South Africa has put a six-month moratorium on all new applications for prospecting licences in the country while a review of irregularities in the administrative process is ongoing.*
Mineral resources minister, Susan Shabangu, also said that amendments would be proposed to the mining act to address the irregularities, with the a proposal to will be discussed by cabinet by the end of this year.
It has been some time now that South Africa has been sailing rather close to the wind when it comes to less- than- transparent dealings at the DME vis a vis regarding old- order rights transfers or exploration and mining licence applications. Amazing things went on at the DME offices around the country;, or rather didn’t happen as these should have.
The big boys just took a ‘grin- and- bear- it’ stance, losing on the swings while hoping to gain on the round-about, while the smaller players just fell over, and many of those with foreign investment plans lost some money and then went home swearing never to return. Nobody affected had the guts to speak out and ‘ministerial discretion’ or more precisely the gross misuse of that discretion, certainly did not help in any way to reduce the problems.
Against this backdrop, the ‘irregularities’ grew ever bigger and bolder. – no surprise there. I guess it had to take a transgression against someone so big and with little to lose as a result of the foul that they were prepared to finally speak out. about the stench.
Meanwhile, in the heart…
World leaders offered up some pointed words for the Democratic Republic of the Congo (DRC) at the G8 summit, shortly after a Canadian mining company ran into a serious conflict there. Last September, Vancouver-based copper miner First Quantum Minerals Ltd. had its Kolwezi Tailings Ccopper pProject expropriated by the DRC government.
Recently, Tthe Financial Post reported recently that the Kolwezi Project passed on to a British Virgin Islands-based company in a highly irregular transaction. First Quantum has taken its case for international arbitration.
In the official communiqué for the G8 conference, one entire declaration was devoted to the DRC.
It calls for an end to resource conflict in the eastern part of the country, and asks candidate countries to the Extractive Industries Transparency Initiative, including the DRC, to “enhance governance and accountability in the extractive sector”.” The singling out of the Congo DRC suggests its governance is becoming a major concern for world leaders, even as they prepare to forgive billions of dollars of the country’s debt.
While the G8 statement on the Congo was unusual, it was also very measured. There was no specific criticism of the country’s political leaders, nor was there any suggestion that debt forgiveness could be rescinded if it does not improve its governance. The First Quantum issue is viewed as an urgent one for officials at the World Bank and the IMF, as the World Bank, is a joint- venture partner on Kolwezi with First Quantum, and the IMF is involved in the Congo’s debt-forgiveness measures.
The World Bank has halted all investments in the DRC through its finance arm, and finds itself in international arbitration for the first time ever.
Are you ready for that bear-hug umfowethu?
Russia will provide South African nuclear power stations with uranium until 2017.
The contract was signed in the Kremlin by President Jacob Zuma and his Russian counterpart Dmitry Medvedev during a recent official visit to the Russian Federation, looking to narrow the trade deficit with one of the most populous nations in the world.
The country’s hoping to build on historical ties with the Russian Federation and the uranium deal is a step in that direction. Under the deal, Russia will control almost half of South Africa’s uranium market - did we learn nothing from the European?
In my opinion one should keep one’s water and one’s energy in the confines of one’s own castle…
Willem Smuts
*The minister said that all mining- rights applications already launched would be processed according to the existing law.
]]>
September 6, 2010 by Dr. Willem Smuts
South Africa has put a six-month moratorium on all new applications for prospecting licences in the country while a review of irregularities in the administrative process is ongoing.*
Mineral resources minister, Susan Shabangu, also said that amendments would be proposed to the mining act to address the irregularities, with the a proposal to will be discussed by cabinet by the end of this year.
It has been some time now that South Africa has been sailing rather close to the wind when it comes to less- than- transparent dealings at the DME vis a vis regarding old- order rights transfers or exploration and mining licence applications. Amazing things went on at the DME offices around the country;, or rather didn’t happen as these should have.
The big boys just took a ‘grin- and- bear- it’ stance, losing on the swings while hoping to gain on the round-about, while the smaller players just fell over, and many of those with foreign investment plans lost some money and then went home swearing never to return. Nobody affected had the guts to speak out and ‘ministerial discretion’ or more precisely the gross misuse of that discretion, certainly did not help in any way to reduce the problems.
Against this backdrop, the ‘irregularities’ grew ever bigger and bolder. – no surprise there. I guess it had to take a transgression against someone so big and with little to lose as a result of the foul that they were prepared to finally speak out. about the stench.
Meanwhile, in the heart…
World leaders offered up some pointed words for the Democratic Republic of the Congo (DRC) at the G8 summit, shortly after a Canadian mining company ran into a serious conflict there. Last September, Vancouver-based copper miner First Quantum Minerals Ltd. had its Kolwezi Tailings Ccopper pProject expropriated by the DRC government.
Recently, Tthe Financial Post reported recently that the Kolwezi Project passed on to a British Virgin Islands-based company in a highly irregular transaction. First Quantum has taken its case for international arbitration.
In the official communiqué for the G8 conference, one entire declaration was devoted to the DRC.
It calls for an end to resource conflict in the eastern part of the country, and asks candidate countries to the Extractive Industries Transparency Initiative, including the DRC, to “enhance governance and accountability in the extractive sector”.” The singling out of the Congo DRC suggests its governance is becoming a major concern for world leaders, even as they prepare to forgive billions of dollars of the country’s debt.
While the G8 statement on the Congo was unusual, it was also very measured. There was no specific criticism of the country’s political leaders, nor was there any suggestion that debt forgiveness could be rescinded if it does not improve its governance. The First Quantum issue is viewed as an urgent one for officials at the World Bank and the IMF, as the World Bank, is a joint- venture partner on Kolwezi with First Quantum, and the IMF is involved in the Congo’s debt-forgiveness measures.
The World Bank has halted all investments in the DRC through its finance arm, and finds itself in international arbitration for the first time ever.
Are you ready for that bear-hug umfowethu?
Russia will provide South African nuclear power stations with uranium until 2017.
The contract was signed in the Kremlin by President Jacob Zuma and his Russian counterpart Dmitry Medvedev during a recent official visit to the Russian Federation, looking to narrow the trade deficit with one of the most populous nations in the world.
The country’s hoping to build on historical ties with the Russian Federation and the uranium deal is a step in that direction. Under the deal, Russia will control almost half of South Africa’s uranium market - did we learn nothing from the European?
In my opinion one should keep one’s water and one’s energy in the confines of one’s own castle…
Willem Smuts
*The minister said that all mining- rights applications already launched would be processed according to the existing law.
Please login to comment
]]>
South Africa has put a six-month moratorium on all new applications for prospecting licences in the country while a review of irregularities in the administrative process is ongoing.*
Mineral resources minister, Susan Shabangu, also said that amendments would be proposed to the mining act to address the irregularities, with the a proposal to will be discussed by cabinet by the end of this year.
It has been some time now that South Africa has been sailing rather close to the wind when it comes to less- than- transparent dealings at the DME vis a vis regarding old- order rights transfers or exploration and mining licence applications. Amazing things went on at the DME offices around the country;, or rather didn’t happen as these should have.
The big boys just took a ‘grin- and- bear- it’ stance, losing on the swings while hoping to gain on the round-about, while the smaller players just fell over, and many of those with foreign investment plans lost some money and then went home swearing never to return. Nobody affected had the guts to speak out and ‘ministerial discretion’ or more precisely the gross misuse of that discretion, certainly did not help in any way to reduce the problems.
Against this backdrop, the ‘irregularities’ grew ever bigger and bolder. – no surprise there. I guess it had to take a transgression against someone so big and with little to lose as a result of the foul that they were prepared to finally speak out. about the stench.
Meanwhile, in the heart…
World leaders offered up some pointed words for the Democratic Republic of the Congo (DRC) at the G8 summit, shortly after a Canadian mining company ran into a serious conflict there. Last September, Vancouver-based copper miner First Quantum Minerals Ltd. had its Kolwezi Tailings Ccopper pProject expropriated by the DRC government.
Recently, Tthe Financial Post reported recently that the Kolwezi Project passed on to a British Virgin Islands-based company in a highly irregular transaction. First Quantum has taken its case for international arbitration.
In the official communiqué for the G8 conference, one entire declaration was devoted to the DRC.
It calls for an end to resource conflict in the eastern part of the country, and asks candidate countries to the Extractive Industries Transparency Initiative, including the DRC, to “enhance governance and accountability in the extractive sector”.” The singling out of the Congo DRC suggests its governance is becoming a major concern for world leaders, even as they prepare to forgive billions of dollars of the country’s debt.
While the G8 statement on the Congo was unusual, it was also very measured. There was no specific criticism of the country’s political leaders, nor was there any suggestion that debt forgiveness could be rescinded if it does not improve its governance. The First Quantum issue is viewed as an urgent one for officials at the World Bank and the IMF, as the World Bank, is a joint- venture partner on Kolwezi with First Quantum, and the IMF is involved in the Congo’s debt-forgiveness measures.
The World Bank has halted all investments in the DRC through its finance arm, and finds itself in international arbitration for the first time ever.
Are you ready for that bear-hug umfowethu?
Russia will provide South African nuclear power stations with uranium until 2017.
The contract was signed in the Kremlin by President Jacob Zuma and his Russian counterpart Dmitry Medvedev during a recent official visit to the Russian Federation, looking to narrow the trade deficit with one of the most populous nations in the world.
The country’s hoping to build on historical ties with the Russian Federation and the uranium deal is a step in that direction. Under the deal, Russia will control almost half of South Africa’s uranium market - did we learn nothing from the European?
In my opinion one should keep one’s water and one’s energy in the confines of one’s own castle…
Willem Smuts
*The minister said that all mining- rights applications already launched would be processed according to the existing law.
]]>
September 6, 2010 by Dr. Willem Smuts
South Africa has put a six-month moratorium on all new applications for prospecting licences in the country while a review of irregularities in the administrative process is ongoing.*
Mineral resources minister, Susan Shabangu, also said that amendments would be proposed to the mining act to address the irregularities, with the a proposal to will be discussed by cabinet by the end of this year.
It has been some time now that South Africa has been sailing rather close to the wind when it comes to less- than- transparent dealings at the DME vis a vis regarding old- order rights transfers or exploration and mining licence applications. Amazing things went on at the DME offices around the country;, or rather didn’t happen as these should have.
The big boys just took a ‘grin- and- bear- it’ stance, losing on the swings while hoping to gain on the round-about, while the smaller players just fell over, and many of those with foreign investment plans lost some money and then went home swearing never to return. Nobody affected had the guts to speak out and ‘ministerial discretion’ or more precisely the gross misuse of that discretion, certainly did not help in any way to reduce the problems.
Against this backdrop, the ‘irregularities’ grew ever bigger and bolder. – no surprise there. I guess it had to take a transgression against someone so big and with little to lose as a result of the foul that they were prepared to finally speak out. about the stench.
Meanwhile, in the heart…
World leaders offered up some pointed words for the Democratic Republic of the Congo (DRC) at the G8 summit, shortly after a Canadian mining company ran into a serious conflict there. Last September, Vancouver-based copper miner First Quantum Minerals Ltd. had its Kolwezi Tailings Ccopper pProject expropriated by the DRC government.
Recently, Tthe Financial Post reported recently that the Kolwezi Project passed on to a British Virgin Islands-based company in a highly irregular transaction. First Quantum has taken its case for international arbitration.
In the official communiqué for the G8 conference, one entire declaration was devoted to the DRC.
It calls for an end to resource conflict in the eastern part of the country, and asks candidate countries to the Extractive Industries Transparency Initiative, including the DRC, to “enhance governance and accountability in the extractive sector”.” The singling out of the Congo DRC suggests its governance is becoming a major concern for world leaders, even as they prepare to forgive billions of dollars of the country’s debt.
While the G8 statement on the Congo was unusual, it was also very measured. There was no specific criticism of the country’s political leaders, nor was there any suggestion that debt forgiveness could be rescinded if it does not improve its governance. The First Quantum issue is viewed as an urgent one for officials at the World Bank and the IMF, as the World Bank, is a joint- venture partner on Kolwezi with First Quantum, and the IMF is involved in the Congo’s debt-forgiveness measures.
The World Bank has halted all investments in the DRC through its finance arm, and finds itself in international arbitration for the first time ever.
Are you ready for that bear-hug umfowethu?
Russia will provide South African nuclear power stations with uranium until 2017.
The contract was signed in the Kremlin by President Jacob Zuma and his Russian counterpart Dmitry Medvedev during a recent official visit to the Russian Federation, looking to narrow the trade deficit with one of the most populous nations in the world.
The country’s hoping to build on historical ties with the Russian Federation and the uranium deal is a step in that direction. Under the deal, Russia will control almost half of South Africa’s uranium market - did we learn nothing from the European?
In my opinion one should keep one’s water and one’s energy in the confines of one’s own castle…
Willem Smuts
*The minister said that all mining- rights applications already launched would be processed according to the existing law.
Please login to comment
]]>
On 19 June, a chartered plane with 11 people on board, among them the entire board of Sundance Resources, went missing on a flight between Cameroon and Congo.
“No sweet outcome here... methinks!” was a comment by an old Africa hand at the time. Unfortunately, he was right. The wreckage was found three days later in dense jungle in the Republic of Congo with no survivors.
The flight was carrying nine passengers, predominately from Sundance Resources, who were visiting the company’s Mbalam iron ore project in Cameroon and Congo, and conducting high-level meetings with various government representatives of both countries.
The Sundance Resources’ personnel confirmed as being on the plane included:
- Geoff Wedlock (chair)
- Don Lewis (managing director and chief executive officer)
- John Carr-Gregg (company secretary)
- Ken Talbot (non-executive director)
- John Jones (non-executive director)
- Craig Oliver (non-executive director)
- Jeff Duff (representative of Dynamiq, consultant to Sundance Resources).
Despite company policy not to have all key people on one plane, the decision was made to leave a second plane behind as it could not be landed on one of the air strips. Former chair of Sundance, George Jones, has been appointed by the company and major shareholders to lead an interim advisory group tasked to guide the company and rebuild its board.
On behalf of Inside Mining, I express our sincere condolences to the families of the passengers and to the staff of the companies that have lost colleagues and friends in this tragic crash.
The heart of darkness spreading
Concerns are growing in mining circles over developments in a dispute between the DRC’s government and First Quantum Minerals (FQM) following the cancellation of property rights of Kingamyambo Musonoi Tailings (KMT) last August.
Then earlier this year, the DRC Supreme Court withdrew two more of First Quantum's licences in the country, Frontier and Lonshi, in apparent retaliation for FQM’s commencement of international arbitration with respect to the illegal cancellation of the Kolwezi project and its refusal to resolve the dispute by agreeing to submit to arrangements, with unspecified third parties forced on them by the DRC government.
Now a Canadian paper is linking Dan Gertler, a good buddy of President Joseph Kabila, to the new Kolwezi owner...The bleeding hearts worry about rebel generals fuelling anarchy in the coltan and tin trade. Well look no further than the cabal in Kinshasa if you are looking for the big ‘daddy-o’ of anarchy mate!
Nothing Sacred anymore
What started as a promotional gig by the Royal Canadian Mint in 2007 when they minted a once-off CAD$1 million (approximately R7.3 million) face-value coin has since proven to be in demand.
The million-dollar Maple Leaf, which weighs 100 kg and measures 50 cm in diameter, was to go on auction in Austria on 25 June. At the current (mid June) gold price, the coin is worth in the order of US$4.43 million (approximately R32.5 million) by weight alone but was expected to sell for a premium – and I thought coins and such shiny stuff are meant to go in ‘ones pocketses...’
