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REGIONAL NEWS - AFRICA African Barrick Expands Bulyanhulu Upper East Project African Barrick Gold has expanded the Upper East Project at its Bulyanhulu mine in Tanzania to include parallel mining of two reefs (Reef 1 and Reef 2) and add 90,000 oz/y to gold production from the Bulyanhulu property. Bulyanhulu is a high- grade underground mine with reserves of 10.6 million oz at a grade of 11.7 g/mt gold and total resources of 16.9 million oz at a grade of 9.7 g/mt gold. The existing mine produced 262,000 oz of gold in 2011. The Upper East Project is located at the eastern extension of the strike length of the mine, about 1.5 km east of the processing plant. The project will be developed as a stand-alone mining operation, separate from the existing mine, with distinct infra- structure, ventilation and personnel, but will deliver its ore to the current processing plant. In tandem with mine development, processing plant capacity will be expanded by 200,000 mt/y to about 1.4 million mt/y. The Upper East project was previously based solely on 1.2 million oz of reserves grading 10.6 g/mt in Reef 1. The expanded project now includes an additional 900,000 oz of reserves at 9.7 g/mt in Reef 2. African Barrick expects to complete a combined fea- sibility study for parallel mining of the two reefs by the end of the first quarter of 2013, with production to begin in late 2014. The Upper East zone was initially accessed in 2001 through a 1.8-km decline from the current mine's ramping system. Due to low gold prices at that time, the area was not developed. Over the past 18 months, African Barrick has been dewa- tering and rehabilitating the decline for use in trucking ore to the surface, bypassing the shaft that serves the existing mine. African Barrick's board has approved ordering of some long-lead equipment to ensure that mining operations can begin at the Upper East Project once final board approval is received. All equipment ordered ahead of final board approval can also be utilized in the existing Bulyanhulu opera- tions. The commitment amounts to $4.3 million in 2012 and $6.5 million in 2013. Once environmental approvals have been granted to open a box cut over the shallower portion of the Upper East zone, a second decline will be developed to open up the shallower reserves on Reefs 1 and 2. The box cut will allow for additional ventilation intake, improved access to the Upper East Reefs 1 and 2, and additional truck haulage. Pre-production capital to develop the Bulyanhulu Upper East Project is estimated at $99 million. Life-of-mine gold produc- tion costs are expected to average $608/oz. Amara Announces PEA and Exploration Update for Sega Amara Mining (formerly Cluff Gold) announced the results of a preliminary eco- nomic assessment (PEA) and an exploration update for its open-pit Sega gold project in Burkina Faso in mid-October 2012. The company, which is 78% owner and operator of the Kalsaka gold mine in north-central Burkina Faso, changed its name to Amara Mining effective October 1, 2012. The Sega PEA has confirmed the poten- tial viability of mining oxide and transition- al material at Sega and transporting it 20 km to Amara's existing heap leach mining operation at Kalsaka for processing. Contained gold of 162,825 oz will be mined over the project's 21-month initial mine life. Cash cost per ounce produced excluding royalties is estimated at $821/oz. Amara expects to receive a mining license for Sega in the first quarter of 2013 and to begin mining before the end of the first half of the year. Amara also reports significant drill intercepts at the Touli prospect on the Sega license area, including 26 m at 3.05 g/mt from 8 m below the collar in one hole and 18 m at 3.49 g/mt from 18 m below the collar in another. Bulyanhulu Upper East project section view. 18 E&MJ; • NOVEMBER 2012 Amara CEO Peter Spivey said, "The delivery of the Sega PEA is a key step in Amara Mining's Kalsaka mine, shown here, has had its prospects bolstered by acquisition of the neighboring Sega project. Located 20 km north of Kalsaka, Sega will provide an opportunity to enhance Kalsaka's pro- duction with limited upfront capital expenditure. (Photo courtesy Amara Mining) ensuring that cash flow is maintained at Kalsaka. The resources at Sega will signif- icantly increase Kalsaka's mine life with limited capital investment required. Capital costs associated with the com- mencement of production from Sega are expected to be $9.5 million. Amara has received verbal authorization from the Burkina Faso government to begin the infrastructure work associated with Sega in advance of the final mining license being granted. This work includes a dedi- cated haul road between Sega and Kalsaka, the installation of crushing facili- ties at Sega, and an upgrade to the power and transmission plants. Construction is due to begin before the end of 2012. www.e-mj.com