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16
MODERN MINING
February 2017
MINING News
Ramp-up at Montepuez progressing well
ASX-listed Mustang Resources reports that
its strategy to ramp up production and gen-
erate the first sales revenue at its Montepuez
ruby project in Mozambique is firmly on
track, with commissioning of the relocated
processing plant now completed. The relo-
cation has placed the plant closer to the key
Alpha deposit and important water sources.
Production is currently ramping up to
the targeted rate of 525 tons/day (approxi-
mately 11 025 tons per month, assuming 21
operational days per month running one
shift), which is forecast to result in a sub-
stantial increase in the company’s monthly
ruby production.
Mustang also reports that it has sent its
first commercial batch of rubies to US ser-
vice providers and customers. These include
the highly regarded gemstone cutter Meg
Berry and leading jewellers in California. This
shipment is aimed at enabling Mustang to
obtain further opinions from experts about
the range in potential ruby values and the
best marketing strategies to unlock their
maximum value.
“The initial results following the plant
relocation suggest we can triple through-
put rates,” says Mustang’s MD, Christiaan
Jordaan. “At the same time, we have
achieved a key milestone for Mustang with
the first commercial shipment of rubies
recovered through bulk sampling as well
as our highly successful prospecting teams
that form part of our local community
engagement and employment programme.”
Mustang reports that it mined and
stockpiled 15 585 m
3
of ruby-bearing
gravel (including the immediate material
above and below the gravel contacts) from
the Alpha deposit during the period from
the start of the bulk sampling programme
to 20 January 2017. Of this total, 7 290 m
3
was processed through the plant resulting
in the recovery of 1 638,76 carats of high
quality ruby.
In addition to these recoveries, Mustang
has used prospecting teams to assist in its
exploration programme and to acceler-
ate the discovery and testing of new areas
which can then be followed up with bulk
sampling and auger drilling. The company
says this strategy has already proven itself to
be highly successful in covering a great deal
of ground and rapidly testing new areas.
Asanko Gold Inc, listed on the TSX and
NYSE MKT, has announced production
results for the fourth quarter of 2016 (Q4)
from Phase 1 of the Asanko Gold Mine
(AGM), located in Ghana.
Ore mining rates in the quarter aver-
aged 433 353 tonnes per month (tpm) at
an average mining grade of 2,0 g/t. Ore
mining took place from the central portion
Impressive quarterly performance by Asanko Gold Mine
of the pit as well as the newly opened up
‘eastern flank’. The dual ramp system was
fully commissioned enabling access from
both the eastern and western sides of the
Nkran pit. Focus on waste mining shifted
to the north and western sides in prepara-
tion for the next sequence of ore mining in
the centre and east of the pit.
The processing plant operated at an
The Asanko processing plant operated at an annualised rate of 3,6 Mt/a (20 % above design) during Q4 following crushing circuit upgrades in late Q3 2016
(photo: Asanko Gold).
annualised rate of 3,6 Mt/a (20 % above
design) during the quarter following
the crushing circuit upgrades in late Q3
2016. In addition, metallurgical recover-
ies continued to exceed expectations at
94 %. With the benefit of six months of
steady-state operations data, the com-
pany expects these recoveries to continue
into the foreseeable future. As a result,
gold production for the quarter averaged
19 000 ounces per month, which is well
above the original feasibility parameters.
Gold production for the quarter was
57 178 ounces with gold sales of 58 483
ounces at an average realised price of
US$1 199 per ounce, generating gold sales
revenue of US$70,1 million.
Commenting on the quarter’s perfor-
mance, Peter Breese, President and CEO
of Asanko Gold, said, “The operations
once again had an impressive quarter with
record production of over 57 000 ounces.
With the mine now delivering against
expectations and the process plant run-
ning steadily at 300 000 tonnes per month,
or about 20 % above design, we enter 2017
with a high performance operating asset
that will position us well to finance our
Phase 2A expansion project with cash flow
from the operations.
“Such a strong operating performance
would not be as meaningful without the
requisite safety performance and I’m
again delighted to report that no Lost Time
Injuries were recorded during the quarter.
It underscores the tremendous efforts of
the on-site team who I commend for their
dedication and hard work during a trans-
formational year.”