold. In 2018, it is expected to produce between 60 000 and 70 000 ounces of gold in com- mercial production. Currently, the stockpile holds more than 300 000 tonnes of ore. Mining is ramping up in the starter pit, which contains the high- est grade reserves. Furthermore, Boungou’s water storage facilities hold 2 million cubic metres of water, more than enough tomain- tain operations until the next rainy season. As at December 31, 2017, mineral reserves at Boungou stood at 11,2 Mt at

The 4 000 tonnes per day CIP plant at Boungou (photo: SEMAFO).

September 2018  MODERN MINING  7

MINING News

Drilling on the Karibib Gold Trend (photo: Osino Resources).

Osino discovers major gold trend in Namibia

Osino Resources Corp, a Namibian-focused exploration company, has reported the dis- covery of a major new gold-bearing trend located in the southern central zone of the Damara orogenic belt, stretching from the producing Navachab gold mine to Osino’s Okapawe target, more than 40 km to the north-east. According to the company, the Karibib Gold Trend is defined by a large-scale, deep, basin margin structure (the Karibib Fault) which is visible in the regional aero- magnetic data. It has been sampled over a strike length of 20 km to date and contin-

ues for a further 30 km to the south-west. A number of significant soil anomalies (Twin Hills, OJW and Okapawe) have been discovered along the fault zone which appears to be mineralised throughout its length. The soil anomalies are in the range of 100 to 400 ppb gold against a background of less than 5 ppb and are between 1 km and 4 km in length following the regional north-east trend. The mineralised pros- pects occur in association with splays, bends and syn-tectonic granite intrusions, typical of fertile orogenic belts. the regional market, including Botswana and South Africa, and entering the interna- tional seaborne thermal coal export market. Minergy owns 100 % of the 390 Mt Masama coal project in the Mmamabula coalfield in south-west Botswana, 50 km north of Gaborone. The opencast, low strip ratio mine has the potential to produce 2,4 Mt/a of coal within a year of opening. The granting of the mining licence fol- lows the completion of a feasibility study and the authorisation of the Environmental Impact Statement by the Department of Environmental Affairs (DEA) in Botswana. Following dispensation from the DEA,

The remaining portion from Twin Hills to the Navachab gold mine is currently being explored and Osino says that further discoveries are considered likely. In a previous press release (dated 11 July, 2018) issued by Osino, the gold corridor was referred to as the Khan River Gold Corridor as it was initially named when the presence of a mineralised system was noted near the Khan River, which is a significant local feature. This has now been changed to the KaribibGoldTrend to reflect its growing and more regional extent. In the coming months, Osino will focus certain pre-construction work has already commenced on site at Masama. This will allow Minergy to have the final mine com- missioning in January 2019 and to be producing its first saleable coal the follow- ing month. According to CEO Andre Bojé , the award, whilst delayed, is a significant mile- stone in Minergy’s journey: “The licence is critical for Minergy to continue as a busi- ness. This will be the first opencast coal mining licence granted by the Government of Botswana, so the process was not with- out its challenges for both parties. However, Government was so confident in our eco- nomic model that we were never in doubt that these could be overcome.” 

Minergy receives mining licence for Masama Botswana Stock Exchange (BSE)-listed Minergy Limited, a coal mining and trad- ing company, has been granted a mining licence by Botswana’s Ministry of Mineral Resources, Green Technology and Energy Security. This marks a significant step for- ward for the company, which listed on the BSE in April 2017 and is seeking a listing on London’s AIM during 2019.

The award is later than the projected timeline of mid-2018 for the granting of the licence as announced when the company listed. However, this is a substantial step forward in terms of Minergy’s intention of focusing on delivering high-quality coal to

