Modern Mining August 2018

August 2018 Vol 14 No 8 www.crown.co.za M ODERN MINING

IN THIS ISSUE…  ELB almost complete on flagship projects  Elikhulu produces its first gold  Mmamabula now ‘development ready’  Electra Mining Africa 2018 Preview

MODERN M I N I N G

CONTENTS

AUGUST 2018

ARTICLES

COVER 18 ELB demonstrates its skills on two ‘flagship’ projects DIAMONDS 22 Volvo machines add muscle to Steyn Diamante’s fleet CHROME 26 Zimbabwean chrome miner brings new plant on stream GOLD 30 Elikhulu pours its first gold COAL 37 Process water dam at coal mine desilted 38 Mmamabula coal project ready to enter construction 41 Joint venture awarded contract by Exxaro 42 Rising coal prices open opportunity for Mmamabula West project FEATURE: ELECTRA MINING AFRICA 44 Electra Mining 2018 – a preview 55 Zest WEG to display its diverse mining portfolio 58 Mining tyre expertise to go on show at Electra 60 Aftermarket support leads to repeat business for MBE REGULARS MINING NEWS 4 Kinross puts Phase Two expansion at Tasiast on hold 5 Teranga Gold enjoying positive momentum 6 Kasbah produces positive DFS for Achmmach 7 GSR on track to achieve full-year guidance 8 New estimate lifts Kipushi’s zinc resource by 16 % 9 Prospect strengthens its management team 10 First fresh kimberlite ore intersected at Bellsbank 11 MC Mining moves to owner mining at Uitkomst 12 Lucapa recovers another ‘Special’at Mothae 13 Weatherly tackles its water problems at Tschudi 14 Liqhobong diamond mine enjoys a record quarter 15 Airborne EM survey underway at Opuwo 16 Ity CIL project on schedule and within budget PRODUCT NEWS 62 Hyundai excavators deployed to diamond mine 63 Portal crane will assist Oyu Tolgoi pre-sink 64 BME expands into US explosives market 65 LED mobile tower lights added to rental fleet 66 Contact-free conveyor belt skirting system 67 Microgrid solution installed at Eritrean mine 68 Kwikspace supplies relocatable camp

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

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Cover The processing plant at Vedanta’s Gamsberg zinc project in the Northern Cape. The plant, designed and built by ELB Engineering, is now commissioning. See page 18 for further details of ELB Engineering’s business strategy and its current portfolio of projects.

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August 2018  MODERN MINING  1

Informing industry across Africa P U B L I C A T I O N S

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Visit us in the Link Node at Stand LN 08

Mech hem AFRICA

Phone: +27 11 622 4770 CROWN HOUSE 2 Theunis Street Cnr Sovereign Street Bedford Gardens, Bedfordview, 2007 P.O. Box 140 Bedfordview 2008 www.crown.co.za

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2  MODERN MINING  August 2018

COMMENT

De Beers moves elephants in major conservation initiative

G iven all the bad news surround- ing the South African mining in- dustry in recent weeks, what with South Deep gold mine in deep trouble (it has haemorrhaged R4 billion over the past five years) and Implats announcing that it will drastically shrink its mining ‘footprint’ in the Rustenburg area, I thought my readers might appreciate hearing a ‘good news’ story in my column this month. There aren’t too many such stories around but one that has caught my attention is the role that De Beers is playing in one of the largest elephant translocations in South Africa’s his- tory. The group has begun to transport 200 elephants across 1 500 km from its Venetia Limpopo Nature Reserve (VLNR) – a property which also hosts its flagship diamond mining operation in South Africa – to Mozambique. As I write this, the first phase of the project, which will see 60 elephants from the VLNR being relocated to the Zinave National Park in central Mozambique, is underway. According to De Beers, the remaining elephants will be moved to conservation areas that hold sufficient elephant carrying capacity within Mozambique from next year. Although I’ve visited Venetia several times during my time as a mining journalist, I’ve never had a chance to tour the VLNR. This is a pity since it is apparently one of the finest nature reserves in the country. Adjoining the Mapungubwe National Park, it was established in the early 1990s, covers 32 000 ha and is home to a very diverse wildlife population, including rare species such as the African wild dog. The VLNR can only healthily sustain around 60 elephants but currently has a popu- lation of more than 270. By contrast, Zinave National Park – despite having an area of over 400 000 ha – only has 60 or so, this low number being mainly a result of Mozambique’s 15-year civil war. De Beers is partnering with the Peace Parks Foundation, a leading ‘not-for-profit’ organ- isation focused on the preservation of large functional, cross-border ecosystems, in this initiative. The Foundation co-manages Zinave with Mozambique’s National Administration for Conservation Areas. “There is no greater symbol of Africa than the majestic elephant,” comments Bruce Cleaver,

CEO of the De Beers Group. “For us to be able to help secure their future in Mozambique, while also ensuring other species at our Venetia Limpopo Nature Reserve can flourish, is some- thing every employee of De Beers Group is proud of. This translocation is born of a deep sense of responsibility and is part of our wider commitment to continue to invest in new and innovative ways to protect the natural world.” Adds Werner Myburgh, CEO of the Peace Parks Foundation: “The reintroduction of ele- phants to Mozambique will bring us one step closer to achieving our dream of restoring the landscape and establishing uninterrupted con- nectivity with seamless migration of wildlife across the parks within the Great Limpopo Transfrontier Conservation Area.” Apart from the VLNR, De Beers has conser- vation areas at its properties near Kimberley and at the Jwaneng and Orapa mines in Botswana. In all, it has a massive 200 000 ha of land under protection. According to Dr Patti Wickens, Senior Environmental Manager with the Group, for every hectare of land used for mining by the De Beers Group, six hectares are dedicated to the conservation of nature. The efforts of De Beers demonstrate that mining and conservation are not necessarily incompatible activities, as is widely perceived, and that mining can indeed be a force for good when it comes to the environment. Arthur Tassell

An elephant in the Venetia Limpopo Nature Reserve (photo: Matt Crab).

