TAM Cover_Layout 1 - The ASIA Miner

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May/June 2011 | Volume 8 | Issue 3 | Industry Technical Information | 矿 业 技 术 信 息
东 南 亚 崛 起 SOUTH
EAST ASIA RISES
澳 洲 小 型 勘 探 公 司 • 聚 焦 渣 浆 泵
Australian junior explorers • Spotlight on slurry pumps

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FEATURES
Australian Junior Explorers Australian junior companies are leading exploration efforts in Australia as well
as throughout the Asia Pacific region. This feature examines a number of these companies and the exploration
they are undertaking. ..................................................................................................................70
Slurry Pumps Plant operators, pump suppliers and researchers continue to pursue higher efficiency and
reliability in slurry transport applications ................................................................................................77
LEADING DEVELOPMENTS
Asian Intelligence The Fukushima nuclear reactor challenges from earthquake and tsunami hit northeast
Japan should be viewed in full perspective and not as ‘another Chernobyl’. .......................................... 4
Exploration Bauxite Resources has signed a joint venture with China’s Yankuang Corporation to explore
for bauxite in the Darling Ranges of Western Australia. ........................................................................88
AROUND THE REGION
Vietnam Vietnam's fledgling mining industry can play a major role in the nation's growth. ......................6
Laos Additional drilling has started at Ord River Resources Yuqida bauxite tenement. ..........................12
Cambodia Mining represents many opportunities but there has been little exploration. .........................16
Thailand Exploration work has re-commenced on Southeast Asia’s licences. ......................................22
Malaysia Commissioning of Peninsular Gold’s Raub project is expected this quarter. ..........................25
Mongolia A new joint venture is examining four potential sites for rare earth deposits. ..........................28
South Korea Woulfe Mining is reviving South Korea’s rich mining heritage at Sangdong. ......................34
One of South East Asia’s mining success
stories is PanAust’s Phu Kham copper-gold
operation in Laos. This photo shows one of
the ASX-listed company’s Phu Kham workers
looking over the processing plant. An
upgrade is in progress which will increase
annual copper-in-concentrate production to
65,000-70,000 tonnes. The upgrade is expected
to be completed in 2012.
Photo courtesy PanAust.
Indonesia InterMet Resources has decided not to accept two bauxite project options. .......................37
China China is playing an increasingly important role in world gold markets .........................................44
Philippines A nickel alliance will spend US$1.4 billion to build a second processing plant. ...................54
Papau New Guinea The resource at Highlands Pacific’s Horse Ivaal Trukai deposit is up by 79%. ..............62
Central Asia An extensive drilling campaign is under way at Manas Resources’ projects. ..........................66
DEPARTMENTS
Advertisers’ Index ............................................87
Calendar of Events ..........................................80
From the Editor ...............................................2
Product News .................................................81
Subscription Form ..........................................87
Supplier News ................................................84
New Phuoc Son plant .........................................7 Chatree expansion on time ............................... 22 Selinsing capacity increase ............................... 26
May/June 2011 | ASIA Miner | 1

Editor's Page_Layout 1 4/22/11 9:20 AM Page 1
From The Editor
COMMUNICATION VITAL FOR MINING’S FUTURE
AS the mining industry continues to develop in Asia, awareness of environmental
issues among local inhabitants is rising, putting the two on a
collision course. To prevent serious impacts communication at all levels
is critically important.
Pelham Bell Pottinger’s Asia CEO David Wynne-Morgan says in the
past the mining industry has not been very good at communications.
“The mining industry is largely run by miners who know their business
very well, and love it - they are very good at finding deposits and extracting
minerals out of the ground. But for them as well as the wider industry
and the rest of the world, communication is getting more
By John Miller /Editor
important, particularly with environmental issues.
“We’ve got an extraordinary situation now where the resources sector is booming and environmental
pressures are increasing. On the one hand we don’t want to miss out on this enormous
new wealth which is important for economies and for the companies concerned but they
are increasingly having to deal with enormous environmental concerns.
“National and international image is important and mining companies need to show that, yes
they are miners, but also indicate that they recognize their environmental responsibilities and are
dealing with them as effectively as possible.”
David Wynne-Morgan says even more important than the big picture is the local community
image because that’s where the trouble emanates from. “A lot of the companies are not as
good at this as they could be, it is not done with a sufficient sense of priority. Some companies
make enormous efforts and take a great deal of care over it, others don’t really understand the
need for effective communications – from CEO level right down. CEOs see the problems it
causes but many they duck it as much as they can.
“It is changing, and it has to change rapidly because the industry is going to continue to boom.
The next decade will be an amazing time for the mining industry but how well companies benefit
from this will not only depend on their skill in getting material out of the ground, but on handling
the image of the industry as a whole, particularly their relationships with local communities
and being seen to be responsible and caring in the environmental area.
“The big companies handle investor relations and financial communications pretty well – they
could do it better but then everyone can do it better. It’s in the environmental field where some
of them are particularly poor. It is important in all mining jurisdictions but particularly in emerging
areas in Asia, like Indonesia and the Philippines, where environmental awareness is increasing
and where there are so many factors that can impact on fragile ecosystems. It’s not
just mining either, other industries such as palm oil and agriculture also impact on the environment,
including the region’s dwindling rainforests.”
But, David Wynne-Morgan asks how do you run a successful business that is important to
the economy and at the same time honour environmental responsibilities “Solutions need to
be found but you’ve got to balance the hunger, poverty, employment and contribution to the
economy with the needs of the environment and you’ve got to get all stakeholders involved,
which is going to involve compromise.
“If you want headlines you can have the battle with environmentalists but if you want solutions
it means working with stakeholders. All sides have to understand that it is broader than their particular
point of view – they have to open up their gaze.” He concludes that the solution found
may not be perfect but it’s going to be better for everyone than it is at present.
John Miller, The ASIA Miner Editor
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2 | ASIA Miner | May/June 2011

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Asian Intelligence
OVER-REACTION TO FUKUSHIMA NUCLEAR INCIDENT
ONE of Australia’s foremost uranium analysts
has warned that the Fukushima nuclear
reactor challenges from tsunami-hit northeast
Japan should be viewed in full perspective
and not as ‘another Chernobyl’ or ‘Three
Mile Island’. And the on-market panic which
has driven uranium stocks downwards
should be viewed as an opportunity to pick
up ‘good value’ with uranium equities at
‘bargain basement prices’.
Addressing the Paydirt 2011 Uranium Conference
in Adelaide, BGF Equities’ executive
chairman Warwick Grigor said the Fukushima
incident had the potential to be a game
changer. “There is no doubting that - and we
have already seen the media circus which has
milked as much drama out of it as possible.
“We have seen widespread panic in the
stock market with most uranium shares falling
by 50% or more. Fear has dominated
every action. From the start of the incident,
it has been a management issue. It will continue
to be a management issue. Management
covers not just the practical matter of
operating power stations but also the management
of perceptions.
“This doesn’t have to be another Three
Mile Island or Chernobyl in terms of its impact
on the nuclear industry. This doesn’t
have to bring down the curtains, if it is placed
in perspective.”
Warwick Grigor said that previously, there
were alternatives available for energy supply
but we don’t have the luxury of those options
any more “Today, we are much more aware
of the concept of global warming. We know
about acid rain and the pollution from coalfired
power stations. We know, or should
know, that a shift back to hydrocarbon-based
power sources is going to exacerbate all the
problems we are trying to solve.
“We need to remember that every industry
has its disasters. Nothing is fail-safe. Nothing
is bullet proof. Some industries are in the public
spotlight more than others, but in designing
the future, we should not allow
ignorance and emotion to guide us.
“We seem to accept that there will be deaths
in coal mine accidents. It happens somewhere
in the world every year. It is
reported, dramatized if possible, and then it
is back to business as usual. No-one has
suggested that coal mining should be stopped.
We get one dramatic incident in 25
years in an industry with an impeccable safety
track record and there is a hue and cry demanding
the closure of the entire industry.”
He questioned the lack of balance, saying
that no industry could ever say there would
never be an accident or loss of human life. “If
every industry had the safety record of the
nuclear industry, there would be a lot less widows
out there. Take a look at the disasters
that regularly hit the oil and gas industry.
“Unbelievable amounts of pollution are destroying
lives right across the globe while the
big operators make huge profits. Is this acceptable
in our world but clean, low cost power
from the nuclear industry is not “Maybe the
profits to the operators in the nuclear power
sector are not high enough to fund the lobbying
(not to mention the bribes and corruption)
that other industries employ. Even one ounce
of rationality in the debate on the future of nuclear
power would be an improvement.”
RUSAL signs aluminium MoU
THE world’s leading aluminium producer,
United Co RUSAL Plc, has signed a memorandum
of understanding (MoU) with Xinshan
Aluminium Industry Demonstration Park
in southwest China to develop bauxite mining,
and alumina and aluminium production
projects.
A working group will be set up by the end
of May to analyse details of the joint projects
to be initiated and developed under the MoU.
The MoU confirms the parties mutual interest
in cooperation in the following areas:
• Export of RUSAL’s technologies for production
of aluminium and aluminium products
with high added value to markets in China.
• Engagement of RUSAL as an engineering
company for aluminium plant construction
projects in the territory of Xinshan Aluminum
Industry Demonstration Park in Guangxi
Province. Xinshan Aluminium Industry
Demonstration Park’s annual demand for
bauxite may reach 2 million tonnes.
• Realization of joint venture projects relating
to the geological study and mining of bauxites
and bauxite-alumina complex construction
in the Asia-Pacific Region
countries. Bauxite is the ore used to produce
alumina, which in turn is used for primary
aluminium production.
RUSAL says that the two parties are also likely
to set up joint ventures to mine bauxite
and build alumina complexes in other countries
in the Asia-Pacific region. The partnership
is supported by the governments of the municipality
of Baise, Guangxi Zhuang autonomous
region and the People’s Republic of China.
RUSAL’s first deputy CEO Vladislav Soloviev
says, “With the unprecedented pace of
urbanization, China is demonstrating a
steady growth in demand for aluminium. It is
expected that the 2011 aluminium consumption
will grow by 12% to reach 18.5
million tonnes, which will require both increased
imports and domestic production.
“RUSAL, possessing extensive experience
in sustainable development and efficient technology
for a full-cycle aluminium production, is
ready to become a reliable partner for China,
both in terms of necessary raw materials supply,
and building of new production facilities.”
In 2010 RUSAL accounted for about 10%
of global production of both aluminium and
alumina. It employs about 76,000 people in
Products from RUSAL’s Nadvoitsky aluminium smelter.
4 | ASIA Miner | May/June 2011

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Asian Intelligence
19 countries, across 5 continents and sells its
products primarily in the European, Japanese,
Korean, Chinese, South East Asian and
North American markets.
Force majeure rethink needed
THE cyclone fuelled batterings of key Australian
energy and mining operations should trigger
a complete rethink on force majeure
provisions, according to a senior resources
lawyer. The caution comes as many of Australia’s
largest and mid-tier coal, oil, gas and
minerals producers, and owners of related
export infrastructure, count the cost, liability
and contractual exposure from operations
shut down temporarily or permanently amid
the massive floods, rain and storm damage
that have swept Australia in 2011.
Minter Ellison Lawyers Senior Associate
Stephanie Rowland said the resources sector
Aquila Resources’ Isaac Plains coal project in Queensland’s Bowen Basin
was hit by flooding with force majeure provisions enforced.
had witnessed a number of operators seeking
shelter from further financial impact by
enacting force majeure provisions. However
the enactments, seemingly more geographically
and commodity-style widespread than
historically the case due to the sheer scope
and intensity of natural disasters in 2011, had
catapulted ‘force majeure’ issues to a ‘top of
mind’ consideration.
Force majeure clauses in contracts relieve
a participant from liability under a joint operating
agreement where their failure to perform
is caused by a ‘force majeure’ event.
Addressing the Excellence in Oil and Gas
forum in Sydney, Stephanie Rowland said it
was fair to conclude that the sheer scale of
Mother Nature’s damage to mine sites, offshore
installations, deliverability and even to
the morale of personnel and regional communities
had caught risk management personnel
by surprise.
“What we have now is an environment
where potentially force majeure clauses in
force for some years, have been rendered
outdated almost overnight simply because
their scope and detail either fails or insufficiently
addresses the liabilities on both sides
of a contract for such large-scale and in some
cases, unpredictable impacts.
“The result is that force majeure provisions
have reclaimed the spotlight as a serious ‘rerisk’
to project, product supply and corporate
confidence. Australia’s resources sector is left
facing a question – was it adequately prepared
and were its interests adequately safeguarded,
regardless of natural weather circumstances
She said energy players needed to use the
lessons learnt from managing such massive
weather impacts to re-assess, revise or perhaps
totally re-negotiate their force majeure
provisions in key contracts. “It may also be
useful if any such revision, at least at the
broader industry level, invites input from external
but related stakeholders.
“We saw in the Brisbane floods, how
quickly issues of insurance liability - often a
secondary casualty of disputed force majeure
claims – comes down to the absolute finite
details and interpretation of a contract.
“In the wake of such disasters and potential
long-term dispute resolution, there is no better
time for Australia’s resources sector to sit
down and rejuvenate with crystal clear clarity
and intent, its force majeure protocols.”
Stephanie Rowland said the scope of such
a review or negotiation – which should apply
to any party within a force majeure contractual
environment - could include more detailed
and additional extra conditions recorded
into key agreements.
“While any number of non-weather incidents
can trigger force majeure, the extraordinary
climatic start to 2011 has exposed
force majeure as potentially a whole new legal
and corporate ball game – and there should
be no expectation by risk analysts in the resources
sector that the need for revision will
subside any time soon.”
Emissions add up for ores
By Rebecca Thyer
THE loading and hauling operations necessary
for getting iron ore and bauxite from deposits
to mineral processing facilities makes the biggest
contribution to greenhouse gas emissions
over the mining and mineral processing stages,
environmental assessments of both metals’ mining
and mineral processes have shown.
Life cycle assessments (LCA) on iron ore and
bauxite mining and processing, by the
CSIRO’s Minerals Down Under Flagship project
engineers Terry Norgate and Dr Nawshad
Haque, found that loading and hauling amounted
to half of both processes’ total emissions.
The Commonwealth Scientific and Industrial
Research Organization (CSIRO) is an Australian-based
body that studies technological advances
and solutions for industry and mining.
The LCA results were calculated using one
tonne of ore or concentrate as a functional
unit ready for transport to downstream metal
extraction and refining facilities.
Terry Norgate says the work shows that efforts
to reduce future greenhouse gas emissions
over these stages of the life cycle –
expected to increase as a result of falling ore
grades and more finer-grained deposits –
should concentrate on loading and hauling
for these metals. However, it is a different
story for copper concentrates. An LCA found
that reducing the ore’s size was the largest
greenhouse gas contributor over the mining
and mineral processing stages.
As copper ore has a lower grade compared
to iron ore and bauxite, the crushing and grinding
processes needed for processing it into
concentrate contributes about 46% of that
ore’s greenhouse gas emissions.
Although copper ore processing produces
the equivalent of 628kg of carbon dioxide per
tonne, compared to bauxite at 4.9kg of carbon
dioxide per tonne and iron ore at 11.9kg of carbon
dioxide per tonne, emissions from iron ore
represents a greater issue for Australia, he says.
“That’s because iron ore represents by far
the largest amount of any metallic ore or concentrate
exported from Australia. About 236
million tonnes are mined each year in Australia
and most of that is exported,” he says.
-This article originally appeared in the February 2011 issue
of CSIRO's ‘Process’ magazine.
May/June 2011 | ASIA Miner | 5

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SE ASIA: Vietnam
MINING HAS A ROLE IN DRIVING VIETNAM’S GROWTH
OF the countries that comprise Indochina,
Vietnam arguably shows the most potential
to sustain strong economic growth owing to
its large population, abundance of natural
resources, and proximity to major trading
routes and the world's biggest consumer of
resources, China. Vietnam's fledgling mining
industry can play a major role in the nation's
growth but has some way to go to
reach its full potential.
There are a number of foreign companies
involved in the mining industry, but not nearly
as many as there could, and should, be
owing to the perceived risks involved and the
lack of incentive. Most of those that are involved
have been present in country for some
time, building up relationships with locals and
the national government.
It appears as though the government is
now taking steps to ensure the nation as a
whole can benefit from mining, which will play
an important role in driving the country's own
economic growth as well as supplying many
of the resources needed to provide power
and needed for construction.
One of the foreign companies involved in Vietnam
is Axiom Mining, which says that the
mining industry is relatively undeveloped and
this is reflected in the small number of mining
companies listed on the Vietnam stock exchanges.
It says that Vietnam has a large appetite
for commodities, in particular gold, and
in this way is similar to most other Asian
countries. The World Bank recently stated
that Vietnam was the world's largest importer
of gold in 2008 until the government banned
the importation of gold. There are currently no
gold-focused companies listed on the Vietnamese
stock exchanges.
It adds that Vietnam has progressively opened
up its capital markets in recent years, resulting
in a number of new IPOs that have been
supported by international and local investors.
Financial group VinaCapital has expressed
belief in Vietnam’s economic development,
saying it is still one of the world’s leading emerging
economies and a destination for foreign
investors. The group's CEO Don Lam says that
in meetings with foreign investors, VinaCapital
continues to hear their recognition of the Vietnamese
economy’s long-term potential.
VinaCapital is a leader in asset and investment
management, and real estate development
in Vietnam, running a property portfolio
worth more than US$1.7 billion. It recently unveiled
a plan to attract US$300-500 million
from foreign investors to establish two more
member funds to further invest in local companies
and the property market.
In 2011, the group also expanded the operation
of VinaSecurities after signing an agreement
with Macquarie Capital. It has also
inaugurated VictoryCapital company in
Phnom Penh, Cambodia, to help Vietnamese
companies interested in Cambodia, besides
its main goal of running investment there.
This is indicative of the mentoring role that
Vietnam can play in Indochina, particularly with
its neighbours Laos and Cambodia, which are
both well endowed with mineral resources but
even further behind economically.
Another example came in March when Vietnam
and Laos signed a contract to cooperate
in ore mining and processing in Houaphan province
of Laos. Economic zones on each side
of the border checkpoint between Vietnam and
Laos are offering incentives to investors and
businesses. The areas included are the Lao
Bao Special Economic and Commercial Zone
of central Quang Tri Province in Vietnam and
the Densavan Border Trade Zone in Laos.
First Phuoc Son production expected in May
FIRST production from the new processing
plant at Olympus Pacific Minerals’ Phuoc Son
Gold Project in central Vietnam is expected
during May. It is the company’s second gold
plant in Vietnam after the Bong Mieu plant.
Unseasonably long and heavy rains in the
first few months of the year delayed completion
of the plant and the subsequent commissioning
process. This started at the end
of March and continued through April.
Underground mining resumed in late February
with ore stockpiled nearby for introduction
to the new circuit once the plant had
passed full inspection. Dry commissioning
was the first part of the beginning of production
operations.
Operations at the Phuoc Son project of Olympus Pacific Minerals.
6 | ASIA Miner | May/June 2011

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SE ASIA: Vietnam
During these phases, components of the
processing circuit were individually tested starting
with the crushing circuit and ball mills.
Upon successful completion of these circuit
tests, the plant was to run on water with ore
to be introduced a week later
assuming there was minimal
leakage. It is planned for gold
to be produced through the
gravity circuit within three
days of the ore being introduced
to the plant during May.
Olympus' CEO David
Seton says, “We are pleased
to be in the final stages of delivering
Vietnam's most environmentally
sound gold plant,
utilizing the latest technology
available. This is a key development
in the company's
ongoing plan to expand its
production in both Vietnam
and Malaysia.”
Olympus is a gold exploration and production
company employing some 1200 people
of whom 90% are Vietnamese. It is an equal
opportunity employer operating two gold
mines in central Vietnam near the port city
of Da Nang. The company is a major employer,
pays taxes and royalties and invested
some US$40 million into the local economy
during 2010.
Construction of the processing plant at
Olympus Pacific’s Phuoc Son project.
During the permitting and construction phases,
ore from Phuoc Son has been transported
by truck to the Bong Mieu plant. Olympus received
a trucking permit extension from the Ministry
of Natural Resources and Environment
effective from March 15, with support from the
Quang Nam People's Committee, to continue
this process until May 30 while the Phuoc Son
commissioning was being undertaken.
Olympus is positioned to expand gold production
in South East Asia from its core properties
and has established a production time
line that increases annual production to 50,000
ounces of gold in 2011 and a production pipeline
capable of further expansion to 170,000
ounces by 2015.
Pouring concrete in the furnace hall of Hazelwood’s
ATC ferrotungsten plant.
Ferrotungsten production in June
CONSTRUCTION of Hazelwood Resources’
ATC Ferrotungsten Project at Vinh Bao is advancing
at a rapid rate with first production
scheduled to take place in June. The plant is
the largest of its kind outside China and the
design is believed to be the most technologically
advanced in the world.
In late April the outer refractory layer of
bricks was installed inside the ferrotungsten
furnace shell with the inner refractory lining
consisting of ferrotungsten metal to be installed
during hot commissioning, which is expected
to take place in June. Orders for the
first fill materials are imminent.
A team of 30 experienced Chinese installation
engineers are working through final installation
and mechanical and electrical
commissioning for targeted first production at
the plant. The electrode arms are in position
on their hydraulic rams while electrical connection
to the EVN transmission grid is almost
complete. High voltage transmission
lines are immediately adjacent to the plant
site. Connection can now be made with the
main furnace transformer and plant low voltage
transformer systems.
The furnace body is in position on its tilting
base and commissioning of hydraulic systems
is proceeding. The furnace stack has
been erected with installation of the baghouse
dust collection system and heat exchanger
under way. Emission control is a
focus of this operation. Construction of the
third storey of the site office and administration
building is also advancing.
On March 23 a ceiling fire occurred at the
construction site with damage caused to
ceiling insulation material and metal roofing
panels. Repairs have been completed and
disruptions to the installation schedule were
only minor. The fire is believed to have been
caused by a welding spark.
In May 2010 Hazelwood acquired a 60% interest
in Asia Tungsten Products Company
(ATC), which is building the new facility. Stage
one of the plant has annual nameplate capacity
of about 4000 tonnes of ferrotungsten
alloy, equivalent to 3000 tonnes of contained
tungsten. A second stage, if completed, would
have sufficient capacity to supply around 25%
of the world’s ferrotungsten.
Ferrotungsten is used in steels and alloys
where hardness and heat resistance is required.
Independent projections predict consumption
in excess of 17,000 tonnes of contained
tungsten in steels and alloys by 2013. Outside
China, there are few sources of supply of the
material. ASX-listed Hazelwood recently raised
$6.84 million through a placement to increase
its interest in the project and to fund commissioning.
It has agreed terms with its joint venture
partner to acquire a further 20% interest,
which increases its stake to 80%.
Hazelwood also owns the Big Hill Tungsten
Deposit in the Pilbara region of Western Australia
which is undergoing a definitive feasibility
study and is considered a viable future
source of feedstock for the ATC project.
Drilling to start at Nat Son
DRILLING will begin in May at Strategic Mining’s
Nat Son gold exploration and development
project in Hoa Binh province of northern
Vietnam, about 50km southwest of Hanoi.
The 2500 metres campaign is necessary to
define gold reserves and to give the exact locations
where to begin mining operations.
The drilling was scheduled to start in late
March after the arrival of a Boart Longyear
LF 70 diamond core angular drill rig in Vietnam
but was delayed due to unanticipated
delays at customs and the need to order additional
parts for the rig. The company is arranging
the schedule for the geologist and
drilling crew from Core One, an experienced
US drilling company, to arrive on site during
May to begin the program.
The acquisition of the LF 70 diamond core
drill rig on a Morooka track system is an im-
May/June 2011 | ASIA Miner | 7

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SE ASIA: Vietnam
portant step for the continued development
of Nat Son. The LF 70 is the first angular core
drill rig in Hoa Binh province and the company
has received strong support from the Vietnamese
Government for bringing the latest
angular core drilling technology to the region.
The rig has now cleared customs, has been
moved to a storage facility near the gold property
and has been inspected.
Assays from rock samples have shown
gold values as high as 47.3 grams/tonne and
Evidence of mine workings at the Nat Son site of Strategic Mining.
silver values as high as 228 grams/tonne, and
the company is keen to begin exploration.
Strategic’s president Todd Sterck says,
“The new drilling rig will enable the company
to work throughout all seasons and to initiate
drilling programs in previously inaccessible
areas.”
With this strategy in mind, the company is
in negotiations to purchase an interest in the
nearby operating Dong Thanh gold property.
A team from Strategic, including Todd Sterck
and consultants, visited Vietnam in March to
visit the Dong Thanh site, continue negotiations
and investigate several other gold producing
properties in the same region.
The team gathered samples from Dong
Thanh and these are being tested by a qualified
US metallurgist to determine the cost and
best method to attain the highest extraction
level for the gold. The results will assist in finalizing
an agreement.
The company believes Dong Thanh, which
is about 12km from Nat Son and on the same
gold trend, could produce 20,000 ounces annually
in the first year through improvements
in mining mechanization and processing.
Todd Sterck says, “Our goal is to become
a significant gold producer. We are currently
focused on the exploration and development
of gold properties in Vietnam, the US and
Africa. The company intends to expand by
acquiring mineral rights to more key properties
and initiating strategic joint ventures.”
Drilling starts at Pu Sam Cap
FOLLOWING the receipt and review of
assay results from recent field work Triple
Plate Junction has
started a 3000 metre
diamond core drilling
program at the Bai
Bang prospect of its
Pu Sam Cap gold
project in Vietnam’s
far north. The company
expects to complete
the drilling in
August, although the
timing depends on
the wet season which
is due to start around
the end of May.
Of 231 samples
taken, 43 rock chip
channel samples and
4 rock grab samples returned
assays greater than 2 grams/tonne gold,
ranging from 2.01 to 29.3 grams/tonne gold
and from 0.2 to 103 grams/tonne silver. The
43 rock chip channel results averaged a true
width of 0.86 metres at a weighted average
grade of 4.50 grams/tonne gold and 11.5
grams/tonne silver. The four rock grab samples
ranged from 2.54 to 22.4 grams/tonne
gold, averaging 13.3 grams/tonne.
Triple Plate’s exploration director Bill Howell
says, “The results
have increased the
strike length of known
mineralized zones, and
some of the gold values
are very encouraging.
The zones will be tested
for grade, continuity and
depth extent by the drilling
program now under
way. The new zones
identified will also require
follow up work.”
Triple Plate’s chief
executive Fraser McGee
says, “Recently I had a
very positive visit to our project in Vietnam,
and I am very pleased that our continued
and determined work has yielded these encouraging
results. The commencement of
the drill program is another clear positive
step in the development of the company's
business as a whole this year, and I am looking
forward to providing our shareholders
and the wider market with the results over
the next five or six months.”
The rock chip channel and rock grab samples
were taken across structurally controlled
mineralization in outcrop and
underground tunnels driven by historical artisanal
miners at Bai Bang. The sampling
was aimed at extending the strike length of
known high grade gold mineralization previously
encountered by Triple Plate.
The program established two main steeply
dipping structural zones trending east-west
for about 1km and a second zone trending
NE-SW for about 1.6km. Several other subsidiary
zones were also identified in the
sampling program.
Pu Sam Cap has long been recognized as
a large gold-copper mineralized centre. It has
been estimated by local government authorities
that in the 1990s some 3000 local artisanal
miners were extracting gold from a series
of veins over an area covering 10sqkm centred
at Bai Bang.
Work by TPJ since 2005 has confirmed
that these veins are up to 2 metres in width
and can be traced through a vertical interval
in excess of 500 metres and along strike
lengths up to 2000 metres. Scout diamond
drilling on one of the veins intercepted a 2
metre interval at 7.9 grams/tonne gold, including
1 metre at 12.4 grams/tonne at a
hole depth of 122 metres.
Known mineralized zones at Triple Plate Junction’s Pu Sam Cap
project in a 3D Landsat drape.
8 | ASIA Miner | May/June 2011

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SE ASIA: Vietnam
Axiom forms Vietnam company
Axiom Mining has formed a Vietnamese operating
company called Axiom Vietnam JSC
following the issue of a JSC licence. The JSC
status enables Axiom to begin the process of
listing its Vietnam interests on one of two Vietnamese
stock exchanges and raise capital
to fund its operations in Vietnam.
Axiom Vietnam JSC is a subsidiary of
Axiom that will be used to hold all of its Vietnamese
mineral interests. The four gold projects
Axiom is pursuing in Vietnam will be
transferred from other Axiom subsidiaries to
be held in Axiom Vietnam JSC.
Axiom has two mineral exploration and mining
licence applications proceeding through
the government's approval process. These
applications cover areas in central Vietnam
that lie in the highly prospective Sepon region.
In anticipation of the exploration and mining
licences being granted, Axiom is proposing
to raise equity in Axiom Vietnam JSC
to fund this exploration with drill teams ready
to begin the planned activities during the
current dry season.
Axiom has a 70% interest in the Quang
Binh gold-silver project and an 80% interest
in the Quang Tri gold-silver project, both in
central Vietnam, not far from the operating
Sepon project in Laos. it also has an 80% interest
in the Khanh Hoa gold-silver prospect
in the south, not far from the coast and a freecarried
8.47% interest in the Pu Sam Cap
gold-copper prospect in the far north, which
is operated by Triple Plate Junction.
At Quang Binh 58 diamond drill holes have
been completed and have outlined large tonnage,
low-grade gold-silver mineralization in
geological and structural settings similar to nearby
world-class gold and copper deposits
being mined at Sepon. The final stages of a licence
renewal application have been reached
in advance of an infill JORC drilling campaign.
At Quang Tri artisanal miners are working
four large high-grade precious metal targets
in Sepon-like geology. An exploration application
is nearing licence issue.
An exploration application has been submitted
over a volcanic related epithermal
gold-silver target at the Khanh Hoa prospect.
This extensive area has been subjected to
past unlicensed mining.
Axiom has received significant interest in it
projects in Vietnam and proposes to introduce
Vietnamese investors to help fund the
operations and reduce it interest in the gold
projects. Axiom's aim is to maintain a strategic
shareholding and to have the JSC majority
owned in Vietnam. Axiom's CEO Ryan
Mount says, “The issue of the JSC licence is
a major achievement and completes a key
milestone in our regional business plan. It provides
for the most efficient funding option for
a development and will eventually have our
Vietnamese assets well positioned and attractively
priced on local markets.
A plan of drill holes and drill targets at
Axiom’s Quang Binh project.
“It is a great testament to the capability of
our newly formed team in Vietnam and highlights
Axiom's ability to identify an employ key
personnel in the region.”
Thach Khe impeded by lack of funds
LACK of financial support from a number of investors
is impeding development of the Thach
Khe iron project in the central province of Ha
Tinh. Thach Khe is considered the biggest iron
ore mine in South East Asia and is believed to
have a total reserve of 544 million tonnes.
Vietnam’s Ministry of Industry and Trade held
a special meeting on April 13 to discuss restructuring
of the capital contribution to Thach
Khe Iron Joint Stock Company (TIC), the mine’s
investor. The meeting was convened because
many TIC shareholders have not fulfilled their
capital contribution commitments, thus slowing
down implementation of the project.
TIC was set up four years ago, with a chartered
capital of 2.4 trillion dong. The company’s
main function was exploiting iron at the
Thach Khe mine and providing iron ore to
serve domestic demand as well as for export.
It was also intended for TIC to build and run
an ingot steel mill with initial annual capacity
of 2 million tonnes but which could be expanded
if there were favourable conditions.
TIC has nine main shareholders, including
Vietnam Coal and Mining Industries Group
(Vinacomin) which holds 30%, Ha Tinh Mineral
and Trade Corporation with 24%, Vietnam
Steel Corporation 20%, Vietnam Post and Telecommunication
Group 4%, Bank for Investment
and Development of Vietnam 5%, Song
Da Corporation 5%, Vietnam Shipbuilding Industry
Group (Vinashin) 5%, Binh Minh Import-Export
Company 4% and Thang Long
Mineral and Metallurgy Company 3%.
Of these nine shareholders Vinashin, which
has been facing a crisis and is bogged down
in debts, cannot make a capital contribution.
Some other shareholders have also failed to
make contributions. In 2010, shareholders
did not contribute 1.3 trillion dong worth of
committed capital and only managed to contribute
221.5 billion dong, the amount that
should have been paid in 2009. In late 2010,
TIC signed a contract worth about 63 billion
dong to draw up technical designs and estimates
for iron exploitation.
TIC’s general director Ho Buc Dinh told Vietnamese
media that the failure of some
shareholders to contribute committed capital
had been seriously affecting operation of
the project. After the April 13 he said that
TIC did not have the capital to operate and
the tardiness in project implementation had
made debts increase.
He said TIC’s board of directors would hold
an extraordinary meeting where an announcement
would be made that shareholders would
have to make capital contribution before May
30. In case the shareholders could not contribute
capital, the project would have to seek
more capital from existing shareholders or call
for investments from new shareholders.
He said that TIC and the Ha Tinh Provincial
People’s Committee were still determined to
implement the project as previously scheduled.
“We have injected 700 billion dong in the
project, and we cannot stop it now.”
Vinacomin expansion program
VIETNAM National Coal Mineral Industries Holding
Corporation (Vinacomin) has set a target
of annually producing 55 million tonnes by
2015. The target forms part of the company’s
draft development plan for 2011-15. To meet
the target Vinacomin intends to increase production
by 1-3 million tonnes each year.
The underground mines must stabilize production
and increase gradually; open-cast
mines in the Hon Gai area must end this form
of mining; the open-cast mines in the Cam
Pha area must stabilize production while Khe
Cham 2 must increase annual capacity by
2015 to reach 3 million tonnes and Cao Son
must reach 5 million tonnes.
10 | ASIA Miner | May/June 2011

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SE ASIA: Laos
DRILLING IN NEW ZONE AT YUQIDA BAUXITE TENEMENT
ADDITIONAL drilling has started in a new target
zone at Ord River Resources’ Yuqida tenement
on the Bolaven Plateau in
Champasak province. Sample testing is also
being carried out at the prospect as Ord prepares
for resource calculations.
It is hoped that the drilling and testing will
increase the resource calculation and add
value to the project.
This work is part of the Aus$5.3 million feasibility
study being prepared by Chinese engineering
firm Sinomine Resource Exploration Co
for the bauxite/alumina project, which is being
advanced under a joint venture company called
Sino Australian Resources Co (SARCO). The
JV company is 49%-owned by Ord and 50%
by operator China Non-Ferrous Metal Industry’s
Foreign Engineering & Construction Co.
The JV’s exploration activities are designed
to delineate a high-quality, JORC-compliant
bauxite resource on the Bolaven Plateau in
Bauxite is clearly visible at surface through sparse vegetation on the LSI tenement.
the far south of Laos. There are two tenements,
Yuqida and LSI, which total 487sqkm.
Sinomine has maintained seven drill rigs and
moved them to the Yuqida site for the drilling
program. It has fully completed interpretation
of remote sensing data for 287sqkm of the Yuqida
tenement and has completed 48km of
road rebuilding for the ore bodies.
The work program has also seen the contractor
complete four survey base points, undertake
48km of exploration line building for
the ore bodies with 15 pegs buried and finish
a traverse survey of 46.5km.
Until the start of April, positions had been
surveyed for 368 holes at Yuqida, there had
been 2464.7 metres drilled with 730 samples
taken along with 10 samples for density.
By the end of March Sinomine had assayed
1331 samples from the LSI tenement, had
carried out a 66sqkm oryctognosy survey
and tested 10 samples for density.
SARCO has successfully proven up a large
world-class bauxite deposit in two tenements.
A JORC-compliant indicated resource of 130
million tonnes was identified at the end of 2008.
The combined resource has 32% available alumina,
3% reactive silica and 0.15% organic carbon.
The deposit is comparable in grade and
quality with the deposits in the Darling Ranges
of Western Australia and superior to current domestic
Chinese bauxite and Indonesian bauxite.
The current objective is to establish a worldclass
alumina refinery but direct shipping of
bauxite is a valid alternative for development.
Ord says SARCO enjoys several significant
competitive advantages in terms of ease of
mining and nearby key infrastructure. It remains
confident that SARCO will develop the
project into a world-class operation.
The joint venture hopes to make a decision
on the next development stage after receiving
the study. A resource calculation for LSI is expected
shortly while a calculation for Yuqida
will be completed in June/July.
The options to be considered are for a refinery
with annual alumina output of 600,000 tonnes,
direct shipping of bauxite or a staged development
starting with direct shipping followed by
the refinery.
Joint venture on coal prospects
ATOMIC Resources has entered into a joint
venture agreement with Indochina Coal to explore
and develop coal properties in Laos.
Two prospective areas that are currently not
under tender have been identified and the
company intends to make applications for
prospecting an exploration licences.
Atomic is an Australian-based, ASX-listed
exploration and resource development company
with major thermal coal assets in Tanzania
while Indochina is a privately held
Australian company which for several years
has been researching and identifying early
stage coal opportunities in Indochina and
South East Asia through regional evaluations
and reconnaissance.
The principals of Indochina include highly
respected geologists with many years of successful
coal exploration experience in Indonesia
and South East Asia, much of this in the
early stage identification of opportunities.
The group has compiled a significant database
on regional ASEAN coal occurrences,
completed initial field work in prospective
areas and prioritized exploration opportunities.
This has resulted in identification of two
prospective areas in Laos.
Atomic will own 100% of the joint venture
under the terms of the agreement by paying
to Indochina a US$500,000 finders’ fee once
an exploration licence has been granted. Indochina
will receive a gross royalty of 2% on
coal sales for the duration of the project, with
Atomic able to purchase the future royalty
stream at any time for $5 million.
Atomic’s chairman Graeme Robertson says,
“This is an excellent opportunity for Atlantic to
expand its operating base in Laos, which is largely
unexplored but where there are significant
coking and thermal coal opportunities.
“We are very pleased to be able to work
alongside the principals of Indochina who
12 | ASIA Miner | May/June 2011

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SE ASIA: Laos
have exceptional skills in exploration. The
partnership complements Atomic’s expertise
in mine development and operations, and will
provide strong synergies to allow Atomic to
meet its medium-term objectives of being a
coal producer in both Africa and Asia.”
Atomic and Indochina are also finalizing a
similar style agreement to cover Vietnam.
During 2010 the company confirmed a highgrade
gold discovery in close proximity to the
copper-gold system at Tharkek. Mineralization
has been intersected over an area of about
100 metres x 100 metres and has an estimated
true thickness of between 15 and 20 metres
with intersection grades from 3 grams/
the Sepon gold mine in Laos and at the Carlin
trend in Nevada, USA.
Argonaut has completed detailed preparatory
work and has identified highly mineralized
but structurally complex target zones. The
5000 metre drilling program is testing the
most prospective mineralized zones.
Initial resource for KTL deposit
AN initial mineral resource of about 350,000
tonnes of copper and 500,000 ounces of
gold has been announced for the KTL deposit
at PanAust’s Phonsavan Copper-Gold
Project. KTL and the nearby Tharkek deposit
comprise Phonsavan, which is in the northern
part of PanAust’s contract area.
The resource estimate is based on a 0.25%
copper cut-off grade and shows 18.2 million
indicated tonnes @ 0.38% copper and 0.14
grams/tonne gold, and 63.5 million inferred
tonnes @ 0.44% copper and 0.2 grams/
tonne gold for a total 81.6 million tonnes at
average grades of 0.43% copper and 0.19
grams/tonne gold.
Mineralization at KTL comprises multiple tabular
lenses with an overall strike length of
about 2km, dipping to the south at about 45
degrees. Data from 117 drill holes for a total
of 20,420 metres was used to compile to
estimate. PanAust has started scoping studies
on the development concept for Phonsavan.
The study contemplates open pit
mines for both the KTL and Tharkek deposits
feeding a central processing plant with annual
capacity to produce about 30,000 tonnes of
copper-in-concentrate plus gold credits.
Studies are being phased with an overall
objective of completing a feasibility study by
the end of 2012 subject to ongoing resource
drilling success. Preliminary metallurgical test
work has been completed on drill core samples
and results indicate that copper and gold
can be removed by conventional bulk flotation
into a marketable concentrate.
Phonsavan has good access to infrastructure
including sealed roads and grid power.
KTL and Tharkek are about 5km apart and
close to the town of Phonsavan which has a
population of about 57,000 that would provide
a source of labour. The Vietnamese
coast is about 250km to the west by sealed
road and Vietnamese ports are the most likely
options for concentrate shipments. PanAust
has started a resource drilling program at
Tharkek with the objective of identifying an initial
resource estimate by the end of the year.
Drilling operations in the open pit at PanAust’s Phu Kham project. Photo courtesy of PanAust.
tonne to 13 grams/tonne. It remains open to
the east and west. PanAust is expected to resume
drilling at this discovery in mid-2011.
Meanwhile, at the company’s operating Phu
Kham project an upgrade is in progress which
will increase annual copper-in-concentrate production
from 60,000-65,000 tonnes to 65,000-
70,000 tonnes. The upgrade as well as the
commissioning and ramp-up of the Ban
Houayxai Gold-Silver Project, both of which are
expected in 2012, will see PanAust’s annual
production increase to 65,000-70,000 tonnes
of copper, more than 150,000 ounces of gold
and 1 million ounces of silver.
The company also anticipates completing
by mid-2012 the necessary permitting and
studies for an open pit mine and vat
leach/SX-EW facility at the Puthep Copper
Project in Thailand for annual production of
25,000-30,000 tonnes of copper cathode.
Drilling under way at Ban Bak
ARGONAUT Resources has started a 5000
metre reverse circulation drilling program at
its 65% held Xekong gold tenement in southern
Laos. The exploration program is targeting
replacement-style gold mineralization
analogous in nature to mineralization found at
Rock chip samples from Ban Bak have returned
gold assays of up to 368 grams/tonne
and silver assays of up to 124 grams/tonne.
Trenching has returned gold assays of up to
40 grams/tonne and silver of up to 95 grams/
tonne. This work has primarily been carried
out in the north of the prospect, although
there has also been some samples gathered
and trenching carried out towards the south.
The company has cleared unexploded ordinance
from 15km of access track and 3km
of inter-prospect development tracks. A drill
and blast team was used under the supervision
of Lao Government authorities to create
road cuttings in seven areas of particularly
steep, rocky terrain. The company has also
completed a ground magnetic survey at the
Ban Bak and Phu Tuang target areas. About
1300 soil samples in the Ban Bak area have
been collected and analysed since November
2010 which have assisted Argonaut in selecting
the primary drill targets.
At the Century project in central western
Laos, not far from the capital Vientiane and
adjacent to the Thai border, Argonaut has entered
into a management and shareholders
agreement with Aurum Resources, a subsidiary
of US-based Aurum Inc.
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SE ASIA: Laos
Aurum Resources is a development stage
company which engages in exploration and
development of mineral properties. It focuses
on exploration for gold and copper in Laos.
Argonaut Overseas Investments, an indirectly
wholly-owned subsidiary of Argonaut
Resources, holds a 70% interest in Argonaut
Resources (Laos) which in turn holds a 100%
interest in the 223sqkm Century concession.
Under the terms of the agreement, Aurum
has been appointed manager of the Century
Thrust Joint Venture Agreement and will have
the right to earn 72.86% of Argonaut Overseas
Investments, which is equivalent to a 51% beneficial
interest in the Century concession.
Prospects within Argonaut Resources’ Xekong project.
In order to acquire this interest, Aurum
must spend US$6.5 million on exploration
within five years. The five year period includes
an initial one year assessment period. At
the completion of this earn-in Argonaut Resources’
interest in the Century concession
will be 19%. Aurum's Lao-based technical
team is finalizing a proposal to conduct confirmatory
drilling programs in the current
Laotian dry season.
Luang Namtha exploration extended
LUANG Namtha Copper/Silver Project joint
venture partners Amanta Resources and
Japan Oil, Gas and Metals National Corporation
(JOGMEC) have agreed to extend the
current exploration and drilling programs at
the project by three months to June 30.
The decision to extend the programs from
March 31 at the project in northern Laos was
taken at a joint meeting in Kawasaki, Japan.
To facilitate the extension JOGMEC has
agreed to increase the budget allocation for
the present project phase by $400,000 to
$1.7 million. These funds will to permit an escalation
in exploration activities, including the
expansion of drilling, to take advantage of the
regional dry season and lead to greater efficiencies
in the project activities.
Amanta and JOGMEC have finalized a revised
budget and exploration program which
includes additional drilling programs at the
Pakieng area and further evaluation of other
prospective areas, such as the Nam Bo and
Chakamping areas. Amanta’s president and
CEO Gerald Wright says, “We are very pleased
with the level of co-operation between
JOGMEC and Amanta. The increased budget
allocation will permit the parties to expand the
existing drilling activity and further advance
the Luang Namtha project.”
The first reconnaissance drill hole earlier
this year at the NW Pakieng molybdenum
target returned strong molybdenum intersections.
The hole’s location was identified
during Amanta’s reconnaissance sampling
program at the Pakieng area of the Luang
Namtha project. The hole was completed as
part of the ongoing reconnaissance drilling
program, which is aimed at preliminary evaluation
of the copper/silver mineralization and
molybdenum mineralization at Pakieng.
Soil sampling programs identified a consistently
strong molybdenum anomaly over an
area of about 400 by 500 metres, open to the
north and west. Induced polarization surveys
over the molybdenum anomaly identified
zones of high chargeability, indicating sulphide
mineralization extending to depth.
Molybdenum-in-soils values of up to
170ppm were accompanied by strongly anomalous
gold in soils values of up to 1.1
grams/tonne gold. A channel sample taken
at an outcrop within the target area, averaged
0.25% molybdenum over 8 metres, with a
maximum value of 0.8%. This channel also
averaged 0.22 grams/tonne gold, with a high
of 0.4 grams/tonne gold and 24 grams/tonne
silver with a high of 41 grams/tonne silver.
The first hole was at the margin of the chargeability
anomaly, its location being dictated
by site access considerations. Reported
assay results include a 25-metre wide mineralized
interval grading 0.044% molybdenum,
from 13 to 38 metres along the core, which
includes a high-grade zone grading 0.17%
molybdenum, over 3 metres.
Gold and silver values accompany the molybdenum.
In the 3-metre high grade core, silver
grades average 17 grams/tonne, while
gold grades average 0.25 grams/tonne.
These results are highly encouraging as they
confirm the surface results continue at depth.
Applications target gold-copper
RECENT ASX-listing Indochine Mining has
seven Foreign Investment Applications (FIAs)
in the Lao Peoples Democratic Republic,
which to date have not been granted. The
FIA’s cover prospective areas principally targeting
gold and copper mineralization.
Indochine hopes these applications will add
to its suite of projects in Cambodia and Papua
New Guinea. It believes Laos has abundant
natural resources and that the regulatory framework
of the mining and energy sectors is
rapidly developing, as government policy and
regulatory capacity begins catching up with
the fast expanding resources sector.
Mining, as one of the two major foreign investments,
has been a major contributor to
Laos’ increased growth of about 6% per year
and Indochine says the government appears
keen to promote the sector.
The group's interests in Laos comprise
seven FIAs - The Attapeu project comprises
2000sqkm and is held by IRL, the Sepon area
project comprises 2026sqkm and is held by
Aries Mining, the Virabouly project is of
1101sqkm and is held by IRL, the Savannahket
project is 1860sqkm and is held by IRL,
which also holds the Oudomxai project of
2561sqkm. Aries holds the Houaphan project
of 1285sqkm and the Houaphan South project
of 301sqkm for a total of 11,134sqkm.
The FIA at Xaybouathong and Virabouly is
positioned near the towns with the same
names in the Sepon district and partially adjoins
China Minmetals Non-Ferrous Co’s
Sepon mining tenements and the Savannahket
Project is directly to the west. The Attapeu
project is immediately north of the company’s
Ratanakiri project in Cambodia. Oudoumaxi
and Houaphan North & Houaphan South are
in the north of the country. All projects are
prospective for gold and base metals.
The four main prospects of Xaybouathong,
Attapeu, Savannahket and Oudoumaxi are interpreted
to cover various controlling large intrusive
complexes dissected by faults and are
ringed by arcuate fractures. All of the intrusive
complexes have known mineralization close by.
Additionally a series of parallel arcuate structures
are truncated by regional shear zones.
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SE ASIA: Cambodia
LONG TREK TO REALIZE MINING POTENTIAL
ALL countries in the area known as Indochina
have potential to benefit from extraction of natural
resources and the mining industries of
these countries are at different stages of development.
Of the five countries – Vietnam,
Thailand, Laos, Cambodia and Malaysia – it is
Cambodia that has had the least exploration
and possibly presents the most opportunity.
However, the kingdom still has some way
to travel before it can start to realize this potential
and assist its economic development.
It needs businesses, mining companies, service
and infrastructure providers, governments
at all levels and the people to work
together to ensure that everyone benefits
from future mining and that it is done in a sustainable
manner.
Cambodian Association of Mining and Exploration
Companies (CAMEC) president Richard
Stanger is well aware of the
opportunities and challenges facing the development
of a sustainable mining industry in the
country. He told the Cambodian media that
the kingdom could potentially contain a ‘bonanza’
of mineral wealth, but finding and extracting
the resources is a risky, expensive
business. “If Cambodia has a mineral industry
it will add a lot more strength to GDP. It will give
a buffer against the value of the other sectors.”
CAMEC has 21 companies as members,
including OZ Minerals, Southern Gold and Liberty
Mining, of which Richard Stanger is managing
director. Many of the present
members are Australian junior miners who
have joined together to provide an industry
voice for the sector as it develops.
A concern that CAMEC would like to see
addressed is the implementation of a minerals
law addressing issues such as taxation,
which could be in place this year.
“We’re obviously risk takers,” he said of exploration
companies in Cambodia. “We didn’t
come in with the football rules fully finalized.
But we saw the potential, and saw that we
can work with the government here, so we’re
pretty happy.”
A setback to the development of the industry
has been a tendency for speculators to
buy and sell concession licences, with little intention
of actually exploring their tenements.
“I think that was one of the main irritations to
the Ministry of Industry, Mines and Energy
until the middle of 2005,” Richard Stanger
says. “Once companies like us were really
starting exploration they were quite happy,
because until then people were mostly buying
and selling concessions.
“I think they heard that story a lot of times
before we came along. They gave us a bit of
rope and we didn’t hang ourselves with it. We
basically went out there and spent the money
on the ground. We’re trying to do everything
as properly as we can, as well as working
with local communities and employing people
and training people.
However, some speculation on concessions
is still ongoing. He claims that one company
recently approached him offering a concession
for US$3 million that they’d only had for three
weeks and had done minimal work on it. “Just
buying and selling, it locks up the mineral potential
of the country.” He says in most mining
jurisdictions concessions are usually handed
out on the basis that the licence-holder conducts
a certain level of work.
Gold discovered at Kratie North
A DRILLING program has started on the Kratie
North Gold Project where Indochine Mining recently
discovered a new area of gold-bearing
quartz veins. Initially
the company is carrying
out 2000 metres
of diamond
drilling with RC drilling
to follow in the
best identified area.
The diamond drilling
aims to test and
observe the mineralized
structures
from the geophysics
and geochemistry. A
series of targets have been selected for drilling
based on 3-D modelling of the geophysics
merged with geochemical results and
surface mapping.
At first the diamond drilling, which started
in the third week of April, will test a geophysical
IP target with a coincident gold-in-soil anomaly.
A series of holes will be drilled along a
1km trend identified in geophysics which includes
recently discovered multiple sets of
gold-bearing quartz veins at surface.
Samples gathered from the Kratie North Gold Project
of Indochine Mining.
An ongoing IP geophysical survey will identify
further drill targets over this area and two
deeper magnetic targets further east. An enlarged
infill RC drilling program will follow the
initial program. Kratie North, in the centre of
the country is a key focus for Indochine,
which recently listed on the ASX and has the
largest package of gold/copper leases in
Cambodia. It also has the Ratanakiri project
in the far northeast.
The Kratie North discovery was made during
sampling of multiple sets of outcropping
quartz veins over 50-100 metre strike length
in two locations about 500 metres apart.
The veins trend east-west, dipping 45 degrees
to the south and are exposed in numerous
pits and shafts recently opened by
local prospectors, where the highest grades
appear to be over 20-30cm in width where
the veins are currently exposed. Seven grab
samples were collected from the veins and
host rocks and assayed for gold. The best
result returned 42 grams/tonne gold.
The company’s CEO Stephen Promnitz
says, “Indochine has four years of on-theground
experience in Cambodia and has been
able to acquire very prospective leases. While
there has been little systematic exploration
previously in Cambodia,
the region is
well known for
world-class copper
and gold discoveries,
such as Chatree
in Thailand, and
Phu Kham and
Sepon in Laos.
“This drill program
is a key step towards
demonstrating
the potential of our
first gold discovery, Kratie North, where we
seek high grade vein gold targets like the
world-class 5+ million ounce Pogo mine in
Alaska.”
The Cambodian exploration program is led
by David Meade, who has more than 15
years experience in senior technical roles including
leading exploration teams throughout
South East Asia for some of the most successful
ASX-listed companies in the region including,
OZ Minerals and PanAust.
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New drill program at Antrong
THE preliminary round of drilling completed at
the O’Thmey prospect of Brighton Mining
Group’s Antrong project has provided positive
geological information and interceptions. This
drilling as well as data sourced from regional
exploration results has generated further targets
for the next round of drilling, which was
due to start by the end of April.
the current 1:2000 scale mapping further to
the west as well as investigating the soil anomalies
of 585ppb and 331ppb and planning
a mapping and trenching program to unearth
the cause of the anomalies.
At the Ropoah concession Brighton plans to
undertake infill soil sampling to highlight anomalous
areas, trench the anomalies and map
the area at 1:2000 scale. The company has
own 11.2 million shares, equivalent to 50%,
of Indochina Resources. In addition, PHI
Gold will distribute 3 million Indochina shares
stock to its shareholders.
Indochina Resources will register with the Securities
and Exchange Commission to become
a separate publicly-traded company focused
on industrial minerals and natural resources.
AXN’s managing member Allen Wu says,
“We look forward to working closely with PHI
and its subsidiaries in expedited implementation
of Indochina mining assets via organic
growth as well as mergers and acquisitions.”
PHI Group’s chairman Henry Fahman says,
“Since AXN has already made significant progress
in identifying and securing a number of
properties in industrial minerals and natural resources
in the wider region, we are confident
that our joint cooperation will create tremendous
synergy and unlock substantial value for
shareholders of both companies and our related
subsidiaries in the near future.”
A Brighton Mining Group field team on site at one of the company’s Cambodian tenements.
Holes drilled at O’Thmey South successfully
intercepted massive sulphide and quartz veining
comprising of pyrite, pyrrhotite, chalcopyrite
and galena associated with strong
argillic and haematitic alteration with disseminated
pyrite and pyrrhotite.
The overall downhole width of mineralization
intercepted in the preliminary program is
around 10 metres. The company expects to
receive assay results in early May.
Drilling the structural extension of the
O’Thmey prospect and extending the known
mineralization occurrences discovered at
O’Thmey South prospect are the major aims
of the new drilling program. It is expected that
this program will include a similar number of
metres of drilling to the preliminary program
which comprised 19 holes.
Between programs the company’s drilling
contractor, Indodrill (Cambodia) Co, stowed
its equipment at the Antrong campsite which
gave Brighton a great advantage by saving
time and money for demobilization and subsequent
mobilization as well as providing the
ability to begin drilling at short notice.
Further work scheduled at and around Antrong
in coming months includes extending
previously completed soil and rock chip sampling
at Ropoah with results highlighting areas
of high-grade anomalous mineralization within
the alteration zone of the Antrong granodiorite.
In addition exploration work has also been
planned to start at the King Roland north
concession. This will include a detailed desktop
study using ASTAR and TM imagery to
highlight areas of interest, a stream sampling
program and mapping at 1:10,000 scale.
Indochina and AXN agreement
INDOCHINA Resources has signed an agreement
with AXN Group, LLC, a Delaware corporation,
to cooperate in assembling and
operating a portfolio of industrial minerals and
natural resources in the South East Asia region
including Vietnam, Laos, Cambodia, Myanmar,
Thailand and Malaysia. Indochina is a
subsidiary of PHI Gold Corporation, which is
a majority-owned subsidiary of PHI Group.
AXN and Indochina Resources will jointly
organize, arrange, acquire, contribute and
operate a portfolio of industrial minerals and
other natural resources originated from the
region for mutual benefits of both companies.
Under the agreement, AXN Group will
Focus on Kratie South
THE exploration efforts of Southern Gold in
Cambodia are focused on the Kratie South
Joint Venture with Japan Oil, Gas and Metals
National Corporation (JOGMEC). Follow-up
work is being carried out at the Gossan prospect
on the Preak Khlong tenement where
work last year discovered high grade gold.
Two drill holes at Gossan last year intersected
two high-grade gold quartz veins that
Southern Gold’s tenements are
in eastern Cambodia.
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SE ASIA: Cambodia
occur with base metal bearing massive sulphides.
Intersections included 2 metres from
88 metres @ 1.47 grams/tonne gold, 0.23%
zinc, 0.28% lead and 0.03% copper, and 3
metres from 38 metres @ 14.6 grams/tonne
gold, 0.5% zinc, 0.4% lead and 0.1% copper.
Gossan is about 3km east of the Preak
Khlong NW prospect where other significant
gold intersections, including 3 metres @ 5.54
grams/tonne, were identified earlier in 2010.
The two prospects are about 15km south and
along strike of OZ Minerals’ Okvau project.
Two diamond core drill rigs were then mobilized
to Kratie South and by the middle of
the first quarter four holes had been drilled
at Preak Khlong, five at Gossan and two at
O’Ktung for a total of more than 2000 metres.
Drill core has been logged and cut, and
the company is expecting assay results during
the current quarter.
Exploration on Kratie South is fully funded by
JOGMEC as part of the JV agreement whereby
the Japanese Government-backed body can
fund exploration activity to a total of US$3.029
million over three years to
earn a 51% interest.
After withdrawing from the
Kratie North project last year
after meeting its minimum
commitment of $500,000 but
without earning an equitable
interest, JOGMEC has focused
on Kratie South and decided
to continue with stage
3 by investing a further
US$1.4 million in order to
earn its 51% interest.
Exploration, including drilling,
has also been carried
out at the Memet project this
year. The complete program
includes 6000 metres of drilling
and 4500 metres of trenching.
At the Southern Gold
100%-owned Snoul project
drilling and trenching has been
carried out this year with drill core logged and
cut, and results expected this quarter.
Exploration focus on Mesam
THE Cambodian exploration efforts of OZ Minerals
are focused on the Mesam area which
abuts the company’s Okvau licence area. If
these efforts prove successful OZ has the
right to enter into a full joint venture to explore
and develop the Mesam area, which it hopes
will add to resources at Okvau.
Results from exploration at Mesam will be
taken into consideration as part of OZ Minerals’
review of its gold assets in Cambodia. In late
2010 the company entered into an agreement
to conduct exploration over the Mesam area.
During the first quarter seven holes of a 10
hole program were completed. Most holes intersected
gold mineralization associated with
quartz veining over 1-2 metres. To date the
more broadly dispersed mineralization seen
at Okvau has not been intersected in significant
quantities, however, further drilling is required
to adequately test the system.
Results include 2 metres from surface @
2.2 grams/tonne gold and 1.77 metres from
152.6 metres @ 39.85 grams/tonne from
one hole; 1 metre from surface @ 37.9
grams/tonne in another; and 2 metres from
44 metres @ 2.9 grams/tonne, 1 metre from
73 metres @ 0.94 grams/tonne and 2 metres
from 136 metres @ 1.62 grams/tonne
in a third hole.
OZ Minerals began exploration in 2006 and
has an exploration office in Phnom Penh.
OZ Minerals’ exploration tenements in the Kingdom of Cambodia.
Apart from Mesam, it has four exploration
projects in Mondulkiri province and the most
advanced of these is the Okvau project.
An initial JORC-compliant inferred resource
of 8.1 million tonnes @ 2.3 grams/tonne gold
for 605,000 contained ounces was announced
for Okvau more than 12 months ago and
OZ Minerals is keen to identify further resources
at and around Okvau to add to the resource
inventory, which it hopes to add up to
around 2 million ounces.
The resource was outlined from 10,559
metres of drilling undertaken since mid-
2006. It was defined based on a geological
model that extends 400 metres along strike
and covers 500 metres of the width of the
mineralized vein systems. The model is constrained
down to a vertical depth of 400
metres. Mineralization is open both to the
southeast and at depth.
Since the estimate was provided the company
has focused on refining drill targets,
identified within a series of high priority prospect
areas all located within a 3km radius of
the Okvau Resource but with little success.
No significant results were returned from
scout drilling at the Okvau North, Okvau
Northwest and Area 6 prospects. It is a similar
story at the O Khlek Khlok joint venture.
Transol sells Liberty subsidiary
TRANSOL Corporation has entered into a legally
binding sale agreement of its whollyowned
subsidiary Liberty Mining International
and its controlled subsidiaries to non-related
Canadian private interests. Finalization of the
transaction will be subject to completion of
due diligence and will also require shareholder
approval. The sale of the Liberty Group
will result in Transol not proceeding with the
intended seed capital funding and proposed
listing of Liberty onto the ASX.
The sale terms involve payment of
US$600,000 in cash; issue of 600,000 Class
A common shares in an entity intending to list
onto the TSX; a net smelter royalty of 2.5%
on the Banlung, Banlung North, Oyadao and
Oyadao South licences to a maximum aggregate
payment of US$800,000; and the transfer
of Maxum Metals, a 100% subsidiary of
Transol, to the Liberty Group.
It is intended that the purchasing entity will
complete due diligence by the end of April
2011 and, subject to a positive outcome,
shareholder approval will be sought in late
May or June. Transol will not proceed with
the acquisition of the two projects held by
Summer Gold in Cambodia - the Mondulkiri
Gold Kang Roland licence of 136sqkm and
the Oyadao Summer Gold licence of
100sqkm. As a consequence, Summer
Gold has agreed to fully repay Transol for
the initial cost of acquisition, being
US$350,000.
Upon Transol receiving the cash proceeds
from the sale of the Liberty Group and repayment
of the funds from Summer Gold,
Transol will have received US$950,000.
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CHATREE EXPANSION ON TIME AND ON BUDGET
EXPANSION of the processing plant at Kingsgate
Consolidated’s Chatree Gold Project is on
time and on budget with first gold expected
during the September quarter.
The expansion will take
annual capacity from 2.3 million
to 5 million tonnes and
the company’s increase total
annual production to around
200,000 ounces. Thailand
has been experiencing early
wet season rainfall and, while
having restricted some activities
on site, construction activities
for the plant expansion
remain on schedule.
Kingsgate received conditional
approval in late March
for the amended mine plan for
the Chatree Gold Mine, which includes access
to the higher grade C north pit area. However,
the mining approval requires
clarification and additional certification from
the local and regional main roads authorities.
With this additional delay access to higher
grade ore in C North is now expected sometime
during the current quarter and then positive
impact of the higher grade ore from C
North should now be felt in the second half
of the calendar year.
The delay will have an impact on production
for the current financial year with full year gold
production now expected to 125,000-
130,000 ounces, which includes 85,000 to
90,000 ounces from Chatree and around
40,000 ounces attributable to Kingsgate from
the Challenger mine in Australia for the five
months from February 1, 2011.
Group gold production for the March quarter
totalled 32,973 ounces. The Chatree mine
operations were restricted during the quarter
and contributed 16,784 ounces. Challenger
operations were affected by unseasonal rainfall
following major cyclone activity in northern and
central Australia but managed to produce
24,900 ounces of gold for the quarter of which
16,189 ounces are attributable to Kingsgate.
Chatree is a world-class deposit which
Kingsgate aims to continue mining for many
years. World-class gold deposits generally
have more than 5 million ounces and at present
Chatree has about 6 million, including
gold already mined, with the resource continuing
to grow. As at June 30, 2010, it had a
1.9 million ounce reserve and a 4.3 million
An aerial view of the expansion projects at Kingsgate’s Chatree project.
The Kingsgate processing plant at the Chatree Gold Project.
ounce resource. It also has low operating
costs of around US$341 an ounce plus a
US$117 Thai royalty. Apart from the expansion
of open pit operations at Chatree, the
project also has underground potential
which Kingsgate is investigating.
Meanwhile, Kingsgate’s Thai subsidiary
Akara Mining has postponed a proposed initial
public offering on the Thai bourse, which
it says is due to concerns about Thailand’s
long-running political problems. It had expected
to list in the fourth quarter of 2010 but this
has now been put back by 12 months. Akara
is expected to have market capitalization of
about 10 billion baht (US$326 million) and has
licences to explore for gold in Phichit and
Phetchabun provinces, north of Bangkok.
Southeast Asia exploration resumes
EXPLORATION work has re-commenced on
Southeast Asia Mining’s Special Prospecting
Licences (SPLs) in Thailand which are held by
its operating subsidiary, Geotai Exploration
and Mining Co. The main objective is to define
mineral reserves of molybdenum, lead,
zinc and copper.
The exploration period has been granted for
five years on all Geotai SPLs with GMT Corporation
contracted to assist with the program
planning, field supervision, core logging, and
sampling and data compilation and analysis.
There are two SPLs in Chanthaburi province
with exploration under way on each. Diamond
drilling is being conducted at one of these
SPLs on the first of three target areas of anomalous
zones at depths of 80 to 120 metres
as follow-up work on surface exploration to
define geochemical anomalous zones of molybdenum,
lead, zinc and copper.
There are two zones of geophysical anomalies,
the first zone is trending NE-SW
about 700 metres wide and 1400 metres in
length with the second zone trending NE-
SW about 50 metres wide and 850 metres
long. The anomalies are hosted in grey, coarse
grained biotite granite, quartz veinlets
about 1cm to 15cm thick.
On the other Chanthaburi SPL Geotai has
completed surface geological
mapping and geochemical
soil surveying along
assigned survey lines. According
to previous work,
soil geochemical surveys
show geochemical anomalies
of molybdenum, lead,
antimony, zinc and copper.
The area is underlain by grey
subarkosic sandstone, mudstone
and conglomerate of
Ck1 rock unit of Triassic age.
Properties containing high
levels of molybdenum and
antimony have been found in
this area and mined.
In Kanchanaburi province Geotai has begun
preliminary surface geological surveying including
Landsat interpretation, airborne geophysical
interpretation, surface geological
mapping, geochemical surveying and chemi-
22 | ASIA Miner | May/June 2011