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MINING News

Thor drills potential discovery hole

Thor Explorations, listedon theTSX, reports it has drilled a potential discovery hole at a new pros- pect calledMaka South located in thenorth-east of the Douta permit on its Douta gold project in south-east Senegal. The hole was drilled as part of a 1 000 metre reconnaissance reverse circu- lation programme on a number of previously defined drill targets by soil geochemistry in the Maka area of the licence. Drill hole DMRC012 on the Maka South target intersected 4 m true width at 11,4 g/t Au from 18 m downhole. In addition to this result, seven other RC holes intersected anomalous gold mineralisation – including 1 m at 3,59 g/t Au in drill hole DMRC013 – on other targets in the area. These first pass drill results are considered to be significant as they are located adjacent to the nearby Makabingui gold project com- prising total resources of 11,9 Mt at 2,6 g/t Au for a contained 1 Moz Au in an area of the Douta permit that has received very little exploration attention to date. Comments Segun Lawson, Thor’s President and CEO: “A second prospect in the Douta permit further strengthens management’s assessment of the prospectivity of Thor’s Douta permit as a whole. In addition to this, we are still looking forward to receiving the pending results from approximately 4 000 m of RC drilling that were drilled at Makosa prior to the start of the rainy season in July. We will be in a good position to evaluate our options on the Douta permit as a whole following the rainy season.” 

Pictured here with core from the project are (from left): Harmen Potgieter; David Nghiyolovali; Jon Andrew, Osino’s Country and Exploration Manager; Nicolaas Izaks; Denis Greson; Petrus Petrus; Efraim Kahitu and Osino’s CEO, Heye Daun (photo: Osino Resources).

Navachab and Otjikoto gold mines. The company, which is listed on the TSX-V, is managed by Heye Daun, CEO and co-founder, and Alan Friedman, President and co-founder, who were also co-found- ers 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 success- ful gold mine (and only the second in Namibia, after Navachab), which in 2018 is expected to produce between 160 000 and 170 000 ounces of gold. 

on exploring the Karibib Gold Trend to the south-west of Twin Hills where it contin- ues a further 30 km towards the Navachab gold mine. The work to be undertaken will include a detailed aeromagnetic survey, geological mapping, soil and calcrete sam- pling followed by RAB drilling. A second round of reverse circulation and core drilling is planned for early 2019, once the remaining Karibib Gold Trend has been explored south-west to Navachab and further drill targets have been identi- fied and ranked. Osino’s Namibian interests comprise 18 exclusive exploration licences located within the central zone of Namibia’s prospective Damara belt, mostly in prox- imity to and along strike of the producing

September 2018  MODERN MINING  9

MINING News

The Kwale mineral sands mine in Kenya (photo: Base Resources).

Mineral sands producer enjoys a record year 91 672 tonnes of rutile, 464 988 tonnes of ilmenite and 37 157 tonnes of zircon; and an average price improvement across all products, with rutile up 17 %, ilmenite up 28 % and zircon up 46 %.

Toliara Sands project in Madagascar. A pre-feasibility study on the project has started. Tim Carstens, Managing Director of Base Resources, said: “This has been an outstanding year for Base Resources with our team achieving the goal of a total recordable injury frequency rate of zero – a fantastic outcome for any resources opera- tion globally and testament to the quality of our management team. “Consistent production and strong average price improvement across all products contributed to record financial results for the company and has allowed significant debt reduction and established a strong platform from which to grow the business. The well-timed acquisition of the Toliara Sands project in Madagascar has given Base Resources an outstand- ing growth path in the development of another world-class mineral sands project with a long production life.” Outlook priorities for the 2019 finan- cial year include completion of the pre-feasibility study for Toliara Sands and commencement of the definitive feasibility study, ahead of a planned final investment decision in late 2019. Base expects to produce 88 000 to

Price increases and consistent sales vol- umes across all products drove record revenue and NPAT for the year ended 30 June 2018 (FY18) for Base Resources, listed on the ASX and London’s AIM. Revenue increased 22 % to US$198,8 million while EBITDA increased 32 % to US$109,3 million. Operational highlights for FY18 included a total recordable injury fre- quency rate of zero (no lost time due to injury since 2014); consistent production –

Base completed a major optimisation project at the Kwale Operation in Kenya to maximise production volumes while the Kwale South Dune measured and indi- cated resources increased by 19 %. The company also progressed its long- term strategy with the acquisition of the

Tanga Resources to acquire Namibian project Tanga Resources, listed on the ASX, has entered into a binding agreement to acquire all the issued shares in Aloe Investments One Hundred and Ninety Two (Proprietary) Ltd, a Namibian entity which owns 100 % of the Hagenhof copper-gold-cobalt project (EPL 6226) in Namibia.

sought after metals, including copper and cobalt, for which strong demand is forecast with the rising uptake in electric vehicles. Matthew Bowles, CEO of Tanga Resources, said: “We are delighted to have secured a 100 % interest in this highly prospective copper-cobalt project in a world-class, politically stable jurisdiction. The highly encouraging results returned in our initial sampling programme, coupled with the historical copper results, have given us confidence that Hagenhof is a worthy acquisition and will fit neatly into the Tanga portfolio alongside our other Namibian asset, Joumbira.” 

