Modern Mining December 2015

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December 2015 MODERN MINING15
MINING News
WP ad 90x260.indd 1 2015/04/20 10:43
Galane Gold, which is listed on the TSX-V and owns the Mupane gold
mine in Botswana, reports it has closed its previously announced
acquisition of a majority of the issued and outstanding ordinary
shares of Galaxy Gold Mining Limited, a gold mining company with
operations in Mpumalanga Province in South Africa.
“We are pleased to have completed the acquisition of Galaxy and
added what we believe is a significant asset to our portfolio,” com-
ments Galane’s CEO, Nick Brodie. “Our experienced management
team looks forward to taking an under-performing asset and return-
ing it to full and profitable production within the next 12 months. The
team can draw from the experience gained in revitalising Mupane
and an in-depth knowledge of mining and processing in the green-
stone belt, including in Barberton itself.
“From our due diligence we have confidence that the potential
of the Galaxy asset will assist Galane in being able to operate in any
realistic gold price environment. To support that confidence we are
currently in the process of completing a National Instrument 43-101
technical report and commencing a pre-feasibility study to support
the expansion of Galaxy’s operations up to 50 000 ounces per annum.
“Galaxy has been operating with a working capital deficiency
which has led to disputes with critical suppliers and contractors,”
he continues. “As a result, Galaxy has also not met all of its statutory
requirements. This has required an extended review of the business
to satisfy ourselves that Galaxy can be resurrected to its historic pro-
duction levels.”
Galaxy’s mining assets are located on the Barberton Greenstone
Belt (BGB), approximately 10 km to the west of the town of Barberton.
They include several historical mining operations on the BGB as well
as tailings storage facilities comprised of previously mined and
processed material. Galaxy’s existing processing plant is in need of
refurbishment and consists of crushing, milling, flotation, thicken-
ing, Biox, CIL, elution and tailings disposal facilities designed to treat
16 000 tonnes of ore per month. 
BlueRock signs on Diacar as a
sub-contractor at Kareevlei
AIM-listed BlueRock Diamonds has announced that it has concluded
an agreement with Diacar Mining and Plant Hire to act as its sub-
contractor. Under the terms of this agreement, Diacar has established
a second processing plant at the Kareevlei site in the Northern Cape
at its own cost in order to process kimberlite of over 70 mm in size
(Oversize Material) – which BlueRock currently does not have the
machinery to process – at a rate of over 40 tonnes an hour.
The agreement is for a period of five years although it is review-
able by BlueRock on an annual basis based on the performance of
Diacar in the preceding 12 months. Under the terms of the agree-
ment, Diacar is responsible for all costs other than the mining of the
Oversize Material and diesel and is responsible for producing concen-
trate to be sorted by BlueRock.
BlueRock retains ownership of and is responsible for the marketing
of all diamonds recovered from the concentrate. It is also entitled to
60 % of all revenues arising from the Diacar operations net of licence
fee, taxes and selling costs. 
Galane Gold acquires Galaxy