MM October 2015 Final revise

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October 2015MODERN MINING17
MINING News
Assay results received from
Northern Cape tailings project
AIM-listed Xtract Resources has announced the copper assay results
received from the drilling campaign on its O’Kiep and Carolusberg cop-
per sulphide tailings dams located in the Northern Cape close to the town
of Springbok (within a 30 km radius). A Phase 1 drilling and sampling
programme was recently completed at the site.
The Carolusberg tailings dam reported an average in-situ copper value
of 0,21% Cu (lowest value of 0,02 % Cu and highest value of 0,53 % Cu)
compared to an assumed in-situ value of 0,19 % Cu while the O’Kiep
tailings dam reported an average in-situ copper value of 0,14 % Cu (low-
est value of 0,05 % Cu and highest value of 0,28 % Cu) compared to an
assumed in-situ value of 0,23% Cu.
At an assumed specific gravity of 1,5 (test work is still outstanding
on the actual specific gravity), the Carolusberg tailings dam represents
29,35 Mt of material compared to an initial assumed volume of 28 Mt
while the O’Kiep tailings dam represents 7,3 Mt compared to an initial
assumed volume of 5,8 Mt. The Carolusberg dam contains approximately
122 million pounds of copper in situ while the equivalent figure for the
O’Kiep dam is approximately 22 million pounds of copper in situ
Xtract’s initial in-house calculations, which have not been validated
by any independent third party, still estimate that the project has an NPV
of US$110 million with an IRR of 68 %. These calculations are based on a
number of assumptions including: recoveries of 85 %; a copper price of
US$4 500/t; operating costs of US$2 500/t; a requirement for US$40 mil-
lion of new capital to finance the project; and a discount rate of 10 %. The
projected annual throughput is 5,6 Mt over the first 10 years of the proj-
ect which declines to an annual throughput of 1,4 Mt over the last four
years. It is envisaged that the in-situ copper grade would be upgraded to
a concentrate grade of 25 % Cu.
“We are still awaiting the recovery and mineralogical test work
results which will enable the company to conclude if it will move ahead
with the project and complete a bankable feasibility,” comments Jan
Nelson, Chief Executive Officer of Xtract. “The assay results received are
in line with our initial assumed estimates and expectations and we are
very pleased with these results.” 
Tenova reported recently it had entered into final negotiations with
SGS to sell its EPCM business operations based in South Africa, known
as Bateman Projects. Tenova will remain active in the mining industry,
focusing on its activities in the technology and equipment sector.
Bateman Projects specialises in providing process plant design and
engineering, project management and commissioning and optimisa-
tions services for mineral processing plants over a variety of minerals
including gold, iron ore, copper, uranium and coal. The Bateman modu-
lar process plant business and expertise will form part of this transaction.
The transaction is subject to approval by the South African Competition
Commission and is expected to close within the next few weeks.
Based in Johannesburg and active throughout sub-Saharan Africa,
as well as providing specialised project services in many other parts of
the world, the business employs 250 experts and staff and has gener-
ated revenues in excess of €30 million in the latest financial year (ended
June 30, 2015). 
SGS to acquire Bateman Projects
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