Hagenhof is a highly prospective cop- per-cobalt project hosted within a major structural setting, within the Damaran Metallogenic Belt in central northern Namibia. The acquisition expands Tanga’s presence in Namibia, adding to the Joumbira zinc project, and provides share- holders with greater exposure to highly

10  MODERN MINING  September 2018

MINING News

93 000 tonnes of rutile, 420 000 to 450 000 tonnes of ilmenite and 32 000 to 37 000 tonnes of zircon from its Kwale Operation in FY19. Kwale, which commenced produc- tion in late 2013, is located 10 km inland from the Kenyan coast and 50 km south of Mombasa. The mining operations at Kwale are based on a conventional dozer trap mining unit (DMU), using Caterpillar D11T dozers to feed the DMU. The DMU is a cost effective method of mining, which is particularly well suited to the type of ore at Kwale. Ore is received at the wet concentra- tor plant (WCP) from the DMU via a slurry pipeline. The WCP removes slimes, con- centrates the valuable heavy minerals (ilmenite, rutile and zircon) and rejects most of the non-valuable, lighter gangue minerals. The WCP incorporates a number of gravity separation steps using spiral con- centrators. The heavy mineral concentrate (HMC), containing 90 % heavy minerals, is then processed in the mineral separation plant (MSP). 

SSC Group plans re-opening of Lily and Barbrook The Siyakhula Sonke Empowerment Corporation (SSC Group) recently held a media briefing to introduce themselves as the new owners of Vantage Goldfields and to provide an overview of the Vantage Goldfields operations. SSC Group now has a 74 % stake in Vantage.

the priorities were to get the Barbrook mine back into operation and recommis- sion Vantage’s metallurgical plant before the end of the year and appoint a contrac- tor to develop the new Lily mine access decline. He said the first blast on the Lily decline was planned for February next year and that it was hoped to have the mine back in production by 2020. He said Lily had the ability to produce 30 000 oz of gold per annum for at least 10 years from cur- rently defined ore reserves. “Vantage Goldfields is a very strategic asset for the SSC Group and will be the cat- alyst and platform in achieving our dream of building our black Anglo American,” he said. “We are a credible company with a reputable track record, requisite skills, partnerships, courage and vision to build a diversified company and legacy that will challenge the current negative narra- tive of companies born from the womb of empowerment.” 

Vantage is the owner of the Lily and Barbrook gold mines near Barberton. Lily has been in business rescue since the col- lapse of a crown pillar in February 2016, which led to three workers tragically losing their lives when the lamproom container they were in fell into the ‘sinkhole’ created by the collapse of the pillar. The con- tainer and their bodies have not yet been recovered. S i yak hu l a Sonke Empowe rment Corporation is a Level 1 Black owned and controlled organisation, founded in 2005 by Fred Arendse, former Head of Transformation at Anglo Platinum Limited. Speaking at the briefing, Arendse said

September 2018  MODERN MINING  11

MINING News

Nokeng launches R17 million training centre

The Nokeng site showing main stockpile construction, with thickeners, float plant and mills to the left.

From the mine’s state-of-the art con- centrator, around 180 000 tonnes a year of acid grade fluorspar and 30 000 tonnes a year of metallurgical grade fluorspar will be produced. Production costs are expected to be in the bottom quartile of producers interna- tionally, largely because of the high grade and easy accessibility of the orebodies. 

As Nokeng Fluorspar Mine’s R1,7 billion mine and concentrator at Rust de Winter, north-east of Pretoria, reaches 70 % com- pletion, a new, on-site training centre – fully funded by the company – was offi- cially opened in August this year. More than 2 500 men and women from 10 local communities are expected to receive training in skills such as boiler-mak- ing, fitting, welding and community house building over the next 10 years at the Mining Qualifications Authority-accredited Dr Lelau Mohuba Training Centre. Nokeng’s flagship Social and Labour Plan (SLP) project, the 2 400 m 2 train- ing centre was built and equipped in just seven months at a cost of R17 million. Tuition, study materials, transport, work clothing and personal protection equip- ment totalling R36 000 per trainee will be provided free of charge by the company during the life of the mine. Some 56 trainees are already enrolled in various training courses and will be pri- oritised for permanent employment by Nokeng once qualified. Said to be the first new mine to be developed in Gauteng in the last 12 years, Nokeng – now over 12 months into devel- opment – is on time andwithin budget. First

production is expected in February 2019. Nokeng has a 12 Mt, SAMREC- compliant reserve – which is large by current international standards – and an estimated 19-year life-of-mine. Some 630 000 tonnes of ore containing approxi- mately 27 % calcium fluoride will be mined annually from surface and near-surface, initially from two deposits.

