SEG 45 Final_qx4 - Society of Economic Geologists

EXPLORATION REVIEWS
22 SEG NEWSLETTER No 63 • OCTOBER 2005
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veneer (5–20 m thick). The main exploration
methodology was the ground follow-up
of targets generated from data
compilation from various airborne
magnetic surveys. Ground follow-up
consisted of ground magnetic surveys,
Gradient array IP surveys, “RAB”, RC,
and core drilling. This resulted in the
discovery of the Otjikoto gold deposit,
which is a sheeted vein system hosted
by albitized rocks. This deposit has
many similarities to the deposit being
mined at the Navachab Gold Mine. To
date some 40% of the approximately
US$9M spent on the project was
expended on detailed work carried out
at the Otjikoto deposit which was a
greenfields discovery made by Avdale.
In the next year the company plans to
spend US$3-4M on exploration over its
four EPL’s. Regional exploration will
focus on the ground follow-up of targets
generated from an airborne electromagnetic
and magnetic (AEM) survey that
was completed earlier the year using
the Spectrum 2000 AEM System. This
survey covered some 70 km of strike of
the target host package. This high-resolution
survey was flown at a 200-m line
spacing. Work at the Otjikoto will focus
on extending the current resource base
and the follow-up exploration targets in
the immediate vicinity of the deposit.
TANZANIA
Barrick Gold has started production at
the new Tuklawaka mine in Tanzania.
Barrick and Falconbridge have
finalized a joint venture agreement
regarding the Kabanga nickel deposit.
Falconbridge has acquired a 50% indirect
interest for US$15M and will be the
operator of the joint venture.
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TUNISIA
Albidon reports the discovery of gold
mineralization at Kef El Agueb in northwest
Tunisia on the Nefze project.
Samples have defined a strike length of
at least 5 km. Rock sample values
ranged up to 1g/t Au in preliminary
sampling and soil values up to 0.5 g/t.
Some soil samples also have up to 1.1%
Cu.
SOUTH AFRICA
Aflease is proceeding with two shallow,
low-risk, high-margin gold projects,
Bonanza South and Modder East. At
Bonanza South, the mine design was
based on an annual production of
35,000 oz, but this may increase to
50,000 oz within two years. Mining is
planned to extend to a depth of 220 m
to exploit two of the four gold-bearing
reefs. It is planned to produce the first
bar of gold in the near future. The
Modder East project on the East Rand
about 5 km north of Springs, is set to
mine the Black Reef, which has grade
of 5.3 g/t. In addition, they are developing
the Dominion uranium project 25
km southwest of Klerksdorp.
Anglo Platinum’s big three platinum
mines in the Bushveld Complex—
Amandelbult, Rustenburg, and
Union—showed lower production and
higher costs for the half year to June
compared with the corresponding
period last year. But the chief executive
of the world’s largest platinum producer,
Ralph Havenstein, says
turnarounds take time and they anticipate
much improved figures for 2006.
AfriOre reports drill assay results
from holes ZF6 and MO3 on the
Akanani platinum project on the
Platreef in the northern limb of the
Bushveld Complex. Significant intersections
were reported from hole MO3.
The widest at 23.86 m starts at 1319.97
m down hole and averages 2.52 g/t Pt,
3.18 g/t Pd, 0.16 g/t Rh, and 0.36 g/t
Au, or collectively, 6.22 g/t 4E. Included
within this intersection is a 5.1 m interval
grading 12.72 g/t 4E. Hole ZF6 also
returned significant results, including
43.94 m, starting at 1019 m, averaging
4.1 g/t 4E, including a 7.87 m intersection
grading 6.17 g/t 4E. In addition to
hole ZF9, which has achieved the first
downdip intersection of the Platreef unit
on the Akanani property, there are currently
five other drill holes are in
progress on the project area, as part of
the second phase of drilling. These comprise
drill hole ZF8, which has intersected
the upper contact of the Platreef
unit at a down-the-hole depth of 889 m,
and drill holes ZF10, ZF11, MO5 and
MO6.
Kumba Resources has introduced
new jigging technology on the Sishen
Exploration project which will have a
plant capacity of 10 Mt/y. This will
allow the iron-ore producer to process
lower grade ore that is not amenable to
the existing heavy minerals separation.
The ore that is being currently mined
has a cutoff grade of 60% Fe but the
cutoff for the new jigging equipment
will be 50%. The capacity to process the
lower grade material will have a major
impact on mining costs over the longer
term and allow the company to keep
the stripping ratio of about 1.9 over the
life of mine.
Lonmin plc, through its wholly
owned subsidiary Lonmin Investments
Canada Inc., completed a compulsory
PROPERTY EVALUATIONS — PROJECT GENERATION
GEOCON, INC.
REGIONAL STUDIES — U.S. AND FOREIGN
RICHARD L. NIELSEN, CONSULTANT
Exploration and Mining Geology
13741 Braun Drive
Golden, CO 80401 Phone/FAX (303) 279-3118
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