Modern Mining November 2017

MINING News

Kibali underground mine in final commissioning stage

sustain its profitability throughout the ups and downs of the gold price cycle. To date, over US$2 billion has been spent on acquiring and developing Kibali, of which the majority had been paid out in the form of taxes, permits, infrastructure and payments to local contractors and suppliers. “With capital expenditure tapering off, Kibali should now be preparing to pay back the loans taken to fund its develop- ment. We are concerned, however, that its ability to do so will be impeded by the increasing amount of debt – currently standing at over US$200 million – owed to the mine by the government. TVA refunds, excess taxes and royalties in violation of the country’s mining code make up the bulk of this amount,” Bristow stated. Another troubling development was the recent re-introduction to parliament by the Ministry of Mines of a proposed new mining code which is exactly the same as the one the government with- drew in 2015 after it was comprehensively demonstrated that it would seriously damage or even destroy the Congolese mining industry. “Randgold has proven and contin- ues to prove that it is committed to the DRC and to the development of a gold mining industry capable of making a sub- stantial and lasting contribution to the country’s economy. Despite all the chal- lenges, including the volatile political climate and a deteriorating economy, we continue to invest here,” Bristow said. “Our exploration teams are searching intermittently from the 1950s to 1990s. The Zn mineral is predominantly willemite (zinc silicate) hosted in mainly limestone and dolostone (dolomitic rock). An independently verified non-JORC compliant hard rock resource has been estimated at 275 166 tonnes at 20,2 % Zn with a cut-off grade of 14 % Zn based on historical diamond drill holes. At a cut-off grade of 12 % Zn, non-JORC resource ton- nage increases (18 %) to 325 941 tonnes at 19,1 % Zn (an 11 % increase in Zn metal). The Star Zinc project is located approxi- mately 18 km NNW of Lusaka and is accessible via the tarred ‘Great North Road’ and a good all-weather graded road. 

Underground operations at Kibali (photo: Randgold).

The Kibali gold mine in the DRC remains on track to achieve its production target of 610 000 ounces this year as its under- ground operations and the integration and automation of the vertical shaft enter the final commissioning and automation stage, says Randgold Resources Chief Executive Mark Bristow. The mine is anticipating a significant increase in production once the final shaft commissioning, which remains on a tight schedule, has been completed. At a briefing for local media in Kinshasa recently, Bristow said that in spite of the high level of activity at the mine, there had been a significant improvement in

the safety statistics, with its total injury frequency rate continuing to decrease and the lost time injury frequency rate down to 0,31 per million hours worked in the September quarter. Following the anticipated completion of the underground mine in the fourth quarter, the only major capital project still in the works would be Kibali’s third new hydropower station, currently being con- structed by an all-Congolese contracting team. Bristow said the availability of self- generated hydropower and themine’s high degree of mechanisation and automation were important factors in Kibali’s ability to pliant resource in order to upgrade it to JORC code (2012) compliance, followed by new drilling to test the potential to extend the high-grade resource east and west and in new ground to the south. The occurrence of high grade (>50 % Zn) float (pieces of rock that have been removed and transported from their original out- crop) 200 m south of the current open pit presents a prospective new target for map- ping and exploration. Galileo recently acquired a 51 % interest in the Star Zinc project, a historical, high- grade zinc (Zn) open-pit mine operated

Galileo to fast track exploration at Star Zinc Galileo Resources, whose shares are quoted on AIM, has appointed Africa Technical Consultants Limited (ATC) to assist with and provide services for a fast- track exploration programme for its Star Zinc project in Zambia.

This is the first step in Galileo’s objective (announced in October 2017) to initiate a fast-track drilling programme in order to upgrade the project’s current non-com- pliant resource and to test the potential to increase the resource size. This programme envisages, initially, twin-hole drilling in the current non-com-

8  MODERN MINING  November 2017