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SE ASIA: Thailand
cal analysis. The two SPLs are close to the
lead-zinc mines of KEMCO Ltd. The ore is
combined lead-zinc with silver credits.
The deposit has been defined as a stratabound
massive sulphide and mineralization
has been defined within Ordovician limestone
similar to the Mississippi Valley in US. Structurally,
the rock has been folded to a synclinal
form with the fold axis plunged to the SE direction.
The area has been bounded on both
sides by the NW-SE faults/fractures. On the
eastern part, a fault contact between Ordovician
limestone and Triassic rocks is presented.
Southeast Asia’s president and CEO Kerry
Smith says, “We are excited to be conducting
exploration. The Chanthaburi molybdenum
site has the potential to be a major asset in
the company's portfolio. The Kanchanaburi
SPLs are in an area with historical lead-zinc
deposits and warrant serious exploration.”
Lease expected for Ka Ber Din
THE strategic alliance between Australia’s Artist
& Entertainment Group (AEG) and Thai
company 99Co expects to receive a lease to
mine shortly for the Ka Ber Din thermal coal
project in the Om Koi District, Chiang Mai
province, northwest Thailand.
Upon approval of the licence, AEG, as a foreign
investor, will participate up to a maximum
of 49% in the project as an incorporated JV
company. The joint venture may also then
seek to acquire additional prospective land in
surrounding areas while there are also opportunities
to access further resources in an area
20km southeast of the project. There is also a
large coal outcrop across the Myanmar border
in an area that is cut off from the rest of Myanmar
by a mountain range.
99Co has started a concept study on the
proposed development of a coal-fired power
generation plant in conjunction with the Ka
Ber Din mine. The power plant strategy offers
significant savings in road construction, maintenance,
transport and related costs.
The Electricity Generating Authority of Thailand
is receptive to power plant development
and the potential for energy offtake. Coal is
in high demand in Thailand, which has limited
coal supplies and is highly dependent on imports,
mainly from Indonesia.
There are two main seams at Ka Ber Din –
the UC seam and the LC seam. The UC coal
is ranked as sub-bituminous B and on an airdried
basis has inherent moisture of 12.17%,
ash content of 14.11%, volatile matters of
40.54%, fixed carbon of 33.17%, total sulphur
of 1.35% and calorific value of 4671
kcal/kg. The LC coal is ranked sub-bituminous
A and on an air-dried basis has inherent
moisture of 5.82%, ash content of 19.75%,
volatile matters of 40.55%, fixed carbon of
33.87%, total sulphur of 2.29% and calorific
value of 4586 kcal/kg.
The coal meets domestic consumption parameters.
If mined, coal will be supplied to
Thai power plants and can also be used as
feedstock to drive the proposed on-site
power plant. The regional power grid runs
about 5-6km from the proposed mine site.
AEG has changed its business direction in
the past 12 months with a new focus on
energy related activities and to this end is
now seeking to change its name to Asia
Energy and Minerals Ltd. It is seeking to acquire
Tiger Energy, which has the Wallawi oil
and gas field near Balikpapan in East Kalimantan,
Indonesia.
May/June 2011 | ASIA Miner | 23

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AEG has also been following up on an oil
and gas exploration project in Cambodia and
is negotiating with the government under a
PSC arrangement.
Amanta seeks new licences
AMANTA Resources has applied for a new
Special Prospecting Licences (SPL) covering
the anomalous areas of the Langu Gold Project
as well as those areas over which mapping
and sampling have rendered positive
results. The new application is under consideration
by the Thai Department for Primary
Industries and Mining for approval.
Langu, in the far south of Thailand, originally
consisted of four SPLs but two of the licences
expired on July 2, 2009 and the company
has reapplied over 640 hectares of the
same general ground for one new SPL, thereby
relinquishing areas that do not warrant
further work. The remaining two SPLs are
valid until September 28, 2011.
The company has completed extensive surface
work on the Langu property, including
geochemical sampling and geological mapping,
trenching and induced polarization. Results
received to date appear to confirm that
an anomalous gold trend extends for more
than 6000 metres along a north-south strike.
Phase 1 of a 10,000 metre drill program has
been completed on the property.
Amanta has also applied for two SPLs at
the Surat prospect, which is near the town of
Surath Thani and to the north of Langu. The
area appears to have Langu-style mineralization
in a similar setting as the Langu project.
These applications are under consideration
by Thai authorities.
The company also has several tungsten
properties in northern Thailand, including Mae
Lama and Mae Chedi. It has completed extensive
surface work at Mae Lama, followed
by a limited initial drilling program when 18
core drill holes were completed for a total drilled
depth of 2958 metres.
Global Prospectors and Consultants, a Thai
mining services company, rehabilitated part
of the former mine workings and additional
rehabilitation work is required at a future date.
The owner of the property, with whom
Amanta has an agreement to acquire a
100% working interest in the project, has applied
for an extension to the original mining
licence, the initial term of which has now expired.
Activities at the site will recommence
when the extension is granted. In December
2007, Amanta was granted an SPL covering
14sqkm in the Mae Chedi area. The project
is in Chiang Rai Province and is the location
of a former tungsten/tin mining operation. To
date, the company has completed a limited
surface sampling and mapping program.
Matsa awaits concession licences
MATSA Resources is gearing up to begin exploration
activities, with the expectation that
many of its tenement applications in Thailand
will be granted after the upcoming elections.
The company has applied for a total of
1349sqkm of licences prospective for gold,
iron ore and copper. With Thailand’s Parliament
to be dissolved in May, it is hoped that
an election will be held shortly after and that
this will result in progression of many prospecting
licence applications that have been
made, including those of Matsa.
The company has a strategy of seeking
world-class exploration and mining opportunities
in Australia and South East Asia where
a number of Australian companies have been
highly successful over the past decade. This
strategy of working in Thailand shows exciting
potential with Matsa’s applications including
the KT prospect, which is adjacent and
near to Kingsgate Consolidated’s 6 million
ounce Chatree Gold Project.
In Australia Matsa is developing relationships
and potential partnering agreements
with China Kinwa Technology aimed at putting
its Norseman Gold Project into production.
This relationship could also benefit the
company’s Thai interests with a joint venture
likely to also assess other resource sector
opportunities in Thailand.
Matsa’s Thailand office is ready to begin exploration
immediately on the granting of the
tenements. While it is difficult to obtain licences
for exploration and mining, it seems
Matsa has the capacity to overcome these
barriers to entry due to its highly qualified and
experienced Thai office staff.
The KT project totals 170sqkm in 11
SPLAs, 18km east of Chatree. The applications
include 32sqkm that has had extensive
first pass surface exploration. This has defined
co-incident gold, silver and multi-element
anomalies each over about 2.5km by 1.5km
in area. Government records indicate diamond
drilling within the State Forest only 100
metres from the project boundary had intersected
6 metres @ 2.42 grams/tonne gold
from 60 metres depth.
The Paisali project further to the south totals
788sqkm. It was selected initially by inspection
of small-scale iron occurrences and observation
of recent exploration drilling on prospecting
permits. Geological interpretation and field
inspection defined a larger prospective area
covering potential host rocks and interpreted
mineralizing structures which correlated well
with ground magnetic surveys.
The Chondaen Copper Project totals
387sqkm2 and was selected based on geochemical
data and work completed to date
by Matsa’s Thai geological staff. It is believed
to have potential for copper mineralization
in a sequence of andesitic volcanic and
shallow intrusives.
A sulphide rich outcrop at a road cutting on Amanta Resources’ Langu Gold Project.
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COMMISSIONING OF EXPANDED RAUB PLANT DELAYED
DELAYS in supply and delivery of some key
equipment together with recent heavy rains
have seen commissioning of the expanded
circuit at Peninsular Gold’s Raub project put
back to the current quarter.
Peninsular’s chairman and chief executive
Dato Sri Andrew Kam says as a result of the
delay and the slightly lower grade being
mined, results for the full year to June 30 may
be lower than expected by the market.
“Once the CIL circuit is completed it will be
commissioned on tailings whilst the additional
crushing and milling circuit is built to enable
the inclusion of primary ore which remains
targeted for quarter four of 2011.”
The current Raub CIL plant is operating
above expectation with a total of 610,850
tonnes being treated while 8734 ounces of
gold were produced in the six months to December
31 and in spite of the lower grade
being processed, recovery averaged 74%.
The head grade processed from areas currently
being mined, has been 0.6 grams/tonne
on average, which is about 0.1 grams tonne
lower than the overall tailings average. The
average cash cost per ounce for the period
was about US$614, reflecting the impact of
the slightly lower grade. As the grade returns
to the overall tailings average the company expects
the average cash cost to come down.
The current tailings areas being mined are
also enabling the preparation of the next tailings
storage facility. This will be required when
the current facility is full and will store processed
material from both the tailings and also primary
ore. The primary ore is expected to start
being mined during the fourth quarter of 2011.
Exploration and drilling programs are under
way at Raub and at Tersang, in the northern licence
areas about 15km to the north of Raub.
Exploration at Raub is focused on definition
of new resources below the oxidized and intermediate
zones where 218,000 ounces were
previously estimated. The zone being investigated
is deeper within the recognized lode
structure and drilling is being conducted by
diamond drilling with three rigs in operation.
The principal drilling area at present is the primary
mineralization zone between Bukit Malacca
North and Bukit Ward where significant
widths of near surface mineralization have been
recorded in earlier RC and recent diamond drilling.
This drilling will test the probable extensions
to the known mineralization and will test
beneath the former underground workings.
The exploration and drilling objective at
Tersang is to define the initial resources to
JORC standard by the end of the third quarter.
This will be followed by a further drilling
program estimated at 20,000 metres of reverse
circulation and 2000 metres of diamond
drilling aimed at completion of the
Tersang resource definition.
May/June 2011 | ASIA Miner | 25

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SE ASIA: Malaysia
Selinsing gold plant capacity to increase 250%
MONUMENT Mining is going ahead with the
phase III expansion for its Selinsing mine and
gold treatment plant. The expansion will take
annual capacity to 1 million tonnes and will include
an additional milling, gravity and leach
circuit. The decision to proceed follows Monument
having successfully reached commercial
production with its 400,000 tonne gold treatment
plant and building cash reserves.
The 250% expansion in production capacity
will be funded from current cash reserves,
is expected to cost less than Can$8 million
and will result in a projected pay-back of three
months from operating cash flow. The expansion
is scheduled to reach practical completion
by the end of 2011 and be in full
operation by April 2012.
There will be some disruption to the present
operations during construction and commissioning
of the new equipment, however the
company projects annual gold production will
remain at 40,000 ounces for the year ending
June 30, 2011 and increase to 50,000 ounces
for the year ending June 30, 2012.
Monument will make further announcement
on the projected gold production targets from
June 2012 onwards pending plant commissioning
and the 2011 exploration program resulting
in a new reserve and resource statement.
The development and construction of the
current mine and processing facility has
shown the company has built the capability
to design, permit and construct low cost and
efficient treatment facilities. This owner capability
will be utilized to project manage the
phase III expansion.
The treatment plant at Monument Mining’s Selinsing Gold Project in Malaysia.
Monument’s Selinsing general manager
Kevin Wright, who oversaw the construction
of the existing mine and mill, says, “This
plant will not only provide an increase in production
capability and operating efficiency
but will also provide necessary operating flexibility
for processing blended feed as the
operations mature.
“Extensions to the ore zones identified by
our exploration efforts along strike and
down dip are likely to produce an increase
in variability of ore types and our in-house
design team has taken this into account”.
The overall objective of the current exploration
program is to convert existing inferred
resources to reserves, add replacement ore
and increase reserve and resource ounces
with a target to exceed 1 million ounces to
demonstrate at least a 10 year mine life.
This will be facilitated through the drilling of
about 19,000 metres of drilling in the next
12 months with four in-house rigs and one
contract diamond drill rig.
The company has an approved exploration
budget of $4.4 million for this year, including
two new diamond drill rigs, and has
been ramping up exploration capacity. In
addition to the in-house team comprising an
experienced VP of exploration, an exploration
manager and a team of four field geologists
and five pit production geologists,
the company is assembling additional drilling
crews so that its four in-house drill rigs
can operate on a two-shift per day basis.
The next reserve and resource report is
due for announcement in quarter four of
2011.
Bau drilling program of 20,000 metres
AN exploration and resource drill program of
20,000 metres is under way at Olympus Pacific
Minerals’ Bau Gold Project in Sarawak,
East Malaysia. The aim of the program is to
expand NI 43-101 reserve and resource estimates
through exploration of known deposit
extensions and new target zones.
There have been about 10 selected conductivity
anomalies identified at depths of 300
to 700 metres below the current resource.
Subsequent to Olympus’ purchase of Bau
in December 2009, resources were independently
estimated at 560,000 measured and
indicated ounces, and 1.89 million inferred
ounces. These resources include several different
mineralization styles in multiple deposits
that have to date been drilled only to
shallow depth and remain open to expansion
through continuing exploration.
Reprocessing of airborne DIGHEM geophysical
data within a central area of the goldfield
have since revealed several strong conductivity
anomalies, which show remarkable coincidence
with conjugate fault intersections and
with the surface location of historic gold mines.
Several interpretations are possible with one
being that they represent the expression of
large, mineralization systems extending to
more than 700 metres below surface. They
constitute compelling drill targets.
The 2011 exploration and feasibility study
program follows up 5680 metres completed
over 29 holes in late 2010.
Resource drilling to date has focused on
the Taiton-A deposit, which features gold-mineralized
massive calcite veins and hydrothermal
vein/breccias hosted within the
NE-SW trending Tai Parit Fault zone and
cross-cutting vein structures. Historic and
current drilling has delineated the main zone
along 800 metres of strike.
Selected Taiton-A intercepts include 19 metres
@ 5.20 grams/tonne gold, 9.9 metres @
14.11 grams/tonne, 2 metres @ 31.41
grams/tonne, 30.13 metres @ 9.07 grams/
tonne and 22.26 metres @ 4.5 grams/tonne.
Current drilling is designed to upgrade and
expand the zone along strike and within the
100-300 metre depth range.
Exploration drilling has also yielded highly encouraging
results. Although the program is far
from complete and only partial assay results
are on hand, intercepts of potentially economic
width and grade have been returned from two
separate prospect localities – Arong Bakit and
26 | ASIA Miner | May/June 2011

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SE ASIA: Malaysia
Tabai. At the former best intercepts are 12.13
metres @ 2.5 grams/ tonne and 5.7 metres @
1.08 grams/tonne. At Tabai best intercepts are
8 metres @ 1.76 grams/tonne, 3 metres @
8.73 grams/tonne and 2.5 metres @ 18.64
grams/tonne.
Positive indications of mineralization
have been seen in several holes
that have tested the deep geophysical
conductivity targets. Studies are
under way to utilize data from these
holes to help target potential gold
rich zones within the porphyry, and
surrounding host rocks at depth.
Rare earths LAMP on schedule
CONSTRUCTION of the Aus$230
million Lynas Advanced Materials
Plant (LAMP) at Gebeng, near Kuantan
on Malaysia’s east coast, remains
on track for first production of rare
earths in the third quarter of 2011. It will be
the first rare earths processing plant built outside
China in nearly 30 years.
Lynas Corporation expects the LAMP will
meet almost a third of the world’s demand for
the minerals within two years, excluding
China. It believes the plant, along with the
company’s Mount Weld mine and concentration
plant in Western Australia will help break
China's dominance of the rare earths market.
Construction of the kilns at the Lynas Advanced Materials Plant (LAMP) in Malaysia.
China supplies more than 90% of global rare
earths supply, although its reserves represent
33% of the global total. But China's tightening
grip on the minerals and their export has raised
overseas concern over supply security.
At current prices, the Lynas refinery is expected
to generate $1.7 billion worth of exports,
nearly 1% of Malaysia’s economy, starting
late in 2012. Lynas plans to ship ore to
Malaysia from Mount Weld.
Engineering has progressed well with deliverables
on schedule to be issued by
the end of March. Steelwork has
been issued for detailing and concrete
drawings issued for construction.
Procurement of equipment
packages remains on schedule with
delivery of equipment to Kuantan in
preparation for installation on site,
ramping up.
Construction activities are in full
swing with more than 1000
people on site. Concrete has
been poured and structural steel
is being installed. Installation of
kilns has enabled multiple trades to
mobilize to the site.
Lynas has received a ‘no objection’ letter
from Australia’s Foreign Investment Review
Board regarding investments in Lynas by a
special purpose company involving Sojitz
Corporation and JOGMEC.
May/June 2011 | ASIA Miner | 27

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Mongolia
RARE EARTHS JOINT VENTURE EVALUATES FOUR SITES
JUST days after announcing a letter of intent
to help develop a third new rare earth mining
property in Mongolia, the joint venture formed
by Green Technology Solutions and Rare
Earth Exporters of Mongolia (REE) signed up
to evaluate a fourth site.
The joint venture’s agent company signed
a letter of intent to help finance, market and
develop a new mineral-rich site in Bulgan
province, northern Mongolia. The property is
part of the Dashinchilen district, home to a
population of about 2300.
The letter was co-signed by the executive
director of Bouo LLC, the company that
owns the property’s mining rights. Green
Technology and REE now have the right to
scientifically evaluate the site’s mining potential
in performing due diligence toward a definitive
agreement. Bouo LLC will retain
authority to mine the location with the joint
venture entitled to a share of the profits.
The Bulgan site is the fourth Mongolian
property being evaluated by the joint venture.
It is also analysing two sites in the country’s
Tuv province and another in Dornogobi
province. The latter sees the joint venture
working with Modot Uul LLC, the company
owning the mining rights for the site, on a
similar basis to Bouo.
Green Technology’s president and CEO
John Shearer says, “Our joint venture has already
commissioned mineral analysis of the
soil at the Dornogobi property, and we expect
that the results will resoundingly confirm the
economic viability of mining rare earths there.”
In the letter of intent, Modot Uul claims that
the property contains rare earth elements including
scandium, yttrium, ytterbium and lanthanum.
Among many applications, the
metals are in high demand for usage in aerospace
components, superconductors, infrared
lasers and fluid catalytic cracking
catalysts in oil refineries.
John Shearer says the Bouo deal will likely
be the joint venture’s last letter of intent
signed in Mongolia until it is able to review the
mineral contents of each site. “We will continue,
however, to seek out promising rare
earth mining properties throughout the country
and elsewhere.
“We feel strongly that Mongolia will be the
world’s next great producer of rare earth elements,
and we’re investing aggressively to
help achieve that vision. Mongolia is the key to
our plans to help break China’s stranglehold
on the world’s supply of rare earth elements.”
A minerals lab will analyse the Bulgan site’s
properties and report to the joint venture how
many grams/tonne of the soil comprise rare
earth elements.
Green Technology and REE planned to ship
their first batch of rare earth ore from Mongolia
to the international seaport of Vladivostok,
Russia, during April.
Drilling at Xanadu Mines’ Galshar Coal Project in Mongolia’s central east.
Thick coal seams at Galshar
THE first holes of an extensive exploration
drilling program at Xanadu Mines’ Galshar
Coal Project 250km southeast of Ulaanbaatar
have confirmed seam thicknesses of about 20
metres. Dilling began in early March with two
diamond rigs operating on a double shift basis.
A coal exploration target of 175 million to
225 million tonnes has been set at Galshar
and the aim of the 36-hole drilling program is
to enhance and extend that target into a
JORC-compliant resource.
Xanadu expects the first phase of the program
will take at least two months and that it
may then be expanded to allow for more detailed
JORC reserve drilling in priority areas.
A field camp has been set up to support the
drilling and other exploration, which includes an
excavator trenching program and a detailed regional
topographic survey of the Galshar basin.
A ground magnetic survey is also under way.
Xanadu’s chairman Brian Thornton says, “In
addition to Galshar, the company has embarked
on an aggressive program to evaluate
a number of coal and potential porphyry copper
opportunities across the south and the
north of the country.
“Xanadu has previously announced it aims
to spend about $6m on exploration in 2011 on
existing and new projects, in addition to exploration
spending on coking coal and iron ore as
part of the Noble-Xanadu strategic alliance.”
The terms of the alliance to explore and develop
coking coal, iron ore and ferro alloy opportunities
in Mongolia were finalized in mid-
April. Xanadu and Noble will participate in the
alliance through a joint venture company with
each party holding a 50% interest. Xanadu’s
existing assets are not part of the alliance.
The initial focus will be the pursuit of a number
of identified opportunities and the alliance
will seek to maximize the benefits of Xanadu’s
and Noble’s respective country experiences
and strengths.
Meanwhile, Xanadu’s wholly-owned subsidiary,
Xanadu Metals Mongolia LLC, has acquired
all issued capital of Soduntag LLC,
which has given Xanadu ownership of the advanced
Mogoin Gol porphyry copper project.
Mogoin Gol is one of Mongolia’s most
prospective porphyry copper opportunities.
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Mongolia
It is in Bulgan province, about 230km northwest
of Ulaanbaatar and about 40km northwest
of the Erdenet porphyry coppermolybdenum
deposit.
Erdenet is Mongolia’s largest operating copper
mine, annually producing about 530,000
tonnes of copper concentrate with measured
and indicated resources of 4.7 million
tonnes. It has it own rail infrastructure
which connects with the
Trans-Mongolian railway.
Detailed induced polarization,
ground magnetic and gravity surveys
will begin shortly with an aggressive
drilling program planned
for late in the 2011 field season.
New discovery north of Oyu Tolgoi
IVANHOE Mines and BHP Billiton
have discovered a new zone of
shallow copper-molybdenum-gold
mineralization about 10km north of
Ivanhoe’s massive Oyu Tolgoi coppergold
mining complex under construction in
southern Mongolia.
The discovery of Ulaan Khud North extends
the known strike length of the Oyu Tolgoi mineralized
system by an additional 3km to the
north, to more than 23km.
Less than half of the mineralized trend at
Oyu Tolgoi has been extensively drill-tested to
date. An ongoing exploration program including
proprietary, induced-polarization technology,
has identified additional exploration and
development targets.
Ivanhoe’s executive chairman and chief executive
officer Robert Friedland says, “The
Ulaan Khud North discovery reinforces our
longstanding belief that with continued exploration
there is excellent potential to discover
new porphyry deposits, rich in copper and
gold, which are associated with the worldclass
Oyu Tolgoi mineralized trend.”
Ulaan Khud North is on a 19,625-hectare
exploration licence that is part of Ivanhoe's
joint-venture partnership with BHP Billiton,
which was formed in 2005. BHP Billiton has
earned a 50% interest in the joint venture by
spending US$8 million in exploration costs
and conducting an airborne survey using
the proprietary Falcon gravity gradiometer
system over the Oyu Tolgoi area.
A total of 25 drill holes totalling 6561 metres,
ranging in depth from 182 metres to 377
metres, defined the new zone of shallow porphyry
copper mineralization over an area of
600 metres by 300 metres. The zone starts
beneath 60 to 80 metres of Cretaceous clay
and gravels, indicative of a near-surface deposit
with open-pit mining potential. Ivanhoe's
geologists believe that the near-surface
copper mineralization discovered may be part
of a much larger deposit.
Many holes encountered mineralization with
Core from the Ulaan Khud North prospect.
greater than 1% copper in multiple individual
one-metre samples, while almost all holes
have longer intervals of mineralization grading
greater than 0.3% copper.
Highlights include 19 metres from 155 metres
@ 0.941% copper, 0.098 grams/tonne
gold and 0.029% molybdenum for a copper
equivalent of 1.158%; 9.6 metres from 208.1
metres @ 2.429% copper, 0.121 grams/
tonne gold and 0.149% moly for copper
equivalent of 3.3%; and 7.65 metres from
174.35 metres @ 2.242% copper, 0.203
grams/tonne gold and 0.081% moly for copper
equivalent of 2.803%.
The mineralization at Ulaan Khud North
starts as shallow as 60 metres below surface,
much higher than the mineralized zone at
Hugo Dummett to the south. The fact that
Ulaan Khud North occurs in similar Devonian
host rocks to Hugo Dummett suggests that
the main Oyu Tolgoi porphyry system trend is
relatively shallow in this area and that potential
for surface-mineable targets still exist
within the Oyu Tolgoi trend and Ulaan Khud
North in particular. The Ulaan Khud North
property adjoins the Shivee Tolgoi Entree
Gold-Ivanhoe Mines joint-venture property
and is about 3km north of mineralization
found at Ulaan Khud on that licence.
Banpu takes share in Hunnu
HUNNU Coal has signed a strategic partnership
with major Asian energy company
Banpu which will help Hunnu explore and develop
its suite of Mongolian coal assets. Following
the acquisition by Banpu's whollyowned
subsidiary, Banpu Mineral Resources,
Banpu will be the biggest shareholder in
Hunnu with 12.39%.
Hunnu has established a strong position in
thermal and coking coal deposits in South
Gobi, Mongolia, and is undergoing
extensive exploration for 10 coal
projects, two of which has a combined
coal resources of more than
400 million tonnes. The funding
provided by the investment will be
used to further fast track the development
of these two advanced
properties - Tsant Uul and Unst
Khudag.
Banpu has operations in Thailand,
Indonesia, China and Australia, and
currently produces more than 40
million tonnes of coal annually. The
investment in Hunnu will provide it
with exposure to Mongolia’s lucrative
coal industry.
As well as acquiring 30 million shares in
Hunnu for total consideration of Aus$45 million,
the Thai-based company will nominate a
representative to Hunnu’s Board and support
development of Hunnu’s Mongolian assets.
Banpu’s CEO Chanin Vongkusolkit says
Banpu is seeking to be a long-term player in
the growth and development of Hunnu and
the Mongolian coal sector.
“Hunnu is a well managed business with a
clear strategy and great prospects. The
strategic partnership with Hunnu is an effective
way for Banpu to partner with Hunnu for
the long-term benefit of both companies.
“The Mongolian coal sector has great potential,
with extensive coal deposits and rapidly
developing infrastructure. Its close proximity to
key coal export markets such as China makes
it an attractive investment destination.
“A strategic partnership with Hunnu is a
lower-risk way for Banpu to familiarize itself
with the Mongolian coal industry. Establishing
a strategic alliance in Mongolia is part of
Banpu’s strategy to expand its position in key
Asia Pacific markets.
“We are strongly supportive of Hunnu’s
management team and its current strategy,
and the alliance will allow Banpu to share operational
expertise.”
TVET tackles skills shortage
IN a first for Mongolia, the supply and demand
of technical and vocational skills and
May/June 2011 | ASIA Miner | 29

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Mongolia
Hunnu Coal has a range of coal prospects throughout Mongolia.
labour across the Gobi region has been extensively
documented, and government, industry,
schools and other stakeholders can
use the information to help transition people
into the workplace with work-ready skills.
Funded by Oyu Tolgoi LLC and Millennium
Challenge Account (MCA)-Mongolia and
carried out by consultancy firm Sustainability,
the Gobi Regional Technical and Vocational
Skills, Labour and Training Survey, or
Technical Vocational Education and Training
(TVET) Project, has produced a baseline assessment
of the reality of technical and vocational
skills, and labour.
Sustainability’s John Miragliotta says it’s the
first time a survey investigating and quantifying
key skill availability has been undertaken
in Mongolia. “We have captured the work experiences
and skills of 18,500 individuals but
information now needs to be verified with aptitude
testing to ensure what skills individuals
‘say’ they have, is what they do have.”
The Gobi region holds vast mineral resources
and exploitation of these will result in significant
direct and indirect social and economic impacts
for all of Mongolia, and create an unprecedented
demand for qualified labour.
MCA-Mongolia is an independent Mongolian
entity that has entered into a compact
with US foreign aid agency Millennium Challenge
Corporation to improve Mongolia’s
TVET, with the goal of reducing poverty
through economic growth. The TVET Project
is a jointly-funded scheme between MCA-
Mongolia and Oyu Tolgoi LLC to initiate a
public-private partnership to produce essential
baseline information and analysis for TVET
development in the Gobi. Sustainability has
been working with Oyu Tolgoi since 1992 and
the project is a result of a recommendation
made by Sustainability in a previous review.
As well as identifying existing/available skills
and existing and potential demand for skilled
labour, Sustainability assessed the impacts of
various issues to the current and future supply
of and demand for labour and skills development
in the region. Institutional assessment
and analysis was carried out on four existing
regional TVET centres as well as existing vocational
and technical training institutions in
Ulaanbaatar, Erdenet and Darkhan.
Of 18,500 surveyed, 18% have studied a
qualification aimed at a specific vocation;
22% have a qualification at a graduation
level, but only 1% of these is technical and
would be considered for employment entry
purposes in a mining or construction sector;
and 60% are a combination of no schooling
or to Year 10. These figures should not be
seen as a direct correlation with skills as individuals
may have acquired certain skills by
working in jobs that have provided training
or experience in various skills.
Agriculture/hunting was identified as the industry
with most experience with 47% claiming
experience. Education was second at
12%, followed by mining and government,
both 9%, building and construction 7%, services
industry 6%, and health and social services
and transport/communications both 5%.
The top indicative skill sets include driving/
equipment operating, computing, construction,
safety and risk, pastoral, crop/plant
breeding, and communal/household but the
bottom indicative sets represent the skills
most in demand by six mining companies
surveyed, including mechanical/maintenance,
management, electrical, fabrication, machining,
mining underground and mining surface.
The companies have an immediate need for
another 1000 people across a range of skills
and they consistently described a range of issues.
It is viewed that TVET schools don’t
have the equipment relevant to the workplace
and don’t produce work-ready graduates.
Similarly, in assessing institutions and their
capacity to supply qualified skills by occupations,
Sustainability identified discrepancies
between the level of knowledge and skills of
existing labour in the region, graduates from
vocational education and training institutes,
and requirements of employers.
In terms of safety training, it was noted that
legal requirements are strengthening, as is attention
to OHS in schools but there is a gap
between theory and practice. The lack of national
framework was also identified. Until
2010 there was no central qualifications authority
and, as yet, no standard in practice
across all schools.
A key issue in the competency assessment
is that many have training and skills in low demand,
and that there are insufficient linkages
between what training schools are providing
and what employers want. Sustainability recommends
each industry sector have a specific
Industry Education and Training Board responsible
for developing the minimum competency
requirements relevant to that sector.
In addition, industry training should be provided
based on evaluation of a person against
the defined requirements of a job and not haphazardly
provided. All training must be competency
based. Companies should develop
their own training centres for practical competencies
that would be integrated with delivery
of theory-based learning at TVET institutions.
Sustainability recommends that traineeships
and apprenticeships be developed and
funded, and jobs need to be more clearly defined.
It also recommends regional assessment
and training centres be introduced for
career guidance, validation of skills and qualifications
and training provision.
Implementation of recommendations is
under way. The Mongolian Government has
established the National Council of Vocational
Education and Training, whose responsibilities
include developing a national TVET framework.
Additionally, partnerships between industry
and schools are strengthening.
30 | ASIA Miner | May/June 2011

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Mongolia
PAID ADVERTISEMENT
ACHIEVE BUSINESS OBJECTIVES THROUGH EXPERT KNOWLEDGE
A CASE STUDY FEATURING SHARYN GOL JSC
INTERNATIONAL and local reporting standards specific to the reporting of mineral
reserves and resources, and exploration results are critical to Mongolian mineral
resources companies seeking international investors.
To ensure standards compliance, they require an in-depth understanding and
knowledge of the industry bodies that implement and manage them. Consequently,
increasing numbers of resources companies are outsourcing the expertise
needed to adhere to these regulations and satisfy financial institutions.
Global software solutions and services provider MICROMINE has helped exploration
and mining companies throughout Central Asia achieve their business objectives
and meet reporting requirements. The company’s consulting division,
Micromine Consulting Services (MCS), is regarded as one of the leading consulting
authorities within the Asia Pacific area.
MCS manager Dean O’Keefe explains, “MCS provides consulting services to
companies that require specific geological and mining expertise. We have undertaken
numerous independent mineral resource and reserve estimates, site validation,
quality control and pit optimization exercises for companies at pre-feasibility
and feasibility stages for all commodities.”
Local presence and knowledge
Dean O’Keefe adds, “Because MICROMINE has offices in 18 of the world’s mining
capitals, including China, Kazakhstan, Mongolia, Russia and Indonesia, MI-
CROMINE’s clients are provided local services in their own language and time-zone.
Our staff understand the local issues and standards that impact clients’ projects.”
The MCS team generate competent persons reports that comply with international
reporting standards including; JORC, N143-101, SAMREC, SEHK (Chapter
18, Hong Kong), China MLR and Mongolian Standard.
MCS is also in the unique position of having recognized in-house experts in the
area of coal mining and geology. Consultants can sign off all Competent Persons
Reports for coal related projects undertaken in Mongolia by MCS. This acknowledgement
adds significant credibility to all elements of a project, particularly where
funding or financial support is required.
Sharyn Gol JSC
Headquartered in Ulaanbaatar, Mongolia, Sharyn Gol JSC is involved in the extraction,
processing and sale of coal in northern Mongolia, with a 100% interest in the Sharyn
Gol coal mine. Its coal is generally sold to utility markets for thermal and semi-coking
purposes and is used by Erdenet and Darkhan as a main energy source.
MCS was recently commissioned to complete a technical report compliant with
JORC standard reporting guidelines for the Sharyn Gol coal mine, about 215km
north of Ulaanbaatar. To ensure optimum results, all work related to the project
was conducted in a meticulous manner and field work, including supervision of
downhole geophysics and drilling, was carried out by Triton Coal according to procedures
established by MCS. If core coal sample recovery was less than 90%,
the seam was re-drilled. Triton Coal diligently followed the prescribed procedures,
resulting in the project’s successful outcomes.
MCS established the work program procedures before drilling commenced, the
borehole patterns were designed and then all coal was logged and sleeved. The
sample moisture was maintained by sleeving the coal in plastic and keeping samples
at a low temperature. By doing this, oxidation was avoided, the moisture content
was not affected and the calorific value was representative. The samples were
dispatched quickly to the laboratory following sampling.
The resource estimate modelling was conducted using Coal Measure, MI-
CROMINE’s coal specific software solution. Gridding of the thicknesses and surfaces
of each seam was initially completed by undergoing a geostatistical analysis
to generate a series of semivariograms which were used as the input weightings
for the Kriging algorithm. These grids were then converted into a block model.
Resources were reported separately for above and below 300 metres from surface.
The industry standard design depth for Mongolian open cut coal mines is
300 metres, below which all mining is conducted using underground mining methods.
Resources were also divided into two areas - the South West deposit and
Satellite deposit. These areas were reported separately as they possess different
genesis, coming from different basins, and have different coal quality properties.
MCS reported resources on the basis of ‘as received’ and ‘air dry’.
The JORC-compliant estimate provided by MCS found the Sharyn Gol Coal
project quadrupled the resource inventory. The report’s findings have resulted in
further developments of the mine which are set to enhance the company’s competitiveness
in the domestic and international coal markets. The findings also have
the potential to substantially increase profits and shareholder return.
Checking core samples from the Sharyn Gol Coal Project.
Mongolian Government certification
In May 2010, MICROMINE received certification from the Mongolian Government
as a company authorized to conduct feasibility standard studies in Mongolia. Certification
allows MICROMINE to complete any geology, resources, mining and
other related sections of studies submitted to the Government to allow the permitting
and commissioning of mineral projects in Mongolia.
Dean O’Keefe commented, “What makes this certification unique is the knowledge
that we are the only foreign company registered to undertake this type of work in
Mongolia. Having the certification from the Mongolia Government demonstrates their
confidence in the market leading capabilities of MCS’s mining skills and solutions.”
For further information about MCS please contact mcs@micromine.com. For information about
Sharyn Gol JSC visit www.sharyngol.com
32 | ASIA Miner | May/June 2011

