Volume 9 Edition 3 2012 - The ASIA Miner

May/June 2012 | Volume 9 | Issue 3 | Industry Technical Information | 矿 业 技 术 信 息中 亚 的 鼎 盛 时 期GOLDEN TIMES IN CENTRAL ASIASpotlight on gold • German mining technology • Slurry pumps and cone crushers聚 焦 黄 金 • 德 国 开 采 技 术 • 泥 浆 泵 与 圆 锥 破 碎 机

FEATURESGerman mining technology With the world showing a gradual recovery from the worst of the economiccrisis in 2009, Germany’s mining equipment manufacturers are meeting the challenges of a changing miningindustry. The annual supplement from German mining equipment association VDMA shows how manyof these companies continue to serve the industry around the world. .................................From page 71Slurry pumps Plant operators, pump suppliers and researchers continue to pursue higher efficiencyand reliability in slurry transport applications. ........................................................................................62Cone crushers Leading manufacturers offer their perspectives on the mining industry’s demand for conecrushers, the evolving technology and what the future holds. ...............................................................66LEADING DEVELOPMENTSAsian Intelligence Indonesia’s new mining regulations appear to be a case of two steps forward and onestep back. Two Indonesian experts in legal aspects of mining examine the implications of the recently announcedregulations and possible impacts on mining. ...........................................................................4Central Asia Ground gravity and magnetic surveys over a section of Alhambra Resources’ Uzboy GoldProject in Kazakhstan have resulted in the identification of 18 new exploration targets. ........................10Exploration High-grade gold intersections have been confirmed in the latest drill program at BlackhamResources’ Matilda project in Western Australia. ..................................................................................80AROUND THE REGIONChina Continuing growth is China’s aim but it wants this at as low a cost as possible. .........................24Mongolia Altan Rio Minerals has started drilling at the Khavchuu gold prospect. .................................36Indonesia PT Aneka Tambang (Antam) expects to raise gold production 16% this year. ......................38Philippines Resources have increased at the Taysan project of Crazy Horse Resources. .....................44Papua New Guinea Mining is one of the main drivers of PNG’s economic fortunes. .............................46Australia Evolution Mining reports a 70% boost in underground resources at Edna May. ....................50India Commissioning has started at NSL Consolidated’s iron ore beneficiation plant. ..........................54South Pacific Tests are being carried out on samples from the Tuvatu Gold Project in Fiji. ...................55Malaysia Drilling at the Bau Gold Project has expanded the prospective open pit resource. ................56Laos Catalyst Resource Group plans to acquire a stake in a gold concession. .....................................57Vietnam Asian Mineral Resources has received a funds boost for its Ban Phuc project. ......................58Manas Resources is one of the Australian companiesinvolved in the mining industry in Central Asia.The company has received positive results from afeasibility study on its Shambesai Gold Project in theKyrgyz Republic. The DFS will allow Manas to rapidlydevelop a low-risk, highly profitable gold operation atShambesai, which is 7km from another project, Obdilla,and in the same valley. It aims to developShambesai first and then examine incorporating Obdilla.This photo shows a view east from the Obdilladeposit up Chauvai Valley.Photo courtesy Manas Resources.DEPARTMENTSAdvertisers’ Index ........................................78Calendar of Events ....................................72From the Editor ............................................2Product News ............................................75Subscription Form ......................................78Supplier News ............................................73Centerra replaces reserves..................................18 Martabe production in July.................................38 New Phuoc Son ore sources...............................58May/June 2012 | ASIA Miner | 1

