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MODERN MINING
August 2017
MINING News
Sylvania Platinum to acquire Pan African’s Phoenix plant
Sylvania Platinum Limited, the low-cost
PGM processor and developer, has entered
into a conditional agreement with Pan
African Resources (PAR) to acquire 100 %
of the shares in and claims against Phoenix
Platinum Mining Proprietary Limited for a
purchase price of R89million settled in cash.
The Phoenix operation consists of a
30 000 tonnes/month Chrome Tailings
Retreatment Plant (CTRP) which was com-
missioned in November 2011 and reached
full production in May 2012. It is located
in North West Province near to Sylvania’s
Millsell and Mooinooi complexes.
Phoenix currently recovers PGMs from
chrome tailings dumps and dams through
mineral rights agreements pertaining
to the Kroondal and Elandskraal tailings
dumps, and Buffelsfontein tailings dams
and potential future current arisings at the
Lesedi mine, recently acquired by Samancor
Chrome. As part of the acquisition, Sylvania
will acquire an independent property for
tailings disposal with associated regulatory
approvals.
Phoenix currently has chrome dump
reserves of approximately 2,4 Mt, con-
taining approximately 2,5 g/t 4E PGE.
It is estimated that these are sufficient
to sustain current production levels for
approximately eight to nine years.
During the previous published reporting
period for the six months to 31 December
2016, Phoenix produced 762 oz of PGMs per
month, generating approximately US$0,5
million revenue per month, at a cash oper-
ating cost of approximately US$643/oz.
Commenting on the transaction, Syl
vania’s CEO, Terry McConnachie, said: “The
Phoenix project is a significant acquisition
for Sylvania as we look for growth oppor-
tunities. Phoenix is a PGM dump operation
with potential synergies with our existing
operations which will assist us in increasing
our production and earnings profile going
forward. The geographical location of this
asset will allow us to effectively utilise our
existing infrastructure and management
team to enhance this business. We look for-
ward to bringing the Phoenix asset into the
Sylvania portfolio.”
Perseus Mining, which operates the
Edikan gold mine in Ghana and is listed on
the ASX and TSX, reports that it “steadily
advanced” the development of its sec-
ond gold mine, Sissingué, during the June
quarter. The open-pit mine, expected to
produce 80 000 oz/a in its first 3,25 years
and 70 000 oz/a over its five-year life, is
located in Côte d’Ivoire.
According to the company, by the end
plete, as is the procurement of all significant
long lead items of plant and equipment.
On site, the construction team contin-
ues to make sound progress, says Perseus,
with the bulk concrete works associated
with the plant and installation of under-
ground services nearing completion. The
majority of buildings including offices and
the warehouse are either complete or well
advanced, as is the erection of steelworks
associated with the crusher and SAG mill.
The CIL tanks are being erected and
the contractor responsible for the instal-
lation of the SAG mill has mobilised to site
and will start work early in the September
2017 quarter. During the quarter, the air-
strip, tailings dam, mine camp and work
on the river intake structure were also
completed.
Assembly of the generators and power
station control panels is well advanced and
this equipment is on schedule to be deliv-
ered to site during the December 2017
quarter.
Given the progress made to date on
all fronts, Sissingué remains on track to
produce its first gold in the March 2018
quarter.
Perseus’s Technical Services and
Human Resources teams have prepared
comprehensive Operations Readiness
Plans for the Sissingué operation with
the objective of ensuring that the ramp
up to full scale gold production occurs as
efficiently as possible following commis-
sioning of the mine and plant.
The process plant at Sissingué under construction (photo: Perseus Mining).
First gold pour at Sissingué expected in early 2018
of the quarter development works were
tracking on schedule with approximately
61 % of the works completed. The devel-
opment is progressing in line with budget,
with incurred expenditure to date (includ-
ing US$10,4 million of early works and
holding costs) totalling US$67,6 million,
and the forecast expenditure to comple-
tion estimated at US$47,8 million.
Off site, detailed engineering is com-