August 2018  MODERN MINING  3

MINING News

Kinross puts Phase Two expansion at Tasiast on hold

of alternative approaches, and a Phase Two re-start decision, are subject to our ongo- ing engagement with the Government. We remain committed to disciplined capital allocation as we seek additional clarity on the matter.” As previously disclosed, in early May 2018 the company received a letter from the Government of Mauritania stating a desire to enter into discussions with respect to the company’s activities in the country, which Kinross understood as seeking greater benefits for the country. The Tasiast mine is an open-pit opera- tion located in north-western Mauritania, approximately 300 km north of the capi- tal Nouakchott. Tasiast processes ore via mill and dump leach. Work continues on enhancing the performance of the existing mill and optimising the operation. Throughput at the expanded Phase One plant has continued to ramp up and has peaked at 12 000 tonnes per day (t/d). Phase One is expected to significantly reduce operating costs and increase production. The Phase Two expansion that has been put on hold is a very substantial project. Kinross announced in September last year that it intended implementing the project. It stated at the time that “Phase Two is expected to increase mill capac- ity to 30 000 t/d to produce an average of approximately 812 000 gold ounces (Au oz) per year for the first five years, at an average production cost of sales of US$440 per Au oz and all-in sustaining cost of US$655 per Au oz. “The project is expected to generate strong free cash flow of US$2,2 billion over the life of mine. Initial construction for Phase Two is expected to begin in early 2018, with expected initial plant and infra- structure capital costs of approximately US$590 million. Commercial production is expected to begin in Q3 2020.” The expansion would replace the two current ball mills with a new larger ball mill, and add new leaching, thickening and refinery capacity. It will also see additions to the mining fleet. The Wood Group (which last year com- pleted the acquisition of Amec Foster Wheeler) announced in May this year that it had been awarded the EPCM contract for the Phase Two expansion. 

The Phase One expansion project at Tasiast – seen here during construction – is now complete (photo: Kinross).

Canada’s Kinross Gold Corporation has completed the Phase One expansion at its Tasiast gold mine in Mauritania but has “paused” the implementation of Phase Two. Tasiast, which produced 243 240 gold equivalent ounces in 2017, is one of two operations Kinross has in West Africa (the other being the Chirano gold mine in Ghana). Commenting on the company’s results for the second quarter ended June 30, 2018, Paul Rollinson, President and CEO,

said: “At Tasiast, construction was com- pleted at the Phase One expansion, with first ore now through the SAG mill. The project has been transferred to Operations and is in the final stages of commissioning. “We have decided to pause activities at Phase Two and, to maintain optional- ity, are analysing alternative throughput approaches to expand Tasiast as we con- tinue to engage with the Government of Mauritania regarding our activities in the country. The completion of our evaluation The tailings will be processed through a newly built 1 Mt/a acid leach plant, adjacent to the existing flotation plant, designed to produce a mixed hydroxide precipitate (MHP) product. Based on the preliminary details deliv- ered by Minnovo prior to the completion of the Engineering Study, the board of Soludo Lambert made a decision to pur- sue construction of the leaching plant and appointed Minnovo in May 2018 to under- take the detailed design. “I am very pleased that we pursued the leaching alternative to process the Kipushi tailings, as the recoveries for the leach- ing are far superior than achieved with the existing flotation plant,” comments Cape Lambert’s Chairman, Tony Sage.“Preliminary details from the Engineering Study provided the basis for the decision to build the plant, which will be done in earnest to capitalise on the current high price for cobalt.” 

Cape Lambert completes Kipushi tailings study Australian resources and investment com- pany, Cape Lambert Resources, listed on the ASX, has announced that an Engineering Study for a leaching plant at the Kipushi cobalt-copper tailings project in the DRC was recently completed by consultants Minnovo Pty Ltd.

The study was undertaken following the excellent results achieved from a leach testwork programme at the project, with recoveries of 90 % for copper and 85 % for cobalt being achieved from laboratory scale testwork undertaken to date. The project is held by Soludo Lambert Mining SAS, which is a 50/50 joint venture arrangement with local entity Paragon Mining SARL and Cape Lambert. The project involves the reprocess- ing of copper-cobalt tailings contained in the Kipushi Tailings Storage Facility (TSF) located near the town of Kipushi, approxi- mately 25 km from Lubumbashi.

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MINING News

The gold plant at Sabodala in Senegal (photo: Teranga).