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Central AsiaUzboy surveys identify 18 new targetsThe north-south mineralization trend at Alhambra’s Uzboy Gold Project.THE interpretation of 1360sqkm ground gravityand magnetic surveys over the Dombraly-Shirotnaiagold tr end at Alhambra Resour ces’Uzboy Gold Project in north central Kazakhstanhas resulted in the identification of 18 new explorationtargets. Five of these targets havebeen deemed by the company as being highpriority for initial follow-up exploration.The Dombraly-Shirotnaia gold trend is inthe south-eastern portion of the 9800sqkmUzboy project area. More than 100 mineraltargets, including three advanced explorationareas, are contained within the pr oject. Alhambraanticipates that subsequent surveyswill be completed, potentially covering the remainderof the licence area.The gravity and high resolution magnetic surveyscarried out outlined numer ous variouslyoriented lineaments and demagnetizationzones. A map of 18 new primary explorationtargets overlaid with the r esults of ASTER satelliteimagery analysis combined with the historicallyknown gold showings was generated.Alhambra’s chairman and chief executiveofficer John Komarnicki says, “We are veryexcited that our recently completed surveyshave identified the new exploration targets.These 18 new primary targets have beenprioritized, with five deemed as being highpriority. It is anticipated that a soil samplingprogram followed by a reverse circulation drillingprogram will be implemented in comingmonths to further test the gold potential.”Alhambra’s early exploration activities identifiedboth Shirotnaia and Dombraly as havingsignificant gold exploration upside. Shirotnaiaas a potential extension to the Aksu andQuartzite Hills multi-million ounce gold depositsheld by KazakhGold Gr oup about 3kmsoutheast of Shirotnaia, and Dombraly, as anabandoned but un-depleted Soviet gold mine.Subsequent exploration activities in Alhambra’seastern licence ar ea have alsoidentified gold mineralization at North Balusty,Kontaktovy, Kerbay and Zhusaly. Thesetargets form an emerging gold tr end of atleast 50km extending fr om Shirotnaia toNorth Balusty to the north.Alhambra has, in three separate deposits, atotal of 1.07 million ounces of NI 43-101 measuredand indicated resources and 1.37 millionounces of inferred mineral resources. Of thetotal, the Uzboy deposit amounts to 980,000ounces of measured and indicated resourcesand 420,000 ounces of inferred resources.The Shirotnaia project amounts to 10,000ounces of measured and indicated resourcesand 650,000 ounces of inferred resources.Copper production imminent at BenkalaFRONTIER Mining is set to become Kazakhstan’ssecond largest copper pr oducerafter Kazakhmys when it begins production atits Benkala project in the country’s northwestlater this year. The UK-based company couldbegin production as early as June and r eachas much as 5000 tonnes by the end of the yearbefore ramping up to 20,000 tonnes in 2014.Frontier has received all construction approvaland permits from the various local andcentral inspection, and licensing authoritiesthat form the Benkala plant commissioninggroup. The company’s CEO Erlan Sagadievsays, “Progress at the site continues at paceas we enter the next stage of commissioningprior to the commencement of production.”He says that Frontier expects the cash costof producing copper at Benkala will be aboutUS$2300 a tonne, rising to about $3800 atonne when taxes are included. The companyhas funding of $54 million in place to startoperations and will need a further $35 millionto meet its 2014 pr oduction target. This willbe funded through cashflow and debt.Frontier has also announced the first assayresults from a drill program at Baitemir CopperProject in northeast Kazakhstan, managedby subsidiary Fr ontier Mining LimitedKazakhstan (FMLK). A preliminary resourceestimate is pr ovisionally scheduled for thefourth quarter of 2012.From 2005 to the end of 2011 FMLK undertookan aggressive exploration programon Baitemir that was accelerated in 2010and through 2011. During 2010 and 2011FMKL completed 6032 metr es of drillingand 7557 metres of trenching, bringing thetotal to more than 14,500 metres.The total volume of cor e drilling for thisperiod was almost 16,000 metres of which13,768 were drilled in 2010/11. This pr o-gram has resulted in the discovery of a significantnew copper mineralized footprint,with associated gold, silver and molybdenum,of a total length of 2000 metres and awidth of 400 metres.There is 1000 metr es of drilling r emainingunder the program to complete the first stageof exploration drilling, which will then allowcommencement of a resource definition to theKazakhstan GKZ standard to be undertaken.10 | ASIA Miner | May/June 2012