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South Korea
PAID ADVERTISEMENT
ACHIEVE BUSINESS OBJECTIVES THROUGH EXPERT KNOWLEDGE
The disused infrastructure at Woulfe Mining’s Sangdong tungsten-molybdenum mine.
THE rich mining history of South Korea is on
the verge of being revived with the re-opening
of Woulfe Mining’s Sangdong tungstenmolybdenum
mine in 2012. South Korea once
had a thriving mining culture with many relatively
small metallic mines including gold, base
metals and tungsten-molybdenum.
The Sangdong mine was the powerhouse of
the economy in the post-Korean War decades,
contributing more than 50% of the country’s
export revenue as one of the largest global
tungsten producers. This mine along with almost
all other metallic mines in South Korea
closed in the 1990s primarily due to low commodity
prices, at a time when Korea was
emerging as a manufacturing powerhouse with
companies such as Hyundai, LG, Samsung
and Posco attaining international prominence.
The mining industry was relegated to an insignificant
corner of the economy and now
contributes less than 0.5% of the GNP. In
fact, in recent years there appears to be a
widespread perception in Korea that the former
mines were fully exploited never to be reopened.
The former owner of Sangdong,
Korea Tungsten Co, emerged into Korea’s
largest manufacturer of tungsten cutting tools
and hard metal tools with the only integrated
tungsten production plant in the world.
Known as TaeguTec Ltd, it is 80% owned by
Warren Buffet’s Berkshire Hathaway.
The boom in commodity prices is underpinning
the revival of the Korean mining industry.
Woulfe was fortunate in that it recognized
the prospectivity of Korea prior to the
boom and secured title to several properties
in 2006, including Sangdong, the Muguk
gold mine and the Yeonwha lead-zinc mine,
all historically the largest producers of the respective
metals in Korea, plus a number of
other secondary properties.
Woulfe is a junior resource company listed
on the TSX Venture Exchange in Canada. It
is now run by Australian-based Brian Wesson,
an ex-South African with extensive
hands-on mining and project development
experience. Prior to taking control of Woulfe,
Brian Wesson and his wife Amelia, also a director
of the company, were instrumental in
re-commissioning the Vatakoula gold mine in
Fiji. Bouyed by their achievements in Fiji, the
Wessons carried out due diligence on the Korean
assets in late 2009 and considered that
a world-class tungsten project in South Korea
was a project developer’s dream.
Under their management, the company
was recapitalized and rebadged as Woulfe
Mining. Given Brian Wesson’s background,
the focus switched from exploration to development.
The previous concept of a large
open pit mine at Sangdong was replaced by
the much simpler concept of re-opening the
old workings, which significantly reduced the
environmental and permitting requirements.
A scoping study undertaken by Wardrop in
the UK was finalized in March 2010 based on
an underground room-and-pillar mining operation.
This study was based on an annual
production rate of 2.5 million tonnes with an
initial capital cost of US$289 million, and generated
a pre-tax net present value of US$462
million at an 8% discount rate, with an internal
rate of return of 26%.
Significant progress has been achieved
since the release of the scoping study. Mining
approval was granted in June 2010 by the
provincial government, portions of the upper
levels have been rehabilitated for drilling access
and the feasibility study is well advanced.
In line with Brian Wesson’s hands-on
approach, he is using seasoned industry consultants
to undertake the detailed evaluation
and design work in conjunction with Wardrop
to ensure that the feasibility study is completed
later this year.
The study is based on an initial annual production
rate of 1.2 million tonnes producing a
relatively low grade tungsten flotation concentrate
which will be upgraded to APT (ammonium
paratungstate). The tungsten price most
generally quoted is for APT, expressed as the
price per metric tonne unit (mtu) of tungsten
oxide (WO3) in APT. A mtu is equal to 10kg of
WO3. The APT price is currently over
US$400/mtu, almost 10 times the price when
the Sangdong mine closed in 1992 and more
than twice the price in late 2009. A tungsten
price of US$250 was used in the scoping study.
Tungsten is a strategic metal and China
dominates global production and consumption.
China has recently extended its restrictions
on the production and export of
tungsten, along with the restrictions on rare
earths and antimony, to conserve its resources
and protect the environment. China
had long been the largest exporter of tungsten,
however its own growth has turned it
into the leading consumer of the metal. This,
combined with the continued demand across
the rest of the world, precipitated the sudden
surge in the price of tungsten.
The Sangdong mine is well placed to meet
the looming supply shortage. By world standards,
it is a very large uniform skarn deposit
with significant residual resources. The NI 43-
101 compliant resource estimate determined
by Wardrop in the scoping study totalled 103.2
million tonnes at an average grade of 0.35%
WO3 with molybdenum credits, calculated
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PAID ADVERTISEMENT
South Korea
using a cut-off grade of 0.10% WO3. The resource
was contained within two parallel skarn
lodes referred to as the Hangingwall and Footall
lodes. A central Main lode was the focus of historic
mining and the
remnant resources
within this zone were
not included in the
scoping study resource
estimate.
The three parallel
zones dip to the north
at between 15 to 30
degrees, with a lateral
extent of up to 1300
metres along strike
and 1500 metres
down dip. The Main
zone is 5 to 6 metres
in thickness and has
the highest average
grade with tungsten
grades of several percent in the core. Much of
the Main zone has been exploited. The Hangingwall
lode, some 15 to 20 metres above the
Main zone, varies in thickness due to the irregular
boundary with the overlying limestone, with
an average thickness of 10 to 12 metres. The
Footwall lode, some 35 to 40 metres below the
Main zone, comprises several skarn zones with
an overall thickness of up to 12 metres.
The upper levels of the old workings are
above the valley floor and above the current
water level in the mine. A 5300 metre drilling
program is under way to upgrade the resource
estimates within the Hangingwall and Footwall
lodes above the water level, and to determine
the remaining resource within the Main zone in
this area. Significantly, an infrastructure pillar
protecting the haulage level traverses the
mine, with infrastructure pillars housing inclined
haulage and ventilation shafts located on the
east and west flanks of the mine.
The resources above the water line between
the -1 Level and +1 Level, representing
a vertical distance of around 60 metres, will
underpin the feasibility study, referred to as
the fast-track plan as it alleviates the requirement
to dewater the mine prior to start-up.
The bulk of the resources below the water line
to -18 Level will be progressively drilled and
evaluated as the mine is dewatered. Preliminary
estimates of the resources above the
water line indicate that this area should support
a mine life of at least 5 years with above
average grades over 0.4% WO3 expected.
The drilling is being expedited with 3 underground
rigs and 4 surface rigs operating, and
a revised resource estimate is scheduled to
be completed by June 30 this year.
China dominates world tungsten production and tungsten reserves.
According to Woulfe’s president and CEO
Brian Wesson, management is focused on
shareholder value. “Our aim is to build an efficient
project, not necessarily the largest but
the most cost effective, in order to provide reliable
returns. Early mining will focus on the
upper part of the mine, above the valley floor,
which was not mined as previous owners
were using the infrastructure in the top of the
mine. As the ore zones are 1000 metres wide
and 7 to 12 metres high, they can be bulk
The western world’s active tungsten mines and known tungsten projects.
mined using large trackless gear, making extraction
costs very efficient. As the mine can
support the construction of an APT plant,
Woulfe will be strategically placed within Asia
to produce a commodity that can be sold directly
to consumers on metal bulletin pricing.”
Woulfe’s vice president - technical Bill Kable
says the planned annual production rate will
initially be 1.2 million tonnes with the option
of increasing to 2.4 million tonnes later, depending
mostly on market conditions.
“The in-house capex estimate is US$130
million for onsite crushing, grinding and flotation
circuits plus mine development and infrastructure,
and an APT plant. Woulfe has
purchased the primary crushing circuit which
was new but unwanted equipment, and is
looking to source the rod mills on a similar
basis. Work is well advanced on the detailed
engineering design of the plant which will be
situated on the footprint of the old Sangdong
plant site, thereby simplifying the environmental
requirements.
“The APT plant, which will be one of very few
in the western world, will most likely be located
offsite near port facilities so it can be used for
toll treating third party concentrates and also
better placed to attract technical staff.”
Woulfe has a strategic Korean shareholder
with Korea Zinc recently investing Can$10
million and adequate cash of more than
Can$16 million including warrants to be exercised
this year to complete the feasibility
study, plus some very interesting projects yet
to be evaluated. For example, a large molybdenum
stockwork zone lies below the Sangdong
skarn and preliminary work suggests
that this could be exploited by bulk mining
methods. Muguk is also a very exciting project
with a residual resource of more than
500,000 ounces of gold at closure in 1997.
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South Korea
PROMISING STONEHENGE URANIUM RESULTS
DESPITE the uncertainty created in the uranium
industry by the Japanese power plant
crisis, South Korea’s government is committed
to existing plans for nuclear power and is
encouraged by the recent results of Stonehenge
Metals at its uranium prospects.
Stonehenge's mineral resource estimate for
its Daejon Uranium Project has increased by
87%, thus becoming the largest uranium resource
in South Korea. The estimate has been
Stonehenge Metals has a number of uranium prospects along South Korea’s uranium belt.
calculated at 92 million tonnes averaging 320
ppm uranium for a contained 65 million pounds.
The company has also made a new uranium
discovery at its Gwesan project. Strong
intercepts have been returned from the first
six holes of a drill program designed to test
the down dip and along strike continuity of
outcropping uranium and vanadium.
The best intercept is 7 metres at 337 parts
per million (ppm) uranium and 4880ppm
vanadium. Other assay results include 8 metres
@ 10,198ppm vanadium from 87 metres,
and 17 metres @ 267ppm uranium and
5460ppm vanadium from 140 metres.
The uranium mineralization extends over
about 600 metres of strike length and is
open along strike and down dip. This discovery
has been made in an area where there
has been no previous drilling. Stonehenge’s
managing director Richard Henning says,
“Given the early stage of this exploration the
results are very encouraging and warrant further
drilling. Following receipt of all assay results
a new drilling program will be
considered to extend the target and further
add to the exploration potential of Gwesan.
ASX-listed Stonehenge owns 100% of a
Korean company called Chong Ma Mines
which holds the rights to four uranium projects
in South Korea, including Gwesan and
Daejon. It hopes to play a role in satisfying the
country’s growing need for nuclear power.
Nuclear accounts for 31.4% of South
Korea's electricity generation needs and the
government wants this to increase to 48.5%
by 2024. The country has seven reactors under
construction, with plans to build six more,
bringing to 34 the number on stream by 2024.
At Daejon the JORC-compliant inferred resource
was prepared by Snowden and is derived
from three prospects – Chubu,
Yokwang and Kolnami. The inferred classification
reflects the lack of industry standard
QAQC data, reliance on historic data and the
current drill spacing. Snowden states it is
confident that an infill drill program with industry
standard sapling, assaying and QAQC
procedures and protocols, together with metallurgical
test work, will result in an upgrading
of the classification.
The increased resource is based on a combination
of new information including new detailed
geological mapping over much of the
deposit by the Korean Resource Corporation
(KORES) in 2009. KORES also completed
ground radiometric traverses at 50 metre spacings
along strike over much of the deposit.
Stonehenge has signed an agreement with
Kongju University in Korea to review drill core
from previous historical drilling by KORES.
The core is in excellent condition and the relogging
of this has greatly added to the overall
understanding of the structure, lithologies and
stratigraphy of Daejon mineralization.
Stonehenge is continuing metallurgical test
work, preparing for the pre-feasibility stage.
Korean funds for Canadian moly
SOUTH Korea’s largest specialty steel maker
SeAH Holdings Corp has forged a strategic
alliance with Canada’s Avanti Mining with the
aim of jointly developing the Kitsault Molybdenum
Project in British Columbia. SeAH
hopes to source molybdenum for its Korean
steel operations while Avanti will use funds
from SeAH to get the past producing mine
back in operation.
The alliance began with a private placement
by SeAH of Can$11 million into Avanti
in late December 2010, which gave the Korean
company a 10.7% stake in Avanti. The
funds are to be used to fund detailed design
engineering, environmental assessment and
permitting for Kitsault.
It was further advanced in late January
when both companies entered into a letter of
intent with respect to a potential acquisition
by SeAH of up to a 30% interest in the project.
The amount of investment needed to
earn the interest is being negotiated between
the parties based upon the valuation reflected
in Kitsault feasibility study announced on December
16, 2010. The transaction is subject
to any required regulatory approval, third
party consents, customary due diligence and
a definitive participation agreement.
SeAH is a public company listed on the Korean
stock exchange. It is the holding company
of SeAH Group, established in 2001 by
separating the SeAH Steel's investment sector
and is based in Seoul. SeAH has 18 domestic
and 13 overseas subsidiaries/operations with
business areas in special steel producing, pipe
manufacturing, IT and energy.
SeAH Besteel Corp, the largest subsidiary
of SeAH, is known as the number one special
steel maker in Korea and the company
mainly produces automotive parts and shipbuilding
parts for globally renowned automakers
and shipbuilders.
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Indonesia
INTERMET TURNS DOWN BAUXITE PROJECT OPTIONS
HILLGROVE Resources’ 84.5%-owned subsidiary
InterMet Resources has decided not
to accept the offer of assignment from Hillgrove
for two bauxite project options, Landak
and Tayan South, in West Kalimantan.
InterMet was last year granted the offer but
following extensive due diligence of the terms
of the options and the underlying tenements
has turned them down.
The tenements are either side of PT Antam’s
Munggu Pasir and Tayan bauxite deposits.
Munggu Pasir has a washed probable reserve
of 40 million tonnes @ 46.6% alumina and
Tayan has washed possible and probable reserves
of 30.9 million tonnes @ 47.5% alumina.
The InterMet due diligence process followed
preliminary exploration by Hillgrove. Results of
sampling undertaken within the Landak licence
area indicated the presence of widespread
gibbsitic bauxite in the southern portion
of the licence. Bauxite averages 3 metre in
thickness and is generally best developed as
a draped formation over gently undulating topography
within an 18sqkm area.
Hillgrove then shifted exploration to the
Tayan South licence area. Initial test pitting in
the southern area of Ngbung encountered
widespread bauxite averaging about 4 metres
in thickness, with maximum grades over 54%
alumina. InterMet is a uranium, copper, gold,
nickel and base metals exploration and development
company, with assets in the worldclass
mineral deposits area of the Gawler
Craton in South Australia and an impressive
exploration portfolio in northern Queensland.
Since September 2008, when Hillgrove acquired
a majority interest, considerable time
has been spent reviewing the extensive Inter-
Met portfolio with a view to reducing it to a
manageable size and defining any key projects
on which to focus exploration efforts.
This work saw a large reduction in tenement
holdings and two key focus areas identified
in the Mt Garnet area in Queensland and
Lake Gilles area in South Australia.
With the review completed the focus shifted
to field exploration once more with on-ground
exploration at Munderra in Queensland in late
2009. In June 2010 InterMet announced that
it planned to refocus its activities around bulk
commodities – bauxite, coal and iron ore in
Australia and Indonesia.
Hillgrove then offered InterMet options to
acquire a 70% share in five companies that
own nine exploration licenses over the Landak
and Tayan South bauxite projects covering
a total of 1400sqkm. The region is a
recognized bauxite province.
The bauxite tenements InterMet and Hillgrove have been examining are in West Kalimantan.
Robust attracts Romang partner
AFTER a 12 month search Robust Resources
has secured a strategic Indonesian partner
for its Romang Island project. PT Kilau Sumber
Perkasa (PT KSP), an affiliate of the Salim
Group, will acquire a 22.5% interest in Robust’s
Indonesian subsidiary PT Gemala Borneo
Utama (PT GBU) for Aus$30.7 million.
PT GBU is the local Indonesian entity that
owns the mining rights to the Romang Island
project and the new partnership with PT KSP
will fully satisfy the future statutory requirement
for local participation in project development.
In April 2010 Robust decided to acquire the
remaining 25% of PT GBU that it did not own
from the original vendors. Since then, and following
the progress the company has made
in advancing the project, directors have been
seeking a well-credentialed, strategic Indonesian
partner that has in-country experience,
government relationships and a track record
of developing greenfield projects into successful
operating companies.
The Salim Group is a highly regarded Indonesian
group with diversified business interests
including commodities, infrastructure
and logistics. As part of the transaction, a
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Indonesia
representative of the Salim Group will join the board of PT GBU.
Robust’s managing director Gary Lewis says, “As well as attracting
a strong partner, this transaction means that the consolidated group
will, on final settlement, have in excess
of $60 million in cash, which
gives us the necessary funding to
take the project through to the feasibility
and development phases.”
As Robust embarks on a 27,000
metre, $10 million exploration program
for 2011 it has purchased a
seventh diamond core drill rig. The
rig will be used at North Romang
where the company is targeting a
gold-rich copper porphyry system.
It is undertaking an IP-resistivity
survey to identify suitable drill targets.
Early feedback has been positive
with a number of anomalies
identified. The rig and six months of
supplies has arrived on site and upon receipt of the first phase of data,
drilling will begin immediately.
Robust has also strengthened its senior management team so it
has the right skills in place to support the next growth phase of its
projects. Gordon Lewis has been appointed chief operating officer
based in Jakarta while Warwick Browne has joined the company as
health, safety, environment and community (HSEC) manager.
Gordon Lewis is a qualified engineer and mine manager who has more
Sumatra Copper & Gold’s Tembang project is in central Sumatra.
than 30 years experience in mining and exploration. He has spent more
than 10 years working in Indonesia across a number of gold production
and exploration projects. Warwick Browne has more than 10 years’ experience
working in Asia assisting
in the development of HSEC plans.
Tembang production timetable set
FOLLOWING a successful resource
augmentation drill program,
Sumatra Copper & Gold is now focused
on bringing the Tembang
Gold and Silver Project in central
Sumatra into production by early
2013. An annual production rate of
70,000-80,000 ounces gold equivalent
over more than 10 years is
targeted with cash costs of around
US$500 per ounce.
Since early 2010 the company
has conducted an aggressive drilling
program at Tembang to test potential depth extensions of the known
resource - particularly at deeper limits of the known data where good
grades were evident. Drilling programs at the Belinau and Berenai deposits
targeting and encountering higher grade zones have resulted in
an overall more robust and higher grade resource of 23.54 million tonnes
@ 1.32 grams/tonne gold and 17.3 grams/tonne silver. This represents
a 39% increase in grade from the 2009 resource estimate by Snowden.
The Belinau deposit itself represents a potential underground resource
of 490,000 tonnes @ 8.24 grams/tonne gold and 71.8 grams/
tonne silver. Drilling in 2010/11 has added 99,700 ounces of gold and
746,400 ounces of silver at an average grade of 9.17 grams/tonne
gold and 68.7 grams/tonne silver.
The vein component is now 79% of the total resource mainly due to
the decrease in the halo resource. This better reflects the most important
style of mineralization in the deposit. The measured and indicated
categories have also increased from 47% of the total resource to 76%.
The inferred halo mineralization has been materially reduced to 12.18
million tonnes @ 0.54 grams/tonne gold and 7 grams/tonne silver due
to a more rigorous review of the geological model.
The company plans to complete pre-feasibility studies by mid-2011
so that a definitive feasibility study (DFS) can then be commissioned.
The considerable amount of previous pre-feasibility work already undertaken
by the company in 2008 and 2009 prior to its IPO, particularly
drilling, base line studies and metallurgical test work, will facilitate
this process. A definitive mining strategy is now being developed,
which may include a plan for mining the high grade Belinau lode partly
or wholly by underground means. Final mine planning will be undertaken
once the infill drilling and definitive resource modelling is completed
in mid-2011.
The current schedule is for the DFS to be completed by the end of
2011 and construction to begin, subject to permitting and financing,
in the second quarter of 2012.
Sumatra’s managing director Jocelyn Waller says the updated resource
estimates underpin the company’s decision to advance the
project into production. “We now have an overall higher grade resource
dominated by vein style mineralization, and certainly a robust
foundation on which to base the mine development. It’s now
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Indonesia
all systems go to take this through feasibility
into production.”
Joint venture arrangements have been finalized
between Sumatra and Newcrest Mining in
respect of PT Bengkulu Utara Gold and its
100,000 hectare exploration IUP for the Tandai
project in Bengkulu province, Sumatra. The
company has completed drilling and helicopter
agreements in preparation for a drilling program
which was scheduled to start by the end of
April. The first phase program of 4000 metres
is planned to test the Tandai Lode, Glumbuk
and Toko Rotan.
First drilling at Banda Raya
CENTURION Minerals will undertake a firstphase
drilling program on the Geudob
prospect at its Banda Raya Gold Project in
northern Sumatra. The drilling follows successful
initial surface geological and geochemical
surveys.
The Banda Raya property is adjacent to East
Asia Minerals’ Miwah gold project which hosts
a potential multi-million ounce gold discovery.
The geological and geochemical surveys
have delineated a 5km-radius gold-copper
prospect complex, which hosts high-sulphidation
epithermal gold, porphyry gold-copper, and
quartz vein-types of mineralization.
Analysis of rock-chip samples from the Geudob
prospect returned as high as 0.96 grams/
tonne gold with several oxidized, malachitebearing
samples grading up to 0.1% copper.
In addition, a suite of metalliferous samples
distributed over a 1km strike length contained
up to 0.46 grams/tonne gold and 0.1% copper,
and samples from a previously delineated
Construction of the exploration camp at the Leuping prospect of Centurion’s Banda Raya Gold project.
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Indonesia
prominent hill interpreted to be underlain by intrusions
assayed up to 1.3 grams/tonne gold
and 0.27% copper.
Assays of grab samples and boulders believed
to originate from the nearby mineralized
outcrops reported gold values up to 4.46
grams/tonne as well as copper values up to
1.38%. Centurion has also re-established the
location of a major vein system at the Keladi
prospect, on which a previous explorer reported
a vein having a strike length of at least
250 metres and section assays up to 15.35
grams/tonne gold, 986 grams/tonne silver,
3.35% copper, 14.2% lead and 15.6% zinc.
The setting of this vein is within a large circular
structure that Centurion has identified
as a primary exploration target. The high gold
and base-metal-bearing vein is considered
similar to quartz-sulphide veins typically developed
around the peripheries of large porphyry
copper-gold-molybdenum systems.
Centurion’s chairman Alfred Lenarciak says,
“Geological results have confirmed the existence
of a cluster of significant gold-copper
prospects outside the Miwah prospect area.
Multiple exploration camps have been established
and all field infrastructure is in place to
commence drilling phase exploration.”
The company has recently appointed
Thomas Dott as project manager to oversee
all exploration and drilling work on Banda
Raya. His career, which spans 16 years, has
been primarily spent on porphyry coppergold
and epithermal gold deposits including
those at Frieda, Porgera, and Tolukoma in
Papua New Guinea. Most recently he designed
and managed the drilling program of
porphyry copper-gold prospects for Centurion’s
neighbours, East Asia Minerals.
Koiti Mel has also been appointed chief geologist
and is responsible for leading field exploration
activities. His 17 years of experience
covers early exploration prospects to feasibility
stage activities on epithermal gold and porphyry
copper-gold projects, including Porgera.
Strong Bima trench results
TRENCHING and soil sampling at the Soro
prospect of Arc Exploration’s Bima project in
East Sumbawa has extended disseminated
gold mineralization and identified an extensive
gold/multi-element soil anomaly.
The company has received results from another
three trenches testing a strong gold soil
anomaly at the northern end of the Soro
Prospect. One of these trenches intersected
strongly silicified limestone and returned 59
metres @ 0.84 grams/tonne gold and 26 metres
@ 1.31 grams/tonne. This trench is about
80 metres south of another trench where a
recent result of 38 metres @ 2.88 grams/
tonne gold includes a high-grade zone of 2
metres @ 35.4 grams/tonne.
The broad zone of disseminated gold mineralization
hosted by silicified limestone
(jasperoid) in the northwest part of the Soro
prospect now extends for at least 180 metres
in a northeast direction. The mineralization is
open to the southwest and contained within
an extensive 3km x 2km gold/multi-element
soil anomaly that extends to the south.
Trenching at an Arc Exploration tenement
on Sumbawa.
These two broad intercepts are separated by
a narrow access track that was not trenched.
The other two trenches were weakly mineralized
in moderately silicified and fresh limestone.
Arc’s managing director John Carlile says,
“These results are very positive. The new
trench gold intercepts are significant because
they expand the area of potentially economic
gold mineralization that we have found so far
in the silicified limestone at the northern end of
the prospect and the mineralization is still open.
“The size and intensity of the surrounding
soil anomaly is also significant as it suggests
a very large zone of gold-bearing silicification
with potential to host a bulk tonnage gold resource
and high-grade feeder zones. So far,
only the northern part of the anomaly has
been tested by trenching and therefore the
potential to find more disseminated gold mineralization
is regarded as high.”
The Bima exploration tenement covers
250sqkm and has excellent infrastructure
with a network of sealed to graded roads traversing
almost all of the tenement area.
The company has three projects - Bima,
Trenggalek in East Java and a strategic alliance
with the Anglo American group in West
Papua, where exploration has recently resumed.
This exploration IUP covers about
1000sqkm and is in the same belt of rocks
that host the giant Grasberg mineral district.
The exploration is building on existing information
and includes regional reconnaissance
at a number of locations designed to identify
further targets for more detailed follow-up.
The alliance aims to begin drilling in the second
half of the year.
Way Linggo production halted
PRODUCTION of gold and silver at Kingsrose
Mining’s Way Linggo project in southern
Sumatra has been impacted by an enforced
shutdown of the ball mills owing to excessive
wear. The problem was expected to reduce
April production by around 50%.
During a scheduled inspection of both ball
mills at the beginning of April it was noted that
excessive wear to the liners warranted their
immediate replacement and the company decided
not to operate the plant and risk damage
to the mills until new liners could be fitted.
Further inspection of the mill bearings during
downtime revealed noticeable deterioration
and issues with the ball mill trunnion bearings
and lube system. Temporary repairs were carried
out enabling the mills to resume operating.
Unfortunately spares located on-site were
deemed insufficient and Kingsrose had to
bring in replacement mill liners and another
bearing. These were expected to be fitted
on or about April 18.
The company has since assessed the impact
of the incident and has taken measures to ensure
it has matters covered moving forward.
Kingsrose also has a scheduled shutdown
planned in June to commission and tie-in a
new SAG Mill and management forecasts
that production for the June quarter will now
be around 8000 ounces gold.
The company says the problems were disappointing
in light of the solid operational improvements
made over the past six months
and particularly after achieving a commendable
result in the March quarter with gold production
reaching 10,463 ounces and silver
production of 123,774 ounces with preliminary
cash cost estimates after silver credits
being around US$25 per ounce.
40 | ASIA Miner | March/April 2011

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Indonesia
The processing plant at Kingsrose Mining’s Way
Linggo project in southern Sumatra.
Way Linggo sits within a sixth generation
Contract of Work covering an area of
10,540 hectares and is held by Kingsrose's
85%-owned Indonesian subsidiary, PT
Natarang Mining. It covers highly prospective
tertiary volcanic stratigraphy that is host
to a number of significant gold and copper‐gold
deposits associated with a major
arc‐parallel fault, known regionally as the
Trans‐Sumatra Fault Zone.
Mine development on the Way Linggo
veins began in early 2009 and plant construction
began in July 2009. The process
plant began commissioning in August 2010
and the first official pour of gold and silver
dore occurred on August 13.
Panton Luas drilling under way
PROSPERITY Resources has started its first
drilling program at the Panton Luas
prospect of its Aceh Project in Indonesia.
Previous trenching at Panton Luas recorded
results including 15 metres @ 6.71 grams/
tonne gold, 6 metres @ 2.7 grams/tonne
and 15 metres @ 3.10 grams/tonne.
Panton Luas is one of a number of targets
at the Aceh Project with two rigs undertaking
the drilling. An ongoing drilling program
is anticipated on the basis of successful results
from this initial program.
Preparation of drill sites and access to the
Mutiara and Pelumat prospects continues with
drilling expected to start as soon as possible.
Prosperity controls a 410sqkm contiguous
tenement position along a 60km structural
corridor to the west of the Sumatra Fault
considered highly prospective for gold/copper
mineralization. A helicopter-borne magnetic
survey completed in the latter part of
last year identified several potential porphyry
centres and high grade skarn occurrences.
The company has recently received the
results of the second part of the 3D inversion
modelling from the 2010 helimag survey
flown within the project. The results
cover the eastern belt of magnetic anomalies
and highlight six additional potential
copper/gold porphyry targets. The data
from most of the eastern area was flown at
200 metre line spacing.
Assessment of the new targets - NE Panton
Luas, Samadua East, Serotan, Damar
Buwi, Mersak East and Payabu - has
started with follow up reconnaissance geology
and sampling.
This second part of 3D inversion modelled
data was undertaken to assist in interpretation
of the magnetic survey and to focus
field geological reconnaissance mapping
and sampling activities. The integration of
the magnetic and field data has aided both
geological and magnetic interpretation and
refined the understanding of mineralisation
controls and its setting.
There is a commonality in geological style
in the eastern and western belts. There is
evidence of magnetite-rich intrusives with
significant vertical persistence which are
considered likely to be related to significant
altered and mineralised basic to intermediate
composition intrusives.
March/April 2011 | ASIA Miner | 41

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Indonesia
PAID ADVERTISEMENT
G-RESOURCES TO ‘ROCK AND RULE’ WITH MARTABE
Earthworks are under way at Martabe.
An aerial view of work at the project.
G-RESOURCES is ready to ‘rock and rule’
at the Martabe Gold-Silver Project in North
Sumatra, according to the company’s vice
chairman Owen Hegarty. Development work
is progressing full steam ahead with first
production by the end of 2011, making
Martabe the first major new mining project
in Indonesia for 10 years.
There are more than 1200 people on site
as the company gears up for mining and
production, while ongoing near-mine exploration
is certain to add to the resource inventory
of 6.5 million ounces of gold and 66
million ounces of silver.
Owen Hegarty says G-Resources has a
simple strategy to grow a decent scale,
Asian-based and focused gold company
with Martabe as the key, central, quality,
starter asset. “Most great resource companies,
such as BHP, Rio Tinto and Newmont,
started with a single quality asset. Our asset
is outstanding with all the features needed
to be successful - scale, good grade, good
metallurgy, simple processing, lots of upside
and long life - all in a very stable and secure
domain. With these features you can grow
a quality, long-term business.
“We have the starter with strong potential
to expand and this gives us a firm footing to
look at a suite of other opportunities throughout
the Asia Pacific region.
“The region is under-explored and even unexplored,
it’s mining friendly and there’s great
prospectivity. From our perspective we know
the people, the places, the projects, the
rocks, the rules and regulations – so we are
ready to ‘rock and rule’.
“It’s great timing to do what we are doing
and we have a very clear focus on building
Martabe using the key principles of time,
quality, budget and safety.”
G-Resources is listed in Hong Kong,
which Owen Hegarty says provides great
access to capital in that part of the world.
“As well as good institutional support from
western sources like Blackrock and JP Morgan,
it connects us to local business people,
Chinese institutions and high net worth
individuals. Hong Kong is growing in importance
in mining and exploration. It’s not a
mature market in terms of mining, ratings,
understanding and the like, but provides
better access to capital.”
Gold the ‘perfect metal’
The current strength of gold and attractiveness
of Indonesia as a mining destination also
contribute to G-Resources’ upbeat outlook.
“Gold is the perfect metal with many things
going for it,” Owen Hegarty says. “It’s a commodity,
currency, store of value, safe haven,
hedge against inflation, hedge against geopolitical
uncertainty and against financial uncertainty.
It is in strong physical demand,
whether in watches, jewellery or electronics
and has strong metaphysical demand in
terms of the reasons to own it as a currency.
“The supply side is under pressure with new
mine supply falling. Because there hasn’t been
much exploration success in the past 10 years
for large deposits, supply will keep falling for
another 10 years. If you examine demand and
supply factors, it is a commodity under tension,
which means it behaves in a volatile way. We
think gold is trending north-easterly with volatility
and will spike through $1500 very shortly,
then through $2000 in the next year or two.”
On Indonesia, he says 10 years ago with the
Bre-X scandal and Asian financial crisis it was
a difficult place to operate. “It went through a
number of presidents, had economic instability,
falling currency and the investment community
at domestic and international levels
had lost confidence. Since then it has seen
significant improvement as stability has returned,
along with economic growth and capital
market development. It is a new BRIC
nation with a big population, plenty of resources
and new mining legislation.
“CEO Peter Albert and I have been associated
with Martabe for five years. We are not
only very familiar with the asset but also all
stakeholders and have established relationships
with governments at national, regional
and local levels as well as with communities.
It is very important in Indonesia to have good
relationships, particularly at district and community
levels. They cannot be established
overnight, you have to work at them over
time, there’s give and take, there’s building of
confidence and trust, and you must work together
to achieve common objectives.
“Most communities want the same thing –
jobs, training, education and facilities for themselves,
their children and grandchildren. The
mining industry has wonderful opportunities to
provide for remote and disadvantaged com-
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PAID ADVERTISEMENT
Indonesia
munities. There’s not a day goes by when we
don’t think of how we operate with our social
licence because without that we are nothing.”
A ‘grandfathered’ project
Peter Albert says the Martabe contract operates
under a sixth generation Contract of
Works “which makes it grandfathered under
the Indonesian mining
law”. He says
the development of
Martabe will be a
positive signal for
the district, region
and country as a
whole. “We have
very good people,
strong Indonesian
management as
First concrete is poured at Martabe by contractors
PT Duta Graha Indha and PT Leighton Indonesia.
well as experienced
international mining
people, who have
all worked extremely
hard to get Martabe
close to the point of production.
“The capital city of North Sumatera and
third largest city in Indonesia is Medan, and
there is easy access with short-hop flights to
Medan from Kuala Lumpur or Singapore, or
from Jakarta, which is less than two hours
away. From Medan it is an hour flight to the
west coast and port town of Sibolga.
Martabe is about a 40 minute drive from Sibolga
along the Trans-Sumatran Highway.
Most large equipment is brought to site
through this port. A coal-fired power station
has recently been built at Sibolga supplying
to the grid and we will take power from the
grid which is only 3km from the mine site.”
Mining has been around for decades in Indonesia,
Peter Albert says, so there is a real
depth of capability with professionals covering
the full range of mining technical and
commercial disciplines. “Martabe is a shortening
of a three-word name in the local dialect
which means ‘come back home and
help build your village’. Many people from the
area have become senior identities in the Indonesian
mining industry, including Arif Siregar,
an ex-president of the Indonesian Mining
Association who formally gives us advice and
whose family still live in the local village.
Communication and consultation with the
local community is fundamental to our success
and we seek every avenue to enhance our capability
in this area and to increase the knowledge
and understanding of the local community.
The Martabe CoW covers 1639sqkm of a
highly mineralized area close to the Sumatran
fault. “We have done exploration work
throughout the CoW but most has centred on
30sqkm, which is the Martabe project area.
Within this area are six deposits and one of
these, Purnama or Pit 1, is what we are building
the project
around. In the six
deposits we have
about 6.5 million
ounces of gold resources
and 66
million ounces of
silver resources
with a gold equivalent
reserve of 3.3
million ounces,
most of which is at
Purnama. At the
other deposits and
prospects - Barani,
Ramba Joring, Uluala
Hulu, Tor Uluala and Horas - we are continuing
exploration and building up resources.
“Purnama is close to the surface, has very
low strip ratio of about 1.3:1, good grade of
about 2.1 grams/tonne gold and with silver
credits increases to the equivalent of about
2.6 grams/tonne. The deposit is open in most
directions and has good sulphide potential at
depth. It is a great starting point and with
about 2.4 million ounces of reserves, makes
it a world-class gold deposit in its own right.
Construction work is progressing at Martabe with first production
expected by the end of the year.
“Annual design capacity of the plant is 4.5
million tonnes and recovery is close to 80% for
an output of 250,000 ounces per annum. Annual
silver production will be 2-3 million ounces
and with current prices at around $40 an
ounce, it makes the project even more robust.
“All fundamentals are in place for us to be a
very low cost producer, at well below $300
an ounce. It will cost $100-120 million to put
the team on the field producing gold and silver,
and when you tally up the figures it’s
going to be very robust. When you plot us on
the cash cost curve, we’re not just bottom
quarter, we’re almost bottom decile.
“We have more than 1200 people on site
with key contractors being PT Ausenco, PT
Leighton Indonesia and PT Duta Graha
Indha. Ausenco is doing engineering and procurement,
and will project manage plant construction.
They are close to 95% complete
with engineering and procurement, and are
now mobilizing to site. All of the major equipment
is purchased and much is in warehouses
and workshops waiting for us to
press the button and have it delivered to site.
“The earthworks construction is being
done by Leighton and Duta Graha Indha,
who have been on the ground at Martabe
for six months, working on the tailings dam,
roads and process plant. Concrete pours
started on March 17. There is a lot of Indonesian
content with the contractors, subcontractors
and suppliers.”
Peter Albert says the near-mine future is
very bright. “We have about 225,000 ounces
of reserves at Barani, a reserve statement is
due shortly for Ramba Joring and there are
many more resource ounces at these and
other deposits as well as a new resource
likely at the new
Horas deposit.
“Within our designs
we’ve allowed
for expansion in annual
capacity from
4.5 million tonnes to
6.6 million and after
that it’s the sulphide
opportunities which
are largely untested.
The near-mine opportunities
have potential
to nearly
double the current
mine life of nine years
and then there is the
rest of the CoW. We have an annual exploration
budget of around $15 million with
two-thirds for the near-mine work and the
rest for regional work.”
May/June 2011 | ASIA Miner | 43

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China
CHINA’S GROWTH PATH STREWN WITH GOLD
BY JOHN MILLER, ASIA MINER EDITOR
CHINA is the dominant force in global gold
production and is playing an increasingly important
role in gold markets as the standard
of living of its 1 billion-plus residents improves
and its economy strengthens.
The future for gold mining in China is huge,
according to Majestic Gold’s president Rod
Husband. “China has gone from number six
producer in the world in 2003 to number one.
South Africa has gone down in terms of production
and China has gone up to more than
10 million ounces a year.”
Majestic is one of a handful of foreign companies
that have remained in China through
the thick and thin of economic booms and
the global financial crisis and is about to reap
the benefits by becoming a large-scale producer
at its Songjiagou project.
Rod Husband told The ASIA Miner that
China has a very high affinity for gold and the
government buys every ounce that’s sold
through the Shanghai Metals Exchange. “Individuals
in China who want gold have to find
other ways to buy it.
“I don’t know what their long-term foreign
exchange strategy is but it seems they are
happy to convert their US dollars to gold and
potentially go to a gold standard. If that is the
case then the gold industry will be in a great
position for years.
“About 10 years ago China opened up the
doors to bring in western exploration expertise,
which helped them change their mining
industry with a lot of resources defined. Some
foreign companies had success and became
miners, like Silvercorp and Eldorado with Majestic
about to do the same, but when the
downturn came many others sold the resources
back to China which is now pushing
them into production.
“This expertise enabled China to increase
production which, together with the economic
boom the country has experienced, means
China has a growing surplus of cash and is
able to take back more control of exploration.”
Majestic came to China in 2003 and was
one of the earliest foreign companies to test
the waters. Today there are not many foreign
companies operating in China. Rod Husband
says in 2005 it was something like 200 but
now there are only about 25. While many Chinese
companies are more proficient at all aspects
of exploration and mining, the global
downturn also took its toll on many foreign
companies in China.
He says with the way deals are structured
in China with joint venture companies having
to contribute capital, the downturn meant
many had difficulty meeting commitments
with the result that the government or Chinese
partners bought back the projects, and
did so at fair value.
“They recognized the work that had been
done and paid fair price. We did that with our
Sawayaerdun project which was fairly remote
and logistically challenging for us. It had huge
potential and we had spent about $8 million
through our joint venture but the government
came and bought it back for $9 million. We
needed that money to focus on Songjiagou
so it was a good deal for everyone.”
The Chinese need resources to feed their
growth and while they are doing much to lift
domestic exploration and production, they
are also looking to overseas sources.
“They want the metal and will get it one way
or another,” Rod Husband says. “Now they
have to buy concentrate at higher prices but
what they want to do is go down the food
chain and add value. With copper the average
global cost for production is $1.50-$1.75
a pound. You can buy copper for $4.30 a
pound or if you mine it you can produce it and
sell the concentrate for $2 a pound and the
value adding goes to the smelter. What China
is looking at is producing from the basic level
in which case the cost of that pound of copper
becomes 50 or 60 cents and the value
gets added in China.
“China is buying up resources around the
world – they are buying juniors in Australia, buying
projects in Africa and investing in Canadian
companies. They went after the big companies
first but did not succeed. They are still interested
in them but have realized it is politically difficult
so now they are buying the future of those big
companies – the juniors. The big companies
currently sustain through acquisitions, buying
junior companies and their resources, thus
maintaining their resource bases. So, China is
now buying many juniors and projects, depriving
big companies of their future resources.”
Rod Husband says China’s influence on the
global gold industry will continue to increase.
“Just look at per capita consumption and
how that has changed. When Majestic entered
China the nation’s annual per capita
gold consumption was just under 0.2 grams,
the world average was about 0.6 and western
countries consumed 0.8. Now China is
up to 0.25 or 0.26 grams and is catching up
to the west. India has a higher affinity than the
west at 1 gram and that’s where we expect
China to get to. If China just gets to the 0.6
gram mark, that’s a 25% increase in consumption,
or 10 million ounces, which is how
much China now produces.
“So what’s going to happen to gold prices
and gold demand There’s no question it’s
going up and up. It is considered by many as
a currency now and all major funds are trading
gold like they trade Dollar-Euro or Dollar-Yen.
There’s probably going to be a lot of pressure
for it to get there, but in terms of demand I can
easily see it going to $3000,” he added.
中 国 发 展 之 路 铺 满 黄 金
中 国 市 场 是 全 球 黄 金 市 场 的 主 导 力 量 , 随 着
超 过 十 亿 人 口 的 生 活 水 平 不 断 提 高 以 及 经 济
发 展 不 断 增 强 , 中 国 因 素 正 在 全 球 黄 金 市 场
中 发 挥 着 日 益 重 要 的 作 用 。
根 据 Majestic 金 矿 公 司 总 裁 Rod Husband
的 观 点 , 在 中 国 进 行 金 矿 开 发 的 前 景 十 分 广
大 。“ 中 国 的 黄 金 产 量 从 2003 年 全 球 第 六 升
至 现 在 的 第 一 位 。 南 非 的 产 量 正 在 递 减 而 中
国 年 产 量 已 经 超 过 一 千 万 盎 司 。”
Majestic 金 矿 公 司 是 屈 指 可 数 的 几 个 历 经
经 济 繁 荣 时 期 和 全 球 金 融 危 机 的 跌 宕 起 伏 后
仍 留 守 在 中 国 的 外 国 公 司 之 一 , 旗 下 的 宋 家
沟 项 目 就 要 开 始 大 规 模 生 产 , 公 司 即 将 收 获
硕 果 。
Rod Husband 告 诉 《 亚 洲 矿 业 》 杂 志 , 中
国 人 喜 爱 黄 金 , 而 政 府 几 乎 买 光 了 所 有 在 上
海 金 属 交 易 所 出 售 的 黄 金 ,“ 中 国 想 买 黄 金
的 个 人 只 能 寻 找 其 他 途 径 购 买 。”
“ 我 不 清 楚 中 国 的 长 期 外 汇 战 略 将 是 什
么 , 但 他 们 似 乎 乐 于 将 美 元 转 换 成 金 条 , 并
且 有 可 能 走 向 金 本 位 制 。 如 果 是 这 样 的 话 那
黄 金 行 业 将 在 未 来 多 年 内 处 于 极 佳 地 位 。”
“ 大 约 十 年 前 中 国 采 取 开 放 政 策 , 引 进 西
方 勘 探 专 业 技 术 , 大 大 改 变 了 中 国 的 矿 业 局
面 , 确 定 了 许 多 资 源 。” 一 些 外 国 公 司 取 得
了 成 功 , 成 为 采 矿 公 司 , 比 如 希 尔 威 矿 业 和
44 | ASIA Miner | May/June 2011

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China
埃 尔 拉 多 黄 金 公 司 ,Majestic 公 司 也 是 如
此 。 但 是 当 行 业 不 景 气 时 , 许 多 外 国 公 司 将
项 目 卖 回 给 中 国 , 而 中 国 现 在 正 在 使 这 些 项
目 尽 快 生 产 。
“ 这 些 专 业 技 术 帮 助 了 中 国 提 高 黄 金 产
量 , 再 加 上 这 个 国 家 正 在 经 历 的 经 济 蓬 勃 发
展 , 意 味 着 中 国 有 着 日 益 增 长 的 富 余 现 金 流
收 回 对 资 源 勘 探 的 控 制 权 。”
Majestic 金 矿 公 司 于 2003 年 来 到 中 国 , 是
第 一 批 试 水 的 先 行 者 。 现 在 在 中 国 也 没 有 太
多 处 于 运 营 阶 段 的 外 国 公 司 。Rod Husband
说 2005 年 的 时 候 大 概 有 200 家 , 而 今 只 剩 下
25 家 。 众 多 中 国 企 业 无 论 在 勘 探 还 是 开 采
方 面 都 更 加 精 通 了 , 而 世 界 经 济 衰 退 对 许 多
在 中 国 的 外 国 公 司 打 击 颇 大 。
他 说 这 与 国 内 许 多 项 目 合 作 结 构 有 关 , 一
般 来 说 合 资 公 司 需 要 贡 献 资 本 金 , 而 经 济 危
机 使 得 他 们 难 以 满 足 合 作 时 做 出 的 承 诺 , 结
果 自 然 是 中 国 政 府 或 中 方 合 作 方 以 公 平 的 价
格 将 项 目 赎 回 。
“ 他 们 认 可 前 期 已 投 入 的 工 作 量 所 以 支 付
了 合 理 价 格 。 我 们 的 萨 瓦 亚 尔 顿 就 是 这 样
的 , 这 个 项 目 地 处 偏 远 , 对 我 们 而 言 在 运 输
方 便 是 一 个 挑 战 。 项 目 潜 力 巨 大 , 我 们 在 合
资 公 司 投 入 了 800 万 美 金 , 政 府 回 购 的 价 格
则 是 900 万 美 金 。 我 们 也 需 要 这 笔 钱 投 入 到
宋 家 沟 项 目 , 这 对 合 作 各 方 都 是 一 笔 不 错 的
交 易 。”
中 国 需 要 资 源 来 满 足 经 济 增 长 , 他 们 正 努
力 提 升 国 内 勘 探 和 开 发 , 同 时 也 在 寻 找 海 外
资 源 。
“ 中 国 需 要 金 属 , 他 们 将 以 这 样 或 那 样 的
方 式 获 得 ,” Rod Husband 说 。 “ 现 在 他 们
不 得 不 购 买 价 格 较 高 的 精 矿 , 但 他 们 真 正 想
做 是 深 入 食 物 链 下 游 以 获 取 增 加 值 。 铜 的 全
球 平 均 生 产 成 本 为 1.50 - 1.75 美 元 / 磅 。 你 可
以 以 每 磅 4.30 美 元 的 价 格 购 买 铜 , 或 是 自 己
开 矿 然 后 生 产 并 以 2 美 元 / 磅 的 价 格 出 售 铜 精
矿 , 从 而 铜 冶 炼 厂 获 得 这 部 分 的 附 加 值 。 中
国 正 在 寻 求 的 是 基 本 层 面 上 的 生 产 , 在 这 种
情 况 下 , 每 磅 铜 的 成 本 是 50 或 60 美 分 , 增
加 的 附 加 值 由 中 国 获 得 。
“ 中 国 是 在 世 界 范 围 内 到 处 购 买 资 源 - 他 们
在 澳 大 利 亚 收 购 小 型 公 司 , 在 非 洲 买 项 目 ,
在 加 拿 大 进 行 股 权 投 资 。 他 们 的 首 要 追 逐 目
标 是 那 些 大 型 矿 业 公 司 , 但 没 有 成 功 。 但 他
们 仍 然 感 兴 趣 , 但 意 识 到 这 样 的 方 式 具 有 政
治 困 难 , 所 以 现 在 他 们 购 买 了 未 来 可 能 成 为
大 公 司 的 潜 力 股 —— 小 型 公 司 。 大 公 司 一 般
通 过 收 购 ( 购 买 小 型 公 司 和 其 资 源 ) 来 维 持
他 们 的 资 源 储 备 。 所 以 , 中 国 现 在 正 是 购 买
许 多 小 型 公 司 和 项 目 , 拿 走 了 大 公 司 未 来 的
资 源 来 源 。”
他 还 说 中 国 对 全 球 黄 金 行 业 的 影 响 还 将 继
续 增 强 。“ 只 消 看 一 眼 人 均 消 费 量 以 及 这 个
数 字 是 如 何 改 变 的 。 当 公 司 刚 进 入 中 国 时 那
时 人 均 黄 金 消 费 量 略 低 于 0.2 克 , 那 时 世 界
平 均 水 平 约 为 0.6 克 , 西 方 国 家 为 0.8 克 。 现
在 中 国 人 均 消 费 量 高 达 0.25 甚 至 0.26 克 , 正
在 追 赶 西 方 。 印 度 人 比 西 方 更 热 衷 于 对 金 子
的 消 费 , 人 均 消 费 量 高 达 1 克 , 这 正 是 我 们
预 计 中 国 将 达 到 的 水 平 。 如 果 中 国 的 人 均 消
费 量 停 留 在 0.6 克 大 关 , 也 就 是 说 消 费 增 长
25%, 折 合 10 万 盎 司 金 , 这 是 数 字 正 好 与
中 国 的 现 有 产 量 持 平 。
“ 所 以 说 黄 金 价 格 和 黄 金 的 需 求 将 何 去 何
从 呢 毫 无 疑 问 , 将 逐 步 攀 升 。 许 多 人 都 认
为 金 子 是 一 种 货 币 , 所 有 的 大 型 基 金 都 在 像
交 易 美 元 对 欧 元 或 美 元 对 日 元 一 样 进 行 黄 金
交 易 。 可 能 在 上 升 过 程 中 要 遭 遇 很 多 压 力 ,
但 从 需 求 角 度 出 发 , 我 觉 得 3000 美 元 每 盎
司 不 难 达 到 ,” 他 补 充 说 。
A Majestic transformation
MAJESTIC Gold is transforming from explorer
and very small-scale producer into a largescale
production company through ongoing
development of the Songjiagou Gold Project
in Shandong province.
The company is processing 1400 tonnes
each day through the existing Songjiagou
plant but is in the final stages of constructing
a new mill with daily capacity of 6000 tonnes.
It expects to begin throughput at the new mill
during May, which will bring daily processing
at Songjiagou to 7400 tonnes.
Majestic’s president and CEO Rod Husband
says the company is ramping up mining activity
to feed the new mill with material being
stockpiled at the mill ready for processing.
He says based on a recent preliminary assessment
report prepared by Wardrop, a Tetra
Tech company, Majestic will be able to produce
around 105,000 ounces annually for the
next 22 years, however, the company is considering
additional capacity expansion in the
next few years as 22 years is a lengthy mine
life and it should be more like 10-15 years.
“We are also focused on completing a detailed
five year mine plan and then implementing
it so we have proper grade control. At
present we just dig the dirt and run it through
the mill but once we have a proper plan and
grade control we expect to be able to lift production
substantially, up to 250,000 ounces.”
The Wardrop report also recommends two
phases of exploration designed to upgrade
and expand the resource with the first
phase focusing on increasing the level of
confidence in the shallower portion of the
resource and the second focusing on
deeper mineralization as well as additional
resources at depth and along strike.
Rod Husband says, “It’s an exciting time as
we are just months away from transforming
to a full-on production company and it’s really
largely because we are in China. You can’t do
that in North America – you have to wait for
engineering reports, obtain the capex and
then build the mill.
New processing facilities under construction at Majestic Gold’s Songjiagou project in Shandong province.
May/June 2011 | ASIA Miner | 45

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China
“ 我 们 的 合 作 伙 伴 , 即 公 司 的 大 股 东 , 为
项 目 建 设 提 供 了 资 金 , 他 清 楚 地 知 道 那 里 有
什 么 。 他 曾 经 在 此 进 行 了 长 达 七 年 的 小 规 模
开 采 , 所 以 只 是 一 个 认 识 到 项 目 规 模 效 益 后
进 行 扩 产 的 问 题 。”
他 还 说 Majestic 金 矿 公 司 还 在 评 估 其 他 几
个 中 国 的 项 目 。“ 其 中 一 个 是 位 于 中 国 南 方
的 小 型 露 天 开 采 矿 , 采 用 氰 化 物 浸 出 工 艺 。
正 在 进 行 尽 职 调 查 , 我 们 认 为 它 可 能 含 有
50 万 到 100 万 盎 司 的 金 。”
“ 通 过 这 个 项 目 我 们 将 获 得 事 业 拓 展 所 必
要 的 现 金 流 , 正 如 大 家 所 知 , 在 中 国 有 着 巨
大 的 机 会 。 我 们 面 临 的 地 质 风 险 较 低 , 因 为
介 入 的 是 未 经 充 分 勘 探 的 已 有 矿 山 , 你 所 需
要 做 的 仅 仅 是 将 资 源 钻 探 出 来 , 并 重 新 设 计
开 采 方 案 。”
Rod Husband 说 公 司 同 时 在 考 虑 将 在 中 国
国 内 的 这 部 分 资 产 拿 出 来 在 香 港 上 市 。“ 香
港 平 台 上 的 亚 洲 投 资 者 对 外 国 公 司 具 有 更 开
放 的 态 度 。 上 市 的 成 本 很 高 , 要 求 项 目 至 少
值 一 亿 港 元 以 上 才 划 算 , 我 们 希 望 能 到 达 那
个 阶 段 。”
The Mei Feng Coal Project of China Coal Corporation in Xinjiang province.
“Our partner, the company’s biggest
shareholder, has funded construction as we
progressed because he knows what’s there.
He’s been mining it for seven years on a
small scale and it’s just a matter of recognizing
the economies of scale and making
the operation bigger.”
He says Majestic is evaluating a couple of
other projects in China. “One of them is a
small open pit, cyanide leach operation in
southern China. We are doing due diligence
and think it has the potential to hold between
500,000 and 1 million ounces.
“We will have the cashflow to expand organically
from here and, as everyone knows, there
are tremendous opportunities in China. The
geological risk is low because you do deals on
existing mines that haven’t been explored
properly, so all you have to do is drill out the
resource then redesign the way to mine it.”
Rod Husband says Majestic is also considering
listing Chinese assets on the Hong
Kong exchange. “It seems Asian investors
through Hong Kong have a much more open
attitude towards foreign companies. It’s expensive
to list so you need projects worth at
least $100 million to make it worthwhile and
we are hopeful of getting to that stage.”
Majestic 公 司 的 重 大 角 色 转 换
随 着 山 东 省 宋 家 沟 金 矿 项 目 的 不 断 推 进 ,
Majestic 金 矿 公 司 正 在 从 勘 探 和 小 规 模 生 产
商 转 型 为 大 规 模 生 产 商 。
现 阶 段 该 公 司 的 宋 家 沟 选 厂 日 处 理 量 为
1400 吨 , 正 在 建 设 中 的 规 划 日 处 理 量 6000
吨 的 新 选 厂 已 处 在 收 尾 阶 段 。 预 计 这 一 新
选 厂 将 在 5 月 份 投 产 , 由 此 宋 家 沟 项 目 的 日
处 理 量 将 达 到 7400 吨 。
Majestic 金 矿 公 司 总 裁 长 兼 首 席 执 行 官 Rod
Husband 说 正 在 进 行 矿 山 扩 产 以 满 足 选 厂
的 处 理 量 。 物 料 正 被 堆 积 在 选 厂 准 备 下 一
步 处 理 。
据 他 介 绍 , 根 据 一 份 由 Wardrop 公 司 (
Tetra Tech) 完 成 的 最 新 初 步 评 估 报 告 ,Majestic
金 矿 公 司 将 在 今 后 的 22 年 内 年 产 金
10.5 万 盎 司 , 但 公 司 正 在 考 虑 在 数 年 内 进 一
步 扩 产 ,22 年 的 矿 山 寿 命 相 对 较 长 , 应 该
在 10 至 15 年 之 间 。
“ 我 们 还 在 集 中 精 力 完 成 一 份 详 细 的 五 年
采 矿 计 划 然 后 实 施 , 从 而 做 好 合 适 的 品 位 控
制 。 目 前 我 们 还 只 是 进 行 简 单 的 开 采 然 后 输
送 到 选 厂 , 一 旦 有 了 合 适 的 开 采 计 划 和 品 位
控 制 , 我 们 期 待 将 产 量 大 幅 提 升 到 可 能 高 达
25 万 盎 司 。”
Wardrop 公 司 的 评 估 报 告 建 议 进 行 再 做 两
个 阶 段 的 勘 探 以 提 升 和 扩 大 资 源 量 , 第 一 阶
段 重 点 提 高 浅 部 资 源 的 可 信 度 , 第 二 阶 段 重
点 关 注 深 部 成 矿 以 及 深 部 和 沿 走 向 延 伸 的 更
多 资 源 。
Rod Husband 说 :“ 我 们 离 成 为 一 个 完 全 的
生 产 商 仅 有 几 个 月 的 距 离 , 这 真 是 让 人 激
动 , 这 大 部 分 得 益 于 项 目 是 在 中 国 。 这 要 是
在 北 美 完 全 行 不 通 —— 要 等 设 计 报 告 , 获 得
基 建 成 本 然 后 才 能 建 设 选 厂 。”
Report confirms Mei Feng potential
AN independent report commissioned by
China Coal Corporation in relation to its proposed
acquisition of the Mei Feng Coal Project
in Xinjiang province states that Mei Feng
represents a mineable underground deposit
and orderly extraction of the reserve should
proceed as planned.
The NI 43-101 Technical Report prepared
by Norwest Corp indicates that there is a resource
on the property worthy of current mining
operations, additional exploration and
further development.
The current mine owners have secured all
leases and permits for mining, so the report
states that only maintenance of these is required
in the future. It indicates estimates of required
capital, manpower and equipment for
the surface mine operations are reasonable,
and that projected tonnages are reasonable
based on the reserves associated with the
mine. There are measured and indicated resources
of 18.138 million tonnes and inferred
resources of 892,120 tonnes with potential to
add to this through further exploration. As at
December 16, 2010, the reserve total was
7.692 million tonnes from nine seams. Reserves
are reported on a clean basis rather than a runof-mine
basis because ROM coal is not sold as
a product but further processed to produce a
saleable product suitable for the local market.
China Coal’s chief financial officer Mark
Roth told The ASIA Miner that after listing on
the TSX Venture Exchange in May 2010,
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China
China Coal’s Chinese subsidiary signed an
agreement to acquire 60% of the operating
Mei Feng mine for about 150 million RMB.
He says China Coal then engaged Norwest
to prepare the report and in January this year
formed a Technical Advisory Board to review
operations and acquisitions, and recommend
on safety and expansion projects.
“Construction of an underground mine was
completed last year and a mandatory sixmonth
productivity and safety testing phase
was completed in the third quarter. Mine construction
consists of 6000 metres of tunnels
and initial production from the B3 and B8 metallurgical
coal seams began last September.
“At present annual production is about
300,000 tonnes and China Coal intends to increase
this to 900,000 tonnes.”
Mark Roth says there are two coking plants
within 50km of the mine that require 2.7 million
tonnes of coking coal each year while there are
also three large power plants within 95km that
annually require 6.9 million tonnes of thermal
coal, ensuring strong demand for the coking
and thermal coal found at Mei Feng.
The technical report indicates that the
basic coal quality testing parameters are the
same using either the Chinese standards or
ASTM procedures. It also indicates the B8
seam is uniform with relatively complex
structure but mineable in the whole area,
has a true thickness from 1.04 to 5.33 metres
with an average of 3.06 and continuity
is stable. The B3 seam is relatively uniform
throughout with simple structure, true thickness
is 1.80 to 5.39 metres with an average
thickness of 3.71 metres and continuity is
relatively stable.
Norwest’s visit to the mine verified that
safety equipment had been installed as recommended
in the feasibility study.
China Coal is focused on acquisition of
existing producing, or formerly producing,
coal mines, properties and related assets in
China. As well as acquiring Mei Feng, the
company is undertaking due diligence on
another two mines being considered as acquisition
targets.
The company’s five year objective is annual
production of 5 million tonnes and Mei
Fung will eventually represent almost 20%
of this goal.
报 告 肯 定 美 丰 煤 矿 的 潜 力
中 国 煤 炭 集 团 有 限 公 司 (China Coal Corporation)
委 托 进 行 的 一 份 关 于 新 疆 美 丰 煤 矿
项 目 收 购 的 独 立 报 告 指 出 , 美 丰 煤 矿 是 一 个
可 开 采 的 地 下 矿 床 , 应 按 照 原 定 计 划 有 序 地
进 行 开 采 。
Norwest 公 司 出 具 的 NI 43-101 技 术 报 告 表
明 , 该 矿 的 资 源 值 得 进 行 目 前 的 采 矿 作 业 ,
并 且 值 得 进 行 补 充 勘 探 和 进 一 步 开 发 。
目 前 项 目 业 主 已 获 得 所 有 的 采 矿 租 约 和 许
可 证 , 因 此 报 告 指 出 , 未 来 只 需 要 对 矿 山 设
施 进 行 基 本 的 维 护 保 养 。 报 告 认 为 地 表 开 采
所 需 的 资 金 、 人 力 投 入 和 设 备 配 置 是 合 理
的 , 且 基 于 矿 山 储 量 得 出 的 项 目 矿 石 量 也 是
合 理 的 。
探 明 和 控 制 级 别 资 源 量 是 1813.80 万 吨 ,
推 断 级 别 资 源 量 89.2120 万 吨 , 且 有 进 一 步
通 过 勘 探 工 作 提 升 的 潜 力 。 截 至 2010 年 12
月 16 日 , 九 个 煤 层 的 总 储 量 是 769.2 万 吨 。
且 储 量 估 算 是 按 净 煤 计 算 的 , 而 非 毛 煤 量 ,
因 为 毛 煤 将 不 会 被 直 接 出 售 , 而 是 要 进 一 步
加 工 出 适 合 当 地 市 场 的 可 销 售 产 品 。
中 国 煤 炭 集 团 有 限 公 司 的 首 席 财 务 官 Mark
Roth 告 诉 《 亚 洲 矿 业 》 杂 志 , 公 司 2010 年
5 月 在 多 伦 多 证 券 交 易 所 创 业 板 上 市 后 ,
旗 下 的 中 国 子 公 司 签 署 了 一 份 以 1.5 亿 元
May/June 2011 | ASIA Miner | 47