Teranga Gold enjoying “positive momentum”

“We are on the road to achieving our vision of becoming a multi-asset, mid- tier gold producer in West Africa,” added Richard Young, Teranga’s President and CEO. “By the end of 2019, we expect to increase our annualised gold production by about 50 % to between 300 000 and 350 000 ounces, diversifying our produc- tion base and adding significant scale with a second long-life mine – Wahgnion. Additionally, we are prioritising Golden Hill within our exploration portfolio given it has the potential to be our third mine and move us into the mid-tier producer category.”  DBCM says that upon engagement with the DMR through the office of the Director General on 30 July 2018, the issue of job losses in the mining sector andmines being placed on care and maintenance was raised. The Director General requested that DBCM runs its closure process in parallel with a separate process through which the DMR will seek to identify and propose an operator capable of purchasing Voorspoed (‘Proposed Operator’). DBCM confirms that it is in principle not opposed to the DMR’s request of embark- ing on a process to identify a Proposed Operator within a 30-day period com- mencing on 1 August 2018 and ending on 31 August 2018. It says it will engage further with the DMR in relation to the pro- posal in order to understand and finalise the basis upon which it will be under- taken.  Time Injuries between 1 October 2014 and 14 June 2018 and no Medical Treatment Cases since 16 June 2015.”

TSX-listed Teranga Gold Corporation, which owns the Sabodala gold mine in Senegal, is developing the Wahgnion gold mine in Burkina Faso and has the advanced Golden Hill project, also in Burkina Faso, has reported strong results for the three and six months ended June 30, 2018. Gold produced at Sabodala for the quar- ter amounted to 65 381 ounces (up 14 % on the equivalent figure for 2017) at an AISC of US$847/oz (compared to US$933/ oz in the equivalent quarter in 2017). For the six-month period, gold production was 129 412 ounces at an AISC of US$867/ oz, with the respective figures for 2017

being 114 460 ounces and US$934/oz. “There is a lot of positive momentum across our operating mine, development and exploration properties,” said Paul Chawrun, Teranga’s Chief Operating Office. “In Senegal, we achieved record sec- ond quarter and half year production at Sabodala and increased our full year 2018 production guidance to at least 230 000 ounces of gold. In Burkina Faso, construc- tion of our second mine at Wahgnion is on track for first pour before the end of next year and we continue to see positive exploration results at Golden Hill, our most advanced exploration property.” potential future operator would not only have the required technical and financial capability, but also values that are aligned with those of DBCM. Unfortunately, we have not been able to identify a bidder that met the necessary criteria and so we have reluctantly taken the decision to close the operation, in a responsible manner, as it is no longer economically viable for DBCM to operate the mine. We do not underestimate the impact this will have on Voorspoed mine’s employees and we have put in place appropriate support structures. “When we opened the mine on 4 November 2008, the expected operat- ing Life of Mine was approximately 10 years. With a young workforce, the mine has been managed and operated in an exemplary manner, of significance being the safety achievements in 2017 for the ‘Best Safety Performance in Class’ and ‘Best Improved Safety Performance’ for no Lost

De Beers to close its Voorspoed diamond mine De Beers Group has announced that the De Beers Consolidated Mines Proprietary Limited (DBCM) board has taken the deci- sion to proceed with the responsible closure and rehabilitation of Voorspoed mine in Free State Province. This deci- sion follows an extensive, transparent and comprehensive disposal process, which involved a rigorous due diligence exercise on the bidders to acquire the mine. 

The disposal process was unsuccessful in identifying a suitable operator that met the specified criteria and therefore the respon- sible closure process will now be initiated in accordance with the company’s values and with due consideration of employees and host communities. Phillip Barton, DBCM’s CEO, said: “Our priority throughout the disposal process has always been the safety and wellbeing of our employees at Voorspoed mine and we were committed to ensuring that any

August 2018  MODERN MINING  5

MINING News

Kasbah produces positive DFS for Achmmach

ground mine with an initial 10-year life, producing 750 000 tonnes of ore per annum at an average head grade of 0,82 % tin (Sn). The associated processing plant will incorporate ore sorting and High Pressure Grinding Rolls (HPGR) technology to produce approximately 4 500 tonnes of tin per annum in a 60 % tin concentrate. Highlights from the 2018 DFS (on a 100 % ungeared project) include: a post- tax NPV of US$98,1 million, with a 23 % IRR using a tin price of US$21 000 per tonne and an 8 % real discount rate; a capital cost of US$96,4 million; and an all in sustaining cost (AISC) of US$11 435/tonne of tin. Every additional US$1 000 increase in the tin price increases project NPV and ungeared returns by approximately US$20 million and 3 % respectively. Achmmach is located approximately 40 km south-west of the city of Meknès in central northern Morocco. It is envisaged that the mine will be accessed via two locations from the sur- face: a central portal boxcut at 1 015 mRL and an eastern portal boxcut at1 085 mRL. Each boxcut location has twin portals and declines providing ventilation and escape- way drives parallel to the decline. This eliminates the requirement for raisebored ventilation raises to surface in the Central and Eastern Zones early in the mine plan. The primary mining method to be used for the Achmmach deposit is con- ventional mechanised longhole stoping. As the geometry and thickness of the mining shapes vary throughout the dif- ferent lodes, a combination of bottom-up cemented rock fill (CRF) and top-down open stoping methods is planned. “We are delighted with the results of the 2018 DFS for the Achmmach tin proj- ect,”comments Kasbah’s CEO, Russell Clark. “The 2018 DFS follows on from a number of previous studies and whilst it incorpo- rates elements of those studies, our ability to successfully utilise ore sorting and HPGR technology in a new processing flow sheet has delivered a significant positive impact on project capital and operating costs as well as tin recovery. This, in conjunction with a strong prevailing tin price which is predicted by the International Tin Association to be sustained or improve in the future, has resulted in this very positive DFS outcome.” 

The Achmmach site. The project is located approximately 40 km south-west of the city of Meknès in central northern Morocco (photo: Kasbah).