Central AsiaIndia and China lead charge in AfghanistanINDIA and China have already secured majormining projects in resource-rich Afghanistanand both are now eyeing off further opportunities.To support their investments, both resource-hungrynations are also contributingto infrastructure development.The Afghan government, eager to rebuildas well as attract investment, has pr oclaimedthat the country holds an estimatedUS$3 trillion in natural resources. The deposits,which yield copper and iron ore, oil andgas, niobium, cobalt, gold, molybdenum,silver and lithium, could lift the country’s coffersby US$3.5 billion a year.The Metallurgical Corp of China (MCC)owns 75% of the Aynak Copper Project, inLogar province, 30km southeast of Kabul,with Jiangxi Copper holding the balance. In2007 the two Chinese companies won atender to develop the mine, outbidding rivalsfrom the US, Canada and Kazakhstan.Production is expected to start at the endof 2014 at the earliest after delays causedby the discovery of historic relics and the relocationof local residents. The mine, whichwill cost about US$1.7 billion to develop, isexpected to have an annual copper outputof 200,000 tonnes. According to Soviet-eradata and a more recent study by the UnitedStates Geological Survey, Aynak could yieldmore than 11 million tonnes of copper.The Hajigak Iron Ore Project, whose developmentwas awarded last November toan Indian consortium of seven companiesled by state-owned Steel Authority of India,is the highest for eign direct investment inAfghanistan with a total pr oject cost estimateof US$11 billion.Hajigak, in Bamyan pr ovince, holds aniron oxide deposit that extends over 32kmand covers 16 separate zones, up to 5kmin length, 380 metres wide and extending550 metres down with an estimated 1.8 billiontonnes of iron ore.The consortium is part of India’s government-ledinitiatives to boost participationin Afghanistan, where India has pledged$2 billion in investments. It has so far undertakenprojects involving power, roads,agriculture, telecommunications, educationand health. It is also eyeing off furthermineral resources and is more than likelyto bid for further blocks to be released, includingothers in copper at Aynak as wellas gold and lithium.Feasibility studies for rail pr ojects havealso been lined up. To be financed by MCC,the first will run from the Pakistani border toAynak and to Kabul. It will link Hajigak toKabul and to the Uzbek frontier. The secondroute, being studied by the Asian DevelopmentBank, will head south to Iran, wher eminerals could be shipped to India.Kyzyl gold resources increase by 18%The Kyzyl Gold Project of Altynalmas Gold is in northeast Kazakhstan.AN independent feasibility study estimates mineralreserves of 5.76 million ounces of gold atAltynalmas Gold’s Kyzyl Gold Project in northeasternKazakhstan. The estimate is based onan underground mining operation annually producingan average of 337,000 ounces of goldduring an initial mine life of up to 15 years.The project encompasses the re-developmentof the Bakyrchik underground mine andthe construction of a new pr ocessing plantincorporating fluidized-bed ore-roasting technologyand supporting mine infrastructur e.Altynalmas is 50%-owned by Ivanhoe Mines.Other highlights of the study include:• The successful completion of performancetesting of a metallurgical process that recoversat least 88% of contained gold.• The development of an innovative andproprietary ore treatment process thatproduces an environmentally stable, ironarsenate mineral by-product that meetsinternational environmental standards.• An 18% increase in the indicated r esources,inclusive of reserves, at Kyzyl, whichnow contains an estimated 7.35 millionounces of gold as of December 1, 2011.The project also contains an additional 3million ounces of gold in inferr ed resources.The resources are within the Bakyrchikand Bakyrchik East deposits.The study, based on December 1, 2010 resources,confirms the economics supportingmineral reserves and describes an extended,20-year life-of-mine sensitivity case that includesadditional indicated and inferr ed resources.Drilling pr ograms focused onconverting inferred resources to indicated resources,before and after the 2010 estimate,have been successful, providing confidencein the sensitivity case.Altynalmas’ president and CEO David Woodallsays, “W ith our successful and continuingresource delineation and r eserveconversion, the confirmation of the gold r e-covery process and the support of the Government,we are pleased to be in a positionnow to start the construction and developmentof a state-of-the-art operation.12 | ASIA Miner | May/June 2012

Central AsiaGold resource at Chaarat boosted 27%DRILLING by Chaarat Gold Holdings during2011 has resulted in a 27% incr ease in thegold resource at the Chaarat Gold Pr oject.The resource now stands at 5.59 million ounces,up from 4.406 million ounces announcedin February 2011.The Tulkubash section of the r esource,which includes mostly free milling mineralization,increased by 56% to 501,000 ouncesfrom 321,000 ounces while the sulphide orrefractory section of the r esource increasedMining of the non-refractory section of the Chaarat GoldProject – Tulkubash – is expected to start later this year.by 25% to 5.09 million ounces.During the 2011 exploration season 171new core drill holes for 29,094 metr es weredrilled and subsequently incorporated intothe resource database. Drilling has been focusedon