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REGIONAL NEWS - AFRICA
Separation Plant Planned for South African Rare Earths Project
by the end of the second quarter of 2012, leading to a development decision in the third quarter. PMI currently antici- pates start of mine development activi- ties during the first quarter of 2013 and full production in 2014.
A worker descends stairs adjacent to decline rails at Great Western Minerals Group's refurbished Steenkampskraal mine in Western Cape province, South Africa.
Great Western Minerals Group has signed a joint venture agreement with Ganzhou Qiandong Rare Earth Group Ltd. (GQD) of China for the construction of a rare earth separation plant in Western Cape province, South Africa. GQD has more than 20 years of operating experience processing rare earth oxides and metals in China. The separation plant will be con- structed in close proximity to Great Western's Steenkampskraal operation, located approximately 350 km north of Cape Town, where a previously operating mine is being refurbished and readied for rare earth mining.
Pursuant to the agreement, a new joint venture company, Great Western GQD Rare Earth Materials Pty. Ltd. will finalize preliminary work already under way on the process design and environ- mental components of the separation plant and move toward construction of the facility.
The Steenkampskraal mine is held by Steenkampskraal Monazite Mine (Pty) Ltd., a 74%-owned subsidiary of Rare Earth Extraction Co. Ltd. of Stellenbosch, South Africa, which is a 100%-owned subsidiary of Great Western.
The company reports infrastructure at and around the mine site is adequate and includes access to the site by paved and gravel roads. It is also in close prox-
18 E&MJ; • FEBRUARY 2012
imity to rail and port facilities. Access to power will be provided through the exten- sion of the existing electrical grid to the site. Diesel generators will be used for backup power.
Study Supports Redevelopment at Obotan PMI Gold Corp. has reported the results of a positive, NI 43-101 compliant prefeasi- bility study (PFS) for its 100%-owned Obotan gold project in southwest Ghana. The project was previously operated by Resolute Mining and closed in 2002 after producing a total of 730,000 oz of gold at an average grade of 2.2 g/mt when the gold price averaged approximately $350/oz. The current Obotan PFS was complet- ed by GR Engineering Services. The study anticipates construction of a 3 mil- lion-mt/y hardrock carbon-in-leach (CIL) plant, with capacity of up to 3.84 million mt/y for soft oxides.
Gold production is forecast at 205,600 oz/y over an initial 11.2-year mine life. Initial capital costs are esti- mated at $183.5 million, excluding a pre-strip mining cost of $68.3 million. Life-of-mine cash costs are forecast at about $690/oz, including royalties, refin- ing costs and pre-strip mining. A definitive Obotan feasibility study is under way and is targeted for completion
Obotan project planning is based on an NI 43-101/JORC compliant estimate of combined proven and probable miner- al reserves totaling 2.26 million oz at 2.32 g/mt gold. A resource update is scheduled for the first quarter of 2012, incorporating the results of 28,800 m of additional diamond core drilling. The overall Obotan project mining sequence is based on starting operations at the previously mined Nkran pit, followed by mining of satellite deposits at Adubiaso, Abore and Asuadai. The process plant will be located near the Nkran deposit, where 80% of the reserves are located. Maximum haulage distance for ore from the satellite deposits will be 15 km.
Mining of the satellite deposits will be sequenced to optimize ore feed to the mill while maintaining throughput of 3 million mt/y. A mining contractor is proposed for earth moving activities. All deposits will be mined as open-pits, utilizing conven- tional truck and shovel methods. Annual production of ore and waste will peak at 35 million mt/y, with a life- of-mine stripping ratio of 7.6:1. Approximately one year of waste stripping will be required at Nkran to expose suffi- cient ore to maintain a constant ore feed rate of 3 million mt/y.
The Obotan processing flowsheet in- cludes single-stage jaw crushing, a SAG and ball mill in closed circuit with hydro- cyclones, pebble crusher, a gravity circuit, and a single-stage pre-leach and seven- stage CIL circuit. The process plant design allows for 40% gravity recovery of gold. This recovery is similar to that achieved by Resolute during previous operations. The proposed process flowsheet is also similar to that employed by Resolute.
The PFS assumes spending for the construction of new administration build- ings, temporary and permanent mine vil- lage facilities, a new 30-km 116-kV power line, and the rehabilitation and expansion of the existing borefield.
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