Modern Mining November 2016

MINING News

Metallon lifts its gold production by 18 %

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-

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). 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 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. 

Surface infrastructure at Howmine near Bulawayo, Metallon’s flagship asset (photo: Metallon).

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.

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

The proceeds of the fund raising will be used to progress the new management

6  MODERN MINING  November 2016