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China
人 民 币 代 价 收 购 正 在 运 营 中 的 美 丰 煤
矿 60% 权 益 的 协 议 。
他 说 , 公 司 随 后 聘 请 了 Norwest 公 司 准 备
相 关 报 告 , 并 在 今 年 1 月 成 立 了 一 个 技 术 咨
询 委 员 会 , 负 责 审 查 项 目 运 作 和 收 购 , 并 为
矿 山 安 全 和 扩 建 提 供 技 术 建 议 。
“ 地 下 矿 井 建 设 已 于 去 年 完 成 , 强 制 性 的
六 个 月 期 生 产 效 率 和 安 全 性 测 试 也 已 第 三 季
度 结 束 。 矿 山 掘 进 了 长 6000 米 的 巷 道 , 首
采 区 的 B3 和 B8 煤 层 冶 金 煤 生 产 于 去 年 九 月
开 始 。
“ 目 前 年 产 量 约 30 万 吨 , 公 司 计 划 提 高 到
90 万 吨 。”
Mark Roth 说 距 离 煤 矿 50 公 里 内 的 两 家 炼
焦 厂 每 年 需 焦 煤 270 万 吨 , 同 时 方 圆 95 公 里
内 还 有 三 家 大 型 火 电 厂 , 年 需 热 煤 690 万 吨
, 保 证 了 美 丰 煤 矿 出 产 的 焦 煤 和 热 煤 有 着 强
劲 的 需 求 。
技 术 报 告 显 示 无 论 是 中 国 还 是 美 国 ASTM
标 准 检 测 程 序 , 煤 炭 质 量 检 测 的 基 本 参 数 都
相 同 。 这 也 意 味 着 B8 煤 层 均 一 性 较 好 , 相
对 结 构 复 杂 但 全 部 可 采 , 真 实 煤 层 厚 度 介
于 1.04 米 到 5.33 米 之 间 , 平 均 3.06 米 , 连 续
性 稳 定 。B3 煤 层 从 头 到 尾 相 对 均 一 , 结 构
简 单 , 真 实 厚 度 介 于 1.80 米 到 5.39 米 之 间 ,
平 均 3.71 米 , 连 续 性 相 对 稳 定 。
Norwest 公 司 的 现 场 考 察 核 实 , 已 按 可 行
性 研 究 建 议 在 矿 井 安 装 了 安 全 设 备 。
中 国 煤 炭 集 团 有 限 公 司 的 业 务 核 心 是 收 购
中 国 国 内 目 前 正 在 生 产 或 曾 经 生 产 的 煤 矿 或
其 他 矿 种 及 其 相 关 资 产 。 除 了 收 购 美 丰 项 目
外 , 该 公 司 正 就 另 外 两 个 收 购 目 标 矿 山 进 行
尽 职 调 查 。
该 公 司 的 五 年 期 目 标 是 年 产 煤 500 万 吨 ,
美 丰 最 终 将 贡 献 这 一 目 标 的 近 20%。
First phase expansion at Pingyao facility
WORK is under way on the first phase expansion
of China Magnesium Corporation’s
Officials from Pingyao County and China Magnesium Corporation at the
ground breaking ceremony for the Pingyao Magnesium Project first phase expansion.
Pingyao Magnesium Project in Shanxi
province. The expansion will bring total annual
capacity at the processing facility to
20,000 tonnes.
Earthworks have started after China Magnesium’s
subsidiary CMC China was formally
granted 50 year land use rights for the expansion.
The granting of the rights, which cover
60,000 square metres adjacent to the existing
plant, enables CMC China to boost annual
production to 20,000 tonnes by the end
of 2011 and 105,000 tonnes by 2013.
Capital works to upgrade and refurbish the
existing plant began in December 2010
while earthworks on the new land began
after a ground-breaking ceremony in early
March. The Pingyao County Government
arranged and hosted the ceremony, which
was attended by Pinhyao Mayor Hui Zhing
Li and more than 100 other officials. The
Mayor said, “Our government will fully support
your magnesium company because it is
one of the eight key projects in the Shanxi
province and the city’s number one project.”
China Magnesium’s executive director and
chief operating officer Xinping Liang said, “The
company enjoys a high degree of respect from
the local community and government, and we
are fortunate to have this depth of local support.
Also, we are excited to have reached this
stage in development of the project, for which
both the existing plant upgrade and first phase
expansion are still very much within budget
and on or ahead of time.”
China Magnesium believes it will benefit
from the recent announcement by China’s
Ministry of Industry and Information Technology
of strict new conditions for companies
working within or planning to enter the
magnesium industry in China. The conditions
set high standards for the layout, production
capacity and environmental
protection for the industry.
The conditions for existing and future magnesium
production facilities are:
• Existing refineries - must have annual production
capacity of at least 15,000
tonnes. If an existing refinery wishes to
apply for renovation or expansion, it will
need to have a production capacity of at
least 20,000 tonnes.
• New refineries - Must have a planned capacity
of at least 50,000 tonnes.
In addition new refining projects will be prohibited
in areas 1km from drinking water
sources, basic farmland protection areas,
natural reserves, scenic spots and other
areas that require strict environmental quality.
China Magnesium’s managing director Tom
Blackhurst says, “China produces more than
80% of the world’s magnesium and a significant
proportion of this is from low capacity
magnesium plants. China Magnesium is in
the enviable position of having permits in
place covering not only the current first phase
expansion to 20,000 tonnes, but for increases
up to 105,000 tonnes.
“The conditions are intended to ensure the
industry operates in an efficient and environmentally
responsible manner. It will consolidate
the company’s position as we will be
one of the first producers to meet the new industry
standards through the upgrade of existing
facilities and first phase expansion.”
平 遥 项 目 一 期 扩 建
中 国 镁 业 有 限 公 司 在 山 西 省 平 遥 的 镁 金 属 项
目 开 始 一 期 扩 建 。 此 次 扩 建 将 把 年 生 产 能 力
提 升 至 20000 吨 。
在 中 国 镁 业 的 子 公 司 (CMC 中 国 ) 获 得 第
一 阶 段 扩 建 所 需 的 50 年 土 地 使 用 权 后 , 土
木 工 程 随 即 展 开 。 获 批 的 土 地 使 用 面 积 共 计
6 万 平 方 米 毗 邻 现 有 工 厂 , 扩 建 将 使 CMC(
中 国 ) 的 年 生 产 能 力 在 2011 年 底 之 前 达 到
20000 吨 , 在 2013 年 达 到 105000 吨 。
升 级 和 翻 新 现 有 工 厂 的 基 础 建 设 工 程 已 在
2010 年 12 月 开 始 , 在 2011 年 3 月 份 随 着 奠 基
仪 式 的 举 行 土 木 工 程 建 设 也 随 即 展 开 。 奠 基
仪 式 由 平 遥 县 政 府 主 持 , 包 括 平 遥 县 县 长 李
非 忠 在 内 的 100 余 位 官 员 参 加 了 奠 基 仪 式 。
李 非 忠 说 :“ 我 们 将 全 力 支 持 镁 业 公 司 , 该
项 目 是 山 西 省 八 大 重 点 项 目 之 一 , 也 是 平 遥
县 最 重 要 的 项 目 。”
中 国 镁 业 公 司 总 经 理 和 首 席 运 营 官 梁 新 平
说 :“ 中 国 镁 业 公 司 受 到 了 当 地 政 府 的 高 度
重 视 , 我 们 十 分 幸 运 能 够 获 得 当 地 政 府 如 此
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大 的 支 持 。 现 有 设 备 升 级 和 一 期 扩 建 成 本 完
全 在 预 算 当 中 且 在 时 间 上 早 于 预 期 , 我 们 为
目 前 开 发 已 取 得 的 成 绩 欢 欣 鼓 舞 。”
工 业 和 信 息 化 产 业 部 日 前 出 台 新 规 , 对 镁
行 业 业 内 公 司 或 准 备 进 入 镁 行 业 的 公 司 提 出
了 严 格 的 要 求 , 中 国 镁 业 相 信 其 将 从 中 获
益 。 新 规 对 于 镁 的 生 产 设 计 、 生 产 能 力 和 环
境 保 护 设 定 了 很 高 的 标 准 。
新 规 规 定 :
• 已 有 精 炼 厂 — 年 生 产 能 力 必 须 在 15000 吨
以 上 。 若 已 在 产 的 精 炼 厂 申 请 改 扩 建 ,
则 年 生 产 能 力 需 在 20000 以 上 。
• 新 精 炼 厂 — 设 计 年 生 产 能 力 须 在 50000 吨
以 上 。
除 此 之 外 , 新 的 精 炼 厂 项 目 需 建 设 在 水 源
地 、 基 本 农 田 保 护 区 、 自 然 资 源 、 名 胜 地 和
其 他 需 要 严 格 环 境 保 护 的 地 区 1 公 里 之 外 。
澳 大 利 亚 中 国 镁 业 公 司 董 事 汤 姆 :“ 中 国
生 产 了 世 界 上 80% 的 镁 , 这 其 中 很 大 部 分 产
在 低 产 能 的 小 工 厂 。 中 国 镁 业 引 以 为 豪 的 是
我 们 不 仅 被 批 准 进 行 一 期 扩 建 使 生 产 达 到
20000 吨 , 更 会 将 产 能 提 升 至 105000 吨 。”
“ 新 规 的 出 台 旨 在 使 镁 生 产 行 业 在 更 加 有
效 率 、 更 加 环 保 的 状 态 下 运 行 。 通 过 对 已 有
设 施 的 升 级 和 一 期 扩 建 , 我 们 将 成 为 首 批 符
合 新 规 的 企 业 之 一 , 这 将 稳 固 我 们 在 行 业 中
的 地 位 。”
Further expansion plans at Aohanqi
AFTER achieving daily capacity of 500 tonnes
at the Aohanqi Gold Project’s processing
plant, Sino Prosper State Gold Resources
Holdings has confirmed plans to expand capacity
to 2000 tonnes and is ordering equipment
to achieve this. The company will also
construct a new refinery with ultimate annual
output capacity in excess of 1 million ounces
of 99.99% pure gold.
The Hong Kong listed company purchased
the operating Aohanqi project in Inner Mongolia,
north of the border with Liaoning
province, in 2009 and has significantly expanded
operations along with undertaking
ongoing exploration.
Sino Prosper aims to become a major Chinese
precious metals producer through acquisition
of producing or near production
properties that can result in increasing resources
and production per share.
Since the Aohanqi acquisition Sino Prosper
has installed new processing plant equipment
and accessory equipment, and has completed
the first phase tailing pond. The plant
achieved its daily capacity by the end of December
2010 and has operated with lower
initial feed stock grade than planned while a
new headframe was completed, allowing access
to main ore body.
Sino Prosper has reconstructed tunnels
and supporting facilities taking daily mining
capacity from 200 tonnes to about 600
tonnes. New mine construction, including
four new, larger vertical shafts and connecting
tunnels will bring daily mine output capacity
to about 2500 tonnes on completion by
the end of 2011.
The company has made plans for an expanded
drilling program during the Northern
Hemisphere spring and summer to advance
the preparation of JORC resource reporting
and to explore new geologic mineralization.
The Aohanqi mining area has also been expanded
from the original 2.07sqkm to
2.70sqkm and the company aims to expand
the licence area to 6sqkm.
Sino Prosper is also developing the
Zhongyi–Weiye Heilongjiang Mine, a production-ready
polymetallic gold property in Heilongjiang
province with five exploration
licensed tenements.
Initial exploration work has focused on developing
resources based on the prevailing
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relevant Chinese standards with an aim to
obtain conversion of the exploration licenses
covering 364.61sqkm to mining permits
as soon as possible. Sino Prosper
expects to convert first exploration licence
to a mining licence within the current year,
with the objective of the earliest possible initial
production.
敖 汉 旗 项 目 扩 建 计 划
在 敖 汉 旗 金 矿 项 目 选 矿 厂 的 日 处 理 矿 石 能
力 达 到 500 吨 后 , 中 盈 国 金 资 源 控 股 有 限
公 司 确 认 其 计 划 将 日 处 理 能 力 提 升 至 2000
吨 并 正 为 此 订 购 设 备 。 公 司 亦 将 会 为 之 配
套 建 设 一 个 年 生 产 100 万 盎 司 99.99% 纯 金
的 精 炼 厂 。
这 个 在 香 港 上 市 的 公 司 于 2009 年 收 购 了 位
于 内 蒙 古 境 内 、 北 与 辽 宁 省 接 壤 的 敖 汉 旗 项
目 , 并 已 在 继 续 勘 探 该 项 目 的 同 时 极 大 地 对
其 进 行 了 扩 容 。
中 盈 希 望 通 过 收 购 在 产 或 即 将 生 产 的 项 目
来 增 加 其 资 源 和 每 股 生 产 能 力 , 目 标 是 成 为
中 国 主 要 的 稀 有 金 属 生 产 者 。
中 盈 在 收 购 敖 汉 旗 项 目 后 , 已 完 成 新 的 选
矿 设 备 及 附 属 设 备 的 安 装 , 并 完 成 了 第 一 阶
段 尾 矿 库 的 建 设 。 该 选 矿 厂 于 2010 年 12 月
底 前 达 到 了 前 述 的 日 处 理 能 力 且 运 行 中 的 初
始 进 料 等 级 低 于 计 划 , 一 个 可 直 达 主 矿 体 的
竖 井 也 在 同 期 建 成 。 中 盈 已 对 隧 道 和 供 应 设
备 进 行 了 改 造 使 日 处 理 矿 石 能 力 从 200 吨 提
升 至 大 约 600 吨 。 在 2011 年 年 底 之 前 , 包 括
4 个 新 的 更 大 的 垂 直 立 井 和 连 接 隧 道 在 内 的
新 设 施 的 建 成 , 将 会 使 日 处 理 矿 石 能 力 提 升
至 大 约 2500 吨 左 右 。
该 公 司 计 划 于 北 半 球 的 春 季 和 夏 季 开 展 更
大 的 钻 探 项 目 以 加 速 JORC 资 源 报 告 的 准 备
并 勘 探 新 的 成 矿 带 。
敖 汉 旗 矿 区 已 由 2.07 平 方 公 里 扩 大 至 2.70
平 方 公 里 , 公 司 的 目 标 是 将 其 扩 大 致 6 平 方
公 里 。
与 此 同 时 , 中 盈 还 在 开 发 黑 龙 江 中 谊 伟 业
项 目 , 该 多 金 属 矿 位 于 黑 龙 江 省 , 中 谊 项 目
现 持 有 5 个 勘 探 权 矿 区 。 前 期 的 勘 探 工 作 的
重 点 是 按 照 中 国 现 行 的 有 关 标 准 进 行 探 矿 ,
目 的 在 于 尽 快 将 364.61 平 方 公 里 的 探 矿 权 转
化 为 开 采 权 。 中 盈 希 望 在 本 年 度 内 将 第 一 个
矿 区 的 探 矿 权 转 化 为 采 矿 权 , 并 希 望 尽 早 得
到 产 出 。
Silvercorp closes BYP acquisition
SILVERCORP Metals has received the necessary
Chinese government approvals, including
military clearance, to acquire 70% of Yunxiang
Mining Co, a private mining company in Hunan
province and whose primary asset is the BYP
Gold-Lead-Zinc mine 220km southwest of
Changsha. BYP has a mining permit covering
3.67sqkm, a safety production permit and
flotation mill with daily capacity of 400 tonnes.
As a result of the acquisition, Yunxiang is converted
into a Sino-Foreign joint venture company
and Silvercorp has taken control.
Total consideration for the 70% interest is
US$33 million. Silvercorp has paid US$19
million, representing 80% of the required payment
for the share purchase, and is required
to make a US$9 million equity capital investment
to Yunxiang. It will make payment of the
remaining 20% after certain conditions, including
completion of a government tax audit
of Yunxiang, are satisfied.
Silvercorp intends to utilize the flotation mill
to mine and process gold starting from the
2012 financial year, initially focusing on higher
grade materials. Concurrently, it plans to expand
daily mining and milling capacity to
1000 tonnes for 2013 and to 2000 tonnes by
2014 with the latter to include 1000 tonnes
of gold mineralization and 1000 tonnes of
lead-zinc mineralization.
A mineralized sample from
Silvercorp Metals’ TLP project.
A 50,000 metre drilling program has been
planned for BYP with the aim of upgrading current
historical resources and expanding the
mineralization bodies along strike and downdip.
A Canadian engineering firm has been engaged
to complete a NI 43-101 report on the
project and a Chinese engineering firm will be
engaged to design a full plan for mining development
and mill construction. Based on internal
analysis, it is possible that the expansion of
the production and exploration drilling will be financed
by cash flow generated by Yunxiang.
Silvercorp is the largest primary silver producer
in China through the operation of four
silver-lead-zinc mines at the Ying Mining Camp
in Henan province. It is building the GC silverlead-zinc
project in Guangdong province as its
second China production base and foothold,
and this will be followed by the third production
foothold at BYP.
For the nine months ended December 31,
2010, the company mined 466,639 tonnes of
ore, a 43% increase from the same period in
2009. Increased production from the TLP,
HPG, and LM mines contributed to the
record mine production.
During the 2012 financial year which started
on April 1, production from the four Ying
Camp mines is expected to increase to
600,000 tonnes of ore at a grade of 325
grams/tonne silver, 0.4 grams/tonne gold,
6% lead and 1.9% zinc, yielding 5.6 million
ounces of silver, 4000 ounces of gold, and 90
million pounds of lead and zinc. In this period
BYP is expected to mine and mill 130,000
tonnes of ore at a grade of 7 grams/tonne
gold, yielding about 26,000 ounces of gold.
Exploration is ongoing at the Ying projects
with underground drilling discovering 18 new
veins at the TLP Mine and 12 new veins at
the LM Mine with numerous high grade pockets
identified.
完 成 对 BYP 金 - 铅 - 锌 矿 的 收 购
希 尔 威 金 属 矿 业 公 司 对 Yunxiang 矿 业 公 司
70% 股 份 的 收 购 已 获 中 国 政 府 相 关 部 门 批
准 。Yunxiang 矿 业 公 司 是 一 家 位 于 湖 南 省 的
私 营 企 业 , 其 主 要 资 产 为 距 长 沙 西 南 220 公
里 的 BYP 金 - 铅 - 锌 矿 。
BYP 拥 有 3.67 平 方 公 里 的 探 矿 权 , 安 全 生
产 许 可 和 一 座 日 处 理 能 力 400 吨 的 浮 选 厂 。
收 购 完 成 后 ,Yunxiang 矿 业 公 司 的 企 业 性 质
变 为 中 外 合 资 , 希 尔 威 公 司 拥 有 控 制 权 。
该 70% 股 权 的 收 购 价 格 为 3300 万 美 元 。 希
尔 威 已 支 付 1900 万 美 元 , 占 收 购 股 份 所 需
支 付 额 的 80%, 并 将 支 付 900 万 美 元 作 为
Yunxiang 矿 业 公 司 股 东 权 益 。 剩 余 的 20% 将
会 在 特 定 事 项 完 成 后 支 付 , 其 中 包 括 政 府 对
Yunxiang 矿 业 公 司 的 税 务 审 计 。
希 尔 威 公 司 计 划 于 2012 财 年 将 浮 选 磨 机 用
于 金 矿 的 开 采 和 遴 选 , 初 期 主 要 用 于 高 品 位
矿 石 。 同 时 , 该 公 司 计 划 在 2013 年 提 高 日
开 采 和 研 磨 能 力 至 1000 吨 , 在 2014 年 提 高
至 2000 吨 , 其 中 处 理 金 矿 石 1000 吨 , 铅 - 锌
矿 石 1000 吨 。
一 个 针 对 BYP 矿 的 50000 米 钻 探 计 划 已 被
制 定 , 目 的 在 于 升 级 历 史 资 源 和 延 成 矿 带 以
及 向 下 拓 展 矿 化 体 。
一 个 来 自 加 拿 大 的 工 程 公 司 将 完 成 NI 43-
101 报 告 , 而 一 个 来 自 中 国 的 工 程 公 司 将 为
采 矿 的 开 发 和 研 磨 的 建 造 设 计 总 体 方 案 。 根
据 内 部 消 息 , 生 产 扩 建 和 钻 探 所 需 的 资 金 将
由 Yunxiang 矿 业 筹 集 。
通 过 在 河 南 省 的 Ying 矿 区 运 营 4 个 银 - 铅 - 锌
矿 , 希 尔 威 成 为 了 中 国 最 大 的 原 生 白 银 生 产
商 。 其 正 在 广 东 省 建 造 GC 银 - 铅 - 锌 项 目 作
为 其 在 中 国 的 第 二 个 生 产 基 地 和 立 足 点 ,
BYP 矿 将 是 第 三 个 。
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2010 年 后 9 个 月 , 该 公 司 共 开 采 466,639 吨
矿 石 , 与 2009 年 同 期 相 比 增 长 43%。 这 些
增 长 主 要 来 自 TLP, HPG, 和 LM 矿 的 增 产 。
4 月 1 日 开 始 的 2012 财 年 ,Ying 矿 区 的 4 个
银 - 铅 - 锌 矿 开 采 的 矿 石 量 预 计 将 增 值 600000
吨 , 其 中 银 325 克 / 吨 , 金 0.4 克 / 吨 ,6% 的
铅 和 1.9% 的 锌 , 将 产 出 560 万 盎 司 的 银 ,
4000 盎 司 的 金 和 9000 万 磅 的 铅 和 锌 。 同 期
BYP 矿 计 划 开 采 和 研 磨 130000 吨 的 矿 石 ,
其 中 金 的 品 位 为 7 克 / 吨 , 将 产 出 26000 盎 司
的 金 。
Ying 矿 区 的 勘 探 工 作 仍 在 进 行 中 , 通 过 地
下 钻 探 , 在 TLP 矿 共 发 现 18 条 新 的 矿 脉 , 在
LM 矿 发 现 12 条 矿 脉 , 以 及 为 数 众 多 的 高 品
位 矿 囊 。
Blackgold acquires WuShan mine
CHINESE coal mining company Blackgold International
Holdings has made its first acquisition
since its February ASX listing with the
purchase of a Chinese coal mine for RMB 80
million (about Aus$12 million). It has entered
into a Heads of Agreement to buy Chongqing
Yihua Mining, owner of the WuShan mine in
Wushan county, Chongqing province in
south-west central China.
The acquisition is subject to a satisfactory
due diligence being completed, as well as
being subject to the execution of a final
agreement in accordance with Chinese law
and securing the necessary approvals from
the relevant Chinese authorities.
Blackgold's chairman James Tong says the
WuShan acquisition is in line with the expansion
plans articulated in the company's ASX
prospectus and should have two benefits for
the company.
“WuShan is anticipated to represent nearterm
production that will significantly increase
Blackgold’s annual coal production volume,
and additional exploration and evaluation at
the WuShan mine by a JORC qualified independent
geologist is proposed and is expected
to allow for an increase in Blackgold’s
JORC assessed resources.
WuShan is a highly developed, pre-production
thermal coal mine about 20km from
Blackgold’s existing operations. The mine
contains five existing production adits together
with ventilation and access shafts and
ancillary infrastructure including power, piped
water, access roads and buildings.
WuShan is close to river port loading facilities
and has historically supplied small quantities
of thermal coal. Blackgold anticipates
commercial coal production beginning immediately
after machinery and equipment are installed
and commissioned and expects that
this will occur within four months of the acquisition
being finalized.
黑 金 环 球 收 购 巫 山 煤 矿
在 2 月 份 登 陆 澳 大 利 亚 证 券 交 易 所 后 , 中 国
煤 矿 公 司 黑 金 环 球 控 股 以 8000 万 元 人 民 币 (
大 约 1200 万 澳 元 ) 的 价 格 收 购 了 一 个 中 国 的
煤 矿 。 黑 金 环 球 已 缔 结 收 购 重 庆 宜 化 矿 业 有
限 公 司 ( 巫 山 煤 矿 的 所 有 者 ) 股 权 的 协 议 。
巫 山 煤 矿 位 于 中 国 西 南 部 重 庆 市 巫 山 县 。
本 次 收 购 涉 及 已 完 成 的 令 人 满 意 的 尽 职 调
查 , 且 按 照 中 国 的 相 关 法 律 和 有 关 当 局 的 批
文 。 执 行 最 终 协 议 。
黑 金 主 席 唐 志 浩 先 生 表 示 , 收 购 巫 山 煤
矿 , 与 招 股 书 中 说 明 的 扩 展 计 划 一 致 , 将 为
公 司 带 来 两 大 好 处 : 巫 山 煤 矿 若 可 近 期 投
入 生 产 , 将 使 黑 金 的 煤 炭 年 产 量 出 现 显 著 增
长 , 联 合 矿 石 储 量 委 员 会 的 独 立 地 质 学 家 对
巫 山 煤 矿 进 行 额 外 的 勘 探 和 评 估 , 预 计 会 增
加 黑 金 符 合 评 估 标 准 的 资 源 。
巫 山 煤 矿 是 一 家 发 展 动 力 煤 前 期 作 业 的 煤 矿
, 距 离 黑 金 目 前 的 两 个 煤 矿 20 公 里 内 。 煤
矿 包 含 5 个 生 产 入 口 , 连 同 其 风 井 和 竖 井 通
道 , 和 所 有 辅 助 性 基 础 设 施 , 如 : 电 力 , 自
来 水 , 通 路 和 相 关 建 筑 都 已 建 好 。
巫 山 煤 矿 距 离 货 运 码 头 很 近 , 该 码 头 之 前 曾
装 载 运 输 过 少 量 的 热 煤 。 一 旦 安 装 , 调 试 好
机 器 设 备 , 就 可 立 即 作 业 , 投 入 生 产 。 巫 山
煤 矿 将 在 收 购 完 成 后 4 个 月 内 投 入 生 产 。
May/June 2011 | ASIA Miner | 51

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Philippines
ALLIANCE PLANS COUNTRY’S SECOND NICKEL PLANT
THE alliance between Sumitomo Metal Mining
and Nickel Asia Corp will spend US$1.4
billion to build a second nickel processing
plant in the province of Surigao del Norte.
Sumitomo will have about a 55% stake in the
project and Nickel Asia about 22.5% with the
rest of the shares divided under a joint venture
company called THPAL Corp.
Nickel Asia’s president and CEO Gerard
Brimo says construction of the country’s second
downstream nickel processing plant will
start this year and take two years to complete.
“We expect to finish the project in the
middle of 2013.”
The plant will be constructed adjacent to the
nickel mine of Nickel Asia subsidiary Taganito
Mining Corp, which will supply the plant's required
nickel ore over an estimated 30-year
period. Sumitomo will purchase the output of
the plant, a mixed nickel-cobalt sulphide, for
final processing at its refinery in Japan.
The Taganito plant will use high-pressure
acid leach (HPAL) technology, which employs
low-grade laterite ores, which previously were
usually abandoned, to produce nickel.
Sumitomo, which is Japan’s top nickel producer,
also intends to spend US$168 million
to beef up capacity at a Japanese nickel refinery
to handle raw metal produced at the
Taganito project. It plans to increase annual
refining capacity at its Niihama plant to
65,000 tonnes in the 2013/14 financial year
from the current 41,000 tonnes. The expansion
work is expected to be completed in the
first quarter of 2013.
The new Taganito processing plant is also
considered particularly beneficial to the Philippines
because of the value-added created by
the downstream mineral processing plant, including
14,000 jobs and an increase in the
country's foreign exchange reserves.
Gerard Brimo says the new plant will have a
capacity more than three times that of the first
plant under Coral Bay Nickel Corp, a joint venture
between a Japanese consortium led by
Sumitomo and Rio Tuba Nickel Mining Corp,
which is another Nickel Asia subsidiary.
Constructed adjacent to the operations of
Rio Tuba in southern Palawan, the first plant
became operational in 2005 and has been a
technical and commercial success. Its initial annual
capacity of 10,000 tonnes of nickel metal
equivalent has since been more than doubled.
Sumitomo has recently introduced new equipment
at the Coral Bay HPAL plant, upgrading
annual capacity by 10% to 24,000 tonnes.
New drilling program at Alpha
MBMI Resources has started an 8000 metre
drill program on the Alpha Nickel Project in
Palawan focusing on detailed mine planning
as well as exploration beyond the limits of the
60 hectare area previously permitted.
The drilling contractor's 11 tungsten-carbide
core drill rigs and associated equipment
arrived at the Alpha project site at the end of
March, were mobilized to target areas and
began drilling on the property on April 9.
The 8000 metre drill program is the first
phase of a much larger program. Past exploration
activities have identified accessible highgrade,
exposed nickel and chrome materials
zones within the 3200 hectare property.
The majority of the drilling will focus on
grade control to identify and confirm detailed
data required to expand and define high priority
areas for continued mining. The grade
control holes will be completed to a maximum
depth of 15 metres and drilled on a 15
metre by 15 metre spacing.
The remainder of the program will consist
of exploration holes drilled to a maximum
depth of 25 metres on a 50 metre by 50
metre spacing focused in an area where
mapping and test pitting have shown highly
prospective results. These exploration holes
will be outside the boundary of the 60 hectare
area previously explored and will expand currently
delineated areas to confirm sufficient resources
for future development operations.
MBMI’s president and director Michael
Mason says, “This first phase of drilling is designed
as an intensive and systematic exploration
program to develop and confirm results
to expand the independent mineral resource
on Alpha. In addition, the grade control drilling
will provide the company and our partners
with the required data to continue mining and
development of this project.”
MBMI is focused on the exploration and development
of nickel properties and with its
Philippine partners maintains a Financial or
Technical Assistance Agreement (FTAA) with
the Philippine government with respect to the
Alpha, Bethlehem and Rio Tuba properties.
The FTAA allows MBMI and its partners to
progress toward development of full-scale
operational programs at each property.
A stockpile of ore at MBMI’s Alpha Nickel Project in Palawan.
54 | ASIA Miner | May/June 2011

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Philippines
The Agsao shaft at Medusa’s Co-O Gold Project on Mindanao.
The company is using funds raised in recent
private placements and financing arrangements
to accelerate exploration at Alpha and
Bethlehem. A $3.8 million placement in March
which increased Gwynneth Gold’s stake in
MBMI to 12.7%, a $5.8 million private placement
in February and the securing of a $7 million
pre-advance payment in late November
have boosted the company’s finances.
Exceptional Co-O gold assays
EXCEPTIONAL assay results are being obtained
by Medusa Mining from a new wide,
sub-vertical, high grade zone within the mine at
the Co-O Gold Project. The underground drilling
has returned 13.10 metres @ 47.81 grams/
tonne gold, 9.65 metres @ 12.58 grams/tonne
and 4.8 metres @ 13.84 grams/tonne.
Surface drilling in and around the mine has
also provided strong results including 2 metres
@ 219.17 grams/tonne, 0.8 metres @ 42.33
grams/tonne, 1 metre @ 31.45 grams/tonne
and 1.15 metres @ 12.49 grams/tonne.
A recent assessment of the Co-O Mine vein
architecture by independent structural geology
consultants described strong similarities of the
vein system structure and aerial extent to the
Martha Mine epithermal vein system in New
Zealand which produced about 5.6 million
ounces of gold from the 1870s to 1952 and
was mined to around 600 metres in depth.
Medusa’s managing director Geoff Davis
says, “The continuing good results from the
Co-O vein system and surrounds are extremely
pleasing, including the discovery of a
new exceptionally wide and high grade zone
within the mine by underground drilling.
“I also wish to emphasise that, as we drill new
vein systems, drill intersections in veins rarely
provide ore-grade intersections in every hole.
As our data base grows, and the characteristics
of each vein become clearer, statistical assessment
of the percentage of ore-grade drill
hole intersections required, maybe as low as
40% of holes with ore grade intersections, will
increasingly provide the levels of certainty for
turning exploration drill results into ore that can
be developed with confidence.”
Medusa is confident that the ongoing exploration
can provide additional ore for the Co-O
processing plant, thus increasing the mine life.
The revised forecast gold production for the
fiscal year to June 30, 2011, is now a record
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Philippines
102,000 ounces at anticipated cash costs of
US$190 per ounce. Geoff Davis says, “I am
pleased to report that operations have continued
smoothly with the company achieving
record production at the low average cash
cost of US$186 per ounce for the first six
months of the financial year.”
Mine development is continuing with the
sinking of the Saga Shaft under way and the
start of a new adit to access the Royal Veins
and the newly discovered North Tinago vein
systems. Late last year the company’s Board,
approved construction of a new Co-O plant
with capacity to annually produce 200,000.
Capital requirements of the plant, including
mine development, are estimated at US$80
million and will be funded out of cashflow. The
preliminary construction schedule after regulatory
permitting is estimated to be 21 months.
Medusa is currently advancing the permitting
process and is engaged in discussions with
engineering design and construction groups.
Royalco attracts new investor
MICROCAP investment manager Acorn Capital
has taken a 19% stake in Australia-based
Philippine explorer Royalco Resources. The
change occurred earlier in the year after South
Australian focused copper and gold miner OZ
Minerals offloaded its 18.97% stake in Royalco.
Apart from its Philippines exploration interests,
Royalco holds a portfolio of 10 royalty interests
in mines around the world of which two
have been producing income in recent times.
Royalco is currently deriving most of its income
from a royalty on the Globe-Progress
gold mine at Reefton in New Zealand. It is
also considering other project opportunities
in South East Asia, including Cambodia.
During the December quarter the royalty
payment from Globe-Progress was 1250
ounces of gold which equates to about
Aus$5.9 million on an annual basis for this net
royalty income. The company expects the
number of producing royalties to increase to
four in coming months.
Acorn Capital is now Royalco’s second
largest shareholder, behind Anglo Pacific
Group which holds a 31.1% stake.
Royalco’s executive chairman Peter Topham
says OZ Minerals has been a supporter in recent
years and that ‘corporate paths’ may
cross in future in the “same professional manner
in which it has in the past”. He says, “This
transaction will also potentially benefit shareholders,
as it should assist in adding greater
liquidity to trading in our shares on the Australian
Securities Exchange.”
Royalco has executed an option agreement
with Vale International over its Gambang tenement
in northern Luzon and is also seeking
interest for its Pao Yabbe project which adjoins
OceanaGold’s Didipio Copper-Gold
Project, also in northern Luzon.
Rain delays Siana progress
HEAVY rain in northern Mindanao has delayed
construction progress at Red 5’s Siana
Gold Project. Rainfall in the Siana area for the
first 12 weeks of 2011 totalled 3.5 metres,
which was 203% above average.
The rain postponed the major crusher and
SAG mill concrete pours, putting the work
eight weeks behind schedule. The company
will forecast a revised inaugural gold pour
date once the major concrete pours have
been completed, cured and certified. The targeted
date had been early May.
The rain has been so heavy at times that pit
dewatering was temporarily suspended on
several occasions due to the large volume
and velocity of water in the adjacent river systems.
The mining pre-strip has been progressing,
although the rain postponed
activities in areas requiring narrower working
widths due to safety reasons.
It also caused a temporary suspension of
drilling at the Mapawa site for safety reasons
due to mudslides and the inability to maintain
a continuous supply of consumables to the
three rigs. Analytical results have, however
been received for a number of holes and include
37 metres @ 3.0 grams/tonne gold.
The company has advanced the Siana project
where possible during this period. Grid
power has been connected and reticulated
on site while concrete foundations for all six
CIL tanks and the cyanide detox plant have
been completed.
Formwork and rebar for the crusher and SAG
mill are complete, all major equipment items
such the SAG mill, rolls crusher, apron feeder
and cyclone nest as have been manufactured
and are awaiting delivery to the site, all offsite
steelworks and plateworks are on schedule,
the electrical and pipe work packages have
been released, and 75% of the capital cost is
now under firm orders/contracts.
Red 5 has agreed to a US$8 million
standby credit facility with Sprott Resource
Lending Partnership, which replaces the previously
announce US$25 million gold prepay
with Sprott Group. The facility is for 24
months and amounts drawn may be repaid
early with no penalty.
The Siana mine build, together with working
capital requirements and exploration programs,
is fully funded to production status,
however, the company’s Board believed it
prudent to guarantee access to additional
funding in light of the continued heavy rains
and due to recent global events.
Existing treasury funds total Aus$67.7 million
with a further Aus$51.4 million forecast
to be invoiced on the Siana build which would
bring the capital cost to first gold pour to
US$78.2 million.
The layout of Red 5’s Siana Gold Project in northern Mindanao.
56 | ASIA Miner | May/June 2011

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Philippines
Masbate continues to set records
GOLD production and throughout continue
to increase at CGA Mining’s flagship Masbate
Gold Project, which is now the largest operating
gold project in the Philippines. CGA is
also well along the path to expanding production
at the project and is acquiring additional
interests throughout the country.
During the December quarter production increased
4% on the previous quarter to 50,330
ounces while mill throughput rose 7% to 1.5
million tonnes of ore. It was the seventh consecutive
quarter of increased gold production.
In the first year of operations, the project produced
in excess of 150,000 ounces of gold.
Masbate is currently forecast to produce
200,000 gold ounces each year and has a
probable reserve of 3.03 million gold ounces.
The company is focused on completing the
plant investment program of US$15 million
designed to upsize the existing plant and lock
in a sustainable annual throughput level of 6.5
million tonnes. In line with this expansion CGA
has placed orders for a supplementary crushing
circuit handling 400 tonnes each hour.
This is designed to ensure the 6.5 million
The processing plant at CGA Mining’s Masbate
Gold Project on Masbate Island.
tonne throughputs are achieved when the ore
blend becomes harder. Initial construction for
the upgrade has begun.
CGA is also committed to a US$10 million
exploration program this year with a focus on
materially enhancing the reserve and resource
base of Masbate.
In April 2010, CGA’s Philippine subsidiary
Filminera was granted a 52sqkm exploration
permit adjacent to the project, which covers
a number of known and previously mined
gold deposits as
well as hosting a
significant geophysical
anomaly
with a signature
similar to Masbate’s
Main Vein
deposit. The permit
has not benefited
from modern
or systematic exploration
and is considered
highly prospective with potential to
materially increase resources.
The 2011 exploration program is initially focused
on three broad target areas - near mine
infill drilling to upgrade inferred material to indicated
status; near mine step out drilling to
extend the ore model beneath and along
strike of current information; and exploration
of the new tenement in areas of known mineralization
and those previously unexplored.
It follows the most recent drilling campaign
comprising 9401 metres of reverse circulation
drilling and 2383 metres of diamond core
drilling. Significant intersections include 4 metres
at 8.99 grams/
tonne gold, 6 metres
@ 3.37 grams/
tonne; 9 metres @
3.41 grams/tonne
and 3 metres at
9.63 grams/tonne.
In line with its
strategic alliance
with Ratel Group,
CGA will also continue
to work with
the company to assist in progressing and
enhancing the value of the King-king Gold
Project on Mindanao.
May/June 2011 | ASIA Miner | 57

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Australia
SWEET RESULTS FROM BAUXITE DRILLING AT BINJOUR
DRILLING by Australian Bauxite Ltd at the
Binjour project in central Queensland has
returned exceptionally high quality intercepts
of bauxite suitable for sweetening circuits
in refineries. Eleven of 14 holes drilled
intersected very high quality thick bauxite,
significantly advancing the company’s exploration
knowledge.
The results at Binjour, which is between
Australian Bauxite’s extensive tenements are in eastern Australia.
the towns of Gayndah and Mundubbera,
south of the port of Gladstone, suggest relatively
pure gibbsite bauxite.
Australian Bauxite’s CEO Ian Levy says,
“Binjour may prove to be a very high quality
bauxite deposit, shippable in large tonnages
to a number of bauxite/alumina refineries that
need ‘sweetener-grade’ bauxite that can be
processed at low temperature and with exceptionally
low reactive silica contents.
“We’ve called this bauxite type ‘Brown
Sugar’ bauxite – which may become a
brand name in the industry one day. Some
customers may become dependent on this
product and pay quite handsomely for it.”
The company will target its 2011 drilling
program at areas where the bauxite layer is
at the surface.
At the Taralga prospect in the Southern
Highlands of New South Wales, bauxite resources
totalling 12 million tonnes were
identified in late 2010 from first pass drilling.
More than half of the resources are easily
mine direct shipping ore (DSO) grade bauxite
suitable for direct shipping to customers
requiring gibbsite-rich bauxite, which is the
premium quality bauxite that is in highest
demand globally.
The bulk of these resources came from two
areas in the central north of the Taralga tenement
but a new bauxite deposit has been discovered
in the southeast of the tenement and
this is now being drilled as a matter of priority.
During the January drilling cycle 225 holes
were drilled in this area and some zones of
exceptionally thick bauxite layers were discovered,
including one hole that intersected
bauxite from surface to 18 metres depth.
This deposit extends westwards from the
original exploration licence into a newly
granted licence area where 20 of the 225
holes were drilled within 14 days of it being
granted. The new deposit appears significantly
larger than the other two deposits,
both in thickness and areal extent.
Australian Bauxite has also been drilling on
its Tasmanian tenement on grazing and cropping
farmland around Campbell Town in the
state’s midlands. Bauxite has been encountered
in drill holes and in surface sampling.
Results to date are from the edges of the
deposit and from some outlier occurrences
of bauxite and they demonstrate that DSO
grades occur in reasonable thicknesses. An
application for a further tenement in Tasmania
has also been lodged.
The company holds the core of the newly
discovered eastern Australia bauxite
province with 32 different tenements in
Queensland, New South Wales and Tasmania
covering 7537sqkm.
58 | ASIA Miner | May/June 2011

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Australia
MOU for Mt Peake project
TNG Limited has signed a Memorandum of Understanding
with a Chinese state-owned engineering,
development and construction
company to establish a strategic partnership for
financing and development of the Mount Peake
Iron-Vanadium Project in the Northern Territory.
The MOU allows for potential future agreement
to undertake engineering, procurement
and construction works and securing
project finance, subject to entering into definitive
agreements. The MOU is conditional
on successful evaluation of the recent
Mount Peake scoping study.
The non-binding MOU follows a recent positive
independent study based on TNG’s revolutionary
new patented hydrometallurgical
process. This was developed by TNG in conjunction
with its metallurgical consultants Minerals
Engineering Technical Services (METS)
and has been successful in recovering three
principal commodities – vanadium, titanium
and iron – from samples of Mount Peake ore.
The Chinese group, which has requested
anonymity as part of the MOU, is reviewing
the study and other project information, and
subject to a satisfactory review, the two parties
will sign potential agreements regarding
off-take of the iron and vanadium products,
project construction and funding.
The study outlines a mine life of more than
23 years with life-of-mine production of
107.1 million tonnes for total metal production
of 349,000 tonnes of vanadium, 27.182
million tonnes of iron and 6.463 million
tonnes of titanium.
TNG has appointed engineering firm Sinclair
Knight Mertz (SKM) to manage completion
of a pre-feasibility study (PFS) which will
build on the scoping study. The PFS is expected
to take seven months and will be
based on a conventional open pit mining operation
annually processing 5 million tonnes.
It will be carried out in conjunction with the
next phase of pilot plant metallurgical test
work, which is testing commercialization of
the patented metallurgical process.
The PFS will pave the way for a definitive feasibility
study next year on potential commercial
development options for the project as the
foundation for a long-life, world-scale ferrous
metal business in the Northern Territory.
TNG’s chief executive Paul Burton says the
company is building a highly capable team to
progress the project. “As part of this team we
are pleased to have secured the services of
SKM and will retain the services of Snowden for
resource evaluation and mining advice, as well
as joint patent owners METS for continued metallurgical
evaluation and process development.”
He says TNG recently completed a $2.8
million capital raising to underpin completion
of the PFS, including delivery of a resource
upgrade, pilot plant metallurgical
work and associated studies on the hydrometallurgical
process.
Peake 山 项 目 谅 解 备 忘 录
TNG 有 限 公 司 与 一 家 中 国 国 有 工 程 、 开 发 和
建 设 公 司 签 署 了 一 份 谅 解 备 忘 录 , 就 合 作 融
资 并 开 发 北 领 地 Peake 山 铁 钒 项 目 建 立 起 战
略 伙 伴 关 系 。
该 谅 解 备 忘 录 为 今 后 的 项 目 设 计 、 采 购 、
施 工 合 同 以 及 项 目 融 资 留 有 了 空 间 , 但 须 取
决 于 签 订 确 定 性 协 议 。 该 谅 解 备 忘 录 是 有 条
件 的 , 即 需 成 功 进 行 对 Peake 山 概 略 研 究 的
评 价 。
这 份 不 具 约 束 力 的 谅 解 备 忘 录 是 在 针 对
TNG 公 司 一 项 革 命 性 的 湿 法 冶 金 工 艺 新 专 利
做 出 独 立 积 极 研 究 后 签 署 的 。 这 项 专 利 由
TNG 公 司 与 其 冶 金 顾 问 矿 物 工 程 技 术 服 务 公
May/June 2011 | ASIA Miner | 59