ASX-listed Kasbah Resources has announced very positive results from its 2018 Definitive Feasibility Study (DFS) of the Achmmach tin project in Morocco. The company says the DFS confirms Achmmach’s robust project economics and enhances its outstanding develop- ment potential as a new, large scale tin mining operation. Based on the positive outcomes of the Achmmach 2018 DFS, the Kasbah board

and the company’s joint venture partners in the project, Toyota Tsusho and Nittetsu Mining, have requested management to proceed with securing funding for the project, offtakers for the tin product and identifying a suitable EPC engineering contractor and a capable underground mining contractor with the aim of com- mencing construction in 2019 and production in 2020. The project includes a proposed under- which sold at US$2 374 and US$3 600 per carat respectively. Total diamond produc- tion was 168,13 carats (83 diamonds), from 37 020 tonnes of ROM material processed by Bluedust 7, during the most recent production period. Tango has a contract mining and diamond recovery agreement with Bluedust 7. Diamond production from Oena, since acquisition, including production fromboth ROM material, as well as pan tailings and bantam material, now totals 2 019 carats, says Tango. These diamonds have been sold at an average price of US$1 290 per carat. 

Oena diamond sells for US$11 267 per carat Tango Mining, listed on the TSX-V, reports it has sold the 42,26 carat diamond recovered from run of mine gravel (ROM) in the Oena Central Area at its Oena diamond mine, an alluvial property on the Lower Orange River in the Northern Cape. The diamond was sold on tender at the Kimberley Diamond Exchange for US$11 267 per carat.

During the most recent production period, ending 19 July 2018, an additional 125,87 carats (82 diamonds) were produced from ROM, placed on tender and sold with an average price of US$945 per carat. This includes a 10,48 and a 7,17 carat diamond

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MINING News

GSR on track to achieve full-year guidance

Golden Star Resources (GSR), listed on the NYSE American and TSX, produced 61 209 ounces during the quarter (Q2) ended June 30, 2018 and says it is on track to achieve its consolidated full-year guidance in terms of gold production, cash operat- ing cost per ounce and AISC per ounce. The company owns theWassa and Prestea gold mines in Ghana. According to the company, strong production from the Wassa Complex con- tinued to exceed expectations with a 20 % increase in gold production to 38 532 ounces during Q2 2018 compared to the second quarter of 2017, including a 167 % increase in production from the Wassa underground mine (Wassa Underground). The quarter also saw a 65 % increase in grade processed at Wassa Underground to 4,99 g/t Au in Q2 compared to the second quarter of 2017. Significant improvements were deliv- ered at the Prestea underground mine (Prestea Underground) in the second quar- ter of 2018 compared to the first quarter of 2018, when the mine achieved commer- cial production. There was a 67 % increase in gold production to 12 463 ounces in Q2 compared to the first quarter of 2018 while the grade processed was 65 % up to 13,56 g/t Au compared to Q1 2018. The targeted production rate of 650 tonnes per day (t/d) is expected to be achieved at Prestea Underground during the fourth quarter of 2018. Post the period end, the creation of a long term, strategic relationship was agreed with La Mancha Holding, including a US$125,7 million investment, which will support Golden Star’s growth as a leading African gold producer. “During the second quarter of 2018,

Underground at Wassa. Golden Star is now primarily an underground producer following the cessa- tion of production from the Wassa Main Pit in January 2018 and the ramp-up of Prestea Underground (photo: GSR).

“After two quarters, we are on track to achieve our consolidated full year 2018 production and cost guidance and, with our strategic relationship with La Mancha agreed, we are well-positioned to deliver significant value for our shareholders.” Q2 2018 represents GSR’s second quar- ter as a primarily underground-focused gold producer, following the cessation of production from the Wassa Main Pit in January 2018. Production from the Prestea Open Pits is ongoing and ore supply from this operation is expected to continue into the middle of the third quarter of 2018. However once production from the Prestea Open Pits concludes, Golden Star intends to focus on high margin, underground ore with the objective of strengthening its financial position and creating a robust platform to deliver shareholder value. 

Prestea Underground delivered more ounces than the Prestea Open Pits, which is testament to the hard work and disciplined approach of our underground team,” com- ments Sam Coetzer, President and CEO of GSR. “We expect to see further improve- ments during the coming months and we anticipate that Prestea Underground will achieve its nameplate production rate dur- ing the fourth quarter of 2018. We will also continue to right size this operation with the aim of reducing operating costs and generating a stronger cash margin. “Wassa Underground delivered another impressive quarter, with both grades and tonnages exceeding our expectations. I am looking forward to releasing the Preliminary Economic Assessment for Wassa’s inferred mineral resources to gain a more thorough understanding of the full potential of this substantial deposit.