Note: This artilce was originally published in the Inside Mining magazine
]]>
July 15, 2010 by Dr. Willem Smuts
On 19 June, a chartered plane with 11 people on board, among them the entire board of Sundance Resources, went missing on a flight between Cameroon and Congo.
“No sweet outcome here... methinks!” was a comment by an old Africa hand at the time. Unfortunately, he was right. The wreckage was found three days later in dense jungle in the Republic of Congo with no survivors.
The flight was carrying nine passengers, predominately from Sundance Resources, who were visiting the company’s Mbalam iron ore project in Cameroon and Congo, and conducting high-level meetings with various government representatives of both countries.
The Sundance Resources’ personnel confirmed as being on the plane included:
- Geoff Wedlock (chair)
- Don Lewis (managing director and chief executive officer)
- John Carr-Gregg (company secretary)
- Ken Talbot (non-executive director)
- John Jones (non-executive director)
- Craig Oliver (non-executive director)
- Jeff Duff (representative of Dynamiq, consultant to Sundance Resources).
Despite company policy not to have all key people on one plane, the decision was made to leave a second plane behind as it could not be landed on one of the air strips. Former chair of Sundance, George Jones, has been appointed by the company and major shareholders to lead an interim advisory group tasked to guide the company and rebuild its board.
On behalf of Inside Mining, I express our sincere condolences to the families of the passengers and to the staff of the companies that have lost colleagues and friends in this tragic crash.
The heart of darkness spreading
Concerns are growing in mining circles over developments in a dispute between the DRC’s government and First Quantum Minerals (FQM) following the cancellation of property rights of Kingamyambo Musonoi Tailings (KMT) last August.
Then earlier this year, the DRC Supreme Court withdrew two more of First Quantum's licences in the country, Frontier and Lonshi, in apparent retaliation for FQM’s commencement of international arbitration with respect to the illegal cancellation of the Kolwezi project and its refusal to resolve the dispute by agreeing to submit to arrangements, with unspecified third parties forced on them by the DRC government.
Now a Canadian paper is linking Dan Gertler, a good buddy of President Joseph Kabila, to the new Kolwezi owner...The bleeding hearts worry about rebel generals fuelling anarchy in the coltan and tin trade. Well look no further than the cabal in Kinshasa if you are looking for the big ‘daddy-o’ of anarchy mate!
Nothing Sacred anymore
What started as a promotional gig by the Royal Canadian Mint in 2007 when they minted a once-off CAD$1 million (approximately R7.3 million) face-value coin has since proven to be in demand.
The million-dollar Maple Leaf, which weighs 100 kg and measures 50 cm in diameter, was to go on auction in Austria on 25 June. At the current (mid June) gold price, the coin is worth in the order of US$4.43 million (approximately R32.5 million) by weight alone but was expected to sell for a premium – and I thought coins and such shiny stuff are meant to go in ‘ones pocketses...’
Note: This artilce was originally published in the Inside Mining magazine
Please login to comment
]]>
Its been a tough few weeks for Sundance Resources, but there was finally some good news today as the company said that it has received environmental approval from the Cameroon government for its Mbalam project in the West African nation.
This is the project that the Board of Directors were on their way to visit when the plane went down.
]]>
On 19 June, a chartered plane with 11 people on board, among them the entire board of Sundance Resources, went missing on a flight between Cameroon and Congo.
“No sweet outcome here... methinks!” was a comment by an old Africa hand at the time. Unfortunately, he was right. The wreckage was found three days later in dense jungle in the Republic of Congo with no survivors.
The flight was carrying nine passengers, predominately from Sundance Resources, who were visiting the company’s Mbalam iron ore project in Cameroon and Congo, and conducting high-level meetings with various government representatives of both countries.
The Sundance Resources’ personnel confirmed as being on the plane included:
- Geoff Wedlock (chair)
- Don Lewis (managing director and chief executive officer)
- John Carr-Gregg (company secretary)
- Ken Talbot (non-executive director)
- John Jones (non-executive director)
- Craig Oliver (non-executive director)
- Jeff Duff (representative of Dynamiq, consultant to Sundance Resources).
Despite company policy not to have all key people on one plane, the decision was made to leave a second plane behind as it could not be landed on one of the air strips. Former chair of Sundance, George Jones, has been appointed by the company and major shareholders to lead an interim advisory group tasked to guide the company and rebuild its board.
On behalf of Inside Mining, I express our sincere condolences to the families of the passengers and to the staff of the companies that have lost colleagues and friends in this tragic crash.
The heart of darkness spreading
Concerns are growing in mining circles over developments in a dispute between the DRC’s government and First Quantum Minerals (FQM) following the cancellation of property rights of Kingamyambo Musonoi Tailings (KMT) last August.
Then earlier this year, the DRC Supreme Court withdrew two more of First Quantum's licences in the country, Frontier and Lonshi, in apparent retaliation for FQM’s commencement of international arbitration with respect to the illegal cancellation of the Kolwezi project and its refusal to resolve the dispute by agreeing to submit to arrangements, with unspecified third parties forced on them by the DRC government.
Now a Canadian paper is linking Dan Gertler, a good buddy of President Joseph Kabila, to the new Kolwezi owner...The bleeding hearts worry about rebel generals fuelling anarchy in the coltan and tin trade. Well look no further than the cabal in Kinshasa if you are looking for the big ‘daddy-o’ of anarchy mate!
Nothing Sacred anymore
What started as a promotional gig by the Royal Canadian Mint in 2007 when they minted a once-off CAD$1 million (approximately R7.3 million) face-value coin has since proven to be in demand.
The million-dollar Maple Leaf, which weighs 100 kg and measures 50 cm in diameter, was to go on auction in Austria on 25 June. At the current (mid June) gold price, the coin is worth in the order of US$4.43 million (approximately R32.5 million) by weight alone but was expected to sell for a premium – and I thought coins and such shiny stuff are meant to go in ‘ones pocketses...’
Note: This artilce was originally published in the Inside Mining magazine
]]>
July 15, 2010 by Dr. Willem Smuts
On 19 June, a chartered plane with 11 people on board, among them the entire board of Sundance Resources, went missing on a flight between Cameroon and Congo.
“No sweet outcome here... methinks!” was a comment by an old Africa hand at the time. Unfortunately, he was right. The wreckage was found three days later in dense jungle in the Republic of Congo with no survivors.
The flight was carrying nine passengers, predominately from Sundance Resources, who were visiting the company’s Mbalam iron ore project in Cameroon and Congo, and conducting high-level meetings with various government representatives of both countries.
The Sundance Resources’ personnel confirmed as being on the plane included:
- Geoff Wedlock (chair)
- Don Lewis (managing director and chief executive officer)
- John Carr-Gregg (company secretary)
- Ken Talbot (non-executive director)
- John Jones (non-executive director)
- Craig Oliver (non-executive director)
- Jeff Duff (representative of Dynamiq, consultant to Sundance Resources).
Despite company policy not to have all key people on one plane, the decision was made to leave a second plane behind as it could not be landed on one of the air strips. Former chair of Sundance, George Jones, has been appointed by the company and major shareholders to lead an interim advisory group tasked to guide the company and rebuild its board.
On behalf of Inside Mining, I express our sincere condolences to the families of the passengers and to the staff of the companies that have lost colleagues and friends in this tragic crash.
The heart of darkness spreading
Concerns are growing in mining circles over developments in a dispute between the DRC’s government and First Quantum Minerals (FQM) following the cancellation of property rights of Kingamyambo Musonoi Tailings (KMT) last August.
Then earlier this year, the DRC Supreme Court withdrew two more of First Quantum's licences in the country, Frontier and Lonshi, in apparent retaliation for FQM’s commencement of international arbitration with respect to the illegal cancellation of the Kolwezi project and its refusal to resolve the dispute by agreeing to submit to arrangements, with unspecified third parties forced on them by the DRC government.
Now a Canadian paper is linking Dan Gertler, a good buddy of President Joseph Kabila, to the new Kolwezi owner...The bleeding hearts worry about rebel generals fuelling anarchy in the coltan and tin trade. Well look no further than the cabal in Kinshasa if you are looking for the big ‘daddy-o’ of anarchy mate!
Nothing Sacred anymore
What started as a promotional gig by the Royal Canadian Mint in 2007 when they minted a once-off CAD$1 million (approximately R7.3 million) face-value coin has since proven to be in demand.
The million-dollar Maple Leaf, which weighs 100 kg and measures 50 cm in diameter, was to go on auction in Austria on 25 June. At the current (mid June) gold price, the coin is worth in the order of US$4.43 million (approximately R32.5 million) by weight alone but was expected to sell for a premium – and I thought coins and such shiny stuff are meant to go in ‘ones pocketses...’
Note: This artilce was originally published in the Inside Mining magazine
Please login to comment
]]>
Its been a tough few weeks for Sundance Resources, but there was finally some good news today as the company said that it has received environmental approval from the Cameroon government for its Mbalam project in the West African nation.
This is the project that the Board of Directors were on their way to visit when the plane went down.
]]>
Gold peaking?
Global market strategist Don Coxe, chairman of Coxe Advisors, says he believes in "a hitherto-undiscovered erogenous zone in gold bugs: peak gold, which could be the latest ‘big thing’ since peak oil."
He goes on to blame Barrick’s clever new CEO, Aaron Regent for fuelling the flames of desire through the concept of peak gold – hey, if it works for him why not? He suggests investors maintain a high exposure to gold and gold miners whose production comes from politically secure areas.
"The core belief system for gold is that governments can't be trusted," he advises. "Investing in miners dependent on the sustained honesty and wisdom of conspicuously dubious governments may work out for a time, but the principle behind that strategy is oxymoronic."
I can’t fault the good Mr Coxe, but in my opinion this will soon enough leave us with pretty much nowhere to find gold but in international waters or extra-terrestrially... In upcoming issues I will delve (no pun intended) further into the issue of peak gold and its ramifications.
Anglo stepping up to the bus bar
Anglo American has initiated a study for the construction of a new coal-fired power plant in the Witbank area where it has about 60 million tonnes of waste coal dumps at its SA Coal Estates (SACE). This would be enough to feed a 1 200 MW power station for 40 years.
Since Anglo is a major miner of coal, gaining entry into a new and profitable private sector electricity generation industry is a sensible step into an adjacent market where it can clearly compete successfully with the incumbent. The intention would be to build a modular plant in phases, starting at 300 MW. Should the plant go ahead, the benefits would include:
- improved energy security for Anglo American's operations
- reducing the extent of coal discard dumps, which occupy valuable land and result in potential environmental challenges
- lowering of NOx, SOx and particulate emissions by using circulating fluidised bed combustion technology
- the utilisation of an existing (waste) resource that reduces the need for new mining
- introduction of a new power-generation technology
- introduction of diversity, benchmarking and competition into the power sector.
So is this the moment that will finally break Eskom’s stranglehold and set IPPs free? Will other mining, minerals and energy companies be following a similar route? Exxaro has already indicated significant plans in progress as an energy company to generate electricity using various base-load coal, wind, concentrating solar and industrial cogeneration technologies.
The fact is that in the absence of a 20-year national energy-integrated energy resource plan (IRP) and no idea about the funding, with the resulting delays for Eskom's new-build programme, the whole issue of security of supply for existing plants, and adequate power for new investments and projects, is coming to a head. Business can no longer wait for government and Eskom to pull its heads out of the sand – it has to make the decisions now and take the necessary actions. In my opinion it’s the more the merrier and not soon enough!
]]>
June 2, 2010 by Dr. Willem Smuts
Gold peaking?
Global market strategist Don Coxe, chairman of Coxe Advisors, says he believes in "a hitherto-undiscovered erogenous zone in gold bugs: peak gold, which could be the latest ‘big thing’ since peak oil."
He goes on to blame Barrick’s clever new CEO, Aaron Regent for fuelling the flames of desire through the concept of peak gold – hey, if it works for him why not? He suggests investors maintain a high exposure to gold and gold miners whose production comes from politically secure areas.
"The core belief system for gold is that governments can't be trusted," he advises. "Investing in miners dependent on the sustained honesty and wisdom of conspicuously dubious governments may work out for a time, but the principle behind that strategy is oxymoronic."
I can’t fault the good Mr Coxe, but in my opinion this will soon enough leave us with pretty much nowhere to find gold but in international waters or extra-terrestrially... In upcoming issues I will delve (no pun intended) further into the issue of peak gold and its ramifications.
Anglo stepping up to the bus bar
Anglo American has initiated a study for the construction of a new coal-fired power plant in the Witbank area where it has about 60 million tonnes of waste coal dumps at its SA Coal Estates (SACE). This would be enough to feed a 1 200 MW power station for 40 years.
Since Anglo is a major miner of coal, gaining entry into a new and profitable private sector electricity generation industry is a sensible step into an adjacent market where it can clearly compete successfully with the incumbent. The intention would be to build a modular plant in phases, starting at 300 MW. Should the plant go ahead, the benefits would include:
- improved energy security for Anglo American's operations
- reducing the extent of coal discard dumps, which occupy valuable land and result in potential environmental challenges
- lowering of NOx, SOx and particulate emissions by using circulating fluidised bed combustion technology
- the utilisation of an existing (waste) resource that reduces the need for new mining
- introduction of a new power-generation technology
- introduction of diversity, benchmarking and competition into the power sector.
So is this the moment that will finally break Eskom’s stranglehold and set IPPs free? Will other mining, minerals and energy companies be following a similar route? Exxaro has already indicated significant plans in progress as an energy company to generate electricity using various base-load coal, wind, concentrating solar and industrial cogeneration technologies.
The fact is that in the absence of a 20-year national energy-integrated energy resource plan (IRP) and no idea about the funding, with the resulting delays for Eskom's new-build programme, the whole issue of security of supply for existing plants, and adequate power for new investments and projects, is coming to a head. Business can no longer wait for government and Eskom to pull its heads out of the sand – it has to make the decisions now and take the necessary actions. In my opinion it’s the more the merrier and not soon enough!
Please login to comment
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Gold peaking?
Global market strategist Don Coxe, chairman of Coxe Advisors, says he believes in "a hitherto-undiscovered erogenous zone in gold bugs: peak gold, which could be the latest ‘big thing’ since peak oil."
He goes on to blame Barrick’s clever new CEO, Aaron Regent for fuelling the flames of desire through the concept of peak gold – hey, if it works for him why not? He suggests investors maintain a high exposure to gold and gold miners whose production comes from politically secure areas.
"The core belief system for gold is that governments can't be trusted," he advises. "Investing in miners dependent on the sustained honesty and wisdom of conspicuously dubious governments may work out for a time, but the principle behind that strategy is oxymoronic."
I can’t fault the good Mr Coxe, but in my opinion this will soon enough leave us with pretty much nowhere to find gold but in international waters or extra-terrestrially... In upcoming issues I will delve (no pun intended) further into the issue of peak gold and its ramifications.
Anglo stepping up to the bus bar
Anglo American has initiated a study for the construction of a new coal-fired power plant in the Witbank area where it has about 60 million tonnes of waste coal dumps at its SA Coal Estates (SACE). This would be enough to feed a 1 200 MW power station for 40 years.
Since Anglo is a major miner of coal, gaining entry into a new and profitable private sector electricity generation industry is a sensible step into an adjacent market where it can clearly compete successfully with the incumbent. The intention would be to build a modular plant in phases, starting at 300 MW. Should the plant go ahead, the benefits would include:
- improved energy security for Anglo American's operations
- reducing the extent of coal discard dumps, which occupy valuable land and result in potential environmental challenges
- lowering of NOx, SOx and particulate emissions by using circulating fluidised bed combustion technology
- the utilisation of an existing (waste) resource that reduces the need for new mining
- introduction of a new power-generation technology
- introduction of diversity, benchmarking and competition into the power sector.
