Australia's junior explorers - The ASIA Miner
Australia's junior explorers - The ASIA Miner
Australia's junior explorers - The ASIA Miner
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July/August 2012 | Volume 9 | Issue 4 | Industry Technical Information | 矿业技术信息<br />
STRENGTH IN MINING 开采强度<br />
Focus on the Philippines Australian <strong>junior</strong> <strong>explorers</strong> Grinding mills 聚焦菲律宾 澳大利亚小型勘探企业 磨矿机
FEATURES<br />
Australian <strong>junior</strong> <strong>explorers</strong> Australia’s <strong>junior</strong> mining companies are at the forefront of the global mining industry<br />
owing to the fact that they ar e not only seeking to locate and pr ove new deposits in Australia but<br />
their reach extends to Asia, Africa, South America and other parts of the world. Australia’ s <strong>junior</strong>s face<br />
many challenges, not the least of which is securing capital in unpr edictable economic times. This special<br />
feature looks at the work of a number of these <strong>junior</strong>s. ...................................................... From page 46<br />
Paste thickening Operators, suppliers and researchers continue to pursue higher efficiency and reliability<br />
in paste thickening applications. ..........................................................................................................59<br />
Grinding mills Leading manufacturers offer perspectives on the market, evolving technology and the<br />
future. ..................................................................................................................................................61<br />
LEADING DEVELOPMENTS<br />
Asian Intelligence On the surface it is difficult to see what benefits Indonesia’s new tax on unprocessed<br />
ore exports can bring to the global mining industry. However, nickel may be one of the minerals that benefits<br />
on a worldwide scale as it may boost depressed prices and increase pressure on supply. ..............5<br />
Philippines Intex Resources has signed a Project Management Contract with China’s MCC8 Group<br />
covering its Mindoro Nickel Project. MCC8 is now responsible for managing the formation of a consortium<br />
to develop the project. ...........................................................................................................................7<br />
Exploration Six new targets identified by a survey at Paramount Mining’s Gunung Rosa project are being<br />
prepared for detailed exploration. ........................................................................................................72<br />
AROUND THE REGION<br />
Philippines Toledo Mining is assessing ways to extend its DSO shipping period. ...................................8<br />
China Drilling at the Beiya project has extended the gold-silver and base metal zone. .........................16<br />
Mongolia A pre-feasibility study has confirmed the Ovoot coal project is financially robust. ..................26<br />
Indonesia <strong>The</strong> start of production at G-Resources’ Martabe Gold-Silver project is imminent. ..............28<br />
Australia Nickel technology will be piloted at the Lucky Break project in Queensland. .........................32<br />
Cambodia OZ <strong>Miner</strong>als has sold its Cambodian gold assets to Renaissance <strong>Miner</strong>als. ........................35<br />
Papua New Guinea <strong>The</strong> maiden nickel estimate at Mambare has exceeded expectations. ..................36<br />
Central Asia Premier Gold has started a new exploration program at the Cholokkaindy project. ..........38<br />
Malaysia Exploration at the Sokor Gold Project has led to a 35% increase in resources. .....................40<br />
India NSL Consolidated has sold its first iron ore ex-gate into the domestic market. ............................43<br />
South Pacific Lion One Metals confirms exploration upside at Tuvatu Gold Project. ............................72<br />
Despite global economic uncertainty, the mining industry<br />
throughout Asia is strong, with the Philippines<br />
a leading light. CGA Mining’s Masbate Gold Project<br />
is one of the island nation’s success stories with production<br />
through the pictured mill reaching record<br />
levels and exploration continuing to boost resources,<br />
thus replenishing mined ounces. <strong>The</strong> plant with 4<br />
million tonne annual capacity was constructed by<br />
Leighton Contractors Asia and CGA aims to increase<br />
throughput to 6.5 million tonnes.<br />
DEPARTMENTS<br />
Photo courtesy CGA Mining.<br />
Advertisers’ Index ......................................70<br />
Calendar of Events ....................................44<br />
From the Editor ............................................2<br />
Product News ............................................64<br />
Subscription Form ......................................70<br />
Supplier News ............................................66<br />
ENK focuses on Acoje .........................................6 Spotted Quoll performs well ................................32 Increase in Yandera resource ................................37<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 1
From <strong>The</strong> Editor<br />
Philippines mining finally ‘coming of age’<br />
With foreign investment increasing, exploration providing impressive results,<br />
several mining projects forging ahead, the economy expanding and<br />
a number of its neighbours ‘shooting themselves in the feet’ with new<br />
mining laws, the Philippines is starting to demonstrate the mining potential<br />
it has been threatening to reveal for years. However, there is still work<br />
to be done if the industry is to reach its full potential.<br />
Good signs are there as the country recorded strong growth of 6.4% in<br />
the first quarter, up from 4.9% in the corr esponding period of 2011. This<br />
strong performance prompted an upward revision to the growth forecast by<br />
By John Miller /Editor<br />
Moody’s, which lifted 2012 forecasts for the Philippines to 4.7% fr om 4%.<br />
Foreign direct investment is also reported to have increased by almost 154% to US$850 million in<br />
the first two months of 2012. <strong>The</strong> W orld Economic Forum has also recognized the impact of key<br />
reforms in its Global Enabling T rade Report, which indicated that the Philippines has made substantial<br />
improvements in trade access, jumping 50 places to 14th out of 132 nations.<br />
To reach the potential that has been talked about for years, some changes need to be implemented,<br />
important decisions made at a government level and work done by the mining industry<br />
to better sell itself to all Filipinos. <strong>The</strong> impasse with the Tampakan project needs to be resolved<br />
as it does not promote investor confidence in the nation as a whole. Another hindrance is the<br />
moratorium on new mines in place since January 2011 while the gover nment has also been<br />
talking about following Australia’s ‘example’ and imposing further mining taxes.<br />
<strong>The</strong>re is some light at the end of the tunnel in the form of a systematic government review of<br />
mining policy. According to Gavan Collery, the chairman of Indophil Resources, one of the partners<br />
in Tampakan, the framework of the review is contained within six points - sustainable development;<br />
best practice and gover nance; protection of the environment; primacy of national<br />
law; sharing of benefits; and sound mining sector management.<br />
“As a somewhat obvious observation,” he says, “this framework – save for implying r estoration<br />
of investor confidence – is the basis for the type of responsible practice that one would care<br />
to see applied in any jurisdiction in the world. <strong>The</strong> framework is one we support, and one we will<br />
continue to advocate within the industry and all levels of government. Hopefully, its carriage and<br />
adoption will see the Philippines’ mining industry contributing to a sound economic future; a future<br />
that can in part be underpinned by development of Tampakan.<br />
“While being cautious based on past experiences, it appears that mining policy in the Philippines<br />
is coming of age, and will be based on sound process and system. A robust and invigorated<br />
national mining policy will deliver nation-building benefit to the people and reward those who<br />
embark on the considerable risk of minerals exploration and development.”<br />
National resources development fund has merit<br />
An emerging cash crisis for Australia’s <strong>junior</strong> <strong>explorers</strong> is threatening the long-term sustainability<br />
of the country’s ‘mining boom’ as well as in other ar eas in which the <strong>junior</strong>s play a vital r ole<br />
in identifying and proving new deposits, such as Asia, Africa and South America. A national resources<br />
development fund paid for by a modest levy on established and pr ofitable mining operations,<br />
and proposed by the managing director of Minotaur Exploration, Andrew Woskett, is<br />
worthy of further investigation by decision makers. At the heart of the pr oposal is providing an<br />
innovative source of access to capital exclusively for the backbone of Australia’s mining future<br />
– the cash-starved <strong>junior</strong> end of the resources spectrum.<br />
“<strong>The</strong>re is nothing more serious right now confronting <strong>junior</strong>s than the complete absence of risk<br />
capital available for <strong>explorers</strong> and small cap pr oject developers,” Andrew Woskett says. “<strong>The</strong><br />
consequences of capital starvation to the overall well-being of our so-called booming resources<br />
sector is intensely serious and with negative global equities sentiment as it is, we need to be<br />
more unconventional in resolving how we alleviate this funding gap. A national resources development<br />
fund can fill that gap.”<br />
2 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
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Asian Intelligence<br />
4 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012
AN interesting recent development for the<br />
sluggish nickel industry has come in the form<br />
of the Indonesian gover nment’s new tax on<br />
unprocessed mineral ore exports, which may<br />
boost prices and increase pressure on supply.<br />
<strong>The</strong> new tax on the export of 14 types of<br />
unprocessed minerals came into ef fect on<br />
May 6 and has been intr oduced in a bid to<br />
boost value-added products.<br />
<strong>The</strong> minerals affected are gold, silver, platinum,<br />
copper, lead, nickel, zinc, ir on ore<br />
and sand iron, manganese, chromium, molybdenum,<br />
bauxite and antimony. <strong>The</strong>re has<br />
been mixed response within Indonesia and<br />
further afield with concern expressed that it<br />
will affect miners’ revenue and significantly<br />
affect profit margins.<br />
<strong>The</strong>re have certainly been mixed messages<br />
about the impact on nickel with some companies<br />
to benefit and others to be impacted<br />
negatively. <strong>The</strong> government has made exceptions<br />
for miners that alr eady have or plan to<br />
New Indonesian tax may benefit nickel<br />
build smelters. <strong>The</strong>y will be taxed at an average<br />
of 20% on ore exports.<br />
Companies like Vale Indonesia, the country’s<br />
biggest nickel miner, won’t be affected<br />
because they process ore into refined products.<br />
But other companies will be impacted,<br />
including state-controlled Antam, which<br />
obtains about 30% of its r evenue from ore<br />
shipments. To process raw nickel, Antam<br />
plans to build a $1.6 billion ferronickel smelter<br />
in East Halmahera.<br />
Some companies may end up holding back<br />
ore shipments if the new levy makes mining<br />
unprofitable and might focus on building<br />
smelters instead. This could, in turn, lift nickel<br />
prices and put pressure on supply. Kim Eng<br />
Securities in Jakarta said in a note to clients<br />
that the imposition of an export duty on mineral<br />
ores would curb cheap nickel ore supply<br />
and, in turn, stoke a nickel price rally.<br />
China International Capital Corp also for ecasts<br />
a boost in nickel prices but says large<br />
EPA recommends approval for Wiluna<br />
THE Western Australian Environmental Protection<br />
Authority (EPA) has r ecommended<br />
approval for Toro Energy’s Wiluna Uranium<br />
Project. <strong>The</strong> EPA has presented a report and<br />
recommendations to Western Australia’s Minister<br />
for Environment. Toro is awaiting the<br />
Minister’s decision following review of any appeals<br />
that are raised.<br />
<strong>The</strong> project was referred for assessment to<br />
the Western Australian and Federal gover nments<br />
in October 2009. An Environmental Review<br />
and Management Program was exhibited<br />
for public consultation over 14 weeks from July<br />
2011 with 48 submissions made to the EP A.<br />
Toro has provided comprehensive responses<br />
to all submissions to enable the EPA to finalize<br />
its assessment. A Federal Gover nment decision<br />
on its assessment is anticipated after the<br />
Western Australian process is finalized. Toro’s<br />
Board will then target a final investment decision<br />
by the end of 2012, subject to final market<br />
and economic considerations.<br />
“<strong>The</strong> EPA recommendation is an important<br />
milestone for Toro and for the W estern Australian<br />
uranium industry,” Toro’s managing<br />
director Greg Hall says. “While the Toro team<br />
members have significant experience within<br />
other uranium and mining operations, Wiluna<br />
is Toro’s first project and the first uranium project<br />
to receive a positive EPA recommendation<br />
in Western Australia since the change of<br />
government in 2008. Toro is confident that its<br />
extensive technical and environmental study<br />
work and the rigorous assessment undertaken<br />
by the EPA will ensure a safe and sustainable<br />
mining operation. This project is one of<br />
the few in the world potentially capable of<br />
commencing production in the critical<br />
2014/15 period when the nuclear industry will<br />
be seeking additional supplies.”<br />
Toro’s Wiluna project is about 520km north of Kalgoorlie<br />
in central Western Australia. It comprises uranium in the<br />
Centipede and Lake Way deposits.<br />
Asian Intelligence<br />
By <strong>The</strong> <strong>ASIA</strong> <strong>Miner</strong> editor, John Miller<br />
stockpiles in China will limit short-term impacts<br />
of any supply shortfall. It says the tax<br />
is expected to add 7.5% to average production<br />
costs of nickel pig ir on in China, improving<br />
incentives to use refined nickel at current<br />
price levels. About 60% of China’ s pig iron<br />
output, which accounts for 60% of the nation’s<br />
nickel production, relied on Indonesian<br />
laterite ores last year.<br />
In a research note, analysts at Citi said the<br />
outlook for nickel was ‘significantly mor e<br />
positive’ thanks to Indonesia’s moves. “Expectations<br />
of reductions in exports range<br />
from 20% per cent to 75% by the fourth<br />
quarter of 2012.<br />
<strong>The</strong> Philippines might also pick up any<br />
slack in shipments caused by the ban. A<br />
Mines and Geosciences Bureau official said<br />
recently that nickel-ore production and exports<br />
from the Philippines may rise this year,<br />
benefiting from Indonesia’s ban. Australia is<br />
another country that could benefit.<br />
Lynas has LAMP appeal dismissed<br />
AN appeal lodged under the Atomic Energy<br />
Licensing Act in relation to the decision<br />
of the Malaysian Atomic Energy<br />
Licensing Board to approve the issuance<br />
of a temporary operating licence (TOL) for<br />
the Lynas Advanced Materials Plant<br />
(LAMP), has been dismissed.<br />
In dismissing the appeal, the Minister of<br />
Innovation, Science and Technology, YB<br />
Dato’ Seri Panglima Dr Maximus Johnity<br />
Ongkil affirmed the February 1, 2012 decision<br />
of the Boar d to appr ove the issuance<br />
of the TOL. L ynas has r eadily<br />
available solutions to satisfy the new conditions<br />
announced by the Minister . <strong>The</strong><br />
next step will be the tabling and debate of<br />
the Parliamentary Select Committee’s Report.<br />
Lynas looks forward to completion of<br />
the regulatory and political pr ocesses in<br />
Malaysia as soon as possible.<br />
“<strong>The</strong> decision by the Minister is the<br />
latest in a long line of rulings and approvals<br />
where Lynas has been assessed<br />
and judged to have complied<br />
with Malaysian and international regulatory<br />
standards,” says Lynas executive<br />
chairman Nicholas Curtis.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 5
Philippines<br />
ENK focuses entirely on Acoje project<br />
Laterite direct shipping ore (DSO) mining operations at ENK’s Acoje Nickel Project on Luzon.<br />
RATIONALIZATION of its portfolio during the<br />
last 12 months has put nickel gr oup ENK in<br />
a strong position to advance its flagship<br />
Acoje Nickel Project on Luzon island. <strong>The</strong><br />
sales of a number of pr ojects in Turkey and<br />
the Philippines and the repayment of loans by<br />
its local partner has put ENK in a str ong financial<br />
position as Acoje moves into the key<br />
stages of development.<br />
<strong>The</strong> company expects to publish a bankable<br />
MARCVENTURES Holdings expects to more<br />
than double nickel shipments from its project<br />
in Surigao del Sur on Mindanao this year compared<br />
to 2011. A study by First Metro Investment<br />
Corp says the company can make 18<br />
shipments or 1 million wet metric tons (WMT)<br />
of combined low-grade (1% per tonne of or e<br />
with iron content of 48%) and high grade nikkel<br />
ore (1.8% per tonne of ore) this year.<br />
It is estimated that in 2011 Marcventures, a<br />
holding company listed on the Philippine<br />
Stock Exchange, shipped mor e than<br />
550,000 WMT of pr edominantly low-grade<br />
nickel ore, which was the first to be extracted<br />
based on the company’s mining strategy over<br />
an open pit mine of 15 hectares. It is involved<br />
in nickel mining operations through its subsi-<br />
6 | <strong>ASIA</strong> <strong>Miner</strong> |July/August 2012<br />
feasibility study for the pr oject in September,<br />
which is expected to lead to ear nest discussions<br />
about how to move Acoje fr om development<br />
into pr oduction. ENK is hopeful of<br />
beginning production in late 2013 or early 2014.<br />
Last year ENK sold its Caldag pr oject in<br />
Turkey for US$40 million and this year has<br />
sold its interest in Berong Nickel Corporation<br />
and Toledo Mining Corporation, both with<br />
Philippines projects, for US$7.25 million.<br />
Marcventures increases nickel shipments<br />
diary - Marcventures Mining & Development<br />
Corporation (MMDC).<br />
<strong>The</strong> area covered by MMDC’s <strong>Miner</strong>al Production<br />
Sharing Agreement is at Cantilan in<br />
the Diwata mountain range of Surigao del Sur<br />
and covers 4799 hectar es. <strong>The</strong> company<br />
started mining last year and is undertaking<br />
ongoing exploration activities adjacent to the<br />
open pit and in other parts of the licence<br />
area. Shipments to China are made from the<br />
company’s causeway at Carrascal.<br />
<strong>The</strong> operating mine is part of an area of just<br />
120 hectares that has been explored with resource<br />
and reserve estimates of 22.6 million<br />
WMT and 11.6 million WMT, respectively, and<br />
with nickel ore average grade of 1.5%, compliant<br />
with the Philippine standards.<br />
ENK’s local partner Montemina Resour ces<br />
will also be paying back its loans totalling<br />
US$11 million through the sale of a 60% interest<br />
to Golden Harvest Global Corporation.<br />
Acoje is expected to be developed over<br />
two stages with a focus on the higher grade<br />
ore first to reduce the upfront capital costs.<br />
<strong>The</strong> first stage will see annual thr oughput of<br />
1.5 million tonnes of or e, producing about<br />
15,000 tonnes of nickel. Production schedules<br />
in early years will also be optimized to take<br />
advantage of higher nickel feed grades to<br />
realize higher revenues.<br />
<strong>The</strong> proposed sulphuric acid plant will only<br />
be built during stage two, greatly reducing initial<br />
project capital requirements. In year five,<br />
the plant will be expanded to an annual rate<br />
of 24,000 tonnes over a 20 year life of mine,<br />
making ENK a sizeable global producer.<br />
ENK has already decided to use tank leaching<br />
rather than traditional heap leaching to<br />
process the ore. Costings for this process will<br />
be keenly scrutinized by the nickel industry as<br />
ENK will be one of the first miners to use atmospheric<br />
leaching at a nickel laterite project.<br />
ENK’s managing director Rob Gregory says<br />
traditional heap leaching would have worked,<br />
but because of the heavy rainfall in the Philippines<br />
it would have been mor e difficult to<br />
manage. He says the equatorial laterites that<br />
make up the or e at Acoje ar e also better<br />
suited to tank leaching.<br />
First Metro Investment Corp said earlier this<br />
year that company’s 2012 earnings growth<br />
would be driven by higher daily tonnage, likely<br />
to be 6600 WMT over 150 days of operations<br />
in 2012, and a slight revival in LME nickel prices<br />
to around $21,500 per tonne or an equivalent<br />
selling price of $56 per tonne for<br />
Marcventures under its 3-year, 3 million tonne<br />
nickel ore forward sales contract with Dun<br />
Feng International. Dun Feng is one of the largest<br />
buyers of nickel ore in China.<br />
In an industry report about nickel, a global<br />
financial services consultancy firm says that<br />
nickel pig iron (NPI), a Chinese invention, has<br />
gained wide acceptability as a substitute for<br />
primary nickel as a raw material for stainless<br />
steel manufacturers.
Intex is involved in the provision of water around the<br />
Mindoro Nickel Project.<br />
INTEX Resources has signed a Pr oject Management<br />
Contract (PMC) with China’s MCC8<br />
Group Co Ltd covering its Mindoro Nickel Project.<br />
<strong>The</strong> contract means that MCC8 is responsible<br />
for managing the formation of a<br />
consortium to develop the project, including arranging<br />
project financing, identifying pr oject<br />
operator, evaluating EPCM contract options<br />
and, if appropriate, bringing in off-takers.<br />
An MoU was originally signed in January and<br />
this was converted to a PMC in May. Since January,<br />
Intex and MCC8 have worked diligently<br />
to identify potential investors, financiers, of-takers<br />
and operators. One of the results was that<br />
on April 17 Intex, thr ough the introduction of<br />
MCC8, received a proposal from CITIC-GEM<br />
Fund offering 800 million Norwegian kr one in<br />
equity financing, which is assumed to be the<br />
major part, or all of the equity needed for the<br />
realization of phase one of the project.<br />
CITIC-GEM Fund is a part of the CITIC<br />
MINDORO Resources is restructuring its Philippines<br />
assets so that it can concentrate on the<br />
Agata Nickel Project. <strong>The</strong> company is spinning<br />
out its key gold and copper-gold assets - the<br />
Batangas gold pr ojects including Ar changel<br />
and Lobo, and the Tapian San Francisco (TSF)<br />
copper-gold properties near Surigao - into<br />
ASX-listed Red Mountain Mining.<br />
<strong>The</strong> consideration for the sale is shar es in<br />
Red Mountain payable to Mindor o in two<br />
tranches. <strong>The</strong> first tranche involves 100 million<br />
initially non-voting shar es at Aus$0.10<br />
per share on completion of the transaction<br />
and the second involves 50 million ‘perfor -<br />
mance shares’ at Aus$0.10 per share to convert<br />
to non-voting shar es based on<br />
Intex signs contract for Mindoro management<br />
An Intex employee plants an acacia seedling as part of<br />
the CSR program.<br />
Group Corporation, a leading China Stateowned<br />
multinational conglomerate. Its financial<br />
business covers a full range of services<br />
including commercial banking, investment<br />
banking, trust, insurance, fund management<br />
and asset management.<br />
MCC8 is a major Chinese state-contr olled<br />
engineering and construction company, and<br />
is a former part of China’s largest nickel producer,<br />
Jinchuan Group. <strong>The</strong> company develops,<br />
and forms Chinese consortia that<br />
undertake project finance, plant engineering<br />
and construction (EPCM), mine operation<br />
and equity investments. MCC8 possess a<br />
50-year history of construction and completion<br />
of more than 80 non-ferrous metallurgical<br />
plants, including the construction of China’ s<br />
Nickel City in Jinchang.<br />
Intex says planning of the amended feasibility<br />
study for a staged development of Mindoro is<br />
expected to be completed by the end of the<br />
Philippines<br />
Intex employees and local community members involved<br />
in environmental work.<br />
year and the initial financing under the PMC to<br />
cover the DFS costs is expected to be in place<br />
within the same period. It is understood that<br />
MCC8’s deep understanding of nickel production<br />
operations could reduce the CAPEX of MN<br />
significantly. MCC8 will modify the feasibility<br />
studies and undertake preliminary design with<br />
the assistance of Intex.<br />
Intex believes MCC8’s experience in numerous<br />
mining and envir onmental projects in<br />
Asia; Europe and Africa will provide credibility<br />
in coordinating the political, financial and<br />
technical aspects of the pr oject into a streamlined<br />
development strategy.<br />
Under the PCM the consortium will have<br />
the first right of r efusal/option to buy up to<br />
90% of Mindoro Nickel in a staged pr ocess<br />
for US$296 million linked to specific milestones.<br />
Full payment of the US$296 million will<br />
take place befor e construction can start.<br />
Construction is estimated to start in 2015.<br />
Mindoro to spin out copper-gold assets<br />
upgrading the Batangas indicated r esource<br />
to 600,000 ounces of gold and completing a<br />
scoping study that demonstrates a viable<br />
gold project based on more than 50% of the<br />
indicated resource within 12 months of completing<br />
the transaction.<br />
Mindoro’s president and CEO Jon Dugdale<br />
says, “<strong>The</strong> separation of the key gold<br />
and copper-gold assets of the company<br />
from the advanced Agata Nickel Project provides<br />
the opportunity for optimal value recognition<br />
of these assets in today’ s equity<br />
marketplace. This is why the Board and management<br />
of Mindoro supports this proposed<br />
spin-out of the Batangas and TSF gold<br />
and copper-gold projects into the gold mi-<br />
ning and exploration focused Red Mountain.<br />
Red Mountain’s mining expertise and funding<br />
with the Mindor o team’s exploration<br />
and community engagement track r ecord,<br />
is a great combination.”<br />
As part of the transaction Red Mountain will<br />
provide a secured draw-down facility for up<br />
to Aus$1 million to enable Mindor o to commence<br />
drilling, focused on delineating the<br />
high-grade feeder structures below the Kay<br />
Tanda resource at Archangel, Batangas.<br />
Agata includes a 42 million tonne @ 1.01%<br />
nickel measured and indicated resource for<br />
430,000 tonnes of nickel, and a 35.4 million<br />
tonne @ 1.03% nickel pr oved and probable<br />
reserve for 365,000 tonnes.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 7
Philippines<br />
Toledo assesses Berong improvements<br />
TOLEDO Mining Corporation is investigating<br />
ways to extend the curr ently restrained shipping<br />
period of its direct shipping ore (DSO) nikkel<br />
from the Berong joint venture project on<br />
Palawan, is assessing a possible value-added<br />
strategy and is improving the port area. <strong>The</strong>se<br />
measures are aimed at improving revenue at<br />
a time when the JV is targeting annual production<br />
of 750,000 wet metric tons (WMT) @<br />
1.8% nickel from the end of this year.<br />
An engineering company is evaluating the<br />
constraints of the shipping window which<br />
sees shipments halted during the monsoon<br />
season. AIM-listed Toledo hopes to extend<br />
the shipping window and increase annual capacity<br />
to 1 million WMT. If this is not possible<br />
the company believes the non-shipping period<br />
presents an opportunity to build a stockpile<br />
of ‘r eady-to-go’ 1.8% or e. At pr esent<br />
Toledo ships its ore to China but also believes<br />
it may be prudent to investigate value-added<br />
opportunities to find the most suitable pr ocess<br />
for the ore, generating more cashflow.<br />
At its port, Toledo plans to extend the causeway<br />
to achieve better ship loading ef ficiency<br />
with the first phase of the extension<br />
agreed at a budget of US$314,000. This will<br />
extend the existing pier by about 30 metr es<br />
seaward, creating a deeper loading draft<br />
which should provide more stable barge-loading<br />
conditions even during moderate swell.<br />
While the pier extension may not necessarily<br />
prolong the shipping period, it will greatly en-<br />
METALS Exploration is making steady pr ogress<br />
on development of the Runruno Gold<br />
Project with the early works pr ogram reaching<br />
design activity levels and work under<br />
way on multiple facets of the pr oject. <strong>The</strong><br />
company is also making progress with a debt<br />
funding package to support the full development<br />
of Runruno with legal documentation<br />
advanced and finalization expected shortly.<br />
<strong>The</strong> earthworks are at an advanced stage<br />
with the camp site, batch plant and lay-down<br />
area completed, two causeways established<br />
across the Sulong River to facilitate access to<br />
the processing plant site and the pr ocessing<br />
plant earthworks nearing completion. Work is<br />
continuing on construction of the camp and of-<br />
8 | <strong>ASIA</strong> <strong>Miner</strong> |July/August 2012<br />
hance the loading throughput.<br />
Berong has a JORC-compliant resource of<br />
9.13 million tonnes @ 1.55% nickel and a potential<br />
resource of 120 million tonnes @<br />
1.34% nickel. <strong>The</strong> nearby Long Point and<br />
Moorsom projects have a potential resource<br />
of 120 million tonnes @ 1.27% nickel. During<br />
the first quarter of 2012 production of run-ofmine<br />
ore from Berong was 183,000 WMT at<br />
an average grade of 1.88%. DSO operations<br />
resumed in early Mar ch when the shipping<br />
window reopened with shipments of 48,700<br />
WMT @ 1.82% and 54,000 WMT @ 1.63%<br />
carried out during March. Another three shipments<br />
of 55,603, 48,315 and 40,845 WMT<br />
were made in subsequent weeks.<br />
<strong>The</strong> Berong operation is held by Ber ong<br />
Nickel Corporation, a joint ventur e between<br />
Toledo, Atlas Consolidated Mining and Deve-<br />
fice complexes, and on the pioneering work to<br />
establish the road into the pit with the material<br />
extracted being used as fill on both the laydown<br />
and processing plant site areas.<br />
Leighton Contractors Asia have been contracted<br />
to design and construct the pr ocessing<br />
plant at a guaranteed maximum of<br />
US$91.5 million out of a total capital cost for<br />
the entire project of US$167.8 million.<br />
Leighton reports that it is pr oceeding well<br />
with the processing plant detailed engineering<br />
program.<br />
Other aspects of the early stage works program<br />
include provision of construction power,<br />
provision of potable water, erection of a concrete<br />
batching plant and acquisition of selec-<br />
lopment and World Fund Pte Ltd, which r ecently<br />
purchased ENK’s 18.7% stake.<br />
Owing to a delay in the granting of a new<br />
tree cutting permit, the Berong mine has a limited<br />
mining area which is impacting on the<br />
amount of high grade ore that can be produced.<br />
This forced the joint venture to revise the<br />
ore sales plan from a single 1.8% grade to a<br />
combination of 1.8%, 1.6% and 1.5% grade<br />
shipments in order to maximize revenue until<br />
a new permit is granted.<br />
Toledo is also seeking other potential buyers<br />
for its 40% stake in the Ipilan nickel operation<br />
after it received a draft share purchase<br />
agreement from Chinese gr oup Jinchuan,<br />
which contained terms that the company ,<br />
along with its JV partners, thought wer e<br />
wholly unacceptable. <strong>The</strong> exclusivity granted<br />
to Jinchuan in the MoU has expired.<br />
Loading direct shipping ore from Toledo Mining’s Berong Nickel Project on Palawan island.<br />
Steady progress on early Runruno development<br />
ted units of the mobile fleet.<br />
Metals Ex executive chairman Ian Holzberger<br />
says, “It is very satisfying to see the progress<br />
being made on the ground at Runruno<br />
as the early works program ramps up and the<br />
work commences on multiple facets of the<br />
project. This work demonstrates the company’s<br />
capacity to implement the Runruno project<br />
and is crystallising the size and scope of<br />
the project to its stakeholders. Equally it is<br />
pleasing to see the pr ogress made with the<br />
processing plant detailed engineering pakkage<br />
under Leighton’s management. This<br />
work will support the early commencement<br />
of the processing plant construction once full<br />
funding is available.”