August 2018  MODERN MINING  7

MINING News

New estimate lifts Kipushi’s zinc resource by 16 %

TSX listed Ivanhoe Mines has announced that an independently prepared estimate has resulted in a significant increase in measured and indicated mineral resources at the company’s high-grade, Kipushi zinc- copper-silver-germaniummine in the DRC. The Kipushi mine is adjacent to the town of Kipushi, approximately 30 km south-west of Lubumbashi and less than 1 km from the Zambian border. It is oper- ated by Kipushi Corporation (KICO), a joint venture between Ivanhoe Mines (68 %) and Gécamines (32 %), the DRC’s state- owned mining company. The new Mineral Resource Estimate (MRE) is the first update to be issued for Kipushi since Ivanhoe published its ini- tial, independent NI 43-101 estimate in January 2016. The new MRE, prepared by the MSA Group of Johannesburg, has increased Kipushi’s measured and indicated zinc-rich resources by 16 %, from 10,2 Mt to 11,8 Mt, with an increase in zinc grade from 34,89 % to 35,34 %. In addition, the mine’s mea- sured and indicated copper-rich resources have increased by 40 % from 1,6 Mt to 2,3 Mt, with a slight increase in the copper grade from 4,01 % to 4,03 %. The zinc grade of Kipushi’s measured and indicated mineral resources is more than twice as high as the world’s next- highest-grade zinc project, independently ranked by Wood Mackenzie, an interna- tional industry research and consulting group, based on contained zinc. The MRE incorporates Ivanhoe’s second phase of underground drilling at Kipushi that was completed late last year, with a total of 9 706 m drilled in 58 holes. Eight holes were drilled for metallurgy, 31 holes in the Southern Zinc and Big Zinc, five holes in the Nord Riche and 14 holes in the Série Récurrente. The updated MRE will be used in the preparation of the Kipushi Definitive Feasibility Study (DFS), which is expected to be finalised later this year or early in 2019. The DFS will update and refine the findings of the Preliminary Feasibility Study (PFS) issued last December. Similar to the PFS, the DFS will focus on the ini- tial mining of Kipushi’s Big Zinc Zone. The planned return to production would establish Kipushi as the world’s highest- grade, major zinc mine.

Vertical long section (looking west) showing Kipushi’s Big Zinc, Série Récurrente, Southern Zinc and Fault zones, and the Fault Zone Splay. Traces of the 58 holes drilled by Ivanhoe in 2017 are shown in blue.

Big Zinc deposit, the adjacent Fault Splay and Southern Zinc zones are compelling, near-termdevelopment targets as they have thick, zinc-richmineralisation zones grading up to 45 % zinc. In addition, the copper-rich zones offer further opportunities to expand and diversify themine plan once production recommences,”Friedland added. The planned primary mining method envisaged for the Big Zinc deposit in the 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 Big Zinc 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 sub- levels at 30-m intervals. 

Robert Friedland, Executive Chairman of Ivanhoe Mines, said that the new resource estimate was very positive for mine plan- ning purposes. “We have always believed that Kipushi held the potential to host sig- nificantly more high-grade zinc, copper, silver and germanium resources than were initially reported in the mineral inventory when we acquired our 68 % interest in the mine in 2011,” he said. “Kipushi operated for more than 60 years as a high-grade copper mine, with significant germanium production, before it was placed on care and maintenance in the 1990s. With continued exploration success, we are confident Kipushi could remain in production for at least several more decades. “While our initial mine plan focuses on mining Kipushi’s exceptionally high-grade

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MINING News

Prospect strengthens its management team one of the leading international mining figures of the next generation. He has built his experience within First Quantum, one of the great international mining companies, whose origins also began in Africa. Sam is a strong leader and team player and he is expected to be pivotal in helping the board take Prospect into the ranks of lithium pro- ducer companies.”

where most recently he was responsible for the construction of a 1 Mt/a cement business in the DRC at an estimated cost of US$300 million. NixonMugwadhi has taken on the role of Mining Manager. He has been involved in establishing starter mines and brings a series of operational readiness and mine planning strengths. He will be primarily focused on grade control, blast and frag- mentation of the lithium-bearing minerals, and efficiency of mining. Malcolm Titley will be responsible for grade control. He has over 36 years of mine operation, resource estimation and grade control experience. He will also focus on the integration of the process plant, pro- duction geology and mine management. In parallel, there is a focus on the develop- ment of mine productivity improvements such as ‘short interval control’, blast move- ment monitoring and ore dilution analysis, with spin off opportunities in mine pro- duction team mentoring and training. 

ASX-Listed Prospect Resources, which is developing the Arcadia lithium project near Harare in Zimbabwe, has appointed Sam Hosack to the board of the company as Managing Director. Hosack is a third generation Zim­ babwean, residing in Western Australia. He holds a Bachelors Engineering Degree (Hons) from Essex University in the UK and an MBA from Ashcroft Business School (UK). For the past 12 years he has been employed by First Quantum Minerals, pri- marily in their Projects team, where most recently he project managed the building of a port (coal offloading and copper load- ing), a 120 km, 230 kV transmission line and a 300 MW coal-fired power station for the Minera Panama project in Panama. HughWarner, Executive Chairman, com- mented:“Prospect is moving from being an exploration company to a mining company and its leadership team is being expanded to include additional personnel with signifi- cant mining operations experience. Sam is

Prospect has also announced the appointment of several key operations personnel to take the Arcadia project forward. Trevor Barnard joins the team to lead the development process as Project Manager, presiding over the design, fabrication and supply of materials and equipment, construction and commis- sioning. His selection is on the basis that his role will progress to General Manager, for which his experience is substantial. He was country MD of PPC Ltd’s busi- ness in Zimbabwe and separately the DRC for numerous periods over the last 20 years,

MINING News

First fresh kimberlite ore intersected at Bellsbank

parable with Sedibeng. Frontier says that an indepen- dent Competent Person’s Report on Bellsbank has been prepared by Stephen Henry le Roux of SLR Consulting and has confirmed the presence of a kimberlite pipe deposit, approximately 0,35 ha in size with a possible fissure exten- sion to the north and south, and with an estimated grade of 10 to 30 cpht. The current ongoing starter pit development by Frontier is at a depth of 22 m and, according to drilling results, diamondiferous calcretised kimberlite is expected from 20,3 m down to 27,3 m, fol- lowed by a coherent (hypabyssal) kimberlite downwards. Once bulk sampling is completed, a resource (including in-situ grade and diamond value) needs to be estimated for the Bellsbank pipe.