So is this the moment that will finally break Eskom’s stranglehold and set IPPs free? Will other mining, minerals and energy companies be following a similar route? Exxaro has already indicated significant plans in progress as an energy company to generate electricity using various base-load coal, wind, concentrating solar and industrial cogeneration technologies.
The fact is that in the absence of a 20-year national energy-integrated energy resource plan (IRP) and no idea about the funding, with the resulting delays for Eskom's new-build programme, the whole issue of security of supply for existing plants, and adequate power for new investments and projects, is coming to a head. Business can no longer wait for government and Eskom to pull its heads out of the sand – it has to make the decisions now and take the necessary actions. In my opinion it’s the more the merrier and not soon enough!
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June 2, 2010 by Dr. Willem Smuts
Gold peaking?
Global market strategist Don Coxe, chairman of Coxe Advisors, says he believes in "a hitherto-undiscovered erogenous zone in gold bugs: peak gold, which could be the latest ‘big thing’ since peak oil."
He goes on to blame Barrick’s clever new CEO, Aaron Regent for fuelling the flames of desire through the concept of peak gold – hey, if it works for him why not? He suggests investors maintain a high exposure to gold and gold miners whose production comes from politically secure areas.
"The core belief system for gold is that governments can't be trusted," he advises. "Investing in miners dependent on the sustained honesty and wisdom of conspicuously dubious governments may work out for a time, but the principle behind that strategy is oxymoronic."
I can’t fault the good Mr Coxe, but in my opinion this will soon enough leave us with pretty much nowhere to find gold but in international waters or extra-terrestrially... In upcoming issues I will delve (no pun intended) further into the issue of peak gold and its ramifications.
Anglo stepping up to the bus bar
Anglo American has initiated a study for the construction of a new coal-fired power plant in the Witbank area where it has about 60 million tonnes of waste coal dumps at its SA Coal Estates (SACE). This would be enough to feed a 1 200 MW power station for 40 years.
Since Anglo is a major miner of coal, gaining entry into a new and profitable private sector electricity generation industry is a sensible step into an adjacent market where it can clearly compete successfully with the incumbent. The intention would be to build a modular plant in phases, starting at 300 MW. Should the plant go ahead, the benefits would include:
- improved energy security for Anglo American's operations
- reducing the extent of coal discard dumps, which occupy valuable land and result in potential environmental challenges
- lowering of NOx, SOx and particulate emissions by using circulating fluidised bed combustion technology
- the utilisation of an existing (waste) resource that reduces the need for new mining
- introduction of a new power-generation technology
- introduction of diversity, benchmarking and competition into the power sector.
So is this the moment that will finally break Eskom’s stranglehold and set IPPs free? Will other mining, minerals and energy companies be following a similar route? Exxaro has already indicated significant plans in progress as an energy company to generate electricity using various base-load coal, wind, concentrating solar and industrial cogeneration technologies.
The fact is that in the absence of a 20-year national energy-integrated energy resource plan (IRP) and no idea about the funding, with the resulting delays for Eskom's new-build programme, the whole issue of security of supply for existing plants, and adequate power for new investments and projects, is coming to a head. Business can no longer wait for government and Eskom to pull its heads out of the sand – it has to make the decisions now and take the necessary actions. In my opinion it’s the more the merrier and not soon enough!
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Just a stone’s throw south-west of where the Bisha mine is under construction, Nevsun continues exploring the Harena deposit.
Nevsun recently reported the final assays from the 17 infill diamond drill holes at the Harena deposit within its Bisha exploration licence in Eritrea. Harena lies less than 10 km southwest from the Bisha Mine and the exploration licence is contiguous to the company's Bisha Mining licence.
The infill drilling took place in the latter half of 2009 and was carried out to confirm a previously identified discovery. Harena was originally selected as a potential exploration target based on an alteration anomaly defined on Landsat imagery. A subsequent airborne EM survey defined a moderate conductor over a limited strike length on what was interpreted to be the same stratigraphic horizon as the Bisha Main deposit.
Diamond drilling in 2005 intersected various widths of oxide and sulphide mineralisation over a strike length of 400 m confirming the presence of a satellite VMS (volcanogenic massive sulphide) deposit. As a result of the company's efforts to advance the Bisha Main Zone through feasibility and development, the Harena area was left until late last year for further exploration.
Above: Historics and infill drill locations over the Harena deposit
Holes 28, 39, and 44 showed no significant mineralisation. Historic holes 1 through 27 were carried out and published in 2005. The drill hole locations were selected to infill drill the gossanous oxide cap and underlying sulphide structure on 50 m spacing. All holes were done at 45 or 65 degrees.
The results were positive, and have provided added confidence to the widths and grades of the third VMS near surface deposit on the Bisha concession. A number of dykes have cut the near surface mineralisation at Harena making determinations of actual widths of the zone somewhat difficult but have been estimated to range between 5 m to 35 m over a 400 m strike length.
The deposit is hosted by a sequence of felsic to intermediate volcanics with a distinct footwall often containing kyanite and andalusite. The footwall rocks are often noticeably chloritised.
Darin Wasylik informs me that the company will be doing more gravity work and drilling on other parts of the licence in the near future. Nevsun views the Harena deposit as a very likely source of supplemental feed for the processing plant at Bisha which is currently under construction.
Supplemental feed can provide valuable cash flow as an extension to mine life without having to absorb start up plant capital expenses. Sample preparation and analysis were conducted at ALS Chemex of Vancouver, Canada.
This article was originally published in the Inside Mining magazine.
To view additional images on this topic, please follow these links:
Harena Deposit Area
Drill Rig on Site
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April 30, 2010 by Dr. Willem Smuts
Just a stone’s throw south-west of where the Bisha mine is under construction, Nevsun continues exploring the Harena deposit.
Nevsun recently reported the final assays from the 17 infill diamond drill holes at the Harena deposit within its Bisha exploration licence in Eritrea. Harena lies less than 10 km southwest from the Bisha Mine and the exploration licence is contiguous to the company's Bisha Mining licence.
The infill drilling took place in the latter half of 2009 and was carried out to confirm a previously identified discovery. Harena was originally selected as a potential exploration target based on an alteration anomaly defined on Landsat imagery. A subsequent airborne EM survey defined a moderate conductor over a limited strike length on what was interpreted to be the same stratigraphic horizon as the Bisha Main deposit.
Diamond drilling in 2005 intersected various widths of oxide and sulphide mineralisation over a strike length of 400 m confirming the presence of a satellite VMS (volcanogenic massive sulphide) deposit. As a result of the company's efforts to advance the Bisha Main Zone through feasibility and development, the Harena area was left until late last year for further exploration.
Above: Historics and infill drill locations over the Harena deposit
Holes 28, 39, and 44 showed no significant mineralisation. Historic holes 1 through 27 were carried out and published in 2005. The drill hole locations were selected to infill drill the gossanous oxide cap and underlying sulphide structure on 50 m spacing. All holes were done at 45 or 65 degrees.
The results were positive, and have provided added confidence to the widths and grades of the third VMS near surface deposit on the Bisha concession. A number of dykes have cut the near surface mineralisation at Harena making determinations of actual widths of the zone somewhat difficult but have been estimated to range between 5 m to 35 m over a 400 m strike length.
The deposit is hosted by a sequence of felsic to intermediate volcanics with a distinct footwall often containing kyanite and andalusite. The footwall rocks are often noticeably chloritised.
Darin Wasylik informs me that the company will be doing more gravity work and drilling on other parts of the licence in the near future. Nevsun views the Harena deposit as a very likely source of supplemental feed for the processing plant at Bisha which is currently under construction.
Supplemental feed can provide valuable cash flow as an extension to mine life without having to absorb start up plant capital expenses. Sample preparation and analysis were conducted at ALS Chemex of Vancouver, Canada.
This article was originally published in the Inside Mining magazine.
To view additional images on this topic, please follow these links:
Harena Deposit Area
Drill Rig on Site
Please login to comment
]]>
Just a stone’s throw south-west of where the Bisha mine is under construction, Nevsun continues exploring the Harena deposit.
Nevsun recently reported the final assays from the 17 infill diamond drill holes at the Harena deposit within its Bisha exploration licence in Eritrea. Harena lies less than 10 km southwest from the Bisha Mine and the exploration licence is contiguous to the company's Bisha Mining licence.
The infill drilling took place in the latter half of 2009 and was carried out to confirm a previously identified discovery. Harena was originally selected as a potential exploration target based on an alteration anomaly defined on Landsat imagery. A subsequent airborne EM survey defined a moderate conductor over a limited strike length on what was interpreted to be the same stratigraphic horizon as the Bisha Main deposit.
Diamond drilling in 2005 intersected various widths of oxide and sulphide mineralisation over a strike length of 400 m confirming the presence of a satellite VMS (volcanogenic massive sulphide) deposit. As a result of the company's efforts to advance the Bisha Main Zone through feasibility and development, the Harena area was left until late last year for further exploration.
Above: Historics and infill drill locations over the Harena deposit
Holes 28, 39, and 44 showed no significant mineralisation. Historic holes 1 through 27 were carried out and published in 2005. The drill hole locations were selected to infill drill the gossanous oxide cap and underlying sulphide structure on 50 m spacing. All holes were done at 45 or 65 degrees.
The results were positive, and have provided added confidence to the widths and grades of the third VMS near surface deposit on the Bisha concession. A number of dykes have cut the near surface mineralisation at Harena making determinations of actual widths of the zone somewhat difficult but have been estimated to range between 5 m to 35 m over a 400 m strike length.
The deposit is hosted by a sequence of felsic to intermediate volcanics with a distinct footwall often containing kyanite and andalusite. The footwall rocks are often noticeably chloritised.
Darin Wasylik informs me that the company will be doing more gravity work and drilling on other parts of the licence in the near future. Nevsun views the Harena deposit as a very likely source of supplemental feed for the processing plant at Bisha which is currently under construction.
Supplemental feed can provide valuable cash flow as an extension to mine life without having to absorb start up plant capital expenses. Sample preparation and analysis were conducted at ALS Chemex of Vancouver, Canada.
This article was originally published in the Inside Mining magazine.
To view additional images on this topic, please follow these links:
Harena Deposit Area
Drill Rig on Site
]]>
April 30, 2010 by Dr. Willem Smuts
Just a stone’s throw south-west of where the Bisha mine is under construction, Nevsun continues exploring the Harena deposit.
Nevsun recently reported the final assays from the 17 infill diamond drill holes at the Harena deposit within its Bisha exploration licence in Eritrea. Harena lies less than 10 km southwest from the Bisha Mine and the exploration licence is contiguous to the company's Bisha Mining licence.
The infill drilling took place in the latter half of 2009 and was carried out to confirm a previously identified discovery. Harena was originally selected as a potential exploration target based on an alteration anomaly defined on Landsat imagery. A subsequent airborne EM survey defined a moderate conductor over a limited strike length on what was interpreted to be the same stratigraphic horizon as the Bisha Main deposit.
Diamond drilling in 2005 intersected various widths of oxide and sulphide mineralisation over a strike length of 400 m confirming the presence of a satellite VMS (volcanogenic massive sulphide) deposit. As a result of the company's efforts to advance the Bisha Main Zone through feasibility and development, the Harena area was left until late last year for further exploration.
Above: Historics and infill drill locations over the Harena deposit
Holes 28, 39, and 44 showed no significant mineralisation. Historic holes 1 through 27 were carried out and published in 2005. The drill hole locations were selected to infill drill the gossanous oxide cap and underlying sulphide structure on 50 m spacing. All holes were done at 45 or 65 degrees.
The results were positive, and have provided added confidence to the widths and grades of the third VMS near surface deposit on the Bisha concession. A number of dykes have cut the near surface mineralisation at Harena making determinations of actual widths of the zone somewhat difficult but have been estimated to range between 5 m to 35 m over a 400 m strike length.
The deposit is hosted by a sequence of felsic to intermediate volcanics with a distinct footwall often containing kyanite and andalusite. The footwall rocks are often noticeably chloritised.
Darin Wasylik informs me that the company will be doing more gravity work and drilling on other parts of the licence in the near future. Nevsun views the Harena deposit as a very likely source of supplemental feed for the processing plant at Bisha which is currently under construction.
Supplemental feed can provide valuable cash flow as an extension to mine life without having to absorb start up plant capital expenses. Sample preparation and analysis were conducted at ALS Chemex of Vancouver, Canada.
This article was originally published in the Inside Mining magazine.
To view additional images on this topic, please follow these links:
Harena Deposit Area
Drill Rig on Site
Please login to comment
]]>
Not so much in love anymore?
Back at Indaba 2008, and just after that black week in January of that year when Eskom managed to ground much of South Africa to a halt, Anglo’s Cynthia Caroll told participants she doesn’t see the power crunch as a problem – many in the industry then wondered if she was the right woman for the job after all...
Even before that, BHP Billiton, upon voicing concerns over power supply to their aluminium smelters in KZN, was promptly accused of racism by one clever government minister – end of discussion. Against that backdrop Caroll’s erstwhile position was all but helpful, why if one of the biggest power users in the country is not worried then surely Rome, she is not burning, yes?
Two years later, Carol must see this differently for now it appears that Anglo, as one of the country’s largest power users, is no longer belittling the problem and is engaging with the Department of Energy and Eskom rather more pointedly. Anglo is in the process of figuring out how the lack of supply will constrain its own long-term plans.
Caroll is now “insisting with government” that she will not make any commitment on capital injections until assured of a dependable, long-term, competitively priced energy source – about high time too in my opinion! Government does not heed the little guy; hopefully it will start listening when the big dog barks.
Right now we are squirming under the lack of power pressure – next in line and bearing down upon us like a runaway freight train is the water crisis.
Chairman Tito
Ever since Tito was invited out at the Reserve Bank folks have been wondering where he might pop up next, the man himself was coy saying he’s going fishing first. Well, wonder no more.
On 24 February, AngloGold Ashanti announced the appointment of Tito Mboweni as chairman of the company with effect from 1 June 2010. Mboweni succeeds Russell Edey who retires after eight years as chairman, and a member of the board since AngloGold’s inception in 1998.
In appointing Mboweni, the board took full cognisance of his long and outstanding record of public service. As labour minister from 1994 to 1998, Mboweni was architect of South Africa’s post-apartheid labour legislation. And the past 10 years have cemented his reputation as one of the world’s foremost and highly respected central bank governors.
Comments outgoing chairman Russell Edey, “I am absolutely thrilled to be succeeded by Tito Mboweni. His standing in international business and financial circles, and his clear identification with the values upon which AngloGold Ashanti is built, is all that our company could have asked for.”
One hopes Tito does not harbour any latent ministerial habits that might creep into the new position. But, in my opinion, a man that has the sense to indulge in the art of a good cigar and regularly partake of the thinking man’s sport of casting a fly to unwary trout will be okay!
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April 21, 2010 by Dr. Willem Smuts
Not so much in love anymore?
Back at Indaba 2008, and just after that black week in January of that year when Eskom managed to ground much of South Africa to a halt, Anglo’s Cynthia Caroll told participants she doesn’t see the power crunch as a problem – many in the industry then wondered if she was the right woman for the job after all...
Even before that, BHP Billiton, upon voicing concerns over power supply to their aluminium smelters in KZN, was promptly accused of racism by one clever government minister – end of discussion. Against that backdrop Caroll’s erstwhile position was all but helpful, why if one of the biggest power users in the country is not worried then surely Rome, she is not burning, yes?
