March 2015
MODERN MINING
7
MINING News
In November last year, Caledonia Mining
Corporation, listed on the TSX and AIM,
announced the Revised Investment Plan
and production targets for the Blanket
gold mine near Gwanda in Zimbabwe.
In terms of the plan, Blanket is develop-
ing a‘Tramming Loop’750 mbelow surface
and continuing to sink the No 6 Winze to
provide rapid – but limited – access to
deeper level resources. In addition, it is
sinking a new 6-m diameter Central Shaft
from surface to 1 080 m. The new Central
Shaft will provide access to the current
inferred mineral resources below 750 m
and allow for further exploration, develop-
ment and mining in these sections along
the known Blanket strike, which is approxi-
mately 3 km in length.
On December 2, 2014, Caledonia pub-
lished a Preliminary Economic Assessment
of the Revised Plan which includes the
following conclusions: an Internal Rate of
Return of 267 % and a Net Present Value of
the Blanket mine of US$147 million.
Caledonia has now provided an update
on the implementation of the Revised Plan
as at the end of January 2015.
Work on the Tramming Loop began in
November 2014. Some 384 m out of the
total length of 800mhave been completed
and the loop is on target for completion as
scheduled in June 2015. A further 60 m
of sinking is required at the No 6 Winze
to achieve the interim objective of 930 m
below surface. Completion of the No 6
Winze is expected, as planned, at the end
of July 2015. The winders at No 6 Winze
have been installed and commissioned.
At the Central Shaft, preparatory work
is in hand to allow pre-sink work to com-
Caledonia provides update on Blanket
mence, as scheduled, in July 2015. Two
3 100 kW double-drumwinders have been
acquired which, once refurbished, will be
sufficient for the sinking phase and even-
tual production up to a depth of 2 000 m
below surface.
Steve Curtis, Caledonia’s Chief Executive
Officer, commented: “The Board is pleased
with the ongoing implementation of the
Revised Investment Plan and we look for-
ward to keeping the market updated with
further progress.”
The Blanket gold mine near Gwanda in Zimbabwe showing the No 4 Shaft headgear. The mine is to sink
a new 6-m diameter Central Shaft from surface to 1 080 m (photo: Caledonia).
Askaf iron ore project
comes to a standstill
In October 2014, ASX-listed Sphere Minerals
(which is controlled by Glencore) initiated
a slowdown and a review of the Askaf iron
ore project in Mauritania. Iron ore prices in
China were then approximately US$80/t; the
2015 year-to-date average price is around
US$65/t.
Based on the results of the review, Sphere
says it has concluded that while there are
potential improvements in operating costs,
capital efficiency and product quality, at cur-
rent prices there is no prospect for profitable
development of theAskaf project. Accordingly,
it has determined to defer further develop-
ment of Askaf. All construction commitments
are being closed out, expenditure minimised
and employment numbers reduced.
Sphere says it will continue to monitor
and assess market conditions and whether
it is economic to restart the Askaf project at
some time in the future.
Sphere reports, however, that the fea-
sibility study on the El Aouj project, also in
Mauritania, is continuing. It is beingmanaged
by the El Aouj Joint Venture Company.
Aveng Moolmans (Pty) Ltd P.O. Box 498, Isando, 1600 Tel: +27 10 207 7000 • Website: avengmoolmans.com Aveng Moolmans is the open cut contract miner of choice Core Values - Safety, Honesty and Accountability FOCUS AREAS • Customer Satisfaction • Operational Excellence • People Growth0315 MOOLMANS.indd 1
2015/03/19 03:40:40 PM