The 2 400 m 2 training centre was built and equipped in just seven months at a cost of R17 million.

12  MODERN MINING  September 2018

MINING News

DRA Global secures Assmang’s Gloria project

excited to partner with Assmang (Pty) Ltd once again.” The project completion and final handover is expected in late 2021. 

Multidisciplinary global engineering firm DRA Global has secured an EPCM con- tract with Assmang (Pty) Limited’s Black Rock Mine Operations for the replacement of the Gloria Manganese Mine’s under- ground rock handling infrastructure and surface plant in South Africa’s Northern Cape. Assmang is jointly owned by African Rainbow Minerals Limited and Assore Limited. DRA will be responsible for the EPCM of the project with a focus on the optimisa- tion and modernisation of the mine, which will provide further flexibility to sustain the Life of Mine production expectations through the replacement of underground rock-handling infrastructure as well as a new surface plant and its associated infrastructure. “Due to our long-standing relationship and successful track record of project deliv- ery for Assmang, DRA was approached as the EPCM partner for the Gloria project,” explains JC Heslinga, Senior Vice President

Projects at DRA. “Our history with the proj- ect, from initial scoping phases through to the feasibility study, makes DRA the logical fit for project implementation, and we are

A view of Assmang’s Black Rock Mine Operations.

September 2018  MODERN MINING  13

MINING News

Emeritus status for high-flyingWits mining professor

successfully supervised 13 doctoral students to graduation – two of whom have become Heads of theWits School of Mining Engineering. He has also supervised 23 MSc students. In the field of research and pub- lishing, Professor Minnitt has been both prolific and well-respected; he holds the revered status of C-rated researcher with the National Research Foundation (NRF) and has published 73 peer-reviewed papers. His experi- ence has also allowed him to assist the NRF in evaluating the quality of research outputs for entities at other universities. Three of his papers have been awarded silver medals by the Southern African Institute of Mining and Metallurgy (SAIMM). Themost recent of these was awarded in 2017 for a paper on Pierre M Gy’s equation for gold- bearing ores, published in the February 2017 issue of the SAIMM Journal. Another accolade bestowed on him recently was at the Eighth World Conference on Sampling and Blending 2017 in Perth, Australia – when he received the Pierre M Gy Sampling Gold Medal, sponsored by Australia’s government research agency CSIRO and the Australasian Institute of Mining and Metallurgy (AusIMM). His research interests are wide, includ- ing the sampling of particulate and in-situ materials, cut-off grades and their effects on mineral resources and mineral reserves estimation, and the application of geosta- tistics in mineral evaluation – as well as mineral economics and marketing of min- eral products. 

Emeritus Professor Dick Minnitt of the Wits University School of Mining Engineering (centre) with Professor Ian Jandrell, Dean of the Faculty of Engineering and the Built Environment (left), and Head of School Professor Cuthbert Musingwini (right). Professor Minnitt was also awarded a coveted statuette of the ‘Unknown Miner’ by the School in recognition of this achievement; the full-size original statue by sculptor Herman Wald stands at the entrance to the School on Wits University’s West Campus.