Philippines<br />
10 | <strong>ASIA</strong> <strong>Miner</strong> |July/August 2012
DRILLING by CGA Mining has resulted in an<br />
updated resource and reserve estimate that<br />
replaces all ounces mined at Masbate Gold<br />
Project. Total measured and indicated resources<br />
have increased contained gold by 12.7%<br />
to 5.13 million ounces compar ed with 4.55<br />
million ounces reported in the last release of<br />
a NI 43-101 compliant r esource. After allowing<br />
for ounces depleted from mining since<br />
the last resource release, this represents an<br />
increase of 1.06 million ounces or 23.3%.<br />
<strong>The</strong> deposit also contains an estimated in -<br />
ferred mineral resource containing 2.83 million<br />
ounces compared with 3.22 million ounces reported<br />
in the last resource release. <strong>The</strong> reduction<br />
is associated with mining depletion and<br />
conversion to the measured and indicated categories.<br />
<strong>The</strong> updated estimates are based on<br />
drilling completed to the end of June 2011,<br />
which represents only the addition of about<br />
42,000 metres of new drilling. Drilling continues<br />
within and adjacent to the current mineralization,<br />
with intercepts subsequent to the<br />
preparation of this model showing potential to<br />
upgrade mineral classification and further increase<br />
the total resources.<br />
<strong>The</strong> update covers a geographic ar ea<br />
slightly larger than the earlier estimate and includes<br />
resources for the Old Lady deposit reported<br />
for the first time. It does not include<br />
resources for the Pajo prospect as drilling at<br />
this location commenced after the cut-of f<br />
date for inclusion in the updated estimate.<br />
As of October 31, 2011, the total pr oven<br />
and probable reserves estimation has increased<br />
to contain 3.097 million ounces compared<br />
to 3.02 million ounces r eported in the<br />
BROKER Fairfax has increased its price target<br />
for Medusa Mining and says that the curr ent<br />
market represents a golden opportunity to buy<br />
into the stock. It has impr oved its forecasts<br />
owing to an expected reduction in cash costs<br />
at Medusa’s flagship Co-O Gold Project as well<br />
as an increase in production during 2012.<br />
Fairfax analyst John Meyer says exploration<br />
at the Co-O mine continues to pr ogress and<br />
that the JORC resource should continue to expand<br />
to replace ounces that have been unearthed<br />
and to extend the overall resource to more<br />
than 2 million ounces, up from 1.96 million. He<br />
says the r ecent Bananghilig gold discovery ,<br />
where production is targeted for 2016, should<br />
also extend to more than 1 million ounces although<br />
mine planning will be for a potential<br />
200,000 ounce per annum operation for a five<br />
year mine life at a $550 per ounce cash cost.<br />
In terms of copper, John Meyer says the<br />
Medusa team is working to pr ove up a significant<br />
body of mineralization with a view<br />
to selling its copper portfolio.<br />
“Medusa is a relatively safe gold stock with<br />
Philippines<br />
CGA replaces ounces mined at Masbate<br />
previous reserve estimate. This represents an<br />
overall increase of 455,000 ounces or 17.2%<br />
from the previous estimate after allowing for<br />
production of 378,000 ounces.<br />
Since the drilling cut-off date a further 60,600<br />
metres of exploration drilling has been completed.<br />
Further updates to the r eserve and r esource<br />
estimates are planned to be completed<br />
on an annual basis, with the next drilling cut-of<br />
date June 30, 2012. <strong>The</strong> exploration team r emains<br />
confident, given CGA ’s demonstrated<br />
commitment to incr ease exploration activity,<br />
that the ability to further gr ow the reserve and<br />
resource base of the project is strong.<br />
CGA achieved record monthly production of<br />
20,007 ounces of gold in May , eclipsing the<br />
previous record of 18,318 ounces in December<br />
2010. <strong>The</strong> record came from processing<br />
a record of 642,816 tonnes, with the previous<br />
record being 605,330 tonnes in May 2011, at<br />
1.15 grams/tonne gold head grade and an<br />
average hourly throughput rate of 919 tonnes.<br />
Since the SAG mill was br ought back into<br />
production in late December 2011,<br />
throughput has averaged 802 tonnes/hour<br />
with an availability of 93%.<br />
A gold pour at CGA Mining’s Masbate Gold Project. <strong>The</strong> project achieved record monthly production of 20,007<br />
ounces during May.<br />
Broker says Medusa is ‘golden’ opportunity<br />
a strong cash and gold balance and relatively<br />
well set gold production growth from here. It<br />
is consistently mining and pr ocessing high<br />
grade gold material from the Co-O gold mine,<br />
which is highly cash generative and its expansion<br />
to an annual 200,000 ounces is largely<br />
compete. We view the current market as a<br />
‘golden’ opportunity to buy into Medusa Mining<br />
stock as gold production rates improve.”<br />
Medusa says that it is on a growth path to<br />
annual production of 400,000 ounces by the<br />
end of 2015 or early 2016.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 11
Philippines<br />
Policy review provides hope for Tampakan<br />
INDOPHIL Resources believes a systematic<br />
review of mining policy by the Philippine Government<br />
provides some light at the end of<br />
the tunnel for the T ampakan Copper-Gold<br />
Project. <strong>The</strong> project is owned by Sagittarius<br />
Mines, a joint venture company with Xstrata<br />
Copper and Indophil as major shareholders.<br />
Development at the project that is estimated<br />
to contain 15 million tonnes of copper and almost<br />
18 million ounces of gold, was hampered<br />
by a provincial government ban on open pit mining<br />
in South Cotabato, the province in which<br />
Tampakan is located, that took ef fect in October<br />
2010. As well as impacting the companies<br />
involved, the ban has had an adverse<br />
effect on investor confidence in the Philippines.<br />
Indophil’s chairman Gavan Collery says the<br />
company was comforted at the time the mining<br />
ban was announced by assurances from<br />
the Philippine Government that such a ban<br />
was illegal - that it was contrary to national<br />
law - but it is still in place. “To add further uncertainty,<br />
in early 2012 the Of fice of the Secretary<br />
of the Department of Envir onment<br />
and Natural Resour ces (DENR) r eturned<br />
Tampakan’s application for appr oval of the<br />
Environmental Impact Statement for the mine<br />
area. This approval, known locally as an Environmental<br />
Compliance Certificate or an<br />
ECC, was conditionally denied and made<br />
subject to resolution of the open pit ban.”<br />
An appeal by Xstrata to reconsider the ECC<br />
has recently been tur ned down with the<br />
DENR re-stating that the matter is dependent<br />
on the resolution of the conflict between national<br />
mining policy and the envir onmental<br />
code in South Cotabato.<br />
Gavan Collery says the framework of the<br />
Gold Fields boosts Far South East interest<br />
GOLD Fields intends to incr ease its interest<br />
in the Far South East Gold Project on Luzon<br />
to up to 60% as part of a strategy to diversify<br />
risk away fr om South Africa. An initial r esource<br />
estimate for the pr oject is expected<br />
during the second half of this year at which<br />
time a pre-feasibility study will be started. An<br />
indicative timeline shows that a mine could<br />
be constructed during 2015-16.<br />
Gold Fields has a strategy to have 5 million<br />
ounces of gold either in pr oduction or under<br />
12 | <strong>ASIA</strong> <strong>Miner</strong> |July/August 2012<br />
<strong>The</strong> Tampakan project of Sagittarius Mines is in southern Mindanao. Major Sagittarius stakeholders are Xstrata<br />
Copper and Indophil Resources.<br />
mining policy review is understood to be contained<br />
within six points, covering sustainable<br />
development; best practice and governance;<br />
protection of the environment; primacy of national<br />
law; sharing of benefits; and sound mining<br />
sector management.<br />
“This framework – save for implying ‘restoration<br />
of investor confidence’ – is the basis<br />
for the type of responsible practice that one<br />
would care to see applied in any jurisdiction<br />
in the world. <strong>The</strong> framework is one that we<br />
support, and one that we will continue to advocate<br />
within the industry and within all levels<br />
of government. Hopefully, its carriage and adoption<br />
will see the mining industry in the Philippines<br />
contributing to a sound economic<br />
future; a future that can in part be underpinned<br />
by development of Tampakan.<br />
“While being understandably cautious<br />
development by 2015, with South Africa making<br />
up 40% of that, contributing 2 million ounces.<br />
It plans to have 1 million ounces fr om<br />
each of the three regions in which it operates<br />
- West Africa, South America and Australasia.<br />
<strong>The</strong> company is buying up to 60% of the<br />
Far South East pr oject from the existing<br />
owners for a total payment of $340 million. In<br />
September 2010 it reached an agreement to<br />
buy the stake from Lepanto Consolidated Mining,<br />
the 60% owner of Far South East, and<br />
based on past experiences, it appears that<br />
mining policy in the Philippines is coming of<br />
age, and will be based on sound process and<br />
system. A robust and invigorated national mining<br />
policy will deliver nation-building benefit<br />
to the people of the Philippines and r eward<br />
those who embark on the considerable risk<br />
of minerals exploration and development.”<br />
He says, “Re-affirmation and enforcement of<br />
the issue of primacy of national laws over local<br />
government ordinances, such as the ban on<br />
open pit mining in South Cotabato, is critical to<br />
any decision to proceed with the near-$6 billion<br />
development of Tampakan. <strong>The</strong> mor e than<br />
US$400 million already invested on the Tampakan<br />
study programs, legislated government<br />
payments, community development and related<br />
project expenditure is a clear demonstration<br />
of the joint venturers’ commitment.”<br />
Liberty Express Assets, the 40% holder . In<br />
March this year, Gold Fields brought forward<br />
a payment of $110 million to raise its stake to<br />
40% in the project. <strong>The</strong> early exercise of the<br />
option to buy the Liberty stake does not afect<br />
the option to buy a further 20% stake for $110<br />
million from Lepanto, which will r emain Gold<br />
Fields’ partner in the project.<br />
Gold Fields plans to mine an unexploited<br />
ore body below a mine that is near the end<br />
of its life.
St Augustine starts King-king permitting process<br />
ST AUGUSTINE Gold & Copper has started<br />
the process of permitting of the King-king<br />
Copper-Gold Project in the southeast of the<br />
island of Mindanao by completing and submitting<br />
the Declaration of Mine Project Feasibility<br />
(DMPF). King-king is one of the largest undeveloped<br />
copper-gold deposits in the world<br />
with a measur ed and indicated mineral r esource<br />
of 5.4 billion pounds of contained copper<br />
and 10.3 million ounces of contained gold.<br />
<strong>The</strong> project, which is listed as one of the top<br />
priority projects by the Philippine Mines and<br />
Geosciences Bureau, also has an inferred resource<br />
of 188.8 million tonnes @ 0.215%<br />
total copper, 0.048% soluble copper and<br />
0.265 grams/tonne gold. It is 35km east of<br />
Davao City, 13km from the coast, has a low<br />
strip ratio (0.8:1) and is at an advanced stage<br />
with 95,651 metres of drilling composed of<br />
291 core and reverse circulation holes, including<br />
6052 metres of new drilling composed<br />
of 14 core holes (and 1 RC) in 2011.<br />
<strong>The</strong> company’s Philippines partner, Nation-<br />
INITIAL drilling as well as the extensive and<br />
intense skarn alteration that extends for more<br />
than 700 metres along strike have pr ovided<br />
Mining Group with further indications that the<br />
Tagpura/Bayag Bayag prospects at its Comval<br />
Copper-Gold Project have the potential to<br />
host a significant copper ore body. Assay results<br />
from the first of eight holes into Bayag<br />
Bayag target have provided results that support<br />
extensive drilling.<br />
<strong>The</strong> initial hole inter cepted more than 100<br />
metres of variably skarn altered limestone consisting<br />
of massive gar net, pyroxene, epidote<br />
pyrrhotite and visible copper mineralization as<br />
chalcopyrite. <strong>The</strong> assays include 44 metres @<br />
0.64% copper from 39 metres, including 28<br />
metres @ 0.88% copper from 55 metres.<br />
Three holes have been drilled at Bayag<br />
Bayag with another thr ee being drilled. <strong>The</strong><br />
company has a total of eight holes planned in<br />
the initial drilling program at Bayag Bayag in<br />
order to test the overall width and strike extent<br />
of this mineralization. This will be done in conjunction<br />
with ground magnetic surveyingl.<br />
<strong>The</strong> onsite exploration team has mapped<br />
surface mineralization consisting of skarn al-<br />
wide Development Corporation (NADECOR),<br />
as party to the <strong>Miner</strong>al Pr oduction Sharing<br />
Agreement with the Philippine Gover nment,<br />
has submitted the DMPF to the Department<br />
of Environment and Natural Resources and<br />
the Mines and Geosciences Bur eau for review<br />
and approval.<br />
<strong>The</strong> DMPF is a r egulatory requirement that<br />
includes 20 plans, certifications and other documents<br />
required to obtain approval from the<br />
Philippine government to develop King-king.<br />
This submittal begins the permitting pr ocess<br />
and represents an important milestone. NADE-<br />
COR’s and St Augustine’s mutual commitment<br />
to development of the project in a manner that<br />
is protective of health, safety and the environment<br />
was incorporated into the DMPF.<br />
NADECOR is in the process of resolving internal<br />
issues within its boar d of directors, however<br />
these issues did not impact submission<br />
of the DMPF. Also, while some delay in the issuance<br />
of deliverables due to St Augustine by<br />
NADECOR has occurred as a result, the com-<br />
pany understands that NADECOR’ s board<br />
members and key shar eholders are working<br />
toward resolution of these issues. Company<br />
management is communicating constantly<br />
with its partner to ensur e the interests of the<br />
company and the project are protected.<br />
St Augustine’s CEO Andrew J Russell says,<br />
“<strong>The</strong> company has invested mor e than $70<br />
million in the project and the DMPF to date.<br />
<strong>The</strong> next steps are the completion of a pr efeasibility<br />
study and following that, a bankable<br />
feasibility study (BFS). <strong>The</strong> BFS is targeted for<br />
completion later this year to coincide with anticipated<br />
receipt of approved permits.<br />
On June 1 St Augustine Services Inc, a<br />
subsidiary of St Augustine, signed a Memorandum<br />
of Agr eement with the T echnical<br />
Education and Skills Development Authority<br />
(TESDA) of the Philippines, the first such<br />
agreement for a mining company. TESDA will<br />
facilitate and participate in the conduct of<br />
workforce training for the King-king pr oject<br />
through construction and operation.<br />
Promising indications from Comval project<br />
teration and gossans, with this potentially mineralized<br />
zone being identified over 700 metres<br />
of strike length. <strong>The</strong> nature and extent of<br />
the alteration mineral assemblage indicates<br />
that the mineralizing system is large and par-<br />
<strong>The</strong> pit and workings at Mining Group’s Tagpura prospect on the Comval project.<br />
allels can be drawn with many skarn/copper<br />
porphyry systems around the world. Skar n<br />
alteration is a common tool for exploration of<br />
larger porphyry mineralizing systems.<br />
Mining Group’s managing director Andrew<br />
Maurice says, “<strong>The</strong> initial assay r esults from<br />
Bayag Bayag ar e encouraging, especially<br />
Philippines<br />
when combined with the assay r esults we<br />
previously announced from the Tagpura and<br />
Maangob targets. All of our targets are in relatively<br />
close pr oximity, with Bayag Bayag<br />
only 700 metres south of T agpura, further<br />
supporting the potential economic viability of<br />
the Comval copper/gold project.<br />
“Perhaps the most significant featur e of<br />
what we see at Bayag Bayag is evidence of<br />
a widespread and intensive zoned alteration<br />
system commonly associated with large copper/gold<br />
porphyry systems.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 13
Philippines<br />
Taysan PFS delivers positive results<br />
A POSITIVE pre-feasibility study (PFS) for the<br />
Taysan Copper-Gold Project supports the<br />
proposal of Crazy Horse Resour ces to pursue<br />
a trade sale or a joint ventur e of the<br />
Luzon Island project. <strong>The</strong> PFS forecasts average<br />
annual payable production of 76 million<br />
pounds of copper, 30,000 ounces of gold,<br />
93,000 ounces of silver and 476,000 tonnes<br />
of magnetite over the 24 year mine life.<br />
Average operating costs for the project are<br />
estimated at US$1.68 per pound of copper<br />
equivalent over the life of the mine and<br />
US$1.18 per pound of copper equivalent during<br />
the first five years of production. Initial capital<br />
costs are estimated at US$502 million.<br />
<strong>The</strong> PFS also determines that the project has<br />
an estimated net present value at a 10% discount<br />
rate of US$503 million and an inter nal<br />
rate of return of 49.2%, both calculated on<br />
after tax, post-financing cash flow including<br />
metal by-products.<br />
Since the release of the PFS Crazy Horse<br />
has engaged the services of Regent Advisors<br />
to advise the company as it seeks a potential<br />
buyer or joint venture partner for the project.<br />
Crazy Horse’s chairman and CEO Mitch Alland<br />
says, “We are excited about the attractiveness<br />
and the financial r obustness of<br />
Taysan. <strong>The</strong> large measured and indicated resource<br />
of 1.2 million tonnes of contained<br />
copper will provide the basis for the stage 1<br />
MARTINA <strong>Miner</strong>als has signed a binding Letter<br />
of Intent with BlueCreek Mining, a Filipinoowned<br />
company, to acquire a 40% interest in<br />
two groups of gold pr ospective property<br />
known as Boston and San Miguel in Eastern<br />
Mindanao. Martina is a Canadian-listed company<br />
focused on minerals exploration and<br />
was formed from the merger of Compostela<br />
Mining with Manor Global.<br />
Boston is to the east of Mt Diwalwal, one of<br />
the largest gold deposits in the Philippines,<br />
which is itself immediately to the east of Martina’s<br />
TRIMA 1 property. <strong>The</strong> San Miguel property<br />
is about 130km to the north of Boston.<br />
<strong>The</strong> properties are along the well-known and<br />
highly mineralized East Mindanao fault.<br />
<strong>The</strong> Boston exploration area is held in an<br />
Ancestral Domain Title of the Boston Man-<br />
14 | <strong>ASIA</strong> <strong>Miner</strong> |July/August 2012<br />
project of a 15 million tonnes per annum operation<br />
for 24 years which can then be followed<br />
by the stage 2 expansion to either<br />
double the throughput rate or extend mine life<br />
to up to 40 years.”<br />
Drilling on Crazy Horse Resources’ Taysan Copper-Gold Project in Southern Luzon.<br />
Martina acquires additional gold prospects<br />
daya-Manobo Indigenous Peoples. <strong>The</strong> Boston<br />
properties comprise 19,151 hectar es.<br />
<strong>The</strong> Indigenous Peoples will also r eceive 1<br />
million common shares and warrants of Martina<br />
and a cash payment of US$150,000. <strong>The</strong><br />
San Miguel property is also within an Ancestral<br />
Domain T itle and r epresented by the<br />
Upper San Miguel Manobo Sectoral Council<br />
of Elders and Leaders. <strong>The</strong> Indigenous<br />
Peoples will r eceive a cash payment of<br />
US$50,000. <strong>The</strong> San Miguel pr operty comprises<br />
about 18,000 hectares.<br />
As part of the transaction BlueCreek will retain<br />
a 30% ownership in each of the properties<br />
and the local Indigenous Peoples will hold the<br />
balance of the properties. Martina can, at its<br />
option, acquire BlueCreek’s 30% economic interest<br />
in the properties based on the following:<br />
Located in Southern Luzon, Taysan is accessible<br />
from Manila by 106km of expr essway<br />
followed by 7km on sealed pr ovincial<br />
roads. It is 20km fr om the provincial capital<br />
on sealed provincial roads.<br />
Discovery of 500,000 ounces of gold or its<br />
equivalent to NI 43-101 resource standard for<br />
2.5 million common shares; discovery of 1 million<br />
ounces of gold or its equivalent to NI 43-<br />
101 resource standard for 5 million common<br />
shares; and 1 million common shares per additional<br />
1 million ounces or its equivalent to NI<br />
43-101 resource standard.<br />
Since this acquisition Martina has also acquired<br />
up to a 68% interest in privately held exploration<br />
land in northeast Mindanao. <strong>The</strong><br />
company has signed an MOU with Consolidated<br />
Ores Philippines, a Filipino company owned<br />
by the Adviento Group, to acquire an initial 40%<br />
interest in its property known as Umalag.<br />
Consolidated Ores holds a <strong>Miner</strong>al Production<br />
Sharing Agreement for Umalag, which is<br />
in the Province of Surigao del Sur.
INTERNATIONAL diversified resource company<br />
Astra Resources, through its joint venture<br />
in Cagayan River Construction and<br />
Development Corporation (CRCDC), will<br />
begin dredging its iron sands project later this<br />
year. <strong>The</strong> Babuyan Channel Ir on Sand Lode<br />
in the province of Cagayan, northeast Luzon,<br />
is estimated to contain more than 31.3 billion<br />
tonnes in the <strong>Miner</strong>al Pr oduction Sharing<br />
Agreement areas (MPSA), which is only a<br />
fraction of the lode.<br />
Through its subsidiary Astra Philippines Pty<br />
Ltd, Astra beneficially owns 90% of the joint<br />
venture company CRCDC, a Philippine registered<br />
company. <strong>The</strong> ultimate goal of<br />
CRCDC is of f-shore mining of magnetite<br />
sand with a top monthly pr oduction of<br />
300,000 tonnes on a floating plant.<br />
Astra’s CEO Dr Jaydeep Biswas says commencement<br />
of the project is pursuant to a Memorandum<br />
of Agr eement by and between<br />
BEZANT Resources has signed an option<br />
agreement with Gold Fields Netherlands Services<br />
for the potential disposal of its Philippines<br />
subsidiary Asean Copper Investments<br />
Limited which has the Mankayan Copper -<br />
Gold Project on Luzon. In light of Gold Fields<br />
recent further part exercise of their options<br />
with Lepanto Consolidated Mining and Liberty<br />
Express Assets to acquire up to 60%<br />
of the adjacent Far South East pr oject, Bezant<br />
believes there is a good probability that<br />
the option will be exercised.<br />
Under the terms of the agr eement, Gold<br />
Fields paid a non-r efundable upfront cash<br />
payment of US$7 million to Bezant, with a<br />
further cash sum of US$63 million becoming<br />
payable, should the option be exercised prior<br />
to its scheduled expiry on January 31, 2013.<br />
Bezant’s chairman Gerry Nealon says, “In<br />
the event that the option is exercised and the<br />
sale and transfer of the issued shar es in<br />
Asean is completed, the company anticipates<br />
that approximately 50% of the gross sale proceeds<br />
will potentially be available for distribution<br />
to shareholders. Of the 50% of funds<br />
retained, all taxes will be paid out of this sum<br />
with the remainder being retained to progress<br />
the company’s copper/gold exploration portfolio,<br />
particularly in Argentina.”<br />
Iron sands dredging by the end of 2012<br />
CRCDC and the Provincial Government of Cagayan,<br />
which was ratified by the Pr ovincial<br />
Board on May 4, 2012. “This grants CRDCD<br />
the authority to dr edge, extract and utilize<br />
‘quarry resources’, sand particles and other<br />
materials of commercial value such as magnetite<br />
iron sands from the Cagayan River Delta.”<br />
<strong>The</strong> authority to dredge the assigned area, a<br />
200 metre by 12km strip along the mouth of<br />
the Cagayan River, located in Aparri, was stipulated<br />
to be for a period of 25 years, with production<br />
expected to reach annual gross sales<br />
of about 1 million tonnes by 2014. <strong>The</strong> initial<br />
estimated resource is 135 million tonnes.<br />
Astra’s managing director Silvana De Cianni<br />
says Astra is in the process of acquiring additional<br />
mining areas alongside MPSA 1, 2, 3<br />
and 4 to add to the joint ventur e. “This site,<br />
to be secured from the Department of Environment<br />
and Natural Resources, has inferred<br />
resources of 13 billion tonnes.”<br />
It is expected that this business partner -<br />
ship will significantly enhance the Economic<br />
Development Program, particularly in the<br />
mining industry sector, in the Philippines.<br />
Astra, through its joint ventur e interest in<br />
CRCDC, has successfully arranged all r equirements<br />
to start full operation by the end<br />
of 2012. Top level discussions will be held<br />
in Manila for a corporate review of the requirements<br />
before full implementation.<br />
Astra Resources’ global portfolio includes<br />
gold interests in South East Asia, coal in<br />
Africa, iron ore in India, Norway and the Philippines,<br />
carbon efficient and commodity businesses,<br />
the pr oduction of high-str ength<br />
T-Steel technology in Hungary , clean coal<br />
technology and the provision of mining services<br />
housing in Rockhampton, Queensland,<br />
and a large agricultural focus on creating Australia<br />
as the food bowl for the Asian r egion<br />
through Astra Agricultural Resources.<br />
Bezant signs option on Mankayan project<br />
<strong>The</strong> Guinaoang porphyry copper/gold deposit,<br />
or Mankayan pr oject, is in the Mankayan-Lepanto<br />
mining district, an ar ea of<br />
porphyry copper belts in the Philippines. It is<br />
240km north of the capital and 6km east of<br />
the copper/gold mine owned and operated<br />
by Lepanto Consolidated, and is accessible<br />
by both road and air.<br />
<strong>The</strong> Mankayan project of Bezant Resources is in a mineral-rich area of northwest Luzon.<br />
Philippines<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 15
China<br />
Drilling extends main zone at Beiya<br />
DRILLING by Asia Now Resour ces at the<br />
main zone of the Beiya pr oject has extended<br />
the gold-silver and base metal zone to<br />
2480 metres by 180 to 700 metres with the<br />
zone remaining open to the northwest and<br />
east. <strong>The</strong> main zone is adjacent to the<br />
open-pit Beiya Gold Mine that pr oduces<br />
200,000 ounces of gold annually but which<br />
is not part of Asia Now’s property.<br />
<strong>The</strong> drilling r eturned a number of higher<br />
grade intersections: 5.8 metr es @ 1.0<br />
grams/tonne gold, 121.6 grams/tonne silver<br />
and 9.9% lead and zinc, including 1.5 metres<br />
Asia Now Resources’ Beiya and Habo projects are in Yunnan province.<br />
钻探作业扩展了北衙北区块的主区域<br />
亚洲现代资源公司在其位于云南省的北衙项<br />
目实施的钻探作业使北衙北区块的金-银和<br />
基础金属区域长度延伸至2480米,宽度<br />
介于180-700米,并保持向西北和东方向延<br />
伸。该主区域临近露天开采的北衙金矿,北<br />
衙金矿年产黄金20万盎司,并不属于亚洲<br />
现代公司。<br />
此次钻探作业得到许多较高品位的矿段:<br />
5.8米矿段金品位1.0克/吨,银品位121.6<br />
克/吨,铅锌品位9.9%,其中,1.5米金品位<br />
2.1克 /吨,银品位169克 /吨,铅锌品位<br />
14.4%;10.5米矿段金品位1.0克/吨,银品<br />
位48克/吨,铅锌品位4.8%。<br />
其他显著的矿段包括:1.3米矿段金品位<br />
16 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
@ 2.1 grams/tonne gold, 169 grams/tonne<br />
silver and 14.4% lead and zinc; and 10.5 metres<br />
@ 1.0 grams/tonne gold, 48<br />
grams/tonne silver and 4.8% lead and zinc.<br />
Other notable intersections are: 1.3 metres<br />
@ 0.35 grams/tonne gold, 375<br />
grams/tonne silver and 26.1% lead and<br />
zinc; 10.5 metres @ 0.22 grams/tonne gold,<br />
89.1 grams/tonne silver, 0.3% copper and<br />
3.9% lead and zinc, including 1.5 metres @<br />
1.0 grams/tonne gold, 308 grams/tonne silver,<br />
1.68% copper and 6.1% lead and zinc;<br />
1.5 metres @ 4.0 grams/tonne gold and 14<br />
0.35克 /吨,银品位375克 /吨,铅锌品位<br />
26.1%;10.5米金品位0.22克/吨,银品位<br />
89.1克/吨,铜品位0.3%,铅锌品位3.9%,<br />
其中,1.5米矿段金品位1.0克/吨,银品位<br />
308克/吨,铜品位1.68%,铅锌品位6.1%;<br />
1.5米矿段金品位4.0克/吨,银品位14克/<br />
吨;1.7米矿段金品位2.18克/吨,银品位21<br />
克/吨;4.5米金品位0.22克/吨,银品位58克<br />
/吨,铅锌品位4.7%,其中1.5米金品位0.36<br />
克/吨,银品位148克/吨,铅锌品位10%。<br />
公司技术总监Noel White博士表示,“非常<br />
高兴在公司刚刚完成NI43-101报告后,我们<br />
又扩大了主矿带范围。北衙工作不断取得的<br />
成果是我们尽快开展预可行性研究的主要推<br />
动力。为了进一步完善预可行性研究的准备<br />
grams/tonne silver; 1.7 metr es @ 2.18<br />
grams/tonne gold and 21 grams/tonne silver;<br />
and 4.5 metr es @ 0.22 grams/tonne<br />
gold, 58 grams/tonne silver and 4.7% lead<br />
and zinc, including 1.5 metr es @ 0.36<br />
grams/tonne gold, 148 grams/tonne silver<br />
and 10% lead and zinc.<br />
Chief technical advisor to the company, Dr<br />
Noel White, says, “We are very pleased that<br />
not long after completing an initial NI43-101<br />
resource estimate late last year, we have already<br />
expanded the main zone at Beiya.<br />
<strong>The</strong> continuing growth at Beiya is encouraging<br />
us to commence a pre-feasibility study<br />
as soon as possible. In addition to finalizing<br />
our preparations for the study we will continue<br />
to drill several new highly pr ospective<br />
copper-gold targets in the Beiya area.”<br />
Asia Now has earned 72% with the option<br />
of increasing to 90% its interest in the Beiya<br />
North property. Beiya North is part of the<br />
Beiya project that involves two joint ventur e<br />
companies. Beiya North is part of the JV with<br />
Yunnan Non-Ferrous Geology and <strong>Miner</strong>al<br />
Resources Company. <strong>The</strong> company is ear -<br />
ning 70% with the possibility of earning up to<br />
88% interest in another JV with Yunnan Geology<br />
and <strong>Miner</strong>al Resources Company.<br />
Asia Now has appointed Har old Shipes as<br />
president and chief executive officer, replacing<br />
Kaihui Yang who served in these r oles since<br />
May 1, 2006, under the terms of a management<br />
services consulting agreement. Harold<br />
Shipes has 30 years of mining experience in<br />
senior positions in base and pr ecious metals<br />
production, engineering and project development<br />
management around the world.<br />
工作,我们将继续在北衙地区几处潜力较大<br />
的铜金靶区增加钻孔。”<br />
亚洲现代已经获得北衙北区块72%的股<br />
份,并有权提高至90%。北衙北是北衙项目<br />
的一部分,涉及两个合资企业。北衙北项目<br />
是与云南有色金属地质矿业资源公司合资项<br />
目的一部分。该公司正在获得与云南地质矿<br />
业资源公司的一个合作项目70%的股份,并<br />
有可能增至88%。<br />
亚洲现代已经任命Harold Shipes先生为公<br />
司总裁兼首席执行官,接替了依据管理服务<br />
咨询协议、自2006年5月1日开始任职的杨<br />
开辉先生。Harold Shipes先生在世界范围内<br />
的基础金属和贵金属生产、工程和项目开发<br />
管理领域拥有30年的高管层经验。
China<br />
Follow-up exploration in Yejiaba area<br />
MINCO Gold has started an exploration<br />
program at the Longnan pr oject in Gansu<br />
province aimed at following up multiple drill<br />
targets defined in its 2010 and 2011 pr ograms.<br />
<strong>The</strong> new program is focusing primarily<br />
on the Shajinba and Baimashi sub-areas<br />
within the Yejiaba area, and includes surface<br />
trenching, sampling, drilling and tunnelling.<br />
<strong>The</strong> company has planned about 3000<br />
metres of diamond drilling in eight holes and<br />
about 3000 metres of underground tunnelling<br />
designed to follow-up the drill targets.<br />
<strong>The</strong> surface trenching and sampling is being<br />
conducted to determine the overall footprint<br />
of the multiple gold zones identified in the<br />
Yejiaba metallogenic trend.<br />
<strong>The</strong> initial parts of the pr ogram include<br />
mobilization of geological teams, initiation of<br />
surface work, and the delivery and set up of<br />
a drill rig at the Baimashi gold zone. Testing<br />