The Bellsbank material will be treated through the recently completed, dual-purpose tailings and bulk sample processing plant at Sedibeng, which is seen here (photo: Frontier Diamonds).

Mineralogical work has shown that the kimberlite is a macrocrystic, hypabyssal, Group II type and very similar to the kim- berlite of the fissure mines at Bellsbank. The pipe also appears to have narrow linear extensions to the north-east and south-west as seen on both the magnetic and gravity data. The geophysical response and orientation of this feature suggests a probable fissure system. A follow-up CPR has been commis- sioned to consider the results of the next 10 m bench blast. Discussing the completion of the CPR and recent activities at Bellsbank, Frontier’s CEO, Jan Louw, said: “We are excited to announce to our stakehold- ers the release of the CPR from SLR Consulting as well as the first intersection of fresh kimberlite material during blast hole drilling. We are now in a position to rapidly access the primary orebody and conduct a proper bulk sample, fol- lowed by processing of this material at our new Sedibeng dual-purpose plant. This will enable a detailed economic assessment of the Bellsbank pipe, with the CPR also allowing us to leverage all historic and current exploration data into this exercise. We look forward to reporting the next round of results from Bellsbank once complete.” 

ASX-listed Frontier Diamonds has reported the intersection of the first fresh kimberlite at the Bellsbank kimberlite pipe explo- ration project during blast hole drilling. Bellsbank is situated 10 km from Frontier’s existing 74 %-owned Sedibeng diamond mine in the Northern Cape, located 110 km north-west of Kimberley. The uncalcretised kimberlite material was intersected at a depth of 27 m below surface. The exploration pit currently being mined at Bellsbank has been designed to extract a minimum bulk sample of 100 kt

of this fresh kimberlite material. Frontier says that processing of this material should commence shortly. The material will be treated at a rate of approximately 20 kt per month through the recently completed, dual-purpose tail- ings and bulk sample processing plant at Sedibeng. The biggest stone recovered from an earlier plant commissioning sample taken from shallower, calcretised Bellsbank material was 1,45 carats. The quality of the Bellsbank diamonds appears readily com- Refining (CPR) from the Colorado School of Mines. He has significant copper process- ing and mining experience in large scale open-pit and underground operations, having served in various management roles for companies such as Freeport McMoRan Copper and Gold, Inc (in the DRC), Phelps Dodge Mining Company, Anglo American Chile and Lundin Mining Corporation. He also recently served as CEO of Cupric Africa, which is developing the Khoemacau copper/silver project in the Kalahari Copperbelt of Botswana. 

Katanga Mining appoints Chief Operating Officer TSX-listed Katanga Mining has appointed Samuel Rasmussen as Chief Operating Officer of the company. Katanga’s assets are located at Kolwezi in the DRC and include the Kamoto underground mine and KOV open-pit mine, providing sulphide and oxide ores respectively; and the Kamoto concentrator and Luilu metallurgical plant for the onsite production of refined copper and cobalt. Katanga also has a number of other mines and plants.

Rasmussen holds a Bachelor of Science in Chemical Engineering and Petroleum

10  MODERN MINING  August 2018

MINING News

MC Mining moves to owner mining at Uitkomst MC Mining (formerly Coal of Africa Limited) has announced an agreement with the independent mining contractor at the Uitkomst metallurgical and thermal coal colliery that has resulted in the colliery becoming an owner-operated mine. of underground mining operations at Uitkomst is an opportunity to progress the overall performance at the colliery and facilitates the implementation of a number of initiatives, including enhanced control of production costs, as well as improved asset availability, leading to increased run- of-mine (ROM) coal production.

management oversight at the colliery dur- ing this process. “The transaction results in employees previously employed by Khethekile being employed directly by Uitkomst with no disruption to operations and we are confident that the operational cost effi- ciencies, asset availability and production improvements will be realised. The direct control of Uitkomst mining operations is expected to result in a steady increase in output and the colliery is expected to exceed FY2018’s production levels during FY2019. “MC Mining has undergone a substan- tial transformation with the purchase of the Uitkomst colliery and this is set to be advanced with the insourcing of mining operations. A significant feature has been the evolving strength of the Uitkomst management team and I am confident that they will deliver on the integration of the Khethekile business as well as the various improvement initiatives.” 

Uitkomst is a high-grade thermal export quality coal deposit with metallur- gical applications, which is situated in the Utrecht coalfields in KwaZulu-Natal. The underground operations at Uit­ komst have historically been undertaken by an independent mining contractor, Khethekile Mining. Under the terms of the ‘Sale of Business Agreement’, Uitkomst has acquired all of Khethekile’s mining equip- ment (including conveyor systems and coal mining and transportation equipment). The Uitkomst colliery has a remaining life of mine of approximately 16 years, including a planned mine extension and the coal produced is sold into the domes- tic metallurgical and thermal markets. According to MC Mining, the insourcing

“MC Mining acquired Uitkomst during 2017 and has implemented sub- stantial changes at the colliery, resulting in improvements and cost savings,” com- ments David Brown, Chief Executive Officer of the company. “However, more recently, mining production has been adversely affected by contractor equip- ment availability challenges and the company investigated potential solutions. This resulted in the conclusion of negotia- tions with Khethekile’s owners to acquire the mining assets and take over the operations. The increase in ROM produc- tion evidenced in the June 2018 quarter is attributable to augmented Uitkomst