Wits University ’s School of Mining Engineering recently celebrated the award of an Emeritus Professorship to its long- serving and distinguished JCI Professor of Mineral Resources and Reserves, Richard (Dick) Minnitt. Speaking at the event at Wits University in July, Head of School Professor Cuthbert Musingwini praised Professor Minnitt’s scholarly contribution over many years. Having taught at the School since 1995

when he was appointed Senior Lecturer, Professor Minnitt has become well known as a leading expert in mineral resources and reserve estimations. Before his teach- ing years, he was a research officer at Wits University’s Economic Geology Research Unit, going on to work as a mine geologist for Anglo American Corporation and as a consulting geologist. Becoming an associate professor in 2000 and a full professor in 2001, he has

14  MODERN MINING  September 2018

MINING News

SRK Consulting in attendance at DRC MiningWeek mines indicated future opportunities, while exploration projects were also picking up. There was definite interest in the DRC,

Engineers and scientists from SRK Con­ sulting’s offices in the Democratic Republic of Congo and South Africa were part of the DRC MiningWeek in Lubumbashi recently, sharing information on trends and oppor- tunities in one of Africa’s most important mining hubs. Susa Maleba, SRK’s DRC country man- ager, noted the upbeat mood at the event, driven by the global interest in cobalt and copper. As a member of the DRC Mining Week conference panel to discuss the impact of the mining code on skills development and local subcontracting in mining, Maleba highlighted the impor- tance of specialised mining-related skills for the country’s development. “The DRC needs to update its curricu- lum at universities and also at schools,” he said, adding that more technical pro- grammes for unskilled workers, conducted in collaboration with mining companies, were also required. The current construc- tion of cobalt processing facilities at some

ny’s DRC office ensures close proximity to mines, while expertise can be drawn from many other disciplines in SRK’s worldwide network. 

especially with increased global demand for cobalt – despite some uncertainty about the effect of the coun- try’s new mining code. The mining community appeared full of hope that mining in the area could grow signifi- cantly in the coming years, with interest not only from SADC countries, but also from Europe, the US, China and Australasia. SRK has been involved extensively in mining proj- ects in the DRC over many years, focusing on mining engineering, geotechnical and environmental aspects among others; the compa-

The SRK team at the DRC Mining Week (from left): Desire Tshibanda (from SRK’s DRC office), Susa Maleba (DRC), Colin Wessels (from SRK SA), Cèline Mukekwa (DRC), Joseph Mainama (SA), Mamie Mbayo (DRC), Jaya Omar (SA), Peter Shepherd (SA) and Wouter Jordaan (SA).

September 2018  MODERN MINING  15

MINING News

Decline development for Ilunga starts early

The current mine design of Ilunga has the potential to contribute up to 25 000 tonnes per month of high grade ore with an estimated average contribu- tion of 20 000 oz per planned level of development. This will enhance the eco- nomics at NLGM but not increase overall production. The underground mining team is 100 % owner-managed, ensuring that develop- ment costs will be kept to a minimum and resources between the three active under- ground deposits are shared. “With operations performing well at New Luika, and following the cost cutting initiatives implemented since September 2017, we expect the balance sheet to con- tinue deleveraging,” comments Eric Zurrin, Shanta’s CEO. “We will shortly have three active sources of high-grade ore following the commencement of underground devel- opment at Ilunga. With mining flexibility providing operational stability, Shanta is renewing its focus on exploration. Over the next two years, Shanta is targeting high priority exploration targets on its mining licences which include down dip extensions at Shanta’s high-grade Bauhinia Creek and Ilunga deposits.”  tracted mining costs, fuel and labour. Forecast sustaining capital costs (includ- ing the cost of site rehabilitation) are included in the estimate of the AISC, and total US$31,9 million or US$29 per ounce. Edikan’s revised LOMP forecasts the generation of strong positive after-tax cash flow totalling approximately US$264 million, assuming a flat spot gold price of US$1 250 per ounce for the remaining mine life. Perseus’s Chief Executive Officer and MD, Jeff Quartermaine, said: “Having suc- cessfully brought our second operating mine, Sissingué, on stream earlier this year, we have achieved a level of operational flexibility that has enabled us to think strategically about how we execute our business at Edikan. Instead of focusing on satisfying expectations of Edikan that were created in a different market environment, we have designed a mine plan that seeks to maximise the production of profitable ounces rather than maximise ounces of gold produced at this mine.” 

The portal of the Ilunga underground mine (photo: Shanta).