of Baimashi Zones 1 and 2, along with the<br />
corresponding induced polarization anomalies<br />
previously defined at the depth will be<br />
conducted to pr ovide data for initial r esource<br />
definition and program extensions.<br />
Canadian-based Minco Gold has successfully<br />
maintained 12 exploration permits<br />
in the south of Gansu province, collectively<br />
referred to as the Longnan project. As well<br />
as the exploration follow-up, the company<br />
has initiated construction of an access road<br />
18 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
to the Yejiaba area facilitating the tunnelling<br />
and drilling. Minco Gold owns an exploration<br />
property portfolio covering more than<br />
1000sqkm of mineral rights in China.<br />
Meanwhile, Minco Gold’s vice president finance<br />
and chief financial officer Paul Zhang<br />
resigned during April with the company’ s<br />
corporate controller Ellen Wei appointed interim<br />
chief financial of ficer. She has been<br />
with the company since February 2005 and<br />
was appointed corporate controller in January<br />
2009.<br />
<strong>The</strong> company has planned about 3000 metres of diamond drilling<br />
in eight holes and about 3000 metres of underground tunnelling<br />
designed to follow-up the drill targets.<br />
叶家坝区域跟进的钻探作业<br />
明科金矿公司旗下的甘肃省陇南项目已经启<br />
动了勘探项目,旨在跟进2010年和2011年计<br />
划圈定的多个钻探靶区。此次计划主要关注<br />
叶家坝区域的沙金坝和白马石子区域,包括<br />
地表槽探、取样、钻探和坑探。<br />
为了跟进这些钻探靶区,公司计划实施约<br />
300米金刚石钻探、共计8个钻孔和约3000米<br />
地下坑探。地表槽探和取样正在进行之中,<br />
旨在确定在叶家坝成矿带发现的多个金矿化<br />
区域的总体生态足迹。<br />
该计划的初始部分包括地质队的调动、<br />
地表工作的初始化和白马石金成矿区域的钻<br />
机交付与安装。白马石1号与2号区域以及<br />
先前在深部确定的相应的激电异常将被进行<br />
测试,为初步的资源定义和计划的扩展提供<br />
数据。<br />
总部位于加拿大的明科金矿公司已经成功<br />
地保有甘肃省南部的12个勘探许可证,统<br />
称为陇南项目。除了跟进的钻探作业,公司<br />
启动了通向叶家坝区域的道路建设工作,以<br />
推进坑探和钻探作业。明科黄金公司在中国<br />
Ellen Wei has more than 10 years experiences<br />
with a major Chinese auditing firm<br />
and three years with Ernst & Young LLP respectively.<br />
Before being appointed as corporate<br />
controller, she served four years as<br />
the CFO for Minco Mining (China) Ltd.<br />
Minco Gold’s new exploration program is focused on the Yejiaba area of the Longnan project to follow up former<br />
promising results.<br />
拥有的勘探资产组合,覆盖的矿权面积超过<br />
1000平方公里以上。<br />
同时,明科黄金公司的财务副总裁兼首席财<br />
务官Paul Zhang先生于四月份辞职,公司财务<br />
总监Ellen Wei女士被任命为临时首席财务官。<br />
她自2005年2月开始在公司工作,于2009年1<br />
月被任命为财务总监。<br />
Ellen Wei女士在一家大型的中国审计公司工<br />
作过10年,在安永会计师事务所工作过3年。<br />
在被任命为财务总监之前,她在明科矿业(<br />
中国)有限公司担任了四年首席财务官。
China<br />
Drilling at Linc Energy’s Chinchilla project in Australia. Gasifier infrastructure at Linc’s Queensland plant.<br />
Linc Energy and GCL in deal for UCG to GTL<br />
LINC Energy has agr eed to key commer cial<br />
terms with GCL Projects Limited, a subsidiary<br />
of Golden Concord Holdings (GCL-Poly), to<br />
form a joint venture to commercialize UCG (Underground<br />
Coal Gasification) to GTL (Gas to Liquids)<br />
in China with the first multi-gasifier<br />
project to begin construction within six months<br />
of completion of the formal binding legal agreements.<br />
GCL-Poly has interests in power generation,<br />
coal and poly-silicon production.<br />
Linc and GCL have agreed to cooperate via<br />
an incorporated JV in the utilization of the<br />
world-leading UCG to GTL pr ocess Linc has<br />
developed over the past five years at its Chinchilla<br />
site in Queensland, Australia. Linc also<br />
owns the world’s only commercial UCG operation,<br />
Yerostigaz, in Uzbekistan.<br />
Linc will hold 33% of the JV and GCL 67%.<br />
GCL will provide US$15 million in working capital<br />
to the JV in thr ee equal instalments over<br />
Linc Energy与保利协鑫合作发展UCG制合<br />
成油项目<br />
LINC 能源公司已经与保利 协 鑫(GCL-<br />
Poly)旗下子公司GCL项目有限公司达成关<br />
键商业条款,双方将成立一家合资公司,在<br />
中国发展煤炭地下气化(UCG)生产天然<br />
气合成油(GTL)的商业项目。第一个多功<br />
能气化项目将在签署有法律约束力的正式协<br />
议后六个月内开始建设。保利协鑫在发电、<br />
煤炭和多晶硅产品方面都有投资。<br />
Linc公司和保利 协 鑫 已 达 成协议,通<br />
过一家合资股份有限公司合作利用Linc公<br />
司的UCG生产GTL工艺。Linc公司在过去<br />
的 五 年 时间里在 澳 大 利 亚 昆 士 兰州的<br />
Chinchilla矿区开发的这一生产工艺居于<br />
世界领先水平。该公司在乌兹别克斯坦的<br />
Yerostigaz工厂是世界上唯一一个商业化<br />
UCG项目。<br />
Linc公司和保利协鑫在合资公司中持有股<br />
20 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
the first three years. GCL also has an obligation<br />
to principally arrange CAPEX funding of commercial<br />
projects the JV undertakes in China via<br />
debt and other structures.<br />
Linc will grant an exclusive licence to the JV<br />
for use of its UCG and GTL intellectual property<br />
in China. GCL will provide US$5 million of working<br />
capital to begin site selection and engineering.<br />
Linc will complete the site selection and<br />
majority of the engineering, commencing with<br />
a commercial UCG gas facility consisting of initially<br />
four commercial size UCG gasifiers working<br />
in parallel. GCL has also agr eed to<br />
subscribe Aus$120 million for an approximate<br />
5% interest in Linc Energy. It has agr eed to<br />
subscribe to a first tranche Aus$60 million placement<br />
on execution of the JV contract suite<br />
for 2.5% of Linc’s issued stock.<br />
Linc’s chief executive of ficer Peter Bond<br />
says, “I am very pleased that we have reached<br />
份分别为33%和67%。保利协鑫将在前三年<br />
时间内以等额形式分三期向合资公司提供共<br />
1500万美元的流动资金。此外,保利协鑫<br />
还有义务作为主要发起人为合资公司在中国<br />
推行的商业项目通过债务或其他融资结构安<br />
排基建费用融资。<br />
Linc公司将为该合资公司颁发独家许可<br />
证,保证其在中国使用Linc公司拥有的UCG<br />
生产GTL的知识产权。保利协鑫将提供500<br />
万美元的流动资金,用来启动项目选址和设<br />
计。Linc公司将完成项目选址和大部分的设<br />
计工作,开始建造一个商业化UCG天然气<br />
设施,它最初包括四个并行的工业规模的<br />
UCG气化炉。<br />
保利协鑫同意以1.2亿澳元收购Linc 能源<br />
公司大约5%的股份。它还同意将在合资公<br />
司合同 签署生效后以第一笔6000万澳元的<br />
金额承购Linc定向增发的股份,这批股份将<br />
占Linc已发行股份的2.5%。<br />
An aerial view of Linc Energy’s plant at Chinchilla in<br />
Queensland, Australia.<br />
agreement on the commercial terms with GCL.<br />
We have been working tirelessly on our options<br />
into China over many months, having long<br />
identified China as a key market for Linc Energy’s<br />
UCG expertise and our GTL operational<br />
excellence and know how. China’s insatiable<br />
appetite for liquid fuels and gas pr esents Linc<br />
Energy and GCL with a unique opportunity to<br />
capitalize on this world changing market.”<br />
“Linc Energy chose GCL as its partner in<br />
China for a variety of reasons, starting with my<br />
relationship and respect for the chairman of<br />
GCL Poly, Gongshan Zhu, but also particularly<br />
because of GCL’s entrepreneurial nature, its<br />
strong financial position, its pr oven ability to<br />
execute large projects in a fast and cost effective<br />
manner and its history of protecting its own<br />
world-leading intellectual property. GCL is a<br />
solar energy developer, and the largest poly silicon<br />
manufacturer in the world.”<br />
Linc公司首席执行官Peter Bond说:“我<br />
很高兴我们和保利协鑫达成了商业条款。<br />
我们早就认识到,对 于 Linc Energy公<br />
司拥有的UCG专业知识和GTL的完美运行<br />
和技能来说,中国是个关键的市场。中国<br />
对于液体燃料和天然气的无穷需求为Linc<br />
能源和保利协鑫提供了一个独特的机会,<br />
可以让他们利用这个正在改变着世界的市<br />
场。”<br />
“Linc 能源选择保利协鑫作为在中国的<br />
合作伙伴,其中有多方面的原因。最初是<br />
由于我与保利协鑫董事长朱共山先生之间<br />
的关系以及我对他的敬意,当然同样重要<br />
的原因是保利协鑫所具有的创业精神和强<br />
势的财务状况,它快速高效益地实施大型<br />
项目的能力已得到证明,一贯以来成功地<br />
保护了其自身的全球领先的知识产权。保<br />
利协鑫是太阳能开发商,同时也是全世界<br />
最大的多晶硅生产商。”
China<br />
Drilling identifies further Jinfeng gold resources<br />
EXPLORATION drilling at Eldorado Gold’ s<br />
operating Jinfeng project in Guizhou province<br />
continues to identify further gold resources at<br />
the mine site and on surrounding exploration<br />
licences. Jinfeng is one of the company’ s<br />
three operating pr ojects in China with a<br />
fourth, Eastern Dragon, under construction.<br />
<strong>The</strong> drilling is being carried out within the Jinfeng<br />
mining licence, on the surr ounding Jinfeng<br />
42 exploration licences, and on both the<br />
An open pit at Eldorado Gold’s Jinfeng project in Guizhou province.<br />
Jinluo and Jindu joint venture project areas.<br />
At the mine site, 17 underground holes for<br />
4300 metres and 8 surface holes for 4200<br />
metres were completed earlier this year, primarily<br />
testing targets along the mineralized<br />
F2, F3 and F6 faults. Notable r esults included<br />
intersections of 20 metr es @ 2.13<br />
锦丰实施的钻探查明了更多的黄金资源<br />
埃尔拉多黄金公司对其位于贵州省的锦丰项<br />
目实施的钻探作业继续在该矿区和周围的勘<br />
探许可区域查明更多的黄金资源。锦丰是公<br />
司位于中国的三大运营项目之一,处在建设<br />
中的东龙是公司的第四个项目。<br />
钻探作业正在锦丰采矿证区域、周围的锦<br />
丰42个勘探执照区域以及锦罗和锦都合资<br />
项目区域实施。<br />
今年早些时候在矿区共完成了17个井下钻<br />
孔共计4300米和8个地表钻空共计4200米,<br />
主要测试沿矿化的F2、F3和F6断层的靶区。<br />
显著的矿段包括:20米矿段金品位2.13克/<br />
吨,34米矿段金品位1.88克/吨,52.5米矿段<br />
22 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
grams/tonne gold, 34 metr es @ 1.88<br />
grams/tonne and 52.5 metr es @ 5.6<br />
grams/tonne, all from the F3 fault; and 12<br />
metres @ 19.8 grams/tonne fr om a linking<br />
structure between F3 and a deeper , subparallel<br />
fault. On the surrounding Jinfeng 42<br />
exploration concessions, 12 drill holes for<br />
3700 metres were completed on the Lintan<br />
and Yaojiatan prospects, primarily targeting<br />
mineralized fault zones.<br />
Exploration has also been carried out at the<br />
Tanjianshan project in Qinghai province. <strong>The</strong>re<br />
were 39 drill holes completed for 2966 metres<br />
from the floor of the Jinlonggou pit, targeting<br />
blocks of inferred mineral resources lying below<br />
the current design pit. <strong>The</strong> holes did not identify<br />
any significant new zones of mineralization.<br />
5.6克/吨,以上矿段均来自F3断层;12米矿<br />
段金品位19.8克/吨,来自F3与一个更深的、<br />
近似平行的断层之间的连接构造。<br />
在周围的锦丰42个勘探执照区域,12个钻<br />
孔共计3700米的钻探作业在林滩和姚家滩<br />
矿区完成,主要针对矿化断层区域。<br />
青海省的滩间山项目也实施了钻探作业。<br />
金龙沟矿坑底部共完成了39个钻探,共计<br />
2966米,主要针对当前设计矿坑以下的推<br />
断资源量区块。这些钻孔未发现任何显著的<br />
新矿化区域。<br />
冬季的天气和许可批准的延迟使东龙项<br />
目 建设工作停止。 待收到项目许可批 准<br />
(PPA),埃尔拉多期望建设工作在第二季度<br />
<strong>The</strong> winter season and permitting delays saw<br />
construction halted at the Eastern Dragon project.<br />
Pending receipt of the Project Permit Approval<br />
(PPA), Eldorado expected construction<br />
to resume during the second quarter.<br />
Gold production at the Tanjianshan operation<br />
has remained steady year-over-year,<br />
with higher tonnes and grade of fsetting<br />
lower contribution from the Qinlongtan concentrate<br />
tailings impoundment. At Jinfeng<br />
mining of the bottom of<br />
the pit was expected to<br />
be completed during the<br />
second quarter after<br />
which waste stripping for<br />
the cutback was to commence.<br />
At White Mountain<br />
the grade of or e<br />
being mined is consistent<br />
with the mine plan and<br />
recoveries have incr eased<br />
as a r esult of the<br />
construction of a caustic<br />
pre-treatment system in<br />
the second half of 2011.<br />
<strong>The</strong> addition of production<br />
from Eastern Dragon<br />
will contribute to Eldorado’s<br />
plan to expand gold<br />
production by about<br />
160% over the next five years. Most of this<br />
growth is expected to come from new projects<br />
in Gr eece and Romania. Company<br />
president and CEO Paul Wright says the expansion<br />
plan will make Eldorado one of the<br />
fastest growing emerging senior gold pr oducers<br />
globally.<br />
重新启动。<br />
滩间山项目的黄金产量与上年同期相比保<br />
持稳定,较高的吨位数和品位与青龙滩精矿<br />
尾矿库的较低产出相抵消。在锦丰,矿坑的<br />
底部开采预计在第二季度完成,之后开始废<br />
石剥采工作。在白山,正在开采的矿石品位<br />
与开采计划一致,2011年下半年建造的碱<br />
液预处理系统提高了回收率。<br />
东龙产量的增加将推进埃尔拉多在未来五<br />
年黄金产量扩大约160%的计划。大部分的<br />
增长预计来自希腊和罗马尼亚的项目。公司<br />
总裁兼首席执行官Paul Wright称,扩产计划<br />
将使埃尔拉多成为全球发展最快的新兴高级<br />
黄金生产商之一。
China<br />
Improved zinc outlook for China Shen Zhou<br />
CHINA Shen Zhou Mining & Resour ces has<br />
brought its Xinjiang province zinc production<br />
back online following the winter season and,<br />
according to CEO Xiaojing Yu, will continue<br />
to improve its operational ef ficiency. <strong>The</strong><br />
company’s subsidiary, Xingzhen Mining Co,<br />
resumed ore processing in mid-April with the<br />
20,000 tonnes of or e accumulated during<br />
winter the first to be processed.<br />
Xingzhen primarily engages in zinc and copper<br />
exploration, mining and pr ocessing. Its<br />
processing plant was suspended due to the<br />
severe winter weather, making its operation<br />
uneconomical. However, its Keyinbulake Mine<br />
continued mining during this period r esulting<br />
in the stockpiling of 20,000 tonnes of zinc ore<br />
and copper ready for processing. Keyinbulake<br />
has recently started pr ocessing high-grade<br />
zinc ores and high-grade copper or es rather<br />
than only low-grade zinc ore as before.<br />
Commenting on the changing dynamics of<br />
the global zinc market, Xiaoyang Y u says,<br />
“Data and forecasts from industry authorities<br />
suggest that the global zinc market is tr ending<br />
toward a more balanced demand and<br />
supply relationship. An impr oving balance<br />
between the global demand and supply is<br />
potentially positive for zinc price.”<br />
She points out that global demand for refined<br />
zinc grew 2.2% to 12.85 million tonnes<br />
in 2011 and is for ecast by the ILZSG (International<br />
Lead and Zinc Study Group) to grow<br />
by 3.9% to 13.35 million tonnes in 2012.<br />
At the same time, global production of refined<br />
zinc increased 2.7% to 13.16 million ton-<br />
中国神舟矿业公司提升了对锌矿生产的预期<br />
中国神舟矿业资源股份有限公司位于新疆省<br />
的锌矿生产已经在冬休期过后重新启动,另<br />
外,据公司首席执行官于晓静称,公司将<br />
继续提高其运营效率。神舟矿业的子公司星<br />
振矿业公司于3-4月份期间重新启动矿石加<br />
工业务,冬季积累的2万吨矿石将被首先处<br />
理。<br />
星振主要从 事 锌和铜的勘探、开采和<br />
加工业务。其加工厂之前曾因冬季天气恶<br />
劣、运营效率低而中止。但是,公司旗下<br />
的克因布拉克矿在此期间持续开采,导致<br />
待处理的锌矿石和铜矿石堆积了2万吨。<br />
克因布拉克矿最近已经开始生产高品位的<br />
锌矿石和铜矿石,先前仅生产低品位的锌<br />
矿石。<br />
24 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
China Shen Zhou Mining & Resources has projects throughout China, including base metals in the far northwest.<br />
nes in 2011 and is projected to grow by 2.4%<br />
to 13.48 million tonnes in 2012. <strong>The</strong> surplus<br />
of refined zinc is expected to decr ease by<br />
more than 50% year -over-year to 135,000<br />
tonnes in 2012.<br />
Decline in the surplus has been attributed<br />
to the depletion of a number of large mines<br />
over the next several years.<br />
Among the mines to be shut down include<br />
the world’s largest zinc mine - Teck Resources’<br />
Red Dog Mine (600,000 tonnes/year) in<br />
对于全球锌金属市场不断变化的动态,于<br />
晓静称,“来自行业当局的数据和预测显示<br />
全球锌金属市场正在趋于一个更加平衡的供<br />
求关系。全球供求之间不断提升的平衡对于<br />
锌金属的价格有潜在的正面影响。”<br />
她指出,精炼锌的全球需求量在2011年<br />
增长了2.2%,达到1285万吨,国际铅锌研<br />
究组预测在2012年需求量将增长3.9%,达<br />
到1335万吨。同时,精炼锌的全球产量在<br />
2011年增长了2.7%, 达 到 1316万吨,<br />
预计在2012年将增长2.4%,达到1348万<br />
吨。精炼锌过剩量预计在2012年较上年同<br />
期相比将减少50%至13.5万吨。<br />
过剩量的减少归因于在未来几年许多大型<br />
矿山的枯竭。这些即将关闭的矿山包括世界<br />
最大的锌矿- Teck资源公司位于阿拉斯加州<br />
Alaska; the world’s second largest zinc mine<br />
– Minmetals’ Century Mine (500,000<br />
tonnes/year) in Australia, Xstrata Zinc’ s<br />
Brunswick Mine (240,000 tonnes/year) in Canada,<br />
Vedanta Resources’ Skorpion Mine<br />
(145,000 tonnes/year) in Namibia and other<br />
large mines in Canada, Ireland and Peru.<br />
Global zinc mine pr oduction remains<br />
below refined zinc output, with zinc mines<br />
forecast to grow by 4.8% to 13.37 million<br />
tonnes in 2012.<br />
的Red Dog矿(60万吨/年);世界第二大<br />
的锌矿-中国五矿集团位于澳大利亚的Century矿(50万吨/年),Xstrata锌业公司位于<br />
加 拿 大的Brunswick矿 ( 24万吨/年 ) ,<br />
Vedanta资源公司位于纳米比亚的Skorpion<br />
矿(14.5万吨/年)以及其他一些位于加拿<br />
大、爱尔兰和秘鲁的大型矿山。<br />
全球锌矿产量仍低于精炼锌产量,锌矿预<br />
计在2012年增长4.8%,达到1337万吨。<br />
除了新疆的锌铜矿运营,神舟矿业还在<br />
内蒙古的苏莫查干敖包区域从事矿石的开<br />
采和加工;在贵州省务川县从事萤石和重<br />
晶石的开采和加工;在贵州省的沿河县从<br />
事萤石和重晶石的开采和加工;在安徽省<br />
旌德县从事萤石的开采和加工;在内蒙古<br />
的乌拉特后旗从事锌/铜/铅矿石的加工。
Mongolia<br />
Study confirms Ovoot is financially robust<br />
A PRE-FEASIBILITY study (PFS) for Aspir e<br />
Mining’s Ovoot Coking Coal Pr oject in northern<br />
Mongolia confirms that it is financial robust<br />
as well as technically and commercially<br />
feasible. <strong>The</strong> PFS used r ecently modelled<br />
open pit probably coal reserves of 178 million<br />
tonnes, which categorized Ovoot as the third<br />
largest coking coal deposit in Mongolia, by<br />
reserves. Aspire to date has only explor ed<br />
20% of the Ovoot Basin.<br />
<strong>The</strong> PFS is based on a large open pit mine<br />
annually delivering up to 15 million tonnes of<br />
raw coal to coal handling and pr eparation<br />
plants over a 15 year life of mine (LOM), pro-<br />
Aspire’s projects in northern Mongolia and the existing and proposed rail infrastructure.<br />
NEW ASX-listed Mongolian explorer Eumerella<br />
Resources is initially focusing on tungsten exploration<br />
at its licence in northeast Mongolia<br />
but is also seeking other commodities at this<br />
target. <strong>The</strong> Western Australia-based company<br />
is also seeking other projects in the mineral-rich<br />
country. Eumerella was admitted to the official<br />
list of the ASX on May 3 after raising ar ound<br />
Aus$3.5 million in its initial public of fering. It is<br />
focused on the acquisition and exploration of<br />
mining projects in Mongolia.<br />
Through its wholly-owned subsidiary, Eumeralla<br />
Resources Pte Ltd, the company has<br />
interests in Centreville LLC, which holds a<br />
26 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
ducing 153 million tonnes of high quality coking<br />
coal. <strong>The</strong> attractive economics ar e<br />
driven by LOM 82% average conversion rate<br />
of ROM tonnes to pr oduct together with a<br />
low LOM strip ratio of 7.6bcm of waste per<br />
ROM tonne of coal including pre-strip.<br />
Aspire says mine life and the quantity of<br />
marketable coking coal can be incr eased<br />
through further geotechnical and infill drilling,<br />
underground mining studies and ongoing exploration.<br />
<strong>The</strong> PFS defines a two stage pr oduction<br />
profile for the project over an initial<br />
mine life of 15 years. Stage 1 involves annual<br />
production of 6 million tonnes of saleable coal<br />
Initial Eumerella focus is on tungsten<br />
granted minerals exploration licence. During<br />
the year ended December 31, 2011, it acquired<br />
the Ovoot licence in northeast Mongolia<br />
from Centreville LLC. Eumeralla then acquired<br />
Centreville on December 31, 2011.<br />
Eumeralla’s licence covers 12,657 hectares<br />
and includes the historical Chuluun Khor oot<br />
tungsten mine which was active between<br />
1945 and 1955. <strong>The</strong> licence is about 20km<br />
north of the town of Dashbalbar and 85km<br />
northwest of the Solowevsk-Choibalsan railway.<br />
Previous exploration at the pr oject has<br />
defined tungsten targets, but follow-up exploration<br />
has been limited.<br />
delivered by 191km sealed r oad to the new<br />
railhead at Moron before being transported<br />
to end markets from 2016. Stage 2 involves<br />
annual production of up to 12 million tonnes<br />
of saleable coal delivered by rail from Ovoot<br />
to Erdenet before being transported to end<br />
markets from 2018.<br />
<strong>The</strong> staged development will de-risk the production<br />
ramp-up and enable stage 1 operational<br />
cashflows to underpin a futur e rail spur<br />
line connection from Ovoot to link up with the<br />
multi-user rail line at Moron. Ovoot will generate<br />
substantial cashflows based on its competitive<br />
average LOM operating cost of<br />
US$118 per tonne. Aspire assumes its coking<br />
coal will be sold on a 50/50 basis FOB at Russian<br />
Far East Ports and at the Chinese border.<br />
Using long term applicable coking coal price<br />
estimates of US$200/tonne, a LOM EBITDA<br />
of US$68 per tonne is achieved.<br />
Northern Railways LLC, a special purpose<br />
infrastructure company owned by Aspire, is responsible<br />
for delivering the Erdenet to Moron<br />
multi-user rail line to underpin stage 1 production.<br />
This rail line has an estimated capex of<br />
US$1.1 billion (plus contingency). Ovoot operating<br />
cost assumptions assume rail tariffs on<br />
this line sufficient to support attractive financial<br />
returns to Northern Railways.<br />
Aspire’s managing director David Paull says,<br />
“Aspire is ideally placed to be the leader in unlocking<br />
the emerging northern Mongolian coal<br />
province. <strong>The</strong> positive PFS underpins our vision<br />
of developing a large-scale coking coal<br />
mine and associated rail infrastructure.”<br />
Eumeralla plans to focus initially on tungsten<br />
exploration, planning a geological mapping<br />
and surface sampling program followed<br />
by geophysical surveys and air core and reverse<br />
circulation drilling to test the anomalies.<br />
<strong>The</strong> aim of this work is to evaluate the tungsten<br />
potential of Chuluun Khoroot, as well as<br />
exploring adjacent areas of mineralization within<br />
the Ovoot licence. Other commodities<br />
could be targeted at the project in the future.<br />
<strong>The</strong> Perth-based company has budgeted<br />
exploration expenditure of $1.13 million in<br />
its first year and another $1.03 million in the<br />
second year.
THE completion of data logging from the final<br />
drill holes of the phase one exploration pr ogram<br />
has prompted Draig Resources to claim<br />
that says its Teeg licence in central-souther n<br />
Mongolia shows great promise. <strong>The</strong> company<br />
intersected coal in 18 holes during the pr ogram<br />
which was completed at the end of April.<br />
A series of steeply dipping coal seam intersections<br />
were logged at shallow depths of<br />
less than 175 metres along a north-west trending<br />
strike length. <strong>The</strong>se intersections are at<br />
open pit mineable levels.<br />
<strong>The</strong> 6000 metre program was conducted<br />
solely on Teeg, which sits within Draig’s parcel<br />
of Ovorhangay licences in this coal-rich<br />
area of Mongolia. Draig owns eight coal exploration<br />
licences in Mongolia, four in Ovor -<br />
hangay province and another four in the<br />
South Gobi province further to the south, not<br />
far from the Chinese border. It acquired the<br />
Teeg coal licence shows ‘great promise’<br />
<strong>The</strong> extremes facing Draig Resources in its drilling program at the Teeg licence in central-southern Mongolia.<br />
XANADU Mines intends to acquir e the Oyut<br />
Ulaan Copper/Gold Project in the South Gobi<br />
region through the purchase of Temujiin Mining’s<br />
wholly-owned subsidiary Vantage LLC.<br />
<strong>The</strong> ASX-listed company has executed a<br />
terms sheet with Temujiin, which is a private<br />
Canadian company.<br />
Upon completion of a satisfactory due diligence<br />
and conditional on Temujiin shareholder<br />
approval, Xanadu will negotiate a<br />
definitive agreement to purchase Oyut Ulaan.<br />
Once definitive documentation is finalized and<br />
a mining licence issued, which will ear n Xanadu<br />
an initial 25% inter est, the Board will<br />
propose purchase of the remaining 75% be<br />
approved at a general meeting of shar ehol-<br />
licences in late 2011 through BDBL LLC, previously<br />
a subsidiary of Peabody-Winsway.<br />
<strong>The</strong> collated data from the 6000 metre program<br />
showed that among the best coal<br />
seams intersected were those with apparent<br />
seam thicknesses of 86.28 metr es, 66.75<br />
metres, 37.8 metres and 36.12 metres. <strong>The</strong><br />
86.28 metre intersection extended from 27<br />
metres to 146 metres.<br />
<strong>The</strong> ASX-listed company has been undertaking<br />
resource modelling to determine the<br />
structure of the licence and anticipated completing<br />
a maiden JORC-compliant estimate<br />
for Teeg by the end of June. Coal quality and<br />
petrographic testing is continuing at ALS laboratories<br />
in Mongolia and Australia. Draig’s<br />
managing director Mark Earley says, “I’m extremely<br />
pleased with the progress we made<br />
in the tough operating conditions imposed by<br />
the harsh Mongolian winter-spring period.<br />
ders. This process is expected to be completed<br />
during the current quarter.<br />
Oyut Ulaan comprises a tenement package<br />
of 120sqkm and is about 275km northeast of<br />
the Oyu Tolgoi mine and 60km west of the industrial<br />
centre of Sainshand and the main<br />
Trans-Mongolian Railway. It was explored by<br />
Mongolian and Russian geologists in the<br />
1960s and worked on by Ivanhoe Mines from<br />
2001 to 2009. Ivanhoe rationalized its extensive<br />
copper porphyry exploration licences in<br />
the region after it decided to concentrate solely<br />
on the Oyu T olgoi project, resulting in the<br />
transfer of ownership to Temujiin.<br />
Extensive geophysical, tr enching and drill<br />
data has been compiled by pr evious owners<br />
Mongolia<br />
“All the coal we inter cepted was relatively<br />
shallow and definitely at open pit mineable levels.<br />
I think the Teeg licence shows great promise<br />
based on the drilling we have done to<br />
date. Our aim is to complement these results<br />
with the drilling to be undertaken during the<br />
phase two program, which will include the<br />
South Gobi licences.”<br />
<strong>The</strong> company plans to begin the phase two<br />
program later in the year. As well as including<br />
the South Gobi licences, the program is likely<br />
to also include further exploration at T eeg<br />
with some additional exploration also expected<br />
to be undertaken on the neighbouring<br />
Nariin Teeg licence, building on a geophysics<br />
survey completed over the licence in February<br />
2012. Draig has completed the establishment<br />
of its Mongolian of fice and has<br />
appointed Terrence Thompson as the Mongolian-based<br />
general manager.<br />
Xanadu eyes off new copper/gold project<br />
which Xanadu is interr ogating. Successful<br />
completion of this acquisition will further consolidate<br />
the company’s copper and gold asset<br />
portfolio in the South East Gobi region, which<br />
should benefit from the near-term rail infrastructure<br />
planned for the area.<br />
Consideration of the acquisition includes issuing<br />
3.95 million new shar es and Aus$4.25<br />
million of shares based on a price equal to the<br />
15 day VWAP as calculated on the day of the<br />
general meeting. An additional 15 million shares<br />
will also be issued to Temujiin upon Xanadu<br />
defining a JORC-compliant r esource over a<br />
mineable area of at least 90 million tonnes at<br />
an average 1% copper equivalent and subject<br />
to a favourable pre-feasibility or scoping study.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 27
Indonesia<br />
Sorowako nickel furnaces back on line<br />
INDONESIAN publicly-listed mining company<br />
PT Vale, formerly PT Inter national Nickel Indonesia,<br />
has restarted two furnaces damaged<br />
during an incident at its Sorowako Nickel<br />
Project in South Sulawesi in 2011. <strong>The</strong> repair<br />
and upgrades of the two fur naces were necessary<br />
due to the incident which involved a<br />
group of people claiming to represent the interests<br />
of local residents.<br />
<strong>The</strong> angry protesters captured Vale workers,<br />
blocked strategic roads in the city and<br />
called for compensation for the loss of agricultural<br />
land they claimed was flooded during<br />
the power plant’s construction. It is not<br />
clear how the furnaces were damaged during<br />
the incident.<br />
<strong>The</strong> company says it used the situation to<br />
bring forward planned maintenance on the<br />
28 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
furnaces by 12 months, and perform upgrades<br />
on the equipment. This r esulted in an<br />
11% reduction in production of nickel matte.<br />
“We turned the power on for furnace number<br />
2 in April and this fur nace is now in full pr oduction<br />
with 20% higher capacity,” finance director<br />
Fabio Bechara said.<br />
<strong>The</strong> company finally reached a settlement<br />
with local residents in February and is for ecast<br />
to produce about 72,000 tonnes of nikkel<br />
matte this calendar year , down fr om<br />
2010’s high of 76,000 tonnes but higher than<br />
the 66.9 million tonnes produced in 2011.<br />
“We are still on track for what we have<br />
planned, although the r esult of the first<br />
quarter was low. Because we concentrated<br />
all the shutdowns in the first quarter , we<br />
hope that we will r ecover and our produc-<br />
Martabe production start is imminent<br />
PROGRESS at G-Resources’ Martabe goldsilver<br />
project is tracking well, with several major<br />
milestones reached in preparation for first gold<br />
<strong>The</strong> location of prospects and deposits at G-Resources<br />
Martabe project in North Sumatra.<br />
production to begin in July. It hosts a resource<br />
base of 7.86 million ounces of gold and 73.48<br />
million ounces of silver with production to start<br />
at an annual rate 250,000 ounces of gold and<br />
2-3 million ounces of silver.<br />
<strong>The</strong> tailings storage facility wall is complete<br />
and ready for project start up after wet weather<br />
caused delays in April, a permanent<br />
power supply has been connected to the<br />
processing plant and a temporary power facility<br />
has been installed and commissioned.<br />
Conveyors and belting have been installed,<br />
water commissioning in the pr ocessing plant<br />
has commenced and the SAG and ball or e<br />
grinding mills ar e technically complete. An<br />
assay laboratory is also functioning and already<br />
providing analysis of grade contr ol samples<br />
and will be analysing pr ocess plant samples<br />
once commissioning on ore commences.<br />
<strong>The</strong> flagship $678 million Martabe project is<br />
on the western side of Sumatra in the Batangtoru<br />
sub-district of North Sumatra province. A<br />
contract of works (COW) for the 1639sqkm<br />
project was signed between G-Resources and<br />
the Indonesian gover nment in 1997. G-Resources’<br />
chief executive of ficer Peter Albert<br />
says Martabe is set to become the core asset<br />
on which the company will base a globally<br />
competitive Asia-Pacific focused gold business.<br />
“G-Resources is seeking to gr ow gold<br />
production to more than one million ounces<br />
annually through exploration success on the<br />
large and highly prospective COW area.”<br />
Of the total capital spend of $678 million,<br />
tion will return to predicted levels,” said Vale<br />
president Nicolaas Kanter.<br />
PT Vale is 58.73% owned by V ale Canada,<br />
20.09% by Sumitomo Metal Mining<br />
and 21.18% by the public.<br />
<strong>The</strong> company is allocating $150 million for<br />
capital expenditures this year to support studies<br />
for development plans. V ale hopes to<br />
ramp up production capacity to 120,000 tonnes<br />
of nickel matte by 2017, or almost 10%<br />
of the world’s nickel supply. However, the<br />
company needs about $2 billion to support<br />
capacity upgrades in order to reach its production<br />
goals in coming years. Fabio Bechara<br />
says the company has allocated US$150 million<br />
for capital expenditure during 2012.<br />
Vale’s current production accounts for<br />
about 5% of global nickel supply.<br />
$542 million was incurred by late May with a<br />
further $136 million to be spent prior to pr oduction<br />
in July and a further $21 million falling<br />
into the post-production period.<br />
A 24-hour mining operation is already under<br />
way and has stockpiled 150,000 tonnes of<br />
ore ready for the start-up of processing operations.<br />
Training and r ecruitment of employees<br />
at the pr ocessing operations and<br />
within the maintenance team is continuing in<br />
readiness for the first production.<br />
Drilling activities are also continuing at the<br />
project’s Tor Uluala North and Horas Barat<br />
deposits. <strong>The</strong> company is preparing for initial<br />
drill holes at Tani Hill to confirm a potential buried<br />
porphyry system and at Golf Mike targeting<br />
near surface gold mineralization which<br />
outcrops as a 600 metre x 1200 metre zone<br />
of advanced alteration with surface rock samples<br />
returning up to 12.2 grams/tonne gold.<br />
Best recent results from a target west of the<br />
Horas deposit include 25 metr es @ 2.3<br />
grams/tonne gold and 2 grams/tonne silver<br />
and 25.8 metres @ 1.31 grams/tonne gold<br />
and 1 gram/tonne silver.<br />
At the Gambi Kapur target south of Golf<br />
Mike, 14 diamond drill holes have been completed<br />
with best results including 31 metres<br />
@ 2.3 grams/tonne gold and 6.4 metr es @<br />
1.2 grams/tonne gold.