Two years later, Carol must see this differently for now it appears that Anglo, as one of the country’s largest power users, is no longer belittling the problem and is engaging with the Department of Energy and Eskom rather more pointedly. Anglo is in the process of figuring out how the lack of supply will constrain its own long-term plans.
Caroll is now “insisting with government” that she will not make any commitment on capital injections until assured of a dependable, long-term, competitively priced energy source – about high time too in my opinion! Government does not heed the little guy; hopefully it will start listening when the big dog barks.
Right now we are squirming under the lack of power pressure – next in line and bearing down upon us like a runaway freight train is the water crisis.
Chairman Tito
Ever since Tito was invited out at the Reserve Bank folks have been wondering where he might pop up next, the man himself was coy saying he’s going fishing first. Well, wonder no more.
On 24 February, AngloGold Ashanti announced the appointment of Tito Mboweni as chairman of the company with effect from 1 June 2010. Mboweni succeeds Russell Edey who retires after eight years as chairman, and a member of the board since AngloGold’s inception in 1998.
In appointing Mboweni, the board took full cognisance of his long and outstanding record of public service. As labour minister from 1994 to 1998, Mboweni was architect of South Africa’s post-apartheid labour legislation. And the past 10 years have cemented his reputation as one of the world’s foremost and highly respected central bank governors.
Comments outgoing chairman Russell Edey, “I am absolutely thrilled to be succeeded by Tito Mboweni. His standing in international business and financial circles, and his clear identification with the values upon which AngloGold Ashanti is built, is all that our company could have asked for.”
One hopes Tito does not harbour any latent ministerial habits that might creep into the new position. But, in my opinion, a man that has the sense to indulge in the art of a good cigar and regularly partake of the thinking man’s sport of casting a fly to unwary trout will be okay!
Please login to comment
]]>
Not so much in love anymore?
Back at Indaba 2008, and just after that black week in January of that year when Eskom managed to ground much of South Africa to a halt, Anglo’s Cynthia Caroll told participants she doesn’t see the power crunch as a problem – many in the industry then wondered if she was the right woman for the job after all...
Even before that, BHP Billiton, upon voicing concerns over power supply to their aluminium smelters in KZN, was promptly accused of racism by one clever government minister – end of discussion. Against that backdrop Caroll’s erstwhile position was all but helpful, why if one of the biggest power users in the country is not worried then surely Rome, she is not burning, yes?
Two years later, Carol must see this differently for now it appears that Anglo, as one of the country’s largest power users, is no longer belittling the problem and is engaging with the Department of Energy and Eskom rather more pointedly. Anglo is in the process of figuring out how the lack of supply will constrain its own long-term plans.
Caroll is now “insisting with government” that she will not make any commitment on capital injections until assured of a dependable, long-term, competitively priced energy source – about high time too in my opinion! Government does not heed the little guy; hopefully it will start listening when the big dog barks.
Right now we are squirming under the lack of power pressure – next in line and bearing down upon us like a runaway freight train is the water crisis.
Chairman Tito
Ever since Tito was invited out at the Reserve Bank folks have been wondering where he might pop up next, the man himself was coy saying he’s going fishing first. Well, wonder no more.
On 24 February, AngloGold Ashanti announced the appointment of Tito Mboweni as chairman of the company with effect from 1 June 2010. Mboweni succeeds Russell Edey who retires after eight years as chairman, and a member of the board since AngloGold’s inception in 1998.
In appointing Mboweni, the board took full cognisance of his long and outstanding record of public service. As labour minister from 1994 to 1998, Mboweni was architect of South Africa’s post-apartheid labour legislation. And the past 10 years have cemented his reputation as one of the world’s foremost and highly respected central bank governors.
Comments outgoing chairman Russell Edey, “I am absolutely thrilled to be succeeded by Tito Mboweni. His standing in international business and financial circles, and his clear identification with the values upon which AngloGold Ashanti is built, is all that our company could have asked for.”
One hopes Tito does not harbour any latent ministerial habits that might creep into the new position. But, in my opinion, a man that has the sense to indulge in the art of a good cigar and regularly partake of the thinking man’s sport of casting a fly to unwary trout will be okay!
]]>
April 21, 2010 by Dr. Willem Smuts
Not so much in love anymore?
Back at Indaba 2008, and just after that black week in January of that year when Eskom managed to ground much of South Africa to a halt, Anglo’s Cynthia Caroll told participants she doesn’t see the power crunch as a problem – many in the industry then wondered if she was the right woman for the job after all...
Even before that, BHP Billiton, upon voicing concerns over power supply to their aluminium smelters in KZN, was promptly accused of racism by one clever government minister – end of discussion. Against that backdrop Caroll’s erstwhile position was all but helpful, why if one of the biggest power users in the country is not worried then surely Rome, she is not burning, yes?
Two years later, Carol must see this differently for now it appears that Anglo, as one of the country’s largest power users, is no longer belittling the problem and is engaging with the Department of Energy and Eskom rather more pointedly. Anglo is in the process of figuring out how the lack of supply will constrain its own long-term plans.
Caroll is now “insisting with government” that she will not make any commitment on capital injections until assured of a dependable, long-term, competitively priced energy source – about high time too in my opinion! Government does not heed the little guy; hopefully it will start listening when the big dog barks.
Right now we are squirming under the lack of power pressure – next in line and bearing down upon us like a runaway freight train is the water crisis.
Chairman Tito
Ever since Tito was invited out at the Reserve Bank folks have been wondering where he might pop up next, the man himself was coy saying he’s going fishing first. Well, wonder no more.
On 24 February, AngloGold Ashanti announced the appointment of Tito Mboweni as chairman of the company with effect from 1 June 2010. Mboweni succeeds Russell Edey who retires after eight years as chairman, and a member of the board since AngloGold’s inception in 1998.
In appointing Mboweni, the board took full cognisance of his long and outstanding record of public service. As labour minister from 1994 to 1998, Mboweni was architect of South Africa’s post-apartheid labour legislation. And the past 10 years have cemented his reputation as one of the world’s foremost and highly respected central bank governors.
Comments outgoing chairman Russell Edey, “I am absolutely thrilled to be succeeded by Tito Mboweni. His standing in international business and financial circles, and his clear identification with the values upon which AngloGold Ashanti is built, is all that our company could have asked for.”
One hopes Tito does not harbour any latent ministerial habits that might creep into the new position. But, in my opinion, a man that has the sense to indulge in the art of a good cigar and regularly partake of the thinking man’s sport of casting a fly to unwary trout will be okay!
Please login to comment
]]>
Results from infill drilling continue to confirm the continuity and high-grade nature at the rich Koka Gold Deposit at the Zara Project in Eritrea.
Close to 80% of infill drilling programme is now completed with further assays pending. A geotechnical drilling programme is about to commence and planning of follow-on drill programmes at Koka East and Koka South are underway.
Assays have now been received from six holes (ZARD 128 having been previously reported) from a planned 31-hole, 5 km infill diamond drilling programme, designed to bring further confidence to the high-grade mineralisation of the Koka ,main zone and to be used as part of the final resource estimation for the Koka bankable feasibility study. Twenty-five diamond drill holes have now been completed and further assay results will be released to the market as they become available.
Following completion of this infill drilling programme, the drill rigs will focus on exploration of nearby targets, particularly the Koka South and Koka East zones, detailed planning for which has commenced. In addition, a five-hole geotechnical programme designed to provide data on ground conditions in the pit highwall will commence shortly.
Koka, which is the flagship deposit at Chalice’s 80%-owned Zara project, has JORC compliant Indicated and Inferred resources of 944 000 oz.
About the Zara Gold Project
The Zara Joint Venture comprises four exploration licences and two prospecting licences covering an area of 615 km2 situated in northern Eritrea, approximately 160 km northwest of Asmara city. Chalice holds an 80% interest in the project with the remaining 20% held by Dragon Mining (ASX: DRA). The Koka gold deposit within the project contains an estimated resource of 5 million tonnes of ore containing 944 000 oz gold, grading 5.8 g/t of gold. Metallurgical test work indicates +95% recovery, with ~60% recovered by gravity.
This article was originally published in the Inside Mining magazine.
To view the images for this article, please go to the following links:
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March 30, 2010 by Dr. Willem Smuts
Results from infill drilling continue to confirm the continuity and high-grade nature at the rich Koka Gold Deposit at the Zara Project in Eritrea.
Close to 80% of infill drilling programme is now completed with further assays pending. A geotechnical drilling programme is about to commence and planning of follow-on drill programmes at Koka East and Koka South are underway.
Assays have now been received from six holes (ZARD 128 having been previously reported) from a planned 31-hole, 5 km infill diamond drilling programme, designed to bring further confidence to the high-grade mineralisation of the Koka ,main zone and to be used as part of the final resource estimation for the Koka bankable feasibility study. Twenty-five diamond drill holes have now been completed and further assay results will be released to the market as they become available.
Following completion of this infill drilling programme, the drill rigs will focus on exploration of nearby targets, particularly the Koka South and Koka East zones, detailed planning for which has commenced. In addition, a five-hole geotechnical programme designed to provide data on ground conditions in the pit highwall will commence shortly.
Koka, which is the flagship deposit at Chalice’s 80%-owned Zara project, has JORC compliant Indicated and Inferred resources of 944 000 oz.
About the Zara Gold Project
The Zara Joint Venture comprises four exploration licences and two prospecting licences covering an area of 615 km2 situated in northern Eritrea, approximately 160 km northwest of Asmara city. Chalice holds an 80% interest in the project with the remaining 20% held by Dragon Mining (ASX: DRA). The Koka gold deposit within the project contains an estimated resource of 5 million tonnes of ore containing 944 000 oz gold, grading 5.8 g/t of gold. Metallurgical test work indicates +95% recovery, with ~60% recovered by gravity.
This article was originally published in the Inside Mining magazine.
To view the images for this article, please go to the following links:
Please login to comment
]]>
Results from infill drilling continue to confirm the continuity and high-grade nature at the rich Koka Gold Deposit at the Zara Project in Eritrea.
Close to 80% of infill drilling programme is now completed with further assays pending. A geotechnical drilling programme is about to commence and planning of follow-on drill programmes at Koka East and Koka South are underway.
Assays have now been received from six holes (ZARD 128 having been previously reported) from a planned 31-hole, 5 km infill diamond drilling programme, designed to bring further confidence to the high-grade mineralisation of the Koka ,main zone and to be used as part of the final resource estimation for the Koka bankable feasibility study. Twenty-five diamond drill holes have now been completed and further assay results will be released to the market as they become available.
Following completion of this infill drilling programme, the drill rigs will focus on exploration of nearby targets, particularly the Koka South and Koka East zones, detailed planning for which has commenced. In addition, a five-hole geotechnical programme designed to provide data on ground conditions in the pit highwall will commence shortly.
Koka, which is the flagship deposit at Chalice’s 80%-owned Zara project, has JORC compliant Indicated and Inferred resources of 944 000 oz.
About the Zara Gold Project
The Zara Joint Venture comprises four exploration licences and two prospecting licences covering an area of 615 km2 situated in northern Eritrea, approximately 160 km northwest of Asmara city. Chalice holds an 80% interest in the project with the remaining 20% held by Dragon Mining (ASX: DRA). The Koka gold deposit within the project contains an estimated resource of 5 million tonnes of ore containing 944 000 oz gold, grading 5.8 g/t of gold. Metallurgical test work indicates +95% recovery, with ~60% recovered by gravity.
This article was originally published in the Inside Mining magazine.
To view the images for this article, please go to the following links:
]]>
March 30, 2010 by Dr. Willem Smuts
Results from infill drilling continue to confirm the continuity and high-grade nature at the rich Koka Gold Deposit at the Zara Project in Eritrea.
Close to 80% of infill drilling programme is now completed with further assays pending. A geotechnical drilling programme is about to commence and planning of follow-on drill programmes at Koka East and Koka South are underway.
Assays have now been received from six holes (ZARD 128 having been previously reported) from a planned 31-hole, 5 km infill diamond drilling programme, designed to bring further confidence to the high-grade mineralisation of the Koka ,main zone and to be used as part of the final resource estimation for the Koka bankable feasibility study. Twenty-five diamond drill holes have now been completed and further assay results will be released to the market as they become available.
Following completion of this infill drilling programme, the drill rigs will focus on exploration of nearby targets, particularly the Koka South and Koka East zones, detailed planning for which has commenced. In addition, a five-hole geotechnical programme designed to provide data on ground conditions in the pit highwall will commence shortly.
Koka, which is the flagship deposit at Chalice’s 80%-owned Zara project, has JORC compliant Indicated and Inferred resources of 944 000 oz.
About the Zara Gold Project
The Zara Joint Venture comprises four exploration licences and two prospecting licences covering an area of 615 km2 situated in northern Eritrea, approximately 160 km northwest of Asmara city. Chalice holds an 80% interest in the project with the remaining 20% held by Dragon Mining (ASX: DRA). The Koka gold deposit within the project contains an estimated resource of 5 million tonnes of ore containing 944 000 oz gold, grading 5.8 g/t of gold. Metallurgical test work indicates +95% recovery, with ~60% recovered by gravity.
This article was originally published in the Inside Mining magazine.
To view the images for this article, please go to the following links:
Please login to comment
]]>
Nevsun and the Eritrean National Mining Corporation (ENAMCO) have concluded that the debt facilities are sufficiently unreliable and inconclusive for their project and took the necessary steps to remedy the situation.
Nevsun Resources has raised US$110 million through a share placement to develop its Bisha gold/silver/copper/zinc mine after the US$235 million project debt package’s European lenders – as well as the German government, which was to provide political risk cover through its UFK programme – stalled over draw down following UN sanctions against the host country in December.
Although none of the lenders have definitively cancelled agreements yet, Nevsun is keen to push on with a project, which is already 50% complete and therefore has taken a prudent business approach to secure funding needed to complete the Bisha project on schedule, and has no practical alternative but to proceed without the debt providers.
While the company indicated it would have preferred to stay with a leveraged project, the higher priority is to get the project built and producing cash. Owing to the very robust nature of the project and assuming recent metals prices, the payback to the company is now expected to be within less than one year.
Nevsun is confident that the funds from this private placement, together with its existing cash and ongoing one-third contribution by the State of Eritrea to Bisha will be sufficient to see the Bisha project through to cash positive operations. The funding arrangements are in excess of estimated completion costs. This will provide a reasonable cushion in the event of unforeseen events.
ENAMCO has reliably provided its one-third contributing share of financing to Bisha as the project progressed. In addition, the state continues to provide overall support for a responsible mining industry in the early stages of development within the country.
Now let’s think about this development for a moment – Nevsun, in the face of UN sanctions, manages to do a private placement to around US$110 million; note also that this is a non-brokered placement. In other words, there was no friendly coercion or introductions to get the money together. This was a really large amount of cash available to Nevsun without having to be helped by a bunch of brokers.
Clearly, we are looking at a serious private equity find at play here – or more like a sovereign wealth fund like the China Investment Corporation (CIC)!
Click Here to view an image of the Bisha Project.
This article was orginally published in the Inside Mining magazine.
]]>
March 23, 2010 by Dr. Willem Smuts
Nevsun and the Eritrean National Mining Corporation (ENAMCO) have concluded that the debt facilities are sufficiently unreliable and inconclusive for their project and took the necessary steps to remedy the situation.
Nevsun Resources has raised US$110 million through a share placement to develop its Bisha gold/silver/copper/zinc mine after the US$235 million project debt package’s European lenders – as well as the German government, which was to provide political risk cover through its UFK programme – stalled over draw down following UN sanctions against the host country in December.
