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16
MODERN MINING
November 2016
MINING News
In its report for the quarter ending
30 September 2016, ASX-listed Syrah
Resources says that its Balama graphite
project remains on course for commission-
ing in Q2 of calendar year 2017.
Balama – situated in the Cabo Delgado
province of northern Mozambique, some
200 km west of the port town of Pemba –
currently hosts what is reported to be the
world’s largest reserve of contained graph-
ite at Balama East and Balama West, with
a combined ore reserve (JORC 2012) of
81,4Mt at 16% total graphitic carbon (TGC),
sufficient for over 40 years of mine life.
The project is planned as a simple, open-
pit mining operation with a low strip ratio.
Based on a mining feed rate of 2 Mt/a, at an
average head grade of approximately 19 %
TGC over the first 10 years of operations,
approximately 355 000 tonnes of graphite
Golden Star awarded mining lease for Mampon
Golden Star Resources (GSR), listed on the
NYSE MKT and TSX, has received a mining
lease for the Mampon deposit in Ghana.
Mampon is a high grade, oxide deposit
containing 45 000 ounces of gold (304 kt at
4,60 g/t), approximately 80 km to the north
of GSR’s CIL processing plant at the Bogoso
site. There is an existing, good quality road
connecting the deposit and the processing
plant for the majority of the distance, so lim-
ited capital expenditures will be required in
order to bring Mampon into production.
Higher grade ore from Mampon will be
blended with ore from the Prestea Open
Pits, which is expected to enhance Golden
Star’s cash flow in 2017. Following the
receipt of the mining lease, the next step
for the company is to obtain an environ-
mental permit. GSR expects to start mining
Mampon in the first half of 2017.
Golden Star began mining the Prestea
Open Pits in the third quarter of 2015 to
bridge the gap between the Bogoso refrac-
tory operations ceasing production and
the commencement of production from
the high grade Prestea Underground Gold
Mine, which is expected to occur in the sec-
ond quarter of 2017.
The company had anticipated that pro-
duction from the Prestea Open Pits would
be completed by the end of the third quar-
ter of 2016 but production is now forecast
to continue until the second half of 2017.
Golden Star says it will also endeavour to
delineate additional mineral reserves in the
area in order to further extend production
from the Prestea Open Pits and maintain a
second ore source from the mine.
“I am very pleased that Golden Star has
been granted themining lease for Mampon,”
comments Sam Coetzer, Golden Star’s
President and CEO. “Through mining this
high grade surface deposit we will generate
strong short-term cash flow and it will assist
us in maintaining production from Prestea
until Prestea Underground commences pro-
duction in the second quarter of 2017.
“With exceptionally high grade min-
eral reserves at 14,02 g/t, the real prize at
Prestea is the underground mine, but the
Prestea Open Pits have provided and will
continue to provide useful cash flow to us
during this transition period and I am very
glad that, along with Mampon, they will
now continue to produce until at least the
second half of 2017.”
concentrate will be produced per annum.
Syrah intends to move product from
Balama to Nacala port, located approxi-
mately 490 km south-east of the project.
Trucking of product will be outsourced to
a contractor and, at full production, there
will approximately 67 trucks (B-Double
trailers), each transporting approximately
36 one-ton bags of product from Balama
to Nacala daily.
The ramp up of personnel on site has
continued with approximately 1 400 direct
staff and contractors on site by late October,
a figure which is expected to peak at 2 000.
Detailed engineering and design of the
process plant has been completed and
over 70 % of the required concrete for the
plant has been poured by the civil contrac-
tor, CMC Africa.
The mining fleet required for full opera-
Balama on course for Q2 2017 commissioning
Slabs for the product classification and bagging area at Balama (photo: Syrah).
tions has beenmobilised including nine Bell
B40 articulated dump trucks, two Liebherr
excavators, two Caterpillar dozers, two
Caterpillar graders and two fuel tankers. The
mining contractor, Tayanna Mozambique,
has commenced establishment of its min-
ing compound and offices. Construction of
the run-of-mine (ROM) pad with a capacity
of 360 000 tonnes is underway with com-
pletion expected in January 2017.
The Structural, Mechanical and Piping
(SMP) contract has been awarded to Kentz
Engineers & Contractors Limitada (Kentz), a
member of the global SNC-Lavalin Group.
Kentz has mobilised to site and established
a 300-person camp.
Syrah reports that the Balama project
budget has been increased from US$175
million to US$185 million to incorporate
changes of scope related to improved
product quality. These changes are: intro-
duction of attrition cells to the process flow
sheet; and additional on-stream analysis to
optimise product qualification.
During the quarter, Syrah announced
the resignation of MD Tolga Kumova as
“part of a transition reflecting the evolving
strategic direction of the company and the
key development activities it is currently
undertaking”. Chairman Jim Askew has
stepped into an Executive Chairman role for
the interim period and, says Syrah, a global
search for a new MD has commenced with
the objective of making this appointment
within the next fewmonths.