TWO Chinese companies have signed contracts<br />
worth US$200 million with Bracken International<br />
Mining for of ftake from the Big<br />
George manganese mine in West Timor. <strong>The</strong><br />
agreements will see Shandong Coking Coal<br />
and Sanit Corporation supplied with 30,000<br />
tonnes of manganese each per month,<br />
through the Kupang port. <strong>The</strong> significant<br />
sales will put the company in a positive cash<br />
position in the final quarter of 2012.<br />
Production at the mine is scheduled to<br />
begin in the third quarter of this year once a<br />
new ship loader has arrived at the port. Tests<br />
have confirmed the average manganese content<br />
is between 50% and 68%. Inter national<br />
logistics specialist Qingdao Newsky Energy<br />
Investments will manage the product.<br />
Bracken’s executive chairman Luke Brakken<br />
says, “I am exceptionally excited about<br />
the latest developments for the company. We<br />
are entering a new phase where we will have<br />
solid cash flow and will be making a profit by<br />
the end of the year. To have two such highly<br />
regarded companies buying our ore is testament<br />
to the quality of our pr oduct and our<br />
ability to deliver on schedule. <strong>The</strong> Big George<br />
West Timor mine is ready to produce and we<br />
are full steam ahead with the development<br />
and construction of our smelter at Kupang.”<br />
Bracken is in negotiations with construction<br />
companies for the design and build of the<br />
manganese smelter at the pr oject, which is<br />
35km from Kupang port. Construction of the<br />
smelter is on track to begin by June 2013.<br />
ALTURA Mining has more than doubled its<br />
tenure holdings in Indonesia’s South Kalimantan<br />
by acquiring two additional mining per -<br />
mits alongside its flagship T abalong coal<br />
project. <strong>The</strong> acquisition brings Altura’s holdings<br />
to 17,000 hectares of high value coal<br />
targets in the region, with an 80% shar e of<br />
each project secured by the company.<br />
After shareholder approval and due diligence<br />
on the new projects the expanded Tabalong<br />
project will comprise five mining permits. This<br />
latest acquisition move comes just weeks after<br />
Altura acquired another neighbouring mining<br />
permit which expanded the Tabalong site by<br />
3250 hectares. On completion of the acquisi-<br />
Bracken signs manganese offtake deals<br />
<strong>The</strong> 8206 hectare Big George project is one<br />
of the company’s six mine licences in W est<br />
Timor, which host a combined r eserve of<br />
more than 300 million tonnes. Bracken has<br />
all mining approvals as well as full gover nment<br />
and community support.<br />
<strong>The</strong> Queensland-based company has<br />
made a number of major strategic decisions<br />
recently in a bid to diversify its assets. It has<br />
migrated onto the open market board of the<br />
Frankfurt Stock Exchange and signed a 150<br />
million stock placement with private Australian<br />
resource company, In <strong>Miner</strong>als. This deal<br />
will result in an Aus$17 million cash and mining<br />
equipment payment as well as In Mine-<br />
tion, the expanded Tabalong Coal Project JV<br />
will comprise five IUPs.<br />
Tabalong is the company’s advanced coal<br />
project which is awaiting mining appr oval<br />
with production to then be fast-tracked for<br />
operations to commence later this year. <strong>The</strong><br />
operation will consist of a surface mining<br />
and benefiting product delivering it to an oftake<br />
depot on the Barito River, about 100km<br />
west of the mine site.<br />
<strong>The</strong> project covers 63sqkm in the T anjung<br />
formation, which is known for its high energy ,<br />
low ash and medium sulphur coal seams. This<br />
region has been the target of intense coal exploration,<br />
with several high grade coking and<br />
Indonesia<br />
rals’ tungsten ore mining rights in Queensland,<br />
which boasts an inferred resource in excess<br />
of 1 billion tonnes. Luke Bracken says<br />
Bracken’s migration to the open market is the<br />
next step towards production. “I am very excited,<br />
we are making progress and moving<br />
Representatives of Bracken International Mining with Chinese officials at the signing of offtake agreements for<br />
manganese from West Timor.<br />
upwards and onwards to become an efficient<br />
market supplier of high-grade manganese<br />
ore. I am ecstatic at completing the deal with<br />
In <strong>Miner</strong>als ahead of schedule to diversify<br />
Bracken International Mining beyond Indonesia<br />
and beyond manganese.”<br />
<strong>The</strong> company has also opened two new regional<br />
offices – one in Jakarta, Indonesia and<br />
the other in Qingdao, China.<br />
Altura acquires additional coal permits<br />
high energy thermal coal deposits identified.<br />
Altura says Tabalong’s location lends itself<br />
to the satellite development of other mining<br />
permits that have the potential to be operated<br />
simultaneously to provide increased tonnages<br />
as well as blended coal pr oducts. <strong>The</strong><br />
company says its latest acquisitions could be<br />
amalgamated into the development.<br />
Tabalong has a JORC-compliant r esource<br />
of 13.4 million tonnes of high grade thermal<br />
coal, however Altura is aiming to increase the<br />
resource during its next phase of exploration.<br />
<strong>The</strong> initial operation is expected to annually<br />
produce up to 400,000 tonnes and ramp up<br />
to 740,000 tonnes.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 29
Indonesia<br />
Challenger Deep MoU for thermal coal marketing<br />
Challenger Deep Resources’ Tabang Coal Project is in East Kalimantan, close to infrastructure.<br />
CHALLENGER Deep Resources has signed<br />
a Memorandum of Understanding (MoU) with<br />
an Indonesian marketing company to pr omote<br />
thermal coal from its Tabang project to<br />
the domestic market. <strong>The</strong> MoU will see Challenger<br />
and PT Surya Dinamike Letsari (SDL)<br />
develop a marketing plan for the East Kalimantan<br />
project and negotiate formal coal<br />
sales ahead of production start-up in 2013.<br />
SDL will secure domestic buyers for the<br />
coal and advise Challenger on the best pri-<br />
CANADIAN exploration company Souther n<br />
Arc <strong>Miner</strong>als has increased its share in two<br />
Indonesian projects to 90%. <strong>The</strong> company<br />
acquired an extra 5% inter est in both the<br />
West Lombok and West Sumbawa (Taliwang)<br />
projects and has entered into a cooperation<br />
agreement with the Regency of W est Sumbawa<br />
to ensure collaboration on the Taliwang<br />
project. Southern Arc will pay its Indonesian<br />
partner PT Permata Puri Mega US$1.5 million<br />
and 2.25 million shares for the additional interest<br />
in both projects.<br />
Southern Arc’s president Dr Mike Andrews<br />
says, “Recognizing the geological potential of<br />
the West Lombok and Taliwang projects, we<br />
have increased our interest to 90% and secured<br />
the support of the local government at<br />
30 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
cing parameters for different production scenarios<br />
associated with Tabang. <strong>The</strong> company’s<br />
established domestic customers include<br />
PT Perusahaan Listik Negara, which owns<br />
dozens of coal-fired power stations.<br />
Challenger is developing the 2900 hectare<br />
Tabang project in three phases, starting with<br />
the construction of a short-haul road and jetty<br />
facility on the Belayan River for pr oduction<br />
from the ATRP property. <strong>The</strong> next phases will<br />
add infrastructure and development of the<br />
Southern Arc increases interest in projects<br />
both projects as a 10% equity partner . This<br />
emphasizes our vision of the gr eat potential<br />
for both epithermal gold and copper -gold<br />
porphyry mineralization at both projects.”<br />
<strong>The</strong> West Lombok pr oject covers a<br />
21sqkm structural corridor of mineralization<br />
and alteration hosting porphyry copper-gold,<br />
high sulphidation gold-copper and epithermal<br />
gold deposits. Two of the prospects on the<br />
property host a combined pr oven strike<br />
length of more than 21km of mineralized epithermal<br />
breccias. Southern Arc has completed<br />
more than 22,000 metr es of drilling<br />
focused on the epithermal gold mineralization,<br />
confirming high-grade events and identifying<br />
several high-grade shoots. <strong>The</strong><br />
company has also completed an airbor ne<br />
Pelangi, CBM and IP properties.<br />
<strong>The</strong> company’s president Ranjeet Sundher<br />
says, “This MoU is an important first step in<br />
the sales planning component of the overall<br />
Tabang project development plan. This relationship<br />
is focused primarily on the lower heating<br />
value coal component of our project and<br />
on domestic consumption, which pr ovides<br />
the cornerstone of our initial development<br />
plan. Moving to this stage in the process also<br />
demonstrates our confidence in this pr oject<br />
and in our marketing partner, SDL.”<br />
Challenger has also determined that T abang<br />
has favourable coal economics for export<br />
to China and India, while supplying the<br />
increasing Indonesian domestic power market<br />
as the local economy grows.<br />
<strong>The</strong> Tabang coal pr oject comprises four<br />
properties in close proximity. ATRP and Pelangi,<br />
are under formal pur chase contracts<br />
while CBM and Inhuwa Purba (IP) ar e under<br />
exclusive MoUs. <strong>The</strong> pr oject takes in the<br />
highly prospective Balikpapan formation<br />
which is known to host large r esources of<br />
coal in the CV 4000-6000 Kcal/kg range.<br />
ATRP is the most advanced of the Tabang<br />
properties and is currently undergoing the mining<br />
permit application process. A feasibility<br />
study has been submitted to regulatory authorities<br />
and the envir onmental study is nearing<br />
completion. If both of these studies are<br />
approved, a mining permit may be issued in<br />
coming weeks.<br />
geophysical survey at 50-metre line spacings<br />
to define both near-surface and buried copper-gold<br />
porphyry targets, identifying 17 porphyry<br />
targets on the property.<br />
Earlier this year Souther n Arc initiated an<br />
exploration program to drill porphyry targets<br />
in the south of the property, in areas without<br />
forestry designation. Once the company r eceives<br />
the Pinjam Pakai permit it will resume<br />
full-scale exploration.<br />
Exploration activities on West Lombok in<br />
the first quarter of 2012 have focused on<br />
Pelangan and Mencanggah prospects. Drilling<br />
to date has confirmed the company’ s<br />
geological model and identified three highgrade<br />
shoots that will be explor ed further<br />
with the next phase of drilling.
Australia<br />
Spotted Quoll exceeds production expectations<br />
AN internal review of the initial performance<br />
of Western Areas’ Spotted Quoll under -<br />
ground operations in Western Australia has<br />
exceeded expectations, with the company’s<br />
production schedule boosted to 25,000 tonnes<br />
of nickel-in-concentrate for the 2011-<br />
2012 financial year.<br />
After seven consecutive quarters of consistent<br />
operational performance, Western Areas<br />
has also increased its total sales to 27,000 tonnes<br />
of nickel-in-concentrate for the 2012 financial<br />
year. A great portion of this total will come<br />
from the record sales of 8154 tonnes of nickel-<br />
in-concentrate in the March quarter. <strong>The</strong> company<br />
says the latter half of the financial year has<br />
performed 25% higher in sales than the first<br />
half, due to improved shipping logistics with reduced<br />
container turnaround time.<br />
Total mine production in the March quarter<br />
was 7602 tonnes of nickel-in-ore at an average<br />
Western Areas’ Flying Fox nickel mine is part of the Forrestania project in Western Australia.<br />
MINING finance and production services company<br />
Metals Finance has secured the services<br />
of US-based consultants <strong>The</strong> Dow Chemical<br />
Company to provide expertise as well as technical<br />
and process engineering for the use of<br />
separation technology at the Lucky Break nikkel<br />
project in Queensland. <strong>The</strong> project will be<br />
used as a pilot for identifying pr ocess improvements<br />
which may be applicable to the treatment<br />
of global nickel laterite projects.<br />
Dow’s business unit Dow Water & Process<br />
Solutions (DWPS) has agreed to provide engineering<br />
expertise for the ion exchange resin<br />
(IER) PLS separations technology at Lucky<br />
Break and other future lateritic nickel projects.<br />
DWPS global business development manager<br />
Yulee Newsome says the company is positive<br />
about developing value-cr eating<br />
solutions for the mining industry . “Dow is<br />
32 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
grade of 4.7%. Total nickel-in-concentrate from<br />
the mill was 6266 tonnes with an average r ecovery<br />
of 93%. Underground mine optimization<br />
studies continue for Spotted Quoll, with<br />
results expected soon. <strong>The</strong> company hopes to<br />
identify potential increases in annual mine pro-<br />
Lucky Break to pilot nickel technology<br />
committed to innovation and Dow continues<br />
this commitment by providing advanced IER<br />
PLS separation technology that allows our<br />
customers to develop answers for mining<br />
challenges while improving their bottom line.”<br />
Metals Finance says it is encouraged by the<br />
significant cost benefits that can be achieved<br />
by using Dow’s ion exchange resin technology<br />
compared with traditional means of<br />
metal recovery. “<strong>The</strong> technology is a key<br />
component in the novel flow sheet approach<br />
being taken by MFC to develop Lucky<br />
Break,” says managing dir ector Tony Treasure.<br />
“We are proud to team with Dow for enhanced<br />
development of metal r ecovery<br />
processes. This agreement is the first step in<br />
developing a long-term, strategic relationship<br />
between MFC and Dow.”<br />
<strong>The</strong> Lucky Br eak tenements, which ar e<br />
duction from a Life of Mine average of 10,000<br />
tonnes up to 15,000 tonnes.<br />
Spotted Quoll is 6km south of the company’s<br />
primary deposit within the Forr estania Nickel<br />
Project known as Flying Fox, which is 400km<br />
east of Perth. Western Areas’ managing director<br />
Dan Lougher says he is pleased to be able<br />
to confirm the company expects to r each record<br />
performance levels. “Our assets continue<br />
to perform well on the operational fr ont, our<br />
margins continue to be strong and we shortly<br />
expect to turn in our eighth consecutive quarter<br />
of consistent production results.<br />
“<strong>The</strong> quality of our assets allows us to r emain<br />
profitable throughout the nickel price<br />
cycle, and that remains true today. We continue<br />
to expect to meet our corporate goals<br />
and invest in futur e production upside<br />
through near mine exploration in Forrestania,<br />
further afield in Australia and through our Finnish<br />
and Canadian assets.”<br />
<strong>The</strong> company also completed the purchase<br />
of Kagara’s nickel assets for Aus$68 million<br />
which includes the high grade Lounge Lizard<br />
deposit and almost 300sqkm of exploration<br />
tenements at Forrestania.<br />
<strong>The</strong> open pit at Spotted Quoll was completed<br />
in February 2012, and has deliver ed<br />
28,502 tonnes of nickel-in-or e, which was<br />
well above the initial or e reserve estimate of<br />
19,900 tonnes.<br />
owned by Metallica <strong>Miner</strong>als, ar e west of<br />
Townsville. Metals Finance is determining the<br />
feasibility of operating the mine and associated<br />
processing plant and has already detailed the<br />
engineering requirements, secured sources for<br />
the equipment and is in negotiations to confirm<br />
funding. <strong>The</strong> company says it could be in full<br />
production within a year of receiving approval.<br />
Metals Finance develops mineral assets in<br />
partnership with other exploration and mining<br />
companies, using the experience of its executives,<br />
board and consultants on geologically<br />
defined r esources to establish<br />
appropriate treatment processes, to undertake<br />
detailed feasibility studies and to operate<br />
projects. It is currently working with two ASXlisted<br />
partners at Lucky Break in Queensland<br />
and Barnes Hill in Tasmania. <strong>The</strong> company is<br />
also seeking new opportunities.
TEN new targets will be drilled by White Clif f<br />
<strong>Miner</strong>als at its Lake Johnston and Lake Percy<br />
nickel projects in Western Australia. <strong>The</strong> Maggie<br />
Hays-style nickel sulphide targets wer e<br />
identified by a geophysical survey carried out<br />
by the company at Lake Johnston.<br />
<strong>The</strong> company says there are several targets<br />
that occur within ultramafic sequences<br />
on or near the basal contacts with sedimentary<br />
units at depths between 80 and 350<br />
metres, which is the most common position<br />
for nickel sulphides to accumulate. Diamond<br />
drilling is scheduled to begin at the<br />
targets, as none of them have been previously<br />
drill tested.<br />
Lake Johnston is about 480km east of Perth<br />
and is made up of 16 tenements over<br />
1416sqkm. Known mineralization across the<br />
project area includes nickel sulphides, high<br />
grade gold, copper rich volcanogenic sulphides<br />
and minor base metals. <strong>The</strong> pr oject has<br />
total widespread nickel mineralization greater<br />
than 0.5% and extensive potash mineralization<br />
in lake systems with natural brine solutions of<br />
up to 0.5% potassium.<br />
Previous drill results at the site include 8 metres<br />
@ 0.98% nickel sulphide and 18 metr es<br />
@ 0.43% nickel sulphide. Historical gold assays<br />
include 1 metr es @ 8.68 grams/tonne<br />
and 3 metres @ 1.72 grams/tonne.<br />
White Cliffs’ managing director Todd Hibberd<br />
says, “<strong>The</strong> additional nickel sulphide targets<br />
generated by the recent survey are outstanding<br />
exploration targets. <strong>The</strong> local geology for<br />
the Maggie Hays nickel sulphide-style targets<br />
NEWLY-listed exploration company Riedel Resources<br />
has completed significant geological<br />
sampling and mapping across its Western Australia<br />
properties. <strong>The</strong> company was incorporated<br />
in April 2010 to explore and develop gold<br />
and base metals mineralization in Western Australia,<br />
and acquired a portfolio of early stage<br />
and advanced properties from ADX Energy.<br />
<strong>The</strong> highlights of its Marymia exploration<br />
program through the March quarter include<br />
the confirmation of widespread multi-elemental<br />
soil anomalies with peak values of<br />
452ppm copper, 1280ppm nickel and<br />
135ppm arsenic. During the pr ogram 2304<br />
soil samples were collected and 270sqkm of<br />
at Mt Gordon and Lake Percy is strikingly similar<br />
to the volcanic sequence that hosts the<br />
Maggie Hays and Emily Anne nickel deposits.<br />
“<strong>The</strong> Lake Johnston lease package contains<br />
extensive mafic to felsic volcanic sequences<br />
and ultramafic units that have the<br />
potential to host a major new nickel sulphide<br />
discovery,” he says. <strong>The</strong> geophysical survey<br />
conducted by the company was carried out<br />
at the Mount Gordon prospect which is 20km<br />
south of Norilsk’s operating Maggie Hays and<br />
geological mapping completed.<br />
Rock chip assays at the site have also confirmed<br />
mineralization grades of up to 56.6<br />
grams/tonne gold and 45.9% iron. High priority<br />
targets have been identified at Marymia<br />
following reinterpretation of historic drill r esults<br />
including 5 metres @ 4.87 grams/tonne<br />
gold from 239.24 metres and 3 metr es @<br />
9.53 grams/tonne gold from 51 metres.<br />
<strong>The</strong> Marymia project is in the pr ospective<br />
Archaean and Pr oterozoic-age terranes of<br />
Western Australia, about 180km northeast of<br />
Meekatharra within the Mary Mia dome. <strong>The</strong><br />
project area is made up of two large contiguous<br />
exploration licences which overlie the<br />
Australia<br />
White Cliff to drill new nickel targets<br />
White Cliff <strong>Miner</strong>als’ prospects in Western Australia are near two nickel mines operated by Norilsk.<br />
Emily Anne nickel mines.<br />
White Cliff’s 70sqkm Lake Per cy project<br />
contains 20km of strike length of potential<br />
nickel-bearing cumulate ultramafic rocks within<br />
two separate units. <strong>The</strong> wester n unit<br />
hosts several nickel-copper geochemical anomalies<br />
of 800ppm nickel and 300ppm copper,<br />
while the central unit has not been tested<br />
for massive sulphides or adequately drilled,<br />
hence the significant potential for massive<br />
sulphide mineralization.<br />
Riedel identifies gold, copper and nickel at Marymia<br />
Baumgarten greenstone belt.<br />
Riedel’s Marymia is 50km northeast along<br />
strike from Sandfire Resources’ Doolgunna<br />
copper-gold project at DeGrussa, which has<br />
an indicated and inferred resource of 10.67<br />
million tonnes @5.6% copper , 1.9<br />
grams/tonne gold and 15 grams/tonne silver.<br />
<strong>The</strong> company is yet to test its Cheritons<br />
gold prospect for potential nickel mineralization.<br />
This project is about 50km southeast of<br />
Marvel Loch in W estern Australia’s eastern<br />
goldfields, and just 2km south of the Cheritons<br />
Find deposit which has an estimated inferred<br />
resource of 1.4 million tonnes @ 2.4<br />
grams/tonne gold.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 33
Australia<br />
Tasman secures Rio Tinto farm-in for Vulcan<br />
PERTH-based Tasman Resources has secured<br />
a conditional farm-in/joint ventur e<br />
agreement with Rio Tinto Exploration regarding<br />
its Vulcan iron oxide-copper-gold-uranium<br />
(IOCGU) pr ospect within the Lake<br />
34 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
Torrens project in South Australia. Rio has<br />
paid Tasman Aus$1 million as an execution<br />
payment for the new agr eement which replaces<br />
the conditional farm-in/joint venture<br />
agreement of October 2011.<br />
Tasman’s wholly-owned exploration licence<br />
is 30km north of BHP Billiton’s Olympic Dam<br />
project. Rio will pay a total of Aus$10 million<br />
to Tasman on the condition that half is spent<br />
on an exploration program within 12 months<br />
of the agreement’s execution. <strong>The</strong> terms retain<br />
the original commercial conditions governing<br />
the initial exploration program and Rio’s<br />
obligations and rights.<br />
<strong>The</strong> companies have also agreed to extend<br />
the period by 6 months to allow for one r emaining<br />
condition to be satisfied. T asman<br />
must secure reasonable access for the purposes<br />
of conducting initial exploration over a<br />
specific area of the tenement over which the<br />
company has previously not secured Aboriginal<br />
heritage access.<br />
If Tasman secures the access within the<br />
six months, Rio Tinto will pay the company<br />
Aus$9 million for the initial program. However,<br />
if the condition has not been met Rio<br />
has options to extend the time period and<br />
can decide whether to fund a 2400 metr e<br />
drill program on the heritage cleared areas<br />
of the Vulcan prospect at a cost of Aus$1<br />
million and then fund a further 2400 metr e<br />
drill program after two years at a cost of<br />
Aus$2 million. Rio could elect to ear n between<br />
55% and 100% of the pr oject by<br />
spending another Aus$32 million within the<br />
next five years.<br />
<strong>The</strong> Lake Torrens project covers more than<br />
2000sqkm adjoining the Olympic Dam deposit<br />
in central South Australia. In late 2009 Tasman<br />
began its initial drill pr ogram at Vulcan<br />
with strong chlorite-sericite altered basement<br />
volcanics and IOCGU mineralized hematite<br />
breccias intersected. Highlights of the eight<br />
holes drilled include 7.8 metr es @ 1.21%<br />
copper and 0.35 grams/tonne gold and 1.37<br />
metres @ 0.91 kg/tonne uranium.<br />
Tasman’s executive chairman Gr eg Solomon<br />
says, “Individual sections of these holes<br />
have returned assays for copper, uranium,<br />
gold, cerium and lanthanum that are equivalent<br />
to the higher-grade ore mined at Olympic<br />
Dam, confirming that the system has the potential<br />
to produce high-grade mineralization.<br />
“<strong>The</strong> results confirm Vulcan hosts mineralization<br />
of the same style and of comparable<br />
thickness to that which makes up a<br />
very large portion of Olympic Dam and with<br />
further investigation could pr ove to be a<br />
major deposit itself.”
OZ <strong>Miner</strong>als has completed the sale of its<br />
Cambodian gold assets to Renaissance <strong>Miner</strong>als<br />
for the equivalent of Aus$17.8 million<br />
in cash, shares and options along with possible<br />
future payments of a further $22.5 million<br />
on achievement of certain milestones.<br />
<strong>The</strong> acquisition includes the Okvau deposit<br />
which has a JORC-compliant indicated and<br />
inferred resource of 729,000 ounces.<br />
Okvau is at present the major asset in an<br />
1100sqkm tenement package which forms<br />
the core of a prospective new intrusive related<br />
gold pr ovince in the easter n region of<br />
Cambodia. <strong>The</strong>re are a number of other prospects<br />
within the package at which varying<br />
amounts of exploration have taken place.<br />
OZ <strong>Miner</strong>als recently established a resource<br />
at Okvau of 12.6 million tonnes @ 1.8<br />
grams/tonne gold. <strong>The</strong>re are 7.8 million indicated<br />
tonnes @ 2.03 grams/tonne for 508,000<br />
ounces and 4.8 million inferred tonnes @ 1.44<br />
grams/tonne for 221,000 ounces. <strong>Miner</strong>alization<br />
at remains open at depth and along strike.<br />
Cambodia remains largely unexplored and<br />
has significant potential to host world-class<br />
Renaissance buys Oz <strong>Miner</strong>als assets<br />
gold deposits. Renaissance is excited about<br />
the acquisition and believes it has potential to<br />
be a company-maker. OZ <strong>Miner</strong>als is a cor -<br />
nerstone investor and the largest shareholder<br />
in Renaissance. OZ <strong>Miner</strong>als’ managing director<br />
and CEO Terry Burgess says, “OZ <strong>Miner</strong>als<br />
sought to develop and operate a mid-tier gold<br />
Renaissance <strong>Miner</strong>als has secured the Cambodian gold assets of OZ <strong>Miner</strong>als.<br />
Cambodia<br />
mine in Cambodia and to this end took its<br />
Cambodian interests from a grassroots project<br />
to an identified gold r esource. However after<br />
review, we have concluded this pr oject does<br />
not fit within our strategy with regard to scale<br />
in relation to the commodity and our overall<br />
preference for mid-tier copper projects.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 35
Papau New Guinea<br />
Maiden Mambare resource exceeds expectations<br />
REGENCY Mines has announced a maiden<br />
JORC resource at its Mambare nickel project<br />
of 95.1 million tonnes. This combined indicated<br />
and inferred resource is graded 0.96% nickel<br />
and 0.08% cobalt with 912,595 tonnes of contained<br />
nickel at a 0.6% nickel cut-off grade.<br />
<strong>The</strong> maiden resource estimate has exceeded<br />
expectations by thr ee times what the<br />
company had forecast, only represents a very<br />
small part of the licence area and the grades<br />
are better than expected. Independent r esearch<br />
company VSA Capital is also surprised<br />
by the announcement, having estimated<br />
the project to host 30 million tonnes after discussions<br />
with the project manager and site<br />
visits in November 2011.<br />
VSA’s chief executive Andrew Monk says<br />
there is also much scope to increase the project<br />
tonnage as the r esource estimate has<br />
been taken only fr om two areas within the<br />
Mambare site. “This 95 million tonnes is just<br />
36 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
the beginning and we expect that further delineation<br />
drilling on the plateau will significantly<br />
increase the resource estimate.”<br />
Five drill rigs completed a 200 hole exploration<br />
program along the North Ridge Extension<br />
Zone last year.<br />
Regency chairman Andrew Bell says, “Our<br />
Mambare project is, we believe, a world-class<br />
resource and will make a world-class project.<br />
With the benefit of the Dir ect Nickel processing<br />
technology, in which we have invested<br />
so much of our money and cr edibility, we<br />
think we can become among the world’s lowcost<br />
large-scale producers.”<br />
He says that to have an estimate at 95 million<br />
tonnes with less than 3% of the plateau<br />
drilled leads the company to believe Mambare<br />
could be one of the world’s largest single<br />
nickel laterite deposits.<br />
Mambare is a joint ventur e with Sydneybased<br />
Direct Nickel (DNI). It is about 120km<br />
Significant assay results from Mt Kare<br />
THE Mt Kare gold and silver project in Papua<br />
New Guinea’s Central Highlands is likely to<br />
become Indochine Mining’ s major priority<br />
after assay results from a further thr ee drill<br />
holes returned very high grade mineralization.<br />
<strong>The</strong> intersections are among a set to be sent<br />
to Perth for metallurgical test work while assays<br />
for 25 additional holes are still pending.<br />
Highlights of the results include 17.7 metres<br />
@ 100.3 grams/tonne gold and 134<br />
grams/tonne silver from 59 metres including<br />
4 metres @ 420 grams/tonne gold and 170<br />
grams/tonne silver from 67 metres.<br />
Indochine’s chief executive officer Stephen<br />
Promnitz says, “<strong>The</strong>se r esults support our<br />
confidence in the potential of the Mt Kar e<br />
gold/silver project. As each new drill hole<br />
comes in, our confidence is elevated further.”<br />
Mt Kare is one of the largest near-term gold<br />
projects in Papua New Guinea. It is 15km<br />
from one of the world’s biggest gold mines,<br />
Barrick’s 28 million ounce Porgera mine,<br />
which has produced more than 500,000 ounces<br />
of gold each year since 1990. Indochine<br />
says Mt Kar e shares similar geology , ore<br />
types and structures of mineralization to Porgera,<br />
which has established major r oad and<br />
power infrastructure.<br />
Checking core samples from Indochine’s Mt Kare gold and silver project.<br />
After acquiring the project in June 2011, the<br />
company is planning the development of a<br />
large open cut mine to pr oduce up to<br />
150,000 ounces of gold and silver each year.<br />
Ongoing drilling at the site is expected to improve<br />
the quality and increase the current resource<br />
for inclusion in the pre-feasibility study,<br />
which is due for completion by August.<br />
Initial mine plans and scheduling have been<br />
from the deep water port of Oro Bay and covers<br />
242sqkm. Regency invested $6 million<br />
in DNI in 2010-11 to become a significant<br />
shareholder, as the company’s advanced lateritic<br />
tank leaching treatment technology offers<br />
a unique low capital and operating cost<br />
treatment process for both limonites and saprolites.<br />
A $5.4 million pilot plant has been<br />
constructed at Perth in Western Australia to<br />
test DNI’s technology.<br />
“<strong>The</strong> Direct Nickel processing technology<br />
for lateritic nickels is a disruptive technology<br />
that will change the nickel mining industry .<br />
We intend to be leaders in that change,”<br />
says Andrew Bell.<br />
If the pilot plant is successful on a commercial<br />
scale, the technology will dramatically reduce<br />
the cost of pr ocessing nickel laterite<br />
deposits. <strong>The</strong> joint ventur e aims to commence<br />
production of an annual 20,000 tonnes<br />
of nickel at Mambare in 2015.<br />
completed with draft optimized pit shells and<br />
basic infrastructure plans. <strong>The</strong> environmental<br />
impact, social impact and initial tailings studies<br />
are also under way.<br />
Indochine announced an initial 2.1 million<br />
ounce gold equivalent JORC-compliant r esource<br />
estimate for the deposit in January this<br />
year which confirmed the 2007 evaluation of<br />
the gold-silver mineralization at the prospect.
