Engineering & Mining Journal

DEC 2018

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Page 28 of 115

REGIONAL NEWS - AFRICA DECEMBER 2018 • E&MJ 27 SCALPING has produced more uranium oxide than any other single mine. The total consideration comprises an initial cash payment of $6.5 million, payable at completion, and a contingent payment of up to $100 million following completion. The contingent payment is linked to uranium spot prices and Röss- ing's net income during the next seven years. In addition, Rio Tinto will receive a cash payment if CNUC sells the Zelda 20 Mineral Deposit during a restricted period following completion. The total consid- eration is subject to a maximum cap of $106.5 million. The transaction represents the cul- mination of an extensive assessment of strategic options considered by Rio Tinto in relation to Rössing. The transaction is subject to certain conditions precedent, including merger approval from the Na- mibian Competition Commission. Subject to these conditions being met, the trans- action is expected to complete in the first half of 2019. Orca Gold Nearing Construction Start Orca Gold has released the results of a feasibility study of its 70% owned Block 14 gold project in northern Republic of the Sudan that targets average production of 228,000 ounces per year (oz/y) during the first seven years of operation. Life-of- mine production would average 167,000 oz/y across a mine life of 13 years. Orca is anticipating government ap- proval for project development in early 2019. Plant throughput during the first seven years of Block 14 operation is planned at 5.8 million metric tons per year (mt/y) at a gold grade of 1.49 g/mt. Capital costs are estimated at $328 million, including $36 million in contingency and $185 million for life-of-mine sustaining capital. The construction period is estimated at 27 months. Cash costs of production are estimat- ed at $689/oz during the first seven years of operation and $707/oz life of mine. All-in sustaining costs are estimated at $789/oz during the first seven years and $783/oz life of mine. The mine will be a conventional truck- and-shovel open-pit operation feeding a mineral processing circuit incorporat- ing primary crushing, SAG and ball mill grinding, carbon-in-pulp leaching, strip- ping and electrowinning. Preproduction development work will enable the train- ing of the mining crews and will produce an estimated 900,000 mt of stripped waste and 350,000 mt of ore, which will be stockpiled. Mining will be completed in eight years at an average mining rate of 22 mil- lion mt/y. A low-grade stockpile averaging 0.71 g/mt gold will be created, enabling processing of higher-grade ore for the first seven years. The stockpiled ore will be treated over the last 6.6 years. The Block 14 feasibility study was completed by Lycopodium Minerals. The 30% minority interest in the project is held by a local company, Meyas Nub. Feasibility Studies Advance 2 Iamgold Projects Iamgold has reported results from feasi- bility studies of its joint-venture Côté gold project in Ontario, Canada, and its Boto gold project in eastern Senegal. The Côté feasibility study describes a project having a mine life of 16 years, with mill throughput of 36,000 met- ric tons per day (mt/d). Gold production would average 367,000 ounces per year (oz/y) over the life of the mine, including 428,000 oz/y during years one through 12. Mill feed grade would average 0.98 grams/mt gold. Iamgold plans to make an investment decision on the project in early 2019. The Boto feasibility study describes a project having a mine life of 12.8 years, with mill throughput of about 7,500 mt/d. Gold production would average 140,000 oz/y over the mine life, includ- ing 160,000 oz/y for the first six years of operation. Mill feed grade would average 1.71 g/mt gold. Iamgold produced 882,000 oz of gold in 2017 and 654,000 oz during the nine months ended September 30. The production derived from the com- pany's Essakane mine in Burkina Faso, Rosebel mine in Suriname, Westwood mine in Canada, and participation in the joint venture Sadiola and Yatela mines in Mali. Sadiola and Yatela are operated by joint-venture partner AngloGold Ashanti. The Boto gold project feasibility study outlines an economically robust project and is being used to support an applica- tion for a mining concession in the fourth (Continued on p. 38)

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