three main projects, which Chaaratis developing into viable mining pr ojects, inorder to establish the foundation for a largescale,low-cost mining operation.At Tulkubash the company continues towork on the documentation required for theapplication for the grant of a mining licenceand it plans to start mining later this yearwith gold production due to commence in2013 once the processing plant has beencommissioned.The oxide mineralization hosted in the Tulkubashquartzite can be identified over a 6kmstrike length. Drilling has focused on a small500 metre section, where infill drilling has allowedthe delineation of a mineable r eserve.The considerable on-strike extension potential,which is likely to facilitate a rapid increasein the production rate, has been demonstratedby 440 metres of wide-spaced drilling tothe north of the deposit. Drilling has been focusedon the near surface part of the mineralizationwhich can be extracted by low-stripratio open pit mining, the oxide or e fromwhich is expected to be mostly free milling.The Contact pr oject hosts 2.78 millionounces, an increase of 39% over the pr e-vious resource update. This increase wasaccompanied by a small impr ovement ingrade to 4.32 grams/tonne. Contact is openboth on strike as well as down dip. Thewidth of the mineralization and its grade improvewith depth.The Main pr oject, formerly known asM2400 and M3000, is now r ecognized as asingle large body of 1.51 million ounces, anincrease of 17%, with the combined gradefalling slightly to 4.14 grams/tonne. Only 13holes were drilled in this project in 2011, howeverit is expected that the size will increasesignificantly and the grade will improve onceunderground drilling can take place followingthe development of an adit.Chaarat’s CEO Dekel Golan says, “I believethat the tremendous potential of Chaarat isbeing demonstrated by successful, rigor ousexploration activity and the development ofthe infrastructure needed to support a largescaleoperation. The significantly impr ovedpolitical climate in the Kyrgyz Republic is givinga welcome added impetus to our operationsduring this development phase, whilstTulkubash, the non-refractory section of thedeposit, is being fast tracked to developmentin order to stimulate early cashflow.”Study shows feasibility of Oracle coal projectA TECHNICAL feasibility study conducted forOracle Coalfields on Block VI of the Thar Coalfieldin Sindh Province, Pakistan, demonstratesthe technical and economic viability of themining project. The Thar Coalfield is 380kmfrom Karachi, and covers a total ar ea of9100sqkm with Block VI covering 66.1sqkm.The exploration licence for Block VI is heldby Oracle’s 80%-owned subsidiary , SindhCarbon Energy, a private company incorporatedin Sindh Province. On November 2, 2011,Sindh Carbon submitted an application forconversion of the licence to a mining licence.The study found there are JORC-compliantcoal resources within the 20sqkm miningarea of 529 million wet tonnes with gross calorificvalue (CV) of 3182k calories per wet kilogramwith ash content at 5.89% andsulphur at 0.91%. There are probable reservesin phase 1 of the mining area of 113 millionwet tonnes with gr oss CV of2831kcal/wkg, ash 11.50% and sulphur0.79% with a strip ratio of 8.54 bank cubicmetres per 1 wet tonne of lignite.The total capital expenditure for open castmine development is estimated at US$610million, including US$224 million for miningequipment, which will provide for annual ligniteproduction of 5 million wet tonnes overa mine life of 23 years. The total cash cost ofproduction is estimated at US$42.21 per wettonne and the coal is confirmed to be of aquality suitable for power generation.Oracle’s CEO Shahrukh Khan says, “This isanother important step for Oracle as we lookto provide a sustainable source of energy toPakistan and bring its first large scale openpitcoal mine into production. The study indicatesthe technical and economic viability ofthe project.“Further work is continuing to r efine theoverall project economics, specifically in r e-spect of offtake agreements with respect tothe proposed mine-mouth power and the miningcontractor opportunities, prior to makingany definitive announcements on the overalleconomics. The Government of Sindh, in recentpublished announcements, recognizesa project IRR in excess of 20% assumingcompletion of certain financing milestones.The Board looks forward to progressing thetechnical feasibility study to bankable standardlater this year, when we will also seek directfunding for the mining project.”The coalfield is in close pr oximity to goodinfrastructure, with ongoing development ofa road and power network in the region.14 | ASIA Miner | May/June 2012