Substantial increase in Yandera measured resource<br />
A mineralized rock sample from Yandera<br />
Examining core from the Yandera project.<br />
A HOLD-UP in finalization of funding for the<br />
vessel to be used at Nautilus <strong>Miner</strong>als’ Solwara<br />
1 project may result in a delay to the start<br />
of operations at the company’s first development<br />
project. Nautilus and its strategic partner<br />
Harren & Partner have been negotiating terms<br />
of third party finance for the pr oduction support<br />
vessel which will be owned and operated<br />
by the joint venture company. However, Harren<br />
& Partner are no longer able to contribute the<br />
full amount of equity to the JV which has r esulted<br />
in the delay to the vessel build.<br />
As the first company to explor e the ocean<br />
floor off Papua New Guinea for polymetallic<br />
seafloor massive sulphide deposits, Nautilus<br />
has been making good progress at Solwara 1,<br />
with development 40% complete. It aims to<br />
produce copper, gold and silver from the site.<br />
“Progress has continued thr oughout the<br />
MARENGO Mining has updated the resource<br />
at its Yandera copper-molybdenum-gold project,<br />
further cementing the pr ogress of the<br />
project’s development. At a 0.25% copper<br />
cut-off, the resource has a measured and indicated<br />
362 million tonnes @ 0.43% copper<br />
compared to 359 million tonnes in the 2011<br />
figures, and a further inferred 218 million tonnes<br />
@ 0.37% copper for 1778 million pounds<br />
of contained copper.<br />
<strong>The</strong>re are also confirmed areas of elevated<br />
gold and molybdenum grades, with a measured<br />
and indicated 199 million tonnes @ 0.17<br />
grams/ tonne gold and 532 million tonnes @<br />
0.01% molybdenum.<br />
<strong>The</strong> substantial increase in the measured<br />
resource and grade at the site was prepared<br />
from metallurgical test work by consultants<br />
Ravensgate, using assay r esults from 465<br />
diamond drill holes totalling 145,335 metr es<br />
which were drilled in 2011. <strong>The</strong> company<br />
says the significant conversion of copper resources<br />
to the measured category with improved<br />
grade and the conversion of<br />
additional indicated resources from the inferred<br />
category is of particular note.<br />
Marengo’s managing director Les Emery<br />
says, “<strong>The</strong> resource update supports the previously<br />
stated goal of achieving a minimum<br />
operating life of at least 20 years. <strong>The</strong> mea-<br />
first half of 2012 on works related to the project’s<br />
development with work continuing on<br />
the seafloor production tools. Considerable<br />
effort was also spent on the negotiation of a<br />
landmark offtake agreement with Tongling<br />
Nonferrous Metals Gr oup,” says Nautilus<br />
chief executive officer Stephen Rogers.<br />
<strong>The</strong> binding agreement with Tongling was<br />
signed in May for up to 4 million tonnes of<br />
material from the Solwara 1 deposit in the<br />
Bismarck Sea. <strong>The</strong> three year contract provides<br />
for T ongling to pur chase between<br />
900,000 tonnes and 1.3 million tonnes of material<br />
from the deposit each year, from the first<br />
delivery which is scheduled to take place in<br />
quarter four of 2013.<br />
Tongling will import the product into China<br />
for processing through its facilities in the city<br />
of Tongling near the Yangtze River. <strong>The</strong> cop-<br />
Papau New Guinea<br />
sured resource category has incr eased by<br />
more than 100% and substantial additional<br />
resources have been upgraded fr om the inferred<br />
to indicated category.<br />
“Furthermore, areas of higher grade copper<br />
have been identified that, with the advantage of<br />
topography, can potentially be targeted for the<br />
initial years of possible production,” he says.<br />
A review of the tailings options for the completion<br />
of the feasibility study has led Marengo<br />
to go forward on the basis of a combined rock<br />
waste dump and tailings storage facility . It will<br />
be situated close by the Y andera project and<br />
processing areas. <strong>The</strong> company says this will<br />
allow the copper concentrate being transferred<br />
by pipeline to port at Madang to follow existing<br />
infrastructure corridors.<br />
Marengo is also continuing its exploration<br />
program at the Dirigi prospect, with results for<br />
the first of a 15 hole program already received<br />
confirming near surface mineralization including<br />
3 metres @ 0.23% copper, 211ppm molybdenum,<br />
0.12 grams/tonne gold and 12.76<br />
grams/tonne silver.<br />
Initial fieldwork has commenced at the<br />
company’s Queen Bee area which is about<br />
15km northwest of Yandera. Historical work<br />
shows skarnoid mineralization at Queen Bee<br />
and the exploration team is hoping to identify<br />
mineralized bodies.<br />
Funding hold-up may delay Solwara 1<br />
per concentrate will then be smelted at the<br />
local industrial complex, with the pur chase<br />
price determined on the quality of the copper<br />
concentrate produced.<br />
Further value may be realised through a 50-<br />
50 profit sharing scheme based on incremental<br />
by-product revenue realized in China,<br />
including gold bearing pyrite. Material from the<br />
process can be roasted in China to produce<br />
gold and sulphuric acid and the remaining calcine<br />
may be sold to cement manufacturers or<br />
as iron ore fines. With minimal waste Tongling’s<br />
process brings significant benefits consistent<br />
with Nautilus’ commitment to minimize<br />
environmental impacts.<br />
<strong>The</strong> agreement also includes a mechanism<br />
for an early payment of 90% of the<br />
price upon loading of the export vessel in<br />
Papua New Guinea.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 37
Central Asia<br />
Premier Gold starts Cholokkaindy exploration<br />
PREMIER Gold has started its 2012 exploration<br />
program on the Cholokkaindy licence<br />
in the Kyrgyz Republic. <strong>The</strong> work has<br />
started with an extensive soil sampling program<br />
and further trenching while diamond<br />
drilling will be undertaken later with the aim<br />
of helping establish a geological r esource<br />
on the licence in 2013.<br />
Field work on Premier Gold’s Cholokkaindy prospect in the north of the Kyrgyz Republic.<br />
<strong>The</strong> company expects to drill 1500 metres in<br />
the target area of the Talbaital prospect, as well<br />
as the Jarkonush pr ospect if the season allows.<br />
Premier Gold plans to drill a minimum of<br />
six holes to depths of up to 250 metres and intends<br />
to report initial results from core obtained<br />
from these prospects by the fourth quarter.<br />
EXPLORATION company Hansa Resources<br />
has finalized acquisition of the Zhumba<br />
Gold Project in the Kokpektinsky and Ulansky<br />
districts of Easter n Kazakhstan.<br />
Zhumba was discovered in 1871 as a placer<br />
deposit and since then ther e has been<br />
ongoing small-scale production in the r egion.<br />
In 1984-89 a local company mined the<br />
Yuzhnaya zone by open pit to a depth of 70<br />
metres producing 60,000 tonnes of ore with<br />
an average grade of 5-6 grams/tonne gold.<br />
Zhumba consists of two claims covering<br />
259.76sqkm and is in the southeast continuation<br />
of the West Kalba gold belt hosting<br />
a number of producing gold mines including<br />
the world-class Bakyrchik deposit. <strong>The</strong> regional<br />
centre of Ust Kamenogorsk is 200km<br />
from Zhumba along a paved road.<br />
Zhumba is an orogenic gold system characterized<br />
by intensive multi-stage mineralization<br />
within an area of 2km by 4km with<br />
three main styles of mineralization present.<br />
38 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
<strong>The</strong> program is designed to extend and<br />
define the length and depth of the known<br />
surface mineralization and support the correlation<br />
of mineralized structures across the<br />
targeted area. Trenching and soil sampling<br />
in priority ar eas has alr eady begun. <strong>The</strong><br />
combined work will indicate whether the<br />
Talbaital prospect extends into Jarkonush<br />
and more precisely map mineralized zones<br />
over the total licence area.<br />
A bulldozer has been preparing access for<br />
the drilling rig, which is expected to arrive<br />
during July. <strong>The</strong> bulldozing process is also<br />
designed to expose new areas of mineralization.<br />
<strong>The</strong> drilling program will be underta-<br />
Hansa acquires Zhumba gold property<br />
Historically, gold-quartz-sulphide veins<br />
have been identified from 1 metre up to 6.5<br />
metres thick with an average ar ound 1.5<br />
metres and strike lengths up to a few hundred<br />
metres.<br />
Gold has also been identified in disseminated<br />
gold-sulphide mineralized zones which<br />
are tens of metres wide. Due to an historical<br />
focus on the narrow veins style, the broader<br />
disseminated style of mineralization has not<br />
been systematically tested. Gold is associated<br />
with pyrite and arsenopyrite. A zone of<br />
weathering and oxidation above primary sulphide<br />
mineralization has been developed at<br />
the property to a depth of 30-40 metres and<br />
has not been systematically explored.<br />
In 1985, the Soviet Geological Survey drilled<br />
four diamond holes and completed 50<br />
trenches which delineated a total of 26 mineralized<br />
bodies at cut-off of 2 grams/tonne<br />
gold. <strong>The</strong> survey estimated a r esource in<br />
Russian C1 category, for five mineralized<br />
ken by Tamerlan, a highly qualified contractor<br />
with extensive operating experience in<br />
the Kyrgyz Republic.<br />
Premier’s chief operating officer Richard<br />
Nolan says, “We are pleased to start this<br />
season’s exploration program which includes<br />
the first drilling on Cholokkaindy , an<br />
area in the Tien Shan gold belt which has a<br />
history of producing gold mines. By the end<br />
of this season we expect to be in a position<br />
to map out the 2010 and 2011 surface<br />
sampling mineralization into structures and<br />
mineralized veins.<br />
“This is an exciting time for Pr emier Gold<br />
as we move in to the next stages of developing<br />
the prospect which will provide a maiden<br />
geological resource by 2013, the start<br />
of the process of proving up a commercial<br />
scale resource.”<br />
Earlier this year the company changed its<br />
name from Premier Management Holdings<br />
to Premier Gold Resources and began trading<br />
on the AIM market of the London<br />
Stock Exchange. It also completed the acquisition<br />
of Central Asia Resour ces Ltd,<br />
bringing with it the Cholokkaindy licence,<br />
which covers 24sqkm and is about 80km<br />
west-southwest of Bishkek.<br />
bodies of 192,000 ounces of gold at an<br />
average grade of 4.4 grams/tonne, which<br />
were described as steeply dipping, an average<br />
of 1.5 metres wide and 200-600 metres<br />
long. This historical estimate is based<br />
on reports by the Soviet Geological Society<br />
between 1984 and 89. <strong>The</strong> C1 category is<br />
broadly similar to the CIM inferred definition.<br />
Initial work planned by the T oronto and<br />
Frankfurt listed Hansa will include compilation<br />
of historical data, reconnaissance sampling<br />
of thr ee styles of mineralization<br />
including metallurgical testing, geological<br />
and structural mapping, r estoration and<br />
sampling of exploration adit, sampling of<br />
open pit walls and further delineation of mineralization<br />
geometry by means of tr enching<br />
and channel sampling.<br />
Hansa has concluded an agr eement with<br />
Altynor Mining, a private BVI company, for the<br />
effective acquisition of 81% of the shar es of<br />
Altyn-Komir Ltd, the owner of Zhumba.
PLANT number 3 of Stans Energy’s Kashka<br />
Rare Earths Plant in the Kyrgyz Republic will<br />
be ready for operational testing by mid-July.<br />
By August 30 the plant is expected to be<br />
ready to produce its first product – heavy rare<br />
earth oxides of dysprosium, gadolinium and<br />
erbium to 99.99% purity.<br />
<strong>The</strong> three heavy rare earths are to be recovered<br />
from loaded ion exchange resins located<br />
in the circuit since plant operations were<br />
suspended in the early 1990s. Since the acquisition<br />
of the plant in May 2011, Stans has<br />
undertaken an extensive refurbishment program<br />
at plant number 3. Although this plant<br />
had not operated for nearly 20 years, much<br />
of the production equipment has remained in<br />
place and is ready to be restarted.<br />
Stans Energy’s president and CEO Robert<br />
Mackay says, “We are extremely pleased with<br />
the progress made at plant number 3.<br />
Through the course of our renovation, and in<br />
consultation with our technical advisors at<br />
VNIIHT (<strong>The</strong> Russian Resear ch Institute of<br />
Chemical Technology), we discovered the potential<br />
for r ecovering nearly two tonnes of<br />
Stans ready for rare earth tests at Kashka<br />
Stans Energy Corp has a number of rare earths and uranium properties in the Kyrgyz Republic.<br />
mixed rare earths oxides fr om concentrate<br />
that remains in the holding tanks.<br />
“<strong>The</strong> concentrate consists of dyspr osium,<br />
gadolinium, samarium, yttrium, holmium, ytterbium,<br />
erbium, thulium and lutetium. This<br />
test run will demonstrate the operational viability<br />
of the Kashka plant. This validation of<br />
our proven metallurgical processes and pro-<br />
Central Asia<br />
duction assets will solidify our position as one<br />
of the front-runners to rare earth oxide production<br />
outside of China.<br />
“In this period of transition from project development<br />
through infrastructure build-out,<br />
and ultimately production readiness, Stans<br />
will continue the evaluation of other potential<br />
sources of concentrates.”<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 39
Malaysia<br />
Sokor gold resources increase 35%<br />
ONGOING exploration at CNMC Goldmine<br />
Holdings’ Sokor Gold Project in Kalantan state,<br />
Malaysia, has led to a 35% increase in gold resources.<br />
<strong>The</strong> 103,300 ounce increase means<br />
that the producing Sokor operation now hosts<br />
503,000 JORC-compliant ounces of gold.<br />
CNMC, which is the first Catalist-listed gold mining<br />
company on the Singapore Exchange Securities<br />
Trading Limited, owns 81% of the<br />
Sokor project. <strong>The</strong>re are four identified gold deposits<br />
on the 10sqkm pr oject - Manson’ s<br />
Lode, New Discovery, Sg Ketubong and Rixen.<br />
<strong>The</strong> company announced the pr evious resource<br />
of 372,700 ounces on June 30, 2011,<br />
and since then 21 holes have been drilled for a<br />
total of 1746.03 metres at Rixen and four holes<br />
for a total of 895.93 metr es at Ketubong. It is<br />
the company’s second resource update since<br />
its listing on October 28, 2011, with r esource<br />
estimates steadily increasing at a healthy pace.<br />
<strong>The</strong> latest update has been compiled by<br />
CNMC’s independent r esource consultant<br />
Optiro using a 0.3 grams/tonne gold cut-of f<br />
for the Rixen deposit and a 0.5 grams/tonne<br />
cut-off for the three other deposits.<br />
40 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
In total the four deposits have JORC-compliant<br />
resources of 8.59 million tonnes at a<br />
grade of 1.7 grams/tonne in the measur ed,<br />
indicated and inferred categories for a total of<br />
503,000 ounces. Of these there are 630,000<br />
tonnes @ 3.3 grams/tonne for 73,000 ounces<br />
in the measured category, 2.8 million tonnes<br />
@ 1.5 grams/tonne for 149,000 ounces in the<br />
indicated category and 5.16 million tonnes @<br />
1.5 grams/tonne for 281,000 ounces in the<br />
inferred category.<br />
CNMC Goldmine Holdings’ executive director<br />
and chief executive officer Chris Lim says,<br />
“We are very happy with our latest milestone.<br />
CNMC places great emphasis on getting high<br />
standard JORC-compliant reports that can<br />
withstand independent scrutiny. In addition,<br />
the further increase in the estimates of gold<br />
resources is a strong testimonial to CNMC’s<br />
beliefs and strategies. We will continue to balance<br />
our exploration activities and gold production<br />
efforts to achieve maximum value.<br />
“While exploration efforts are an important<br />
priority of the gr oup’s strategies to enhance<br />
shareholder value, we are also taking steps to<br />
CNMC Goldmine Holdings Sokor project is in the far<br />
north of mainland Malaysia, not far from the Thai border.<br />
enhance our production capacity to produce<br />
more refined gold, and to date, we have pr oduced<br />
more than 3000 ounces of gold.”
MONUMENT Mining was confident of completing<br />
work on the phase III gold plant expansion<br />
at the Selinsing project by the end of June. <strong>The</strong><br />
company says the expansion will allow it to<br />
boost annual processing capacity at the pr oject<br />
in central Malaysia to 1 million tonnes.<br />
<strong>The</strong> facility provides flexible treatment options<br />
for variable ore types. <strong>The</strong> construction<br />
budget totalled Can$8 million and the company<br />
estimates pay back from operating cash<br />
flow in three months.<br />
Gold production during the March quarter<br />
was 10,676 ounces compar ed to 11,904<br />
ounces for the same quarter in the pr evious<br />
fiscal year. <strong>The</strong> average r ealized price per<br />
ounce of gold sold was $1698 during the<br />
quarter compared to $1,404 for the corr esponding<br />
quarter in the pr evious fiscal year,<br />
an increase of 21%.<br />
Monument’s CEO and pr esident Robert<br />
Baldock says, “<strong>The</strong> total production decreased<br />
about 9% when compar ed both to the<br />
2011 corresponding quarter and the December<br />
quarter. This was mainly due to lower mill<br />
feed grade and a lower processing recovery<br />
Selinsing expansion to boost processing rates<br />
Construction of the phase III expansion at Monument Mining’s Selinsing Gold Project.<br />
rate. <strong>The</strong> total production level is expected to<br />
rise when the plant capacity is incr eased as<br />
part of the expansion.”<br />
Along with the lower pr oduction, gold income<br />
decreased by more than $1.865 million<br />
to $8,430,279, net of operating and corporate<br />
expenses. <strong>The</strong> decline was partially of f-<br />
Malaysia<br />
set by higher gold prices. <strong>The</strong>re was total revenue<br />
of $12.4 million generated fr om gold<br />
sales of 7301 ounces.<br />
Exploration at the company’s properties in<br />
the nine months to March 31 produced 8356<br />
drill metres of which 4566 drill metr es were<br />
completed during the March quarter.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 41
First sales into domestic market<br />
NSL Consolidated has sold its first iron ore ex-gate into the Indian domestic<br />
market with the Australian-based outfit becoming the only foreign<br />
company to own and operate iron ore mines in India. Construction<br />
and commissioning of the phase 1 Kurnool iron ore dry separation plant<br />
continues on time and budget as NSL finalizes optimization of the process<br />
capable of producing up to 58% iron grade ore.<br />
<strong>The</strong> first ex-gate sale was achieved in May and NSL expects a gradual<br />
ramp up in production and sales tonnages towards the targeted<br />
phase 1 annual production capacity of 200,000 tonnes during the<br />
third quarter. Final commissioning on the dry separation cir cuit was<br />
expected to occur before June 30.<br />
<strong>The</strong> phase 2 wet beneficiation plant, which is capable of producing<br />
final product grades of between 58-62% ir on, will be brought into<br />
operation later in 2012 with completion and anticipated sales in the<br />
first half of 2013. This is targeted to incr ease annual production capacity<br />
by an additional 200,000 tonnes to 400,000 tonnes.<br />
<strong>The</strong> Kurnool stockyard is a 4.85 hectar e industrial site within the<br />
south-eastern Indian state of Andhra Pradesh. As well as the ir on<br />
source at the nearby Mangal mine, the plant is also adjacent to NSL’s<br />
existing Kuja iron mine.<br />
NSL’s managing director Cedric Goode says, “Domestic demand<br />
and pricing for iron ore remain particularly strong and NSL has recei-<br />
Operations at one of NSL’s iron ore projects in southeast India.<br />
ved numerous approaches from industry players seeking to secur e<br />
off-take from the Kurnool project.<br />
“This is a significant milestone for NSL, as we have had to overcome<br />
many challenges to become the first for eign iron ore producer in<br />
India,” he says. “Our journey is only just commencing, as we progress<br />
through completing phases 1 and 2, to utilizing our experience and<br />
actual performance to lift NSL to its desir ed 1.5 million tonne per<br />
annum target by the end of 2014.<br />
“This target will be possible through bolt on wet and dry separation<br />
plants to increase output, together with sourcing additional ore feed<br />
through strategic acquisitions and supply agreements.<br />
“With the increase in funds being allocated to infrastructure projects,<br />
Indian domestic steel production is expected to increase from 77 million<br />
tonnes to 200 million tonnes by 2020. <strong>The</strong> company looks for -<br />
ward to making its contribution as part of this growth.”<br />
NSL’s plan for phases 3 and 4 incorporates 1.5 million tonnes annual<br />
throughput by the end of 2014 aided by acquisition of a thir d<br />
project, Karimnagar, which has an exploration target of 62 million to<br />
125 million tonnes of magnetite at grades of 20-50% iron. This project<br />
represents a ‘second generation’ for NSL in India with significantly larger<br />
potential than the Mangal and Kuja mines. <strong>The</strong> company is also<br />
seeking other iron opportunities in India.<br />
India<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 43
44 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012
LIFE OF MINE<br />
10-12 July, Brisbane, Australia<br />
www.ausimm.com.au/lifeofmine2012<br />
IMA- HSET INDONESIA MINING<br />
July 11-14, Jakarta Convention Centre, Indonesia<br />
www.ima-api.com/event.php?id=41&act=detail<br />
EMERGENCY MANAGEMENT & RESPONSE IN MINING<br />
July 17-19, Perth, Australia<br />
www.beaconevents.com/2012/EmergencyManagement2012<br />
QUEENSLAND MINING AND ENGINEERING<br />
July 24-26, Mackay, Queensland<br />
www.queenslandminingexpo.com.au<br />
8TH COALTRANS AUSTRALIA<br />
August 20-21, Brisbane, Australia<br />
www.coaltrans.com<br />
MINING AND ENERGY NSW 2012 EXHIBITION<br />
August 28-30, Newcastle, NSW<br />
www.miningandengineeringnsw.com.au<br />
DISCOVER MONGOLIA 2012<br />
August 30-31, Ulaanbaatar, Mongolia<br />
www.discovermongoliaforum.com<br />
2012 Calendar<br />
FRONTIER SECURITIES ANNUAL CONFERENCE<br />
September 3-5, Ulaanbaatar, Mongolia<br />
www.frontier-conference.com<br />
2ND ANNUAL DRILL AND BLAST <strong>ASIA</strong><br />
September 3-4, Jakarta, Indonesia<br />
www.drillandblastasia.com/Event.aspx?id=731016<br />
KALIMANTAN COAL<br />
September 4-5, Balikpapan, Indonesia<br />
www.immevents.com<br />
2012 AMEC CONVENTION<br />
September 4-7, Perth, Western Australia<br />
www.amec.org.au/events/convention<br />
2ND COALTRANS FINANCING & INVESTING IN COAL<br />
September 5-6, Singapore<br />
www.coaltrans.com<br />
MINING MONGOLIA 2012<br />
September 5-7, Ulaanbaatar, Mongolia<br />
www.miningandconstructionmongolia.com<br />
AUSTRALIA – JAPAN COAL CONFERENCE<br />
October 11, Sydney, Australia<br />
www.tmm.com.au<br />
July/August 2011 | <strong>ASIA</strong> <strong>Miner</strong> | 45
By Krishnan Narayan, research analyst for Beroe Inc.<br />
THE global economic downtur n in 2008/09<br />
was terrible for <strong>junior</strong> mining firms. <strong>The</strong> global<br />
exploration expenditure dropped from<br />
US$14.4 billion in 2008 to US$8.4 billion in<br />
2009, the largest ever year-on-year drop. During<br />
this period, the share of total exploration<br />
expenditure among <strong>junior</strong> mining companies<br />
fell to 40%, the first time it had dr opped<br />
below that of the global mining majors since<br />
2004. <strong>The</strong> challenging market conditions and<br />
turbulent global economy led to a sever e<br />
shortage of equity financing for the mining industry<br />
and <strong>junior</strong> miners found their ability to<br />
raise funds severely curtailed.<br />
Junior mining companies typically derive<br />
the majority of their funding from investors or<br />
by selling shares and are focused on the discovery<br />
and development of minerals. Further,<br />
their market capitalization is generally less<br />
than US$500 million and they possess only<br />
around one or two pr oducing operations.<br />
Currently, there are more than 1200 <strong>junior</strong> mining<br />
and exploration companies listed on the<br />
46 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2011<br />
Toronto Stock Exchange (TSX), mor e than<br />
500 on the Australian Stock Exchange (ASX),<br />
more than 150 on the London Stock<br />
Exchange (LSE & AIM) and more than 20 on<br />
the Johannesburg Stock Exchange (JSE).<br />
<strong>The</strong> vast majority of mineral deposit discoveries<br />
are made by <strong>junior</strong> mining companies<br />
with the key reasons being a thorough knowledge<br />
of local geology, access to equity and<br />
land, the availability of experienced experts,<br />
and an ability to execute decisions rapidly<br />
since they ar e not bogged down by bureaucratic<br />
red tape. Consequently, a large<br />
number of mineral deposits, which ar e the<br />
world’s future mines, are owned by <strong>junior</strong> mining<br />
companies. When global mining majors<br />
seek to replace existing reserves or expand<br />
their asset base, a key strategy is to acquir e<br />
low cost, long life deposits fr om <strong>junior</strong>s or<br />
simply to acquire the <strong>junior</strong>s. Rio T into’s acquisition<br />
of Riversdale Mining in 2011 for<br />
US$3.9 billion and BHP Billiton’s acquisition<br />
of Athabasca Potash for US$341 million in<br />
<strong>The</strong>re are many challenges facing Australian <strong>junior</strong><br />
<strong>explorers</strong> and miners, who in many ways are the<br />
backbone of the global mining industry.<br />
CHALLENGES FACED BY<br />
Australia’s <strong>junior</strong> <strong>explorers</strong><br />
2010 are examples of this trend.<br />
In 2012, as other industries continue to face<br />
challenges caused by uncertain r ecovery<br />
from the global financial crisis, the demand<br />
for commodities is being driven primarily by<br />
emerging markets. <strong>The</strong> historic lack of investment<br />
in exploration, coupled with the fact<br />
that established mines have started to run out<br />
is leading to a supply constraint. <strong>The</strong> demand/supply<br />
equation continues to drive the<br />
prices of commodities and as a result the mining<br />
industry as a whole is emerging financially<br />
stronger and poised for growth.<br />
FINANCIAL ROADBLOCKS<br />
In spite of steady commodity prices, Australian<br />
<strong>junior</strong> miners face the challenge of financing<br />
their projects. Junior mining shares are still<br />
being traded in sluggish volumes which act as<br />
a deterrent to investors. Banks and shareholders<br />
prefer to invest in better capitalized companies<br />
as long as the global outlook r emains<br />
uncertain. Since <strong>junior</strong> mining firms need to
provide reasonably continuous news for sustained<br />
investor interest, investors are cautious<br />
of statements that could overstate the potential<br />
or current status of a pr operty. <strong>The</strong> deals<br />
that do take place are generally of small amounts<br />
for a short time period, ar ound three to<br />
six months. <strong>The</strong> cheap valuations ar e expected<br />
to cause many <strong>junior</strong>s to hesitate while<br />
fundraising due to the fear of dilutions. For example,<br />
Austrasia International Mining, an Australian<br />
<strong>junior</strong> miner, has withdrawn plans to list<br />
on the stock exchange due to challenging<br />
conditions on the financial markets.<br />
<strong>The</strong> cheap valuations would normally be expected<br />
to lure mining majors but the global<br />
diversified miners such as Anglo American<br />
and Xstrata have substantial capital commitments<br />
for 2012. Further, global mining majors<br />
are riddled with full project pipelines and are<br />
concerned about cost overruns at new pr ojects.<br />
Such a situation is expected to continue<br />
as long as there are doubts regarding a<br />
Greek default, recession in Europe, higher inflation<br />
and unemployment in the industry. It is<br />
expected that the scenario will change once<br />
global macroeconomic activity stabilizes.<br />
Additionally, Australian <strong>junior</strong> miners face<br />
the challenge of funding and structuring<br />
large infrastructure projects. Historically,<br />
such projects have been either funded by<br />
the government or by infrastructur e investors.<br />
Currently, government spending on<br />
infrastructure has decreased and private investors<br />
demand increased rate of return for<br />
such investments. In such a scenario, global<br />
diversified miners such as BHP Billiton and<br />
Rio Tinto are using their own funds to develop<br />
and control infrastructure, such as road,<br />
railways and port facilities. However, this is<br />
not feasible for smaller mining firms.<br />
INFRASTRUCTURE FINANCE SOLUTIONS<br />
Junior mining companies could look into establishing<br />
Special Purpose Vehicles or participating<br />
in multi-party financing to acquire interests<br />
in mining infrastructure, such as the case of<br />
Port Waratah Coal Handling Services. Another<br />
example of such a scenario is the plan to develop<br />
an open access railway in Pilbara by<br />
Atlas Iron and QR National. It must be noted,<br />
however, that this kind of agreement could become<br />
quite complex since competing user priorities,<br />
tax considerations and issues regarding<br />
control can lead to pr oblems between investors,<br />
ultimately resulting in project delays.<br />
Other ways by which smaller mining companies<br />
could raise finance for infrastructur e<br />
projects include inviting contractors bidding<br />
for infrastructure projects to invest equity in<br />
order to obtain a favorable outcome on their<br />
bids, and considering Private Public Partnerships<br />
(PPP) in order to raise funds.<br />
TAXATION ISSUES<br />
Australia will intr oduce a <strong>Miner</strong>als Resour ce<br />
Rent Tax (MRRT) from July 1, 2012. <strong>The</strong> tax,<br />
which applies in full to miners whose profits exceed<br />
Aus$125 million annually, will exempt miners<br />
whose annual profits are below Aus$75<br />
million. <strong>The</strong> tax will be applied in a phased manner<br />
for companies whose pr ofits lie between<br />
Aus$75 million and Aus$125 million. It is expected<br />
that global diversified miners will account<br />
for 90% of the revenue generated by the<br />
tax. However, it is estimated that smaller mining<br />
companies will be paying a higher effective tax<br />
rate than the larger miners and there is a feeling<br />
among many <strong>junior</strong>s that there is considerable<br />
scope to provide small and emerging miners<br />
with a higher tax shield, as compar ed to that<br />
provided to larger mining companies.<br />
RECOGNIZING that action is needed to address the decline in minerals<br />
exploration in Australia, the Association of Mining & Exploration<br />
Companies (AMEC) has welcomed the announcement that all Australian<br />
energy and resources ministers have agreed to develop a National<br />
Exploration Strategy to addr ess Australia’s greenfields<br />
exploration challenge. AMEC’s CEO Simon Bennison says, “Australia<br />
is now in competition with every jurisdiction globally that per -<br />
mits and encourages exploration. In fact, Australia’s share of global<br />
exploration is not increasing and we need to ensure we have the inventory<br />
of producing mines for the longer term as well as worldclass<br />
discoveries in both new greenfields areas and under cover.”<br />
Australian Junior Explorers<br />
SUSTAINABLE DEVELOPMENT<br />
Mining companies have a responsibility towards<br />
making their activities more sustainable.<br />
A company’ s policy towar ds the<br />
environment, human rights and indigenous<br />
peoples’ rights, workplace health and safety,<br />
and community helps to build trust<br />
with shareholders, actively managing risks,<br />
maximizing the positive effects of their operations<br />
and embracing inter national best<br />
practices in non-financial matters. <strong>The</strong> <strong>junior</strong><br />
miners spend more money on exploration<br />
than any other sector in the industry.<br />
For the past few years exploration has focused<br />
on remote parts of Australia, where<br />
the enforcement of envir onmental and<br />
other regulations may be inconsistent. As<br />
compared to large mining companies,<br />
which have the experience, policies and resources<br />
necessary to avoid the adverse<br />
environmental and human rights impact,<br />
<strong>junior</strong> miners can rarely match the capacity<br />
and of larger companies.<br />
INVESTING ABROAD<br />
Australian <strong>junior</strong> miners are increasingly investing<br />
in exploration in Africa and South<br />
America, and to a lesser extent in Asia. Currently,<br />
there are about 500 Australian mining<br />
and oil projects in Africa and ar ound 200<br />
Australian mining projects in South America.<br />
Though global mining majors alr eady have<br />
operations in both continents, it is expected<br />
that smaller mining firms will increasingly invest<br />
in projects in emerging economies.<br />
<strong>The</strong> biggest challenges facing Australian<br />
<strong>junior</strong> miners in setting up investments in<br />
Africa and South America ar e resource<br />
nationalism, domestic disputes and poor<br />
infrastructure.<br />
ACTION NEEDED TO ADDRESS DECLINE IN EXPLORATION<br />
AMEC is the peak national industry representative body for mineral<br />
exploration and mining companies within Australia with mor e than<br />
360 members.<br />
“<strong>The</strong> development of a National Exploration Strategy is an essential<br />
policy initiative to reverse the current trend in the decline in the<br />
share of greenfields exploration. A crucial element of such a strategy<br />
will be the need to consider mechanisms to encourage investment<br />
in minerals exploration, such as the Exploration T ax Credit model<br />
previously proposed by AMEC which is a hybrid of the Canadian<br />
Flow Through Shares, tax cr edits and dividend imputation<br />
schemes,” Simon Bennison says.<br />
July/August 2011 | <strong>ASIA</strong> <strong>Miner</strong> | 47
Australian Junior Explorers<br />
REX RAISES $40 MILLION TO BANKROLL HILLSIDE<br />
REX <strong>Miner</strong>als has raised $40 million to<br />
bankroll its flagship Hillside Copper Project<br />
within the Pine Point copper belt in South<br />
Australia although North American equities<br />
markets are yet to get on board. <strong>The</strong> funds<br />
will take Rex through the various feasibility<br />
studies to mine development and first pr oduction<br />
by the end of 2015.<br />
<strong>The</strong> company says it is surprised by a lack of<br />
interest in the project by North American investors.<br />
Rex’s managing director Steve Olsen<br />
says North America’s equities markets, which<br />
are renowned for their knowledge of gold and<br />
copper markets, have yet to get aboar d one<br />
of South Australia’s biggest success stories.<br />
“Most pleasingly, almost three-quarters of<br />
the commitments in the capital raising came<br />
from our major Australian shareholders and the<br />
48 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2011<br />
remaining quarter from London-based equities<br />
players,” he says. “Yet despite a global roadshow<br />
prior to the raising, we have yet to attract<br />
support from the North American equities markets<br />
– even though Hillside on South Australia’s<br />
Yorke Peninsula is a major copper project<br />
now visibly right on the horizon.”<br />
Rex is set to announce a resource upgrade<br />
during July after r ecent successful shallow<br />
and high grade drill intersections were confirmed<br />
within the pit design ar ea. <strong>The</strong> current<br />
resource is 217 million tonnes @ 0.7% copper,<br />
0.2 grams/tonne gold and 12.4% iron for<br />
a contained 1.5 million tonnes of copper and<br />
1.4 million ounces of gold.<br />
<strong>The</strong> project is within the Gawler Craton,<br />
which hosts Australia’s largest historical copper<br />
mines including Olympic Dam, Prominent<br />
Hill and Carapateena. <strong>The</strong> company has confirmed<br />
copper-gold mineralization on three separate<br />
structures at Hillside.<br />
Pre-feasibility studies at Hillside ar e scheduled<br />
to be completed in the September<br />
quarter, backed up by more regional exploration<br />
with the DFS due for completion in the<br />
second half of 2013.<br />
“Our view remains that Hillside is a very robust<br />
copper project with good margins at low<br />
copper prices so that obviously pr ovides for<br />
significant leverage to any tr end higher in<br />
copper price,” says Steve Olsen.<br />
<strong>The</strong> discovery of mor e copper in the pit<br />
area is expected to r educe the likely strip<br />
ratio, with the estimated cost of mining cur -<br />
rently at $13.50 a tonne. Pr ocessing costs<br />
are estimated to be $10 a tonne.<br />
MAIDEN POTASH RESOURCE AT KARINGA CREEK<br />
RUM Jungle Resour ces and joint ventur e<br />
partner Reward <strong>Miner</strong>als have announced a<br />
maiden resource estimate for the Karinga<br />
Creek potash project in the central Northern<br />
Territory. Data from 63 drill holes and 73 brine<br />
samples from the project’s 23 salt lakes has<br />
been included in the estimate, with a total of<br />
530,000 tonnes of potash fr om 30 million<br />
tonnes of brine in 16 salt lakes.<br />
<strong>The</strong> company says the schoenite r esource,<br />
which is expected to be an intermediate pr oduct<br />
from the brine and then treated to extract<br />
potassium sulphate, totals 1.2 million tonnes.<br />
<strong>The</strong> estimate has been calculated for the<br />
potassium dissolved in brines contained in<br />
drill sediments. Rum Jungle says the total resource<br />
is an inferred and indicated estimate<br />
as the JORC code was not designed in<br />
connection with minerals dissolved in brines,<br />
meaning there is a greater geological uncertainty<br />
with this estimate than other minerals.<br />
No test work has yet been undertaken to<br />
explore the commercial processing of the brines,<br />
with the company believing potash ex-<br />
Drilling at Rex <strong>Miner</strong>als’ Hillside Copper Project<br />
in the Gawler Craton of South Australia.<br />
traction is technically feasible. However, Rum<br />
Jungle’s managing director David Muller says<br />
recovery and economics will depend on<br />
many factors including the brine chemistry .<br />
“Halite and/or thenardite could potentially be<br />
produced as by-products.<br />
“Work programs now under way at the site<br />
are expected to significantly increase the size<br />
and confidence of the schoenite brine r esource.<br />
A recent archaeological survey and<br />
new access tracks within the area will help to<br />
expand the resource definition.”
