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May 2015
MODERN MINING
5
MINING News
Lucapa recovers 63-carat gemstone at Lulo concession
Lucapa Diamond Company,
listed on the ASX, has
announced the recovery of
another large diamond – an
exceptional 63,05 carat stone
– from the alluvial mining
operations at the Lulo dia-
mond concession in Angola.
Testing with a Yehuda col-
orimeter has confirmed that
the 63,05 gem is a Type IIa
diamond, the rarest category
of diamond in the world.
The diamond was recov-
ered from mining area 31 at Lulo, which is
north of the 150 t/h diamond processing
plant. It is the third largest diamond recov-
ered at Lulo behind the 131,40 carat and
95,45 carat gems recovered from the origi-
nal bulk sampling activities much further
south of the plant.
In November 2014, Lucapa and its
partners signed a 35-year mining licence
agreement tomine the alluvial diamonds at
Lulo within a 218 km
2
area which includes
more than 50 km of the Cacuilo River, its
valley and terraces. Alluvial diamond min-
ing commenced in January 2015.
refurbishment is to start in the second
quarter.
Metallon also reports that it has
appointed KBA (Pty) Ltd as New Projects
Co-ordinator. KBA will be working closely
with the Metallon New Projects Team in
Zimbabwe on the 2015 Implementation
Programme. The key areas of project
management will be the new sands
retreatment plant at Mazowe, the Mazowe
plant and underground upgrade and the
new tailings dams at Mazowe and Shamva
mines. Another key focus will be bring-
ing Redwing mine back into production
through mine dewatering and plant and
underground refurbishment.
Mzi Khumalo, Chief Executive and
Deputy Chairman of Metallon Corporation,
commented: “There have been some
challenges in production during the first
quarter due to equipment breakdowns;
however, these issues have been addressed
through the equipment replacement pro-
gramme. Despite this we have still seen an
improvement in production of 8 % fromQ1
2014 and work has advanced with our new
projects. In the second quarter of 2015, we
look forward to continued improvement
in production and further progress in pro
jects implementation. Metallon remains
committed to a reduction of costs and
remaining a low cost gold producer.”
Metallon has four mines – How, Shamva,
Mazowe and Arcturus – in production with
a fifth, Redwing, due to be re-opened this
year. All are underground operations.
VAST (formerly African Consolidated
Resources), the AIM-listed resource and
development company, has announced
an update on progress on development
at the Pickstone-Peerless gold mine in
Zimbabwe.
As announced on 17 October 2014,
Pickstone-Peerless, situated in the mid-
lands of Zimbabwe, is being jointly
developed by VAST’s Zimbabwean sub-
sidiary and Grayfox Investments (Private)
Limited via a co-owned operating com-
pany. The co-owned operating company
has a capex budget of US$4 million equity,
funded by Grayfox, with VAST retaining
management control via a chairman’s
casting vote.
As stated in the company’s results for
the six months to 30 September 2014,
mine commissioning at an initial mining
rate of 10 000 tonnes per month from the
opencast oxide gold cap was planned for
the beginning of H2 2015 with first positive
cash flows later in H2 2015.
All regulatory requirements are in place,
including the mining permit, environmen-
tal approval and works plan approval.
A decision was made to acquire slightly
enhanced processing equipment to facili-
tate and reduce the cost of the next phase
of expansion. The increased working capi-
tal requirement is planned to be provided
by facilities from local financial institutions
which have indicated interest in the proj-
ect. These facilities are now in the process
of negotiation.
The majority of the required senior and
middle management personnel are in
place. A significant part of the operational
staff is available. There are ample experi-
enced mining specialists in Zimbabwe and
no personnel shortages are expected.
The mining contractor is on site estab-
lishing his required facilities. Elements of
the mining fleet are also on site and prepa-
ration of the opencast mine is underway.
Pit preparation will be undertaken dur-
ing May 2015 and an ore stockpile (one
month) will be created in June 2015, ready
for hot commissioning and first production
in August 2015. Annualised gold produc-
tion of 10 000-12 000 oz Au is expected
from the initial mining rate of 10 000
tonnes per month. Grade control drilling
has commenced.
Refurbishment of the existing carbon-
in-pulp (CIP)/carbon-in-leach (CIL) facilities
and the civil engineering for the new facili-
ties is 70 % complete. The new mill and
crusher ex-China has arrived in Durban,
South Africa, and (as of early May) was en-
route by road to the mine.
Pickstone-Peerless heads for production
The 63,05 carat stone recovered from the alluvial mining opera-
tions at the Lulo diamond concession in Angola (photo: Lucapa)