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Australia
司 (METs) 合 作 开 发 的 , 并 已 在 从 Peake 山
矿 样 中 提 取 三 种 主 要 金 属 时 取 得 成 功 ——
钒 、 钛 和 铁 。
中 方 合 作 伙 伴 要 求 在 该 谅 解 备 忘 录 中 匿 名
出 现 , 正 在 审 查 项 目 概 略 研 究 以 及 其 他 信 息
, 若 审 查 结 果 令 人 满 意 , 双 方 将 签 署 有 关 铁
和 钒 产 品 的 包 销 、 项 目 建 设 以 及 融 资 合 同 。
项 目 概 略 研 究 预 计 矿 山 寿 命 超 过 23 年 , 共
计 矿 石 产 量 将 达 1.071 亿 吨 , 包 括 34.9 万 吨
钒 ,2718.2 万 吨 铁 和 646.3 万 吨 钛 。
TNG 公 司 已 委 任 工 程 公 司 Sinclair Knight
Mertz (SKM) 负 责 在 概 略 研 究 基 础 上 完 成 预
可 行 性 研 究 报 告 (PFS)。 预 计 需 要 7 个 月
时 间 , 假 设 前 提 是 传 统 的 露 天 开 采 , 年 处 理
量 500 万 吨 。 这 项 工 作 将 与 下 阶 段 的 中 试 厂
冶 金 试 验 工 作 同 时 进 行 , 主 要 是 验 证 专 利 冶
金 工 艺 的 商 业 化 运 作 。
该 可 行 性 研 究 将 为 明 年 的 最 终 可 行 性 铺 平
道 路 , 着 眼 于 可 能 采 取 的 商 业 化 项 目 开 发 方
案 , 目 标 是 使 项 目 成 为 北 领 地 地 区 一 个 世 界
级 的 长 寿 命 黑 色 金 属 项 目 。
TNG 公 司 的 首 席 行 政 官 Paul Burton 说 , 该
公 司 正 在 建 立 一 个 精 干 的 团 队 推 进 项 目 进
展 。“ 作 为 这 个 团 队 的 一 部 分 , 我 们 很 高 兴
已 经 获 得 了 来 自 SKM 的 服 务 , 并 会 聘 请
Snowden 公 司 进 行 资 源 评 价 和 开 采 建 议 , 以
及 专 利 的 共 同 拥 有 者 METs 公 司 继 续 进 行 冶
金 学 评 估 和 工 艺 研 发 。”
他 还 介 绍 说 TNG 公 司 最 近 完 成 了 一 项 280 万
澳 元 的 资 金 募 集 , 以 此 为 预 可 行 性 研 究 提 供
资 金 支 持 , 包 括 资 源 升 级 , 中 试 冶 金 试 验 工
作 以 及 其 他 针 对 湿 法 冶 金 工 艺 的 相 关 研 究 。
Chinese uranium investment
UNITED Uranium has signed a joint venture
agreement with a Chinese company to advance
a number of its uranium tenements in
the Northern Territory. United has also received
Aus$1.176 million from a placement
to the Chinese investor.
The No 1 Institute of Geology and Minerals
of Shandong Province (SDGM) has received
formal approval from Australia’s Foreign Investment
Review Board (FIRB) to subscribe for 5.6
million shares in United Uranium. FIRB has also
provided formal approval for SDGM to acquire
up to 51% of the issued capital of United and
up to a 50% interest in six tenements.
The Chinese company can earn the 50%
interest by spending a total of $3 million on
exploration. United Uranium will work with
SDGM to further advance the tenements,
which include McArthur River, Pine Creek,
Dunmarra and Wiso. Drilling programs are
already planned at two of the tenements
with the SDGM funds and joint venture
agreement enabling further work to be carried
out into the future.
Owing to adverse weather United had to
postpone its initial drilling program at
McArthur River until after the wet season. The
program is now due to take place during the
current quarter subject to drill rig availability.
The drilling program was planned after
ground-based electrical geophysics was
completed over the T1 target of this tenement
where induced polarization (IP) surveys identified
a strongly chargeable and moderately
conductive response. The target zone is
about 100 metres below surface, has a thickness
of up to 30 metres and is at least 300
metres long by 300 metres wide.
At Pine Creek all necessary drilling approvals
have been received for programs at
Stray Creek West and Stray Creek targets
and it is expected that the drilling will also
take place this quarter, subject to rig availability.
IP surveys have also been completed.
The Pine Creek Geosyncline is a major gold
and uranium province in the Northern Territory
which also contains many mine copper, leadzinc
and tin mineral occurrences.
Meanwhile, United continues to work with
the Central Land Council in getting another
two of the six tenements granted and is also
continuing in its search for new projects with
the focus remaining on uranium. It will, however,
also consider other commodities.
中 国 铀 矿 投 资
联 合 铀 业 公 司 (UNITED Uranium) 与 一
家 中 国 公 司 签 署 了 合 资 协 议 , 以 推 进 位
于 北 领 地 的 几 个 铀 矿 项 目 开 发 。 联 合 铀
业 公 司 还 收 到 了 通 过 向 中 方 投 资 者 增 发
股 份 募 得 的 117.6 万 澳 元 资 金 。
山 东 省 第 一 地 质 矿 产 研 究 院 (
SDGM) 已 收 到 澳 大 利 亚 外 国 投 资 审
查 委 员 会 (FIRB) 的 正 式 批 准 , 同 意
其 认 购 联 合 铀 业 公 司 560 万 股 股 份 。
澳 大 利 亚 外 国 投 资 审 查 委 员 会 还 为 山
东 省 第 一 地 质 矿 产 研 究 院 提 供 正 式 文
件 , 批 准 其 最 多 可 收 购 联 合 铀 业 公 司
发 行 股 本 的 51%, 并 在 六 个 矿 权 中 占
最 高 50% 的 权 益 。
中 方 公 司 可 通 过 投 资 300 万 澳 元 用
于 勘 探 从 而 获 得 项 目 的 50% 权 益 。
联 合 铀 业 公 司 将 与 山 东 省 第 一 地 质
矿 产 研 究 院 合 作 以 进 一 步 推 进 这 几 个
矿 权 区 的 开 发 , 包 括 McArthur River,
Pine Creek,Dunmarra 和 Wiso。 已 为
其 中 两 个 矿 权 区 制 定 了 钻 探 计 划 , 并
将 利 用 山 东 省 第 一 地 质 矿 产 研 究 院 提
供 的 资 金 , 且 合 资 协 议 使 今 后 进 一 步
工 作 成 为 可 能 。
由 于 恶 劣 天 气 联 合 铀 业 公 司 不 得
不 将 McArthur 的 初 步 钻 探 计 划 推 迟 到 雨 季 之
后 。 现 在 该 计 划 应 定 于 本 季 度 内 实 施 , 取 决
于 是 否 能 调 到 钻 机 。
钻 探 方 案 是 基 于 对 这 一 矿 权 中 T1 号 靶 区 的
地 表 电 学 地 球 物 理 研 究 后 制 定 的 , 在 此 通 过
激 发 极 化 研 究 (IP) 发 现 了 强 烈 的 可 充 电 性
和 适 度 导 电 性 。 目 标 区 域 位 于 地 表 以 下 约
100 米 , 厚 度 高 达 30 米 , 至 少 300 米 长 ,300
米 宽 。
Pine Creek 矿 权 区 的 Creek West 和 Stray
Creek 靶 区 已 收 到 所 有 必 需 的 钻 探 方 案 批
准 , 预 计 也 将 在 这 个 季 度 执 行 , 取 决 于 是
否 能 获 得 钻 机 。 这 些 靶 区 的 激 发 极 化 研
究 (IP) 也 已 完 成 。
Pine Creek 向 斜 地 带 是 北 领 地 地 区 一 个 知
名 的 黄 金 和 铀 产 区 , 还 蕴 藏 着 许 多 铜 , 铅 -
锌 , 锡 等 矿 化 露 头 。
与 此 同 时 , 联 合 铀 业 将 继 续 与 中 部 土 地 理
事 会 (Central Land Council) 合 作 以 取 得 另
外 六 个 矿 权 区 中 两 个 的 批 准 , 还 将 继 续 寻 找
新 项 目 , 重 点 仍 将 是 铀 。 不 过 也 考 虑 其 他 矿
种 。
Copper Strike secures Chinese funds
COPPER Strike will use almost $11.5 million
it aims to raise in placement and option
agreements with Chinese companies to advance
the development of the Einasleigh Project
in North Queensland, where two
copper-gold-silver deposits and four zinclead-silver
deposits have been discovered.
United Uranium’s tenements are in Australia’s Northern Territory.
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Australia
Copper Strike has signed agreements with
Beijing Jintai Yuanchung Mining Co and
Taifeng Yuangcheng International Development
Limited to raise Aus$5.822 million
through a share placement and a further
Aus$5.64 million through an option placement.
The agreements are conditional upon
final confirmatory due diligence, shareholder
approval, Foreign Investment Review Board
approval and Chinese government approvals.
Jintai is a joint venture between Sichuan
Taifeng Group Co and Sichuan Bureau of
Metallurgical Geology and Exploration
(SBMGE) while Taifeng is a wholly-owned
subsidiary of Sichuan Taifeng Group.
The initial placement will see the Chinese
companies obtain a 19.99% interest in Copper
Strike while the options will result in a further
13.01% interest, with the options
exercisable within three years of issue. Copper
Strike has also signed a joint venture development
agreement with Taifeng.
The initial $5.822 funding will be used to finalize
a bankable feasibility study (BFS) with
respect to the Kaiser Bill, Einasleigh, Chloe,
Jackson and Stella deposits within the
Einasleigh project.
Under the JV development agreement, if
the BFS confirms the currently estimated recoverable
resource, production costs and development
costs for these deposits, an
unincorporated joint venture will be established
between Taifeng and Copper Strike’s
subsidiary, Einasleigh Mining.
Taifeng will subsequently provide a further
$95 million by way of a farm-in for a 70% interest
in the tenements and will provide a further
$5 million loan to Copper Strike, which
will make available to the development funding,
as necessary, the proceeds of the loan
and proceeds received from the exercise of
the options. Taifeng and Einasleigh Mining
have also entered into an offtake term sheet
providing Taifeng with the right of first refusal
to purchase Copper Strike’s 30% of the offtake
under the joint venture.
CSE 锁 定 中 国 基 金
CSE 将 通 过 与 中 国 公 司 签 署 配 股 和 配 股 期 权
协 议 获 取 大 约 1150 万 美 元 用 于 促 进 北 昆 士
兰 州 Einasleigh 项 目 的 开 发 , 该 项 目 包 括 2 个
铜 - 金 - 银 矿 和 4 个 锌 - 铅 - 银 矿 。
CSE 已 与 北 京 和 泰 丰 元 创 国 际 发 展 有 限 公
司 签 署 协 议 , 通 过 配 股 筹 集 582.2 万 澳 元 以
及 配 股 期 权 筹 集 564 万 澳 元 。 该 协 议 的 有 效
性 将 视 最 终 验 证 尽 职 调 查 、 股 东 大 会 同 意 、
外 国 投 资 审 查 委 员 会 批 准 和 中 国 政 府 相 关 部
门 批 准 的 结 果 而 定 。
金 泰 是 四 川 泰 丰 股 份 有 限 公 司 与 四 川 省 地
质 矿 产 勘 查 开 发 局 的 合 资 公 司 , 泰 丰 股 份 有
限 公 司 是 四 川 泰 丰 集 团 的 全 资 子 公 司 。
两 家 中 国 公 司 通 过 首 次 配 股 将 获 得
CSE19.99% 的 股 权 , 在 三 年 内 通 过 配 股 期
权 可 获 得 另 外 的 13.01%。CSE 还 和 泰 丰 签
署 了 一 份 合 作 开 发 协 议 。
通 过 配 股 募 得 的 582.2 万 美 元 将 用 于 完 成
Einasleigh 项 目 中 Kaiser Bill, Einasleigh,
Chloe, Jackson 和 Stella 矿 是 否 可 获 利 的 行
性 研 究 报 告 (BFS)。
根 据 合 作 开 发 协 议 , 如 果 BFS 报 告 肯 定 了
目 前 对 于 可 开 采 资 源 、 生 产 成 本 和 开 发 成 本
的 预 测 , 泰 丰 和 CSE 的 子 公 司 Einasleigh 资
源 公 司 将 共 同 成 立 一 个 非 法 人 合 资 公 司 。
泰 丰 接 下 来 将 以 9500 万 美 元 的 价 格 受 让 该
项 目 70% 的 权 益 , 并 将 向 CSE 提 供 另 外 500
万 美 元 的 贷 款 , 这 笔 贷 款 将 提 供 给 该 项 目 的
开 发 基 金 , 必 要 时 , 该 笔 贷 款 的 利 息 以 及 配
股 期 权 的 收 益 都 将 汇 入 开 发 基 金 。
泰 丰 还 与 Einasleigh 资 源 公 司 签 署 了 一 份 股 权
出 售 协 议 赋 予 泰 丰 公 司 收 购 CSE 公 司 在 上 述
非 法 人 合 资 公 司 中 30% 股 权 的 优 先 取 舍 权 。
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Papua New Guinea
HORSE IVAAL TRUKAI RESOURCE BOOSTED BY 79%
A drill pad in rugged country at Highlands Pacific’s Frieda copper gold project.
HIGHLANDS Pacific believes its Frieda Horse
Ivaal Trukai copper gold project in PNG is one
of the world’s premier porphyry assets available
for development this decade, after upgrading
its mineral resource estimate for the
Horse Ivaal Trukai deposit by 79% to 1.9 billion
tonnes. The deposit is now estimated to
contain 8.6 million tonnes of contained copper,
14.3 million ounces of gold and 46 million
ounces of silver.
The Frieda project is one of the Asia-Pacific’s
largest undeveloped copper/gold resources,
situated 75km northeast of the Ok
Tedi mine and 170km northwest of the giant
Porgera gold mine in PNG. Using a 0.2%
copper cut-off grade, the Horse Ivaal Trukai
deposit’s total 1.9 billion tonnes of copper
mineralization is estimated at a grade of
0.45% copper, 0.22 grams/tonne gold and
0.70 grams/tonne silver.
Separate to the open pit deposit but within
the Frieda district is a further 270 million
tonnes of inferred copper resource at the
Koki and Ekwai deposits.
The company’s managing director John
Gooding says, “Frieda has the capacity to be
one of the largest, lower-operating cost copper
projects in the world. Assets like Frieda
with their major inventory and multi-decade
potential are rare in the portfolios of junior resource
companies and their value in corporate
portfolios should not be underestimated.”
The pre-feasibility study released in November
2010 indicated the multi-decade life mine
will have an average annual throughput of 50
million tonnes. Subject to funding, construction
of the open cut mine could begin next
year, with production commencing in 2017.
Meantime, seven holes have been drilled at
Highlands Pacific’s Star Mountains Olgal copper
and gold prospect, which is also near the
Ok Tedi mine. The company wants to increase
the Olgal drilling program with the aim
of defining a JORC-compliant resource. The
Olgal prospect is one of 12 identified for further
investigation, with two additional rigs due
to arrive in September to test other copper/
gold targets in the area.
John Gooding says, “As the earlier exploration
results show, great potential exists for a
copper/gold prospect of significant scale with
potential long-term synergies with the Ok Tedi
mine which is nearing completion. We will also
drill at the other prospects to test the potential
for copper-porphyry clusters in the district.”
The Star Mountain leases are about 20km
north of the Ok Tedi mine and cover the Nong
River skarns and the Star Mountains porphyry
copper deposits - two areas known for
copper/gold mineralization.
Yandera resource upgrade
ASSAY results from a drilling program at
Marengo Mining’s Yandera project have
prompted a substantial upgrade to its mineral
resource inventory, with a 32% increase
in copper. The company drilled 345 diamond
holes totaling 113,716 metres at the project
which is 95km southwest of the coastal
town of Madang.
Marengo’s managing director and CEO Les
Emery says the results are a positive step forward
in the development of a substantial
long-life copper-molybdenum-gold mine.
The drilling program identified mineralization
to a depth of 981 metres at the Imbruminda
zone, some 400 metres below the base of
the current resource estimate, and down to a
depth of 660 metres at the Gremi zone,
which is 200 metres below the base.
Drilling at Marengo Mining’s Yandera project, southwest of the town of Madang.
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Papua New Guinea
The revised estimate updates the company’s
original October 2008 estimate with a
measured resource of 113 million tonnes @
0.57% copper equivalent, an indicated resource
of 245 million tonnes @ 0.5% copper
equivalent and an inferred resource of 417
million tonnes @ 0.45% copper equivalent.
Les Emery says, “The updated inventory
has strengthened Marengo’s goal of developing
a project with a minimum operation life of
at least 20 years.”
Marengo has also reported an inferred resource
estimate of 776 million tonnes containing
by-product metals comprising gold,
silver and rhenium for 2.2 million ounces of
gold, 42 million ounces of silver and 1.5 million
ounces of rhenium. While these by-product
metals are not included in the copper
equivalent values, they are expected to make
a significant contribution to the overall economics
of the project.
Sample data was composited to five metres
and flagged by geological, weathering, alteration
and grade shell domains. Resources
were estimated separately for copper, molybdenum,
gold and silver mineralization for the
deposit. Rhenium was calculated using a
molybdenum to rhenium regression for all
blocks containing a molybdenum estimate.
Les Emery says, “This resource estimate
has confirmed our belief that the Yandera
project will continue to grow in scale and has
justified the continued focus on drilling at the
Yandera Central Porphyry zone.
“We have five diamond drill rigs operating
on site, to complete further infill drilling, together
with targeting, strike and depth extensions,
to the known mineralization.”
totaling 14,950 metres, providing 13,230 analyzed
samples. Drill hole sample assays
were composited to 3 metres, providing 4977
data values inside the modeled area.
Gold mineralization at Botlu is associated
with volcanic breccias that cut through
largely latite andesite and minor volcanic
host rocks. It occurs with fine grained disseminated
sulphides, with very fine grained
gold mineralization of the highest grade in
the matrix of the volcanic breccia. Pervasive
silica, carbonate and potassic alteration of
5-10% is commonly recorded.
Ore is transported to the processing plant at Allied
Gold’s Simberi project via overland conveyor.
Botlu inferred resource up 172%
ALLIED Gold has announced a 172% increase
in its inferred mineral resource at the
Simberi Gold Project’s Botlu deposit. Definition
drilling has led to a 271,000 ounce increase
in the newly updated JORC resource
estimate of predominantly sulphide ore,
which includes 8.4 million tonnes @ 1.59
grams/tonne for a total of 429,000 ounces.
Simberi is 85km from Lihir Island in the New
Ireland province of PNG. It commenced production
in 2008, producing 64,000 ounces in
2009-10. Its processing plant is being expanded
to an annual throughput of 3.5 million
tonnes to produce 100,000 ounces each
year by the end of 2011.
The new resource estimate is based on results
from 165 core, RC and aircore drill holes
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Papua New Guinea
Allied’s executive chairman Mark Caruso
says, “Botlu provides another opportunity
and source of additional material for our sulphide
study which has until recently focused
predominantly on the Sorowar and Pigiput
deposits. This upgrade shows that the more
we drill, the more we find and maintains our
track record of continually increasing the Simberi
resource base.”
This news comes after the Simberi mine
was forced to close for four weeks during
March due to a leaking offshore tailings mixing
tank. The company’s environmental consultants
and advisors provided the PNG Department
of Environment and Conservation (DEC)
with a detailed report of repair works carried
out on the tank’s valve and on-shore piping.
The DEC sent two experts to visit the mine
and carry out an independent inspection of
the repair and the operating procedures. Allied
believes its response was in accordance with
world best practice standards.
Mark Caruso says, “Simberi’s March quarter
is likely to fall short of the previous December
quarter because of the suspension of
operations. The good thing is work on the expansion
to 100,000 ounces/annum is moving
ahead and exploration results from the Botlu
pit continue to show the potential for oxide
and sulphide resource extensions.”
Goldminex Resources’ tenements within the Owen Stanley Ranges.
Crater Mountain drill success
GOLD has been intersected in the first drill
hole at the Crater Mountain joint venture between
New Guinea Gold and Gold Anomaly.
Results show gold mineralization of 82 metres
@ 1.62 grams/tonne within 284 metres
@ 0.82 grams/tonne. Crater Mountain is in
the Grasberg-Porgera Corridor in central
PNG, southeast of Ok Tedi and Porgera.
Gold Anomaly exploration director Peter
McNab says, “The results are highly encouraging
as they confirm the presence of a major
alterated and mineralized system with the potential
to define a large bulk tonnage of low
grade gold mineralization, with zones of
higher grade gold mineralization.
“Above 306 metres depth these assays include
significant intervals with average assay
values above 1.5 grams/tonne gold totaling
87 metres @ 2.04 grams/tonne gold. Given
that Crater Mountain is above creek level the
project has the benefit of having lower cut-off
grades in any economic evaluation.”
New Guinea Gold’s acting CEO Bob McNeil
says, “The companies have recently signed
an agreement whereby Gold Anomaly will acquire
our 10% interest in Crater Mountain, in
exchange for 31.25 million Gold Anomaly
shares. These shares will give us great flexibility
in obtaining value for our interest.”
Meanwhile, New Guinea Gold’s drilling,
trenching, geochemical sampling and geophysical
surveys at the Kavursuki mineralized
zone suggest it will ultimately equal or exceed
the oxide mineralization at the company’s
Sinivit gold mine, which is 50km south-southwest
of Rabaul on the Gazelle Peninsula in
East New Britain province.
Twenty one diamond core holes and more
than 3000 metres of excavator trenching have
confirmed a continuous, mineralized structural
zone up to 50 metres in width and 1km in
length. It is variably silicified and mineralized
with silver and gold, and by analogy with the
Sinivit zone, can be assumed that it will prove
of similar strength in copper/gold/tellurium sulphides.
Best results from the drilling include
20.3 metres @ 3.28 grams/tonne gold including
8 metres @ 6.49 grams/tonne.
Bob McNeil says, “Kavursuki is proving to
be a likely source of additional oxide ore to
extend the life of the present mine. In addition,
the style of mineralization and the geophysical
results suggest that the oxide
mineralization is likely to be underlain at depth
by substantial volumes of copper/gold/tellurium
sulphide mineralization. Ultimately, it’s
likely that the Sinivit and Kavursuki zones will
be proven to be one continuous, albeit erratically
mineralized zone.”
New Guinea Gold is investigating financing
the Kavursuki resource for exploration and
definition of the sulphide resource.
Liamu survey confirms potential
RESULTS from a detailed helicopter magnetic-radiometric
survey at Goldminex Resources’
Liamu project in the Owen Stanley
Ranges of southeast PNG have confirmed
the project’s porphyry copper-gold potential.
A total of 2438 line kilometres of geophysical
surveying was flown at a line spacing of 75
metres covering an area of 10km by 15km
over the Liamu intrusive complex, which is
about 100km east of Port Moresby.
Results from a petrographic study on a suite
of mineralized rock samples have also revealed
that the copper-gold mineralization, alteration
and host rock types are similar to other
large deposits worldwide. Several more targets
have been identified for follow-up tests.
Goldminex CEO Sandy Moyle says, “The further
we advance our understanding of the project
area, the more encouraging the system
appears. Several targets generated by the interpretation
of the heli-borne geophysical survey
are peripheral to the known 15sqkm gold
and copper mineralized portion of the Liamu
intrusive complex. We aim to continue aggressive
exploration at Liamu together with key
prospects within the Owen Stanley Ranges.”
Liamu lies within a pliocene intrusive complex
that covers at least 35sqkm hosting zones of
copper-gold mineralization. Exploration work is
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Papua New Guinea
concentrating on extensions of known mineralization
to the north, however porphyry-style
copper and gold mineralization has been found
at several locations within Berefana prospect in
the southern part of the Liamu complex.
The mineralization occurs as disseminations,
veins and stockworks closely associated with
early potassic alteration. Grains of high fineness
gold have been identified as inclusions in chalcopyrite
and also in pyrite, which confirms the
assay results that indicate Liamu has potential
to host a gold-rich porphyry system.
Petrographic results confirm the copper-gold
mineralization at Liamu is hosted by a mixed
suite of potassium-enriched, fine grained intrusive
rocks of predominantly intermediate composition,
which are similar to those commonly
associated with large copper-gold deposits including
PNG’s Ok Tedi and Porgera mines.
Sandy Moyle says the company is reviewing
a joint venture option with potential partners
to enable substantial exploration
programs and advance projects in the Owen
Stanley region. “We are focused on the discovery
of deposits with greater than 2 million
ounces of gold, and our priority exploration
area remains in the Owen Stanley Ranges.”
Andewa drilling scheduled
DRILLING at Frontier Resources’ Andewa
copper and gold project on PNG’s New
Britain Island is expected to begin this month.
A systematic drilling program is scheduled in
a bid to demonstrate the project is a worldclass
gold and/or gold-copper-molybdenum
deposit. Field crews have arrived on site to
prepare for the deep drilling program, using
the company’s own rigs.
More than 5000 soil and rock samples
have confirmed gold, copper, molybdenum,
arsenic and antimony in assay results. Last
year’s soil sampling returned peak soil
grades of 18.9 grams/tonne gold and
0.19% copper. Results from the 21sqkm
grid of soil tested show there is one main
central gold anomaly in excess of 5km-long
and two additional gold-in-soil anomalies
about 1-1.5km-long.
Frontier says these anomalies, called the
Core Chargeability, Ber and Ekhos zones,
compellingly demonstrate the presence of
very large sulphide systems from on-surface
to more than 800 metres deep.
Frontier’s managing director Peter McNeil
says, “The enormous 3D-IP grid we completed
was a calculated risk during a time of
global uncertainty. The program was remarkably
successful and has now rewarded
directors and shareholders for their faith in
the project. We have now geochemically
and geophysically demonstrated the potential
for a large-scale world-class epithermal
gold deposit.
“Much of the gold anomalous area within
the Andewa crater has been adequately defined
for first class exploration.”
Frontier has previously drilled gold mineralization
in a limited program at Komsen on the
western margin of the Core Chargeability
Zone from surface to a maximum depth of
320 metres below surface. Those drill intercepts
contained significant gold and base
metals such as 2 metres @ 5.43 grams/tonne
gold, 95 grams/tonne silver, 11.1% zinc,
2.3% lead and 0.12% copper, and 7.9 metres
of 10.01 grams/tonne gold.
Andewa has good access by sea from the
nearby port of Kimbe and requires only one
bridge for land access by road. Neighbouring
landowners near the coast are in support of
the project and there are no permanent villages
in or near the gridded area.
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Central Asia
EXTENSIVE GOLD DRILLING PROGRAM AT SHAMBESAI
AN extensive drilling and exploration campaign
is under way at Manas Resources’ gold
projects in the Kyrgyz Republic. The company
is drilling up to 20,000 metres with the
aim of significantly increasing its resource
base of 1.13 million ounces of gold.
Six diamond drill rigs and two man-portable
rigs are operating on three separate exploration
projects with the majority of drilling to take
place at the Shambesai project to lift highgrade
oxide resources. Manas also wants to
define more drill targets from 54 exploration targets
across its 4200sqkm of licence areas.
Manas will undertake around 10,000 metres
of drilling at Shambesai with the purpose
of rapidly upgrading all resources in
the current pit optimization, testing areas for
Core samples from Manas Resources’ Shambesai Gold Project.
further shallow oxide at the edge of the existing
resource and defining the zone at the
western boundary of the current pit with the
goal of substantially increasing the resource
and pit extent.
Drilling will also occur at prospects surrounding
Shambesai, including Odbilla,
Shambesai West and Purn. The company
would like to provide additional mineable
oxide that can be trucked to the Shambesai
processing facilities. It will rapidly drill test four
targets, three of which are within 7km of
Shambesai. About 5000 metres of initial
drilling will be undertaken at Shambesai
West, Purn West and Obdilla West.
The final exploration front for 2011 will be
an ongoing regional program that will be carried
out by three field teams. The program will
drill test the massive 3.5km-long, high-tenor
Nurlau gold-in-soil anomaly; complete surface
sampling at the Sumap regional target,
which is about 15km from Nurlau; and complete
further prospecting on up to five of the
54 regional targets.
Manas has budgeted up to $5 million this
year to complete the exploration and drilling
programs. These will run alongside the feasibility
study and mine permitting process for
Shambesai, which has the potential to begin
production in 2012. The study and permitting
are progressing well and are being undertaken
by Manas’ project development team
and local consultants.
A scoping study complete in November
2010 anticipates that Shambesai will produce
its first 100,000 ounces at an average head
grade of 5.7 grams/tonne gold in the first three
years at a cash cost of US$180 per ounce.
Fortis secures potash deposits
ASX-LISTED Fortis Mining has become part
of the global potash phenomenon by securing
the rights to purchase two significant
potash salt deposits in western Kazakhstan.
Fortis has agreed to acquire the rights for a
total cost of $US260 million.
The Chelkar and Zhiliyanskoe salt deposits
have an exploration target range of 6.5-6.6
billion tonnes of potassium deposits, making
them among the world’s largest potash salt
deposits. Chelkar also has an exploration target
range of 102-105 million tonnes of magnesium
deposits.
Acquisition of the assets has been secured
through a variety of share sale agreements
that will result in Fortis acquiring 75% of Hong
Kong-based Ji'an Resources, which owns
the deposits through a number of indirect
shareholdings. The Ji'an acquisition involves
the transfer of 40 million Fortis shares and $1
million cash payment.
Fortis has already paid US$30 million to
secure the rights to the deposits in two instalments
with a third instalment of $230 million
due on July 7.
Both areas were identified by geologists from
the former Soviet Union during the 1950s. A
substantial amount of systematic drilling,
chemical analysis, hydrological surveying, seismic
surveying and interpretation work was
completed on both areas during the 1950s and
early 60s when work ceased. In both areas geological
resources were calculated and classified
to the Soviet resource classification
scheme that was in operation at the time.
Fortis has been provided with original geological
reports of this work which it is translating.
While the work appears to have been
done to a reasonable standard for the time, it
is not considered to comply with the reporting
requirements of the JORC code.
Ji’an is undertaking further drilling and is
working with the new and old data to further
advance the project. Ji’an has a fully resourced
development team of geologists and
engineers in site at Zhiliyanskoe advancing
the project. This group will form the nucleus
of the team which will hopefully bring the project
into production.
Fortis Mining’s executive chairman Jitto
Arulampalam says, “Fortis is very excited by
the future prospects of these two mines to
service the growing demand for potash ore,
especially in China and India which are geographically
located near Kazakhstan.
“Fortis is undertaking further due diligence
on the deposits, but we are confident that
there is only limited investment and time
needed to make the first of these deposits,
Chelkar, operational. Already Fortis has
shown in a reasonably short period of time
that it can secure world-class assets and reward
its shareholders. We have a range of
funding options available to complete the
transaction of securing these two mines.”
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Central Asia
Central Asia Metals sells subsidiary
CENTRAL Asia Metals has reached an agreement
to sell one of its Kazakhstan subsidiaries.
The sale of Tochtar LLP is in line with the corporate
strategy outlined at the time of Central
Asia’s IPO in September 2010.
The sale to Wildorf Holding Ltd for an agreed
consideration of US$2.5 million consists of
US$825,000 in cash and US$1.675 million of
historical cost liabilities.
Central Asia’s chief financial officer Nigel
Robinson says, “Following on from our decision
to cease mining operations at Tochtar in
2009 we are delighted to have sold the subsidiary.
The deal removes the potential historical
cost liabilities and will enable Central Asia’s
management to focus in Kazakhstan on the
delivery of the Kounrad Copper Project.”
Central Asia Metals has interests in a number
of copper, gold and molybdenum mining exploration
and development assets in Kazakhstan
and Mongolia.
In Kazakhstan, the company has advanced
plans for construction of a plant at the former
Kounrad mine that will have the capacity to annually
deliver 10,000 tonnes of near term, lowcost
copper production. It plans to construct
the plant with a joint venture with a Kazakh
government entity, Saryarka.
Kounrad is a former open-pit copper mine
that operated between 1936 and 2005. The
site around the mine contains a number of
dumps of waste material from the mine from
which copper can be extracted through an insitu
leaching process followed by Solvent Extraction
– Electro-Winning (SX-EW).
Initial construction ground-works for the
commercial SX-EW plant have started and production
at the plant is expected to start in the
fourth quarter of 2011. Central Asia also has
exploration opportunities in the region. One of
these is Alag Bayan, an early stage exploration
project in Mongolia, where the company is focused
on outlining a potentially significant copper/gold
porphyry target. This asset is situated
close to the Oyu Tolgoi copper mine being developed
by Rio Tinto and Ivanhoe Mines.
In addition Central Asia plans to develop further
its molybdenum exploration project,
Handgait, and its gold exploration project,
Ereen, both in Mongolia.
New Uzboy gold resource reports expected
ALHAMBRA Resources expects to receive
two new resource reports in the second half
of 2011 covering new deposits at its Uzboy
Gold Project in northern Kazakhstan. Increasing
resources and ramping up production are
the company’s cornerstones for continued
growth during 2011.
An updated NI 43-101 resource report was
expected for the Uzboy deposit by the end of
April while new reports will be delivered by independent
geological consultants ACA Howe
International for the Dombraly and Shirotnaia
deposits by the end of the year.
An updated scoping study for the Uzboy
project was also expected to be received by
the company by the end of April. The study
was based on the NI 43-101 resource report
dated June 2, 2008 and valued the resources
at a gold price of US$850/ounce. The updated
study will be based on the most recent
resource report with a valuation based on
current gold prices.
During the 2011 field season Alhambra anticipates
implementing an exploration program,
subject to sufficient cash flow and suitable financing,
which could range from two to three
times larger than the exploration program completed
in 2010. Drilling will be focused on the
three advanced exploration areas of Uzboy,
Dombraly and Shirotnaia, as well as the four
early stage exploration areas of Kerbay, North
Balusty, Zhanatobe and Vasilkovskoe East.
In addition to the advanced and early
stage exploration areas, Alhambra has an
inventory of about 100 other gold targets
and these are areas of anticipated high potential.
The company anticipates that a
number of these targets will be assessed
further in the remainder of 2011.
During 2010, a number of operational recommendations
were made regarding changes to
Alhambra's mining operations and these are
anticipated to lead to increased efficiency in
gold recovery in 2011. Recommendations include
placing emitters on side slopes to decease
inventory of gold as well as re-leaching
rested older areas of the heaps, heating the
leach pad solution for longer periods of time to
reduce the impact of freezing, and crushing the
harder deeper ores to improve leach recovery.
Alhambra’s tenements are in northern Kazakhstan, adjacent to a number of large gold deposits.
In November 2010, Alhambra executed an
engagement letter with CITIC Securities Corporate
Finance (HK) to act as its financial advisor
and to assess the feasibility of seeking a
dual listing of Alhambra's common shares on
an Asian stock exchange. CITIC continues to
assess this situation.
Uranium business spun-off
AIM-LISTED Eurasia Mining has nominated Energy
Resources Asia (ERA) to be the legal
holder of the Kamushanovsky Uranium Project
in the Kyrgyz Republic. Eurasia jointly owns Energy
Resources Asia with Afrasia Mining & Energy
Investment Holdings.
In January, Eurasia signed a memorandum
of understanding (MoU) to acquire a 55% interest
in Kamushanovsky, an advanced uranium
project in the country’s north.
The project is in the flood plain of the Chui
River, 60km northwest of the capital Bishkek.
It has been the focus of a five-year exploration
program and it is estimated that there
are at least 1775 tonnes of uranium oxide
within the licence area.
The establishment of ERA will allow the uranium
business to be developed separately from
Eurasia’s precious metal business. Optiva Securities
will conduct a fundraising on behalf of
ERA to raise US$2.2 million. The funds will enable
ERA to execute the MoU, acquire the interest
in the project and progress it.
May/June 2011 | ASIA Miner | 67

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India
INDONESIA WILL HELP MEET INDIA’S COAL DEMAND
Above ground infrastructure at Carbon Energy’s
Bloodwood Creek project in Queensland.
EMERGING coal supply areas in Indonesia
will be instrumental in meeting rapidly growing
coal demand from India, according to energy,
mining and metals research consultancy
Wood Mackenzie.
Drawing on information contained within
Wood Mackenzie’s Coal Supply Service and
Global Cost and Margin Tool, coal research
analyst Rohan Kendall told delegates at Coaltrans
India 2011 in New Delhi: “Indonesia will
account for 40% of growth in seaborne thermal
coal supply over the next 10 years, with
the emerging coal areas of the South Sumatra
basin and Wahau coal field making an important
contribution to this growth. There is
US$8 billion of infrastructure projects in the
pipeline in these emerging areas that will support
export growth.”
He said emerging coal regions were a good
fit for developing economies, such as India, because
the basins contained abundant reserves.
These areas were experiencing upstream investment
as Indian power generators such as
Reliance and Adani looked to secure coal supplies
for new power stations.
There are several ultra-mega power plants
being built in India with a capacity of more
than 4000MW each and still more are
planned. The projects currently in development
are similar in capacity to those in China
and are expected to be operational between
the second half of 2011 and 2014.
Rohan Kendall said, “Coal production costs
are low in emerging basins in Indonesia,
which is why they are attractive to Indian
power generators. The costs of investing upstream
to secure coal requirements are much
lower than Indian power generators would
otherwise pay if they were to purchase all of
their coal on the seaborne market. Also, for
power stations that are being built on the
coast, it is more realistic to seek seaborne
supplies which do not depend on India’s rail
network for transport.”
He said that in order for emerging thermal
coal supply areas to fulfil their potential, infrastructure
challenges needed to be overcome.
“There is currently insufficient infrastructure in
these areas to support large scale coal exports.
There are numerous projects proposed
which combined would add 140 million
tonnes per annum of capacity. We believe
that some of these are unlikely to progress
given regulatory challenges.”
Monnet Ispat and Energy (MIEL) is one
company taking this step with acquisition of
PT Sarwa Sembada Karya Bumi's coal mine
in Sumatra, Indonesia, for $24 million.
Spread over 25,000 hectares in Jambi
province, the mine provides MIEL access to
one of the largest thermal coal deposits in the
world and gives it a captive source to fire its
upcoming power projects. MIEL is working on
a 1700MW thermal power plant in Orissa and
plans to put up one more plant of 1300MW
capacity somewhere in Gujarat or Tamil Nadu.
MoU to pursue UCG operations
CARBON Energy has signed a Memorandum
of Understanding (MoU) with Adani Enterprises,
a member of the Adani Group of India, with the
aim of establishing a joint venture in India to pursue
Underground Coal Gasification (UCG).
The first opportunity that Adani and ASXlisted
Carbon Energy will explore has arisen
as a result of Coal India, a Government of
India undertaking, operating a tender process
in which Indian coal firms have sought UCG
technology partners to participate in joint venture
development of UCG interests. The MoU
facilitates the partnership between Carbon
Energy and Adani to jointly participate in this
tender submission.
The MoU is for 18 months during which it is
anticipated that Adani and Carbon Energy will
jointly prepare and submit a bid to establish a
UCG project on Coal India tenements in India.
If the bid is successful, Adani will bear all costs
throughout the exploration phase, including
Carbon Energy's reasonable costs, until exploration
has been successfully conducted
and a suitable UCG resource established.
Adani and Carbon Energy then anticipate
forming a joint venture company in India in
which Adani will have a 75% share and commitment
and Carbon Energy will have a 25%
share and commitment.
India is among the top three fastest growing
economies of the world and its energy needs
are rapidly expanding with its increased industrialization
and capacity addition in power
generation. Coal is the most dominant source
of energy in India's energy mix.
Carbon Energy’s managing director Andrew
Dash says that partnership with Adani brings
significant benefit to the company. “Carbon
Energy will now be pursuing projects on three
continents with the addition of India to our existing
interests in Australia and in Chile. Adani
is a major player in the Indian coal and power
industries and has already established itself
in Queensland, Australia. We are looking forward
to working with Adani to build Carbon
Energy's UCG project base in India.”
Adani Group's president - corporate planning
Harsh Mishra says, “Adani has selected
Carbon Energy as our technology partner for
this important submission to Coal India as it
is the leading proponent of UCG globally and
it has superiority in UCG technology based
on extensive research conducted in conjunction
with Australia's CSIRO.”
Carbon Energy's purpose is to produce
clean energy and chemicals feedstock from
UCG syngas. Its unique approach to UCG
and syngas production produces a low cost
option for capturing CO2, making it a leader
in clean coal technology. Its ambition is for
syngas to become the preferred feedstock for
producing clean coal power stations, an alternative
to oil-based fuel, agribusiness products,
polyolefin products and allowing for
economic carbon capture.
68 | ASIA Miner | May/June 2011

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China
CHINA’S GROWTH PATH STREWN WITH GOLD
BY JOHN MILLER, ASIA MINER EDITOR
CHINA is the dominant force in global gold
production and is playing an increasingly important
role in gold markets as the standard
of living of its 1 billion-plus residents improves
and its economy strengthens.
The future for gold mining in China is huge,
according to Majestic Gold’s president Rod
Husband. “China has gone from number six
producer in the world in 2003 to number one.
South Africa has gone down in terms of production
and China has gone up to more than
10 million ounces a year.”
Majestic is one of a handful of foreign companies
that have remained in China through
the thick and thin of economic booms and
the global financial crisis and is about to reap
the benefits by becoming a large-scale producer
at its Songjiagou project.
Rod Husband told The ASIA Miner that
China has a very high affinity for gold and the
government buys every ounce that’s sold
through the Shanghai Metals Exchange. “Individuals
in China who want gold have to find
other ways to buy it.
“I don’t know what their long-term foreign
exchange strategy is but it seems they are
happy to convert their US dollars to gold and
potentially go to a gold standard. If that is the
case then the gold industry will be in a great
position for years.
“About 10 years ago China opened up the
doors to bring in western exploration expertise,
which helped them change their mining
industry with a lot of resources defined. Some
foreign companies had success and became
miners, like Silvercorp and Eldorado with Majestic
about to do the same, but when the
downturn came many others sold the resources
back to China which is now pushing
them into production.
“This expertise enabled China to increase
production which, together with the economic
boom the country has experienced, means
China has a growing surplus of cash and is
able to take back more control of exploration.”
Majestic came to China in 2003 and was
one of the earliest foreign companies to test
the waters. Today there are not many foreign
companies operating in China. Rod Husband
says in 2005 it was something like 200 but
now there are only about 25. While many Chinese
companies are more proficient at all aspects
of exploration and mining, the global
downturn also took its toll on many foreign
companies in China.
He says with the way deals are structured
in China with joint venture companies having
to contribute capital, the downturn meant
many had difficulty meeting commitments
with the result that the government or Chinese
partners bought back the projects, and
did so at fair value.
“They recognized the work that had been
done and paid fair price. We did that with our
Sawayaerdun project which was fairly remote
and logistically challenging for us. It had huge
potential and we had spent about $8 million
through our joint venture but the government
came and bought it back for $9 million. We
needed that money to focus on Songjiagou
so it was a good deal for everyone.”
The Chinese need resources to feed their
growth and while they are doing much to lift
domestic exploration and production, they
are also looking to overseas sources.
“They want the metal and will get it one way
or another,” Rod Husband says. “Now they
have to buy concentrate at higher prices but
what they want to do is go down the food
chain and add value. With copper the average
global cost for production is $1.50-$1.75
a pound. You can buy copper for $4.30 a
pound or if you mine it you can produce it and
sell the concentrate for $2 a pound and the
value adding goes to the smelter. What China
is looking at is producing from the basic level
in which case the cost of that pound of copper
becomes 50 or 60 cents and the value
gets added in China.
“China is buying up resources around the
world – they are buying juniors in Australia, buying
projects in Africa and investing in Canadian
companies. They went after the big companies
first but did not succeed. They are still interested
in them but have realized it is politically difficult
so now they are buying the future of those big
companies – the juniors. The big companies
currently sustain through acquisitions, buying
junior companies and their resources, thus
maintaining their resource bases. So, China is
now buying many juniors and projects, depriving
big companies of their future resources.”
Rod Husband says China’s influence on the
global gold industry will continue to increase.
“Just look at per capita consumption and
how that has changed. When Majestic entered
China the nation’s annual per capita
gold consumption was just under 0.2 grams,
the world average was about 0.6 and western
countries consumed 0.8. Now China is
up to 0.25 or 0.26 grams and is catching up
to the west. India has a higher affinity than the
west at 1 gram and that’s where we expect
China to get to. If China just gets to the 0.6
gram mark, that’s a 25% increase in consumption,
or 10 million ounces, which is how
much China now produces.
“So what’s going to happen to gold prices
and gold demand There’s no question it’s
going up and up. It is considered by many as
a currency now and all major funds are trading
gold like they trade Dollar-Euro or Dollar-Yen.
There’s probably going to be a lot of pressure
for it to get there, but in terms of demand I can
easily see it going to $3000,” he added.
中 国 发 展 之 路 铺 满 黄 金
中 国 市 场 是 全 球 黄 金 市 场 的 主 导 力 量 , 随 着
超 过 十 亿 人 口 的 生 活 水 平 不 断 提 高 以 及 经 济
发 展 不 断 增 强 , 中 国 因 素 正 在 全 球 黄 金 市 场
中 发 挥 着 日 益 重 要 的 作 用 。
根 据 Majestic 金 矿 公 司 总 裁 Rod Husband
的 观 点 , 在 中 国 进 行 金 矿 开 发 的 前 景 十 分 广
大 。“ 中 国 的 黄 金 产 量 从 2003 年 全 球 第 六 升
至 现 在 的 第 一 位 。 南 非 的 产 量 正 在 递 减 而 中
国 年 产 量 已 经 超 过 一 千 万 盎 司 。”
Majestic 金 矿 公 司 是 屈 指 可 数 的 几 个 历 经
经 济 繁 荣 时 期 和 全 球 金 融 危 机 的 跌 宕 起 伏 后
仍 留 守 在 中 国 的 外 国 公 司 之 一 , 旗 下 的 宋 家
沟 项 目 就 要 开 始 大 规 模 生 产 , 公 司 即 将 收 获
硕 果 。
Rod Husband 告 诉 《 亚 洲 矿 业 》 杂 志 , 中
国 人 喜 爱 黄 金 , 而 政 府 几 乎 买 光 了 所 有 在 上
海 金 属 交 易 所 出 售 的 黄 金 ,“ 中 国 想 买 黄 金
的 个 人 只 能 寻 找 其 他 途 径 购 买 。”
“ 我 不 清 楚 中 国 的 长 期 外 汇 战 略 将 是 什
么 , 但 他 们 似 乎 乐 于 将 美 元 转 换 成 金 条 , 并
且 有 可 能 走 向 金 本 位 制 。 如 果 是 这 样 的 话 那
黄 金 行 业 将 在 未 来 多 年 内 处 于 极 佳 地 位 。”
“ 大 约 十 年 前 中 国 采 取 开 放 政 策 , 引 进 西
方 勘 探 专 业 技 术 , 大 大 改 变 了 中 国 的 矿 业 局
面 , 确 定 了 许 多 资 源 。” 一 些 外 国 公 司 取 得
了 成 功 , 成 为 采 矿 公 司 , 比 如 希 尔 威 矿 业 和
44 | ASIA Miner | May/June 2011

News 3_Layout 1 4/21/11 2:45 PM Page 45
China
埃 尔 拉 多 黄 金 公 司 ,Majestic 公 司 也 是 如
此 。 但 是 当 行 业 不 景 气 时 , 许 多 外 国 公 司 将
项 目 卖 回 给 中 国 , 而 中 国 现 在 正 在 使 这 些 项
目 尽 快 生 产 。
“ 这 些 专 业 技 术 帮 助 了 中 国 提 高 黄 金 产
量 , 再 加 上 这 个 国 家 正 在 经 历 的 经 济 蓬 勃 发
展 , 意 味 着 中 国 有 着 日 益 增 长 的 富 余 现 金 流
收 回 对 资 源 勘 探 的 控 制 权 。”
Majestic 金 矿 公 司 于 2003 年 来 到 中 国 , 是
第 一 批 试 水 的 先 行 者 。 现 在 在 中 国 也 没 有 太
多 处 于 运 营 阶 段 的 外 国 公 司 。Rod Husband
说 2005 年 的 时 候 大 概 有 200 家 , 而 今 只 剩 下
25 家 。 众 多 中 国 企 业 无 论 在 勘 探 还 是 开 采
方 面 都 更 加 精 通 了 , 而 世 界 经 济 衰 退 对 许 多
在 中 国 的 外 国 公 司 打 击 颇 大 。
他 说 这 与 国 内 许 多 项 目 合 作 结 构 有 关 , 一
般 来 说 合 资 公 司 需 要 贡 献 资 本 金 , 而 经 济 危
机 使 得 他 们 难 以 满 足 合 作 时 做 出 的 承 诺 , 结
果 自 然 是 中 国 政 府 或 中 方 合 作 方 以 公 平 的 价
格 将 项 目 赎 回 。
“ 他 们 认 可 前 期 已 投 入 的 工 作 量 所 以 支 付
了 合 理 价 格 。 我 们 的 萨 瓦 亚 尔 顿 就 是 这 样
的 , 这 个 项 目 地 处 偏 远 , 对 我 们 而 言 在 运 输
方 便 是 一 个 挑 战 。 项 目 潜 力 巨 大 , 我 们 在 合
资 公 司 投 入 了 800 万 美 金 , 政 府 回 购 的 价 格
则 是 900 万 美 金 。 我 们 也 需 要 这 笔 钱 投 入 到
宋 家 沟 项 目 , 这 对 合 作 各 方 都 是 一 笔 不 错 的
交 易 。”
中 国 需 要 资 源 来 满 足 经 济 增 长 , 他 们 正 努
力 提 升 国 内 勘 探 和 开 发 , 同 时 也 在 寻 找 海 外
资 源 。
“ 中 国 需 要 金 属 , 他 们 将 以 这 样 或 那 样 的
方 式 获 得 ,” Rod Husband 说 。 “ 现 在 他 们
不 得 不 购 买 价 格 较 高 的 精 矿 , 但 他 们 真 正 想
做 是 深 入 食 物 链 下 游 以 获 取 增 加 值 。 铜 的 全
球 平 均 生 产 成 本 为 1.50 - 1.75 美 元 / 磅 。 你 可
以 以 每 磅 4.30 美 元 的 价 格 购 买 铜 , 或 是 自 己
开 矿 然 后 生 产 并 以 2 美 元 / 磅 的 价 格 出 售 铜 精
矿 , 从 而 铜 冶 炼 厂 获 得 这 部 分 的 附 加 值 。 中
国 正 在 寻 求 的 是 基 本 层 面 上 的 生 产 , 在 这 种
情 况 下 , 每 磅 铜 的 成 本 是 50 或 60 美 分 , 增
加 的 附 加 值 由 中 国 获 得 。
“ 中 国 是 在 世 界 范 围 内 到 处 购 买 资 源 - 他 们
在 澳 大 利 亚 收 购 小 型 公 司 , 在 非 洲 买 项 目 ,
在 加 拿 大 进 行 股 权 投 资 。 他 们 的 首 要 追 逐 目
标 是 那 些 大 型 矿 业 公 司 , 但 没 有 成 功 。 但 他
们 仍 然 感 兴 趣 , 但 意 识 到 这 样 的 方 式 具 有 政
治 困 难 , 所 以 现 在 他 们 购 买 了 未 来 可 能 成 为
大 公 司 的 潜 力 股 —— 小 型 公 司 。 大 公 司 一 般
通 过 收 购 ( 购 买 小 型 公 司 和 其 资 源 ) 来 维 持
他 们 的 资 源 储 备 。 所 以 , 中 国 现 在 正 是 购 买
许 多 小 型 公 司 和 项 目 , 拿 走 了 大 公 司 未 来 的
资 源 来 源 。”
他 还 说 中 国 对 全 球 黄 金 行 业 的 影 响 还 将 继
续 增 强 。“ 只 消 看 一 眼 人 均 消 费 量 以 及 这 个
数 字 是 如 何 改 变 的 。 当 公 司 刚 进 入 中 国 时 那
时 人 均 黄 金 消 费 量 略 低 于 0.2 克 , 那 时 世 界
平 均 水 平 约 为 0.6 克 , 西 方 国 家 为 0.8 克 。 现
在 中 国 人 均 消 费 量 高 达 0.25 甚 至 0.26 克 , 正
在 追 赶 西 方 。 印 度 人 比 西 方 更 热 衷 于 对 金 子
的 消 费 , 人 均 消 费 量 高 达 1 克 , 这 正 是 我 们
预 计 中 国 将 达 到 的 水 平 。 如 果 中 国 的 人 均 消
费 量 停 留 在 0.6 克 大 关 , 也 就 是 说 消 费 增 长
25%, 折 合 10 万 盎 司 金 , 这 是 数 字 正 好 与
中 国 的 现 有 产 量 持 平 。
“ 所 以 说 黄 金 价 格 和 黄 金 的 需 求 将 何 去 何
从 呢 毫 无 疑 问 , 将 逐 步 攀 升 。 许 多 人 都 认
为 金 子 是 一 种 货 币 , 所 有 的 大 型 基 金 都 在 像
交 易 美 元 对 欧 元 或 美 元 对 日 元 一 样 进 行 黄 金
交 易 。 可 能 在 上 升 过 程 中 要 遭 遇 很 多 压 力 ,
但 从 需 求 角 度 出 发 , 我 觉 得 3000 美 元 每 盎
司 不 难 达 到 ,” 他 补 充 说 。
A Majestic transformation
MAJESTIC Gold is transforming from explorer
and very small-scale producer into a largescale
production company through ongoing
development of the Songjiagou Gold Project
in Shandong province.
The company is processing 1400 tonnes
each day through the existing Songjiagou
plant but is in the final stages of constructing
a new mill with daily capacity of 6000 tonnes.
It expects to begin throughput at the new mill
during May, which will bring daily processing
at Songjiagou to 7400 tonnes.
Majestic’s president and CEO Rod Husband
says the company is ramping up mining activity
to feed the new mill with material being
stockpiled at the mill ready for processing.
He says based on a recent preliminary assessment
report prepared by Wardrop, a Tetra
Tech company, Majestic will be able to produce
around 105,000 ounces annually for the
next 22 years, however, the company is considering
additional capacity expansion in the
next few years as 22 years is a lengthy mine
life and it should be more like 10-15 years.
“We are also focused on completing a detailed
five year mine plan and then implementing
it so we have proper grade control. At
present we just dig the dirt and run it through
the mill but once we have a proper plan and
grade control we expect to be able to lift production
substantially, up to 250,000 ounces.”
The Wardrop report also recommends two
phases of exploration designed to upgrade
and expand the resource with the first
phase focusing on increasing the level of
confidence in the shallower portion of the
resource and the second focusing on
deeper mineralization as well as additional
resources at depth and along strike.
Rod Husband says, “It’s an exciting time as
we are just months away from transforming
to a full-on production company and it’s really
largely because we are in China. You can’t do
that in North America – you have to wait for
engineering reports, obtain the capex and
then build the mill.
New processing facilities under construction at Majestic Gold’s Songjiagou project in Shandong province.
May/June 2011 | ASIA Miner | 45