MAIDEN RESOURCE FOR MOOLYELLA PROJECT<br />
LITHEX Resources has announced a maiden<br />
1.9 million tonne inferr ed tin/tantallum r esource<br />
at it Moolyella project in Western Australia’s<br />
northwest. <strong>The</strong> company owns four<br />
projects in the East Pilbara and Gascoyne regions<br />
totalling about 800sqkm.<br />
Moolyella is about 23km northeast of the<br />
township of Marble Bar and is accessible by<br />
sealed road. <strong>The</strong> company completed an<br />
auger drill program and volumetric survey of<br />
the large tailing stockpiles at the site earlier<br />
this year, with preliminary metallurgical test<br />
work indicating recoveries of up to 84.7% tin<br />
and 66.3% tantalum. Rock chip test have<br />
also revealed the pr esence of highly anomalous<br />
lithium of up to 1.82%. Results from<br />
a maiden drill program at the Pegmatite and<br />
Elluvial Gullies within Moolyella are expected<br />
to be received soon.<br />
At its Pilgangoora project, Lithex has confirmed<br />
several pegmatite bodies after ground<br />
reconnaissance during the first quarter. <strong>The</strong><br />
company’s exploration activities at this site<br />
targeted deposits of tin, tantalum and lithium<br />
and further rock-chip sampling and mapping<br />
has been scheduled.<br />
Pilgangoora incorporates two exploration licences<br />
and a pr ospecting licence about<br />
120km southeast of Port Hedland. It takes in a<br />
highly mineralized region of the Pilbara with a<br />
strong history of commercial tantalum produc-<br />
tion and lithium bearing feldspar pegmatites.<br />
<strong>The</strong> Lithex tenements are near Altura Mining’s<br />
lithium resource which was updated recently to<br />
13.29 million tonnes @ 1.21% lithium.<br />
Lithex is continuing its exploration activities<br />
at the Shaw River pr oject with a focus on<br />
heavy rare earth elements. This pr oject is<br />
about 50km southwest of Marble Bar and<br />
has historically pr oduced tin and tantalum<br />
concentrates from alluvial sources.<br />
Managing director Rob Mandanici says the<br />
company will target the hard rock sources of<br />
these alluvial deposits as well as r emaining<br />
previously identified un-mined deposits.<br />
“<strong>The</strong>re is significant potential for pegmatite<br />
hosted heavy rare earth mineralization in the<br />
Shaw River area. Australia’s first rare earth<br />
mine was located on the pr oject which was<br />
worked in 1913 and 1930 and yielded about<br />
two tonnes of gadolinite. W e are currently<br />
awaiting results from an airborne hyperspectral<br />
survey across the Shaw River tenements<br />
with the aim of identifying pegmatite r ocks<br />
which are known to host heavy rare earth tin,<br />
tantalum and lithium mineralization in the<br />
area,” he said.<br />
Lithex has applied for additional tenement<br />
and exploration licences at its Arthur River project<br />
which is 250km east of Carnarvon. This tenement<br />
is also considered to be prospective<br />
for tin, tantalum and other rare metals.<br />
Australian Junior Explorers<br />
<strong>The</strong> company has appointed a new full-time<br />
exploration manager to oversee activities at<br />
these projects. Brendan Borg has more than<br />
15 years experience in exploration, envir onmental<br />
and project development roles.<br />
CARPENTARIA TO EMBARK ON BFS AT HAWSONS<br />
A $25 MILLION payment to Carpentaria Exploration<br />
from Bonython Metals Group (BMG)<br />
is funding a bankable feasibility study (BFS) for<br />
the largest magnetite pr oject in New South<br />
Wales (NSW). BMG owns a 40% stake in the<br />
1.4 billion tonne Hawsons Ir on Project and is<br />
required to complete the BFS within two years.<br />
A pre-feasibility study has already identified<br />
the mine would initially start up as a 5 million<br />
tonnes per annum operation, with scheduled<br />
ramp up to 20 million tonnes. <strong>The</strong> starter pit<br />
at Hawsons will have a mine life of 20 years<br />
with the project having an overall mine life of<br />
more than 50 years.<br />
Carpentaria’s executive chairman Nick<br />
Sheard says the company is entering a very<br />
exciting time. “Our pre-feasibility study, audi-<br />
ted in September last year, provided us with<br />
the green light to progress the project to the<br />
next stage, which is our bankable feasibility<br />
study. We expect to commence the BFS in<br />
the next couple of months and it should take<br />
about two years to complete. <strong>The</strong>reafter, we<br />
are confident we will then be able to embark<br />
on the next stages of the project.”<br />
<strong>The</strong> Hawsons project is about 60km southwest<br />
of Broken Hill in the far west of NSW<br />
near the South Australian border and includes<br />
an exploration target of up to 11 billion tonnes<br />
which could contain up to 1.9 billion tonnes of<br />
high grade magnetite concentrate. This gives<br />
the mine a potentially longer life than the pr efeasibility<br />
study’s allowance of 24 years.<br />
<strong>The</strong> project’s close proximity to existing rail<br />
<strong>The</strong> Pilgangoora project of Lithex<br />
Resources with mineralization<br />
indicated by yellow stars.<br />
and port services and water, power and workforce<br />
infrastructure bode well for its accelerated<br />
development. It also boasts low cost<br />
mining and processing costs because of a low<br />
strip ratio, wide mining widths and soft ore.<br />
Carpentaria will now work on obtaining regulatory<br />
approvals, finalizing full access agreements,<br />
securing a mining lease, defining the<br />
project’s full transport options, continuing environmental<br />
studies and r efining its mining<br />
and processing options.<br />
<strong>The</strong> company has already identified 13 million<br />
tonnes of spare annual rail capacity from<br />
Broken Hill and has signed a Memorandum<br />
of Understanding with Flinders Port at Port<br />
Pirie for annual availability of up to 30 million<br />
tonnes of port capacity.<br />
July/August 2011 | <strong>ASIA</strong> <strong>Miner</strong> | 49
Australian Junior Explorers<br />
1.7 BILLION TONNE MAIDEN MINERAL SAND RESOURCE<br />
METALLICA <strong>Miner</strong>als says its inferr ed maiden<br />
mineral resource at the Glenaladale-Stockdale<br />
deposit within the Gippsland zircon-rutile heavy<br />
mineral sands (HMS) project has enhanced the<br />
southeast Victorian region as an emerging mineral<br />
sands province. Metallica completed a drill<br />
program at the Glenaladale main section across<br />
a 50sqkm area, after historical drilling indicated<br />
it was the higher grade section of the resource.<br />
<strong>The</strong> JORC-compliant r esource estimates<br />
the deposit hosts 1.7 billion tonnes @ 2.2%<br />
total heavy mineral (THM) containing 38 million<br />
tonnes of heavy mineral (HM). Metallica<br />
50 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2011<br />
says an inferred HMS assemblage for the resource<br />
estimate taking in a closer spaced drill<br />
area has shown a significant zir con component<br />
which is the most valuable of the HMS<br />
assemblage. This inferred resource has been<br />
measured at 360 million tonnes @ 2.7%<br />
THM, containing 15% zircon, 4% rutile and<br />
50% combined titanium minerals.<br />
<strong>The</strong> Stockdale-Glenaladale deposit is 35km<br />
west of the town of Bair nsdale with an estimated<br />
500-800 million tonnes of mineralized<br />
sand ranging in grade fr om 3-4% HMS, including<br />
14-18% zircon, 5-7% rutile and 35-<br />
55% titanium minerals. Its exploration licences<br />
are held by Rio Tinto, however an agreement<br />
was signed in August 2011 for Metallica<br />
subsidiary Oresome to explore four of the licences<br />
with the option to pur chase a 100%<br />
interest in the future.<br />
Metallica’s managing director Andrew Gillies<br />
says the mineral resource is broadly in line<br />
with the company’s previously stated exploration<br />
target. “We are very encouraged by the<br />
large sixe of the r esource, its grade and the<br />
amount of zircon in the mineral assemblage.<br />
<strong>The</strong>se factors will assist greatly in driving attractive<br />
project economics.<br />
“<strong>The</strong> delineation of the mineral resource is a<br />
major milestone in our due diligence work for<br />
the potential acquisition of the pr oject from<br />
Rio Tinto,” he says.<br />
<strong>The</strong> company is now working to complete a<br />
scoping study at the site in order to gain a better<br />
understanding of the pr oject’s potential.<br />
Metallica has commissioned HMS specialist<br />
consulting group RJ Robbins to complete the<br />
study, which will form an important part of the<br />
company’s ongoing due diligence to potentially<br />
acquire the project from Rio. Results of the<br />
study are expected shortly.<br />
“Gippsland is shaping up to be a medium<br />
grade, large tonnage HMS r esource in a favourable<br />
location and we look forward to the<br />
project’s indicative economics from the scoping<br />
study,” said Andrew Gillies.<br />
JV TO EXPAND BROWNS RANGE HREE PROJECT<br />
NORTHERN <strong>Miner</strong>als has formalized a joint<br />
venture (JV) with Toro Energy to expand its<br />
flagship Browns Range HREE project in Western<br />
Australia after the completion of due diligence<br />
by both parties. <strong>The</strong> JV allows for<br />
Northern <strong>Miner</strong>als to ear n up to 80% of the<br />
mineral rights in Toro’s Northern Territory tenements,<br />
other than uranium. <strong>The</strong> agreement<br />
also secures the tenements adjacent to the<br />
Browns Range pr oject to consolidate the<br />
company’s strong land position in what’s regarded<br />
as a highly prospective region.<br />
“We are very excited about the expansion<br />
of our HREE footprint at Browns Range, and<br />
working with Toro in the region,” says Northern’s<br />
managing director George Bauk. “We<br />
Drilling by Metallica <strong>Miner</strong>als at the<br />
Glenaladale main section of the<br />
Gippsland HMS project in Victoria.<br />
have achieved further outstanding drilling results<br />
from our Br owns Range pr oject and<br />
some exciting regional results with new exploration<br />
targets. This makes the JV with Toro<br />
even more exciting and increases our scope<br />
to build a significant HREE mineral inventory<br />
in the Browns Range region.”<br />
<strong>The</strong> JV expands the company’s landholding<br />
on the Browns Range dome and will form<br />
part of its broader HREE exploration and development<br />
program for this year . It covers<br />
seven tenements over 1403sqkm in Western<br />
Australia near the Norther n Territory border,<br />
about 150km southeast of the township of<br />
Halls Creek in the Tanami desert.<br />
Northern must spend $4 million on explo-<br />
ration during the next thr ee years to ear n a<br />
51% interest, with the option of incr easing it<br />
to 70% by spending an additional $2 million<br />
up to 2017. <strong>The</strong> company may also increase<br />
its equity again to 80% by completing a bankable<br />
or definitive feasibility study.<br />
Northern will commence an exploration program<br />
across the JV tenements as soon as possible<br />
this year, starting with airbor ne surveys.<br />
“Our aim is to test whether the geological setting<br />
identified at our Browns Range HREE project<br />
continues into the NT,” says George Bauk.<br />
Browns Range hosts a number of prospects<br />
with high value, HREE in xenotime mineralization<br />
including high levels of dysprosium and yttrium<br />
which are in short supply globally.
KAOLIN EXPLORATION TARGET SET AT POOCHERA<br />
MINOTAUR Exploration has announced an<br />
exploration target at its Poochera Kaolin Project<br />
on the west coast of South Australia’ s<br />
Eyre Peninsula, about 50km inland fr om the<br />
town of Streaky Bay.<br />
Five deposits have been<br />
defined from 220 historical<br />
and 224 r ecent drill<br />
holes at the tenement, totalling<br />
an estimated exploration<br />
target of 570 to 810<br />
million tonnes of white kaolinized<br />
granite.<br />
<strong>The</strong> company’s exploration<br />
director Tony Belperio<br />
says the kaolinized<br />
granite has formed as a<br />
simple, in-situ, weathered<br />
mantle of varying thickness<br />
over coarse-grained<br />
granite and older metamorphic<br />
rocks. He says<br />
the variation in sour ce<br />
rocks may contribute variations<br />
in kaolin form and quality, which may<br />
have positive implications for a range of potential<br />
niche kaolin markets.<br />
Product trials are about to begin on the kaolin<br />
from one of the deposits known as Carey’s<br />
Well, which hosts the world’ s purest<br />
quality kaolin. Minotaur’s managing director<br />
Andrew Woskett says a new calcining circuit<br />
has been installed on the pilot plant at Str eaky<br />
Bay and on which bulk sampling trials<br />
have been conducted.<br />
“<strong>The</strong> extra circuit will allow Minotaur to expand<br />
the range of trials on various kaolin<br />
based products in tandem with continuous improvement<br />
in the deposit’s resources and chemistry.<br />
Our test work has indicated the<br />
potential for Carey’s Well to yield 8 million tonnes<br />
of the purest quality kaolin available worldwide<br />
and as we move thr ough assessment<br />
and development phases and decisions, we<br />
wish to optimize the range of products that this<br />
Australian Junior Explorers<br />
potential SA new mine can deliver.”<br />
At an envisaged annual product output rate<br />
of 100,000 tonnes, Andrew Woskett says the<br />
current resource is suf ficient to support a<br />
mine life of 75-80 years. <strong>The</strong> company is satisfied<br />
that the r esource<br />
base of 16.3 million ton-<br />
nes of ‘bright white’ kaolinized<br />
granite with low iron<br />
and titanium content is<br />
more than adequate to<br />
take the pr oject through<br />
feasibility. <strong>The</strong> 16.3 million<br />
tonnes of ‘bright white’<br />
kaolinized granite will yield<br />
8 million tonnes of -45<br />
micron kaolin.<br />
More commonly known<br />
as ‘china clay’, kaolin is a<br />
naturally occurring industrial<br />
mineral that is an essential<br />
ingredient in<br />
multiple and extremely diversified<br />
applications including<br />
as a filler, extender, raw material and<br />
pigment in paper, paint, polymers, food, medicine<br />
and ceramics. Minotaur believes Carey’s<br />
Well can meet the r equirements of<br />
specialist users at a time when the surging<br />
Asian, Chinese and Indian economies ar e<br />
putting unprecedented pressures on historic<br />
sources of quality kaolin supply.<br />
PROGRESS MADE ON DEFINITION OF ARTHURVILLE PROJECT<br />
RAPID progress is being made on the definition<br />
of Minotaur Exploration’s Arthurville base<br />
metals project in central New South Wales. A<br />
targeted airborne electro-magnetic survey<br />
completed over a 77sqkm area of the site has<br />
identified a large number of bedr ock targets<br />
requiring follow-up investigation.<br />
<strong>The</strong> exploration pr ogram at Arthurville,<br />
about 50km southeast of the city of Dubbo,<br />
is being funded through an exploration agreement<br />
involving Minotaur, Mitsubishi Metals<br />
and Mitsubishi Corporation.<br />
<strong>The</strong> Arthurville tenement straddles the<br />
northern extension of the Or dovician Molong<br />
volcanic belt, which is considered to be<br />
prospective for porphyry-r elated copper-<br />
Minotaur Exploration’s Poochera<br />
Kaolin Project is on South<br />
Australia’s west coast.<br />
gold mineralization and volcanic-hosted<br />
massive sulphide base metal deposits.<br />
Augur Resources’ Yeoval copper deposit is<br />
5km to the south and Alkane Resour ces’<br />
Toongi rare earth deposit is 6km to the west<br />
of the Arthurville tenement.<br />
Minotaur’s exploration director Tony Belperio<br />
says data fr om the airbor ne survey<br />
has confirmed more than 100 geophysical<br />
anomalies at Arthurville require further evaluation.<br />
“<strong>The</strong>se ‘bedrock-sourced’ anomalies<br />
are derived from systematic evaluation<br />
of time-varying conductive response as they<br />
can be largely masked by the r esponse of<br />
conductive cover.<br />
“Through integration with geology , ma-<br />
gnetics and mineral occurrence data, these<br />
anomalies are being reduced to those of<br />
highest priority for further field evaluation<br />
that will include soil geochemistry, rock chip<br />
sampling, petrology and gr ound geophysics,”<br />
he says.<br />
<strong>The</strong> airborne survey was undertaken by<br />
Geotech Airborne Geophysical Surveys<br />
using their proprietary VTEM system over<br />
two select areas corresponding to alteration<br />
systems within the Molong volcanic belt and<br />
adjacent to the Yeoval batholith.<br />
Work is continuing on further defining<br />
these and other base metal targets from the<br />
airborne survey and their prioritization for<br />
follow-up ground surveys.<br />
July/August 2011 | <strong>ASIA</strong> <strong>Miner</strong> | 51
Australian Junior Explorers<br />
CONSTRUCTION OF LUCKY BAY PORT UNDER WAY<br />
CONSTRUCTION of IronClad Mining’s Lucky<br />
Bay port facility is under way , after the company<br />
received approval from the South Australian<br />
government and finalized its detailed<br />
design. <strong>The</strong> project is a unique concept aimed<br />
at cutting road and rail transport distance from<br />
mine to port by about 350km.<br />
Significant works, including an 80 metr e<br />
channel extension, loading dock, and acoustic<br />
mounds and barriers, are required at the existing<br />
harbour. Initially, IronClad will freight its iron<br />
ore 156km by road to Lucky Bay then load it<br />
onto barges to take to vessels anchored offshore<br />
in the Spencer Gulf.<br />
IronClad will develop its floating port 10km<br />
offshore at Lucky Bay, to be serviced by two<br />
company-owned self propelled barges. Construction<br />
of the first of these barges in China is<br />
40% complete and the 57 metre-long vessel is<br />
expected to be finished by August. <strong>The</strong> port is<br />
expected to take three years to complete but<br />
will become a much closer alter native to the<br />
current option of Port Adelaide which is almost<br />
500km from the mine site. It’s expected the facility<br />
will open up a new multi-user shipping<br />
avenue for South Australian exporters.<br />
A recent capital injection of $12.1 million from<br />
the successful conversion of 16.2 million options<br />
as well as a $13 million investment fr om<br />
strategic share placements will be used to fund<br />
the construction costs. Part of the placement<br />
includes an offtake agreement with New Page<br />
Investments, which secures up to 50% of the<br />
iron ore produced from the Wilcherry Hill mine<br />
52 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2011<br />
for the first four years of production. New Page<br />
must also pay Ir onClad 95% of the agr eed<br />
value of the iron ore on each ship from the Luck<br />
Bay port within 30 days of its departure.<br />
Wilcherry Hill is 105km west of South Australia’s<br />
steel industry capital of Whyalla, and<br />
about 40km north of Kimba in the norther n<br />
Eyre Peninsula. It covers four tenements over<br />
an area of almost 1000sqkm. Access into the<br />
project area is via the Eyre Highway to Kimba<br />
and then graded service r oads and pastoral<br />
station tracks. IronClad produced its first ship-<br />
ment of iron ore from the Wilcherry Hill magnetite<br />
project in February this year, with a target of<br />
producing up to one million tonnes of premium<br />
grade direct shipping ore by January 2013. It<br />
also began construction of a dry magnetic separation<br />
(DMS) plant.<br />
Annual production is planned to ramp up rapidly<br />
at the pr oject, to become a 12 million<br />
tonne operation by 2015, when production will<br />
be shifted to the company’s nearby Hercules<br />
deposit which hosts a JORC inferred resource<br />
of 198 million tonnes.<br />
STROMBERG RARE EARTH RECOVERIES IMPROVE<br />
TUC Resources has incr eased heavy rar e<br />
earth element (HREE) recoveries by 10% at<br />
its flagship Str omberg prospect within the<br />
Daly project in the Northern Territory. Metallurgical<br />
test work results have confirmed recoveries<br />
of up to 85% from leach tests on the<br />
HREE rich clays found at the deposit.<br />
Two composite samples were tested and<br />
the 85% recovery was achieved using leaching<br />
by sulphuric acid after an initial caustic<br />
wash using sodium hydroxide.<br />
TUC’s managing director Ian Bamborough<br />
says work indicates that r ecovery from<br />
lower grade material is comparable to hig-<br />
A schematic of the gravity separation circuit proposed by IronClad Mining.<br />
her grade with a 0.2% to 0.4% total rar e<br />
earth oxide (TREO) composite giving a 77%<br />
recovery of total rare earth elements (TREE).<br />
“It appears that the caustic wash improves<br />
the amenability of the mineralized material<br />
to the leach process.”<br />
TUC says leaching of the HREE dir ectly<br />
into solution can result in a more direct processing<br />
route to an HREE intermediate/carbonate<br />
material, which would allow the<br />
company to generate mor e competitively<br />
valued product, when compared to other<br />
concentration methods.<br />
<strong>The</strong> leach tests also extracted up to 93% of<br />
uranium mineralization, possibly creating a secondary<br />
revenue stream for the project, whilst<br />
simultaneously serving to boost marketability<br />
and exportability of any futur e HREE product.<br />
<strong>The</strong> company says while these results are impressive,<br />
test work is still at an early stage.<br />
“To date 70% recovery of yttrium has been<br />
achieved with a respectable acid consumption<br />
of 371kg/tonne. Ef forts are now being<br />
made to improve the efficiency of the process<br />
including reducing reagent consumption by<br />
testing variation in leach times, acid to mineralized<br />
material mixes, and leach temperature,”<br />
says Ian Bamborough.
Australian Junior Explorers<br />
PRINCESS WILL ADD TO MULGA ROCKS URANIUM RESOURCES<br />
ENERGY and <strong>Miner</strong>als Australia’s (EMA) newly<br />
discovered Princess uranium deposit at the<br />
Mulga Rock project in southern Western Australia<br />
is expected to add significantly to the already<br />
substantial resource. Highlights of a 260<br />
hole drill program at Princess include significant<br />
uranium intersections<br />
with grades up to<br />
5968ppm and continuous<br />
mineralized intervals<br />
to 8.22 metres<br />
thick at less than 40<br />
metres depth.<br />
<strong>The</strong> deposit is a<br />
single body about<br />
1.4km-long and between<br />
100 and 500<br />
metres wide. <strong>The</strong> air<br />
core drilling and<br />
gamma logging pr ogram<br />
covered a total of<br />
17,788 metres at the<br />
site, and was part of a<br />
$1.21 million exploration<br />
schedule for the<br />
March 2012 quarter.<br />
EMA says the new deposit confirms the<br />
significant potential of its large landholding at<br />
Mulga Rock. Chemical assay testing of air -<br />
core cuttings from the drill holes is under way,<br />
and the company says compilation of data to<br />
be included in a JORC-compliant r esource<br />
54 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2011<br />
estimate has also commenced.<br />
On site analysis of more than 6000 samples<br />
have provided indications of the uranium grades<br />
of the mineralization, which EMA believes<br />
suggest potential for basement-hosted primary<br />
mineralization including uranium, base<br />
and precious metals. <strong>The</strong> company is working<br />
to identify further drill targets at the site.<br />
<strong>The</strong> Mulga Rock pr oject is about 240km<br />
northeast of the r egional city of Kalgoorlie-<br />
Boulder. EMA owns 915sqkm of land at the<br />
site, which is proving promising for low-cost<br />
uranium resources. <strong>The</strong> project consists of<br />
four separate deposits - Ambassador , Emperor,<br />
Shogun and Princess - making it one of<br />
Australia’s largest undeveloped uranium r esources.<br />
EMA says the deposits also contain nickel,<br />
cobalt, rare earth elements,<br />
yttrium, scandium,<br />
vanadium, copper,<br />
zinc and gold, with some<br />
of these commodities to<br />
be produced as a byproduct<br />
from uranium<br />
production.<br />
Mulga Rock shar es<br />
access infrastructure<br />
with AngloGold Ashanti’s<br />
Tropicana gold pr oject,<br />
with the road construction<br />
nearing completion.<br />
EMA’s managing dir ector<br />
Mike Fewster says<br />
the company has the<br />
right to use about<br />
160km of the road as alternate<br />
access to its<br />
Mulga Rock project.<br />
Meanwhile, base line studies are continuing<br />
for the development of the Ambassador deposit,<br />
with an environmental scoping study<br />
being finalized as the basis for the envir onmental<br />
assessment process.<br />
THOMSON REVEALS COPPER-GOLD AT CUTTABURRA<br />
FURTHER copper-gold mineralization has<br />
been confirmed at Thomson Resources’ Cuttaburra<br />
deposit in northwest New South<br />
Wales. Assay results continue to highlight the<br />
good exploration potential for significant Intrusive<br />
Related Gold (IRG) deposits that Thomson<br />
believes may be present in this region.<br />
Selected intervals from a 480 metre wide alteration<br />
system intersected in a r ecent drill<br />
program have yielded significant gold and<br />
copper results including 1.46 grams/tonne<br />
gold, 0.1% copper and 10.9 grams/tonne silver<br />
in 3.3 metres from 448.5 metres depth,<br />
including 3.7 grams/tonne gold, 0.2% copper,<br />
29 grams/tonne silver , 0.1% lead and<br />
0.1% bismuth in 1 metre from 449.8 metres.<br />
<strong>The</strong> Princess deposit is not far from EMA’s other uranium deposits at Mulga Rocks.<br />
A reverse circulation drill program is being<br />
designed to test the shallower parts of Cuttaburra,<br />
with this method also allowing a better<br />
estimate of gold content. <strong>The</strong> company’s<br />
plans to move heavy drill equipment into the<br />
area have been delayed by wet weather and<br />
flooding, with the Thomson Fold Belt area receiving<br />
its highest rainfall on record for the last<br />
two years. Surface exploration did continue<br />
at the company’s Byrock project, with several<br />
ironstone gossans at the Kenilworth Station<br />
prospect returning portable XRF results of up<br />
to 57% iron with anomalous tungsten, lead<br />
and zinc. Thomson will continue to work on<br />
defining a possible drill target at this prospect.<br />
<strong>The</strong> company has signed thr ee new joint<br />
venture agreements which it says will pr ovide<br />
access to new pr ospects at the Ghostrider<br />
project 100km west of Cobar and the Achilles/Tooroonga<br />
project 180km south of Cobar.<br />
Within the Ghostrider pr oject area, the Bulla<br />
Bulla anomaly is the most significant prospect.<br />
Historic drilling defined a 4km-long anomaly<br />
with maximum values of 1.15% lead, 0.22%<br />
zinc, 0.12% copper and 25 ppm silver.<br />
At the Achilles/Tooroonga joint ventures,<br />
the stand out prospect is at Mt Boorithumble<br />
which is 26km northwest on strike from<br />
Comet Resources’ Browns Reef project. A<br />
900 metre-long lead anomaly has been tested<br />
by one diamond drill hole and two percussion<br />
holes.
