Engineering & Mining Journal

MAR 2019

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REGIONAL NEWS - AFRICA 14 E&MJ • MARCH 2019 Thor Nearing Construction Start at Segilola in Nigeria Thor Explorations is planning to begin construction of its Segilola open-pit gold mine in southwest Nigeria in the second quarter of 2019. Positive results from an independent definitive feasibility study describe a project producing 80,000 ounces per year (oz/y) of gold over a five- year mine life. Thor has also reported the results of an independent preliminary economic assessment (PEA) of a proposed supple- mental underground project at Segilola that could add 33,000 oz/y to Segilola production over a period of three years. The resource remains open at depth. The open-pit project includes con- struction of a 625,000-metric-ton-per- year (mt/y) processing plant, with a flowsheet that includes a conventional crushing circuit, two-stage grinding, grav- ity, carbon-in-leach, elution, electrowin- ning, and smelting to produce gold doré. Gravity recoveries will account for more than 40% of total recovery. Preproduction capital expenditures to develop the project are estimated at $87 million, with an after-tax payback period of 1.4 years. Life-of-mine all-in sustain- ing costs are estimated at $662/oz. The initial open-pit development is based on a probable mineral reserve of 3 million mt, grading 4.2 g/mt gold and containing 405,000 oz of gold at a 0.77 g/mt cut-off. Indicated resources stand at 469,000 oz, grading 4.7 g/mt, and inferred resources stand at 163,000 oz, grading 7.8 g/mt. The company intends to engage an ex- perienced mining contractor for the drill, blast, load and haul operations. The project has all of its required min- ing and environmental licenses. "We are pleased to announce that the company is in advanced discussions with project financiers and is proceeding with EPC turn-key documentation with its preferred EPC contractor, Norinco Inter- national (who assisted the company in the development of the feasibility study), with a view to commencing construction at Segilola in Q2 2019," Thor Explora- tions President & CEO Segun Lawson said. "Exploration drilling on additional targets within the exploration license is ongoing, and the company considers that strong potential exists to realize explora- tion upside as we continue to explore for potential satellite deposits." Barrick, Tanzania Government Reach Agreement Over Acacia Dispute In its capacity as a facilitator, Barrick Gold Corp. announced it has arrived at a proposal with the government of Tanzania to resolve outstanding disputes concern- ing Acacia Mining's operations in Tanza- nia. This proposal includes the creation of a local company to manage Acacia's operations as well as a payment of $300 million to the government to resolve the outstanding tax claims. The taxes will be paid over time. Economic benefits from Acacia's op- erations will be shared on a 50/50 ba- sis. The government's share of economic benefits would be in the form of royalties, taxes and a 16% free carry interest in the Tanzanian operations. "Significant amounts of real value have been destroyed by this dispute and, in Barrick's view, this proposal will al- low the business to focus on rebuilding its mining operations in partnership with their respective stakeholders, and most importantly, long-suffering investors, in- cluding Barrick," President and CEO of Barrick Mark Bristow said. According to Barrick, work is under way to finalize the definitive agreements. To become effective, the proposal and those agreements must be approved by Acacia and the government of Tanzania. Barrick holds a 63.9% equity interest in Acacia. According to Acacia, it has not re- ceived any proposal from Barrick regard- ing a resolution. "Any proposal received by Acacia will be subject to review by the Independent Committee of the Acacia Board of Direc- tors," the company said. A map shows the footprint for the Segilola open-pit gold mine.

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