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China
“ 我 们 的 合 作 伙 伴 , 即 公 司 的 大 股 东 , 为
项 目 建 设 提 供 了 资 金 , 他 清 楚 地 知 道 那 里 有
什 么 。 他 曾 经 在 此 进 行 了 长 达 七 年 的 小 规 模
开 采 , 所 以 只 是 一 个 认 识 到 项 目 规 模 效 益 后
进 行 扩 产 的 问 题 。”
他 还 说 Majestic 金 矿 公 司 还 在 评 估 其 他 几
个 中 国 的 项 目 。“ 其 中 一 个 是 位 于 中 国 南 方
的 小 型 露 天 开 采 矿 , 采 用 氰 化 物 浸 出 工 艺 。
正 在 进 行 尽 职 调 查 , 我 们 认 为 它 可 能 含 有
50 万 到 100 万 盎 司 的 金 。”
“ 通 过 这 个 项 目 我 们 将 获 得 事 业 拓 展 所 必
要 的 现 金 流 , 正 如 大 家 所 知 , 在 中 国 有 着 巨
大 的 机 会 。 我 们 面 临 的 地 质 风 险 较 低 , 因 为
介 入 的 是 未 经 充 分 勘 探 的 已 有 矿 山 , 你 所 需
要 做 的 仅 仅 是 将 资 源 钻 探 出 来 , 并 重 新 设 计
开 采 方 案 。”
Rod Husband 说 公 司 同 时 在 考 虑 将 在 中 国
国 内 的 这 部 分 资 产 拿 出 来 在 香 港 上 市 。“ 香
港 平 台 上 的 亚 洲 投 资 者 对 外 国 公 司 具 有 更 开
放 的 态 度 。 上 市 的 成 本 很 高 , 要 求 项 目 至 少
值 一 亿 港 元 以 上 才 划 算 , 我 们 希 望 能 到 达 那
个 阶 段 。”
The Mei Feng Coal Project of China Coal Corporation in Xinjiang province.
“Our partner, the company’s biggest
shareholder, has funded construction as we
progressed because he knows what’s there.
He’s been mining it for seven years on a
small scale and it’s just a matter of recognizing
the economies of scale and making
the operation bigger.”
He says Majestic is evaluating a couple of
other projects in China. “One of them is a
small open pit, cyanide leach operation in
southern China. We are doing due diligence
and think it has the potential to hold between
500,000 and 1 million ounces.
“We will have the cashflow to expand organically
from here and, as everyone knows, there
are tremendous opportunities in China. The
geological risk is low because you do deals on
existing mines that haven’t been explored
properly, so all you have to do is drill out the
resource then redesign the way to mine it.”
Rod Husband says Majestic is also considering
listing Chinese assets on the Hong
Kong exchange. “It seems Asian investors
through Hong Kong have a much more open
attitude towards foreign companies. It’s expensive
to list so you need projects worth at
least $100 million to make it worthwhile and
we are hopeful of getting to that stage.”
Majestic 公 司 的 重 大 角 色 转 换
随 着 山 东 省 宋 家 沟 金 矿 项 目 的 不 断 推 进 ,
Majestic 金 矿 公 司 正 在 从 勘 探 和 小 规 模 生 产
商 转 型 为 大 规 模 生 产 商 。
现 阶 段 该 公 司 的 宋 家 沟 选 厂 日 处 理 量 为
1400 吨 , 正 在 建 设 中 的 规 划 日 处 理 量 6000
吨 的 新 选 厂 已 处 在 收 尾 阶 段 。 预 计 这 一 新
选 厂 将 在 5 月 份 投 产 , 由 此 宋 家 沟 项 目 的 日
处 理 量 将 达 到 7400 吨 。
Majestic 金 矿 公 司 总 裁 长 兼 首 席 执 行 官 Rod
Husband 说 正 在 进 行 矿 山 扩 产 以 满 足 选 厂
的 处 理 量 。 物 料 正 被 堆 积 在 选 厂 准 备 下 一
步 处 理 。
据 他 介 绍 , 根 据 一 份 由 Wardrop 公 司 (
Tetra Tech) 完 成 的 最 新 初 步 评 估 报 告 ,Majestic
金 矿 公 司 将 在 今 后 的 22 年 内 年 产 金
10.5 万 盎 司 , 但 公 司 正 在 考 虑 在 数 年 内 进 一
步 扩 产 ,22 年 的 矿 山 寿 命 相 对 较 长 , 应 该
在 10 至 15 年 之 间 。
“ 我 们 还 在 集 中 精 力 完 成 一 份 详 细 的 五 年
采 矿 计 划 然 后 实 施 , 从 而 做 好 合 适 的 品 位 控
制 。 目 前 我 们 还 只 是 进 行 简 单 的 开 采 然 后 输
送 到 选 厂 , 一 旦 有 了 合 适 的 开 采 计 划 和 品 位
控 制 , 我 们 期 待 将 产 量 大 幅 提 升 到 可 能 高 达
25 万 盎 司 。”
Wardrop 公 司 的 评 估 报 告 建 议 进 行 再 做 两
个 阶 段 的 勘 探 以 提 升 和 扩 大 资 源 量 , 第 一 阶
段 重 点 提 高 浅 部 资 源 的 可 信 度 , 第 二 阶 段 重
点 关 注 深 部 成 矿 以 及 深 部 和 沿 走 向 延 伸 的 更
多 资 源 。
Rod Husband 说 :“ 我 们 离 成 为 一 个 完 全 的
生 产 商 仅 有 几 个 月 的 距 离 , 这 真 是 让 人 激
动 , 这 大 部 分 得 益 于 项 目 是 在 中 国 。 这 要 是
在 北 美 完 全 行 不 通 —— 要 等 设 计 报 告 , 获 得
基 建 成 本 然 后 才 能 建 设 选 厂 。”
Report confirms Mei Feng potential
AN independent report commissioned by
China Coal Corporation in relation to its proposed
acquisition of the Mei Feng Coal Project
in Xinjiang province states that Mei Feng
represents a mineable underground deposit
and orderly extraction of the reserve should
proceed as planned.
The NI 43-101 Technical Report prepared
by Norwest Corp indicates that there is a resource
on the property worthy of current mining
operations, additional exploration and
further development.
The current mine owners have secured all
leases and permits for mining, so the report
states that only maintenance of these is required
in the future. It indicates estimates of required
capital, manpower and equipment for
the surface mine operations are reasonable,
and that projected tonnages are reasonable
based on the reserves associated with the
mine. There are measured and indicated resources
of 18.138 million tonnes and inferred
resources of 892,120 tonnes with potential to
add to this through further exploration. As at
December 16, 2010, the reserve total was
7.692 million tonnes from nine seams. Reserves
are reported on a clean basis rather than a runof-mine
basis because ROM coal is not sold as
a product but further processed to produce a
saleable product suitable for the local market.
China Coal’s chief financial officer Mark
Roth told The ASIA Miner that after listing on
the TSX Venture Exchange in May 2010,
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China
China Coal’s Chinese subsidiary signed an
agreement to acquire 60% of the operating
Mei Feng mine for about 150 million RMB.
He says China Coal then engaged Norwest
to prepare the report and in January this year
formed a Technical Advisory Board to review
operations and acquisitions, and recommend
on safety and expansion projects.
“Construction of an underground mine was
completed last year and a mandatory sixmonth
productivity and safety testing phase
was completed in the third quarter. Mine construction
consists of 6000 metres of tunnels
and initial production from the B3 and B8 metallurgical
coal seams began last September.
“At present annual production is about
300,000 tonnes and China Coal intends to increase
this to 900,000 tonnes.”
Mark Roth says there are two coking plants
within 50km of the mine that require 2.7 million
tonnes of coking coal each year while there are
also three large power plants within 95km that
annually require 6.9 million tonnes of thermal
coal, ensuring strong demand for the coking
and thermal coal found at Mei Feng.
The technical report indicates that the
basic coal quality testing parameters are the
same using either the Chinese standards or
ASTM procedures. It also indicates the B8
seam is uniform with relatively complex
structure but mineable in the whole area,
has a true thickness from 1.04 to 5.33 metres
with an average of 3.06 and continuity
is stable. The B3 seam is relatively uniform
throughout with simple structure, true thickness
is 1.80 to 5.39 metres with an average
thickness of 3.71 metres and continuity is
relatively stable.
Norwest’s visit to the mine verified that
safety equipment had been installed as recommended
in the feasibility study.
China Coal is focused on acquisition of
existing producing, or formerly producing,
coal mines, properties and related assets in
China. As well as acquiring Mei Feng, the
company is undertaking due diligence on
another two mines being considered as acquisition
targets.
The company’s five year objective is annual
production of 5 million tonnes and Mei
Fung will eventually represent almost 20%
of this goal.
报 告 肯 定 美 丰 煤 矿 的 潜 力
中 国 煤 炭 集 团 有 限 公 司 (China Coal Corporation)
委 托 进 行 的 一 份 关 于 新 疆 美 丰 煤 矿
项 目 收 购 的 独 立 报 告 指 出 , 美 丰 煤 矿 是 一 个
可 开 采 的 地 下 矿 床 , 应 按 照 原 定 计 划 有 序 地
进 行 开 采 。
Norwest 公 司 出 具 的 NI 43-101 技 术 报 告 表
明 , 该 矿 的 资 源 值 得 进 行 目 前 的 采 矿 作 业 ,
并 且 值 得 进 行 补 充 勘 探 和 进 一 步 开 发 。
目 前 项 目 业 主 已 获 得 所 有 的 采 矿 租 约 和 许
可 证 , 因 此 报 告 指 出 , 未 来 只 需 要 对 矿 山 设
施 进 行 基 本 的 维 护 保 养 。 报 告 认 为 地 表 开 采
所 需 的 资 金 、 人 力 投 入 和 设 备 配 置 是 合 理
的 , 且 基 于 矿 山 储 量 得 出 的 项 目 矿 石 量 也 是
合 理 的 。
探 明 和 控 制 级 别 资 源 量 是 1813.80 万 吨 ,
推 断 级 别 资 源 量 89.2120 万 吨 , 且 有 进 一 步
通 过 勘 探 工 作 提 升 的 潜 力 。 截 至 2010 年 12
月 16 日 , 九 个 煤 层 的 总 储 量 是 769.2 万 吨 。
且 储 量 估 算 是 按 净 煤 计 算 的 , 而 非 毛 煤 量 ,
因 为 毛 煤 将 不 会 被 直 接 出 售 , 而 是 要 进 一 步
加 工 出 适 合 当 地 市 场 的 可 销 售 产 品 。
中 国 煤 炭 集 团 有 限 公 司 的 首 席 财 务 官 Mark
Roth 告 诉 《 亚 洲 矿 业 》 杂 志 , 公 司 2010 年
5 月 在 多 伦 多 证 券 交 易 所 创 业 板 上 市 后 ,
旗 下 的 中 国 子 公 司 签 署 了 一 份 以 1.5 亿 元
May/June 2011 | ASIA Miner | 47

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China
人 民 币 代 价 收 购 正 在 运 营 中 的 美 丰 煤
矿 60% 权 益 的 协 议 。
他 说 , 公 司 随 后 聘 请 了 Norwest 公 司 准 备
相 关 报 告 , 并 在 今 年 1 月 成 立 了 一 个 技 术 咨
询 委 员 会 , 负 责 审 查 项 目 运 作 和 收 购 , 并 为
矿 山 安 全 和 扩 建 提 供 技 术 建 议 。
“ 地 下 矿 井 建 设 已 于 去 年 完 成 , 强 制 性 的
六 个 月 期 生 产 效 率 和 安 全 性 测 试 也 已 第 三 季
度 结 束 。 矿 山 掘 进 了 长 6000 米 的 巷 道 , 首
采 区 的 B3 和 B8 煤 层 冶 金 煤 生 产 于 去 年 九 月
开 始 。
“ 目 前 年 产 量 约 30 万 吨 , 公 司 计 划 提 高 到
90 万 吨 。”
Mark Roth 说 距 离 煤 矿 50 公 里 内 的 两 家 炼
焦 厂 每 年 需 焦 煤 270 万 吨 , 同 时 方 圆 95 公 里
内 还 有 三 家 大 型 火 电 厂 , 年 需 热 煤 690 万 吨
, 保 证 了 美 丰 煤 矿 出 产 的 焦 煤 和 热 煤 有 着 强
劲 的 需 求 。
技 术 报 告 显 示 无 论 是 中 国 还 是 美 国 ASTM
标 准 检 测 程 序 , 煤 炭 质 量 检 测 的 基 本 参 数 都
相 同 。 这 也 意 味 着 B8 煤 层 均 一 性 较 好 , 相
对 结 构 复 杂 但 全 部 可 采 , 真 实 煤 层 厚 度 介
于 1.04 米 到 5.33 米 之 间 , 平 均 3.06 米 , 连 续
性 稳 定 。B3 煤 层 从 头 到 尾 相 对 均 一 , 结 构
简 单 , 真 实 厚 度 介 于 1.80 米 到 5.39 米 之 间 ,
平 均 3.71 米 , 连 续 性 相 对 稳 定 。
Norwest 公 司 的 现 场 考 察 核 实 , 已 按 可 行
性 研 究 建 议 在 矿 井 安 装 了 安 全 设 备 。
中 国 煤 炭 集 团 有 限 公 司 的 业 务 核 心 是 收 购
中 国 国 内 目 前 正 在 生 产 或 曾 经 生 产 的 煤 矿 或
其 他 矿 种 及 其 相 关 资 产 。 除 了 收 购 美 丰 项 目
外 , 该 公 司 正 就 另 外 两 个 收 购 目 标 矿 山 进 行
尽 职 调 查 。
该 公 司 的 五 年 期 目 标 是 年 产 煤 500 万 吨 ,
美 丰 最 终 将 贡 献 这 一 目 标 的 近 20%。
First phase expansion at Pingyao facility
WORK is under way on the first phase expansion
of China Magnesium Corporation’s
Officials from Pingyao County and China Magnesium Corporation at the
ground breaking ceremony for the Pingyao Magnesium Project first phase expansion.
Pingyao Magnesium Project in Shanxi
province. The expansion will bring total annual
capacity at the processing facility to
20,000 tonnes.
Earthworks have started after China Magnesium’s
subsidiary CMC China was formally
granted 50 year land use rights for the expansion.
The granting of the rights, which cover
60,000 square metres adjacent to the existing
plant, enables CMC China to boost annual
production to 20,000 tonnes by the end
of 2011 and 105,000 tonnes by 2013.
Capital works to upgrade and refurbish the
existing plant began in December 2010
while earthworks on the new land began
after a ground-breaking ceremony in early
March. The Pingyao County Government
arranged and hosted the ceremony, which
was attended by Pinhyao Mayor Hui Zhing
Li and more than 100 other officials. The
Mayor said, “Our government will fully support
your magnesium company because it is
one of the eight key projects in the Shanxi
province and the city’s number one project.”
China Magnesium’s executive director and
chief operating officer Xinping Liang said, “The
company enjoys a high degree of respect from
the local community and government, and we
are fortunate to have this depth of local support.
Also, we are excited to have reached this
stage in development of the project, for which
both the existing plant upgrade and first phase
expansion are still very much within budget
and on or ahead of time.”
China Magnesium believes it will benefit
from the recent announcement by China’s
Ministry of Industry and Information Technology
of strict new conditions for companies
working within or planning to enter the
magnesium industry in China. The conditions
set high standards for the layout, production
capacity and environmental
protection for the industry.
The conditions for existing and future magnesium
production facilities are:
• Existing refineries - must have annual production
capacity of at least 15,000
tonnes. If an existing refinery wishes to
apply for renovation or expansion, it will
need to have a production capacity of at
least 20,000 tonnes.
• New refineries - Must have a planned capacity
of at least 50,000 tonnes.
In addition new refining projects will be prohibited
in areas 1km from drinking water
sources, basic farmland protection areas,
natural reserves, scenic spots and other
areas that require strict environmental quality.
China Magnesium’s managing director Tom
Blackhurst says, “China produces more than
80% of the world’s magnesium and a significant
proportion of this is from low capacity
magnesium plants. China Magnesium is in
the enviable position of having permits in
place covering not only the current first phase
expansion to 20,000 tonnes, but for increases
up to 105,000 tonnes.
“The conditions are intended to ensure the
industry operates in an efficient and environmentally
responsible manner. It will consolidate
the company’s position as we will be
one of the first producers to meet the new industry
standards through the upgrade of existing
facilities and first phase expansion.”
平 遥 项 目 一 期 扩 建
中 国 镁 业 有 限 公 司 在 山 西 省 平 遥 的 镁 金 属 项
目 开 始 一 期 扩 建 。 此 次 扩 建 将 把 年 生 产 能 力
提 升 至 20000 吨 。
在 中 国 镁 业 的 子 公 司 (CMC 中 国 ) 获 得 第
一 阶 段 扩 建 所 需 的 50 年 土 地 使 用 权 后 , 土
木 工 程 随 即 展 开 。 获 批 的 土 地 使 用 面 积 共 计
6 万 平 方 米 毗 邻 现 有 工 厂 , 扩 建 将 使 CMC(
中 国 ) 的 年 生 产 能 力 在 2011 年 底 之 前 达 到
20000 吨 , 在 2013 年 达 到 105000 吨 。
升 级 和 翻 新 现 有 工 厂 的 基 础 建 设 工 程 已 在
2010 年 12 月 开 始 , 在 2011 年 3 月 份 随 着 奠 基
仪 式 的 举 行 土 木 工 程 建 设 也 随 即 展 开 。 奠 基
仪 式 由 平 遥 县 政 府 主 持 , 包 括 平 遥 县 县 长 李
非 忠 在 内 的 100 余 位 官 员 参 加 了 奠 基 仪 式 。
李 非 忠 说 :“ 我 们 将 全 力 支 持 镁 业 公 司 , 该
项 目 是 山 西 省 八 大 重 点 项 目 之 一 , 也 是 平 遥
县 最 重 要 的 项 目 。”
中 国 镁 业 公 司 总 经 理 和 首 席 运 营 官 梁 新 平
说 :“ 中 国 镁 业 公 司 受 到 了 当 地 政 府 的 高 度
重 视 , 我 们 十 分 幸 运 能 够 获 得 当 地 政 府 如 此
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China
大 的 支 持 。 现 有 设 备 升 级 和 一 期 扩 建 成 本 完
全 在 预 算 当 中 且 在 时 间 上 早 于 预 期 , 我 们 为
目 前 开 发 已 取 得 的 成 绩 欢 欣 鼓 舞 。”
工 业 和 信 息 化 产 业 部 日 前 出 台 新 规 , 对 镁
行 业 业 内 公 司 或 准 备 进 入 镁 行 业 的 公 司 提 出
了 严 格 的 要 求 , 中 国 镁 业 相 信 其 将 从 中 获
益 。 新 规 对 于 镁 的 生 产 设 计 、 生 产 能 力 和 环
境 保 护 设 定 了 很 高 的 标 准 。
新 规 规 定 :
• 已 有 精 炼 厂 — 年 生 产 能 力 必 须 在 15000 吨
以 上 。 若 已 在 产 的 精 炼 厂 申 请 改 扩 建 ,
则 年 生 产 能 力 需 在 20000 以 上 。
• 新 精 炼 厂 — 设 计 年 生 产 能 力 须 在 50000 吨
以 上 。
除 此 之 外 , 新 的 精 炼 厂 项 目 需 建 设 在 水 源
地 、 基 本 农 田 保 护 区 、 自 然 资 源 、 名 胜 地 和
其 他 需 要 严 格 环 境 保 护 的 地 区 1 公 里 之 外 。
澳 大 利 亚 中 国 镁 业 公 司 董 事 汤 姆 :“ 中 国
生 产 了 世 界 上 80% 的 镁 , 这 其 中 很 大 部 分 产
在 低 产 能 的 小 工 厂 。 中 国 镁 业 引 以 为 豪 的 是
我 们 不 仅 被 批 准 进 行 一 期 扩 建 使 生 产 达 到
20000 吨 , 更 会 将 产 能 提 升 至 105000 吨 。”
“ 新 规 的 出 台 旨 在 使 镁 生 产 行 业 在 更 加 有
效 率 、 更 加 环 保 的 状 态 下 运 行 。 通 过 对 已 有
设 施 的 升 级 和 一 期 扩 建 , 我 们 将 成 为 首 批 符
合 新 规 的 企 业 之 一 , 这 将 稳 固 我 们 在 行 业 中
的 地 位 。”
Further expansion plans at Aohanqi
AFTER achieving daily capacity of 500 tonnes
at the Aohanqi Gold Project’s processing
plant, Sino Prosper State Gold Resources
Holdings has confirmed plans to expand capacity
to 2000 tonnes and is ordering equipment
to achieve this. The company will also
construct a new refinery with ultimate annual
output capacity in excess of 1 million ounces
of 99.99% pure gold.
The Hong Kong listed company purchased
the operating Aohanqi project in Inner Mongolia,
north of the border with Liaoning
province, in 2009 and has significantly expanded
operations along with undertaking
ongoing exploration.
Sino Prosper aims to become a major Chinese
precious metals producer through acquisition
of producing or near production
properties that can result in increasing resources
and production per share.
Since the Aohanqi acquisition Sino Prosper
has installed new processing plant equipment
and accessory equipment, and has completed
the first phase tailing pond. The plant
achieved its daily capacity by the end of December
2010 and has operated with lower
initial feed stock grade than planned while a
new headframe was completed, allowing access
to main ore body.
Sino Prosper has reconstructed tunnels
and supporting facilities taking daily mining
capacity from 200 tonnes to about 600
tonnes. New mine construction, including
four new, larger vertical shafts and connecting
tunnels will bring daily mine output capacity
to about 2500 tonnes on completion by
the end of 2011.
The company has made plans for an expanded
drilling program during the Northern
Hemisphere spring and summer to advance
the preparation of JORC resource reporting
and to explore new geologic mineralization.
The Aohanqi mining area has also been expanded
from the original 2.07sqkm to
2.70sqkm and the company aims to expand
the licence area to 6sqkm.
Sino Prosper is also developing the
Zhongyi–Weiye Heilongjiang Mine, a production-ready
polymetallic gold property in Heilongjiang
province with five exploration
licensed tenements.
Initial exploration work has focused on developing
resources based on the prevailing
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China
relevant Chinese standards with an aim to
obtain conversion of the exploration licenses
covering 364.61sqkm to mining permits
as soon as possible. Sino Prosper
expects to convert first exploration licence
to a mining licence within the current year,
with the objective of the earliest possible initial
production.
敖 汉 旗 项 目 扩 建 计 划
在 敖 汉 旗 金 矿 项 目 选 矿 厂 的 日 处 理 矿 石 能
力 达 到 500 吨 后 , 中 盈 国 金 资 源 控 股 有 限
公 司 确 认 其 计 划 将 日 处 理 能 力 提 升 至 2000
吨 并 正 为 此 订 购 设 备 。 公 司 亦 将 会 为 之 配
套 建 设 一 个 年 生 产 100 万 盎 司 99.99% 纯 金
的 精 炼 厂 。
这 个 在 香 港 上 市 的 公 司 于 2009 年 收 购 了 位
于 内 蒙 古 境 内 、 北 与 辽 宁 省 接 壤 的 敖 汉 旗 项
目 , 并 已 在 继 续 勘 探 该 项 目 的 同 时 极 大 地 对
其 进 行 了 扩 容 。
中 盈 希 望 通 过 收 购 在 产 或 即 将 生 产 的 项 目
来 增 加 其 资 源 和 每 股 生 产 能 力 , 目 标 是 成 为
中 国 主 要 的 稀 有 金 属 生 产 者 。
中 盈 在 收 购 敖 汉 旗 项 目 后 , 已 完 成 新 的 选
矿 设 备 及 附 属 设 备 的 安 装 , 并 完 成 了 第 一 阶
段 尾 矿 库 的 建 设 。 该 选 矿 厂 于 2010 年 12 月
底 前 达 到 了 前 述 的 日 处 理 能 力 且 运 行 中 的 初
始 进 料 等 级 低 于 计 划 , 一 个 可 直 达 主 矿 体 的
竖 井 也 在 同 期 建 成 。 中 盈 已 对 隧 道 和 供 应 设
备 进 行 了 改 造 使 日 处 理 矿 石 能 力 从 200 吨 提
升 至 大 约 600 吨 。 在 2011 年 年 底 之 前 , 包 括
4 个 新 的 更 大 的 垂 直 立 井 和 连 接 隧 道 在 内 的
新 设 施 的 建 成 , 将 会 使 日 处 理 矿 石 能 力 提 升
至 大 约 2500 吨 左 右 。
该 公 司 计 划 于 北 半 球 的 春 季 和 夏 季 开 展 更
大 的 钻 探 项 目 以 加 速 JORC 资 源 报 告 的 准 备
并 勘 探 新 的 成 矿 带 。
敖 汉 旗 矿 区 已 由 2.07 平 方 公 里 扩 大 至 2.70
平 方 公 里 , 公 司 的 目 标 是 将 其 扩 大 致 6 平 方
公 里 。
与 此 同 时 , 中 盈 还 在 开 发 黑 龙 江 中 谊 伟 业
项 目 , 该 多 金 属 矿 位 于 黑 龙 江 省 , 中 谊 项 目
现 持 有 5 个 勘 探 权 矿 区 。 前 期 的 勘 探 工 作 的
重 点 是 按 照 中 国 现 行 的 有 关 标 准 进 行 探 矿 ,
目 的 在 于 尽 快 将 364.61 平 方 公 里 的 探 矿 权 转
化 为 开 采 权 。 中 盈 希 望 在 本 年 度 内 将 第 一 个
矿 区 的 探 矿 权 转 化 为 采 矿 权 , 并 希 望 尽 早 得
到 产 出 。
Silvercorp closes BYP acquisition
SILVERCORP Metals has received the necessary
Chinese government approvals, including
military clearance, to acquire 70% of Yunxiang
Mining Co, a private mining company in Hunan
province and whose primary asset is the BYP
Gold-Lead-Zinc mine 220km southwest of
Changsha. BYP has a mining permit covering
3.67sqkm, a safety production permit and
flotation mill with daily capacity of 400 tonnes.
As a result of the acquisition, Yunxiang is converted
into a Sino-Foreign joint venture company
and Silvercorp has taken control.
Total consideration for the 70% interest is
US$33 million. Silvercorp has paid US$19
million, representing 80% of the required payment
for the share purchase, and is required
to make a US$9 million equity capital investment
to Yunxiang. It will make payment of the
remaining 20% after certain conditions, including
completion of a government tax audit
of Yunxiang, are satisfied.
Silvercorp intends to utilize the flotation mill
to mine and process gold starting from the
2012 financial year, initially focusing on higher
grade materials. Concurrently, it plans to expand
daily mining and milling capacity to
1000 tonnes for 2013 and to 2000 tonnes by
2014 with the latter to include 1000 tonnes
of gold mineralization and 1000 tonnes of
lead-zinc mineralization.
A mineralized sample from
Silvercorp Metals’ TLP project.
A 50,000 metre drilling program has been
planned for BYP with the aim of upgrading current
historical resources and expanding the
mineralization bodies along strike and downdip.
A Canadian engineering firm has been engaged
to complete a NI 43-101 report on the
project and a Chinese engineering firm will be
engaged to design a full plan for mining development
and mill construction. Based on internal
analysis, it is possible that the expansion of
the production and exploration drilling will be financed
by cash flow generated by Yunxiang.
Silvercorp is the largest primary silver producer
in China through the operation of four
silver-lead-zinc mines at the Ying Mining Camp
in Henan province. It is building the GC silverlead-zinc
project in Guangdong province as its
second China production base and foothold,
and this will be followed by the third production
foothold at BYP.
For the nine months ended December 31,
2010, the company mined 466,639 tonnes of
ore, a 43% increase from the same period in
2009. Increased production from the TLP,
HPG, and LM mines contributed to the
record mine production.
During the 2012 financial year which started
on April 1, production from the four Ying
Camp mines is expected to increase to
600,000 tonnes of ore at a grade of 325
grams/tonne silver, 0.4 grams/tonne gold,
6% lead and 1.9% zinc, yielding 5.6 million
ounces of silver, 4000 ounces of gold, and 90
million pounds of lead and zinc. In this period
BYP is expected to mine and mill 130,000
tonnes of ore at a grade of 7 grams/tonne
gold, yielding about 26,000 ounces of gold.
Exploration is ongoing at the Ying projects
with underground drilling discovering 18 new
veins at the TLP Mine and 12 new veins at
the LM Mine with numerous high grade pockets
identified.
完 成 对 BYP 金 - 铅 - 锌 矿 的 收 购
希 尔 威 金 属 矿 业 公 司 对 Yunxiang 矿 业 公 司
70% 股 份 的 收 购 已 获 中 国 政 府 相 关 部 门 批
准 。Yunxiang 矿 业 公 司 是 一 家 位 于 湖 南 省 的
私 营 企 业 , 其 主 要 资 产 为 距 长 沙 西 南 220 公
里 的 BYP 金 - 铅 - 锌 矿 。
BYP 拥 有 3.67 平 方 公 里 的 探 矿 权 , 安 全 生
产 许 可 和 一 座 日 处 理 能 力 400 吨 的 浮 选 厂 。
收 购 完 成 后 ,Yunxiang 矿 业 公 司 的 企 业 性 质
变 为 中 外 合 资 , 希 尔 威 公 司 拥 有 控 制 权 。
该 70% 股 权 的 收 购 价 格 为 3300 万 美 元 。 希
尔 威 已 支 付 1900 万 美 元 , 占 收 购 股 份 所 需
支 付 额 的 80%, 并 将 支 付 900 万 美 元 作 为
Yunxiang 矿 业 公 司 股 东 权 益 。 剩 余 的 20% 将
会 在 特 定 事 项 完 成 后 支 付 , 其 中 包 括 政 府 对
Yunxiang 矿 业 公 司 的 税 务 审 计 。
希 尔 威 公 司 计 划 于 2012 财 年 将 浮 选 磨 机 用
于 金 矿 的 开 采 和 遴 选 , 初 期 主 要 用 于 高 品 位
矿 石 。 同 时 , 该 公 司 计 划 在 2013 年 提 高 日
开 采 和 研 磨 能 力 至 1000 吨 , 在 2014 年 提 高
至 2000 吨 , 其 中 处 理 金 矿 石 1000 吨 , 铅 - 锌
矿 石 1000 吨 。
一 个 针 对 BYP 矿 的 50000 米 钻 探 计 划 已 被
制 定 , 目 的 在 于 升 级 历 史 资 源 和 延 成 矿 带 以
及 向 下 拓 展 矿 化 体 。
一 个 来 自 加 拿 大 的 工 程 公 司 将 完 成 NI 43-
101 报 告 , 而 一 个 来 自 中 国 的 工 程 公 司 将 为
采 矿 的 开 发 和 研 磨 的 建 造 设 计 总 体 方 案 。 根
据 内 部 消 息 , 生 产 扩 建 和 钻 探 所 需 的 资 金 将
由 Yunxiang 矿 业 筹 集 。
通 过 在 河 南 省 的 Ying 矿 区 运 营 4 个 银 - 铅 - 锌
矿 , 希 尔 威 成 为 了 中 国 最 大 的 原 生 白 银 生 产
商 。 其 正 在 广 东 省 建 造 GC 银 - 铅 - 锌 项 目 作
为 其 在 中 国 的 第 二 个 生 产 基 地 和 立 足 点 ,
BYP 矿 将 是 第 三 个 。
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China
2010 年 后 9 个 月 , 该 公 司 共 开 采 466,639 吨
矿 石 , 与 2009 年 同 期 相 比 增 长 43%。 这 些
增 长 主 要 来 自 TLP, HPG, 和 LM 矿 的 增 产 。
4 月 1 日 开 始 的 2012 财 年 ,Ying 矿 区 的 4 个
银 - 铅 - 锌 矿 开 采 的 矿 石 量 预 计 将 增 值 600000
吨 , 其 中 银 325 克 / 吨 , 金 0.4 克 / 吨 ,6% 的
铅 和 1.9% 的 锌 , 将 产 出 560 万 盎 司 的 银 ,
4000 盎 司 的 金 和 9000 万 磅 的 铅 和 锌 。 同 期
BYP 矿 计 划 开 采 和 研 磨 130000 吨 的 矿 石 ,
其 中 金 的 品 位 为 7 克 / 吨 , 将 产 出 26000 盎 司
的 金 。
Ying 矿 区 的 勘 探 工 作 仍 在 进 行 中 , 通 过 地
下 钻 探 , 在 TLP 矿 共 发 现 18 条 新 的 矿 脉 , 在
LM 矿 发 现 12 条 矿 脉 , 以 及 为 数 众 多 的 高 品
位 矿 囊 。
Blackgold acquires WuShan mine
CHINESE coal mining company Blackgold International
Holdings has made its first acquisition
since its February ASX listing with the
purchase of a Chinese coal mine for RMB 80
million (about Aus$12 million). It has entered
into a Heads of Agreement to buy Chongqing
Yihua Mining, owner of the WuShan mine in
Wushan county, Chongqing province in
south-west central China.
The acquisition is subject to a satisfactory
due diligence being completed, as well as
being subject to the execution of a final
agreement in accordance with Chinese law
and securing the necessary approvals from
the relevant Chinese authorities.
Blackgold's chairman James Tong says the
WuShan acquisition is in line with the expansion
plans articulated in the company's ASX
prospectus and should have two benefits for
the company.
“WuShan is anticipated to represent nearterm
production that will significantly increase
Blackgold’s annual coal production volume,
and additional exploration and evaluation at
the WuShan mine by a JORC qualified independent
geologist is proposed and is expected
to allow for an increase in Blackgold’s
JORC assessed resources.
WuShan is a highly developed, pre-production
thermal coal mine about 20km from
Blackgold’s existing operations. The mine
contains five existing production adits together
with ventilation and access shafts and
ancillary infrastructure including power, piped
water, access roads and buildings.
WuShan is close to river port loading facilities
and has historically supplied small quantities
of thermal coal. Blackgold anticipates
commercial coal production beginning immediately
after machinery and equipment are installed
and commissioned and expects that
this will occur within four months of the acquisition
being finalized.
黑 金 环 球 收 购 巫 山 煤 矿
在 2 月 份 登 陆 澳 大 利 亚 证 券 交 易 所 后 , 中 国
煤 矿 公 司 黑 金 环 球 控 股 以 8000 万 元 人 民 币 (
大 约 1200 万 澳 元 ) 的 价 格 收 购 了 一 个 中 国 的
煤 矿 。 黑 金 环 球 已 缔 结 收 购 重 庆 宜 化 矿 业 有
限 公 司 ( 巫 山 煤 矿 的 所 有 者 ) 股 权 的 协 议 。
巫 山 煤 矿 位 于 中 国 西 南 部 重 庆 市 巫 山 县 。
本 次 收 购 涉 及 已 完 成 的 令 人 满 意 的 尽 职 调
查 , 且 按 照 中 国 的 相 关 法 律 和 有 关 当 局 的 批
文 。 执 行 最 终 协 议 。
黑 金 主 席 唐 志 浩 先 生 表 示 , 收 购 巫 山 煤
矿 , 与 招 股 书 中 说 明 的 扩 展 计 划 一 致 , 将 为
公 司 带 来 两 大 好 处 : 巫 山 煤 矿 若 可 近 期 投
入 生 产 , 将 使 黑 金 的 煤 炭 年 产 量 出 现 显 著 增
长 , 联 合 矿 石 储 量 委 员 会 的 独 立 地 质 学 家 对
巫 山 煤 矿 进 行 额 外 的 勘 探 和 评 估 , 预 计 会 增
加 黑 金 符 合 评 估 标 准 的 资 源 。
巫 山 煤 矿 是 一 家 发 展 动 力 煤 前 期 作 业 的 煤 矿
, 距 离 黑 金 目 前 的 两 个 煤 矿 20 公 里 内 。 煤
矿 包 含 5 个 生 产 入 口 , 连 同 其 风 井 和 竖 井 通
道 , 和 所 有 辅 助 性 基 础 设 施 , 如 : 电 力 , 自
来 水 , 通 路 和 相 关 建 筑 都 已 建 好 。
巫 山 煤 矿 距 离 货 运 码 头 很 近 , 该 码 头 之 前 曾
装 载 运 输 过 少 量 的 热 煤 。 一 旦 安 装 , 调 试 好
机 器 设 备 , 就 可 立 即 作 业 , 投 入 生 产 。 巫 山
煤 矿 将 在 收 购 完 成 后 4 个 月 内 投 入 生 产 。
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Philippines
ALLIANCE PLANS COUNTRY’S SECOND NICKEL PLANT
THE alliance between Sumitomo Metal Mining
and Nickel Asia Corp will spend US$1.4
billion to build a second nickel processing
plant in the province of Surigao del Norte.
Sumitomo will have about a 55% stake in the
project and Nickel Asia about 22.5% with the
rest of the shares divided under a joint venture
company called THPAL Corp.
Nickel Asia’s president and CEO Gerard
Brimo says construction of the country’s second
downstream nickel processing plant will
start this year and take two years to complete.
“We expect to finish the project in the
middle of 2013.”
The plant will be constructed adjacent to the
nickel mine of Nickel Asia subsidiary Taganito
Mining Corp, which will supply the plant's required
nickel ore over an estimated 30-year
period. Sumitomo will purchase the output of
the plant, a mixed nickel-cobalt sulphide, for
final processing at its refinery in Japan.
The Taganito plant will use high-pressure
acid leach (HPAL) technology, which employs
low-grade laterite ores, which previously were
usually abandoned, to produce nickel.
Sumitomo, which is Japan’s top nickel producer,
also intends to spend US$168 million
to beef up capacity at a Japanese nickel refinery
to handle raw metal produced at the
Taganito project. It plans to increase annual
refining capacity at its Niihama plant to
65,000 tonnes in the 2013/14 financial year
from the current 41,000 tonnes. The expansion
work is expected to be completed in the
first quarter of 2013.
The new Taganito processing plant is also
considered particularly beneficial to the Philippines
because of the value-added created by
the downstream mineral processing plant, including
14,000 jobs and an increase in the
country's foreign exchange reserves.
Gerard Brimo says the new plant will have a
capacity more than three times that of the first
plant under Coral Bay Nickel Corp, a joint venture
between a Japanese consortium led by
Sumitomo and Rio Tuba Nickel Mining Corp,
which is another Nickel Asia subsidiary.
Constructed adjacent to the operations of
Rio Tuba in southern Palawan, the first plant
became operational in 2005 and has been a
technical and commercial success. Its initial annual
capacity of 10,000 tonnes of nickel metal
equivalent has since been more than doubled.
Sumitomo has recently introduced new equipment
at the Coral Bay HPAL plant, upgrading
annual capacity by 10% to 24,000 tonnes.
New drilling program at Alpha
MBMI Resources has started an 8000 metre
drill program on the Alpha Nickel Project in
Palawan focusing on detailed mine planning
as well as exploration beyond the limits of the
60 hectare area previously permitted.
The drilling contractor's 11 tungsten-carbide
core drill rigs and associated equipment
arrived at the Alpha project site at the end of
March, were mobilized to target areas and
began drilling on the property on April 9.
The 8000 metre drill program is the first
phase of a much larger program. Past exploration
activities have identified accessible highgrade,
exposed nickel and chrome materials
zones within the 3200 hectare property.
The majority of the drilling will focus on
grade control to identify and confirm detailed
data required to expand and define high priority
areas for continued mining. The grade
control holes will be completed to a maximum
depth of 15 metres and drilled on a 15
metre by 15 metre spacing.
The remainder of the program will consist
of exploration holes drilled to a maximum
depth of 25 metres on a 50 metre by 50
metre spacing focused in an area where
mapping and test pitting have shown highly
prospective results. These exploration holes
will be outside the boundary of the 60 hectare
area previously explored and will expand currently
delineated areas to confirm sufficient resources
for future development operations.
MBMI’s president and director Michael
Mason says, “This first phase of drilling is designed
as an intensive and systematic exploration
program to develop and confirm results
to expand the independent mineral resource
on Alpha. In addition, the grade control drilling
will provide the company and our partners
with the required data to continue mining and
development of this project.”
MBMI is focused on the exploration and development
of nickel properties and with its
Philippine partners maintains a Financial or
Technical Assistance Agreement (FTAA) with
the Philippine government with respect to the
Alpha, Bethlehem and Rio Tuba properties.
The FTAA allows MBMI and its partners to
progress toward development of full-scale
operational programs at each property.
A stockpile of ore at MBMI’s Alpha Nickel Project in Palawan.
54 | ASIA Miner | May/June 2011

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Philippines
The Agsao shaft at Medusa’s Co-O Gold Project on Mindanao.
The company is using funds raised in recent
private placements and financing arrangements
to accelerate exploration at Alpha and
Bethlehem. A $3.8 million placement in March
which increased Gwynneth Gold’s stake in
MBMI to 12.7%, a $5.8 million private placement
in February and the securing of a $7 million
pre-advance payment in late November
have boosted the company’s finances.
Exceptional Co-O gold assays
EXCEPTIONAL assay results are being obtained
by Medusa Mining from a new wide,
sub-vertical, high grade zone within the mine at
the Co-O Gold Project. The underground drilling
has returned 13.10 metres @ 47.81 grams/
tonne gold, 9.65 metres @ 12.58 grams/tonne
and 4.8 metres @ 13.84 grams/tonne.
Surface drilling in and around the mine has
also provided strong results including 2 metres
@ 219.17 grams/tonne, 0.8 metres @ 42.33
grams/tonne, 1 metre @ 31.45 grams/tonne
and 1.15 metres @ 12.49 grams/tonne.
A recent assessment of the Co-O Mine vein
architecture by independent structural geology
consultants described strong similarities of the
vein system structure and aerial extent to the
Martha Mine epithermal vein system in New
Zealand which produced about 5.6 million
ounces of gold from the 1870s to 1952 and
was mined to around 600 metres in depth.
Medusa’s managing director Geoff Davis
says, “The continuing good results from the
Co-O vein system and surrounds are extremely
pleasing, including the discovery of a
new exceptionally wide and high grade zone
within the mine by underground drilling.
“I also wish to emphasise that, as we drill new
vein systems, drill intersections in veins rarely
provide ore-grade intersections in every hole.
As our data base grows, and the characteristics
of each vein become clearer, statistical assessment
of the percentage of ore-grade drill
hole intersections required, maybe as low as
40% of holes with ore grade intersections, will
increasingly provide the levels of certainty for
turning exploration drill results into ore that can
be developed with confidence.”
Medusa is confident that the ongoing exploration
can provide additional ore for the Co-O
processing plant, thus increasing the mine life.
The revised forecast gold production for the
fiscal year to June 30, 2011, is now a record
May/June 2011 | ASIA Miner | 55

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Philippines
102,000 ounces at anticipated cash costs of
US$190 per ounce. Geoff Davis says, “I am
pleased to report that operations have continued
smoothly with the company achieving
record production at the low average cash
cost of US$186 per ounce for the first six
months of the financial year.”
Mine development is continuing with the
sinking of the Saga Shaft under way and the
start of a new adit to access the Royal Veins
and the newly discovered North Tinago vein
systems. Late last year the company’s Board,
approved construction of a new Co-O plant
with capacity to annually produce 200,000.
Capital requirements of the plant, including
mine development, are estimated at US$80
million and will be funded out of cashflow. The
preliminary construction schedule after regulatory
permitting is estimated to be 21 months.
Medusa is currently advancing the permitting
process and is engaged in discussions with
engineering design and construction groups.
Royalco attracts new investor
MICROCAP investment manager Acorn Capital
has taken a 19% stake in Australia-based
Philippine explorer Royalco Resources. The
change occurred earlier in the year after South
Australian focused copper and gold miner OZ
Minerals offloaded its 18.97% stake in Royalco.
Apart from its Philippines exploration interests,
Royalco holds a portfolio of 10 royalty interests
in mines around the world of which two
have been producing income in recent times.
Royalco is currently deriving most of its income
from a royalty on the Globe-Progress
gold mine at Reefton in New Zealand. It is
also considering other project opportunities
in South East Asia, including Cambodia.
During the December quarter the royalty
payment from Globe-Progress was 1250
ounces of gold which equates to about
Aus$5.9 million on an annual basis for this net
royalty income. The company expects the
number of producing royalties to increase to
four in coming months.
Acorn Capital is now Royalco’s second
largest shareholder, behind Anglo Pacific
Group which holds a 31.1% stake.
Royalco’s executive chairman Peter Topham
says OZ Minerals has been a supporter in recent
years and that ‘corporate paths’ may
cross in future in the “same professional manner
in which it has in the past”. He says, “This
transaction will also potentially benefit shareholders,
as it should assist in adding greater
liquidity to trading in our shares on the Australian
Securities Exchange.”
Royalco has executed an option agreement
with Vale International over its Gambang tenement
in northern Luzon and is also seeking
interest for its Pao Yabbe project which adjoins
OceanaGold’s Didipio Copper-Gold
Project, also in northern Luzon.
Rain delays Siana progress
HEAVY rain in northern Mindanao has delayed
construction progress at Red 5’s Siana
Gold Project. Rainfall in the Siana area for the
first 12 weeks of 2011 totalled 3.5 metres,
which was 203% above average.
The rain postponed the major crusher and
SAG mill concrete pours, putting the work
eight weeks behind schedule. The company
will forecast a revised inaugural gold pour
date once the major concrete pours have
been completed, cured and certified. The targeted
date had been early May.
The rain has been so heavy at times that pit
dewatering was temporarily suspended on
several occasions due to the large volume
and velocity of water in the adjacent river systems.
The mining pre-strip has been progressing,
although the rain postponed
activities in areas requiring narrower working
widths due to safety reasons.
It also caused a temporary suspension of
drilling at the Mapawa site for safety reasons
due to mudslides and the inability to maintain
a continuous supply of consumables to the
three rigs. Analytical results have, however
been received for a number of holes and include
37 metres @ 3.0 grams/tonne gold.
The company has advanced the Siana project
where possible during this period. Grid
power has been connected and reticulated
on site while concrete foundations for all six
CIL tanks and the cyanide detox plant have
been completed.
Formwork and rebar for the crusher and SAG
mill are complete, all major equipment items
such the SAG mill, rolls crusher, apron feeder
and cyclone nest as have been manufactured
and are awaiting delivery to the site, all offsite
steelworks and plateworks are on schedule,
the electrical and pipe work packages have
been released, and 75% of the capital cost is
now under firm orders/contracts.
Red 5 has agreed to a US$8 million
standby credit facility with Sprott Resource
Lending Partnership, which replaces the previously
announce US$25 million gold prepay
with Sprott Group. The facility is for 24
months and amounts drawn may be repaid
early with no penalty.
The Siana mine build, together with working
capital requirements and exploration programs,
is fully funded to production status,
however, the company’s Board believed it
prudent to guarantee access to additional
funding in light of the continued heavy rains
and due to recent global events.
Existing treasury funds total Aus$67.7 million
with a further Aus$51.4 million forecast
to be invoiced on the Siana build which would
bring the capital cost to first gold pour to
US$78.2 million.
The layout of Red 5’s Siana Gold Project in northern Mindanao.
56 | ASIA Miner | May/June 2011

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Philippines
Masbate continues to set records
GOLD production and throughout continue
to increase at CGA Mining’s flagship Masbate
Gold Project, which is now the largest operating
gold project in the Philippines. CGA is
also well along the path to expanding production
at the project and is acquiring additional
interests throughout the country.
During the December quarter production increased
4% on the previous quarter to 50,330
ounces while mill throughput rose 7% to 1.5
million tonnes of ore. It was the seventh consecutive
quarter of increased gold production.
In the first year of operations, the project produced
in excess of 150,000 ounces of gold.
Masbate is currently forecast to produce
200,000 gold ounces each year and has a
probable reserve of 3.03 million gold ounces.
The company is focused on completing the
plant investment program of US$15 million
designed to upsize the existing plant and lock
in a sustainable annual throughput level of 6.5
million tonnes. In line with this expansion CGA
has placed orders for a supplementary crushing
circuit handling 400 tonnes each hour.
This is designed to ensure the 6.5 million
The processing plant at CGA Mining’s Masbate
Gold Project on Masbate Island.
tonne throughputs are achieved when the ore
blend becomes harder. Initial construction for
the upgrade has begun.
CGA is also committed to a US$10 million
exploration program this year with a focus on
materially enhancing the reserve and resource
base of Masbate.
In April 2010, CGA’s Philippine subsidiary
Filminera was granted a 52sqkm exploration
permit adjacent to the project, which covers
a number of known and previously mined
gold deposits as
well as hosting a
significant geophysical
anomaly
with a signature
similar to Masbate’s
Main Vein
deposit. The permit
has not benefited
from modern
or systematic exploration
and is considered
highly prospective with potential to
materially increase resources.
The 2011 exploration program is initially focused
on three broad target areas - near mine
infill drilling to upgrade inferred material to indicated
status; near mine step out drilling to
extend the ore model beneath and along
strike of current information; and exploration
of the new tenement in areas of known mineralization
and those previously unexplored.
It follows the most recent drilling campaign
comprising 9401 metres of reverse circulation
drilling and 2383 metres of diamond core
drilling. Significant intersections include 4 metres
at 8.99 grams/
tonne gold, 6 metres
@ 3.37 grams/
tonne; 9 metres @
3.41 grams/tonne
and 3 metres at
9.63 grams/tonne.
In line with its
strategic alliance
with Ratel Group,
CGA will also continue
to work with
the company to assist in progressing and
enhancing the value of the King-king Gold
Project on Mindanao.
May/June 2011 | ASIA Miner | 57

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Australia
SWEET RESULTS FROM BAUXITE DRILLING AT BINJOUR
DRILLING by Australian Bauxite Ltd at the
Binjour project in central Queensland has
returned exceptionally high quality intercepts
of bauxite suitable for sweetening circuits
in refineries. Eleven of 14 holes drilled
intersected very high quality thick bauxite,
significantly advancing the company’s exploration
knowledge.
The results at Binjour, which is between
Australian Bauxite’s extensive tenements are in eastern Australia.
the towns of Gayndah and Mundubbera,
south of the port of Gladstone, suggest relatively
pure gibbsite bauxite.
Australian Bauxite’s CEO Ian Levy says,
“Binjour may prove to be a very high quality
bauxite deposit, shippable in large tonnages
to a number of bauxite/alumina refineries that
need ‘sweetener-grade’ bauxite that can be
processed at low temperature and with exceptionally
low reactive silica contents.
“We’ve called this bauxite type ‘Brown
Sugar’ bauxite – which may become a
brand name in the industry one day. Some
customers may become dependent on this
product and pay quite handsomely for it.”
The company will target its 2011 drilling
program at areas where the bauxite layer is
at the surface.
At the Taralga prospect in the Southern
Highlands of New South Wales, bauxite resources
totalling 12 million tonnes were
identified in late 2010 from first pass drilling.
More than half of the resources are easily
mine direct shipping ore (DSO) grade bauxite
suitable for direct shipping to customers
requiring gibbsite-rich bauxite, which is the
premium quality bauxite that is in highest
demand globally.
The bulk of these resources came from two
areas in the central north of the Taralga tenement
but a new bauxite deposit has been discovered
in the southeast of the tenement and
this is now being drilled as a matter of priority.
During the January drilling cycle 225 holes
were drilled in this area and some zones of
exceptionally thick bauxite layers were discovered,
including one hole that intersected
bauxite from surface to 18 metres depth.
This deposit extends westwards from the
original exploration licence into a newly
granted licence area where 20 of the 225
holes were drilled within 14 days of it being
granted. The new deposit appears significantly
larger than the other two deposits,
both in thickness and areal extent.
Australian Bauxite has also been drilling on
its Tasmanian tenement on grazing and cropping
farmland around Campbell Town in the
state’s midlands. Bauxite has been encountered
in drill holes and in surface sampling.
Results to date are from the edges of the
deposit and from some outlier occurrences
of bauxite and they demonstrate that DSO
grades occur in reasonable thicknesses. An
application for a further tenement in Tasmania
has also been lodged.
The company holds the core of the newly
discovered eastern Australia bauxite
province with 32 different tenements in
Queensland, New South Wales and Tasmania
covering 7537sqkm.
58 | ASIA Miner | May/June 2011

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Australia
MOU for Mt Peake project
TNG Limited has signed a Memorandum of Understanding
with a Chinese state-owned engineering,
development and construction
company to establish a strategic partnership for
financing and development of the Mount Peake
Iron-Vanadium Project in the Northern Territory.
The MOU allows for potential future agreement
to undertake engineering, procurement
and construction works and securing
project finance, subject to entering into definitive
agreements. The MOU is conditional
on successful evaluation of the recent
Mount Peake scoping study.
The non-binding MOU follows a recent positive
independent study based on TNG’s revolutionary
new patented hydrometallurgical
process. This was developed by TNG in conjunction
with its metallurgical consultants Minerals
Engineering Technical Services (METS)
and has been successful in recovering three
principal commodities – vanadium, titanium
and iron – from samples of Mount Peake ore.
The Chinese group, which has requested
anonymity as part of the MOU, is reviewing
the study and other project information, and
subject to a satisfactory review, the two parties
will sign potential agreements regarding
off-take of the iron and vanadium products,
project construction and funding.
The study outlines a mine life of more than
23 years with life-of-mine production of
107.1 million tonnes for total metal production
of 349,000 tonnes of vanadium, 27.182
million tonnes of iron and 6.463 million
tonnes of titanium.
TNG has appointed engineering firm Sinclair
Knight Mertz (SKM) to manage completion
of a pre-feasibility study (PFS) which will
build on the scoping study. The PFS is expected
to take seven months and will be
based on a conventional open pit mining operation
annually processing 5 million tonnes.
It will be carried out in conjunction with the
next phase of pilot plant metallurgical test
work, which is testing commercialization of
the patented metallurgical process.
The PFS will pave the way for a definitive feasibility
study next year on potential commercial
development options for the project as the
foundation for a long-life, world-scale ferrous
metal business in the Northern Territory.
TNG’s chief executive Paul Burton says the
company is building a highly capable team to
progress the project. “As part of this team we
are pleased to have secured the services of
SKM and will retain the services of Snowden for
resource evaluation and mining advice, as well
as joint patent owners METS for continued metallurgical
evaluation and process development.”
He says TNG recently completed a $2.8
million capital raising to underpin completion
of the PFS, including delivery of a resource
upgrade, pilot plant metallurgical
work and associated studies on the hydrometallurgical
process.
Peake 山 项 目 谅 解 备 忘 录
TNG 有 限 公 司 与 一 家 中 国 国 有 工 程 、 开 发 和
建 设 公 司 签 署 了 一 份 谅 解 备 忘 录 , 就 合 作 融
资 并 开 发 北 领 地 Peake 山 铁 钒 项 目 建 立 起 战
略 伙 伴 关 系 。
该 谅 解 备 忘 录 为 今 后 的 项 目 设 计 、 采 购 、
施 工 合 同 以 及 项 目 融 资 留 有 了 空 间 , 但 须 取
决 于 签 订 确 定 性 协 议 。 该 谅 解 备 忘 录 是 有 条
件 的 , 即 需 成 功 进 行 对 Peake 山 概 略 研 究 的
评 价 。
这 份 不 具 约 束 力 的 谅 解 备 忘 录 是 在 针 对
TNG 公 司 一 项 革 命 性 的 湿 法 冶 金 工 艺 新 专 利
做 出 独 立 积 极 研 究 后 签 署 的 。 这 项 专 利 由
TNG 公 司 与 其 冶 金 顾 问 矿 物 工 程 技 术 服 务 公
May/June 2011 | ASIA Miner | 59

