Modern Mining

In an operations update on its Gakara rare earth project in Burundi for the three months to 30 September 2018, London-listed Rainbow Rare Earths says that production measured in terms of exported concentrate increased 27 % compared with the previous quarter at 350 tonnes (275 tonnes in the quarter to 30 June 2018). Sales for the quarter were maintained at 350 tonnes and average grade increased to 59 % TREO (Total Rare Earth Oxide) from 55 % TREO in the previous quarter, and 58 % in the financial year to 30 June 2018.

AngloGold Ashanti has announced finalisation of a five-year underground mining contract at the Obuasi Re-Development Project with Underground Mining Alliance Limited (UMA), a joint venture between African Underground Mining Services (AUMS) and Accra-based Rocksure International, a wholly-owned Ghanaian mining contractor.

Anglo American Platinum recently brought two Kom-Vision-equipped Komatsu 930E earthmoving vehicles into production at the Mogalakwena Complex near Mokopane in South Africa’s Limpopo Province. The Kom-Vision technology is a significant step towards improving safety at the mine as it gives the truck operator a 360-degree bird’s eye view and significantly reduces the risks associated with a man-machine interface.

Endeavour Mining Corporation, listed on the TSX, reports that construction of its Ity Carbon-in-Leach (CIL) project in Côte d'Ivoire is tracking two months ahead of schedule and remains on-budget. The first gold pour is now expected to occur in early Q2-2019 rather than mid-2019 as previously planned.

Shaft 1 of the Platreef project near Mokopane has reached the top of the high-grade ‘Flatreef’ deposit (T1 mineralised zone) at a depth of 780,2 m below surface. This is the first time that the Platreef – a strongly mineralised, polymetallic belt that extends northward from the town of Mokopane for more than 30 km – has been intercepted by underground mining activity.

West African gold producer Perseus Mining, listed on the ASX and TSX, has announced that a value engineering assessment (VEA) and the front-end engineering and design (FEED) study for the Yaouré gold project in Côte d’Ivoire has been completed. The studies confirm the cost estimates in Yaouré’s October 2017 Definitive Feasibility Study (DFS) that demonstrated the quality and strength of Yaouré.

The Yaouré DFS reported that the project is economically attractive with an IRR of 27 % with a 32-month payback period at a US$1 250 /ounce gold price; and technically robust with a 3,3 Mt/a plant with average annual gold production of 215 000 ounces at an AISC of US$734/oz for the first five years of production. It also confirmed it was readily financeable with a capital cost estimate of US$263 million and robust cash flows to service debt.

Independent consultant Lycopodium Minerals started the VEA and FEED Study in June 2018 and completed on time and on budget on 6 October 2018. Lycopodium is well qualified to undertake the studies having played a critical role in the successful engineering, procurement and construction of several high-profile West African gold mines in the last three years, including Perseus’s Sissingué gold mine that was successfully developed and commissioned in early 2018.

The scope of the VEA included the evaluation of opportunities to improve plant design and optimise the estimated capital expenditure.

Based on the FEED study, the total capital cost estimate for the development of Yaouré is US$264 million (including a contingency allowance of approximately 8 %) which is very close to the the DFS estimate.

The FEED study assumes that the process plant is developed under an Engineering, Procurement and Construction (EPC) contract. Based on current plans, first gold is expected to be produced at Yaouré in December 2020.

“The completion of the FEED study is an important milestone on the path to delivering Yaouré, our third gold mine,” comments Jeff Quartermaine, MD of Perseus. “The FEED study was completed on schedule and on budget and has delivered a satisfactory outcome with the capital cost less than 0,5 % greater than the cost originally estimated in the Yaouré DFS.

“With this estimate now in hand nwe can confidently advance the implementation of our finance plan which involves the deployment of a debt funding package to complement a combination of existing cash reserves and expected future cash flow from our two existing operations – both of which are performing in line with internal expectations and contributing to a steady build in our net cash reserves.”

Contact Modern Mining

Title: Editor
Name: Arthur Tassell
Email: mining@crown.co.za
Phone: +27 11 622-4770
Fax: +27 11 615-6108

Title: Advertising Manager
Name: Bennie Venter
Email: benniev@crown.co.za
Phone: +27 11 622-4770
Fax: +27 11 615-6108

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