SUCCESS FOR NORTON IN PADDINGTON EXPLORATION<br />
MID-TIER gold producer and takeover target<br />
Norton Gold Fields has spent $3.7 million on<br />
exploration and resource development at its<br />
flagship Paddington tenements in W estern<br />
Australia. China’s Zijin Mining Gr oup has<br />
made a takeover bid for Norton, which the<br />
company’s Board has recommended that its<br />
shareholders accept. Norton has drilled 243<br />
holes over 26,495 metr es since embarking<br />
on a two year, $37 million accelerated pr ogram<br />
in January aimed at converting 700,000<br />
ounces in reserve to resource and identifying<br />
300,000 ounces in new resources.<br />
Norton’s managing dir ector Andre Labuschagne<br />
says the tenements which take in<br />
693sqkm of land near Kalgoorlie in one of the<br />
world’s most highly endowed gold provinces<br />
has an ore reserve of 16.1 million tonnes @<br />
1.94 grams/tonne gold for one million ounces<br />
of gold. “<strong>The</strong> resource development drilling<br />
strategy will target timely development of projects<br />
for the next five years. Gr eenfields exploration<br />
targets will also be developed to<br />
identify the next generation of deposits.”<br />
Significant intersections at several of the tenements<br />
during the latest drill phase include<br />
1.3 metres @ 43.5 grams/tonne gold fr om<br />
148.2 metres at the Homestead underground<br />
prospect; 1 metre @ 35.7 grams/tonne gold<br />
from 7 metres at the Enterprise prospect and<br />
18 metres @ 2.73 grams/tonne gold from 47<br />
metres at the Janet Ivy prospect.<br />
<strong>The</strong> company’s key target ar eas for r esource<br />
development have now been identified<br />
and include undergr ound resource<br />
evaluation at the Homestead and Black Flag<br />
prospects. <strong>The</strong> delineation of oxide and deep<br />
primary resource extensions will be investigated<br />
at the Enterprise and Janet Ivy prospects,<br />
while exploration teams will focus on the delineation<br />
of small open cut mining projects at<br />
Mount Pleasant including Rose W est-Violet,<br />
Green Gum and Golden Flag.<br />
Norton will focus its initial greenfields exploration<br />
work on the Bor der-Gidji project area<br />
Australian Junior Explorers<br />
which overlies strike extensions of the highly<br />
prospective Boulder-Lefroy mineralized structural<br />
corridor. <strong>The</strong> company has also under -<br />
taken exploration activities in r egional<br />
programs taking in the Breakaway Dam prospect,<br />
Lady Bountiful Extended pr oject and<br />
Golden Eagle prospect, with 24 holes drilled<br />
across these three areas.<br />
TORO STARTS DRILLING AT THESEUS URANIUM PROSPECT<br />
SOUTH-Australian based uranium company<br />
Toro Energy has begun a drill pr ogram at its<br />
<strong>The</strong>seus prospect in Western Australia. <strong>The</strong><br />
company aims to convert a major portion of<br />
the exploration target range (ETR) to an inferred<br />
resource. Last year Toro established an<br />
ETR of 20-40 million tonnes @ 400-500ppm<br />
uranium for 10,000-20,000 tonnes of uranium.<br />
<strong>The</strong> drill program is also following up on<br />
existing identified mineralization from previous<br />
drill programs outside of the ETR. A mud ro-<br />
Norton Gold Fields’ Paddington project is in the prolific Kalgoorlie gold province.<br />
tary rig has commenced the initial program of<br />
about 20,000 metres at the project.<br />
Toro’s managing director Greg Hall says,<br />
“It is very good news for Toro to be able to<br />
start this drilling program early in the season.<br />
Toro believes ther e is an excellent<br />
chance to convert the ETR estimate to an<br />
inferred resource over the next few months.<br />
We are looking forward to further positive<br />
news from <strong>The</strong>seus, especially after the highly<br />
successful extraction tests impr ove the<br />
probability of an ISR project.”<br />
<strong>The</strong>seus was discovered by Toro in 2009<br />
during a grassroots regional aircore drill program.<br />
Initial results highlighted the potential<br />
for sandstone-hosted uranium mineralization<br />
and further drilling in 2011 confirmed the presence<br />
of significant uranium mineralization.<br />
<strong>The</strong>re have been 130 holes drilled at the project<br />
with half of them r eporting a gamma,<br />
assay or prompt fission neutron (PFN) greater<br />
than 0.5 metres @ 100ppm uranium.<br />
July/August 2011 | <strong>ASIA</strong> <strong>Miner</strong> | 55
Australian Junior Explorers<br />
CORE EXPANDS DRILLING AT COPPER PROJECT<br />
AFTER receiving encouraging initial assays,<br />
Core Exploration has expanded the diamond<br />
drilling program at its flagship Yorke Peninsula<br />
copper project in South Australia. <strong>The</strong> ir on<br />
oxide copper gold (IOCG) prospect is next to<br />
Rex <strong>Miner</strong>als’ extensive copper deposit at the<br />
Hillside project, northwest of Port Augusta.<br />
Core Exploration’s managing director Stephen<br />
Biggins says, “We already have multiple<br />
intersections with significant copper<br />
results to date and still have more assays expected<br />
to be available in<br />
mid-May from the r emaining<br />
50% of holes drilled in<br />
that opening program.<br />
“<strong>The</strong>se initial hits have already<br />
encouraged our exploration<br />
team to<br />
recommence diamond drilling<br />
with an expanded pr ogram,<br />
including focus on<br />
the main W auraltee prospect<br />
where only 20% of the<br />
1500 metre length of the<br />
geophysical model has so<br />
far been tested by drilling.”<br />
Core Exploration says<br />
there is growing interest in<br />
56 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2011<br />
the copper sulphides found with zones of<br />
IOCG alteration on the Yorke Peninsula. <strong>The</strong><br />
company is also actively exploring its Fitton<br />
copper-uranium prospect in norther n South<br />
Australia as well as the Roxby Downs licence<br />
area situated near BHP Billiton’s Olympic Dam<br />
operation.<br />
<strong>The</strong> Fitton prospect, 25km north of the Beverley<br />
uranium mine, is in a pr oven worldclass<br />
uranium mining district and Cor e has<br />
recently identified very high levels of uranium<br />
and copper in outcrop. A zone of shearing related<br />
to mineralization has been mapped for<br />
more than 2000 metr es at surface on the<br />
newly named Scott Lee prospect.<br />
A sample of chloritized schist within a<br />
shear zone contained 2858ppm uranium<br />
which is a four-fold increase in the previous<br />
highest uranium value identified. In addition<br />
a number of new samples contained highly<br />
anomalous uranium above 100ppm for a<br />
strike length of more than 800 metres.<br />
<strong>The</strong> high levels of uranium<br />
and copper in the new and<br />
previous rock chip samples<br />
correlate well with r esults<br />
from previous soil surveys.<br />
<strong>The</strong> company planned to<br />
begin follow-up mapping,<br />
sampling and detailed r ock<br />
chip sampling of the entir e<br />
length of the mineralized<br />
shear zone during late June.<br />
Drilling of priority targets defined<br />
by these surveys is planned<br />
for August/September.<br />
Core is considering partnering<br />
its Roxby South project to<br />
fund drilling of IOCGU targets.<br />
VENTNOR’S FOURTH DRILLING PHASE TO TEST AT DEPTH<br />
BASE metals explorer Ventnor Resources has<br />
commenced the fourth phase of drilling at its<br />
Thaduna and Green Dragon copper project<br />
in central Western Australia. <strong>The</strong> deep drilling<br />
program is testing the pr ojected mineralization<br />
at up to 320 metres below the surface.<br />
<strong>The</strong> fourth phase at Thaduna aims to<br />
achieve a complete resource drill out above<br />
200 metres and to investigate the potential<br />
for economic mineralization below 200 metres<br />
along a strike length of 1000 metres.<br />
<strong>The</strong> company has completed 145 r everse-circulation<br />
drill holes over 18,700 metres<br />
and 15 diamond drill holes over 1517<br />
metres at Thaduna, while 89 reverse circulation<br />
holes over 11,643 metres and 2 diamond<br />
holes for 390 metr es have been<br />
drilled at Green Dragon.<br />
Assay results from the third drill phase have<br />
been received, including significant intersections<br />
such as 37 metr es @ 2.61% copper<br />
An in situ sample from the shear zone at Core’s Scott Lee prospect.<br />
from 111 metr es including 10 metr es @<br />
7.53% copper from 134 metres and 19 metres<br />
@ 1.85% copper from 246 metres including<br />
6.57 metres @ 3.93% copper and 19.2<br />
grams/tonne silver from 258 metres.<br />
<strong>Miner</strong>alization including chalcopyrite and<br />
bornite as semi-massive blebs and vein fill<br />
has been observed in a variety of host rocks,<br />
with the mineralization observed occurring irrespective<br />
of the host rock. Ventnor says intersections<br />
of br oad zones of primary<br />
mineralization have been made at various positions<br />
underneath the Thaduna pit.<br />
Significant mineralization has also been encountered<br />
at the Green Dragon prospect during<br />
the thir d drilling phase. Assay r esults<br />
include 10 metres @ 6.82% copper from 34<br />
metres including 6 metres @ 10.96% copper<br />
from 37 metres and 7 metres @ 4.43% copper<br />
from 75 metr es including 5 metr es @<br />
6.07% copper from 80 metres.<strong>The</strong> majority<br />
of the Green Dragon mineralization is chalcocite,<br />
which is hosted within a variety of stratigraphy<br />
greywacke and siltstones.<br />
<strong>The</strong> Thaduna and Green Dragon project is<br />
170km north of Meekatharra and takes in<br />
4216 hectares in the Doolgunna district,<br />
where historic mine pr oduction took place.<br />
Ventnor has two other projects nearby – the<br />
Warrawanda and Nickel Hills nickel tenements<br />
which cover 11,216 hectares. No exploration<br />
activities have been undertaken at<br />
these projects in the last quarter.<br />
Meantime, the company has been awarded<br />
funding by the Queensland gover nment to<br />
progress its Georgina Hills pr oject 200km<br />
southwest of Mt Isa. Ventnor says it will use<br />
the $125,000 grant to drill a 1200 metre hole<br />
to test and extensive, co-incident, magnetic<br />
and gravity anomaly consistent with the possibility<br />
of an IOCG deposit buried beneath the<br />
sedimentary cover.
MINERALIZATION EXTENDED AT DEFLECTOR<br />
GOLD-copper resources company Mutiny<br />
Gold has discovered new high-grade intersections<br />
which extend the defined mineralization<br />
100 metres to the north of its current measured<br />
and indicated resources at the Deflector gold<br />
deposit in Western Australia. Shallow drilling<br />
was carried out by the company to explore for<br />
open pit resources in the project’s north.<br />
<strong>The</strong> currently known Deflector deposit contains<br />
mineral resources of 3.4 million tonnes<br />
@ 4.9 grams/tonne gold, 5.7 grams/tonne silver<br />
and 0.85% copper for 530,000 ounces of<br />
gold, 620,000 ounces of silver and 29,000<br />
tonnes of copper. Measured and indicated resources<br />
total 2.1 million tonnes @ 5.2<br />
grams/tonne gold, 7.3 grams/tonne silver<br />
and 1.1% copper for 350,000 ounces of<br />
gold, 490,000 ounces of silver and 22,000<br />
tonnes of copper<br />
Highlights of the drill results include 6 metres<br />
@ 4.45 grams/tonne gold and 0.2% copper<br />
from 40 metr es, 4 metr es @ 10.23<br />
grams/tonne gold from 75 metres and 2 metres<br />
@ 4.92 grams/tonne gold and 0.4% copper<br />
from 92 metr es. Deeper diamond drill<br />
holes were completed to extend the under -<br />
ground resources to the south of the main<br />
known area of mineralization, with highlights<br />
including 2 metres @ 21.35 grams/tonne gold<br />
and 1.06% copper from 193 metres and 2<br />
metres @ 9.64 grams/ tonne gold and 1.1%<br />
copper from 209 metres.<br />
<strong>The</strong> encouraging results will be included in<br />
the positive economics alr eady revealed in<br />
the company’s definitive feasibility study (DFS)<br />
for the West Australian project, within the Gullewa<br />
tenements in the south Mur chison region.<br />
<strong>The</strong> latest drill r esults have come from<br />
the first seven holes of a RC drill pr ogram<br />
which was designed to r evise the resource<br />
estimation. More drill results still pending will<br />
also be included in the update.<br />
“<strong>The</strong> drill r esults continue to extend the<br />
known length of mineralization of the central<br />
lode and indicate the open pit mine life,” says<br />
the company’s managing director John Gre-<br />
NEW WADDIKEE DRILLING TO TARGET GRAPHITE<br />
A DRILLING pr ogram targeting graphite is<br />
being planned at Monax Mining’s Waddikee<br />
manganese project in South Australia after<br />
assay results from the Argent and Stanley<br />
prospects confirmed the pr esence of graphite.<br />
<strong>The</strong> r esults are from four samples<br />
collected at the two sites to identify base metals<br />
and silver within the project.<br />
Coarse flake graphite of between 10.23%<br />
and 16.04% carbon has been confirmed by<br />
geochemical analysis. <strong>The</strong> company says the<br />
combination of coarse flake graphite and high<br />
carbon assay results make the Argent prospect<br />
a high priority graphite target.<br />
Monax has pr eviously outlined six target<br />
areas based on surface sampling, historical<br />
drilling and assessment of airborne electromagnetic<br />
data. <strong>The</strong> company’s managing director<br />
Gary Ferris says further field r econnaissance<br />
will be conducted to determine access for drilling<br />
and field check the six target areas.<br />
<strong>The</strong> Waddikee project is about 20km west<br />
of the township of Kimba in the central Eyr e<br />
Peninsula. It has potential for manganese and<br />
iron within the Proterozoic Hutchison Group<br />
metasediments, with mor e than 80km of<br />
strike length of the host sequence occurring<br />
within the Waddikee tenement.<br />
Initial rock chip sampling conducted in 2008<br />
identified a number of iron and manganese pro-<br />
Australian Junior Explorers<br />
eve. “Overall project economics of Deflector<br />
appear to be extending in line with robust forecasts<br />
of the scoping study and Mutiny’s resource<br />
expansion program. <strong>The</strong> mining team<br />
is impressed with the grade and width of the<br />
gold intercepts.”<br />
Mutiny is awaiting more drill results from the<br />
surface and down dip extensions of the more<br />
copper-rich west lode. <strong>The</strong> company plans to<br />
begin mine development in the second half of<br />
2012 leading to an open pit mining operation<br />
at Deflector, followed by underground mining<br />
after two years.<br />
Mutiny Gold’s processing facilities at Gullewa.<br />
spects in the tenement. <strong>The</strong>se samples r eturned<br />
highly encouraging iron, manganese and<br />
vanadium results of up to 60.1% ir on, 43.8%<br />
manganese and 1.13% vanadium oxide.<br />
Results at the most r ecently discovered<br />
Hodgins mineralization zone in the project’s<br />
northwest include 6 metres @ 20.9% manganese<br />
and 10 metr es @ 29.2% manganese,<br />
with one hole containing the highest<br />
grade manganese at an overall 52 metres @<br />
21.2% manganese. A drilling program at the<br />
Polinga prospect at Waddikee has resulted<br />
in high grade manganese of up to 29%<br />
being intersected and has also pr oduced<br />
further encouraging iron ore results.<br />
July/August 2011 | <strong>ASIA</strong> <strong>Miner</strong> | 57
Prior to the early 1980s, if poor soil conditions<br />
prevented a mining operation fr om safely accessing<br />
a rich vein of or e, that company had<br />
little recourse but to abandon the area in question<br />
and lose the or e contained within. It was<br />
generally accepted as a costly but unavoidable<br />
facet of the business. Today, however, techniques<br />
such as underhand cut-and-fill mining,<br />
in which cemented mill tailings ar e used to<br />
backfill the mined-out stope, allowing subsequent<br />
stopes to be cut beneath pr eviously<br />
mined areas, have established themselves as a<br />
viable alternatives for working in such conditions.<br />
While not as frequently relied upon—due<br />
in large part to the added costs associated<br />
with it—underhand cut-and-fill has pr oven to<br />
be a valuable method and found its way into<br />
mainstream mining practices. As a result, many<br />
companies are pulling high-quality or e from<br />
areas once viewed as unr eachable. One of<br />
those, Montana’s Stillwater Mining Co., has<br />
been successfully employing that approach for<br />
more than a decade now and, with the help of<br />
a KSP Series piston pump fr om Schwing<br />
Bioset to deliver the paste for that process, has<br />
literally “gone where no man has gone before.”<br />
Big Sky Mining<br />
Working a geological formation known as the<br />
J-M Reef, Stillwater Mining extracts,<br />
processes, smelts, refines and markets palladium<br />
and platinum, as well as a limited<br />
amount of copper, silver, rhodium and gold.<br />
Located at the foothills of the Beartooth<br />
Mountains in souther n Montana, the ar ea<br />
represents the only known considerable<br />
source of platinum group metals in the United<br />
States, and is one of the most significant<br />
sources outside Russia and South Africa.<br />
According to Wayne Fallis, Stillwater’s stationary<br />
equipment maintenance planner, the<br />
ore is mined, crushed fine, and then run<br />
through a flotation process. “At that point, it<br />
is concentrated to about 30% to 35% metals<br />
but there is still a good deal of dirt and<br />
rock contained within,” he said. “So it is<br />
sent to a refinery where it is run thr ough a<br />
flash furnace to remove the base metals,<br />
leaving a finished mineral product. <strong>The</strong> tail-<br />
ings from that initial extraction process are<br />
routed to the paste plant wher e, after processing,<br />
they will eventually become the<br />
mixture used in the backfilling process.”<br />
To make that paste happen the mill tailings<br />
are first mixed with a flocculent to settle out<br />
the slimes. Excess water is extracted and the<br />
residual material is pumped up and onto the<br />
belt of a vacuum filter to a depth of about ¾ in.<br />
(19 mm) where even more water is removed.<br />
“<strong>The</strong> filter is critical in that it not only further<br />
reduces water content, it also r emoves the<br />
slimes that were not taken in suspension,”<br />
said Fallis. “This is important because slimes<br />
can have an adverse effect on the final product<br />
by reducing the paste’s strength when the<br />
cement is setting up; that simply can’t be allowed.<br />
By the time material gets to the end<br />
Paste Thickening<br />
PUMP POWERS PASTE TO STILLWATER’S STOPES<br />
Some of platinum producer Stillwater Mining’s more distant—and more difficult— stopes require expensive underhand cut-and-fill mining.<br />
A sturdy piston pump has kept the paste flowing dependably to these sites for more than a decade.<br />
By Larry Trojak<br />
of the belt it is fairly dry. Water content is generally<br />
only about 18% to 20%. We then send<br />
it to a pug mill where the cement and any additives<br />
are mixed. When it drops out the other<br />
end it is finished product—paste ready to be<br />
pumped to a waiting stope.”<br />
Long Way to Go<br />
Where that stope will be depends, of course,<br />
on a host of factors. But it will generally be in<br />
an area with poor soil conditions—ar eas<br />
prone to rockbursts, for example. Stillwater’s<br />
Mine Engineer, John Marjerison, said the decision<br />
to go with underhand cut and fill starts<br />
with the initial core sample.<br />
“If we do the diamond drilling and geotech<br />
assessment and the core shows the ground<br />
to be very poor quality, we might decide that<br />
Due to occasional poor ground conditions, PGM producer Stillwater Mining Co. finds it necessary to use underhand<br />
cut-and-fill mining with paste backfill in about 10% of its stopes.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 59
Paste Thickening<br />
we have to take our licks on the first cut and<br />
really over-support that r ock. In some instances,<br />
we might even be shotcreting on the<br />
way in. Once we get that first cut done and<br />
backfilled with paste, however , we know<br />
what our back integrity is because we already<br />
know what that paste strength is.”<br />
At Stillwater, the distance to the stope<br />
being backfilled can be mor e than 7,000 ft<br />
(2.13 km). To move the paste that distance, in<br />
1998 the company installed a KSP 80 pump<br />
from Schwing Bioset (Somerset, W isconsin,<br />
USA) powered by twin 150-hp (112-kW)<br />
electric motors. Marjerison said that, despite<br />
the relatively limited role underhand mining<br />
plays in Stillwater’s everyday operation—it is<br />
used for roughly 10% of the stope backfilling—the<br />
pump is the ideal tool for the job.<br />
“To move a material with a high solids content<br />
that distance would be a challenge for<br />
any piece of equipment,” he said. “Granted,<br />
in many of the deeper stopes, the material<br />
has gravity helping it out. However, that’s not<br />
always the case; we’ve pumped some really<br />
long distances without much of a vertical<br />
drop at all. But the combination of the stoutness<br />
of the pump and our efforts to produce<br />
a nice consistent product out of the mixer has<br />
really paid off. When needed, we’ve been<br />
getting steady pour rates in the 90 ton-anhour<br />
range and holding to that rate for sixhour,<br />
12-hour, even 18-hour continuous<br />
pours. We’ve been very pleased with that<br />
level of performance.”<br />
60 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
Stillwater’s paste plant operation is monitored at an<br />
operator station, and pump operation can be supervised<br />
from its own control panel.<br />
Designed for Strength<br />
<strong>The</strong> mix design at Stillwater to which Marjerison<br />
refers, includes 10% to 12% cement<br />
content and a Euco-Fill 31 water -reducing<br />
and plasticizing admixture that develops 85<br />
psi (586 kPa) of unconfined compr essive<br />
strength (UCS) after seven days. Though<br />
lower in strength than paste used at other<br />
comparable mines also doing paste backfilling<br />
(a result of the large amount of –44 mi-<br />
Dewatered and treated mill tailings are processed in a pug mill and transferred through a hopper, visible in the<br />
background of the photo, to the Schwing Bioset KSP 80 pump, driven by dual 150-hp motors.<br />
cron [–325 mesh] particles in the mill tailings),<br />
the company benefits by being able to r educe<br />
velocity in the pipelines to about 2.1<br />
ft/sec (0.64 m/sec), less than one-thir d that<br />
of the other mines.<br />
<strong>The</strong> mine’s pristine location also puts it literally<br />
at the end of the power grid, making<br />
outages a distinct possibility, particularly in<br />
the harsh Montana winters. T o deal with a<br />
service interruption to the Schwing Bioset<br />
pump—which could be catastrophic if it occurs<br />
in mid-pour—the company maintains a<br />
diesel-powered oil field mud pump.<br />
“That is our only backup for getting the<br />
pipes cleared if we have an outage,” said Fallis.<br />
“If the paste hardens in the pipe it is a real<br />
nightmare. More importantly, however, if the<br />
pour is interrupted for any length of time, because<br />
of the risk of cold joints we can’t simply<br />
resume pouring. W e’ve had instances<br />
where that’s been the case and we’ve had to<br />
drill and blast a partially filled stope to start<br />
over. It’s not what we like to do.”<br />
Prior to backfilling, Stillwater first lays down<br />
a bed of anywher e from 1–1.5 ft (30.5–46<br />
cm) of broken rock or prep muck on the floor<br />
of the mined stope. Doing so not only of fers<br />
something of a buffer from subsequent blasting<br />
which will take place below the newlyfilled<br />
stope, but also acts as a base in which<br />
to drive DYWIDAG r einforcing bolts and<br />
plates for added str ength. <strong>The</strong> addition of<br />
wire mesh on the floor and construction of a<br />
7-ft-high (2.1-m) wooden r etaining wall to<br />
hold the paste in place, complete the preparation,<br />
making the stope ready for backfilling.<br />
“<strong>The</strong>re’s no denying that ther e is a lot<br />
more work and additional cost to doing underhand<br />
mining,” said Fallis. “It might take<br />
ten days or so just to get a stope ready for<br />
the pour, then the paste has to cure for another<br />
seven days after the pour itself. That’s<br />
two-plus weeks of lost pr oduction on that<br />
stope. However, we are now safely able to<br />
get to ore that we couldn’t before—and the<br />
key phrase there is ‘safely.’ Stillwater Mining<br />
places a tr emendous amount of emphasis<br />
on doing things the right way and<br />
has an enviable safety record within the industry<br />
to show for it. Underhand mining<br />
might only be used 10% of the time her e,<br />
but we’re happy to be able to make that<br />
10% happen.”<br />
LARRY TROJAK is president of Trojak<br />
Communications, Ham Lake, Minnesota,<br />
USA; Email: trojakcom@gmail.com.
A significant amount of the consulting work<br />
performed by Metso’s Process Technology<br />
and Innovation group involves Process Integration<br />
and Optimization (PIO) studies, which<br />
includes investigating the effects of drill and<br />
blast design and implementation on downstream<br />
processing. Critical to these studies<br />
is the ability to track specific or e into and<br />
through the plant.<br />
To increase the accuracy of this ore tracking,<br />
Metso Process Technology and Innovation<br />
(PTI) developed a system to track or e<br />
using RFID transponders called SmartT ag.<br />
Since its commercialization in 2007 SmartTag<br />
has been used in the majority of PTI’ s consulting<br />
projects and several permanent systems<br />
have been installed worldwide.<br />
According to PTI, the benefits of using<br />
SmartTag include: linking spatial mine data to<br />
time-based processing data; increased confidence<br />
in ore blending; proactive process<br />
changes for known ore types; and accurate<br />
measurement of r esidence times in stock<br />
piles and bins.<br />
Since 2007, there have been significant advancements<br />
with RFID technology that have<br />
allowed PTI to extend the r each of SmartTag<br />
beyond secondary crushing to tertiary crushing<br />
and even further downstr eam. This has<br />
been achieved by drastically reducing the size<br />
of the SmartTags from a diameter of 60 mm<br />
to 20 mm. <strong>The</strong> new smaller RFID tags have<br />
been successfully used in several studies.<br />
<strong>The</strong> SmartTag System<br />
A SmartTag RFID tag travels thr ough a mine<br />
and mineral processing plant in a series of simple<br />
steps. Initially, the tag and insertion location<br />
is logged using a handheld computer or PDA,<br />
then it is inserted into the ore (e.g., into a blasthole).<br />
<strong>The</strong> tag travels with the ore through digging,<br />
transport and pr ocessing before being<br />
detected at specific locations on conveyor<br />
belts, when the time and specific tag is<br />
recorded. <strong>The</strong> RFID tag data is then loaded<br />
into a database and analyzed as required.<br />
To achieve this, the SmartTag system requires<br />
five main components: <strong>The</strong> first is a<br />
PDA, which allows the initial RFID tag insertion<br />
process to become more efficient and<br />
accurate. Each RFID tag is added to the<br />
database using one of thr ee options—it is<br />
associated with a GPS coor dinate; it is associated<br />
with a predefined point (such as a<br />
blasthole); or it is associated with a new<br />
point, which can be accurately located later.<br />
Grinding Mills<br />
SmartTag<br />
Looking at the Next Generation, and Beyond<br />
Metso reports current developments and the future direction of its RFID-based ore tracking system<br />
<strong>The</strong> SmartTag system utilizes radio frequency identification (RFID) tags and detectors to track ores as they flow from<br />
the blast to the downstream processes and beyond. <strong>The</strong> insertion point of each SmartTag is registered using a PDA.<br />
Currently, the system does not allow for<br />
high-precision GPS but it can locate the<br />
nearest point in a series of predefined points,<br />
such as blastholes, and allow the user to associate<br />
RFID tags with these points.<br />
<strong>The</strong> next component in the system, the<br />
antenna, is located at the conveyor belts.<br />
<strong>The</strong> antenna both induces a charge on the<br />
tag and also receives a transmitted signal<br />
back from the tag. <strong>The</strong> design of the antenna<br />
is decided by two parameters, which<br />
are its size and its r obustness. <strong>The</strong> size of<br />
the antenna dictates the size and the<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 61
Grinding Mills<br />
strength of the field it radiates. For this application<br />
the area of field strong enough to<br />
charge the tag should be as large as possible;<br />
therefore, the antenna used for the<br />
SmartTag system is the largest available for<br />
this frequency of RFID system.<br />
An RFID reader then decodes the signal from<br />
the antenna and determines the ID of the RFID<br />
tag passing the antenna. Later versions of the<br />
readers also have auto-tuning capabilities<br />
which ensure that the maximum possible read<br />
distance is achieved at all times. In the Smart-<br />
Tag system the reader then transmits the ID<br />
using serial communications.<br />
A data logging or buf fer stage improves<br />
the reliability of the systems and also makes<br />
movable systems possible. <strong>The</strong> data logger<br />
receives data directly from the RFID reader,<br />
stores the IDs with the time they wer e detected<br />
and monitors vital system parameters,<br />
such as the tuning state of the<br />
antenna. <strong>The</strong> data logging stage also<br />
makes SmartTag less reliant on communi-<br />
cation links (such as wir eless) as the data<br />
are stored at the detection point until a link<br />
is established to the software applications.<br />
<strong>The</strong> critical communications links, such as<br />
the link between the antenna and the<br />
reader, are all wired and reliable.<br />
<strong>The</strong> core of the SmartTag software is an<br />
SQL (Structured Query Language) database.<br />
<strong>The</strong> database, located on a dedicated<br />
server, stores all of the information about<br />
the detection points, detected RFID tags<br />
62 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
and original locations. <strong>The</strong>r e are several<br />
SmartTag software applications which either<br />
input data into the database or use the data<br />
to output information. <strong>The</strong>se include the<br />
SmartTagServer, which reads data from the<br />
data loggers; the SmartTagPDA, which exchanges<br />
data with the PDAs and translates<br />
site blasthole layout diagrams; and the<br />
SmartTagRes, which calculates the r esidence<br />
time between two detection points.<br />
Adding Mini Tags<br />
To expand the applications of SmartT ag<br />
through and beyond secondary crushing, a<br />
mini RFID tag was required. To incorporate<br />
the mini RFID tags into the SmartT ag system,<br />
PTI faced two significant challenges;<br />
first, the reduced read distance; and second,<br />
making the mini tags robust.<br />
By reducing the size of the RFID tag, the<br />
size of the antenna in the tag is also reduced.<br />
<strong>The</strong> size of the antenna in the tag is dir ectly<br />
proportional to the amount of charge that is<br />
Figure 1—Smaller SmartTag mini-tags, shown here in comparison with the original-size tags, can pass through<br />
screening-media apertures down to 25-mm wide.<br />
induced for a given field strength. <strong>The</strong>refore,<br />
the read range of a tag will be reduced as the<br />
size of the tag is reduced.<br />
Through investigation, the 20-mm tags<br />
were found to have an insuf ficient read<br />
range for the standar d SmartTag installation.<br />
PTI trialed two methods for fixing this<br />
issue; one method was to use two antennas<br />
while another was to place the antenna<br />
closer to the RFID tags.<br />
Both systems wer e tested at an ir on ore<br />
mine. Both appr oaches, dual antennas or<br />
closer antenna distance, were found to have<br />
similar detection capability. However, based<br />
purely on the ease of installation, a single antenna<br />
located under the belt was chosen as<br />
the new standard installation method.<br />
<strong>The</strong> second challenge faced when incorporating<br />
the mini RFID tags into the Smart-<br />
Tag system was how to pr otect them<br />
sufficiently to survive a blast. A method previously<br />
used by PTI to achieve this was to<br />
encase the tags in a two-part epoxy . <strong>The</strong><br />
method works well for protecting the tags,<br />
and although it is time-consuming and expensive<br />
it is currently the preferred method<br />
for protecting the tags. Different encasing<br />
materials, such as reinforced nylon, are still<br />
being investigated.<br />
After encasing in epoxy , the mini-tags<br />
have a diameter of 20 mm and ar e shown,<br />
with a standard SmartTag as reference, in<br />
Figure 1. <strong>The</strong> size of the mini RFID tags allows<br />
them to pass easily thr ough screens<br />
with apertures down to 25 mm.<br />
Looking Ahead<br />
Metso PTI has successfully incorporated a<br />
smaller, or mini, RFID tag into their Smart-<br />
Tag system. <strong>The</strong> changes to the system installation<br />
are minor and incr ease the<br />
reliability of the system as a whole. In several<br />
examples the mini RFID tags have<br />
proven to be, on average, more robust than<br />
normal sized RFID tags.<br />
<strong>The</strong> PTI team envisage that with the successful<br />
incorporation of the mini RFID tags<br />
into the SmartTag system it will allow applications<br />
for the system to be expanded.<br />
<strong>The</strong>se new applications could include a wider<br />
use in the iron ore industry where size is the<br />
critical material quality. PTI is now working on<br />
proving the reliability of the next size of RFID<br />
tags—an even smaller micro RFID tag, which<br />
can pass through a 10-mm mesh screen.<br />
According to PTI, with the decreasing size<br />
of RFID tags and the development of<br />
SmartTag into a truly distributed system, it<br />
can be extended past the mine to cover the<br />
whole minerals supply chain. Detection<br />
points can now be located in the plant, the<br />
port and even at customer locations.<br />
In Some Cases, Smaller is Better<br />
<strong>The</strong> two case studies pr esented below<br />
demonstrate applications where it was advantageous<br />
to use the mini RFID tags rather<br />
than the normal size RFID tags.