Although none of the lenders have definitively cancelled agreements yet, Nevsun is keen to push on with a project, which is already 50% complete and therefore has taken a prudent business approach to secure funding needed to complete the Bisha project on schedule, and has no practical alternative but to proceed without the debt providers.
While the company indicated it would have preferred to stay with a leveraged project, the higher priority is to get the project built and producing cash. Owing to the very robust nature of the project and assuming recent metals prices, the payback to the company is now expected to be within less than one year.
Nevsun is confident that the funds from this private placement, together with its existing cash and ongoing one-third contribution by the State of Eritrea to Bisha will be sufficient to see the Bisha project through to cash positive operations. The funding arrangements are in excess of estimated completion costs. This will provide a reasonable cushion in the event of unforeseen events.
ENAMCO has reliably provided its one-third contributing share of financing to Bisha as the project progressed. In addition, the state continues to provide overall support for a responsible mining industry in the early stages of development within the country.
Now let’s think about this development for a moment – Nevsun, in the face of UN sanctions, manages to do a private placement to around US$110 million; note also that this is a non-brokered placement. In other words, there was no friendly coercion or introductions to get the money together. This was a really large amount of cash available to Nevsun without having to be helped by a bunch of brokers.
Clearly, we are looking at a serious private equity find at play here – or more like a sovereign wealth fund like the China Investment Corporation (CIC)!
Click Here to view an image of the Bisha Project.
This article was orginally published in the Inside Mining magazine.
Please login to comment
]]>
Nevsun and the Eritrean National Mining Corporation (ENAMCO) have concluded that the debt facilities are sufficiently unreliable and inconclusive for their project and took the necessary steps to remedy the situation.
Nevsun Resources has raised US$110 million through a share placement to develop its Bisha gold/silver/copper/zinc mine after the US$235 million project debt package’s European lenders – as well as the German government, which was to provide political risk cover through its UFK programme – stalled over draw down following UN sanctions against the host country in December.
Although none of the lenders have definitively cancelled agreements yet, Nevsun is keen to push on with a project, which is already 50% complete and therefore has taken a prudent business approach to secure funding needed to complete the Bisha project on schedule, and has no practical alternative but to proceed without the debt providers.
While the company indicated it would have preferred to stay with a leveraged project, the higher priority is to get the project built and producing cash. Owing to the very robust nature of the project and assuming recent metals prices, the payback to the company is now expected to be within less than one year.
Nevsun is confident that the funds from this private placement, together with its existing cash and ongoing one-third contribution by the State of Eritrea to Bisha will be sufficient to see the Bisha project through to cash positive operations. The funding arrangements are in excess of estimated completion costs. This will provide a reasonable cushion in the event of unforeseen events.
ENAMCO has reliably provided its one-third contributing share of financing to Bisha as the project progressed. In addition, the state continues to provide overall support for a responsible mining industry in the early stages of development within the country.
Now let’s think about this development for a moment – Nevsun, in the face of UN sanctions, manages to do a private placement to around US$110 million; note also that this is a non-brokered placement. In other words, there was no friendly coercion or introductions to get the money together. This was a really large amount of cash available to Nevsun without having to be helped by a bunch of brokers.
Clearly, we are looking at a serious private equity find at play here – or more like a sovereign wealth fund like the China Investment Corporation (CIC)!
Click Here to view an image of the Bisha Project.
This article was orginally published in the Inside Mining magazine.
]]>
March 23, 2010 by Dr. Willem Smuts
Nevsun and the Eritrean National Mining Corporation (ENAMCO) have concluded that the debt facilities are sufficiently unreliable and inconclusive for their project and took the necessary steps to remedy the situation.
Nevsun Resources has raised US$110 million through a share placement to develop its Bisha gold/silver/copper/zinc mine after the US$235 million project debt package’s European lenders – as well as the German government, which was to provide political risk cover through its UFK programme – stalled over draw down following UN sanctions against the host country in December.
Although none of the lenders have definitively cancelled agreements yet, Nevsun is keen to push on with a project, which is already 50% complete and therefore has taken a prudent business approach to secure funding needed to complete the Bisha project on schedule, and has no practical alternative but to proceed without the debt providers.
While the company indicated it would have preferred to stay with a leveraged project, the higher priority is to get the project built and producing cash. Owing to the very robust nature of the project and assuming recent metals prices, the payback to the company is now expected to be within less than one year.
Nevsun is confident that the funds from this private placement, together with its existing cash and ongoing one-third contribution by the State of Eritrea to Bisha will be sufficient to see the Bisha project through to cash positive operations. The funding arrangements are in excess of estimated completion costs. This will provide a reasonable cushion in the event of unforeseen events.
ENAMCO has reliably provided its one-third contributing share of financing to Bisha as the project progressed. In addition, the state continues to provide overall support for a responsible mining industry in the early stages of development within the country.
Now let’s think about this development for a moment – Nevsun, in the face of UN sanctions, manages to do a private placement to around US$110 million; note also that this is a non-brokered placement. In other words, there was no friendly coercion or introductions to get the money together. This was a really large amount of cash available to Nevsun without having to be helped by a bunch of brokers.
Clearly, we are looking at a serious private equity find at play here – or more like a sovereign wealth fund like the China Investment Corporation (CIC)!
Click Here to view an image of the Bisha Project.
This article was orginally published in the Inside Mining magazine.
Please login to comment
]]>
Blackthorn Resources’ joint venture partner BHP Billiton has elected to manage and fully fund the next exploration stage (phase 4) at the Mumbwa Iron Oxide Copper Gold (IOCG) project in Zambia.
Blackthorn mid-2009 engaged the MSA Group from South Africa as an independent consultant to conduct the mineral resource estimate, which is reported in accordance with the 2004 JORC Code. Using a 0.2% Cu cut-off, an in situ inferred mineral resource containing approximately 345 million tonnes at 0.47% copper and 0.06 g/t gold was estimated for the Kitumba anomaly, which covers an area of approximately 1 800 m by 400 m where drilling was focused, and modelled to a depth of 900 m from surface.
Data for the mineral resource estimate were collected from current and previous drilling campaigns and included 4 794 m from 25 cored drill holes and one reverse circulation drill hole.
Table 1 - Kitumba inferred mineral resource estimate – October 2009
|
anomaly
|
Category
|
Million tonnes (Mt)
|
Copper Cu %
|
Gold g/tAu g/t
|
Silver Ag g/t
|
Uranium U ppm
|
|
Kitumba
|
Inferred
|
345
|
0.47
|
0.06
|
1.38
|
45
|
The Mumbwa project area is located approximately 200 km west of Zambia’s capital, Lusaka, and includes large-scale geophysical anomalies (magnetic, gravity and radiometric) which trend over a 25 km strike length across the project area. T
he Kitumba and the Mushingashi anomalies are the main target areas for exploration, with ongoing work being planned. The mineral resource at Kitumba is expressed on surface by a massive haematite replacement breccia system, with Cu and Au mineralisation spatially associated with faults and lineaments that crosscut the region.
Resource estimation methodology
Geological modelling was undertaken using Leapfrog 3D geological modelling software, considered highly suited to this type of complex deposit. Separate grade envelopes were generated at 0.15%, 0.25% and 0.5% Cu cut-off grades.
The generated envelopes followed the major and secondary structural and alteration trends recognised in the wireframes created in Leapfrog were manually truncated in areas where drilling data did not warrant further extrapolation. These truncations mark the areas where it is considered the resource is open ended. Wireframe solids were also created for breccia zones and for major alteration assemblages, both of which mirrored the mineralisation trends.
The geological model block dimensions were set at 50 m northing by 50 m easting, by 2 m RL, with sub-ceiling in the northerly and easterly directions, to conform to the drilling fence line-spacing and along-fence drill-hole spacing.
The mineral resource estimate was interpolated using Ordinary Kriging within Datamine software based on 2 m composited drill-hole samples into a model with a strike length of 1.8 km and a maximum depth extent of approximately 900 m below surface. The currently interpreted level of geological and grade continuity has placed the resource in the Inferred category.
South African based Venmyn Rand, an independent adviser of mineral project valuation and statutory compliance, did an independent peer review of the MSA resource model.
Further potential
Computer modelling of the mineral resource at Kitumba indicates that mineralisation is “open” at depth and towards the southwest, west and north-westerly directions.
Additional drilling over the area has the potential to increase the volume of and confidence in the mineral resource and further delineate the alteration halos, which are typical of IOCG style mineralisation. An increased understanding of the alteration trends may assist in targeting extensions to the mineralised system at the Kitumba anomaly.
Drilling
MSA has recommended some additional closer spaced drilling to increase confidence in the mineral resource estimate and potentially upgrade parts of the resource estimate into the indicated and measured categories. In addition, step-out drilling is recommended in order to potentially increase the size of the resource.
Additional drilling has the potential to increase the volume of and confidence in the Kitumba inferred mineral resource. However, a decision to carry out further drilling on the Kitumba anomaly during this phase will be made in the near future. The previous phase 3B drilling programmeme was suspended in September 2009, owing to the active presence of lions within the planned drilling area and the onset of the annual wet season.
Resources with varying cut off grades
The Kitumba resource model was interrogated over a range of copper cut-off grades to observe the trend in tonnage. Table 2 shows the tonnage variation using 0.0%, 0.2% and 0.5% copper cut-off grades.
Table 2 – Kitumba tonnage variation with range of copper cut-off grades
|
Copper cut off (%)
|
Million tonnes (Mt)
|
Copper Cu %
|
Gold g/t Au g/t
|
Silver Ag g/t
|
Uranium U ppm
|
|
0.00
|
571
|
0.34
|
0.06
|
1.45
|
44
|
|
0.20
|
345
|
0.47
|
0.06
|
1.38
|
45
|
|
0.50
|
87
|
0.94
|
0.05
|
1.27
|
37
|
Managing director Scott Lowe said, “This is a very important milestone for the Mumbwa project, as it demonstrates the developments being made in advancing the projects status. The work undertaken on the Kitumba anomaly represents only part of the project’s potential. There is additional work to complete on the neighbouring Mushingashi anomaly, and it is still too early to predict an outcome on that work."
He added, "This is the first time Blackthorn Resources has been able to quantify a mineral resource at Kitumba, and the company is very pleased indeed with the magnitude of copper mineralisation on this anomaly alone. We are excited about potential for the future of the entire project.”
The table now set for phase 4
In January BHP has elected to manage and fully fund the next stage of exploration (phase 4) at Mumbwa. The phase 4 programmeme will include completion of a concept study to evaluate the exploration and development potential of the Mumbwa IOCG project.
The concept study will incorporate additional data collected in phase 4 from drilling the Mushingashi anomaly together with the inferred mineral resource estimated from the Kitumba anomaly. The total strike length of the Kitumba-Mutoya-Mushingashi anomaly is approximately 25 km, which includes the Mushingashi ‘density’ anomaly which trends north-south and extends for 19 km along strike.
It is planned to conduct a ground-based geophysical IP survey over the Mushingashi anomaly to assist in reviewing and selecting drill targets. Details of the IP survey are being finalised and BHP Billiton is currently selecting a geophysical contractor and finalising logistics for the programmeme. BHP expects that results from the IP survey would be available for confirming phase 4 targets prior to drilling.
The phase 4 programme will utilise two ‘universal’ drilling rigs capable of reverse circulation and cored drilling methods to test the anomaly. At the time of writing the location of 8 holes for 6,400m have already been pegged at Mushingashi. Additional holes are likely to be generated through the pending IP survey.
The final drill pattern will be based on design work currently being undertaken. Drilling will commence at Mushingashi with initial drill holes located near hole ZMMUM-008 which had revealed interesting IOCG mineral alteration in the previous phase 3B drilling programme.
The extent and characteristics of the alteration observed in ZMMUM-008 are indicative that the core of a broader IOCG system could potentially be located in the vicinity. A nearby hole, ZMMUM-009A, was drilled during the previous phase 3B programme and terminated at a depth of 122.8 m within a monzonite/diorite dyke.
BHP Billiton is in the process of finalising the selection of a drilling contractor to provide two drilling rigs for the phase 4 programme and the contract is expected to be finalised shortly. It is also expected that the selected contractor will commence mobilisation of its drilling crew in late March 2010 in anticipation of commencing drilling in April 2010 following the end of the wet season.
Mobilisation of drilling equipment in the field is also dependant on ground conditions, as access through low-lying, swampy areas may be problematic too soon after the wet.
After BHP’s decision to move ahead Scott Lowe said: “We are very pleased that BHP Billiton has chosen to fund this phase of the project that will include a concept study. We are also excited about further exploration work being undertaken to assess the full potential at Mumbwa.”
No time to sit idle
The wet season in Zambia is just that – wet – and it is practically impossible to carry out field work. In order to ensure no more time is lost to the big cats and working conditions are improved for the field teams, the wet season was used to make substantial improvements on site. These included the construction of a new core shed to store all core drilled from the Mumbwa project.
In addition, an upgrade of the accommodation camp has commenced and construction of demountable housing is in progress. Part of the camp upgrade also included an upgrade of a medical clinic and installation of improved satellite communication services.
A fully lined earthen dam was constructed to accumulate borehole water that is used to supply the camp and provide sufficient water for drilling services. As part of the wildlife management plan, the camp and dam have been fully enclosed by electrified fencing. Electrified fencing at drill sites as well as posting of armed rangers from the Mushingashi Game Reserve are also planned.
This article was originally published in the February issue of the Inside Mining magazine.
To view the photos relating to this article, please click on the following links:
- Kitumba Anomaly
- Kitumba-Mutoya-Mushingash Anomalies
- Kitumba NS Section Model
]]>
March 5, 2010 by Dr. Willem Smuts
Blackthorn Resources’ joint venture partner BHP Billiton has elected to manage and fully fund the next exploration stage (phase 4) at the Mumbwa Iron Oxide Copper Gold (IOCG) project in Zambia.
Blackthorn mid-2009 engaged the MSA Group from South Africa as an independent consultant to conduct the mineral resource estimate, which is reported in accordance with the 2004 JORC Code. Using a 0.2% Cu cut-off, an in situ inferred mineral resource containing approximately 345 million tonnes at 0.47% copper and 0.06 g/t gold was estimated for the Kitumba anomaly, which covers an area of approximately 1 800 m by 400 m where drilling was focused, and modelled to a depth of 900 m from surface.
Data for the mineral resource estimate were collected from current and previous drilling campaigns and included 4 794 m from 25 cored drill holes and one reverse circulation drill hole.
Table 1 - Kitumba inferred mineral resource estimate – October 2009
|
anomaly
|
Category
|
Million tonnes (Mt)
|
Copper Cu %
|
Gold g/tAu g/t
|
Silver Ag g/t
|
Uranium U ppm
|
|
Kitumba
|
Inferred
|
345
|
0.47
|
0.06
|
1.38
|
45
|
The Mumbwa project area is located approximately 200 km west of Zambia’s capital, Lusaka, and includes large-scale geophysical anomalies (magnetic, gravity and radiometric) which trend over a 25 km strike length across the project area. T
he Kitumba and the Mushingashi anomalies are the main target areas for exploration, with ongoing work being planned. The mineral resource at Kitumba is expressed on surface by a massive haematite replacement breccia system, with Cu and Au mineralisation spatially associated with faults and lineaments that crosscut the region.
Resource estimation methodology
Geological modelling was undertaken using Leapfrog 3D geological modelling software, considered highly suited to this type of complex deposit. Separate grade envelopes were generated at 0.15%, 0.25% and 0.5% Cu cut-off grades.
