Volume 9 Edition 2 2012 - The ASIA Miner

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Australia Aquila approves Eagle Downs development THE Eagle Downs hard coking coal joint venture could be in operation by late 2015 after the board of Aquila Resources approved its development. Aquila Coal and Vale SA subsidiary Bowen Central Coal are partners in the project, which will be an underground multi-seam longwall mine, annually producing an average of 4.5 million tonnes in the first 10 years of a 48-year mine life. Aquila Resources’ Isaac Plains coal project in central Queensland’s Bowen Basin. The project is in central Queensland’s Bowen basin, immediately down dip from the operating BHP Billiton Mitsubishi Alliance Peak Downs coal mine. A definitive feasibility study released in May 2011 contained two options for the mine’s development. One assessed the project’s approval without contracted rail and port arrangements, with longwall coal production aligned with the first available new rail and port facility. The other option aligned all coal production with the first available new port and rail facility. This was Aquila’s preferred option, however the management committee has instead chosen to progress with the first option. Aquila also voted in favour of undertaking mine development to stave off a potential buy-out by Bowen under the terms of its joint venture agreement. Aquila sees Eagle Downs as a highly valuable asset in the significant hard coking coal market. The companies are now working to identify and secure suitable rail and port services for the project, with the development schedule aligned with the first available freighting facilities. Once rail and port contracts are secured, longwall mining operations will begin at the Harrow Creek upper coal seam, which is one of three seams to be targeted. Aquila expects initial production will begin between late 2015 and early 2016. The joint venture has approved Aus$77.4 million for the early works budget at the project during the 2011-12 financial year. Civil works including site access roads, power connection and gas drainage are already under way. Aquila also expects to finish access to the underground drifts before June 2012, in preparation for the drift driveage during 2012-13. Mineral Hill processing above expectations COPPER concentrate production at KBL Mining’s Mineral Hill project in central western New South Wales has increased by 25% on the company’s forecast monthly output, resulting in export shipments being scheduled every three weeks. The average hourly mill feed rate is also above schedule at 35 tonnes or 290,000 tonnes annually, which is producing 1900 tonnes of copper concentrate. KBL completed four copper concentrate shipments in 2011, but expects this number to increase significantly during 2012. The company’s executive chairman Jim Wall says, “The gains in process plant performance are contributing to reducing forecast unit costs and are positive for further operational improvement. The performance from the mine is especially pleasing that it is meeting the increased demand from the plant at better than anticipated grades. The company is looking forward to a successful 2012 at Mineral Hill as mining and processing is now in a steady state and performance is above expectations.” Meantime, drill results from the Pearse gold-silver deposit within the Mineral Hill project have confirmed high grade mineralization. The 470 metre reverse circulation drill program was completed in December 2011 to collect ore samples for test work to support the start of mining at the deposit. High grade intersections include 14 metres @ 25.5 grams/tonne gold and 56 grams/tonne silver, and 51 metres @ 9.8 grams/tonne gold and 72 grams/tonne silver. Jim Wall says these results have prompted KBL to plan a start to open-cut mining at Pearse from July this year at an annual rate of 120,000 tonnes of ore during the first two years. The addition of gold and silver dore production from Pearse as well as underground mining at KBL’s existing operation at Parkers Hill is expected to increase annual production at Mineral Hill to 5400 tonnes of copper, 21,500 ounces of gold and 265,000 ounces of silver. In November 2011, KBL updated the resource at Mineral Hill’s Southern Ore Zone to a JORC-compliant 5.2 million tonnes containing 222,000 ounces of gold, 61,000 tonnes of copper and 6 million ounces of silver. The Mineral Hill mine, which is about 65km north of the town of Condobolin, was mothballed in 2005 by Triako when copper and gold prices plummeted. Substantial resources were left undeveloped and the discovery of the nearby high-grade gold-silver Pearse project has allowed KBL to step in and cost-effectively upgrade the operation and commission it in the fourth quarter of 2011. 50 | ASIA Miner | March/April 2012
