Modern Mining February 2015

MINING News

Jubilee Platinum and Hernic to partner on tailings project Jubilee Platinumsays it has concluded a Heads of Agreement (HOA) with Hernic Ferrochrome, the world’s fourth largest integrated ferrochrome producer. Hernic intends appointing Jubilee as the exclusive party to beneficiate the chrome and PGMs contained in its surface tailings. In addition to its PGM-containing surface tailings, Hernic also has access to at-surface secondary stocks. The HOA facilitates the processing of approximately 1,7Mt of chrome tailingsmaterial andHernic identified that the tailings material could exceed 3 Mt through additional drill- ing programmes. The 1,7 Mt of chrome tailings material has been fully drilled and assayed for chrome and PGM content to produce a resource statement. Approximately 90 % of the resource is classified within the measured category under the internationally recognised SAMREC code. Comments Leon Coetzer, Chief Executive of Jubilee: “We are very proud as a company to be selected as the exclusive partner to execute Hernic’s PGM processing project following an extensive selection pro- cess by such a prestigious entity as Hernic. The envisaged project will be the largest PGM beneficiation plant of chrome tailings re-claimed from a surface chrome tailings dam in South Africa.” Under the HOA, Hernic and Jubilee intend concluding a plant engi- neering and design agreement as well as a co-operation agreement in respect of PGM concentrate to facilitate the construction and opera- tion of a PGM processing plant at Hernic.  “In addition, following the review of the viability of underground mining, a decision was made on the final Bauhinia Creek pit design and the pushback was commenced in April 2014. The Bauhinia Creek push- back will remain a key operational challenge and focus during 2015 as the company looks to implement the life of mine extension project.”  Shanta beats its guidance for 2014 production at New Luika Shanta Gold, which operates the New Luika Gold Mine (NLGM) in the Lupa goldfield of south-west Tanzania, has released its production and operational results for the quarter ended 31 December 2014. Gold production for the quarter was 19 097 ounces (Q3: 22 721 ounces), in line with guidance. This figure means that the total gold production for 2014 was 84 028 ounces, ahead of guidance of 80 000 to 83 000 ounces and up 31 % on 2013 production of 64 000 ounces. Unit costs for the quarter were adversely affected as expected by lower gold production driven by the mining/processing of lower grade ore. The cash cost and all-in sustaining cost were US$773 (Q3: US$671) and US$979 (Q3: US$873) per ounce respectively. The 2014 all-in sus- taining cost, however, was US$941 per ounce, within guidance of US$900 to US$950 per ounce. Commenting on the results, Mike Houston, Shanta’s CEO, said: “The company has delivered a very positive operating performance over the past year enabling us to report full year production ahead of guidance. Alongside this, there have been a number of important developments progressed which will have a significant impact on the future of Shanta Gold. The plant has been largely de-bottlenecked and the higher plant throughput has provided the flexibility to process increased volumes of ore.

February 2015  MODERN MINING  15