The generated envelopes followed the major and secondary structural and alteration trends recognised in the wireframes created in Leapfrog were manually truncated in areas where drilling data did not warrant further extrapolation. These truncations mark the areas where it is considered the resource is open ended. Wireframe solids were also created for breccia zones and for major alteration assemblages, both of which mirrored the mineralisation trends.
The geological model block dimensions were set at 50 m northing by 50 m easting, by 2 m RL, with sub-ceiling in the northerly and easterly directions, to conform to the drilling fence line-spacing and along-fence drill-hole spacing.
The mineral resource estimate was interpolated using Ordinary Kriging within Datamine software based on 2 m composited drill-hole samples into a model with a strike length of 1.8 km and a maximum depth extent of approximately 900 m below surface. The currently interpreted level of geological and grade continuity has placed the resource in the Inferred category.
South African based Venmyn Rand, an independent adviser of mineral project valuation and statutory compliance, did an independent peer review of the MSA resource model.
Further potential
Computer modelling of the mineral resource at Kitumba indicates that mineralisation is “open” at depth and towards the southwest, west and north-westerly directions.
Additional drilling over the area has the potential to increase the volume of and confidence in the mineral resource and further delineate the alteration halos, which are typical of IOCG style mineralisation. An increased understanding of the alteration trends may assist in targeting extensions to the mineralised system at the Kitumba anomaly.
Drilling
MSA has recommended some additional closer spaced drilling to increase confidence in the mineral resource estimate and potentially upgrade parts of the resource estimate into the indicated and measured categories. In addition, step-out drilling is recommended in order to potentially increase the size of the resource.
Additional drilling has the potential to increase the volume of and confidence in the Kitumba inferred mineral resource. However, a decision to carry out further drilling on the Kitumba anomaly during this phase will be made in the near future. The previous phase 3B drilling programmeme was suspended in September 2009, owing to the active presence of lions within the planned drilling area and the onset of the annual wet season.
Resources with varying cut off grades
The Kitumba resource model was interrogated over a range of copper cut-off grades to observe the trend in tonnage. Table 2 shows the tonnage variation using 0.0%, 0.2% and 0.5% copper cut-off grades.
Table 2 – Kitumba tonnage variation with range of copper cut-off grades
|
Copper cut off (%)
|
Million tonnes (Mt)
|
Copper Cu %
|
Gold g/t Au g/t
|
Silver Ag g/t
|
Uranium U ppm
|
|
0.00
|
571
|
0.34
|
0.06
|
1.45
|
44
|
|
0.20
|
345
|
0.47
|
0.06
|
1.38
|
45
|
|
0.50
|
87
|
0.94
|
0.05
|
1.27
|
37
|
Managing director Scott Lowe said, “This is a very important milestone for the Mumbwa project, as it demonstrates the developments being made in advancing the projects status. The work undertaken on the Kitumba anomaly represents only part of the project’s potential. There is additional work to complete on the neighbouring Mushingashi anomaly, and it is still too early to predict an outcome on that work."
He added, "This is the first time Blackthorn Resources has been able to quantify a mineral resource at Kitumba, and the company is very pleased indeed with the magnitude of copper mineralisation on this anomaly alone. We are excited about potential for the future of the entire project.”
The table now set for phase 4
In January BHP has elected to manage and fully fund the next stage of exploration (phase 4) at Mumbwa. The phase 4 programmeme will include completion of a concept study to evaluate the exploration and development potential of the Mumbwa IOCG project.
The concept study will incorporate additional data collected in phase 4 from drilling the Mushingashi anomaly together with the inferred mineral resource estimated from the Kitumba anomaly. The total strike length of the Kitumba-Mutoya-Mushingashi anomaly is approximately 25 km, which includes the Mushingashi ‘density’ anomaly which trends north-south and extends for 19 km along strike.
It is planned to conduct a ground-based geophysical IP survey over the Mushingashi anomaly to assist in reviewing and selecting drill targets. Details of the IP survey are being finalised and BHP Billiton is currently selecting a geophysical contractor and finalising logistics for the programmeme. BHP expects that results from the IP survey would be available for confirming phase 4 targets prior to drilling.
The phase 4 programme will utilise two ‘universal’ drilling rigs capable of reverse circulation and cored drilling methods to test the anomaly. At the time of writing the location of 8 holes for 6,400m have already been pegged at Mushingashi. Additional holes are likely to be generated through the pending IP survey.
The final drill pattern will be based on design work currently being undertaken. Drilling will commence at Mushingashi with initial drill holes located near hole ZMMUM-008 which had revealed interesting IOCG mineral alteration in the previous phase 3B drilling programme.
The extent and characteristics of the alteration observed in ZMMUM-008 are indicative that the core of a broader IOCG system could potentially be located in the vicinity. A nearby hole, ZMMUM-009A, was drilled during the previous phase 3B programme and terminated at a depth of 122.8 m within a monzonite/diorite dyke.
BHP Billiton is in the process of finalising the selection of a drilling contractor to provide two drilling rigs for the phase 4 programme and the contract is expected to be finalised shortly. It is also expected that the selected contractor will commence mobilisation of its drilling crew in late March 2010 in anticipation of commencing drilling in April 2010 following the end of the wet season.
Mobilisation of drilling equipment in the field is also dependant on ground conditions, as access through low-lying, swampy areas may be problematic too soon after the wet.
After BHP’s decision to move ahead Scott Lowe said: “We are very pleased that BHP Billiton has chosen to fund this phase of the project that will include a concept study. We are also excited about further exploration work being undertaken to assess the full potential at Mumbwa.”
No time to sit idle
The wet season in Zambia is just that – wet – and it is practically impossible to carry out field work. In order to ensure no more time is lost to the big cats and working conditions are improved for the field teams, the wet season was used to make substantial improvements on site. These included the construction of a new core shed to store all core drilled from the Mumbwa project.
In addition, an upgrade of the accommodation camp has commenced and construction of demountable housing is in progress. Part of the camp upgrade also included an upgrade of a medical clinic and installation of improved satellite communication services.
A fully lined earthen dam was constructed to accumulate borehole water that is used to supply the camp and provide sufficient water for drilling services. As part of the wildlife management plan, the camp and dam have been fully enclosed by electrified fencing. Electrified fencing at drill sites as well as posting of armed rangers from the Mushingashi Game Reserve are also planned.
This article was originally published in the February issue of the Inside Mining magazine.
To view the photos relating to this article, please click on the following links:
- Kitumba Anomaly
- Kitumba-Mutoya-Mushingash Anomalies
- Kitumba NS Section Model
Please login to comment
]]>
Blackthorn Resources’ joint venture partner BHP Billiton has elected to manage and fully fund the next exploration stage (phase 4) at the Mumbwa Iron Oxide Copper Gold (IOCG) project in Zambia.
Blackthorn mid-2009 engaged the MSA Group from South Africa as an independent consultant to conduct the mineral resource estimate, which is reported in accordance with the 2004 JORC Code. Using a 0.2% Cu cut-off, an in situ inferred mineral resource containing approximately 345 million tonnes at 0.47% copper and 0.06 g/t gold was estimated for the Kitumba anomaly, which covers an area of approximately 1 800 m by 400 m where drilling was focused, and modelled to a depth of 900 m from surface.
Data for the mineral resource estimate were collected from current and previous drilling campaigns and included 4 794 m from 25 cored drill holes and one reverse circulation drill hole.
Table 1 - Kitumba inferred mineral resource estimate – October 2009
|
anomaly
|
Category
|
Million tonnes (Mt)
|
Copper Cu %
|
Gold g/tAu g/t
|
Silver Ag g/t
|
Uranium U ppm
|
|
Kitumba
|
Inferred
|
345
|
0.47
|
0.06
|
1.38
|
45
|
The Mumbwa project area is located approximately 200 km west of Zambia’s capital, Lusaka, and includes large-scale geophysical anomalies (magnetic, gravity and radiometric) which trend over a 25 km strike length across the project area. T
he Kitumba and the Mushingashi anomalies are the main target areas for exploration, with ongoing work being planned. The mineral resource at Kitumba is expressed on surface by a massive haematite replacement breccia system, with Cu and Au mineralisation spatially associated with faults and lineaments that crosscut the region.
Resource estimation methodology
Geological modelling was undertaken using Leapfrog 3D geological modelling software, considered highly suited to this type of complex deposit. Separate grade envelopes were generated at 0.15%, 0.25% and 0.5% Cu cut-off grades.
The generated envelopes followed the major and secondary structural and alteration trends recognised in the wireframes created in Leapfrog were manually truncated in areas where drilling data did not warrant further extrapolation. These truncations mark the areas where it is considered the resource is open ended. Wireframe solids were also created for breccia zones and for major alteration assemblages, both of which mirrored the mineralisation trends.
The geological model block dimensions were set at 50 m northing by 50 m easting, by 2 m RL, with sub-ceiling in the northerly and easterly directions, to conform to the drilling fence line-spacing and along-fence drill-hole spacing.
The mineral resource estimate was interpolated using Ordinary Kriging within Datamine software based on 2 m composited drill-hole samples into a model with a strike length of 1.8 km and a maximum depth extent of approximately 900 m below surface. The currently interpreted level of geological and grade continuity has placed the resource in the Inferred category.
South African based Venmyn Rand, an independent adviser of mineral project valuation and statutory compliance, did an independent peer review of the MSA resource model.
Further potential
Computer modelling of the mineral resource at Kitumba indicates that mineralisation is “open” at depth and towards the southwest, west and north-westerly directions.
Additional drilling over the area has the potential to increase the volume of and confidence in the mineral resource and further delineate the alteration halos, which are typical of IOCG style mineralisation. An increased understanding of the alteration trends may assist in targeting extensions to the mineralised system at the Kitumba anomaly.
Drilling
MSA has recommended some additional closer spaced drilling to increase confidence in the mineral resource estimate and potentially upgrade parts of the resource estimate into the indicated and measured categories. In addition, step-out drilling is recommended in order to potentially increase the size of the resource.
Additional drilling has the potential to increase the volume of and confidence in the Kitumba inferred mineral resource. However, a decision to carry out further drilling on the Kitumba anomaly during this phase will be made in the near future. The previous phase 3B drilling programmeme was suspended in September 2009, owing to the active presence of lions within the planned drilling area and the onset of the annual wet season.
Resources with varying cut off grades
The Kitumba resource model was interrogated over a range of copper cut-off grades to observe the trend in tonnage. Table 2 shows the tonnage variation using 0.0%, 0.2% and 0.5% copper cut-off grades.
Table 2 – Kitumba tonnage variation with range of copper cut-off grades
|
Copper cut off (%)
|
Million tonnes (Mt)
|
Copper Cu %
|
Gold g/t Au g/t
|
Silver Ag g/t
|
Uranium U ppm
|
|
0.00
|
571
|
0.34
|
0.06
|
1.45
|
44
|
|
0.20
|
345
|
0.47
|
0.06
|
1.38
|
45
|
|
0.50
|
87
|
0.94
|
0.05
|
1.27
|
37
|
Managing director Scott Lowe said, “This is a very important milestone for the Mumbwa project, as it demonstrates the developments being made in advancing the projects status. The work undertaken on the Kitumba anomaly represents only part of the project’s potential. There is additional work to complete on the neighbouring Mushingashi anomaly, and it is still too early to predict an outcome on that work."
He added, "This is the first time Blackthorn Resources has been able to quantify a mineral resource at Kitumba, and the company is very pleased indeed with the magnitude of copper mineralisation on this anomaly alone. We are excited about potential for the future of the entire project.”
The table now set for phase 4
In January BHP has elected to manage and fully fund the next stage of exploration (phase 4) at Mumbwa. The phase 4 programmeme will include completion of a concept study to evaluate the exploration and development potential of the Mumbwa IOCG project.
The concept study will incorporate additional data collected in phase 4 from drilling the Mushingashi anomaly together with the inferred mineral resource estimated from the Kitumba anomaly. The total strike length of the Kitumba-Mutoya-Mushingashi anomaly is approximately 25 km, which includes the Mushingashi ‘density’ anomaly which trends north-south and extends for 19 km along strike.
It is planned to conduct a ground-based geophysical IP survey over the Mushingashi anomaly to assist in reviewing and selecting drill targets. Details of the IP survey are being finalised and BHP Billiton is currently selecting a geophysical contractor and finalising logistics for the programmeme. BHP expects that results from the IP survey would be available for confirming phase 4 targets prior to drilling.
The phase 4 programme will utilise two ‘universal’ drilling rigs capable of reverse circulation and cored drilling methods to test the anomaly. At the time of writing the location of 8 holes for 6,400m have already been pegged at Mushingashi. Additional holes are likely to be generated through the pending IP survey.
The final drill pattern will be based on design work currently being undertaken. Drilling will commence at Mushingashi with initial drill holes located near hole ZMMUM-008 which had revealed interesting IOCG mineral alteration in the previous phase 3B drilling programme.
The extent and characteristics of the alteration observed in ZMMUM-008 are indicative that the core of a broader IOCG system could potentially be located in the vicinity. A nearby hole, ZMMUM-009A, was drilled during the previous phase 3B programme and terminated at a depth of 122.8 m within a monzonite/diorite dyke.
BHP Billiton is in the process of finalising the selection of a drilling contractor to provide two drilling rigs for the phase 4 programme and the contract is expected to be finalised shortly. It is also expected that the selected contractor will commence mobilisation of its drilling crew in late March 2010 in anticipation of commencing drilling in April 2010 following the end of the wet season.
Mobilisation of drilling equipment in the field is also dependant on ground conditions, as access through low-lying, swampy areas may be problematic too soon after the wet.
After BHP’s decision to move ahead Scott Lowe said: “We are very pleased that BHP Billiton has chosen to fund this phase of the project that will include a concept study. We are also excited about further exploration work being undertaken to assess the full potential at Mumbwa.”
No time to sit idle
The wet season in Zambia is just that – wet – and it is practically impossible to carry out field work. In order to ensure no more time is lost to the big cats and working conditions are improved for the field teams, the wet season was used to make substantial improvements on site. These included the construction of a new core shed to store all core drilled from the Mumbwa project.
In addition, an upgrade of the accommodation camp has commenced and construction of demountable housing is in progress. Part of the camp upgrade also included an upgrade of a medical clinic and installation of improved satellite communication services.
A fully lined earthen dam was constructed to accumulate borehole water that is used to supply the camp and provide sufficient water for drilling services. As part of the wildlife management plan, the camp and dam have been fully enclosed by electrified fencing. Electrified fencing at drill sites as well as posting of armed rangers from the Mushingashi Game Reserve are also planned.
This article was originally published in the February issue of the Inside Mining magazine.
To view the photos relating to this article, please click on the following links:
- Kitumba Anomaly
- Kitumba-Mutoya-Mushingash Anomalies
- Kitumba NS Section Model
]]>
March 5, 2010 by Dr. Willem Smuts
Blackthorn Resources’ joint venture partner BHP Billiton has elected to manage and fully fund the next exploration stage (phase 4) at the Mumbwa Iron Oxide Copper Gold (IOCG) project in Zambia.
Blackthorn mid-2009 engaged the MSA Group from South Africa as an independent consultant to conduct the mineral resource estimate, which is reported in accordance with the 2004 JORC Code. Using a 0.2% Cu cut-off, an in situ inferred mineral resource containing approximately 345 million tonnes at 0.47% copper and 0.06 g/t gold was estimated for the Kitumba anomaly, which covers an area of approximately 1 800 m by 400 m where drilling was focused, and modelled to a depth of 900 m from surface.