IRONCLAD Mining is preparing the first shipment of iron ore from its Wilcherry Hill magnetite project in South Australia, after mobilizing a crushing plant and beginning construction of a dry magnetic separation (DMS) plant in January. IronClad plans to ramp up the project in three stages to become a large-scale, long-life facility. In January the company received the final approval from the South Australian government to commence production at Wilcherry Hill. Its environmental protection and rehabilitation program at the joint venture with Trafford Resources was the final piece of the project awaiting statutory approval. This green light paved the way for the company to start producing its first ore, with up to 1 million tonnes of premium grade direct shipping ore expected to be produced in the first 12 months of operations. The company’s executive chairman Ian Finch says the extremely quick start-up was due to the fact that there was no major construction needed. “Most of the processing plant is mobile with its own accompanying Australia Production under way at Wilcherry Hill power sources and can quickly be put in place. The only significant construction is the DMS section of the plant and the main component parts were ordered some time ago, while the civil structure to house them is under construction in the USA.” The project is 105km west of South Australia’s steel industry capital of Whyalla and about 40km north of Kimba in the northern Eyre Penisula. It covers four tenements over an area of almost 1000sqkm. Access into the project area is via the Eyre Highway to Kimba and then graded service roads and pastoral station tracks. IronClad plans to ramp up production at the plant rapidly, annually producing 12 million tonnes by 2015, when production will be shifted to the nearby Hercules deposit. This deposit has a current JORC inferred resource of 198 million tonnes, which is confirmed in a banded iron formation extending more than 10km. IronClad says the current resource estimate is based on drilling from only 2km of the formation, meaning there is potential for a total resource of up to 2 billion tonnes. The first sales of ore are expected to generate up to $12 million for the company, which is needed as soon as possible in order for Iron- Clad to complete the DMS, purchase shipping containers and site works at Lucky Bay port. Ian Finch says it’s anticipated the first stage of the project will cost about $40 million to complete and bank finance for a majority of the capital costs is about to become available. The company has received international recognition for its innovative approach at Wilcherry Hill, particularly for the production of premium grade DSO from crystalline magnetite iron ore by crushing and screening, and adding magnets during processing. Another of the company’s unique concepts is the floating harbour which cuts road and rail transport distance from mine to port by about 350km. Originally, Port Adelaide was the most viable port despite being almost 500km from the mine. Now the company has developed a floating port at Lucky Bay, 10km offshore, to be serviced by two self-propelled barges. The facility is scheduled to be operational within three years. March/April 2012 | ASIA Miner | 51
Page 1: March/April 2012 | Volume 9 | Issue
Page 4: From The Editor Indonesia a hotspot
Page 8: Indonesia Kopex funds to complete T
Page 12: Indonesia 1.18 million ounce maiden
Page 15 and 16: Indonesia Encouraging assays from Z
Page 18: Indonesia Waterfall drilling confir
Page 22 and 23: ’ ’ Project Survey 2012 Annual
Page 24: ’ ’ Project Survey 2012 Mine In
Page 28: Project Survey 2012 Project Name Lo
Page 31 and 32: No job too big MULTIFLO ® Dewateri
Page 34: China Production imminent from Jian
Page 38: China Sino Prosper seeks Guizhou go
Page 42 and 43: Mongolia Coking coal confirmed at N
Page 44: Philippines Study progresses for Ma
Page 48 and 49: Vietnam Feedstock negotiations for
Page 50 and 51: Australia Bandanna on track for 201
Page 54 and 55: Malaysia Lynas receives temporary l
Page 56 and 57: Papau New Guinea Final green light
Page 58 and 59: Central Asia Plant commissioning un
Page 60 and 61: India India next Asian hub for mini
Page 62: 2012 Calendar PDAC 2012 March 4-7,
Page 65 and 66: Drilling & Blasting On the other ha
Page 67 and 68: Drilling & Blasting Playing it Stra
Page 69 and 70: Supplier News -35 to +35). To prote
Page 72: ADVERTISING INDEX AEL Mining Servic

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