Secondary Crushing Circuit<br />
As part of a wider PIO study a secondary<br />
crushing circuit was surveyed while being<br />
fed with a particular ore type. To determine<br />
the origin of the or e at any particular time<br />
and, most importantly, during the surveys,<br />
SmartTag detection points were set up at<br />
three locations around the circuit. <strong>The</strong> three<br />
locations were primary crusher pr oduct,<br />
secondary crusher feed and secondary<br />
crusher product.<br />
A total of 384 mini RFID tags were placed on<br />
eight polygons (a polygon is defined as dif ferent<br />
ore zones within the mine block model)<br />
after the blast, the ROM pad and trucks as<br />
they tipped ore into the primary crusher.<br />
Of the 384 tags placed onto either the<br />
muck pile or on the ROM pad, 45% wer e<br />
detected. However, if this is compared with<br />
the percentage of each polygon that had<br />
been excavated by the end of the trial it is a<br />
fair conclusion that many of the RFID tags<br />
that weren’t detected were also not excavated<br />
during the trial.<br />
To determine the survival rate of the tags<br />
during secondary crushing, the number of<br />
tags detected before and after the secondary<br />
crusher wer e compared. Of the 128<br />
tags detected befor e the secondary<br />
crusher, 97 were also detected after secondary<br />
crushing.<br />
However, as there were 52 tags that were<br />
detected after the secondary crusher but<br />
weren’t detected befor e the secondary<br />
crusher, the real survival rate is dif ficult to<br />
determine. By just comparing RFID tags detected<br />
at both detection points, it can be<br />
concluded that at least 76% of the mini tags<br />
survived secondary crushing, although this<br />
number is likely to be much higher.<br />
<strong>The</strong> screen immediately following the secondary<br />
crusher uses panels with 55-mm<br />
apertures and, as expected, none of the<br />
tags were recycled back through the secondary<br />
crusher.<br />
<strong>The</strong> primary application for SmartTag was<br />
to determine the origin of the or e being<br />
processed during the plant surveys. In this<br />
application, where the plant feed included ore<br />
from ROM mixing and stockpiles, SmartT ag<br />
was essential for determining which materials<br />
were processed in the plant at the time of<br />
the surveys. Mini tags wer e required to enable<br />
the ore source to be tracked all the way<br />
through secondary crushing, and pr oved to<br />
be robust enough to survive both blasting<br />
and secondary crushing.<br />
HPGR Circuit<br />
PTI was contracted to assess<br />
the performance of a<br />
circuit at a mine in South<br />
America. <strong>The</strong> SmartT ag<br />
system was used in this<br />
application to allow PTI<br />
engineers to know exactly<br />
when a surveyed blast<br />
was being processed. For<br />
this reason, detection<br />
points were located on<br />
conveyor belts carrying<br />
the product of the primary<br />
crusher, the output of the<br />
stockpile and the HPGR<br />
(High Pressure Grinding<br />
Roll) feed.<br />
As the blast was being<br />
audited RFID tags wer e<br />
deposited into 68 blastholes,<br />
using an even split<br />
of 34 normal tags and 34<br />
mini tags. A further 50<br />
tags were later added<br />
into the trays of 25 trucks<br />
at the primary crusher ,<br />
using one of each of the<br />
two different types of<br />
tags in each truck.<br />
A total of 68 tags wer e<br />
identified at the primary<br />
crusher product detection<br />
point, 23 at the stockpile<br />
output detection point and<br />
41 at the HPGR feed detection point.<br />
<strong>The</strong> blast occurred January 22 and the excavation<br />
of the muck pile took place roughly<br />
two months later between March 15–17. <strong>The</strong><br />
SmartTag system monitor ed the material<br />
passing through the process over a period of<br />
30 hours. During this period, a total of 67 different<br />
tags were detected; 33 were of normal<br />
size and 34 were mini tags.<br />
For the stockpile and HPGR feed detection<br />
points, the recovery was calculated with reference<br />
to the 64 distinct RFID tags detected<br />
at the primary crusher. Of the normal tags detected<br />
at the primary crusher detection point,<br />
42.4% were then detected at the HPGR feed<br />
detection point; whereas for the mini tags<br />
67.6% of tags detected at the primary<br />
crusher were also detected at the HPGR<br />
feed. This shows that the survival of the mini<br />
tags in the circuit is higher than the normal<br />
tags. In a hypothetical situation, wher e the<br />
secondary screening mesh is smaller than 50<br />
Grinding Mills<br />
Eirich’s fine-grinding TowerMills have applications in a wide range of materials<br />
that include copper, zinc and lead ores, iron ore, slags, and others.<br />
x 50 mm, normal tags certainly would not<br />
reach the HPGR.<br />
<strong>The</strong> detection of tags at the primary crusher<br />
was also af fected by the r emoval of the<br />
SmartTag system before the entire blast was<br />
processed for logistical reasons.<br />
<strong>The</strong> tags were used to track the material during<br />
an optimization campaign at the plant. During<br />
the plant survey the material that fed the<br />
plant originated from the central portion of the<br />
blast. An unexpected result was that three of<br />
the mini tags were twice detected at the HPGR<br />
feed detection point. An explanation for this is<br />
that they survived the HPGRs and r eturned<br />
with the circulating ore (screened to +5 mm).<br />
This article is based on a paper presented<br />
at the 35th APCOM Symposium 2011 in<br />
Wollongong, Australia. For additional infor -<br />
mation, contact Michael Wortley, general<br />
manager, PTI Products, Metso Process<br />
Technology & Innovation, Michael.wortley@metso.com.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 63
Product News<br />
Clean, safe and reliable fuel filling valve system<br />
IN an industry that demands cleaner , safer<br />
and more reliable fuel transfer technology,<br />
mine dewatering specialist W eir <strong>Miner</strong>als<br />
Multiflo (WMM) has achieved success by delivering<br />
improved asset utilization, operator<br />
safety and environmental outcomes for customers<br />
with its Hydrau-Flo valve system.<br />
Manufactured in Australia and in use since<br />
1997, Hydrau-Flo fuel filling valves ar e used<br />
globally by many of the biggest names in<br />
construction and mining. <strong>The</strong> patented Hydrau-Flo<br />
system is based on a sound mechanical<br />
principle – spring-opposed hydraulic<br />
pressure that delivers a clean, fast and safe<br />
solution to organizations that transfer liquid<br />
as part of their operation. WMM says Hydrau-<br />
Flo valves achieve extr emely fast refuelling<br />
times by delivering up to 1000 litr es per<br />
minute into alloy, plastic or steel fuel tanks<br />
and where the operation is alr eady utilizing<br />
fast fill, the Hydrau-Flo system maintains tank<br />
integrity by ensuring the tank is not pr essurized<br />
during or following the refuelling process.<br />
With Hydrau-Flo safety valves, the risk of<br />
overfilling, spillage and diesel tank ruptur e<br />
has become a thing of the past; so too the<br />
risks associated with environmental hazards<br />
and operator safety. All of these impr ove-<br />
THE new Cat 777G Off-Highway Truck delivers<br />
performance, production and fuel efficiency in<br />
the 100-short-ton (91-tonne) size class. <strong>The</strong><br />
777 was first introduced by Caterpillar in 1977<br />
and has proven to be a workhorse for mining<br />
and large earthmoving customers. <strong>The</strong> 777G<br />
replaces the 777F and Caterpillar says it delivers<br />
greater levels of production and fuel efficiency<br />
as well as enhanced safety , operator<br />
comfort and service convenience.<br />
<strong>The</strong> 777G achieves greater production with<br />
7% more torque powering work and new<br />
transmission controls that produce quick haul<br />
cycles with automotive quality shifting. <strong>The</strong><br />
production increases are balanced with new<br />
fuel saving strategies that include configurable<br />
economy settings as well as an adaptive<br />
economy mode that automatically<br />
optimizes fuel consumption based on the<br />
user’s production baseline. Fuel savings ar e<br />
also realized through features such as auto<br />
neutral idle and APECS transmission controls<br />
64 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
ments have been achieved without the need<br />
for electronics or complex arrangements<br />
prone to blockage and failure. <strong>The</strong> Hydrau-<br />
Flo valve system incorporates r obust fuel<br />
filler safety and float control valves that provide<br />
a r eliable, hydraulically-operated<br />
arrangement that depends on fluid levels as<br />
opposed to pressure. WMM says it is the<br />
highly reliable and solid-state-design of the<br />
Weir <strong>Miner</strong>als Multiflo’s Hydrau-Flo fuel filling valve<br />
system delivers every day protection for fuel tanks.<br />
Hydrau-Flo valves that allow customers to<br />
be confident in fuel delivery and tank integrity,<br />
with increased machine availability at<br />
minimal economic or environmental cost.<br />
It says a key benefit of Hydrau-Flo valves is<br />
that operator safety is vastly impr oved due<br />
New Cat 777G Off-Highway Truck delivers<br />
where the truck becomes more fuel efficient<br />
at idle in a forwar d gear and when climbing<br />
grades. Customers can choose to engage<br />
features like Engine Idle Shutdown and speed<br />
limiting to further improve fuel savings.<br />
In addition, the 777G is quieter and produces<br />
fewer emissions. Caterpillar is intr oducing its<br />
US EPA Tier 4 Final solution on the 777G two<br />
years in advance of the ef fective date of the<br />
regulation, which provides customers an opportunity<br />
to advance sustainability goals. <strong>The</strong><br />
solution is simple and robust and includes engine<br />
technology combined with diesel oxidation<br />
catalysts. It requires the use of ultra-low<br />
sulphur diesel fuel and low ash engine oil, but<br />
requires no additional maintenance or opera -<br />
tor input. For operations outside ar eas regulated<br />
by the US EP A, the 777G r educes<br />
emissions with Tier 2 or EU Stage II equivalent<br />
technology and fuel efficiency.<br />
Caterpillar has enhanced braking and<br />
traction control for G Series. Hydraulic oil-<br />
to traditional fuelling methods and associated<br />
risks being eliminated. <strong>The</strong> use of<br />
spring-opposed hydraulic pressure prevents<br />
overfilling and removes the operator fr om<br />
manually activating fuel shut-of f each and<br />
every time the tank is filled. That means it<br />
becomes impossible for employees to induce<br />
a fuel spill by ‘topping of f the tank’.<br />
This zero pressure, zero spill system for fast<br />
filling provides organizations with industry<br />
best practice for asset utilization, operator<br />
safety and environmental outcomes.<br />
<strong>The</strong> Hydrau-Flo valve system has been engineered<br />
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asset requiring delivery of coolant, diesel fuel<br />
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With no sensitive electronics, WMM says<br />
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immersed disc brakes are standard on all<br />
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Control, enabling fast downhill travel and reduced<br />
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<strong>The</strong> Cat 777G delivers greater levels of production<br />
and fuel efficiency.
Supplier News<br />
Aggreko powers up Martabe project<br />
TEMPORARY power and temperature control<br />
service provider Aggreko has commissioned<br />
a turnkey rental power package to power the<br />
construction and initial operations of G-Resources’<br />
Martabe mine in Northern Sumatra.<br />
<strong>The</strong> mine will eventually be power ed via the<br />
local grid, however, for the initial start-up,<br />
commissioning and early operations, a temporary<br />
power facility will be r equired while<br />
connection to the grid is established.<br />
Aggreko has supplied a 24MW power package<br />
to the Martabe site in two separate<br />
stages. <strong>The</strong> first 8MW, for commissioning, was<br />
delivered at the end of 2011. <strong>The</strong> r emaining<br />
16MW was supplied at the beginning of May<br />
2012 when the mine began operations. By<br />
staggering the power supply , Aggreko ensured<br />
that the critical power r equirements at<br />
every stage could be satisfied within eight<br />
weeks of the contract being signed.<br />
<strong>The</strong> Martabe mine is the core mining asset<br />
for G-Resources in South East Asia and will<br />
ultimately employ about 2000 people. It is<br />
forecast that once in full operation, it will produce<br />
more than 250,000 ounces of gold and<br />
between two and three million ounces of silver<br />
annually. G-Resources’ general manager–<br />
power Graeme Walsh says, “Aggreko worked<br />
with us to pr ovide a power solution that<br />
matched our r equirements exactly. <strong>The</strong><br />
THE Sangatta, Indonesia, branch of PT<br />
Atlas Copco Fluidcon has received the national<br />
Zero Accident A ward for working<br />
1,245,975 hours, since January 1, 2002,<br />
without a workplace accident.<br />
<strong>The</strong> award was presented by the Republic<br />
of Indonesia’s Minister of Manpower and<br />
Transmigration, Muhaimin Iskandar , at a<br />
ceremony held at Convention Hall, Smesco<br />
Convention Centre, Jalan Gatot Subr oto,<br />
Jakarta Selatan on April 25.<br />
Atlas Copco Fluidcon was represented by<br />
Sangatta branch manager Mouritz Havar d<br />
Silalahi and safety coor dinator Eddy<br />
Markus.<br />
66 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
speed at which the pr oject has been rolled<br />
out, the quality of the installation and the professionalism<br />
of the Aggreko people has impressed<br />
me greatly.”<br />
Commenting on the project Aggreko Asia’s<br />
managing director Debajit Das says, “<strong>The</strong> solution<br />
we’ve delivered to Martabe highlights<br />
once again Aggreko’s ability to rapidly deliver<br />
customized, turnkey solutions to support our<br />
customers’ activities, no matter where in the<br />
world they operate.”<br />
Aggreko employs more than 4500 people<br />
operating from 165 locations. In 2011 the<br />
company served customers in about 100<br />
countries and had revenue of about US$2.2<br />
billion. Aggreko plc is listed on the London<br />
Stock Exchange, is a member of the FTSE<br />
100 index and is headquartered in Scotland.<br />
Aggreko is providing power to the Martabe mine project in Sumatra until connection to the local grid is established.<br />
Atlas Copco Sangatta branch takes safety award<br />
RIGHT: PT Atlas Copco Fluidcon’s Sangatta branch manager<br />
Mouritz Havard Silalahi accepts the Zero Accident<br />
Award from the Minister of Manpower and Transmigration<br />
for the Republic of Indonesia, Muhaimin Iskandar.
LUBRICATION and condition monitoring specialist<br />
Techenomics International is setting up<br />
a new laboratory in Ulaanbaatar, Mongolia, to<br />
cater for the country’s growing mining industry.<br />
<strong>The</strong> laboratory will open initially with the<br />
capability to do a full range of oil analysis<br />
tests for engine oil, all other lubricated compartments<br />
and hydraulic oil. It will be capable<br />
of providing a few other services such as on<br />
line vibration analysis for fixed plant and selected<br />
specialty lubricants such as wire rope<br />
lubes and drill pipe greases.<br />
A team from Techenomics recently attended<br />
the Future Mongolia exhibition to introduce the<br />
service to Mongolian industry and the company’s<br />
CEO Chris Adsett is delighted with the<br />
response. “We were very pleased with the outcome<br />
of the exhibition as we received well over<br />
100 serious visitors out of which we believe<br />
that many new opportunities will develop.”<br />
Techenomics is an independent company<br />
that provides oil analysis, fuel analysis, coolant<br />
analysis, lubrication and filtration solution for<br />
fixed and mobile plants as well as expert testing<br />
of all petroleum fluids across Australia and<br />
Asia. It has been distributing specialty lubricants<br />
to the mining industry thr oughout Australia<br />
and Indonesia for mor e than 20 years.<br />
Today Techenomics focuses on its Total Fluid<br />
Management Services (TFMS), operating three<br />
ISO 9001 accredited laboratories and consulting<br />
services. <strong>The</strong>se laboratories are in Australia,<br />
Indonesia and Thailand. <strong>The</strong>y all conduct lubricant<br />
analysis on used oils and gr eases, and<br />
SGS <strong>Miner</strong>als Services was expected to<br />
have an on-site laboratory established at the<br />
Oyu Tolgoi mine site in the South Gobi region<br />
of Mongolia by early June. At the end of 2011<br />
SGS was awar ded the 3-year operational<br />
contract for the on-site laboratory at the site.<br />
<strong>The</strong> laboratory is scheduled to operate 24<br />
hours a day, 7 days a week and its scope of<br />
operations will include rapid grade contr ol,<br />
process plant, final concentrate and environmental<br />
determinations. SGS was pr eviously<br />
running an on-site sample preparation laboratory<br />
for the Oyu Tolgoi exploration team at<br />
the Oyu Tolgoi site. Samples were prepared<br />
at the exploration site and shipped to SGS’<br />
analysis of wear debris.<br />
Chris Adsett says, “Progress in getting established<br />
in Ulaanbaatar is steady , although<br />
slower than we would like. We are still awaiting<br />
the completion of our business registration. We<br />
have appointed Anuu (Bazar Mandy) as our<br />
first Mongolian employee. She joined us on<br />
May 28 and will assist with establishment of the<br />
laboratory and customer relations.<br />
Of the company’s display booth at Future<br />
Mongolia Chris Adsett says, “I’m sure many<br />
Supplier News<br />
Techenomics to establish in Mongolia<br />
Members of the Techenomics crew at the Future Mongolia exhibition in Ulaanbaatar, from left, Siti Munawarah,<br />
Zhen Xu, Sreejith B, Eka Karmila, Chris Adsett and Andaru Gunawan.<br />
commercial laboratory in Ulaanbaatar for all<br />
required analyses.<br />
SGS said the new on-site facility would employ<br />
more than 50 staff and many were trained<br />
at SGS’ local laboratory in Ulaanbaatar . <strong>The</strong><br />
Ulaanbaatar facility is a fully equipped commercial<br />
facility with fire assay, ICP, XRF, fluorine,<br />
chlorine, sulphur, carbon and classical<br />
wet chemistry capability as well as a full scope<br />
of testing for coal and conforms to the r equirements<br />
of ISO/IEC 17025 for specific registered<br />
tests. A metallurgical laboratory is also<br />
being commissioned by SGS in Mongolia to<br />
service the Oyu Tolgoi mine.<br />
<strong>The</strong> Oyu Tolgoi on-site laboratory comple-<br />
of those who visited the show will r emember<br />
our beautiful female members of staf f<br />
and in particular Tuul Tomorok and Tsatsa,<br />
who toiled enthusiastically in providing visitors<br />
with information on our services and in<br />
particular oil analysis.<br />
“We are pleased to say that you will be seeing<br />
more of Tuul who has agreed to join us as<br />
a brand ambassador. Tuul is a professional<br />
Mongolian model who will commence a degree<br />
in IT during the next semester,” he adds.<br />
SGS awarded Oyu Tolgoi laboratory work<br />
ments SGS <strong>Miner</strong>als Services’ existing facility<br />
in Ulaanbaatar and further expands its<br />
broad network of commercial labs around the<br />
world. SGS offers a wide range of services to<br />
the minerals sector including geochemical<br />
analysis, resource calculation, mineralogy ,<br />
metallurgy, advanced systems, water tr eatment,<br />
energy and fertilizer minerals testing<br />
and trade services. SGS is a leading inspection,<br />
verification, testing and certification<br />
company. SGS is r ecognized as the global<br />
benchmark for quality and integrity . With<br />
more than 70,000 employees, SGS operates<br />
a network of more than 1350 offices and laboratories<br />
around the world.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 67
Supplier News<br />
Camp management company formed in Mongolia<br />
NEW Age Mongolia LLC and Xillion LLC have<br />
joined forces with international camp management<br />
company ADEN Services. <strong>The</strong> three<br />
companies have cr eated ADEN Services<br />
Mongolia LLC, a joint ventur e registered in<br />
Ulaanbaatar, and announced their ambition<br />
to bring a new level of camp management<br />
services to the booming Mongolian natural<br />
resources industry.<br />
<strong>The</strong> north Asian country’s vast deposits of<br />
coal, copper and gold have sparked a boom<br />
in mining investments, driving economic<br />
growth to a r ecord 17.3% last year . <strong>The</strong><br />
country needs now to improve its level of professional<br />
services to support development of<br />
the natural resources sector.<br />
Created in 2009 by a gr oup of local investors,<br />
New Age Mongolia has established<br />
itself as a pioneer and a leading service company<br />
for local and international mining companies.<br />
It offers a wide range of specialized<br />
services from accounting, tax advisory ,<br />
68 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
tourism, trading and more. Xillion was established<br />
in 2008 as a consulting company providing<br />
investment and investment<br />
consultancy services in oil production.<br />
After careful research New Age Mongolia and<br />
Xillion have selected ADEN Services to add international<br />
expertise to the companies, both in<br />
camp management and pr ocurement. “<strong>The</strong><br />
association of New Age and Xillion’ s knowledge<br />
of the local market, and ADEN Services<br />
experience and expertise in remote site management,<br />
will give us an edge in this fast growing<br />
market,” says New Age Mongolia LLC<br />
general director Amarbayasgalan Tamir.<br />
ADEN Services, a Hong Kong-based international<br />
facilities management company, is<br />
one of the leading service companies in<br />
China and a key global player in remote service<br />
management. <strong>The</strong> company employs<br />
13,000 people and has of fices throughout<br />
China, Central Asia, Africa, the Middle East<br />
and South East Asia. ADEN Services has de-<br />
Joy ships 6000th continuous miner<br />
JOY has shipped its 6000th JOY continuous<br />
miner, with the model 12CM12 being delivered<br />
to Patriot Coal Corporation in West Virginia<br />
which currently operates more than 90<br />
JOY continuous miners. <strong>The</strong> shipment of its<br />
6000th unit marks another milestone in Joy’s<br />
development of world-class continuous mining<br />
machines for the global underground mining<br />
industry. Joy produced its first continuous<br />
miner unit in 1948 and since then has pioneered<br />
many continuous miner innovations<br />
that allow mining operations to increase productivity,<br />
lower costs per ton and, most importantly,<br />
improve operator safety with the<br />
mission of achieving zero harm.<br />
Joy’s ongoing commitment to impr oving<br />
underground mine working conditions is illustrated<br />
by its leadership in safety-focused<br />
continuous miner design features. Early improvements<br />
were marked by the transition<br />
from on-board operation to operation via<br />
radio remote control, reducing exposure to<br />
dust, vibration, and an unsupported r oof.<br />
Current innovations include improvements in<br />
operator interface ergonomics.<br />
Continued focus on operator-to-machine interaction<br />
has also led to the r elease of prod-<br />
ucts such as the JOY SMARTZONE Proximity<br />
Detection System, JOY WETHEAD spray systems,<br />
and the JOY SMARTConveyor. SMART-<br />
ZONE Proximity Detection is an operator<br />
awareness feature that teaches the operator to<br />
control the continuous miner from safe working<br />
zones. If an operator br eaches these zones,<br />
certain machine functions are disabled until the<br />
operator retreats into an acceptable zone.<br />
JOY WETHEAD spray systems attack<br />
dust generation at its source by integrating<br />
sprays onto the cutting drum behind every<br />
cutter bit. Independent studies show r educed<br />
dust generation in excess of 30%.<br />
JOY’s SMARTConveyor incorporates the<br />
latest sound abatement technologies to re-<br />
<strong>The</strong> JOY 12CM12 continuous miner improves safety, while<br />
increasing productivity and lowering operating costs per ton.<br />
veloped a new approach to remote site services<br />
focusing on the quality of life for employees<br />
and an innovative CSR policy.<br />
<strong>The</strong> three partners have str ong expectations<br />
for their Mongolian operations. <strong>The</strong>y<br />
have already started providing services for<br />
their first project with the management of a<br />
large coal mine camp, preceded by a significant<br />
procurement contract, and they are well<br />
developed in the pr ocess to sign several<br />
other contracts. “We are very satisfied in the<br />
partnership with New Age, we shar e common<br />
values and both of us want to work hard<br />
to bring professional services and a high level<br />
of integrity to the market,” says ADEN Services<br />
president and CEO Joachim Poylo.<br />
<strong>The</strong> move demonstrates the strategic importance<br />
of Mongolia to the ADEN Services<br />
network, strengthening the ability to assist<br />
clients in the country’s critical growth sectors<br />
including energy & natural r esources<br />
and infrastructure.<br />
duce sound output while impr oving maintainability.<br />
SMARTConveyor combines<br />
multiple technologies such as JOY’ s<br />
patented Dual Sprocket Conveyor Chain<br />
and auto-tensioning features to improve<br />
the operating environment.<br />
Joy’s history extends back to 1919 when it<br />
received the patent for the first mechanical<br />
loader. Joy’s focus is grounded on current<br />
and future commitments in pr oviding the<br />
mining industry standar d for<br />
safety, total pr oductivity<br />
and reliability, and the<br />
lowest operating<br />
costs per ton.
How does Steinert service the mining industry in Asia?<br />
Steinert Australia, and previously Steinert Sturton-Gill Magnetics, has<br />
been servicing the region since 1969. We service Asia’s mining industry<br />
by direct sales and through a network of authorized distributors<br />
and approved resellers. We actively track and pursue greenfield<br />
projects within South East Asia because the details of these oppor -<br />
tunities are readily available by canvassing pr oject stakeholders,<br />
through our network and the various media. Brownfield projects, and<br />
repair and maintenance opportunities are identified and ferretted out<br />
by representatives because they are closest to the market and ar e<br />
actively engaged in proactive after-market strategies.<br />
Is Asia an important market for Steinert?<br />
Asia is a growing economy despite Europe’s problems. Demand for<br />
commodities and raw materials may slow as demand for manufactured<br />
goods out of the region slows as well but what we will see is a<br />
requirement for more infrastructure through the industrialization and<br />
urbanization strategies being implemented in the region. This extends<br />
well beyond China with sharp increases in personal consumption from<br />
the emerging middle class throughout Asia. We can see this in motor<br />
vehicles as the car population has taken over from two-wheeled motorized<br />
and non-motorized transport and the difference in the last 10<br />
years has to be seen to be believed. <strong>The</strong> industry will develop and<br />
tap into the local r esources to fulfil the commodity gaps. Steinert’ s<br />
position is to assist these developments to process and extract these<br />
minerals in the most effective and efficient way.<br />
Are there plans to continue expanding in Asia?<br />
Yes, Steinert’s expansion into Asia will be staged and carefully managed<br />
as a hub and spoke with a strategic centr e as a focus. I pr esented<br />
my plans to the board in Germany last month and they gave<br />
me the go-ahead to roll out my plan as soon as possible. <strong>The</strong> Steinert<br />
Group recognizes the importance of Asia and sees it as a fundamental<br />
element in its growth strategies.<br />
Is the company planning any new product releases in the remainder of 2012?<br />
Since I joined Steinert back in mid-2007 I have seen no less than one<br />
new product, or product line as in the case of NIR, released every year.<br />
NIR means ‘near infrared’ and refers to a sensor-based sorting system<br />
that allows us to utilize the wavelength of light emanating fr om the target<br />
object to determine its worth to the operator. NIR came to Steinert<br />
through the acquisition of R TT in Germany. Several derivatives of this<br />
technology make up a suite of products we have at our disposal to actively<br />
market into mining applications.Steinert has increased its range of<br />
ore sorting capabilities by releasing the XRF unit, the 3D laser sorter (3Ds<br />
can sort by shape and size) and the KSS, or combination sorter , to complement<br />
the existing ISS (electro-magnetic induction sorter) and the sensor<br />
sorter based on ‘dual energy’ X-ray transmission.<br />
Steinert Australia is responsible for mining market pr oduct development<br />
and has also released a new line of MagSeps for magnetite<br />
beneficiation, covering cobbing, roughing and finishing duties, a brand<br />
new heavy media recovery wet drum separator to halve the coal prep<br />
operator’s magnetite losses - and an additional product which revolutionizes<br />
magnetite iron ore dewatering.<br />
Supplier News<br />
Steinert services mining in Asia … and globally<br />
What makes Steinert stand apart from competitors?<br />
We see ourselves as providers of separation technology. Steinert does<br />
not sell a piece of equipment without knowing, understanding and considering<br />
the upstream and downstream effects of installing that component<br />
within, at times, very complex flow sheets. This is why we ask<br />
‘what is the problem?’ We rarely just sell equipment otherwise it, too,<br />
becomes just a commodity. It’s about providing tangible options and<br />
agreeing on the ultimate solution. We have increased staff numbers to<br />
provide a more effective service.<br />
July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 69
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July/August 2012 | <strong>ASIA</strong> <strong>Miner</strong> | 71
Exploration Spotlight<br />
Survey identifies new Gunung Rosa targets<br />
SIX new targets identified by a helicopter -<br />
borne magnetic survey at Paramount Mining’s<br />
flagship Gunung Rosa gold-silver-base<br />
metal project are being prepared for detailed<br />
exploration. <strong>The</strong> survey was flown at 50<br />
metre line spacing about 50 metr es above<br />
the West Java province project after magnetic<br />
data released in April demonstrated a significant<br />
intrusive complex containing several<br />
potentially mineralized targets.<br />
Paramount’s chairman Mo Munshi says,<br />
“<strong>The</strong> demonstration of an intrusive complex<br />
and alteration gives significant new scope for<br />
delineation of additional resources of gold,<br />
silver and base metal mineralization similar in<br />
style to that which we have defined to date.<br />
More importantly, it also demonstrates mineralized<br />
porphyry stockwork potential. This<br />
opens up a hitherto unr ecognized and importantly<br />
unexplored range of targets in the<br />
licence and the potential for significantly larger<br />
intrusive porphyry-r elated resources<br />
amenable to exploration and exploitation.<br />
This adds considerably to the potential value<br />
of the project.”<br />
<strong>The</strong> company’s managing dir ector Terry<br />
Holohan says the survey backs up r esults<br />
from earlier drilling at the 2475 hectar e project.<br />
“This survey further confirms our geologist’s<br />
initial thoughts from the drill data that<br />
the existing gold-silver-base metal mesothermal<br />
vein system has developed within an in-<br />
Lion One confirms further Tuvatu potential<br />
LION One Metals continues to confirm further<br />
resource potential and exploration upside at the<br />
Tuvatu Gold Project near Nadi on the island of<br />
Viti Levu in Fiji, while pr eparing for feasibility<br />
work and potential decision for a fast track to<br />
production. <strong>The</strong> company expected to complete<br />
metallurgical testing by the end of June<br />
with results expected during the current quarter.<br />
Lion One has confirmed the continuity of<br />
several of the principal gold bearing veins that<br />
comprise part of the Tuvatu deposit. Mapping<br />
along strike confirmed the Murau West 1 and<br />
the Murau West 3 veins continue an additional<br />
870 and 1300 metr es respectively from<br />
the principal Tuvatu resource area.<br />
<strong>The</strong>se lode extensions branch out with<br />
each intersecting the northeast trending 290<br />
Vein, 750 metres apart, about 1km west of<br />
72 | <strong>ASIA</strong> <strong>Miner</strong> | July/August 2012<br />
A helicopter flies over the proposed plant site during a survey at Cap Palu on Paramount’s Gunung Rosa project in West Java.<br />
trusive complex and might be associated<br />
with a potentially much larger gold-copper<br />
porphyry system. Our fieldwork has also<br />
shown us that the vein system is far more extensive<br />
than we initially thought.”<br />
<strong>The</strong> six targets are characterized by strong<br />
magnetic characters with silica-magnetite<br />
and silica-pyrite-clay alteration. <strong>The</strong>se features<br />
will be subject to more detailed scrutiny<br />
and shallow drilling to determine the character<br />
of the geological envir onment occurring<br />
the resource area. Both Murau Lodes ar e<br />
characterized by multiple phases of quartz<br />
and/or calcite veining that host gold and associated<br />
sulphide mineralization.<br />
<strong>The</strong> 290 Vein consists of auriferous quartz<br />
and/or calcite veins with pyrite and other<br />
minor sulphide mineralization that was emplaced<br />
in a shear zone striking 210 degr ees<br />
north and dipping 80 degr ees southeast.<br />
With the recent surface exploration program<br />
extending the strike length of the vein by 800<br />
metres, the 290 Vein has now been delineated<br />
over a total of 1420 metr es with widths<br />
ranging from 0.15 to 0.55 metr es. <strong>The</strong> extensions<br />
were discovered in outcrops and<br />
drainages adjacent to the Tuvatu exploration<br />
camp where they cut the Cor e Shed Fault.<br />
<strong>The</strong> 290 Vein was labelled from a rock chip<br />
as much of the area is blanketed by thick soil.<br />
<strong>The</strong> increased confidence in the project has<br />
prompted Paramount to secure a controlling<br />
stake by paying US$2 million to PT Cikondang<br />
Kancana Prima to increase its subsidiary<br />
PT Paramindo’s stake to 51%.<br />
Paramount’s next step at Gunung Rosa will<br />
be to refurbish the old operating mine and<br />
bring it into production as quickly as possible,<br />
while focusing on further defining a diamond<br />
drilling program.<br />
sample that r eturned 293.5 grams/tonne<br />
gold over 0.15 metres.<br />
<strong>The</strong> company has also mapped continuous<br />
extensions of the Upper Ridge Lodes 4, 5, 6, 7,<br />
and 8 along strike lengths up to 800 metres to<br />
the south-southwest. <strong>The</strong>se lodes, all of which<br />
have been drilled within the curr ent resource<br />
area, remain open at depth and along strike.<br />
‘Branching’ or fanning of the epithermal veins<br />
along the caldera rim is consistent with the regional<br />
geology of the Navilawa Caldera. Samples<br />
from newly mapped structures have been<br />
collected for laboratory analysis.<br />
Lion One is pleased with results from the ongoing<br />
surface exploration pr ogram as it demonstrates<br />
that the high grade epithermal vein<br />
system is significantly more extensive than that<br />
incorporated in the current resource.