Modern Mining October 2015

MINING News

Realising possibilities...

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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October 2015  MODERN MINING  17

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