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MODERN MINING
January 2016
MINING News
Update on BMR Mining’s
Kabwe tailings project
In our October issue on page 5, we pub-
lished a news item entitled ‘Peer Review vali-
dates process route for Kabwe project’. This
stated that BMR Mining, which is developing
the Kabwe treatment project in Zambia, had
entered into an agreement with Sable Zinc
Kabwe, a subsidiary of Glencore, in respect
of land adjacent to BMR’s tailings dump and
certain key items of equipment. The inten-
tion was that BMR Mining would lease the
land from Sable Zinc Kabwe and site its pilot
plant on it.
While our news story was correct at the
time of going to print, BMR Mining has sub-
sequently decided to construct its plant on
land owned solely by Enviro Processing Ltd,
Kabwe (EPL), its wholly owned subsidiary,
and we have been asked to point this out
to readers. As a result, BMR Mining will not
be proceeding with the leasing of land and
equipment from Sable Zinc Kabwe.
AIM-listed Hummingbird Resources has
announced its maiden ore reserves at the
Yanfolila gold project in Mali. The Reserve
Report is based on the resources at the
Komana East andWest pits as these will be
mined first (Phase 1).
The project has significant resources
at other nearby deposits including
Guiren West, Gonka, Sanioumale East and
Sanioumale West which will be mined at a
later stage (Phase 2).
The report puts probable reserves at
6,82 Mt at 3,03 g/t for 665 600 oz Au. This
is an increase of 118 600 oz Au from the in-
pit mineral resource inventory reported in
the March 2015 Optimisation Study mine
plan of 547 000 oz Au, with the grade
increasing by 15 %, using a US$1 100 pit
shell. According to Hummingbird, 100 % of
in-pit indicated resources have converted
into reserves.
Comments Dan Betts, CEOof Humming
bird Resources: “Achieving a maiden ore
reserve at Yanfolila is a significant mile-
stone for the company. With an increased
gold grade of 3,03 g/t, it confirms Yanfolila
as a quality, high-grade, low cost project.
“We have increased the size of our pro-
cessing plant to process up to 1,24 Mt/a, as
well as processing harder, fresh ore types.
The ability to process greater volumes of
fresh ore has allowed us to expand and
deepen the open pits of our maiden ore
reserve, resulting in more recoverable
gold. Together with a more flexible operat-
ing plan, it also gives us scope to further
expand our ore reserves from our existing
deposits. The 24 % increase in throughput
will also significantly enhance annual gold
production.
“Additionally, the plant has been
designed with the ability to further
increase capacity to 1,5 Mt/a. With so many
indicated ounces outside the mine plan at
nearby deposits and high-grade under-
ground potential at Gonka, the company
believes there remains significant produc-
tion upside at Yanfolila.”
The project has undergone an extensive
amount of development since the last tech-
nical update given in June 2015. This work
has focused on maximising the returns of
the project, an ability to withstand a sus-
tained low gold price environment and
satisfy the independent technical consul-
tants undertaking due diligence on behalf
of Taurus Funds Management.
Announcing the maiden ore reserves
is the first step to finalising an updated
Maiden ore reserves declared for Yanfolila
The new process flow sheet for the Yanfolila project.
mine schedule and economic analysis for
the project. Increasing the plant capacity
to 1,24 Mt/a from the previously reported
1 Mt/a (Optimisation Study, March 2015)
has increased annual gold production and
improved the ability of the plant to process
fresh ore material.
The processing route has beenmodified
to handle greater volumes of freshmaterial
and now includes a conventional two-
stage crushing circuit. Significant work has
been done on ore stockpiling to enhance
the mine schedule. Average recoveries
show 94 % recovery in oxide, 92 % in tran-
sitional and 91 % in fresh material.
Hummingbird says that detailed due
diligence on the project and technical
improvements have taken longer than
was anticipated by the company – a func-
tion of the revised plant flow sheet and
economic assumptions in a declining gold
price environment. It stresses, however,
that the project itself continues to improve
in all areas and that the construction time
remains constant. The extended due dili-
gence period will have a knock-on effect
to first gold pour and this will now most
likely occur during 2017.