PROJECT FOCUS
In 2011 he pursued an opportunity with Shanta Gold Mining to build the mine infrastructure and manage the open-pit mining contract at the New Luika gold project in Tanzania. This led to the acquisition of two local Tanzanian contractors, Bamboo Rock and Bamboo Rock Drilling. There followed an alliance with Caspian Ltd which in turn led to the formation of BC Mining Ltd. Both BC Mining and Bamboo Rock Drilling continue to grow from strength to strength with strong contract performances for Shanta Gold, Acacia Mining, and Magnis Resources.
So Digmin has the capability to deliver Zambian gold ore to the Matala ROM pad.
PenMin has a recordable track record of numerous appointments as the Client’ s Representative where amongst other aspects has been responsible for:
Xinhai provides a whole range of EPC services in mineral processing EPC, providing a“ onestop service for mineral processing plants.” It offers testing of the ore, engineering design, equipment manufacture, installation and commissioning and local training. Its teams of geologists, mineral processing and mechanical experts are supported by the accumulated experience of 500 EPC projects.
The single 32 km 2, 25 year renewable mining licence( licence 8074-HQ-LML) was granted by the Ministry of Mines in Zambia in 2003 and reinstated in December 2014. It also covers the company’ s wholly owned Dunrobin mine.
Gold mineralisation has been identified at multiple locations across the Matala Dome, and specifically within the licence area. At Matala, gold mineralisation is characterised by strong stratigraphic deformation, shearing and the presence of quartz-dolomite-pyrite-tourmalinealbite-sericite alteration and vein stockworks. The mineralised assemblages occur in steep south-dipping stockwork.
Matala contains an estimated 568,000 oz Au( JORC Code compliant resource estimate) in the Indicated and Inferred categories and was subject to limited historical underground mining during pre-independence years in Zambia. In addition, in March 2016 the company announced that a confirmatory sampling program conducted at Matala had validated an historic report produced in 1984, which was
In the future, Dunrobin could well become a bigger mine. Between 1928 and 1941, 32,000 oz of gold were mined from Dunrobin from open pit and underground. In 1997 Reunion Mining acquired Dunrobin and established mine infrastructure, then in 2000 the project transferred to Caledonian Minerals, which undertook a limited program of open pit mining before the mine was closed in December 2000 as a result of the low gold price.
Rapid progress
Alecto has identified the potential to develop a low-cost, profitable, small-scale 400,000 t / y open-pit mining operation at Matala and its satellite deposits, targeting the oxide and transitional ore and using a simple crushing, milling and gravity circuit with subsequent direct cyanidation.
With this in mind, Alecto appointed PenMin in December 2015 to provide consultancy services on Matala. At the end of January 2016, Alecto and PenMin jointly completed an audit visit to Xinhai in China, to establish the potential for partnering with Xinhai on the development of Matala. Xinhai is a privately owned, global leader and pioneer of EPC services in China.
Alecto has satisfied itself that Xinhai has the necessary technical and commercial capability to perform the design, build and operational services that are required to bring Matala into future production.
PenMin completed and submitted an initial feasibility study at the end of January 2016 to meet the needs of Xinhai and Chinese finance houses. Following its own detailed technical and commercial review, Xinhai is now satisfied as to the technical and financial outcomes of the feasibility study. The key outputs from the study for the assumed life of mine are summarised below:
Historic gold potential
The historic Matala gold project is located in a licence area of south-central Zambia dominated by the Mwembeshi Shear Zone, which incorporates the geologically complex Matala Dome, an elongated east-northeast dome parallel, or sub-parallel, to the trend of the shear.
issued by the Zambian Industrial and Mining Corp and estimated that an additional 75,000 t of measured non-code compliant mineral resources exist in recently identified historic dumps and tailings adjacent to the Matala deposit.
It lies 120 km west of Lusaka and 25 km east of Mumbwa, 4 km off a main sealed road.
Cash Flow- Nominal |
TOTALS |
US $ |
Gross Revenue |
192,477,826 |
Less: Off-mine Cost |
( 11,631,797) |
Less: Sales Commission |
( 2,887,167) |
Net Revenue |
177,958,862 |
Less: Operating Cost |
( 104,897,578) |
Less: Closure Cost Provision |
( 1,789,735) |
Less: Capital Maintenance |
( 1,511,386) |
Cash from operations |
69,760,163 |
Interest Received |
1,951,669 |
Profit Before Tax |
71,711,832 |
Less: Taxation Paid |
10,659,791 |
Profit After Tax |
61,052,041 |
Less: Working Capital Movement |
- |
Less: Capital Cost |
( 15,535,252) |
Debt Draw Down |
13,221,841 |
Debt Repayment |
( 15,389,784) |
Net Project Cash Flow |
43,348,845 |
10 International Mining | JUNE 2016