Data for the mineral resource estimate were collected from current and previous drilling campaigns and included 4 794 m from 25 cored drill holes and one reverse circulation drill hole.
Table 1 - Kitumba inferred mineral resource estimate – October 2009
|
anomaly
|
Category
|
Million tonnes (Mt)
|
Copper Cu %
|
Gold g/tAu g/t
|
Silver Ag g/t
|
Uranium U ppm
|
|
Kitumba
|
Inferred
|
345
|
0.47
|
0.06
|
1.38
|
45
|
The Mumbwa project area is located approximately 200 km west of Zambia’s capital, Lusaka, and includes large-scale geophysical anomalies (magnetic, gravity and radiometric) which trend over a 25 km strike length across the project area. T
he Kitumba and the Mushingashi anomalies are the main target areas for exploration, with ongoing work being planned. The mineral resource at Kitumba is expressed on surface by a massive haematite replacement breccia system, with Cu and Au mineralisation spatially associated with faults and lineaments that crosscut the region.
Resource estimation methodology
Geological modelling was undertaken using Leapfrog 3D geological modelling software, considered highly suited to this type of complex deposit. Separate grade envelopes were generated at 0.15%, 0.25% and 0.5% Cu cut-off grades.
The generated envelopes followed the major and secondary structural and alteration trends recognised in the wireframes created in Leapfrog were manually truncated in areas where drilling data did not warrant further extrapolation. These truncations mark the areas where it is considered the resource is open ended. Wireframe solids were also created for breccia zones and for major alteration assemblages, both of which mirrored the mineralisation trends.
The geological model block dimensions were set at 50 m northing by 50 m easting, by 2 m RL, with sub-ceiling in the northerly and easterly directions, to conform to the drilling fence line-spacing and along-fence drill-hole spacing.
The mineral resource estimate was interpolated using Ordinary Kriging within Datamine software based on 2 m composited drill-hole samples into a model with a strike length of 1.8 km and a maximum depth extent of approximately 900 m below surface. The currently interpreted level of geological and grade continuity has placed the resource in the Inferred category.
South African based Venmyn Rand, an independent adviser of mineral project valuation and statutory compliance, did an independent peer review of the MSA resource model.
Further potential
Computer modelling of the mineral resource at Kitumba indicates that mineralisation is “open” at depth and towards the southwest, west and north-westerly directions.
Additional drilling over the area has the potential to increase the volume of and confidence in the mineral resource and further delineate the alteration halos, which are typical of IOCG style mineralisation. An increased understanding of the alteration trends may assist in targeting extensions to the mineralised system at the Kitumba anomaly.
Drilling
MSA has recommended some additional closer spaced drilling to increase confidence in the mineral resource estimate and potentially upgrade parts of the resource estimate into the indicated and measured categories. In addition, step-out drilling is recommended in order to potentially increase the size of the resource.
Additional drilling has the potential to increase the volume of and confidence in the Kitumba inferred mineral resource. However, a decision to carry out further drilling on the Kitumba anomaly during this phase will be made in the near future. The previous phase 3B drilling programmeme was suspended in September 2009, owing to the active presence of lions within the planned drilling area and the onset of the annual wet season.
Resources with varying cut off grades
The Kitumba resource model was interrogated over a range of copper cut-off grades to observe the trend in tonnage. Table 2 shows the tonnage variation using 0.0%, 0.2% and 0.5% copper cut-off grades.
Table 2 – Kitumba tonnage variation with range of copper cut-off grades
|
Copper cut off (%)
|
Million tonnes (Mt)
|
Copper Cu %
|
Gold g/t Au g/t
|
Silver Ag g/t
|
Uranium U ppm
|
|
0.00
|
571
|
0.34
|
0.06
|
1.45
|
44
|
|
0.20
|
345
|
0.47
|
0.06
|
1.38
|
45
|
|
0.50
|
87
|
0.94
|
0.05
|
1.27
|
37
|
Managing director Scott Lowe said, “This is a very important milestone for the Mumbwa project, as it demonstrates the developments being made in advancing the projects status. The work undertaken on the Kitumba anomaly represents only part of the project’s potential. There is additional work to complete on the neighbouring Mushingashi anomaly, and it is still too early to predict an outcome on that work."
He added, "This is the first time Blackthorn Resources has been able to quantify a mineral resource at Kitumba, and the company is very pleased indeed with the magnitude of copper mineralisation on this anomaly alone. We are excited about potential for the future of the entire project.”
The table now set for phase 4
In January BHP has elected to manage and fully fund the next stage of exploration (phase 4) at Mumbwa. The phase 4 programmeme will include completion of a concept study to evaluate the exploration and development potential of the Mumbwa IOCG project.
The concept study will incorporate additional data collected in phase 4 from drilling the Mushingashi anomaly together with the inferred mineral resource estimated from the Kitumba anomaly. The total strike length of the Kitumba-Mutoya-Mushingashi anomaly is approximately 25 km, which includes the Mushingashi ‘density’ anomaly which trends north-south and extends for 19 km along strike.
It is planned to conduct a ground-based geophysical IP survey over the Mushingashi anomaly to assist in reviewing and selecting drill targets. Details of the IP survey are being finalised and BHP Billiton is currently selecting a geophysical contractor and finalising logistics for the programmeme. BHP expects that results from the IP survey would be available for confirming phase 4 targets prior to drilling.
The phase 4 programme will utilise two ‘universal’ drilling rigs capable of reverse circulation and cored drilling methods to test the anomaly. At the time of writing the location of 8 holes for 6,400m have already been pegged at Mushingashi. Additional holes are likely to be generated through the pending IP survey.
The final drill pattern will be based on design work currently being undertaken. Drilling will commence at Mushingashi with initial drill holes located near hole ZMMUM-008 which had revealed interesting IOCG mineral alteration in the previous phase 3B drilling programme.
The extent and characteristics of the alteration observed in ZMMUM-008 are indicative that the core of a broader IOCG system could potentially be located in the vicinity. A nearby hole, ZMMUM-009A, was drilled during the previous phase 3B programme and terminated at a depth of 122.8 m within a monzonite/diorite dyke.
BHP Billiton is in the process of finalising the selection of a drilling contractor to provide two drilling rigs for the phase 4 programme and the contract is expected to be finalised shortly. It is also expected that the selected contractor will commence mobilisation of its drilling crew in late March 2010 in anticipation of commencing drilling in April 2010 following the end of the wet season.
Mobilisation of drilling equipment in the field is also dependant on ground conditions, as access through low-lying, swampy areas may be problematic too soon after the wet.
After BHP’s decision to move ahead Scott Lowe said: “We are very pleased that BHP Billiton has chosen to fund this phase of the project that will include a concept study. We are also excited about further exploration work being undertaken to assess the full potential at Mumbwa.”
No time to sit idle
The wet season in Zambia is just that – wet – and it is practically impossible to carry out field work. In order to ensure no more time is lost to the big cats and working conditions are improved for the field teams, the wet season was used to make substantial improvements on site. These included the construction of a new core shed to store all core drilled from the Mumbwa project.
In addition, an upgrade of the accommodation camp has commenced and construction of demountable housing is in progress. Part of the camp upgrade also included an upgrade of a medical clinic and installation of improved satellite communication services.
A fully lined earthen dam was constructed to accumulate borehole water that is used to supply the camp and provide sufficient water for drilling services. As part of the wildlife management plan, the camp and dam have been fully enclosed by electrified fencing. Electrified fencing at drill sites as well as posting of armed rangers from the Mushingashi Game Reserve are also planned.
This article was originally published in the February issue of the Inside Mining magazine.
To view the photos relating to this article, please click on the following links:
- Kitumba Anomaly
- Kitumba-Mutoya-Mushingash Anomalies
- Kitumba NS Section Model
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]]>
February 14th is the date in the 2010 calendar when the year of the Tiger starts – the year of the metal tiger - symbolizing toughness, generosity and wealth earned with hard work. Word has it that this is a big, bold year filled with extremes. Unpredictability is in the air; fortunes can be won or lost. China, the apparent leader of the new world, is already showing signs of making bold and daring tiger strides in the mineral resources world.
Methinks I see a tiger’s tail twitching... in my opinion we are already seeing that Chinese hard work all over Africa’s mining hotspots and of course Zimbabwe – the next big thing coming; one can also but wonder where a junior company in this global climate of “finance with head in sand”, suddenly pulls out a huge non-brokered private placement... what is that purring noise I hear in the tall grass?
Meanwhile back at the ranch, Control Risks, independent security consultancy, identifies five key risks to watch for in 2010: elections and leadership changes; red tape and regulation; corruption and fraud; infrastructure deficiencies, and kidnap and piracy. James Smither of Control Risks warned delegates at Indaba ‘10 to beware of considerably increased instability as other groupings battle to succeed despots across the continent.
Here's wishing you a prosperous Year of the Tiger!
]]>
February 8, 2010 by Dr. Willem Smuts
February 14th is the date in the 2010 calendar when the year of the Tiger starts – the year of the metal tiger - symbolizing toughness, generosity and wealth earned with hard work. Word has it that this is a big, bold year filled with extremes. Unpredictability is in the air; fortunes can be won or lost. China, the apparent leader of the new world, is already showing signs of making bold and daring tiger strides in the mineral resources world.
Methinks I see a tiger’s tail twitching... in my opinion we are already seeing that Chinese hard work all over Africa’s mining hotspots and of course Zimbabwe – the next big thing coming; one can also but wonder where a junior company in this global climate of “finance with head in sand”, suddenly pulls out a huge non-brokered private placement... what is that purring noise I hear in the tall grass?
Meanwhile back at the ranch, Control Risks, independent security consultancy, identifies five key risks to watch for in 2010: elections and leadership changes; red tape and regulation; corruption and fraud; infrastructure deficiencies, and kidnap and piracy. James Smither of Control Risks warned delegates at Indaba ‘10 to beware of considerably increased instability as other groupings battle to succeed despots across the continent.
Here's wishing you a prosperous Year of the Tiger!
Please login to comment
]]>
Never truer words written, however one wonders why the Chinese are being more proactive in Africa than other countries. Why are they prepared to take the risks and not others. Junior's are a fact of life and in need of funding. If the Chinese are prepared to provide this, well !!!!]]>
I guess the Chinese understand that the early bird catches the biggest worm... The fact is it is the juniors that are developing new projects to the point where the risk profile fits the major companies' business models and this is the point where they typically step in and either buy the project or take the junior over. This system works for everybody, yes? However if the juniors do not get the funding to keep doing what they do best then the pipeline will quickly dry up and we all end up in a heap of trouble down the line. If we don't pay close attention the Chinese will surely corner the African market... I guess I am starting to learn Mandarin soon.]]>
February 14th is the date in the 2010 calendar when the year of the Tiger starts – the year of the metal tiger - symbolizing toughness, generosity and wealth earned with hard work. Word has it that this is a big, bold year filled with extremes. Unpredictability is in the air; fortunes can be won or lost. China, the apparent leader of the new world, is already showing signs of making bold and daring tiger strides in the mineral resources world.
Methinks I see a tiger’s tail twitching... in my opinion we are already seeing that Chinese hard work all over Africa’s mining hotspots and of course Zimbabwe – the next big thing coming; one can also but wonder where a junior company in this global climate of “finance with head in sand”, suddenly pulls out a huge non-brokered private placement... what is that purring noise I hear in the tall grass?
Meanwhile back at the ranch, Control Risks, independent security consultancy, identifies five key risks to watch for in 2010: elections and leadership changes; red tape and regulation; corruption and fraud; infrastructure deficiencies, and kidnap and piracy. James Smither of Control Risks warned delegates at Indaba ‘10 to beware of considerably increased instability as other groupings battle to succeed despots across the continent.
Here's wishing you a prosperous Year of the Tiger!
]]>
February 8, 2010 by Dr. Willem Smuts
February 14th is the date in the 2010 calendar when the year of the Tiger starts – the year of the metal tiger - symbolizing toughness, generosity and wealth earned with hard work. Word has it that this is a big, bold year filled with extremes. Unpredictability is in the air; fortunes can be won or lost. China, the apparent leader of the new world, is already showing signs of making bold and daring tiger strides in the mineral resources world.
Methinks I see a tiger’s tail twitching... in my opinion we are already seeing that Chinese hard work all over Africa’s mining hotspots and of course Zimbabwe – the next big thing coming; one can also but wonder where a junior company in this global climate of “finance with head in sand”, suddenly pulls out a huge non-brokered private placement... what is that purring noise I hear in the tall grass?
Meanwhile back at the ranch, Control Risks, independent security consultancy, identifies five key risks to watch for in 2010: elections and leadership changes; red tape and regulation; corruption and fraud; infrastructure deficiencies, and kidnap and piracy. James Smither of Control Risks warned delegates at Indaba ‘10 to beware of considerably increased instability as other groupings battle to succeed despots across the continent.
Here's wishing you a prosperous Year of the Tiger!
Please login to comment
]]>
Never truer words written, however one wonders why the Chinese are being more proactive in Africa than other countries. Why are they prepared to take the risks and not others. Junior's are a fact of life and in need of funding. If the Chinese are prepared to provide this, well !!!!]]>
I guess the Chinese understand that the early bird catches the biggest worm... The fact is it is the juniors that are developing new projects to the point where the risk profile fits the major companies' business models and this is the point where they typically step in and either buy the project or take the junior over. This system works for everybody, yes? However if the juniors do not get the funding to keep doing what they do best then the pipeline will quickly dry up and we all end up in a heap of trouble down the line. If we don't pay close attention the Chinese will surely corner the African market... I guess I am starting to learn Mandarin soon.]]>
Australian listed gold company, Chalice Gold Mines, recently upgraded and enhanced the regional exploration potential at its 80%‐owned 944 000 oz Zara Gold Project in Eritrea, East Africa after completing the first phase of a regional exploration programme.
The exploration programme also included tenements adjoining the Zara Project recently granted to the company (100%). Interpretation to date has resulted in the definition of over 60 priority anomalies indicative of gold or base metal targets on the 615 km2 tenement area outside of the current resource base at the Koka deposit (indicated and inferred resource of 5.04 million tonnes at 5.8g/t Au for 944,000oz).
This provides a very strong pipeline of regional exploration opportunities with the potential to yield new discoveries within a 25 km radius of a potential future mining operation at Zara, where Chalice’s team is currently completing a scoping study.
Landsat interpretation identifies numerous anomalies
Following completion of its merger with Sub Sahara Resources to acquire the Zara asset, Chalice retained Perth‐based remote sensing consultants Earthscanundertook an interpretation of satellite imagery covering the Proterozoic sedimentary and volcanic formations in north‐western Eritrea. This is the prospective stratigraphy which hosts the Koka and Bisha deposits. The extensive study area covered more than 35 000 km2, centred on the company’s 615 km2 Zara Project, which is located 165 km north of the capital, Asmara.
Landsat ETM+ 7 (Enhanced Thematic Mapper plus) satellite data was computer enhanced to highlight geological outcrop, regolith landforms, structural features and mineral alteration zones within the study area, which lies along major north‐west trending structural corridors. Spectral signatures of known gold and base metal mineral occurrences were used to identify similar signatures elsewhere within the targeted terrains. The target zones were then ranked using various parameters.
Within the Zara Project area the interpretation identified over 60 anomalies with spectral signatures indicative of alteration or iron enrichment commonly associated with known gold and/or base metal mineralisation in the region, including the company’s Koka gold deposit. Iron‐rich anomalies were also interpreted within the newly granted Zara South permit where ground follow‐up has identified gossans (massive iron‐oxide rich rocks derived from the weathering of massive sulphides).
