Modern Mining February 2015

MINING News

DiamondCorp provides update on Lace underground project

PTM strengthens team for its newWBJV Project 1 mine PlatinumGroupMetals (PTM) has announced the hiring of full time local mining special- ists in South Africa as part of an operational readiness plan as it moves toward first pro- duction in Q4 of calendar 2015 at its new WBJV Project 1 mine near Sun City. The operating teamwill be overseen by the com- pany’s Chief Operating Officer, Peter Busse, a mine builder andmine manager with over 40 years of experience. “This is an exciting and pivotal time for us. With funding for mine completion secure and the WBJV Project 1 75 % complete, the addi- tion of these new local teammembers to our 1 700 plus person strong construction con- tracting teamprovides us with the expertise to take us successfully into production at a prom- ising time for platinum and palladium,”says R. Michael Jones, President and CEO of PTM. Among the new appointments is David Ngubane, General Manager. He has extensive management experience and has worked on projects in Zambia, Botswana and South Africa. His career beganwithDe Beers andpro- gressed to a variety of operational positions. He has also served as Operations Manager at Anglo American Platinum (Rustenburg), and as Mine Manager (Expansion Projects) for Xstrata Alloys. His last position was COO with Lanxess ChromeMining. He obtained a BTech, Mining Engineering from the University of Johannesburg and a post-graduate diploma in Business Management from the University of KwaZulu-Natal. Two further key appointment on the technical side are Curt von Graevenitz as Engineering Manager and Rowan Ray as Mine Manager. According to PTM, Von Graevenitz brings over 26 years of invaluable experience in the mining industry, of which 11 years were in the trackless mining and equipment envi- ronment. He has an extensive history in the application and maintenance of the Mine Health and Safety Act, as well as having experience in asset, contract, maintenance and project management. Ray joins Platinum Group from Murray & Roberts (Zambia) where he was Project Manager. He brings extensive knowledge and experience of the BRPMNorth and South shafts, both with similar orebodies to the WBJV Project 1. He has extensive experience in conventional, hybrid and bord and pil- lar extraction, capital projects, mechanised development and hydro powered drill sys- tems. He holds a Mine Managers Certificate of Competency and a BA degree. 

Pan African Resources, whose opera- tion include Barberton Mines, Evander and Phoenix Platinum, reports that Ron Holding (62) will retire as CEO of the Group with effect from 1 March 2015. He will be succeeded as CEO by Cobus Loots (37), who is currently the FD of Pan African. To ensure that Holding’s experience and knowledge is retained by the Group, Pan African says an exclusive consulting agree- ment will be concluded with Holding, Tunnel development costs to date are averaging R40 764/m against a revised budget of R37 000/m. The overspend continues to be the result of increased operating costs on the company’s under- ground mining fleet and delays resulting from the AMCU strike. The benefits of maintenance and repair cost saving ini- tiatives reported previously are currently being offset by cost increases on spare parts resulting from the weaker South African rand. The mine has taken delivery of its new AIM-listed DiamondCorp says that during the threemonths ended 31 December 2014 its 74 %-owned subsidiary, Lace Diamond Mines (Pty) Limited (LDM), continued with the implementation of a revised under- ground development schedule and budget aimed at bringing forward the ramp-up of commercial production from underground kimberlite mining by six months into late H1 2015. LDM operates the Lace diamond mine in the Free State. As a consequence of the six-week indus- trial action by members of the Association of Mineworkers and Construction Union (AMCU) in October and November, pro- duction will now commence in H2, which will still be four months ahead of the origi- nal plan. During the strike, a number of under- ground workplace inefficiencies were identified which were addressed when the workforce returned to work. As a consequence of these changes, a 15 % improvement in development produc- tivity has so far been achieved, says DiamondCorp.

Sandvik 421 drill rig. This rig has the capac- ity to drill longholes up to 54 m in length and 127 mm in diameter and will be used to complete all the longhole drilling on the production levels in the UK4 and 47L block cave. Underground core drilling of the UK4 block continues to delineate significant volumes of K4 (high grade) kimberlite above the 365 m level. The drilling, bulk testing and release of an updated resource statement will now be completed in early Q2, rather than Q1 as previously planned. Regarding the tailings retreatment oper- ation at Lace, DiamondCorp says that in the year ended 31 December 2014, it processed 308 047 tonnes of tailings and recovered 18 534 carats of diamonds at an average recovered grade of 5,96 cpht, compared with a budget recovered grade of 5 cpht. Tailings re-treatment processing stopped in September as the surface earthmoving fleet relocated to construct another 150 000 m 3 surface process water storage dam in preparation for earlier than scheduled kimberlite mining. This activ- ity was successfully completed in the dry winter months ahead of the summer rains. The construction of the new dam, plus additional surface drains, has allowed the mine to capture all of the water required for 2015 kimberlite processing.

An additional large surface dam is planned for construction in 2015 which will store sufficient water for full produc- tion requirements during low rainfall years. The timing of the re-commencement of tailings retreatment this year will be deter- mined by the dam building schedule.  Cobus Loots to take over at Pan African

effective 1 March 2015. This arrangement will be for a minimum period of one year. Loots has been a director of Pan African since 2009, and was also previously the Group’s joint interim CEO from March 2013 to September 2013. Prior to joining Pan African on a permanent basis, he was the MD of Shanduka Resources, where he was directly responsible for the oversight of Shanduka’s mining and minerals invest- ment portfolio. 

February 2015  MODERN MINING  7