August 2018  MODERN MINING  11

MINING News

Lucapa recovers another ‘Special’ at Mothae

to local suppliers. The Malian government received US$2,5 billion of that amount, which represents more than 60 % of the net cash generated by the mines. Every year since 2010, Randgold’s operations in this country have accounted for some 6 % of Mali’s GDP,” he said. During the past quarter, another robust performance from Loulo’s underground mines offset a reduced contribution from Gounkoto, where the pushback for the super pit is in progress as planned. At Morila, the mine has completed the mining of its Domba satellite pit and is now processing the lower grade tailings mate- rial. The Ntiola and Viper satellite deposits are scheduled for mining until early 2019 and closure of the Morila mine is planned for 2020.  Lucapa MD Stephen Wetherall said the Special diamond recoveries were extremely encouraging and validated the company’s decision to commit to a concur- rent bulk sampling programme to improve the resource as the new 150 tonne per hour (t/h) Mothae commercial diamond plant was being built. “The concurrent Mothae bulk sampling programme was planned to provide addi- tional data over and above the information used to compile the original JORC resource. Certain areas of the kimberlite pipe which hadn’t historically been sampled (Neck zone), or where there had been very limited historical testing (South-East and North zones), were thought to be under-esti- mated as a result. At the time of acquisition, we believed there was much upside here and this programme is designed to deliver that upside,” saidWetherall. “To have already recovered Special sized diamonds from early sampling ton- nages in all three of these areas gives us great confidence we can achieve this goal. It also adds to our excitement as we advance construction of our new 150 t/h plant, which remains on track for commer- cial diamond production later this year to complement the high-value production from our Lulo mine in Angola.”  (Ed – Subsequent to announcing the recov- ery of the 11,88-carat diamond mentioned above, Lucapa has also reported the recov- ery of a 28-carat stone and two light pink diamonds, all from the North zone.)

The Mothae site showing the refurbished bulk sampling plant (photo: Lucapa).

Lucapa Diamond Company, listed on the ASX, and the Government of the Kingdom of Lesotho (GoL) recently reported the recovery of another ‘Special’ (an individual diamond of greater than 10,8 carats) from the ongoing bulk sampling programme at the Mothae diamond mine in Lesotho, which is owned 70 % by Lucapa and 30 % by GoL. The 11,88-carat diamond was recov- ered from the North zone and is the first Special recovered from that section of the

of US$1 000 per ounce.  Depending on the gold price and input costs, the potential revenue to the State would increase by more than 100 % when compared with the original Gounkoto feasibility study. Randgold Chief Executive Mark Bristow said the deal was another milestone in the mutually rewarding partnership between the company and the Malian government. “Over more than 20 years, that part- nership has enabled us to bring Syama to account, develop Morila and build Loulo- Gounkoto into one of the world’s largest gold mines. During that time, our opera- tions have contributed US$5,9 billion to the Malian economy in the form of taxes, royalties, dividends, salaries and payments Mothae kimberlite pipe from current bulk sampling. Significantly, the latest recovery at Mothae means all three zones sampled have produced Specials – an 89-carat was the largest special recovered from the South-East zone and a 25-carat was also recovered from the Neck zone . The Mothae kimberlite pipe is a high- quality diamond resource located within 5 km of Letšeng, the highest US dollar per carat kimberlite diamondmine in theworld.

Agreement supports development of super pit The Malian government has agreed to grant Randgold’s Gounkoto mine a 50 % corporate tax reduction for the next four years to support its development of a super pit which will be one of the largest open- cast gold mines in Africa.

The agreement, which is a concession under Gounkoto’s original mining conven- tion that gave Gounkoto the right to apply for additional tax exonerations should it make additional investments, will see the mine’s life extended by more than five years. Likewise the super pit will make a significant contribution to the Loulo- Gounkoto complex’s 10-year plan, which envisages profitable production in excess of 600 000 ounces annually at a gold price

12  MODERN MINING  August 2018

MINING News

Weatherly tackles its water problems at Tschudi Weatherly International has outlined a recovery plan for its Tschudi copper mine in northern Namibia, following a signifi- cant water ingress on 11 May 2018. conducted an assessment of water risk and developed a recovery strategy for the mine. The recovery strategy is based on a 12-week delivery and includes:

driven pumps and installation of 1 800 m of high-pressure HDPE pipelines. A canal and settling dam are now fully commissioned to handle the water dis- charge, with the canal capable of handling more than 6 000 m 3 /h. Distribution from the settling dam is maximised with cur- rent installed infrastructure at 2 000 m 3 /h to direct water to various discharge points via a storm water pond, with the balance of the water overflowing the settling dam back into the aquifer. Significant progress has been made to design, cost and implement a significant upgrade of the dewatering infrastruc- ture. The system will be upgraded to increase abstraction and discharge rate to a nominal 3 000 m 3 /h via a predominantly electric grid-power system. According to Weatherly, the systemwill be developed in three phases at an estimated capital cost of N$44 million. This will include an addi- tional grid power substation to increase power supply to the mine. 