In an update on its operations in Tanzania, AIM-listed Shanta Gold reports that it has commenced underground decline devel- opment at the Ilunga underground mine three months ahead of schedule with first ore expected in mid-2019. Ilunga will shortly be the third active source of high-grade ore at Shanta’s New Luika Gold Mine (NLGM) and has a JORC

mineral reserve grading 5,56 g/t, which is higher than the Luika deposit. NLGM is Shanta’s flagship operation and is located in the Lupa goldfield north of Mbeya in south-west Tanzania. The mine entered production in 2012 and produced 79 585 ounces in 2017. Shanta also owns Singida, an exploration and development stage project located in central Tanzania. grade ore does not generate superior cash flows. All other costs, recoveries and mill throughput rates and run times have been updated to reflect recent performance. Gold production averages 181 000 oz/a over Edikan’s current six-year mine life with the production profile altered relative to the previous LOMP due to the change in mining strategy, which distributes the total material movement and associated mining costs, the amount of ore mined and the grade of the ore available to be fed to the mill more evenly over the life of mine. Forecast weighted average all-in site costs including all direct production costs, royalties, waste stripping costs and sustaining capital expenditure (AISC) are US$950 per ounce over the remaining life of mine. This represents a 10 % increase in average AISC relative to the previous LOMP, resulting mainly from production of 7 % fewer ounces, cost inflation on con-

Perseus updates Edikan Life of Mine Plan Perseus Mining, listed on the ASX and TSX, has updated the Life of Mine Plan (LOMP) for its Edikan gold mine in Ghana following a re-estimation of ore reserves. Proved and probable ore reserves total 44,7 Mt of ore, grading 1,09 g/t and containing 1,57 Moz of gold as at 30 June 2018.

Estimated total gold production of 1,08 Moz over the current six-year mine life is 93 % of the amount estimated for the corresponding period in the previous LOMP. The reduction is largely a result of net changes in cost, throughput rate and run time impacting cut-off grade and pit design. The updated LOMP assumes a revised mining strategy from January 2019 involv- ing use of a single mining contractor and mining at a reduced rate of total material movement compared to the February 2017 LOMP. Mining will not be as selec- tive as past experience has indicated that selectively mining and processing high

16  MODERN MINING  September 2018

MINING News

Big increase in Royal Sheba’s mineral resources the Royal Sheba deposit has commenced to test a further 600 m strike length, within the Sheba mine’s mining right. The com- pany has also embarked on an extended exploration programme within Barberton Mines’ mining right at both Sheba and New Consort mines around historic workings and for potential new satellite deposits.

in the near term. I am also excited at the prospectivity of our mining lease, namely New Consort and Sheba Hills, and proving similar near-surface resources from this extended exploration programme. “Royal Sheba’s opencast orebody has the potential to increase production from our flagship Barberton operations at a very competitive cost, aligned with our strategic positioning as a low-cost gold producer. We look forward to working with all stakeholders in advancing this project, to the benefit of not only shareholders, but also the Mpumalanga Province and the Barberton area. “We anticipate updating the market with a further MRE in November 2018 and a definitive feasibility study in February 2019.” The Royal Sheba orebody was mined underground on a small scale until 1996, producing 3 000 tonnes of ore per month from the central high grade zone of the deposit. 

In an update on its Royal Sheba project at Barberton Mines, Pan African Resources says that the results of the drilling pro- gramme have exceeded expectations. The updated Mineral Resource Estimate (MRE) reflects a 150 % increase in Royal Sheba’s mineral resources from 0,36 Moz (2,60 Mt at 4,32 g/t) to 0,9 Moz (8,56 Mt at 3,27 g/t). The near surface resource is 0,35 Moz (2,84 Mt at 3,81 g/t) while the underground resource is delineated at 0,55 Moz (5,72 Mt at 3,0 g/t). The Royal Sheba project’s surface drill- ing programme (Phase 1 and 2 – 1 645 m of drilling) confirms robust mineralisa- tion extending from the surface along an 850 m strike and 150 m down dip of the Royal Sheba deposit. Summarised drilling results confirms that the mineralisation ranges in width from 5 m to 25 m with in-situ gold grades ranging between 0,5 g/t to 174 g/t and averaging 3,27 g/t. Pan African says that Phase 3 drilling of

“The exploration results from the drill- ing on Royal Sheba have exceeded our expectations, reaffirming the grades his- torically mined at depth,” comments Pan African’s CEO, Cobus Loots. “Significantly, the drilling programme has indicated the orebody extends to surface, with the potential to establish a new open- pit mining operation in the short term, transitioning to an underground mining operation only after a number of years. “In conjunction with the ongoing exploration programme, we will finalise a definitive feasibility study, with the view of commencing project development

September 2018  MODERN MINING  17

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