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MODERN MINING
November 2016
MINING News
Metallon Corporation, which oper-
ates several underground gold mines in
Zimbabwe, produced 26 622 ounces of
gold in Q3 2016, an 18 % improvement
on the previous quarter. The company –
whose production for the year to date is
69 680 ounces – attributes the increase to
improvements in performance at its How,
Mazowe and Redwing mines.
The group’s C1 costs were US$737 per
ounce and the all-in-sustaining cost (AISC)
US$960 per ounce for Q3 2016. This is
an improvement of 4 % and 1 % respec-
tively when compared to Q2 2016 (C1 cost
US$764 and US$971). C1 costs improved
due to increased production and cost effi-
ciencies as a result of new equipment and
increased capacity. The AISC was impacted
by major repair and renewal work at
Shamva mine as well as expenditure on
expansion projects, which will significantly
increase future gold production.
In Q3 2016 development metres drilled
totalled 4 494, a 14 % increase on the
3 871 m drilled in Q2 2016.
Group production forecast for 2016 is
expected to be approximately 102 000
ounces due to delays in the construction of
the new processing plant at Mazowe mine
and the ramp up at Redwing mine.
Commenting on the expansion proj-
ects, Metallon says that work relating to
the deepening of the 16N7 Shaft at How
mine has commenced. The shaft deepen-
Surface infrastructure at Howmine near Bulawayo, Metallon’s flagship asset (photo: Metallon).
Above:
The new processing plant at Mazowe,
pictured here at an advanced stage of construc-
tion, will increase capacity to 70 000 tonnes per
month (photo: Metallon).
Metallon lifts its gold production by 18 %
ing from 28L to 34L is to access ore below
28 Level which will increase future pro-
duction. Commissioning of the deepened
shaft is expected in Q1 2019.
Located 30 km south-east of Bulawayo,
How is Metallon’s flagship operation. It has
been in operation since 1942 and has pro-
duced over a million ounces of gold over
its life.
At Shamva mine, located 90 km north-
east of the capital city of Harare and
some 29 km east of Bindura, the new
Tailings Storage Facility (TSF) is to be
commissioned in Q4 2016. Following the
appointment of contract miners at Shamva
BlueRock raises funds for Kareevlei operation
BlueRock Diamonds, the AIM-listed dia-
mond mining company which owns and
operates the Kareevlei diamond mine,
reports it has raised an aggregate of
£750 000 (before expenses) via a share
placement and an extension to the existing
convertible loan note (CLN) amounting to
£75 000.
Kareevlei is located 100 km north-west
of Kimberley in the Northern Cape.
The proceeds of the fund raising will be
used to progress the new management
team’s plans to target production levels
of 30 000 tonnes per month at a reduced
cost as well as continuing to refine the com-
pany’s plant in order to improve achieved
grades.
In particular, BlueRock is looking to
acquire primary crushing equipment which
is expected to be more cost effective than
using external contractors.
The primary crushing circuit is expected
be installed and commissioned during the
first quarter of 2017. The company says it
will seek to mitigate the effects of the con-
tinued drought conditions through the
use of increased water recycling and other
measures such that the targeted produc-
tion can be maintained.
BlueRock will continue to progress the
identified remedial work to the processing
plant in November and December. During
this time the plant will be tested with stock-
piles prior to the recommencement of the
drill-and-blast programme in mid-January
2017, following which it is expected that a
steady stream of Run of Mine material will
be available.