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Australia
司 (METs) 合 作 开 发 的 , 并 已 在 从 Peake 山
矿 样 中 提 取 三 种 主 要 金 属 时 取 得 成 功 ——
钒 、 钛 和 铁 。
中 方 合 作 伙 伴 要 求 在 该 谅 解 备 忘 录 中 匿 名
出 现 , 正 在 审 查 项 目 概 略 研 究 以 及 其 他 信 息
, 若 审 查 结 果 令 人 满 意 , 双 方 将 签 署 有 关 铁
和 钒 产 品 的 包 销 、 项 目 建 设 以 及 融 资 合 同 。
项 目 概 略 研 究 预 计 矿 山 寿 命 超 过 23 年 , 共
计 矿 石 产 量 将 达 1.071 亿 吨 , 包 括 34.9 万 吨
钒 ,2718.2 万 吨 铁 和 646.3 万 吨 钛 。
TNG 公 司 已 委 任 工 程 公 司 Sinclair Knight
Mertz (SKM) 负 责 在 概 略 研 究 基 础 上 完 成 预
可 行 性 研 究 报 告 (PFS)。 预 计 需 要 7 个 月
时 间 , 假 设 前 提 是 传 统 的 露 天 开 采 , 年 处 理
量 500 万 吨 。 这 项 工 作 将 与 下 阶 段 的 中 试 厂
冶 金 试 验 工 作 同 时 进 行 , 主 要 是 验 证 专 利 冶
金 工 艺 的 商 业 化 运 作 。
该 可 行 性 研 究 将 为 明 年 的 最 终 可 行 性 铺 平
道 路 , 着 眼 于 可 能 采 取 的 商 业 化 项 目 开 发 方
案 , 目 标 是 使 项 目 成 为 北 领 地 地 区 一 个 世 界
级 的 长 寿 命 黑 色 金 属 项 目 。
TNG 公 司 的 首 席 行 政 官 Paul Burton 说 , 该
公 司 正 在 建 立 一 个 精 干 的 团 队 推 进 项 目 进
展 。“ 作 为 这 个 团 队 的 一 部 分 , 我 们 很 高 兴
已 经 获 得 了 来 自 SKM 的 服 务 , 并 会 聘 请
Snowden 公 司 进 行 资 源 评 价 和 开 采 建 议 , 以
及 专 利 的 共 同 拥 有 者 METs 公 司 继 续 进 行 冶
金 学 评 估 和 工 艺 研 发 。”
他 还 介 绍 说 TNG 公 司 最 近 完 成 了 一 项 280 万
澳 元 的 资 金 募 集 , 以 此 为 预 可 行 性 研 究 提 供
资 金 支 持 , 包 括 资 源 升 级 , 中 试 冶 金 试 验 工
作 以 及 其 他 针 对 湿 法 冶 金 工 艺 的 相 关 研 究 。
Chinese uranium investment
UNITED Uranium has signed a joint venture
agreement with a Chinese company to advance
a number of its uranium tenements in
the Northern Territory. United has also received
Aus$1.176 million from a placement
to the Chinese investor.
The No 1 Institute of Geology and Minerals
of Shandong Province (SDGM) has received
formal approval from Australia’s Foreign Investment
Review Board (FIRB) to subscribe for 5.6
million shares in United Uranium. FIRB has also
provided formal approval for SDGM to acquire
up to 51% of the issued capital of United and
up to a 50% interest in six tenements.
The Chinese company can earn the 50%
interest by spending a total of $3 million on
exploration. United Uranium will work with
SDGM to further advance the tenements,
which include McArthur River, Pine Creek,
Dunmarra and Wiso. Drilling programs are
already planned at two of the tenements
with the SDGM funds and joint venture
agreement enabling further work to be carried
out into the future.
Owing to adverse weather United had to
postpone its initial drilling program at
McArthur River until after the wet season. The
program is now due to take place during the
current quarter subject to drill rig availability.
The drilling program was planned after
ground-based electrical geophysics was
completed over the T1 target of this tenement
where induced polarization (IP) surveys identified
a strongly chargeable and moderately
conductive response. The target zone is
about 100 metres below surface, has a thickness
of up to 30 metres and is at least 300
metres long by 300 metres wide.
At Pine Creek all necessary drilling approvals
have been received for programs at
Stray Creek West and Stray Creek targets
and it is expected that the drilling will also
take place this quarter, subject to rig availability.
IP surveys have also been completed.
The Pine Creek Geosyncline is a major gold
and uranium province in the Northern Territory
which also contains many mine copper, leadzinc
and tin mineral occurrences.
Meanwhile, United continues to work with
the Central Land Council in getting another
two of the six tenements granted and is also
continuing in its search for new projects with
the focus remaining on uranium. It will, however,
also consider other commodities.
中 国 铀 矿 投 资
联 合 铀 业 公 司 (UNITED Uranium) 与 一
家 中 国 公 司 签 署 了 合 资 协 议 , 以 推 进 位
于 北 领 地 的 几 个 铀 矿 项 目 开 发 。 联 合 铀
业 公 司 还 收 到 了 通 过 向 中 方 投 资 者 增 发
股 份 募 得 的 117.6 万 澳 元 资 金 。
山 东 省 第 一 地 质 矿 产 研 究 院 (
SDGM) 已 收 到 澳 大 利 亚 外 国 投 资 审
查 委 员 会 (FIRB) 的 正 式 批 准 , 同 意
其 认 购 联 合 铀 业 公 司 560 万 股 股 份 。
澳 大 利 亚 外 国 投 资 审 查 委 员 会 还 为 山
东 省 第 一 地 质 矿 产 研 究 院 提 供 正 式 文
件 , 批 准 其 最 多 可 收 购 联 合 铀 业 公 司
发 行 股 本 的 51%, 并 在 六 个 矿 权 中 占
最 高 50% 的 权 益 。
中 方 公 司 可 通 过 投 资 300 万 澳 元 用
于 勘 探 从 而 获 得 项 目 的 50% 权 益 。
联 合 铀 业 公 司 将 与 山 东 省 第 一 地 质
矿 产 研 究 院 合 作 以 进 一 步 推 进 这 几 个
矿 权 区 的 开 发 , 包 括 McArthur River,
Pine Creek,Dunmarra 和 Wiso。 已 为
其 中 两 个 矿 权 区 制 定 了 钻 探 计 划 , 并
将 利 用 山 东 省 第 一 地 质 矿 产 研 究 院 提
供 的 资 金 , 且 合 资 协 议 使 今 后 进 一 步
工 作 成 为 可 能 。
由 于 恶 劣 天 气 联 合 铀 业 公 司 不 得
不 将 McArthur 的 初 步 钻 探 计 划 推 迟 到 雨 季 之
后 。 现 在 该 计 划 应 定 于 本 季 度 内 实 施 , 取 决
于 是 否 能 调 到 钻 机 。
钻 探 方 案 是 基 于 对 这 一 矿 权 中 T1 号 靶 区 的
地 表 电 学 地 球 物 理 研 究 后 制 定 的 , 在 此 通 过
激 发 极 化 研 究 (IP) 发 现 了 强 烈 的 可 充 电 性
和 适 度 导 电 性 。 目 标 区 域 位 于 地 表 以 下 约
100 米 , 厚 度 高 达 30 米 , 至 少 300 米 长 ,300
米 宽 。
Pine Creek 矿 权 区 的 Creek West 和 Stray
Creek 靶 区 已 收 到 所 有 必 需 的 钻 探 方 案 批
准 , 预 计 也 将 在 这 个 季 度 执 行 , 取 决 于 是
否 能 获 得 钻 机 。 这 些 靶 区 的 激 发 极 化 研
究 (IP) 也 已 完 成 。
Pine Creek 向 斜 地 带 是 北 领 地 地 区 一 个 知
名 的 黄 金 和 铀 产 区 , 还 蕴 藏 着 许 多 铜 , 铅 -
锌 , 锡 等 矿 化 露 头 。
与 此 同 时 , 联 合 铀 业 将 继 续 与 中 部 土 地 理
事 会 (Central Land Council) 合 作 以 取 得 另
外 六 个 矿 权 区 中 两 个 的 批 准 , 还 将 继 续 寻 找
新 项 目 , 重 点 仍 将 是 铀 。 不 过 也 考 虑 其 他 矿
种 。
Copper Strike secures Chinese funds
COPPER Strike will use almost $11.5 million
it aims to raise in placement and option
agreements with Chinese companies to advance
the development of the Einasleigh Project
in North Queensland, where two
copper-gold-silver deposits and four zinclead-silver
deposits have been discovered.
United Uranium’s tenements are in Australia’s Northern Territory.
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Australia
Copper Strike has signed agreements with
Beijing Jintai Yuanchung Mining Co and
Taifeng Yuangcheng International Development
Limited to raise Aus$5.822 million
through a share placement and a further
Aus$5.64 million through an option placement.
The agreements are conditional upon
final confirmatory due diligence, shareholder
approval, Foreign Investment Review Board
approval and Chinese government approvals.
Jintai is a joint venture between Sichuan
Taifeng Group Co and Sichuan Bureau of
Metallurgical Geology and Exploration
(SBMGE) while Taifeng is a wholly-owned
subsidiary of Sichuan Taifeng Group.
The initial placement will see the Chinese
companies obtain a 19.99% interest in Copper
Strike while the options will result in a further
13.01% interest, with the options
exercisable within three years of issue. Copper
Strike has also signed a joint venture development
agreement with Taifeng.
The initial $5.822 funding will be used to finalize
a bankable feasibility study (BFS) with
respect to the Kaiser Bill, Einasleigh, Chloe,
Jackson and Stella deposits within the
Einasleigh project.
Under the JV development agreement, if
the BFS confirms the currently estimated recoverable
resource, production costs and development
costs for these deposits, an
unincorporated joint venture will be established
between Taifeng and Copper Strike’s
subsidiary, Einasleigh Mining.
Taifeng will subsequently provide a further
$95 million by way of a farm-in for a 70% interest
in the tenements and will provide a further
$5 million loan to Copper Strike, which
will make available to the development funding,
as necessary, the proceeds of the loan
and proceeds received from the exercise of
the options. Taifeng and Einasleigh Mining
have also entered into an offtake term sheet
providing Taifeng with the right of first refusal
to purchase Copper Strike’s 30% of the offtake
under the joint venture.
CSE 锁 定 中 国 基 金
CSE 将 通 过 与 中 国 公 司 签 署 配 股 和 配 股 期 权
协 议 获 取 大 约 1150 万 美 元 用 于 促 进 北 昆 士
兰 州 Einasleigh 项 目 的 开 发 , 该 项 目 包 括 2 个
铜 - 金 - 银 矿 和 4 个 锌 - 铅 - 银 矿 。
CSE 已 与 北 京 和 泰 丰 元 创 国 际 发 展 有 限 公
司 签 署 协 议 , 通 过 配 股 筹 集 582.2 万 澳 元 以
及 配 股 期 权 筹 集 564 万 澳 元 。 该 协 议 的 有 效
性 将 视 最 终 验 证 尽 职 调 查 、 股 东 大 会 同 意 、
外 国 投 资 审 查 委 员 会 批 准 和 中 国 政 府 相 关 部
门 批 准 的 结 果 而 定 。
金 泰 是 四 川 泰 丰 股 份 有 限 公 司 与 四 川 省 地
质 矿 产 勘 查 开 发 局 的 合 资 公 司 , 泰 丰 股 份 有
限 公 司 是 四 川 泰 丰 集 团 的 全 资 子 公 司 。
两 家 中 国 公 司 通 过 首 次 配 股 将 获 得
CSE19.99% 的 股 权 , 在 三 年 内 通 过 配 股 期
权 可 获 得 另 外 的 13.01%。CSE 还 和 泰 丰 签
署 了 一 份 合 作 开 发 协 议 。
通 过 配 股 募 得 的 582.2 万 美 元 将 用 于 完 成
Einasleigh 项 目 中 Kaiser Bill, Einasleigh,
Chloe, Jackson 和 Stella 矿 是 否 可 获 利 的 行
性 研 究 报 告 (BFS)。
根 据 合 作 开 发 协 议 , 如 果 BFS 报 告 肯 定 了
目 前 对 于 可 开 采 资 源 、 生 产 成 本 和 开 发 成 本
的 预 测 , 泰 丰 和 CSE 的 子 公 司 Einasleigh 资
源 公 司 将 共 同 成 立 一 个 非 法 人 合 资 公 司 。
泰 丰 接 下 来 将 以 9500 万 美 元 的 价 格 受 让 该
项 目 70% 的 权 益 , 并 将 向 CSE 提 供 另 外 500
万 美 元 的 贷 款 , 这 笔 贷 款 将 提 供 给 该 项 目 的
开 发 基 金 , 必 要 时 , 该 笔 贷 款 的 利 息 以 及 配
股 期 权 的 收 益 都 将 汇 入 开 发 基 金 。
泰 丰 还 与 Einasleigh 资 源 公 司 签 署 了 一 份 股 权
出 售 协 议 赋 予 泰 丰 公 司 收 购 CSE 公 司 在 上 述
非 法 人 合 资 公 司 中 30% 股 权 的 优 先 取 舍 权 。
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Papua New Guinea
HORSE IVAAL TRUKAI RESOURCE BOOSTED BY 79%
A drill pad in rugged country at Highlands Pacific’s Frieda copper gold project.
HIGHLANDS Pacific believes its Frieda Horse
Ivaal Trukai copper gold project in PNG is one
of the world’s premier porphyry assets available
for development this decade, after upgrading
its mineral resource estimate for the
Horse Ivaal Trukai deposit by 79% to 1.9 billion
tonnes. The deposit is now estimated to
contain 8.6 million tonnes of contained copper,
14.3 million ounces of gold and 46 million
ounces of silver.
The Frieda project is one of the Asia-Pacific’s
largest undeveloped copper/gold resources,
situated 75km northeast of the Ok
Tedi mine and 170km northwest of the giant
Porgera gold mine in PNG. Using a 0.2%
copper cut-off grade, the Horse Ivaal Trukai
deposit’s total 1.9 billion tonnes of copper
mineralization is estimated at a grade of
0.45% copper, 0.22 grams/tonne gold and
0.70 grams/tonne silver.
Separate to the open pit deposit but within
the Frieda district is a further 270 million
tonnes of inferred copper resource at the
Koki and Ekwai deposits.
The company’s managing director John
Gooding says, “Frieda has the capacity to be
one of the largest, lower-operating cost copper
projects in the world. Assets like Frieda
with their major inventory and multi-decade
potential are rare in the portfolios of junior resource
companies and their value in corporate
portfolios should not be underestimated.”
The pre-feasibility study released in November
2010 indicated the multi-decade life mine
will have an average annual throughput of 50
million tonnes. Subject to funding, construction
of the open cut mine could begin next
year, with production commencing in 2017.
Meantime, seven holes have been drilled at
Highlands Pacific’s Star Mountains Olgal copper
and gold prospect, which is also near the
Ok Tedi mine. The company wants to increase
the Olgal drilling program with the aim
of defining a JORC-compliant resource. The
Olgal prospect is one of 12 identified for further
investigation, with two additional rigs due
to arrive in September to test other copper/
gold targets in the area.
John Gooding says, “As the earlier exploration
results show, great potential exists for a
copper/gold prospect of significant scale with
potential long-term synergies with the Ok Tedi
mine which is nearing completion. We will also
drill at the other prospects to test the potential
for copper-porphyry clusters in the district.”
The Star Mountain leases are about 20km
north of the Ok Tedi mine and cover the Nong
River skarns and the Star Mountains porphyry
copper deposits - two areas known for
copper/gold mineralization.
Yandera resource upgrade
ASSAY results from a drilling program at
Marengo Mining’s Yandera project have
prompted a substantial upgrade to its mineral
resource inventory, with a 32% increase
in copper. The company drilled 345 diamond
holes totaling 113,716 metres at the project
which is 95km southwest of the coastal
town of Madang.
Marengo’s managing director and CEO Les
Emery says the results are a positive step forward
in the development of a substantial
long-life copper-molybdenum-gold mine.
The drilling program identified mineralization
to a depth of 981 metres at the Imbruminda
zone, some 400 metres below the base of
the current resource estimate, and down to a
depth of 660 metres at the Gremi zone,
which is 200 metres below the base.
Drilling at Marengo Mining’s Yandera project, southwest of the town of Madang.
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Papua New Guinea
The revised estimate updates the company’s
original October 2008 estimate with a
measured resource of 113 million tonnes @
0.57% copper equivalent, an indicated resource
of 245 million tonnes @ 0.5% copper
equivalent and an inferred resource of 417
million tonnes @ 0.45% copper equivalent.
Les Emery says, “The updated inventory
has strengthened Marengo’s goal of developing
a project with a minimum operation life of
at least 20 years.”
Marengo has also reported an inferred resource
estimate of 776 million tonnes containing
by-product metals comprising gold,
silver and rhenium for 2.2 million ounces of
gold, 42 million ounces of silver and 1.5 million
ounces of rhenium. While these by-product
metals are not included in the copper
equivalent values, they are expected to make
a significant contribution to the overall economics
of the project.
Sample data was composited to five metres
and flagged by geological, weathering, alteration
and grade shell domains. Resources
were estimated separately for copper, molybdenum,
gold and silver mineralization for the
deposit. Rhenium was calculated using a
molybdenum to rhenium regression for all
blocks containing a molybdenum estimate.
Les Emery says, “This resource estimate
has confirmed our belief that the Yandera
project will continue to grow in scale and has
justified the continued focus on drilling at the
Yandera Central Porphyry zone.
“We have five diamond drill rigs operating
on site, to complete further infill drilling, together
with targeting, strike and depth extensions,
to the known mineralization.”
totaling 14,950 metres, providing 13,230 analyzed
samples. Drill hole sample assays
were composited to 3 metres, providing 4977
data values inside the modeled area.
Gold mineralization at Botlu is associated
with volcanic breccias that cut through
largely latite andesite and minor volcanic
host rocks. It occurs with fine grained disseminated
sulphides, with very fine grained
gold mineralization of the highest grade in
the matrix of the volcanic breccia. Pervasive
silica, carbonate and potassic alteration of
5-10% is commonly recorded.
Ore is transported to the processing plant at Allied
Gold’s Simberi project via overland conveyor.
Botlu inferred resource up 172%
ALLIED Gold has announced a 172% increase
in its inferred mineral resource at the
Simberi Gold Project’s Botlu deposit. Definition
drilling has led to a 271,000 ounce increase
in the newly updated JORC resource
estimate of predominantly sulphide ore,
which includes 8.4 million tonnes @ 1.59
grams/tonne for a total of 429,000 ounces.
Simberi is 85km from Lihir Island in the New
Ireland province of PNG. It commenced production
in 2008, producing 64,000 ounces in
2009-10. Its processing plant is being expanded
to an annual throughput of 3.5 million
tonnes to produce 100,000 ounces each
year by the end of 2011.
The new resource estimate is based on results
from 165 core, RC and aircore drill holes
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Papua New Guinea
Allied’s executive chairman Mark Caruso
says, “Botlu provides another opportunity
and source of additional material for our sulphide
study which has until recently focused
predominantly on the Sorowar and Pigiput
deposits. This upgrade shows that the more
we drill, the more we find and maintains our
track record of continually increasing the Simberi
resource base.”
This news comes after the Simberi mine
was forced to close for four weeks during
March due to a leaking offshore tailings mixing
tank. The company’s environmental consultants
and advisors provided the PNG Department
of Environment and Conservation (DEC)
with a detailed report of repair works carried
out on the tank’s valve and on-shore piping.
The DEC sent two experts to visit the mine
and carry out an independent inspection of
the repair and the operating procedures. Allied
believes its response was in accordance with
world best practice standards.
Mark Caruso says, “Simberi’s March quarter
is likely to fall short of the previous December
quarter because of the suspension of
operations. The good thing is work on the expansion
to 100,000 ounces/annum is moving
ahead and exploration results from the Botlu
pit continue to show the potential for oxide
and sulphide resource extensions.”
Goldminex Resources’ tenements within the Owen Stanley Ranges.
Crater Mountain drill success
GOLD has been intersected in the first drill
hole at the Crater Mountain joint venture between
New Guinea Gold and Gold Anomaly.
Results show gold mineralization of 82 metres
@ 1.62 grams/tonne within 284 metres
@ 0.82 grams/tonne. Crater Mountain is in
the Grasberg-Porgera Corridor in central
PNG, southeast of Ok Tedi and Porgera.
Gold Anomaly exploration director Peter
McNab says, “The results are highly encouraging
as they confirm the presence of a major
alterated and mineralized system with the potential
to define a large bulk tonnage of low
grade gold mineralization, with zones of
higher grade gold mineralization.
“Above 306 metres depth these assays include
significant intervals with average assay
values above 1.5 grams/tonne gold totaling
87 metres @ 2.04 grams/tonne gold. Given
that Crater Mountain is above creek level the
project has the benefit of having lower cut-off
grades in any economic evaluation.”
New Guinea Gold’s acting CEO Bob McNeil
says, “The companies have recently signed
an agreement whereby Gold Anomaly will acquire
our 10% interest in Crater Mountain, in
exchange for 31.25 million Gold Anomaly
shares. These shares will give us great flexibility
in obtaining value for our interest.”
Meanwhile, New Guinea Gold’s drilling,
trenching, geochemical sampling and geophysical
surveys at the Kavursuki mineralized
zone suggest it will ultimately equal or exceed
the oxide mineralization at the company’s
Sinivit gold mine, which is 50km south-southwest
of Rabaul on the Gazelle Peninsula in
East New Britain province.
Twenty one diamond core holes and more
than 3000 metres of excavator trenching have
confirmed a continuous, mineralized structural
zone up to 50 metres in width and 1km in
length. It is variably silicified and mineralized
with silver and gold, and by analogy with the
Sinivit zone, can be assumed that it will prove
of similar strength in copper/gold/tellurium sulphides.
Best results from the drilling include
20.3 metres @ 3.28 grams/tonne gold including
8 metres @ 6.49 grams/tonne.
Bob McNeil says, “Kavursuki is proving to
be a likely source of additional oxide ore to
extend the life of the present mine. In addition,
the style of mineralization and the geophysical
results suggest that the oxide
mineralization is likely to be underlain at depth
by substantial volumes of copper/gold/tellurium
sulphide mineralization. Ultimately, it’s
likely that the Sinivit and Kavursuki zones will
be proven to be one continuous, albeit erratically
mineralized zone.”
New Guinea Gold is investigating financing
the Kavursuki resource for exploration and
definition of the sulphide resource.
Liamu survey confirms potential
RESULTS from a detailed helicopter magnetic-radiometric
survey at Goldminex Resources’
Liamu project in the Owen Stanley
Ranges of southeast PNG have confirmed
the project’s porphyry copper-gold potential.
A total of 2438 line kilometres of geophysical
surveying was flown at a line spacing of 75
metres covering an area of 10km by 15km
over the Liamu intrusive complex, which is
about 100km east of Port Moresby.
Results from a petrographic study on a suite
of mineralized rock samples have also revealed
that the copper-gold mineralization, alteration
and host rock types are similar to other
large deposits worldwide. Several more targets
have been identified for follow-up tests.
Goldminex CEO Sandy Moyle says, “The further
we advance our understanding of the project
area, the more encouraging the system
appears. Several targets generated by the interpretation
of the heli-borne geophysical survey
are peripheral to the known 15sqkm gold
and copper mineralized portion of the Liamu
intrusive complex. We aim to continue aggressive
exploration at Liamu together with key
prospects within the Owen Stanley Ranges.”
Liamu lies within a pliocene intrusive complex
that covers at least 35sqkm hosting zones of
copper-gold mineralization. Exploration work is
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Papua New Guinea
concentrating on extensions of known mineralization
to the north, however porphyry-style
copper and gold mineralization has been found
at several locations within Berefana prospect in
the southern part of the Liamu complex.
The mineralization occurs as disseminations,
veins and stockworks closely associated with
early potassic alteration. Grains of high fineness
gold have been identified as inclusions in chalcopyrite
and also in pyrite, which confirms the
assay results that indicate Liamu has potential
to host a gold-rich porphyry system.
Petrographic results confirm the copper-gold
mineralization at Liamu is hosted by a mixed
suite of potassium-enriched, fine grained intrusive
rocks of predominantly intermediate composition,
which are similar to those commonly
associated with large copper-gold deposits including
PNG’s Ok Tedi and Porgera mines.
Sandy Moyle says the company is reviewing
a joint venture option with potential partners
to enable substantial exploration
programs and advance projects in the Owen
Stanley region. “We are focused on the discovery
of deposits with greater than 2 million
ounces of gold, and our priority exploration
area remains in the Owen Stanley Ranges.”
Andewa drilling scheduled
DRILLING at Frontier Resources’ Andewa
copper and gold project on PNG’s New
Britain Island is expected to begin this month.
A systematic drilling program is scheduled in
a bid to demonstrate the project is a worldclass
gold and/or gold-copper-molybdenum
deposit. Field crews have arrived on site to
prepare for the deep drilling program, using
the company’s own rigs.
More than 5000 soil and rock samples
have confirmed gold, copper, molybdenum,
arsenic and antimony in assay results. Last
year’s soil sampling returned peak soil
grades of 18.9 grams/tonne gold and
0.19% copper. Results from the 21sqkm
grid of soil tested show there is one main
central gold anomaly in excess of 5km-long
and two additional gold-in-soil anomalies
about 1-1.5km-long.
Frontier says these anomalies, called the
Core Chargeability, Ber and Ekhos zones,
compellingly demonstrate the presence of
very large sulphide systems from on-surface
to more than 800 metres deep.
Frontier’s managing director Peter McNeil
says, “The enormous 3D-IP grid we completed
was a calculated risk during a time of
global uncertainty. The program was remarkably
successful and has now rewarded
directors and shareholders for their faith in
the project. We have now geochemically
and geophysically demonstrated the potential
for a large-scale world-class epithermal
gold deposit.
“Much of the gold anomalous area within
the Andewa crater has been adequately defined
for first class exploration.”
Frontier has previously drilled gold mineralization
in a limited program at Komsen on the
western margin of the Core Chargeability
Zone from surface to a maximum depth of
320 metres below surface. Those drill intercepts
contained significant gold and base
metals such as 2 metres @ 5.43 grams/tonne
gold, 95 grams/tonne silver, 11.1% zinc,
2.3% lead and 0.12% copper, and 7.9 metres
of 10.01 grams/tonne gold.
Andewa has good access by sea from the
nearby port of Kimbe and requires only one
bridge for land access by road. Neighbouring
landowners near the coast are in support of
the project and there are no permanent villages
in or near the gridded area.
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Central Asia
EXTENSIVE GOLD DRILLING PROGRAM AT SHAMBESAI
AN extensive drilling and exploration campaign
is under way at Manas Resources’ gold
projects in the Kyrgyz Republic. The company
is drilling up to 20,000 metres with the
aim of significantly increasing its resource
base of 1.13 million ounces of gold.
Six diamond drill rigs and two man-portable
rigs are operating on three separate exploration
projects with the majority of drilling to take
place at the Shambesai project to lift highgrade
oxide resources. Manas also wants to
define more drill targets from 54 exploration targets
across its 4200sqkm of licence areas.
Manas will undertake around 10,000 metres
of drilling at Shambesai with the purpose
of rapidly upgrading all resources in
the current pit optimization, testing areas for
Core samples from Manas Resources’ Shambesai Gold Project.
further shallow oxide at the edge of the existing
resource and defining the zone at the
western boundary of the current pit with the
goal of substantially increasing the resource
and pit extent.
Drilling will also occur at prospects surrounding
Shambesai, including Odbilla,
Shambesai West and Purn. The company
would like to provide additional mineable
oxide that can be trucked to the Shambesai
processing facilities. It will rapidly drill test four
targets, three of which are within 7km of
Shambesai. About 5000 metres of initial
drilling will be undertaken at Shambesai
West, Purn West and Obdilla West.
The final exploration front for 2011 will be
an ongoing regional program that will be carried
out by three field teams. The program will
drill test the massive 3.5km-long, high-tenor
Nurlau gold-in-soil anomaly; complete surface
sampling at the Sumap regional target,
which is about 15km from Nurlau; and complete
further prospecting on up to five of the
54 regional targets.
Manas has budgeted up to $5 million this
year to complete the exploration and drilling
programs. These will run alongside the feasibility
study and mine permitting process for
Shambesai, which has the potential to begin
production in 2012. The study and permitting
are progressing well and are being undertaken
by Manas’ project development team
and local consultants.
A scoping study complete in November
2010 anticipates that Shambesai will produce
its first 100,000 ounces at an average head
grade of 5.7 grams/tonne gold in the first three
years at a cash cost of US$180 per ounce.
Fortis secures potash deposits
ASX-LISTED Fortis Mining has become part
of the global potash phenomenon by securing
the rights to purchase two significant
potash salt deposits in western Kazakhstan.
Fortis has agreed to acquire the rights for a
total cost of $US260 million.
The Chelkar and Zhiliyanskoe salt deposits
have an exploration target range of 6.5-6.6
billion tonnes of potassium deposits, making
them among the world’s largest potash salt
deposits. Chelkar also has an exploration target
range of 102-105 million tonnes of magnesium
deposits.
Acquisition of the assets has been secured
through a variety of share sale agreements
that will result in Fortis acquiring 75% of Hong
Kong-based Ji'an Resources, which owns
the deposits through a number of indirect
shareholdings. The Ji'an acquisition involves
the transfer of 40 million Fortis shares and $1
million cash payment.
Fortis has already paid US$30 million to
secure the rights to the deposits in two instalments
with a third instalment of $230 million
due on July 7.
Both areas were identified by geologists from
the former Soviet Union during the 1950s. A
substantial amount of systematic drilling,
chemical analysis, hydrological surveying, seismic
surveying and interpretation work was
completed on both areas during the 1950s and
early 60s when work ceased. In both areas geological
resources were calculated and classified
to the Soviet resource classification
scheme that was in operation at the time.
Fortis has been provided with original geological
reports of this work which it is translating.
While the work appears to have been
done to a reasonable standard for the time, it
is not considered to comply with the reporting
requirements of the JORC code.
Ji’an is undertaking further drilling and is
working with the new and old data to further
advance the project. Ji’an has a fully resourced
development team of geologists and
engineers in site at Zhiliyanskoe advancing
the project. This group will form the nucleus
of the team which will hopefully bring the project
into production.
Fortis Mining’s executive chairman Jitto
Arulampalam says, “Fortis is very excited by
the future prospects of these two mines to
service the growing demand for potash ore,
especially in China and India which are geographically
located near Kazakhstan.
“Fortis is undertaking further due diligence
on the deposits, but we are confident that
there is only limited investment and time
needed to make the first of these deposits,
Chelkar, operational. Already Fortis has
shown in a reasonably short period of time
that it can secure world-class assets and reward
its shareholders. We have a range of
funding options available to complete the
transaction of securing these two mines.”
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Central Asia
Central Asia Metals sells subsidiary
CENTRAL Asia Metals has reached an agreement
to sell one of its Kazakhstan subsidiaries.
The sale of Tochtar LLP is in line with the corporate
strategy outlined at the time of Central
Asia’s IPO in September 2010.
The sale to Wildorf Holding Ltd for an agreed
consideration of US$2.5 million consists of
US$825,000 in cash and US$1.675 million of
historical cost liabilities.
Central Asia’s chief financial officer Nigel
Robinson says, “Following on from our decision
to cease mining operations at Tochtar in
2009 we are delighted to have sold the subsidiary.
The deal removes the potential historical
cost liabilities and will enable Central Asia’s
management to focus in Kazakhstan on the
delivery of the Kounrad Copper Project.”
Central Asia Metals has interests in a number
of copper, gold and molybdenum mining exploration
and development assets in Kazakhstan
and Mongolia.
In Kazakhstan, the company has advanced
plans for construction of a plant at the former
Kounrad mine that will have the capacity to annually
deliver 10,000 tonnes of near term, lowcost
copper production. It plans to construct
the plant with a joint venture with a Kazakh
government entity, Saryarka.
Kounrad is a former open-pit copper mine
that operated between 1936 and 2005. The
site around the mine contains a number of
dumps of waste material from the mine from
which copper can be extracted through an insitu
leaching process followed by Solvent Extraction
– Electro-Winning (SX-EW).
Initial construction ground-works for the
commercial SX-EW plant have started and production
at the plant is expected to start in the
fourth quarter of 2011. Central Asia also has
exploration opportunities in the region. One of
these is Alag Bayan, an early stage exploration
project in Mongolia, where the company is focused
on outlining a potentially significant copper/gold
porphyry target. This asset is situated
close to the Oyu Tolgoi copper mine being developed
by Rio Tinto and Ivanhoe Mines.
In addition Central Asia plans to develop further
its molybdenum exploration project,
Handgait, and its gold exploration project,
Ereen, both in Mongolia.
New Uzboy gold resource reports expected
ALHAMBRA Resources expects to receive
two new resource reports in the second half
of 2011 covering new deposits at its Uzboy
Gold Project in northern Kazakhstan. Increasing
resources and ramping up production are
the company’s cornerstones for continued
growth during 2011.
An updated NI 43-101 resource report was
expected for the Uzboy deposit by the end of
April while new reports will be delivered by independent
geological consultants ACA Howe
International for the Dombraly and Shirotnaia
deposits by the end of the year.
An updated scoping study for the Uzboy
project was also expected to be received by
the company by the end of April. The study
was based on the NI 43-101 resource report
dated June 2, 2008 and valued the resources
at a gold price of US$850/ounce. The updated
study will be based on the most recent
resource report with a valuation based on
current gold prices.
During the 2011 field season Alhambra anticipates
implementing an exploration program,
subject to sufficient cash flow and suitable financing,
which could range from two to three
times larger than the exploration program completed
in 2010. Drilling will be focused on the
three advanced exploration areas of Uzboy,
Dombraly and Shirotnaia, as well as the four
early stage exploration areas of Kerbay, North
Balusty, Zhanatobe and Vasilkovskoe East.
In addition to the advanced and early
stage exploration areas, Alhambra has an
inventory of about 100 other gold targets
and these are areas of anticipated high potential.
The company anticipates that a
number of these targets will be assessed
further in the remainder of 2011.
During 2010, a number of operational recommendations
were made regarding changes to
Alhambra's mining operations and these are
anticipated to lead to increased efficiency in
gold recovery in 2011. Recommendations include
placing emitters on side slopes to decease
inventory of gold as well as re-leaching
rested older areas of the heaps, heating the
leach pad solution for longer periods of time to
reduce the impact of freezing, and crushing the
harder deeper ores to improve leach recovery.
Alhambra’s tenements are in northern Kazakhstan, adjacent to a number of large gold deposits.
In November 2010, Alhambra executed an
engagement letter with CITIC Securities Corporate
Finance (HK) to act as its financial advisor
and to assess the feasibility of seeking a
dual listing of Alhambra's common shares on
an Asian stock exchange. CITIC continues to
assess this situation.
Uranium business spun-off
AIM-LISTED Eurasia Mining has nominated Energy
Resources Asia (ERA) to be the legal
holder of the Kamushanovsky Uranium Project
in the Kyrgyz Republic. Eurasia jointly owns Energy
Resources Asia with Afrasia Mining & Energy
Investment Holdings.
In January, Eurasia signed a memorandum
of understanding (MoU) to acquire a 55% interest
in Kamushanovsky, an advanced uranium
project in the country’s north.
The project is in the flood plain of the Chui
River, 60km northwest of the capital Bishkek.
It has been the focus of a five-year exploration
program and it is estimated that there
are at least 1775 tonnes of uranium oxide
within the licence area.
The establishment of ERA will allow the uranium
business to be developed separately from
Eurasia’s precious metal business. Optiva Securities
will conduct a fundraising on behalf of
ERA to raise US$2.2 million. The funds will enable
ERA to execute the MoU, acquire the interest
in the project and progress it.
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India
INDONESIA WILL HELP MEET INDIA’S COAL DEMAND
Above ground infrastructure at Carbon Energy’s
Bloodwood Creek project in Queensland.
EMERGING coal supply areas in Indonesia
will be instrumental in meeting rapidly growing
coal demand from India, according to energy,
mining and metals research consultancy
Wood Mackenzie.
Drawing on information contained within
Wood Mackenzie’s Coal Supply Service and
Global Cost and Margin Tool, coal research
analyst Rohan Kendall told delegates at Coaltrans
India 2011 in New Delhi: “Indonesia will
account for 40% of growth in seaborne thermal
coal supply over the next 10 years, with
the emerging coal areas of the South Sumatra
basin and Wahau coal field making an important
contribution to this growth. There is
US$8 billion of infrastructure projects in the
pipeline in these emerging areas that will support
export growth.”
He said emerging coal regions were a good
fit for developing economies, such as India, because
the basins contained abundant reserves.
These areas were experiencing upstream investment
as Indian power generators such as
Reliance and Adani looked to secure coal supplies
for new power stations.
There are several ultra-mega power plants
being built in India with a capacity of more
than 4000MW each and still more are
planned. The projects currently in development
are similar in capacity to those in China
and are expected to be operational between
the second half of 2011 and 2014.
Rohan Kendall said, “Coal production costs
are low in emerging basins in Indonesia,
which is why they are attractive to Indian
power generators. The costs of investing upstream
to secure coal requirements are much
lower than Indian power generators would
otherwise pay if they were to purchase all of
their coal on the seaborne market. Also, for
power stations that are being built on the
coast, it is more realistic to seek seaborne
supplies which do not depend on India’s rail
network for transport.”
He said that in order for emerging thermal
coal supply areas to fulfil their potential, infrastructure
challenges needed to be overcome.
“There is currently insufficient infrastructure in
these areas to support large scale coal exports.
There are numerous projects proposed
which combined would add 140 million
tonnes per annum of capacity. We believe
that some of these are unlikely to progress
given regulatory challenges.”
Monnet Ispat and Energy (MIEL) is one
company taking this step with acquisition of
PT Sarwa Sembada Karya Bumi's coal mine
in Sumatra, Indonesia, for $24 million.
Spread over 25,000 hectares in Jambi
province, the mine provides MIEL access to
one of the largest thermal coal deposits in the
world and gives it a captive source to fire its
upcoming power projects. MIEL is working on
a 1700MW thermal power plant in Orissa and
plans to put up one more plant of 1300MW
capacity somewhere in Gujarat or Tamil Nadu.
MoU to pursue UCG operations
CARBON Energy has signed a Memorandum
of Understanding (MoU) with Adani Enterprises,
a member of the Adani Group of India, with the
aim of establishing a joint venture in India to pursue
Underground Coal Gasification (UCG).
The first opportunity that Adani and ASXlisted
Carbon Energy will explore has arisen
as a result of Coal India, a Government of
India undertaking, operating a tender process
in which Indian coal firms have sought UCG
technology partners to participate in joint venture
development of UCG interests. The MoU
facilitates the partnership between Carbon
Energy and Adani to jointly participate in this
tender submission.
The MoU is for 18 months during which it is
anticipated that Adani and Carbon Energy will
jointly prepare and submit a bid to establish a
UCG project on Coal India tenements in India.
If the bid is successful, Adani will bear all costs
throughout the exploration phase, including
Carbon Energy's reasonable costs, until exploration
has been successfully conducted
and a suitable UCG resource established.
Adani and Carbon Energy then anticipate
forming a joint venture company in India in
which Adani will have a 75% share and commitment
and Carbon Energy will have a 25%
share and commitment.
India is among the top three fastest growing
economies of the world and its energy needs
are rapidly expanding with its increased industrialization
and capacity addition in power
generation. Coal is the most dominant source
of energy in India's energy mix.
Carbon Energy’s managing director Andrew
Dash says that partnership with Adani brings
significant benefit to the company. “Carbon
Energy will now be pursuing projects on three
continents with the addition of India to our existing
interests in Australia and in Chile. Adani
is a major player in the Indian coal and power
industries and has already established itself
in Queensland, Australia. We are looking forward
to working with Adani to build Carbon
Energy's UCG project base in India.”
Adani Group's president - corporate planning
Harsh Mishra says, “Adani has selected
Carbon Energy as our technology partner for
this important submission to Coal India as it
is the leading proponent of UCG globally and
it has superiority in UCG technology based
on extensive research conducted in conjunction
with Australia's CSIRO.”
Carbon Energy's purpose is to produce
clean energy and chemicals feedstock from
UCG syngas. Its unique approach to UCG
and syngas production produces a low cost
option for capturing CO2, making it a leader
in clean coal technology. Its ambition is for
syngas to become the preferred feedstock for
producing clean coal power stations, an alternative
to oil-based fuel, agribusiness products,
polyolefin products and allowing for
economic carbon capture.
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Australian Junior Explorers
LACK OF INCENTIVE FOR
AUSTRALIA’S JUNIOR EXPLORERS
AUSTRALIA’S mining industry is benefiting
from continuing Asian demand for resources,
with China leading the way as its vast population
becomes more prosperous. Whether
Australia continues to reap these benefits in
the medium to long term depends on exploration,
which has traditionally been carried out
in the main by junior explorers.
The Australian Federal Government’s proposed
new mining tax has attracted plenty of
adverse comment from the mining industry,
even after its impact was reduced by the Julia
Gillard-led Labor Party. The watering down of
the original ‘Resources Super Profits Tax’ to
the ‘Mining Resource Rent Tax’ has, however,
also led to the scrapping of a proposed exploration
incentive.
There has not been as much comment about
this move even though it also seems certain to
adversely impact Australia’s mining industry.
Among those vocal about this change has
been Integra Mining’s managing director Chris
Cairns who told the Paydirt 2011 Gold Conference:
“While the focus has been on the tax’s
impost levels on iron ore and coal, for the wider
resources audience in Australia, we were and
continue to look for exploration incentives
under the tax’s broader provisions.
“The government’s argument for not having
such incentives is that Australia has accumulated
a significant inventory of unexploited
and accessible, economic known mineral and
petroleum reserves but that is a misleading
interpretation of the health of Australia’s identified
mineral endowment.
“The government continues to rely on data
that is flawed and misleading – no more so in
the gold sector. The government’s justification
for not providing exploration incentives was
that Australia has 29 years worth of gold reserves.
Nothing could be further from the truth.
“The figure is ridiculous. We would have well
less than 10 years of gold reserves and no gold
mine in Australia, excluding Olympic Dam which
is not a major gold producer, would currently
meet even a fifth of that reserves estimate.
“So the author of the Government’s resource
inventory reference base, Geoscience
Australia, should be held accountable for bad
science supporting bad policy.”
The industry’s long-term future in Australia
is also threatened by the large lag between
discovery and mining, an issue exacerbated
by the reliance on juniors taking up the exploration
baton.
Also addressing the Paydirt conference,
London-based GFMS World Gold Limited’s
managing director Paul Burton said the simple
fact was that gold exploration was not proving
as successful as in previous decades. “It has
been a lean time in terms of major finds.
“We can expect, because of current prices,
that there will be a short-term rise in gold production
but it will decline thereafter which will
only add to merger and acquisition activity.
“Australia emerged as the world’s second
largest gold producer in 2010 with 259
tonnes of gold output – a 16% year on year
increase but the first significant rise since
2002. One of the biggest short-term challenges
for the Australian gold industry, however,
is the production lag and lack of
exploration success.
“The turnaround is being left to the smaller
guys – the juniors who are doing more grassroots
exploration while the majors steer away
from it. The exploration percentage spending
by juniors worldwide now accounts for more
than 50% of all discoveries but while they are
always finding mineralization, they need to
find larger deposits as the majors are waiting
in the wings to grab them.
“For the majors, their problem is that they
have to find millions of ounces a year to replace
and boost their reserves and they are
not out there finding it themselves.”
Cape Alumina’s Bauxite Hills
project gains momentum
CAIRNS is one regional Queensland centre
set to benefit from a major boost to the local
economy as Cape Alumina’s Bauxite Hills
project gains momentum. The company has
begun an advanced exploration and drilling
program ahead of moving to the feasibility
stage at the western Cape York project,
95km north of Weipa.
The project is within the dissected lateritic
bauxite plateau between the Ducie and Skardon
rivers and just 5km southeast of an existing
port at Skardon River.
Cape Alumina’s chairman George Lloyd
says, “The proposed Bauxite Hills mine and
port project have the potential to deliver great
value for shareholders, the local Aboriginal
communities of western Cape York and the
people of Queensland. Regional centres such
as Cairns will be an important base for the flyin
fly-out component of the workforce.”
The exploration and drilling will help the
company establish a JORC-compliant resource.
Cape Alumina will then move ahead
with an Environmental Impact Statement (EIS)
and engage with the traditional land owners
to negotiate an agreement.
Seven prospective zones have been identified
at the project, with reconnaissance exploration
returning encouraging results. A
concept study for the Bauxite Hills mine and
port project has recently been completed
which prompted the company to plan the advanced
exploration and drilling program.
The concept study is based on production
of 100 million tonnes of dry, export‐grade
bauxite product and shows that, subject to
confirmation of resources, a 15‐year mine can
Cape Alumina’s Bauxite Hills project is north of the
Pisolite Hills project in Far North Queensland.
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Australian Junior Explorers
be established in the area. The study was
commissioned following the discovery of excellent
bauxite grades in early exploration of
Cape Alumina’s tenements at Bauxite Hills.
Bauxite Hills’ close proximity to the Skardon
River port has also given the company
the confidence to continue with the next
stages of development. George Lloyd says
“Another factor adding to the project’s attractiveness
is the solid international demand
for bauxite, which is a key ingredient
in the manufacture of aluminium products.
There’s also a strong outlook for the growing
Asia-Pacific bauxite market.”
The company will be working on the EIS
and conducting negotiations with landowners
as it approaches a 12 month anniversary
since the first survey results were announced
to the Australian Securities Exchange.
Cape Alumina controls 1900sqkm of tenements,
including 13 granted and four applications
for Exploration Permits for Minerals
(EPM), adjoining Rio Tinto Alcan mining leases
in the Weipa bauxite province of western
Cape York, Queensland. The company also
holds one granted EPM and two applications
on its Central Queensland bauxite project.
says, “The footwall lodes increase in copper
grade with increasing depth. We’re pleased
by the consistently strong results from the
Nymagee deposit. We look forward to releasing
the next RC drill results and then
commencing the next stage of deeper diamond
drilling with a view to demonstrating
the deposit continues to grow at depth and
along strike.”
Combining Nymagee with the Hera development
has the potential to produce significant
quantities of copper concentrate as well
as gold, silver, lead and zinc. The gold and
base metal Hera project is south of the Nymagee
copper mine which last operated in
1918 and has a recorded historical production
of 422,000 tonnes @ 5.8% copper.
YTC has increased its interest in Nymagee
to 90% after initially purchasing an 80% interest
from CBH Resources as part of its acquisition
of the Hera project in September
2009. The company is now the manager and
operator of the joint venture which includes
two exploration licences and four mining
leases at the Nymagee copper mine as well
as the tenement coverage of the Hera-Nymagee
corridor.
Thick seams intersected at Penryhn
WPG Resources is confident that a drilling program
under way at the Penryhn coal project in
South Australia will help verify an exploration
target of 200 million tonnes. The 3920 program
in 32 holes is nearing its half way point
with significant coal seams being intersected.
Penryhn is southwest of the town of Coober
Pedy and 25km from the rail loop, accommodation
village and a haul road that WPG is
building for its flagship Peculiar Knob Iron Ore
Project. This makes it ideally situated to benefit
from the infrastructure and the excess capacity
that will be available early next year at
the company’s Port Pirie export facility.
WPG’s executive chairman Bob Duffin says,
“The drilling program is designed to extend
the definition of the coal seams intersected in
the traverse of diamond core holes completed
in 2010. The objective is to verify the
exploration target of 200 million tonnes and
in so doing enable JORC compliant resources
to be estimated.
“This exploration target is based on the
drill hole and coal quality data currently
available and is conceptual in nature. To
date there has been insufficient exploration
Nymagee results add to Hera potential
RESULTS from a further two reverse circulation
drill holes at YTC Resources’ Nymagee
copper deposit near Cobar in western New
South Wales confirm the persistence of broad
widths of strong copper sulphide mineralization
at shallow depths.
Highlight intersections from these holes include
13 metres @ 1.0% copper from 52 metres,
20 metres @ 1.3% copper from 88 metres
and 21 metres @ 1.6% copper from 48 metres,
including 10 metres @ 2.9% from 56 metres.
The company says the Nymagee deposit
has the potential to be mined under an expanded
development in conjunction with the
company’s nearby Hera project.
Strong drill results from the northern section
of the deposit have also been obtained, including
broad copper intersections of 6 metres
@ 2.1% and 31 metres @ 1.7%.
The deepest drill hole to date has confirmed
the discovery of two new contiguous high
grade copper lodes revealing the Nymagee
deposit’s potential to host multiple ‘blind’
copper pipes at depth. These two lodes returned
intersections of 12 metres @ 3.2%
copper from 323 metres and 7 metres @
1.7% copper from 443 metres.
YTC chief executive officer Rimas Kairaitis
WPG’s suite of tenements is in the centre of South Australia, not far from the town of Coober Pedy.
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Australian Junior Explorers
to define a coal resource, and it is uncertain
if this planned further exploration will result
in the definition of a coal resource.”
Significant coal seam intervals have been
intersected in two holes at the sub-bituminous
coal deposit. One hole has shown preliminary
results of four seams at a total depth
of 150 metres with a total seam thickness of
5.2 metres and a maximum seam thickness
of 3.6 metres. A total of 1073.3 metres of
open hole drilling and 60.7 metres of PQ3 diamond
coring had been completed by April.
Core samples will be dispatched to a laboratory
for the usual suite of thermal coal
analyses. In addition, samples will also be
sent to American company Evergreen Energy’s
K-process plant in Wyoming for upgrading
test work.
The budget for the drilling program including
analyses is just over $1 million.
The Penrhyn coal project is intended to form
part of the proposed joint venture with Evergreen
Energy that was announced in February
this year. Under the terms of the present agreement,
the joint venture will have the rights to the
first 15 million tonnes of upgraded coal produced
anywhere in Australia using Evergreen’s
KFuel process. After the first 15 million tonnes,
the joint venture will have the first right to participate
in new coal upgrading projects Evergreen
undertakes in Australia on terms to be
negotiated in good faith at the time.
Yarloo Well survey identifies anomalies
FOUR conductive anomalies have been identified
by an electromagnetic survey at the
Venus Metals’ Yarloo Well Murchison Base
Metals Project, 500km north of Perth in Western
Australia. The helicopter survey was flown
on east-west oriented lines at 150 metres line
spacing for a total of 202 line kilometres. It
was taken to provide both conductivity and
magnetic data to highlight any massive sulphides
or conductive materials.
Venus Metals’ managing director Matthew
Hogan says “Strong electromagnetic anomalies
have been responsible for major base
metal discoveries in Australia and Canada
and the Yarloo Well results are significant for
the company.”
An initial review of the preliminary field data
shows that Anomaly 1 represents a subtle
late time double peaked response evident
over 300 metres, located about 1km southsoutheast
of the Yarloo well. Anomaly 2 is a
strong northeast trending conductor about
1.5km in length in the centre of the project.
Anomalies 3 and 4 are small and at the
southern end of the survey area.
Anomalous base metal geochemistry has
previously been returned from a CSIRO well
and water bore sampling program in July
2010. A significant result from one sample
showed strongly elevated copper (466ppb)
and zinc (540ppb) values.
CSIRO researchers have reported that:
“The groundwater is more saturated with respect
to these secondary copper minerals
than any other sample previously collected in
the northeast Yilgarn regional groundwater.
The Yarloo Well groundwater chemistry is
similar to that found in groundwater near the
Jaguar VMS deposit.” That deposit is 300km
north of Kalgoorlie in Western Australia.”
Further processing, inversions and reconciliation
of the anomalies will be completed
now the final data from the Versatile Time Domain
Electromagnetic (VTEM) survey has
been received. The commissioning of follow
up programs to drill test the final anomalies
will also occur.
Matthew Hogan says “We are very encouraged
by the survey results. The Yarloo Well
Project is within a highly prospective copper
mineralized greenstone belt that has seen
very little exploration to date. We have gone
from having a strong base metal geochemical
anomaly to now having four electromagnetic
geophysical targets for drilling.”
SER’s Uley Graphite Project in South Australia includes a processing facility which has been
under care and maintenance since the operation ceased in 1993.
Uley due diligence process
A JOINT venture agreement covering Strategic
Energy Resources’ (SER) Uley Graphite
Project in South Australia is progressing well
with due diligence under way. Last December
SER signed a non-binding, non-exclusive
term sheet with a North American minerals
group for development of the project.
Uley forms part of the Mikkira Graphite
Province on the Eyre Peninsula and is one of
the largest coarse flake graphite deposits in
the world, containing disseminated, highgrade
flake graphite.
Engineering studies and graphite tests are
progressing with SER anticipating the signing
of a definitive joint agreement following completion
of a JORC upgrade for Uley Main
Road Project. Two SER directors have also
visited the North American group.
Drilling of about 1200 metres has been
completed at the Main Road deposit with the
aim of confirming the shape of the deposit
and upgrading the resource.
Expanded graphite tests have shown
promising results at the site which was discovered
in 1910 and worked intermittently
until a sharp decline in world graphite prices
and an increase in freight prices caused the
mine to cease production in 1993.
During operation the mine was capable of
annually producing up to 14,000 tonnes and
SER is confident it can be expanded to
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Australian Junior Explorers
20,000 tonnes, rating it as one of the largest
in the world. The mine and processing facility
has been under care and maintenance since
its closure and the processing plant requires
some refurbishment. Power, water and communication
lines are still connected.
The existing plant and metallurgical test
work provide a strong platform to undertake
a robust feasibility study for an operation annually
producing 10,000–20,000 tonnes.
There is a nearby workforce and substantial
infrastructure with exports expected to be
made 23km away through the deepwater
port at Port Lincoln.
The mineralization is close to the surface
and the graphite produced during previous
years of operation was known for its high
quality. Inferred resources at Uley are 3.2 million
tones at 9% total carbon.
SER’s Uley project presents an exciting opportunity
to take advantage of the current
graphite market. Technical evaluation of the
resource and optimum processing route has
begun. SER continues to review other proposals
for development of the project. A proposal
from a Chinese group was declined by
the board as it did not deliver superior value
compared to the existing agreement. Other
proposals being received are generally from
commodity houses seeking offtake agreements.
These type of agreements are very
encouraging for the development of the project
and offer potential further possibilities.
Licence to explore silver prospects
PEEL Exploration has begun negotiations with
landholders near three historic mines in the
North Eastern New South Wales silver fields.
The company has been granted a 60sqkm licence
to explore the Ruby, Tulloch, Rockvale
deposits in an area that covers much of the
central part of the Rockvale Adamellite, about
30km east of the town of Armidale.
The major known deposits are the Ruby
and Tulloch silver mines but there are many
underexplored prospects and anomalies
within the licence area, adding to its silver and
gold prospectivity.
The Ruby Silver mine has a lode up to 1.4
metres wide and was worked to a depth of
120 metres between 1895 and 1905. During
that time, production is estimated to be about
350,000 ounces of silver at a recovered
grade of 20 ounces per tonne.
In 1968, a nine-hole diamond drill program
was undertaken by Silver Valley Minerals to
test the main workings at the mine. While
records of this work are poor, it is known the
first hole intersected 5.08 metres @ 216
ounces/ton from 90.5 metres. Three of the
other holes intersected old workings, while
values in a further three were reported as
‘low’ and no results were recorded at the remaining
two holes. While results from an IP
geophysics survey in 1969 suggest that sulphide
mineralization possibly extends well beyond
the silver-rich shoot, no further drilling
has been completed at the Ruby mine.
Peel’s managing director Rob Tyson says
“The Ruby Silver Project is an excellent addition
to Peel’s existing precious and specialty
metals mineral assets and offers potentially
high grade exposure to an increasingly valuable
metal – silver. We have commenced
landowner negotiations and will be looking to
kick start exploration over the near term.”
The Tulloch mine was in operation between
1913 and 1928 when an estimated 50,000
ounces of silver at a recovered grade of 200
ounces per tonne were won.
The Rockvale arsenic mine was discovered
in 1923 and mined to 1928, producing almost
3000 tonnes of ore containing about
600 tonnes of white arsenic. Mineralization is
predominantly pyrite-arsenopyrite, but goldsilver-lead
mineralization is also recorded.
About 2km from the Ruby silver mine lies
the Silver Point prospect which comprises a
pipe-like body of aplite about 50 metres in diameter.
Previous exploration has identified
highly anomalous silver-gold mineralization in
surface rock chips and Peel believes that Silver
Point has bulk tonnage potential and will
be drill tested accordingly. The Happy Valley
and G Reef prospects lie along strike to the
west of the Tulloch silver mine, where historic
workings show a highly anomalous silver-gold
mineralization in surface rock chips. A strong
IP anomaly between the Tulloch mine and
Happy Valley is yet to be tested.
Rob Tyson says “This area represents a
unique opportunity for exploration. The region’s
rich mining history and numerous mineral
discoveries including Hillgrove, Timbarra
and Twin Hills. It has had minimal modern exploration,
and we’re pleased to announce our
exploration will begin soon.”
Waddikee drilling under way
MONAX Mining has begun drilling its Waddikee
Manganese Project on South Australia’s
Eyre Peninsula. The RC and aircore program
will cover about 3600 metres of the southern
extension of the Jamieson Tank and four
other regional prospects, situated south of
the Kimba township.
Drilling to date at Jamieson Tank and
Polinga prospects has been promising, with
two diamond drill holes planned at Jamieson
Tank to depths of 100-120 metres to provide
stratigraphic, structural, petro-physical, geochemical
and metallurgical control of the
manganese mineralization. The diamond
holes will be strategically placed to replicate
the better intercepts from the existing and
current RC/aircore drilling.
The company says the larger diameter diamond
core will provide an excellent sample
to conduct extensive geological investigations,
unlike the RC/aircore drilling which pulverizes
the sample. Manganese samples
from the diamond drilling will be submitted for
laboratory metallurgical test work.
Monax managing director Gary Ferris says
“We are excited about the start of this next
round of exploration at Waddikee. If we can
successfully identify good manganese mineralization
at any of the regional prospects, this
will greatly increase the overall prospectivity
of the entire project.”
Magnetic ground surveying at Jamieson
Tank, Windyzell, Bunora West and Hodgins
was completed in January and accurately determined
the location of the magnetic anomalies.
This information helped plan the drill
holes for the current program.
Twenty eight holes are planned for a total of
1680 metres at Jamieson Tank, adding to the
7200 metres already drilled at the site. Significant
manganese results from this program
include 2 metres @ 34% manganese and 3
metres @ 21.2% manganese. Significant intersections
of iron include 12 metres @33.8%
iron and 16 metres @ 34.6% iron.
Subsequent to the drilling at Jamieson
Tank, regional prospects Polinga, Windyzell,
Bunora West and Hodgins will also be drill
tested on anomalous results from previous
rock ship sampling and auger soil sampling.
Anomalous manganese at Polinga has
been traced. Monax previously drilled four
holes with one intersecting manganese and
another intersecting significant iron, including
44 metres @ 34.6% iron.
At Windyzell three manganese anomalies
have been revealed along strike, with 10 holes
to be drilled to investigate them. Three holes
will be drilled at Bunora West to test a historical
geochemical anomaly, and five holes will
be drilled at Hodgins where rock chip sampling
has reported up to 37% manganese.
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Australian Junior Explorers
Thick magnetite intervals at Mutooroo
THE first drill holes at the Muster magnetic
anomaly in South Australia have established
the presence of a very thick laterally extensive
sequence of magnetite-bearing sediments.
The anomaly is part of the Mutooroo Magnetite
Project, a joint venture between Sumitomo
Metal Mining and Minotaur Exploration,
and which is southwest of the far west New
South Wales mining town of Broken Hill.
Minotaur says that seven holes were drilled
in the initial program along an east-west traverse
at Muster Dam and at Muster Catch
near the Mutooroo Homestead, for a total of
1595 metres. The Muster magnetic anomaly
represents laterally persistent, magnetite-rich
strata over a strike length in excess of 10km.
It’s one of five large magnetic bodies covered
in the exploration licence. The most magnetic
central portion of the anomaly is about 300
metres true thickness.
Within the sediments, magnetite is predominantly
fine grained and dispersed, especially
within the glacial tillitic horizons.
Magnetite is also concentrated within discrete
bands resulting in finely inter-layered magnetite-bearing
and magnetite-poor layers.
Some coarse-grained magnetite crystals up
to 3mm across are also present, though are
atrongly altered.
Field magnetic susceptibility values were
determined on all RC drill cuttings at one
metre intervals and on drill core at 0.25 metre
intervals. All of the drillholes consistently contain
abundant magnetite-bearing lithologies
and layers with moderate to high degrees of
magnetization. Minotaur is awaiting test work
which will ascertain their recoverable iron
content from geochemical analysis and Davis
Tube Recovery Concentrate.
Magnetic siltstones exposed about 500
metres northwest of the Muster Dam and
highly magnetic strata were intersected in
some drillholes within 5 metres of the surface.
The depth of oxidation at the dam is minimal
which indicates any mining operation would
have an extremely low strip ratio.
Test work is also under way to determine
the precise iron content for the glacial ironbearing
sediments. Assays, DTRC, petrophysics
and geophysics will also enable the
estimation of the exploration target size and
set a detailed work forward plan.
A team from Golden Cross Resources examines historic workings at the Copper Hill copper/gold project.
Further positive Copper Hill results
FOUR holes testing zones of known mineralization
within the main body of the porphyry
deposit at Golden Cross Resources’ Copper
Hill project near the small town of Molong in
Central West New South Wales have revealed
an extended and improved resource.
Golden Cross says the latest results improve
on previous ones, showing that grades
are better than expected and providing further
encouragement for the future of the project.
The Copper Hill resource estimate is
535,000 tonnes of copper and 1.47 million
ounces of gold @ 0.31% copper and 0.26
grams/tonne of gold.
The latest assay results confirm the presence
of a large mineralized zone with elevated copper-gold
values. The best result was 313 metres
@ 0.25 grams/tonne gold from 270 metres.
With stage one of the feasibility study completed
by China Nerin Engineering, Golden
Cross’ managing director Kim Stanton-Cook
says “Senior consultants have been appointed
for mine geology and engineering, environmental
assessments and hydrology studies,
pushing the project into the second stage of
the feasibility process. Completion of a bankable
feasibility study is expected by the end of
the year to present to Chinese financiers.”
Golden Cross has three drilling programs
under way in the Molong area. At the Wattle
Hill resource, 500 metres south of Copper
Hill, assay results including 21 metres @ 0.3%
copper and 0.32 grams/tonne gold from 37
metres have been received.
Insufficient drilling has been completed between
the two resources, but there is a pos-
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Australian Junior Explorers
sibility that strike extensive zones of +1%
copper could lie between Wattle Hill and extend
beneath the current optimized Copper
Hill open pit. A further drilling program of
8500 metres at the two resources as well as
Buckley’s Hill will continue until June.
A project manager has been appointed at
the Copper Hill project. Mark Moddejongen,
who has more than 30 years Australian and
international experience in feasibility studies,
mine planning and operational experience,
will lead a new team of senior geologists,
metallurgists and engineers to bring the mine
to production by 2015.
Copper Hill was one of the two first mines
operating in Australia in 1847 when the Molong
Mining Company officially commenced
operations. Since then, its history has been
spasmodic with many changes of ownership
and subsequent activity. It is currently Golden
Cross Resources’ flagship project.
High-grade Edna May results
THE first hole of a new infill/extension drilling
program at Catalpa Resources’ Edna May
Gold Project has resulted in high-grade intersections.
The program is testing the further
potential of the multi-million ounce project near
Westonia in Western Australia with a resource
update scheduled for the June quarter.
Seven holes over 2655 metres targeting lateral
extensions to high-grade gold mineralization
beneath the existing open-cut
operation have been completed.
One hole intersected two main zones of
reef development down dip of historical underground
workings within the Edna May
Gneiss. Intersections from this hole include
8.4 metres @ 19.2 grams/tonne gold and 1.3
metres @ 102.5 grams/tonne gold. An intersection
of 0.7 metres @ 7.2 grams/tonne
gold was also returned from 389.30 metres
within the pegmatite, possibly representing
remobilized mineralization.
These results continue to underpin expectations
that the Edna May mine life may be
extended beyond nine years and that gold
production may be substantially increased.
A total of 36 holes across 24,000 metres
will test the under-explored Golden-Point and
Greenfinch mineralization corridors. There will
be 28 RC holes for 5800 metres drilled at
Greenfinch in late 2011, testing westerly extensions
to mineralization from the site’s
planned open pit design.
It is part of Catalpa’s five year growth strategy
to increase production at Edna May by
concurrent mining of high grade underground
ore with existing open pit operations. Subject
to positive underground mining study results,
it is envisaged that high grade mill feed will be
delivered to the Edna May plant next year.
Catalpa’s managing director Bruce Mc-
Fadzean says, “Our flagship Edna May project
boasts a nine year mine life with a forward
sold position of 318,000 ounces of gold at
Aus$1557.50 an ounce. Together with our
Cracow Gold Point Project in Queensland,
these operations provide a sustainable long
life cash flow to fund Catalpa’s growth strategy
and provide shareholder returns.”
The company’s fully funded drilling programs
will continue throughout 2011, targeting priority
areas for a resource upgrade and expansion.
Transport negotiations for Hawsons
DISCUSSIONS are under way to negotiate
rail transport and shipping of iron concentrate
from Carpentaria Exploration’s Hawsons Iron
Project near Broken Hill in far western NSW.
The Hawsons project is one of several sites
under aggressive exploration by the company
in the region which adjoins the South Australian
border. It’s also the largest magnetite iron mineral
resource in NSW and one of the largest resources
of this type in eastern Australia.
A pre-feasibility study has been completed
on Hawsons and an exploration team is ready
to start exploring the McDougalls Iron Project
north of Broken Hill. This site could offer direct
shipping ore as well as magnetite and is in similar
geology to the flagship Hawsons project.
Carpentaria’s executive chairman Nick
Sheard says “Reconnaissance mapping,
sampling and target drilling will help us assess
the prospect.”
Potential development of the Hawsons joint
venture between Carpentaria and Bonython
Metals Group has been assessed in the
study. Initially it’s hoped the mine will annually
produce 6 million tonnes of high grade magnetite
concentrate at 69.9% iron, with a view
to increasing annual production to around 20
million tonnes. The company says it will use
existing rail and power infrastructure.
The inferred resource contains 220 million
tonnes of magnetite at a premium grade of
69.9% iron and 2.5% silicon dioxide, with no
significant impurities.
Bonython Metals has a 40% interest in this
project which it can increase to 51% with a
$25 million payment to Carpentaria and funding
of a bankable feasibility study by May
2012. Nick Sheard says “The company is well
Carpentaria Exploration has a number of prospects
throughout eastern Australia and is concentrating on
the suite of projects around Broken Hill.
placed to begin production at the $81 million
venture in the near future.”
At the company’s other projects, work is also
under way to assess the tin, nickel and copper
sulphide potential at Euriowie and Apollyon
now that the Yanco Glen tin and tungsten project
has been acquired. Carpentaria is awaiting
the title from the NSW government.
Rock chip sampling at 12 separate pegmatite
dykes at Euriowie have proven somewhat
disappointing with the Mount Euriowie
dyke showing the most potential for tin.
The company’s Koonenberry Exploration
Project covers about 1800sqkm, about
200km north of Broken Hill. The geological
province prospects include ultramafic intrusion
related nickel and copper sulphide, and
sediment hosted polymetallic massive sulphide
and quartz reef gold mineralization.
Ausgold accelerates Katanning drilling
TWO new reverse circulation drill rigs have arrived
at the same time as a newly-appointed
chief resource geologist for Ausgold’s Katanning
gold project in Western Australia.
The rigs will be used at the site, 275km
southeast of Perth, in an effort to speed up
Ausgold’s 27,000 metre drill program.
Katanning has a JORC-compliant resource
of 241,800 ounces of gold within five ore
bodies, but the company will be revising its
JORC resource estimation and initial pit optimization
once new results have been tabled.
Ausgold has also appointed Mona Sulaiman-Gale
as its chief resource geologist.
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Australian Junior Explorers
Alloy Resources is exploring manganese prospects near the town of Cootamundra in New South Wales.
With 15 years’ experience as a resource and
exploration geologist at companies including
Intrepid Mines and Perilya, Mona Sulaiman-
Gale will be managing the resource drill at
Katanning. Her priority targets include Datatine
and Fraser along the Jinkas strike.
The intrusion-related gold deposit is
demonstrating mineralogy and ore genesis
similar to Newmont’s nearby 26 million ounce
Boddington Gold Mine. Ausgold recognized
the potential replication of Boddington at
Katanning and started drill testing the primary
gold mineralization in September 2010.
Ausgold CEO Ben Bell says “Our initial
focus has been to test the strike extent of the
ore body beyond the historic oxide open pit.
This latest round of drilling clearly defines that
the higher grade primary gold mineralization
beneath the oxide resource does indeed remain
open both along strike and at depth.”
The company has employed three separate
Perth-based laboratories to carry out
the assay test work to ensure an accelerated
release of the results. In the field, Ausgold
is now routinely using a portable XRF
analyzer to identify potential ore zones immediately
as they’re drilled. The analyzer
detects tungsten well by extension and has
provided Ausgold with an impression of the
width of gold intersections. The company is
now prioritizing those samples with elevated
tungsten values to also minimize the turnaround
time from the labs.
“We remain confident that as we continue our
ongoing drilling program at Katanning, results
will continue to extend known mineralization
and in turn, significantly increase our JORC resource.
We will look to extend the depth of our
drilling, particularly given the significant result of
the first hole drilled to test the depth continuation
of the Jinkas ore body which hit 10 metres
@ 3.45 grams/tonne gold,” says Ben Bell.
Funds for Alloy exploration
ALLOY Resources will use more than
$600,000 raised in a share placement to advance
exploration and evaluation programs at
two of its projects - the Horse Well Gold Project
in Western Australia and the Cootamundra
Manganese project in New South
Wales. The placement was made to professional
and sophisticated investors.
Alloy’s managing director Peter Hepburn-
Brown says, “These proceeds will also provide
working capital and the company will
continue to review project acquisition opportunities
as they arise.”
Horse Well is in the Warburton Mineral Field,
85km northeast of the town of Wiluna. It occurs
in the northern part of the Yandal/Millrose
Greenstone belt that hosts a number of
multi-million ounce gold projects including the
Bronzewing and Jundee mines. Recent
drilling from the Horse Well project has increased
its JORC resource by 26% to 98,700
ounces in near surface deposits.
Exploration in the region is historically immature,
with the northern end of the Yandal
Greenstone belt having been largely ignored
until the discovery of significant gold deposits
at Bronzewing and Jundee in the 1990s.
Work to date at Horse Well has hosted geological
and regolith mapping, surface geochemical
sampling, geophysical surveys and
RC, aircore and some diamond drilling. The
project’s four prospects account for the revised
estimate of 1.054 million tonnes @ 2.91
grams/tonne for 98,700 ounces of gold. The
largest prospect is the Palomino, which accounts
for 53,150 ounces.
Alloy’s Cootamundra project sits in the Lachlan
Fold Belt which is a well-endowed porphyry
copper-gold belt hosting a number of operating
mines including North Parkes, Cowal and
Cadia-Ridgeway. The tenements run along the
eastern side of the town of Cootamundra
which is 120km northwest of Canberra, and
host a number of known historic manganese,
gold and base metal occurrences.
The prospect is close to infrastructure and
support mining and transport operations. The
overall length of the mapped known mineralization
zone is 550 metres. Geophysical surveying
and sampling of the project following
up on historical mapping have shown there
are several manganese occurrences of high
grades above 40%.
The manganese mineralization is associated
with a magnetite quartzite and meta-siltstone
contact forming 1-3 metre wide
elongated lenses that continue at depth. The
manganese target trend is mapped to be
about 800 metres long and may extend beyond
the limits of a Gradient Array Induced
Polarization (GAIP) survey.
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Slurry Pumps
SPOTLIGHT ON SLURRY
Plant operators, pump suppliers and researchers continue to pursue higher efficiency and reliability in slurry transport applications
BY RUSSELL A. CARTER, MANAGING EDITOR E&MJ
IN the mining industry, time is money—and
so is water. And unscheduled downtime is big
money, lost. When it comes to pipeline transport
of fluids and other materials involved in
mining applications, such as slurries, viscous
liquids, reagents or concentrates, the longer
a pump can operate without maintenance or
failure, the better. And the less water a plant
operator needs to add, pump or remove during
a process also generally translates into
lower operating costs. Consequently, the pursuit
of ever-more cost-efficient pumping technology
is a constant source of interest to
miners, a fertile landscape for researchers
and a financially attractive business sector for
consultants, engineering companies and related
enterprises.
Promoting Peristalsis
In the spectrum of mining-related pumping
applications, slurry transport may possibly be
the most universally troublesome process of
them all. Apart from often just being difficult to
pump, slurries and thick liquid-solid materials
also may be abrasive, corrosive or both, resulting
in high operating and maintenance
costs. The equipment of choice for pumping
slurries has long been centrifugal-type
pumps, but evolving technology has produced
a challenger to centrifugal’s reign: the
peristaltic or hose pump. With few moving
parts to break or wear out, easy maintenance
requirements and an appetite for a wide
range of pumpable materials, these mechanically
simple pumps have found their way into
a growing variety of mining uses.
Outotec Australia recently described how a
set of Larox Flowsys peristaltic pumps, in
concert with Outotec Larox CC filters, helped
At Terramin Australia Ltd.’s Angas zinc mine, two Larox Flowsys peristaltic pumps transport thickener underflow to filters for dewatering. The cutaway photo shows the internal
rotor mechanism that squeezes the slurry-filled hose, pushing the material forward and creating a strong vacuum that draws more slurry into the pump.
May/June 2011 | ASIA Miner | 77