The recovery strategy and expenditure plan, which will require a capital invest- ment of N$14,3 million, has been approved and work is underway to increase pump- ing capacity to lower and stabilise the water levels in all pits and allow mining operations to regain access to ore. “We are confident that with the neces- sary financial assistance we will be able to implement the recovery plan and restore normalised production levels at Tschudi by December 2018,” comments John Sisay, Chief Executive Officer of Weatherly Mining Namibia. “We are appreciative of the support and understanding from the Ministry of Mines & Energy, the Namibian Government at large and all other stake- holders during this challenging time.” Specialist water expert Bob Kinnell from Strategic Water Management in Australia

 water abstraction , related to all equip- ment and infrastructure required to reduce water levels in the pits and to pump it into the canal that runs along the footwall of the pit;  water discharge , dealing with mov- ing the water away from the open-pit mining area and discharging it at re-injection areas which have been approved by the Department of Water Affairs; and  implementation of various supporting actions to improve water management post recovery. The recovery phase is now well under- way with end-June target water levels achieved. Abstraction capacity has been increased from 1 400 m 3 /h to 3 000 m 3 /h through the rental of additional diesel-

August 2018  MODERN MINING  13

MINING News

Firestone Diamonds, whose shares are quoted on AIM, says in its update on oper- ations at its 75 %-owned Liqhobong mine in Lesotho for the quarter ended 30 June 2018 (Q4 of the company’s 2018 financial year) that 261 985 carats were sold in the quarter (Q3: 217 380 carats). The diamonds realised a revenue of US$18,6 million (Q3: US$17,6 million) at an average value of US$71 per carat (Q3: US$81 per carat), mainly due to a larger proportion of run of mine diamonds and fewer valuable stones recovered. Net cash increased by US$2,5 million in the quarter to US$27,8 million. Liqhobong diamond mine enjoys a record quarter The mine maintained its zero lost time injury record with over 6,2 million man hours having now been worked since proj- ect commencement in July 2014. The exceptional operational per- formance resulted in several new production-related records during the final quarter and market guidance being achieved for the financial year to end-June 2018. Recoveries were 36,8 % higher than Q3 at 263 512 carats, resulting in a full year total of 835 832 carats, within guidance of between 800 000 and 850 000 carats. The

grade of 25,7 carats per hundred tonnes (cpht) was higher than the 22,2 cpht in Q3 and the 22,0 cpht for FY 2018. Tonnes treated were 18,0 % higher than Q3 at 1,02 Mt, resulting in a full year total of 3,8 Mt, ahead of guidance of 3,6 Mt. The costs for Q4 were US$10,98 per tonne treated and US$11,91 per tonne treated in FY 2018 despite a stronger local currency during most of the year. Paul Bosma, Firestone’s CEO, com- mented: “The fourth quarter saw record production. We were able to access the high grade blocks in the mine plan and thanks to excellent operational perfor- mance we were able to achieve record carat recoveries. The increased volume translated into an improved cash position at the end of the financial year. “As always, the average dollar per carat achieved is highly sensitive to the inci- dence of special stones, of which we saw a lower incidence in this particular quarter. However, we continue to have grounds for optimism given the parts of the orebody we plan to exploit over the next 12months. We recently completed a structural and geotechnical assessment of the pit and the outputs are now being used to rerun our life of mine plan. We look forward to updating the market in this respect during the first half of FY 2019.”  ment is an expansion of Stage 1 production based on the market demand for Bunyu’s graphite products and leveraging the large scale graphite mineral resource and Bunyu’s close proximity to critical infrastructure.” According to Volt’s Non-Executive Chairman, Asimwe Kabunga, the delivery of a robust Stage 1 Feasibility Study is a key step towards unlocking the considerable underlying value of Bunyu. “Once funding is obtained, the company will proceed with the Front End Engineering and Design for Stage 1 and place orders for long lead time components. Concurrent with the Stage 1 development, Volt also plans to commence work on the definitive feasibility study for the Stage 2 expansion.” The proposed new mine will be a conventional drill, blast, load and haul open-pit operation with waste material stacked in waste dumps. Processing will be by well-proven crushing, grinding and flotation methods. 

A recent view of mining operations at Liqhobong (photo: Firestone).

Volt delivers Stage 1 Feasibility Study on Bunyu Flake graphite development company Volt Resources (VRC), listed on the ASX, has completed a positive Feasibility Study (FS) into the Stage 1 development of its flagship Bunyu graphite project located in Tanzania. Stage 1 financial analysis delivers a favourable NPV and IRR over a payback period of 4,4 years. The total EBITDA is put at US$93,6 million over the Stage 1 project period. The average FOB operating cost over Stage 1 is estimated at US$664/tonne and the start-up capital cost at US$31,8 million.

following the completion of a large scale Pre-Feasibility Study (PFS) in December 2016. Concurrent with the PFS completion, Volt announced the largest graphite JORC mineral resource in Tanzania and one of the largest in the world. “Following a detailed strategic review of product markets and financial markets, in May 2017 Volt announced a clear pathway to transition the company into a globally significant producer of material quantities of high quality graphite products. It was decided that this accelerated pathway would be achieved via the development of the Bunyu project over two stages. “Stage 1 is focused on the development of a nominal 20 000 to 25 000 t/a graphite mine and processing facility in Tanzania with planned exports of graphite products into the USA, China and other market,” he continues. “The proposed Stage 2 develop-

Volt’s Chief Executive Officer, Trevor Matthews, commented: “The Stage 1 Feasibility Study is another important step forward in Volt’s plan to become one of the top three global producers of natural flake graphite. “The company has been implement- ing a two-stage development strategy

14  MODERN MINING  August 2018

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