Caption: Typical drill core sample from Koka deposit with coarse gold associated with pyrite and galena (lead sulphide) in quartz-carbonate vein.
The gossans are associated with altered and pyritised rhyolites and cherty pyritic exhalites in a rock assemblage typical of Volcanic‐hosted Massive Sulphide (VHMS) mineralisation. The gossans lie within interpreted northerly extensions of the volcanic stratigraphy hosting the Bisha polymetallic VHMS deposit approximately 100 km to the south.
Canadian‐based Nevsun Resources Limited recently secured financing for a US$250 million development of Bisha. It will be a low‐cost gold producer for its first two years of operations (~430,000 ounces of gold per year) and a low‐cost, high‐grade copper concentrate producer (~75,700 tonnes of contained copper metal per year) for a further three years before commencing long‐term zinc concentrate production.
Chalice Gold’s management looks forward to expediting the evaluation, ranking and exploration of these exciting regional targets. Immediate exploration plans include the acquisition and analysis of high resolution aster satellite imagery, ground‐based geophysics, geological mapping and regional drainage geochemical sampling. A ground‐based gravity survey will be conducted over the gossanous zone on Zara South. Gravity surveys have been successfully used to identify massive sulphide bodies elsewhere in Eritrea.
The regional exploration strategy will be advanced in parallel with forthcoming programmes of in‐fill and resource extension drilling at the Koka deposit, together with completion of the pre‐feasibility and feasibility studies.
Koka scoping study released
On 2 November 2009, Chalice Gold released an independent scoping study that has found that its Koka gold deposit has the potential to underpin a highly profitable gold mining operation.
Chalice will now proceed with a full feasibility study, which is expected to be completed by mid‐2010, based on forecast annual production of 110 000 ounces at a cash cost of US$424 an ounce over a six‐year life. “The scoping study shows that Koka has the potential to be a lucrative project. ”This is based on a much lower gold price than is currently the case,” said Chalice executive chairman, Tim Goyder.
“The cash costs will be low by world standards and the mining will be relatively straightforward, making Koka an extremely attractive project,” he said. “There is also significant potential to increase the size of the project by drilling the numerous exploration targets we have at Zara.”
The scoping study, which was undertaken by Lycopodium Minerals, estimates that the Koka Project will have capital costs of US$97.8 million and average cash operating costs of US$424 per oz over a project life of approximately six years, with annual production averaging approximately 110 000 oz per annum.
]]>
January 20, 2010 by Dr. Willem Smuts
Australian listed gold company, Chalice Gold Mines, recently upgraded and enhanced the regional exploration potential at its 80%‐owned 944 000 oz Zara Gold Project in Eritrea, East Africa after completing the first phase of a regional exploration programme.
The exploration programme also included tenements adjoining the Zara Project recently granted to the company (100%). Interpretation to date has resulted in the definition of over 60 priority anomalies indicative of gold or base metal targets on the 615 km2 tenement area outside of the current resource base at the Koka deposit (indicated and inferred resource of 5.04 million tonnes at 5.8g/t Au for 944,000oz).
This provides a very strong pipeline of regional exploration opportunities with the potential to yield new discoveries within a 25 km radius of a potential future mining operation at Zara, where Chalice’s team is currently completing a scoping study.
Landsat interpretation identifies numerous anomalies
Following completion of its merger with Sub Sahara Resources to acquire the Zara asset, Chalice retained Perth‐based remote sensing consultants Earthscanundertook an interpretation of satellite imagery covering the Proterozoic sedimentary and volcanic formations in north‐western Eritrea. This is the prospective stratigraphy which hosts the Koka and Bisha deposits. The extensive study area covered more than 35 000 km2, centred on the company’s 615 km2 Zara Project, which is located 165 km north of the capital, Asmara.
Landsat ETM+ 7 (Enhanced Thematic Mapper plus) satellite data was computer enhanced to highlight geological outcrop, regolith landforms, structural features and mineral alteration zones within the study area, which lies along major north‐west trending structural corridors. Spectral signatures of known gold and base metal mineral occurrences were used to identify similar signatures elsewhere within the targeted terrains. The target zones were then ranked using various parameters.
Within the Zara Project area the interpretation identified over 60 anomalies with spectral signatures indicative of alteration or iron enrichment commonly associated with known gold and/or base metal mineralisation in the region, including the company’s Koka gold deposit. Iron‐rich anomalies were also interpreted within the newly granted Zara South permit where ground follow‐up has identified gossans (massive iron‐oxide rich rocks derived from the weathering of massive sulphides).
Caption: Typical drill core sample from Koka deposit with coarse gold associated with pyrite and galena (lead sulphide) in quartz-carbonate vein.
The gossans are associated with altered and pyritised rhyolites and cherty pyritic exhalites in a rock assemblage typical of Volcanic‐hosted Massive Sulphide (VHMS) mineralisation. The gossans lie within interpreted northerly extensions of the volcanic stratigraphy hosting the Bisha polymetallic VHMS deposit approximately 100 km to the south.
Canadian‐based Nevsun Resources Limited recently secured financing for a US$250 million development of Bisha. It will be a low‐cost gold producer for its first two years of operations (~430,000 ounces of gold per year) and a low‐cost, high‐grade copper concentrate producer (~75,700 tonnes of contained copper metal per year) for a further three years before commencing long‐term zinc concentrate production.
Chalice Gold’s management looks forward to expediting the evaluation, ranking and exploration of these exciting regional targets. Immediate exploration plans include the acquisition and analysis of high resolution aster satellite imagery, ground‐based geophysics, geological mapping and regional drainage geochemical sampling. A ground‐based gravity survey will be conducted over the gossanous zone on Zara South. Gravity surveys have been successfully used to identify massive sulphide bodies elsewhere in Eritrea.
The regional exploration strategy will be advanced in parallel with forthcoming programmes of in‐fill and resource extension drilling at the Koka deposit, together with completion of the pre‐feasibility and feasibility studies.
Koka scoping study released
On 2 November 2009, Chalice Gold released an independent scoping study that has found that its Koka gold deposit has the potential to underpin a highly profitable gold mining operation.
Chalice will now proceed with a full feasibility study, which is expected to be completed by mid‐2010, based on forecast annual production of 110 000 ounces at a cash cost of US$424 an ounce over a six‐year life. “The scoping study shows that Koka has the potential to be a lucrative project. ”This is based on a much lower gold price than is currently the case,” said Chalice executive chairman, Tim Goyder.
“The cash costs will be low by world standards and the mining will be relatively straightforward, making Koka an extremely attractive project,” he said. “There is also significant potential to increase the size of the project by drilling the numerous exploration targets we have at Zara.”
The scoping study, which was undertaken by Lycopodium Minerals, estimates that the Koka Project will have capital costs of US$97.8 million and average cash operating costs of US$424 per oz over a project life of approximately six years, with annual production averaging approximately 110 000 oz per annum.
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]]>
Australian listed gold company, Chalice Gold Mines, recently upgraded and enhanced the regional exploration potential at its 80%‐owned 944 000 oz Zara Gold Project in Eritrea, East Africa after completing the first phase of a regional exploration programme.
The exploration programme also included tenements adjoining the Zara Project recently granted to the company (100%). Interpretation to date has resulted in the definition of over 60 priority anomalies indicative of gold or base metal targets on the 615 km2 tenement area outside of the current resource base at the Koka deposit (indicated and inferred resource of 5.04 million tonnes at 5.8g/t Au for 944,000oz).
This provides a very strong pipeline of regional exploration opportunities with the potential to yield new discoveries within a 25 km radius of a potential future mining operation at Zara, where Chalice’s team is currently completing a scoping study.
Landsat interpretation identifies numerous anomalies
Following completion of its merger with Sub Sahara Resources to acquire the Zara asset, Chalice retained Perth‐based remote sensing consultants Earthscanundertook an interpretation of satellite imagery covering the Proterozoic sedimentary and volcanic formations in north‐western Eritrea. This is the prospective stratigraphy which hosts the Koka and Bisha deposits. The extensive study area covered more than 35 000 km2, centred on the company’s 615 km2 Zara Project, which is located 165 km north of the capital, Asmara.
Landsat ETM+ 7 (Enhanced Thematic Mapper plus) satellite data was computer enhanced to highlight geological outcrop, regolith landforms, structural features and mineral alteration zones within the study area, which lies along major north‐west trending structural corridors. Spectral signatures of known gold and base metal mineral occurrences were used to identify similar signatures elsewhere within the targeted terrains. The target zones were then ranked using various parameters.
Within the Zara Project area the interpretation identified over 60 anomalies with spectral signatures indicative of alteration or iron enrichment commonly associated with known gold and/or base metal mineralisation in the region, including the company’s Koka gold deposit. Iron‐rich anomalies were also interpreted within the newly granted Zara South permit where ground follow‐up has identified gossans (massive iron‐oxide rich rocks derived from the weathering of massive sulphides).
Caption: Typical drill core sample from Koka deposit with coarse gold associated with pyrite and galena (lead sulphide) in quartz-carbonate vein.
The gossans are associated with altered and pyritised rhyolites and cherty pyritic exhalites in a rock assemblage typical of Volcanic‐hosted Massive Sulphide (VHMS) mineralisation. The gossans lie within interpreted northerly extensions of the volcanic stratigraphy hosting the Bisha polymetallic VHMS deposit approximately 100 km to the south.
Canadian‐based Nevsun Resources Limited recently secured financing for a US$250 million development of Bisha. It will be a low‐cost gold producer for its first two years of operations (~430,000 ounces of gold per year) and a low‐cost, high‐grade copper concentrate producer (~75,700 tonnes of contained copper metal per year) for a further three years before commencing long‐term zinc concentrate production.
Chalice Gold’s management looks forward to expediting the evaluation, ranking and exploration of these exciting regional targets. Immediate exploration plans include the acquisition and analysis of high resolution aster satellite imagery, ground‐based geophysics, geological mapping and regional drainage geochemical sampling. A ground‐based gravity survey will be conducted over the gossanous zone on Zara South. Gravity surveys have been successfully used to identify massive sulphide bodies elsewhere in Eritrea.
The regional exploration strategy will be advanced in parallel with forthcoming programmes of in‐fill and resource extension drilling at the Koka deposit, together with completion of the pre‐feasibility and feasibility studies.
Koka scoping study released
On 2 November 2009, Chalice Gold released an independent scoping study that has found that its Koka gold deposit has the potential to underpin a highly profitable gold mining operation.
Chalice will now proceed with a full feasibility study, which is expected to be completed by mid‐2010, based on forecast annual production of 110 000 ounces at a cash cost of US$424 an ounce over a six‐year life. “The scoping study shows that Koka has the potential to be a lucrative project. ”This is based on a much lower gold price than is currently the case,” said Chalice executive chairman, Tim Goyder.
“The cash costs will be low by world standards and the mining will be relatively straightforward, making Koka an extremely attractive project,” he said. “There is also significant potential to increase the size of the project by drilling the numerous exploration targets we have at Zara.”
The scoping study, which was undertaken by Lycopodium Minerals, estimates that the Koka Project will have capital costs of US$97.8 million and average cash operating costs of US$424 per oz over a project life of approximately six years, with annual production averaging approximately 110 000 oz per annum.
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January 20, 2010 by Dr. Willem Smuts
Australian listed gold company, Chalice Gold Mines, recently upgraded and enhanced the regional exploration potential at its 80%‐owned 944 000 oz Zara Gold Project in Eritrea, East Africa after completing the first phase of a regional exploration programme.
The exploration programme also included tenements adjoining the Zara Project recently granted to the company (100%). Interpretation to date has resulted in the definition of over 60 priority anomalies indicative of gold or base metal targets on the 615 km2 tenement area outside of the current resource base at the Koka deposit (indicated and inferred resource of 5.04 million tonnes at 5.8g/t Au for 944,000oz).
This provides a very strong pipeline of regional exploration opportunities with the potential to yield new discoveries within a 25 km radius of a potential future mining operation at Zara, where Chalice’s team is currently completing a scoping study.
Landsat interpretation identifies numerous anomalies
Following completion of its merger with Sub Sahara Resources to acquire the Zara asset, Chalice retained Perth‐based remote sensing consultants Earthscanundertook an interpretation of satellite imagery covering the Proterozoic sedimentary and volcanic formations in north‐western Eritrea. This is the prospective stratigraphy which hosts the Koka and Bisha deposits. The extensive study area covered more than 35 000 km2, centred on the company’s 615 km2 Zara Project, which is located 165 km north of the capital, Asmara.
Landsat ETM+ 7 (Enhanced Thematic Mapper plus) satellite data was computer enhanced to highlight geological outcrop, regolith landforms, structural features and mineral alteration zones within the study area, which lies along major north‐west trending structural corridors. Spectral signatures of known gold and base metal mineral occurrences were used to identify similar signatures elsewhere within the targeted terrains. The target zones were then ranked using various parameters.
Within the Zara Project area the interpretation identified over 60 anomalies with spectral signatures indicative of alteration or iron enrichment commonly associated with known gold and/or base metal mineralisation in the region, including the company’s Koka gold deposit. Iron‐rich anomalies were also interpreted within the newly granted Zara South permit where ground follow‐up has identified gossans (massive iron‐oxide rich rocks derived from the weathering of massive sulphides).
Caption: Typical drill core sample from Koka deposit with coarse gold associated with pyrite and galena (lead sulphide) in quartz-carbonate vein.
The gossans are associated with altered and pyritised rhyolites and cherty pyritic exhalites in a rock assemblage typical of Volcanic‐hosted Massive Sulphide (VHMS) mineralisation. The gossans lie within interpreted northerly extensions of the volcanic stratigraphy hosting the Bisha polymetallic VHMS deposit approximately 100 km to the south.
Canadian‐based Nevsun Resources Limited recently secured financing for a US$250 million development of Bisha. It will be a low‐cost gold producer for its first two years of operations (~430,000 ounces of gold per year) and a low‐cost, high‐grade copper concentrate producer (~75,700 tonnes of contained copper metal per year) for a further three years before commencing long‐term zinc concentrate production.
Chalice Gold’s management looks forward to expediting the evaluation, ranking and exploration of these exciting regional targets. Immediate exploration plans include the acquisition and analysis of high resolution aster satellite imagery, ground‐based geophysics, geological mapping and regional drainage geochemical sampling. A ground‐based gravity survey will be conducted over the gossanous zone on Zara South. Gravity surveys have been successfully used to identify massive sulphide bodies elsewhere in Eritrea.
The regional exploration strategy will be advanced in parallel with forthcoming programmes of in‐fill and resource extension drilling at the Koka deposit, together with completion of the pre‐feasibility and feasibility studies.
Koka scoping study released
On 2 November 2009, Chalice Gold released an independent scoping study that has found that its Koka gold deposit has the potential to underpin a highly profitable gold mining operation.
Chalice will now proceed with a full feasibility study, which is expected to be completed by mid‐2010, based on forecast annual production of 110 000 ounces at a cash cost of US$424 an ounce over a six‐year life. “The scoping study shows that Koka has the potential to be a lucrative project. ”This is based on a much lower gold price than is currently the case,” said Chalice executive chairman, Tim Goyder.
“The cash costs will be low by world standards and the mining will be relatively straightforward, making Koka an extremely attractive project,” he said. “There is also significant potential to increase the size of the project by drilling the numerous exploration targets we have at Zara.”
The scoping study, which was undertaken by Lycopodium Minerals, estimates that the Koka Project will have capital costs of US$97.8 million and average cash operating costs of US$424 per oz over a project life of approximately six years, with annual production averaging approximately 110 000 oz per annum.
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