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Slurry Pumps
an Australian zinc mine surpass startup expectations.
The Angas zinc mine, in South
Australia, is 100% owned and operated by
Terramin Australia In its first year of operation,
the low-cost mine, with a resource of 2.4 million
tonnes and situated just 60 km from
Adelaide, produced nearly 23,000 tonnes of
high-grade lead and zinc concentrate by the
end of its second quarter.
Following commissioning in July 2008, the
operation was brought into full production six
months early, in January 2009. According to
an informational update recently released by
Outotec Australia, the mine exceeded production
start-up expectations, in part by
using Outotec Larox CC filters (formerly Larox
Ceramec capillary action disc filters), which
are efficiently dewatering higher-than-expected
grades of zinc and lead concentrate.
In addition to the filters, the other important
ingredient in the mine’s advanced filtering and
drying system is a pair of Larox Flowsys peristaltic
feed pumps. These pumps employ a
single, bearing-mounted eccentric roller design
that compresses each hose once during
a 360o operating cycle. This feature, according
to Larox Flowsys, reduces the hose compressions
required by 50% compared with
peristaltic pumps that use two sliding shoes
for compression. With these pumps, hose
leaks can easily be detected,
revolution counters can track
pump hose life (thereby reducing
unscheduled stoppages) and
processing noise levels can be
kept to a minimum.
After slurry thickening, the
pumps feed the relatively coarse
lead (P80, 50 μm) and zinc (P80,
71 μm) concentrates into their
respective filtering circuit. There,
concentrates coat the ceramic
disk segments during immersion
in slurry baths and dewatering
starts immediately via capillary
action. Extracted filtrate passes
through the microporous structure
in each disk before being removed by a small,
2.2-kW vacuum pump. The dried filter cake
that remains is continuously scraped off as the
disks rotate. The extracted filtrates are very
high in clarity while the dried filter cakes meet
required transport moisture limits (TMLs) for
their ore grades.
Outotec Australia notes that the Larox CC
filter has undergone extensive development
to establish itself as a top performer. When
lead grades rose higher than expected soon
after installation, the filters were quickly upgraded,
providing Angas with a 30% increase
in filtration capacity, allowing the handling of
higher lead concentrates when the ore grade
is high. As a result of this upgrade, the lead
filter can capably handle higher lead head
grade ore and increase production while still
producing filter cake under the required TML.
Less Water, Lower Costs
Watson-Marlow, another manufacturer of
peristaltic pumps, highlights its line of heavyduty
Bredel SPX thickener underflow pumps.
As the company notes, peristaltic hose
pumps of this type are virtually maintenance
free with no impellers, liners or mechanical
seals to replace, no check valves to clog and
no rotors and stators to wear out. In addition,
they can be considered water-saving devices,
because not only can they handle very
high solids-content material, they don’t need
gland water, thus eliminating the requirements
to either treat process waste water or
provide pump service water.
According to Watson-Marlow, every one of
its peristaltic pump models is an inherent metering
pump with repeatability of 99.5%.
Many models include integral digital drives
with Profibus or SCADA control in NEMA 4X
Watson-Marlow’s Bredel SPX thickener pumps employ peristalic action
to transport highly concentrated material.
washdown enclosures. These self-priming
pumps accommodate flow rates from 0.1 microlitre
to 350 gpm, and are extremely
durable, withstanding pressures up to 232
psi. There are no internal universal joints,
valves, dead corners, or glands to impede
flow, and they are reversible for backflushing.
As a real-world example of how these pumps
can provide efficient solutions to specific problems,
Watson-Marlow cited a large copper and
gold mining company in the Southwest US that
had to frequently replace components on hard
chrome iron centrifugal pumps used in a difficult
tailings slurry application. The centrifugal
pump impellers were wearing out every two
weeks, causing significant downtime and
costly repairs. The mine considered several different
pump technologies, finally selecting Marlow
Bredel SPX100 hose pumps. In this
application, the hose pumps transfer tailings
slurry 2,200 ft to a separate plant. With no
seals to flush and the ability to pump tailings
with a high solids concentration (80%) the mine
uses much less water with the SPX pumps,
providing considerable savings in both maintenance
costs and water usage.
The Hose is the Heart
Netherlands-based Verder Group is another
well-known supplier of peristaltic pumps. The
company was able to solve a critical pumping
problem by installing its Verderflex peristaltic
pumps at Vale Inco’s Voisey’s Bay coppernickel
mine in Newfoundland, Canada.
At Voisey’s Bay, the high-grade nickel,
copper and copper-nickel concentrate slurry
flows produced at the remote are abrasive,
with 68%–72% solids by weight. Consequently,
the mine’s original centrifugal
pumps suffered eroded seals, clogged
valves and rotor and stator wear,
leading to downtime, high wear
part costs and difficulty in meeting
the 40–90 gpm flow rates required
to achieve the plant’s 7000
tonnes/day throughput target.
Verder’s peristaltic hose pumps
are characteristic of the overall
pump class, with no seals, valves,
glands or moving parts in direct
contact with the slurry, which is
contained within a tough, flexible
hose. The heart of the Verderflex
design, according to Verder, is the
hose, which is specially designed
and manufactured for maximum
strength and resistance against harsh
chemicals and abrasive slurries, while textile
reinforcements within the hose allow for discharge
pressures up to 16 bar/ 230 psi. The
hose is squeezed externally by a rotor, forcing
the contained material forward while generating
a strong vacuum that draws additional
slurry into the hose. The low-shear pumping
action provides a smooth flow passage with
no backflow, which keeps the slurry in constant
suspension.
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Slurry Pumps
At Voisey’s Bay, each of the concentrate
lines was initially fitted with a 10-ft suction
line, later reduced to 7 ft of 4-in.-diameter
pipe. The discharge lines are 3-in. rubberlined
pipe with an inside diameter of 2.5 in.;
the line used to move the high-grade copper
concentrate is 60 ft long, that for the mixed
concentrate is 90 ft, and the high-grade
nickel concentrate line is 100 ft. To maintain
a smooth flow path and control pulsation
along these long lines a 21-gallon air dome
was fitted on the discharge side with a constant
air feed of 1 bar.
Pump hose life in continuous duty has
ranged from 3,200 hours for the high-grade
nickel line to over 4,000 hours for the highgrade
copper and mixed concentrate lines. A
new hose is routinely installed at 4,000 hours,
a procedure that takes between 1-1.5 hours.
600%—associated with conventional designs
of high-concentration flows, which result in
pipeline transport failures or the inability to
pump the desired amount of solids. “Being
able to make more accurate predictions will
help the industry to optimize design and
achieve a much better outcome,” he explained.
As well as extending Pipetools, the new
project aims to help industry sponsors apply
this technology and in turn reduce energy use,
water use and capital design costs, while operating
pipelines with better reliability.
Wu said further research will be undertaken
into high-concentration, wide size-distribution
suspensions through horizontal and inclined
pipes at energy consumptions comparable to
conventional conveying techniques.
Vertical hoisting will also be researched.
“The anticipated benefits of vertical slurry
pipelines as a future technology for deep
mine transport include less in-ground manpower,
less maintenance, potentially lower
capital and running costs, and it will be inherently
safe,” Wu said.
Research will focus on developing optimum
designs to convey ore solids via vertical pipes
at reduced energy cost and with high reliability.
Blending of crushed ore with carrier fluids
will be used to achieve stable, low speed and
safe conveying. A CSIRO technology will be
tested in sponsor-nominated design cases,
to demonstrate reduction of energy consumption
against the conventional mechanical
transport methods.
Overhauling Slurry Pipeline Design
On a broader scale, research into more efficient
modes of slurry transport continues on
a number of fronts. Recently, the Australian
research organization CSIRO reported on an
ongoing program involving fundamental research
efforts into high concentration slurry
transport and, through this, optimizing designs
for solids transport in several areas.
Author Rebecca Thyer explains, in a recent
issue of CSIRO’s newsletter, Process, how
the organization’s Dr. Jie Wu is leading an internal
project on pipeline transport, because
transporting ores, concentrates and residues
in a slurry form is such an essential part of industrial
processes.
In an effort to reduce both water and energy
consumption and improve the slurry transport’s
reliability, researchers have built a fundamental
understanding of slurry flow
design—particularly for highly concentrated
slurries—via two previous projects.
Although a goal is to use less water in the
transportation process, doing so creates
thicker, more paste-like slurries, which in turn
creates other issues, according to Dr. Wu. On
one hand, more product can be moved at
lower velocities; but on the other, pipes and
associated infrastructure have to be designed
to handle the thicker flows.
To address these issues, researchers will
use and fine-tune methods embodied in
Pipetools, a software program developed in
previous projects that provides a more accurate
prediction of the behavior of concentrated
suspensions compared to existing tools.
Wu said there are huge errors—up to
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2011 Calendar
Austmine 2011, May 17-18, Brisbane,
Australia. www.austmine2011.com
World Mining Investment, May 17-19,
London, UK. www.terrapinn.com/2011/mining/
Australian Energy & Resources Symposium,
May 21-25, Broken Hill, NSW, Australia.
www.symposium.net.au
17th Coaltrans Asia, May 30-June 2,
Bali, Indonesia. www.coaltrans.com
Mines & Money Beijing, June 14-15,
Beijing, China.
www.minesandmoney.com/beijing/
Attracting, Skill Development and
Retention for the Resource Sector,
June 15-16,
Brisbane, www.criterionconferences.com
7th Balikpapan Expo, June 16-18,
Balikpapan, Indonesia.
ww.sinarexpoprima.com
Central Asia Mining Congress, June 20-23,
Almaty, Kazakhstan.
http//expopromoter.com/event/lang/en/
Coaltrans Mongolia, June 21-22,
Ulaanbaatar. www.coaltrans.com
Safety in Mining Conference, June 21-22,
Perth. www.criterionconferences.com
AMEC Convention, June 28-30,
Perth, Australia. www.amecconvention.com.au
Global MInES Sydney 2011, July 4-6.
www.acevents.com.au/mines2011
India Coal 2011, July 26-27,
Kolkata, India. www.asappmedia.com/events
Diggers and Dealers, August 1-3,
Kalgoorlie, Westernn Australia.
www.diggersndealers.com.au
Coaltrans Australia, August 23-24,
Brisbane www.coaltrans.com
Mining NSW, August 30-31,
Orange, NSW, Australia.
www.regionalminingevents.com.au
AIMEX 2011, September 6-9,
Sydney, Australia. www.aimex.com.au
Discover Mongolia, September 8-10,
Ulaanbaatar, Mongolia.
www.discovermongoliaforum.com
Mining Indonesia 2011, September 21-24,
Kemayoran, Jakarta.
www.pamerindo.com/events/5
Miningworld Central Asia, September 21-23,
Almaty, Kazakhstan. www.miningworld.kz/en/
Mining Philippines, September,
Manila Philippines.
http://chamberofmines.com.ph/events.html
McCloskey China Coal Import and Export
Forum & Asia Pacific Outlook, September,
Beijing. www.mccloskeycoal.com/conferences
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Product News
ATLAS COPCO GROWS WITH ASIA’S MINING INDUSTRY
Atlas Copco has released a new range of
Excore Premium ITH Tools.
THE growth of Atlas Copco in the Asia Pacific
is reflecting the mining industry’s growth with
the company investing heavily in the emerging
mining strongholds of China and Indonesia
by opening new production, research,
distribution, and sales and service outlets.
Atlas Copco's president Peter Salditt says
Australia is still the company's number one
market, which reflects Australia's position as
a mining superpower and the new post-GFC
mining boom but China and Indonesia are
growing rapidly, with the rest of Asia following
suit. He says Indonesia has plenty of
growth potential, including the coal and minerals
industries. The recent combination of
service operations and product development
between PT Atlas Copco Indonesia and PT
Fluidcon Jaya is an example of how the company
is servicing Indonesia’s needs as it ensures
customers benefit from increased
service capability and the efficiency a new,
consolidated company brings.
“While there is no doubt that China is the
world's biggest consumer of many resources,
it is also number one gold producer and coal
producer, and is among the leading producers
of a number of other minerals,” Peter
Salditt says. “China has attracted global attention
due to its sustained growth and fast
development, particularly in construction and
mining industries.
“Atlas Copco has established a strong
presence in China and is participating and
contributing to the economic development of
the world’s most populous nation.”
Atlas Copco’s Construction and Mining
Technique divisions in China have set up
three customer centres and five product
companies with a number of facilities established
or announced in the last six months.
Last November it inaugurated a new production
facility in the Shanghai Lingang Economic
Development Zone. This facility
provides assembly and packaging for the
group’s entire range of gas and process
turbo-compressors and turbo-expanders, as
well as engineering and aftermarket services.
The company invested more than RMB 100
million in the plant, which is expected to employ
more than 150 people by 2012. It is
Atlas Copco’s first factory in eastern Asia for
this product range and is equipped with the
most advanced technology available for
turbo-compressor production.
In February the company announced an investment
of about RMB 60 million to build a
new research and development centre in Nanjing
to safeguard competitiveness in the Chinese
market. The centre will employ about 250
people within three years of completion and
will provide divisions in China with specialist
engineering services, laboratories and testing
facilities. Atlas Copco is also building a new
distribution centre for South East Asia in Nanjing.
This will be completed by mid 2011 with
the target to improve the time required to get
products and parts delivered to customers.
In March the company opened a branch in
Urumchi in northwest China, which Peter
Salditt says will strengthen the sales and
service network further, and provide quicker
and more effective services for customers.
He says, “Our success has been founded
on long-term commitment to our customers,
being closer to them, understanding their
challenges and meeting their needs by continuous
innovation in product development
and service offerings.”
An example of this innovation is the new
range of Excore Premium ITH Tools. What
began with last year’s Excore Premium Diamond
Tools has evolved into this year’s Excore
Solution. The new Premium ITH Tools
are a direct response to customer demands
for speed, safety and durability in the field.
New design approaches and a rigorous
field-testing phase have yielded positive results
for Premium ITH Tools. During testing
over 12 months by Forage Azimuth in Quebec,
Canada, the company noted a 15% increase
in productivity, especially on deeper
drilling projects.
Gemcom Hub manages mining data
GLOBAL mining software solution provider
Gemcom has unveiled Gemcom Hub, a new
data management solution for the mining industry.
Optimized specifically for exploration
and production data, Hub enables rapid transmission
of large data files, including geological
models, drillhole data, schedules and surveys
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using the Internet, even over intermittent, low-bandwidth connections
common to remote mine sites.
Gemcom says that by centralizing data, critical project information is
protected, auditable and accessible to those who need it across the
mining enterprise. Hub closes the gap between a mining head office
and remote site, supporting the quick and easy global transfer of data
to enable skilled staff to spend more time assisting the field without the
need for travel. It says that with intuitive searching and versioning capabilities,
Hub makes it easy for users to locate or recover the right information
in a controlled and auditable manner. It integrates seamlessly
with the existing stored data generated from the vast majority of the industry’s
exploration, mine planning and production software, and also
manages file output from common office applications used by staff.
Gemcom’s president and CEO Rick Moignard says “Hub builds upon
our proven track record of delivering innovative technology for mining
and exploration. Since the late 1990s, Gemcom has been committed
to addressing a growing industry need by pioneering data management
technology specifically for use in exploration and production.
“We are pleased to introduce an optimized solution which manages
the information generated by the majority of applications used in the
industry. By taking a targeted approach to data management, Hub
helps overcome key industry challenges such as skill shortages, reporting,
driving productivity, and cost control.”
Gemcom’s Hub product manager Kevin Ward says, “More and more,
mining companies are realizing that exploration and production data is
one of their most critical assets and key to unlocking the full economic
potential of their operations. With this in mind, Hub has been developed
to drive optimized data management forward in mining.
“Electronic data transfer is not a new practice in the industry. The
transfer of exploration and production data, however, often running
to multiple gigabytes in size, is an industry-specific challenge because
local Internet connectivity is often slow and unreliable. When seeking
to collaborate, it’s not uncommon for files to be loaded onto a CD to
be carried by staff or couriered to and from locations across the mining
enterprise. With Hub, mining professionals have access to the
right information, when they need it, regardless of where they are in
the world. Using Hub, staff can travel less and actually spend more
time working with their colleagues on projects. Ultimately, this increases
productivity and saves costs.”
New Boart Longyear Ultramafix bits
INTEGRATED drilling products and services provider Boart Longyear
has launched Ultramatrix (UMX) diamond coring bits, a versatile new
line of diamond coring bits using patent-pending technology. With
several technologically advanced features, the company says the bits
make diamond coring more efficient than ever before.
It says UMX bits are engineered to drill faster, last longer and out-perform
existing bit technology in a wide range of drilling conditions and
ground formations. The extended range and versatility of the Ultramatrix
diamond bit series means fewer bits are needed on the job site and
drillers can expect increased productivity throughout the entire operation.
Boart Longyear's global product manager Matthew Baird says, “This
advanced bit technology has the ability to transform diamond coring productivity.
We expect drillers will immediately benefit from the unmatched
capabilities of these powerful new bits. Drillers demand extreme performance
and we developed this new technology using customer feedback
and testing at sites around the globe, in the most remote locations and in
the harshest drilling conditions, in order to provide a diamond coring bit solution
that far exceeds expectations.”
The UMX bits feature Boart Longyear's advanced metallurgical formulas
and Razorcut face design. Ultramatrix technology impregnates
large synthetic diamonds within a highly engineered, proprietary metallurgical
formula, creating a crown matrix that is optimized for longer bit
life and increased penetration capabilities, turning easily from one ground
formation to another. The patented Razorcut face design is ready-to-cut
right out of the box and improves tracking and balance in the hole.
The new bits also feature the advanced Stage waterway design,
which allows crown heights up to 25mm, the tallest in the industry,
increasing productivity and extending bit life even further.
Out of sight – but not out of reach
FEW commercial activities more epitomize the expression ‘risk and
reward’ than mining. The risks of going into distant, sparsely inhabited
terrain where the rule of law is, at best, unpredictable are more than
adequately balanced with the potential rewards of finding what you
are seeking. But for all the thrills, excitement, apprehension and elation
of a ‘find’ there is also the negative impact of the social and commercial
dislocation caused by being outside the reaches of traditional
communication networks.
This is particularly so with mining in Asia. Identifying and producing
metals often involve operations in remote regions where advanced
telecommunications are next to non-existent, but this need not be the
case. The use of portable satellite-based communications systems
such as BGAN from Inmarsat is particularly suited to mining. Inmarsat
says all mining cycle stages can benefit. It enables better control of
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site establishment and management, faster
and better quality decision-making, and improved
asset monitoring and site security –
contributing to more effective and efficient operations
and reduced costs.
Companies around the globe have turned to
BGAN to enhance in-field operations. At the
exploration stage these communications allow
them to transmit data back in real time, leading
to huge cost savings on a per project
basis. The real time analysis allows for real
time follow up. A vector of apparent interest
can be followed up on the same field expedition.
Equipment rental costs are reduced and
assayer data can be relayed on demand.
Even at later stages satellite communications
can enhance operations, allowing personnel to
conduct event-driven internet research and access
company databases. Project managers
can send progress reports, as well as chase
suppliers and contractors. Distant mines can
access remote mechanical assistance and
Inmarsat’s BGAN links remote mine sites with
the rest of the world.
telemedicine via live audio and streaming video, and head office can
carry out remote surveillance to monitor assets and personnel.
There are also softer benefits created by satellite voice and data connectivity.
The most important element of any project is people. No two
people are alike but nearly everyone shares the same basic needs – a
sense of connection to friends, family, colleagues and the culture in
which they are rooted. Life at the mine face has
always been pretty basic. The natural environment
is frequently alien, accommodation provides
few creature comforts and home can
seem a distant place. The impact of this enforced
period in the wilderness is becoming
amplified by aspects of modern life we take for
granted in urban environs.
The emergence of social media channels
has changed the way society functions. The
boundaries between office and home have become
blurred while a day without internet access
is now considered a feat of extreme
endurance for many.
Satellite solutions like BGAN can deliver
speeds of about half a Mb via a terminal the
size of a laptop. Internet access is typically
charged on the basis of how much traffic is
passed. This means the user is only paying for
what he or she uploads or downloads. Costs
vary depending on usage levels but around 40
emails (without attachments) would cost about
US$7. Cost control is vital and service providers have recognized this.
Value-added services such as firewalls can be used to restrict the type
of sites accessible. Compression tools can be used to reduce the
amount of data passed. Spend limits can be set and warning notifications
set up to warn of potential breaches. Individual employees can be
given their own allowances of access via scratch card-type solutions.
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PT CBC INDONESIA BUSINESS UP AND RUNNING
PT CBC Indonesia celebrated its grand opening
in February with the ceremony performed
by Daniel Hughes, who leads CBC’s most important
customer in the archipelago, PT
Freeport Indonesia. The ceremony was notable
for having the entire INENCO Board in
attendance led by Mitchell Martin-Weber and
Matthew Barnett.
PT CBC Indonesia was developed to take
over the business with Freeport that was conducted
out of Queensland for many years.
The Indonesian Government now requires
that mining companies within its territory establish
local supply chains for their materials
to the extent practicable.
As the biggest mine in Indonesia and one
of the world’s highly ranked copper and
gold operations, Freeport naturally drew attention
when this initiative came into force.
Since CBC is one of Freeport’s longest resident
suppliers and highly regarded for its
service, PT Freeport Indonesia management
turned to CBC to assist in meeting the
government’s wishes, hence PT CBC Indonesia
was conceived.
At the PT CBC Indonesia opening were (from left) Freeport Indonesia executive vice president and CFO Daniel
Hughes, vice mayor of Bekasi City Rahmat Effendi, INENCO chairman Mitchell Martin-Weber, CBC Indonesia
director John Bushell and INENCO managing director Matthew Barnett.
Approval was gained from the Investment
Coordinating Board (BKPM) in May 2009 and
since that time the many processes required
to form and register a company and obtain
the necessary licences and approvals has
been pursued. In November 2010 the company
began supplying to PT Freeport Indonesia
and the volume of trade has been
growing since then.
It was most appropriate, therefore, that
CBC Australia’s managing director George
Khoury invited Daniel Hughes to perform the
opening. Several other senior staff from
Freeport were also guests including Rob
Schroeder, David Ellis and Emmor M Mawu.
Mitchell Martin-Weber stressed the values
that CBC holds high and the intention that the
company in Indonesia will adhere to the same
standards as in Australia. PT CBC Indonesia
offers a value adding service to clients in the
market place, growing on its reputation to
save customer costs in the long term through
life cycle savings.
In addition to the business with Freeport that
will be nurtured and expanded through establishment
in Indonesia, PT CBC Indonesia will be
seeking more clients who appreciate value
throughout the nation. The mining industry will
be the first focus in view of its value to the Indonesian
economy and the many opportunities
for CBC’s business model in the sector. The
ceremony offered an opportunity for a number
of customers to visit the CBC facility and gauge
that PT CBC Indonesia is in operation.
Asian expansion for Ludowici
LUDOWICI, one of Australia’s longest running
engineering firms, is continuing its expansion
into the Asian mining market to meet growing
demand. Its operational network in Asia now
includes wholly-owned subsidiaries in China,
India and local agents in Indonesia, Vietnam
and the Philippines.
The company’s business development
manager Jim Cronin says, “We are confident
of achieving sales growth as the Asia mining
market expands.”
He says the company was pleased with the
response to its product range exhibited at
OZMINE 2011 in Jakarta, where Australia’s
Minister for Foreign Affairs Kevin Rudd opened
the conference and was impressed by Ludowici’s
global reach and innovative products.
Ludowici has a history of more than 150 years
and attributes success to its capacity for adaptation
and innovation in engineering. Since its
foundation in 1858, Ludowici has adapted and
responded to the changing demands of the industry,
technology and society.
Jim Cronin says, “Our vision is to build an international
business by innovating for our customers,
sharing the knowledge of our people
and developing our own technology. With this
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vision and our proven track record and extensive experience, Ludowici
believes it can expand its reach in Asia.
“Our mission has always been to add value for shareholders, customers
and employees by continuing
the age-old tradition that
Ludowici has prided itself on. Ludowici
has a leading team of engineers
that have pioneered the
developments of the patented Reflux
Classifier.
“Ludowici is set to revolutionize
the mining industry with its enhanced
Reflux Classifier RC2020,
developed in partnership with the
University of Newcastle's Professor
Kevin Galvin. The Classifier technology
has already been proven
with the RC300, RC600 Mk2 and
RC2020 units applying the latest in
gravity-based separation engineering
Australia’s Foreign Affairs Minister Kevin Rudd visits the Ludowici
stand at OZMINE 2011 in Jakarta.
that can offer tested technical expertise in delivering specialized applications
for overseas markets such as Asia.
“The Ludowici mineral processing/handling equipment range and
wear products including vibrating screens, feeders, coarse & fine coal
centrifuges, cyclones, Reflux Classifier, coal valves, Jet Slingers and
Wear-Resist are considered by major mining companies to be leading
edge in mining technology,” Jim Cronin adds.
Conveyor inspection program improved
ASGCO has made improvements to its conveyor inspection program
which was created to access capabilities of existing conveyor systems by
gathering conveyor components data,
and formulating solutions to streamline
and maximize present operations.
The improvements will ensure that
ASGCO continues to service its
clients in the best possible manner
and also help to prevent high-priced
repairs and unscheduled downtime.
ASGCO’s field and service technicians
are knowledgeable experts
with strong technical skills and years
of hands on training with conveyor
systems and components. They survey
the operation, detailing all critical
points of the conveyor system. Company
specialists identify carry-back
problems, guarding and safety issues,
as well as audit the entire conveyor structure and components, including
drives, pulleys, idlers, chutes, and belting.
With the survey technicians document conditions and consult with facility
operations to provide a complete detailed solution to improve the
existing conveyor system. The technicians have the expertise to maintain
and install equipment, handle scheduled maintenance and provide
emergency service. All equipment is routinely checked and serviced to
May/June 2011 | ASIA Miner | 85

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Supplier News
provide maximum productivity and increased
performance with minimal downtime.
ASGCO technicians and trained local distributors
inspect and perform maintenance proactively
on all conveyor system components as
part of an overall maintenance plan with the
aim to maximize safety, uptime, and productivity
and provide complete conveyor solutions.
ASGCO provides complete conveyor solutions
to a variety of industries, including
power generation, aggregate mining, paper
production and shipping. Their manufactured
products include belts, belt cleaners, conveyor
belt accessories, and safety equipment.
ASGCO also has a large service
division and provides engineering solutions to
material conveyance.
ASGCO is a family-operated business
based in the US with a manufacturing history
spanning 40 years. Founded by Alfred Gibbs
and Todd Gibbs in 1971, the company is now
managed by Todd and his son, Aaron, who
was recently appointed president with Todd
maintaining his role as CEO.
Still plowing after 10 years
BUCYRUS automated plow systems have
completed 10 years of successful operation
in a number of mines in the northern Chinese
province of Liaoning. The first Gleithobel plow
began operation in January 2001 and is still in
operation today. It was the first automated
plow system in China.
Equipped with 2 x 315 kW drives and designed
for cutting very hard coal, the plow
operates on a 200 metre face with a seam
height of 1.25 metres. Bucyrus automated
plow systems are making a significant contribution
to coal production throughout the
world in countries including China, Russia,
Czech Republic, Germany, Kazakhstan, Mexico,
Poland, Ukraine and the United States.
Since a former Bucyrus company invented
the plow in 1937, Bucyrus has stayed on the
cutting edge of plow technology by adding numerous
features as well as boosting installed
power to allow faster extraction. In contrast to
a shearer, which requires considerable height
to operate, the very compact plow can practically
operate in seams as low as 800cm.
Bucyrus offers two types of plow - the Reisshaken
or base-plate plow designed for extremely
thin seams and the Gleithobel (GH or
gliding plow), the world’s most powerful longwall
mining system for maximum productivity
and minimum cost of ownership in medium
The Bucyrus Gleithobel GH1600 plow.
and thin seams, even in hard coal.
Bucyrus plow longwalls can be fully automated
with no operator required at the face.
This not only enhances productivity, but is
also a great safety feature.
Over time Bucyrus plow systems have
shattered world production records for thinseam
longwall production and productivity –
and the combination of this experience, ongoing
R&D and a passion for continuous improvement
maintains Bucyrus’ leadership in
this specialized area of coal mining.
With installed power of up to 2 x 800 kW,
Bucyrus plows extract coal at rates of up to
3500 tonnes/hour. As a result of their unique
features and high performance, Bucyrus automated
plow systems are the preferred mining
method for seams below 1.8 metres.
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ADVERTISING INDEX
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Asia Mining Partnering Forum ......11
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May/June 2011 | ASIA Miner | 87

Exploration_Layout 1 4/25/11 9:24 AM Page 1
Exploration
JOINT VENTURE FOR DARLING RANGE BAUXITE EXPLORATION
ASX-LISTED Bauxite Resources has signed
a joint venture with China’s Yankuang Corporation
to explore for bauxite in the Darling
Range in Western Australia. The JV also includes
a bankable feasibility study (BFS) for
the site selection, design, construction and
operation of a new alumina refinery.
The exploration joint venture will explore for
bauxite in Bauxite Resources’ Darling Range
tenements. Thirty tenements have been
granted and a further 72 have been applied
terms of lowest operating costs.
The refinery joint venture will conduct a BFS
for the proposed new alumina refinery in the
south-west of Western Australia. Bauxite Resources
will fund 10% of the BFS and
Yankuang 90%. Subject to the BFS, and regulatory
approval, the Australian company will
fund 9% of the construction and receive 30%
of the alumina product. Yankuang will fund
91% of the construction and receive 70% of
the product. Yankuang has agreed to offtake
acted as design engineers for numerous mine
projects worldwide, including Eldorado's Jinfeng
Gold Mine in Guizhou province, plus numerous
other mine, mill and smelter designs.
The engagement of a recognized and accredited
Chinese engineering company to
complete a CFS is a requirement and major
milestone to advance a gold project in China
towards development and production.
Inter-Citic’s VP development Malcolm Swallow
says, “The strength of Nerin's team when
coupled with our partner, the No. 5 Geology
and Mineral Exploration Institute of Qinghai
Province, means that we expect to progress
our Dachang project with the maximum possible
speed.”
During the past six months the company
has carried out multiple metallurgical test
work programs in China, Australia and South
Africa. The tests, carried out as part of ongoing
flowsheet development work, aimed at
permitting and constructing a gold mine and
associated concentrator and bacterial oxidation
plant at Dachang, have exceeded previous
results.
Trial mining at the Bindoon North project of Bauxite Resources.
for. Bauxite Resources will fund 30% of the
exploration cost and Yankuang 70%.
The joint venture’s target for bauxite discovery
within one year is 60 million tonnes
and 90 million tonnes within three years.
Bauxite Resources was launched in May
2006 to establish itself in the bauxite and alumina
industries in Western Australia where
four of the seven Australian alumina refineries
and four of Australia’s bauxite mines are located.
The company is the only ASX-listed
bauxite explorer in the highly prospective Darling
Range, and is the largest tenement
holder in the range with about 15,000sqkm
of prospective bauxite laterite ground.
The Darling Range is the largest bauxite mining
and alumina producing region in the world.
This area supplies about 18% of the world’s
alumina and is home to Alcoa’s Huntly Mine,
the largest producing bauxite mine in the world
and Pinjara Refinery the second largest alumina
refinery in the world. The Darling Range has
three of the top five refineries in the world in
50% of Bauxite Resources’ share of alumina
for the first 10 years of refinery operation.
The project is expected to be substantially
started within five years and Yankuang has
transferred senior staff from Shandong
Province in China to work in the joint venture
alongside Bauxite Resources’ staff.
Feasibility study for Dachang
INTER-CITIC Minerals has engaged a Chinese
engineering firm to complete a Chinese-Standard
Feasibility Study (CFS), a
Mineral Resources Development and Utilization
Program and the associated Project Application
Report, for its Dachang Gold
Project in Qinghai province.
China Nerin Engineering, an internationally
accredited Level 1 Design Institute based in
Nanchang, will carry out this work which represents
the next major step forward in development
of Dachang. They have extensive
experience in all forms of engineering design
and construction management, and have
大 场 金 矿 可 行 性 研 究 报 告
INTER-CITIC 矿 业 公 司 已 聘 请 一 家 中 国 的 工 程
公 司 为 其 位 于 青 海 省 的 大 场 金 矿 项 目 完 成 一
份 中 国 标 准 的 可 行 性 研 究 报 告 , 一 份 矿 产 资
源 开 发 利 用 方 案 及 相 关 的 项 目 申 请 报 告 。
总 部 位 于 南 昌 的 国 际 一 流 的 设 计 研 究 院 -- 中
国 瑞 林 工 程 技 术 有 限 公 司 — 将 完 成 这 项 工 作
, 这 标 志 着 对 大 场 金 矿 的 开 发 又 迈 出 了 重 要
的 一 步 。 中 国 瑞 林 工 程 技 术 有 限 公 司 在 各 类
工 程 设 计 和 建 设 上 拥 有 丰 富 的 经 验 , 已 为 世
界 上 很 多 矿 业 项 目 担 当 设 计 , 其 中 包 括 埃 尔
拉 多 黄 金 公 司 位 于 贵 州 省 的 锦 丰 金 矿 及 许 多
其 他 矿 山 、 研 磨 和 冶 炼 厂 的 设 计 。
聘 请 一 家 获 得 认 可 的 中 国 工 程 公 司 来 完 成
中 国 标 准 的 可 行 性 研 究 报 告 对 于 开 发 中 国 境
内 的 金 矿 和 生 产 是 一 种 必 要 并 具 有 里 程 碑 似
的 意 义 。
Inter-Citic 的 发 展 副 总 裁 Malcolm Swallow 说
:“ 瑞 林 团 队 的 能 力 , 加 上 我 们 的 合 作 伙 伴 青
海 省 第 五 地 质 矿 产 勘 察 院 的 配 合 , 这 表 明 我
们 希 望 大 场 项 目 以 可 能 的 最 快 的 速 度 发 展 。
在 过 去 的 6 个 月 中 , 该 公 司 在 中 国 、 澳 大 利
亚 和 南 非 进 行 了 多 项 冶 金 测 试 。 这 些 测 试 作
为 开 发 工 作 的 一 部 分 , 旨 在 大 场 项 目 的 一 个
金 矿 及 其 选 矿 厂 和 细 菌 氧 化 厂 的 建 设 , 所 得
出 的 结 果 已 超 越 以 前 所 做 的 测 试 。
88 | ASIA Miner | May/June 2011

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