Modern Mining August 2017

MINING News

First gold pour at Sissingué expected in early 2018

month, generating approximately US$0,5 million revenue per month, at a cash oper- ating cost of approximately US$643/oz. Commenting on the transaction, Syl­ vania’s CEO, Terry McConnachie, said: “The Phoenix project is a significant acquisition for Sylvania as we look for growth oppor- tunities. Phoenix is a PGM dump operation with potential synergies with our existing operations which will assist us in increasing our production and earnings profile going forward. The geographical location of this asset will allow us to effectively utilise our existing infrastructure and management team to enhance this business. We look for- ward to bringing the Phoenix asset into the Sylvania portfolio.”  Perseus’s Technical Services and Human Resources teams have prepared comprehensive Operations Readiness Plans for the Sissingué operation with the objective of ensuring that the ramp up to full scale gold production occurs as efficiently as possible following commis- sioning of the mine and plant. plete, as is the procurement of all significant long lead items of plant and equipment. On site, the construction team contin- ues to make sound progress, says Perseus, with the bulk concrete works associated with the plant and installation of under- ground services nearing completion. The majority of buildings including offices and the warehouse are either complete or well advanced, as is the erection of steelworks associated with the crusher and SAG mill. The CIL tanks are being erected and the contractor responsible for the instal- lation of the SAG mill has mobilised to site and will start work early in the September 2017 quarter. During the quarter, the air- strip, tailings dam, mine camp and work on the river intake structure were also completed. Assembly of the generators and power station control panels is well advanced and this equipment is on schedule to be deliv- ered to site during the December 2017 quarter. Given the progress made to date on all fronts, Sissingué remains on track to produce its first gold in the March 2018 quarter.

The process plant at Sissingué under construction (photo: Perseus Mining).

Perseus Mining, which operates the Edikan gold mine in Ghana and is listed on the ASX and TSX, reports that it “steadily advanced” the development of its sec- ond gold mine, Sissingué, during the June quarter. The open-pit mine, expected to produce 80 000 oz/a in its first 3,25 years and 70 000 oz/a over its five-year life, is located in Côte d’Ivoire. According to the company, by the end

of the quarter development works were tracking on schedule with approximately 61 % of the works completed. The devel- opment is progressing in line with budget, with incurred expenditure to date (includ- ing US$10,4 million of early works and holding costs) totalling US$67,6 million, and the forecast expenditure to comple- tion estimated at US$47,8 million. Off site, detailed engineering is com-

Sylvania Platinum to acquire Pan African’s Phoenix plant Sylvania Platinum Limited, the low-cost PGM processor and developer, has entered into a conditional agreement with Pan African Resources (PAR) to acquire 100 % of the shares in and claims against Phoenix Platinum Mining Proprietary Limited for a purchase price of R89million settled in cash. The Phoenix operation consists of a 30 000 tonnes/month Chrome Tailings Retreatment Plant (CTRP) which was com- missioned in November 2011 and reached full production in May 2012. It is located in North West Province near to Sylvania’s Millsell and Mooinooi complexes. to the Kroondal and Elandskraal tailings dumps, and Buffelsfontein tailings dams and potential future current arisings at the Lesedi mine, recently acquired by Samancor Chrome. As part of the acquisition, Sylvania will acquire an independent property for tailings disposal with associated regulatory approvals. Phoenix currently has chrome dump reserves of approximately 2,4 Mt, con- taining approximately 2,5 g/t 4E PGE. It is estimated that these are sufficient to sustain current production levels for approximately eight to nine years.

Phoenix currently recovers PGMs from chrome tailings dumps and dams through mineral rights agreements pertaining

During the previous published reporting period for the six months to 31 December 2016, Phoenix produced 762 oz of PGMs per

12  MODERN MINING  August 2017