Central AsiaPositive study for Karchiga VMS projectORSU Metals has received positive results froma definitive feasibility study (DFS) for its 94.75%-owned Karchiga volcanogenic massive sulphide(VMS) copper pr oject in northeastKazakhstan. The DFS is based on indicated resourcesof 10.8 million tonnes of combined sulphideand oxide mineralization grading 1.73%copper for 412.7 million pounds of containedcopper and an inferred resource of 20,000 tonnesof sulphide mineralization grading 1.28%for 700,000 pounds of contained copper.Using only the indicated estimates, the DFSsupports a probable mineral reserve estimateof 8.5 million tonnes of sulphide or e in theCentral and North East pits containing 320million pounds of copper at an average gradeof 1.71% copper to be amenable to flotationand an additional 1.5 million tonnes of ore inthe Central pit containing 47.2 million poundsof copper at an average grade of 1.43% tobe amenable to heap leaching.The DFS was prepared by the company’slead mining consultant SRK Consulting (UK)Limited, which is independent of Orsu. Theopen pit mining schedule calculated a producingmine life of 11.5 years. The mining scheduleenvisages the mining of 10 milliontonnes of sulphide and oxide or e and 124million tonnes of waste. The average annualmining rate is 750,000 tonnes.For the first 2.25 years of the mine life, themining schedule includes open pit mining ofthe Central sulphide ore body alone to maximizethe sulphide copper grade and hencesulphide copper r ecovery. The optimizedOrsu Metals’ Karchiga project is in the far northeast of Kazakhstan.mine schedule has been developed to minimizethe stripping ratio in the initial thr eeyears. In addition, the use of stockpiling hasenabled the company to increase the processedore grade. From year 4 until year 7, sulphideore will be mined from the Central andNorth East open pits. Fr om year 8 until theend of mine life in year 12, all mining will continuein the North East pit.The plant is designed to annually pr ocessabout 750,000 tonnes of sulphide ore. A conventionalprocessing route was chosen usingrelatively fine grinding and selective sulphideflotation to produce a 27.9% bulk concentrate.First production has been scheduled forthe fourth quarter of 2013.Copper from the oxide ore will be extractedusing SXEW process. The oxides will be treatedover 4.5 years starting in 2018 at 360,000tonnes annually and is expected to pr oducean annual average of 6.22 million pounds ofcopper cathode. Production of cathode copperwill continue until 2022.To reduce initial CAPEX, SXEW plant constructionhas been delayed until after the initialCAPEX payback. The plant has been designedto treat a monthly average of 30,000 tonnes ofleachable oxide ore. The DFS demonstratesthat economically the best option is to delaySXEW construction until 2017, allowing thecost of construction to be financed fr om revenuegenerated by the sulphide ore treatment.Funds boost for Sekisovskoye UG developmentHAMBLEDON Mining has confirmed aUS$3 million boost from a major investor.The funds will be used to continue developmentof the Sekisovskoye undergr oundgold mining operation in Kazakhstan. TheEuropean Bank for Reconstruction and Development(EBRD) paid the funds as part ofa share subscription agreement. In return itwill receive a 6% stake in the company.In February, Hambledon announced a dealwith the EBRD which could pr ovide it withmore than US$20 million to invest in Sekisovskoye.The EBRD agreed terms of a US$15million loan facility and the US$3 million equityinvestment. In addition Hambledon has issuedthe EBRD warrants worth US$2.3 million.The bank was established after the ColdWar to help ex-Communist countries transitionto market economies. It injects about 9billion Euros a year into pr ojects supportingthe development of market economies inEurope and Central Asia.Hambledon’s growth plans have also includedthe acquisition of Akmola Gold LLP, whichoperates two gold projects – Tellur and Stepok- neighbouring Sekisovskoye. The pr oposedUS$5 million acquisition was announced lastSeptember but is yet to be completed. It wasplanned that ore from these operations wouldbe processed at Sekisovskoye.The company says the Kazakhstan state miningfirm is planning to take a pre-emptive stakein the deal while certain permits and waiversneeded to complete the acquisition have yet tobe received from Kazakh authorities. Becauseof the delay the sellers ar e in talks with Hambledonseeking to amend the terms of the deal.Hambledon was supposed to have paidUS$3 million by the end of Mar ch, withUS$2.5 million due to the sellers and the remainderto the gover nment. The companysays none of the payments have been madebecause of the delays.Hambledon is advancing underground drillingto validate and expand resources.16 | ASIA Miner | May/June 2012

Central AsiaExploration replaces mined Kumtor reservesCENTERRA Gold’s 2011 exploration programhas replaced reserves mined during the year atthe Kumtor Central Pit in the Kyrgyz Republic.An estimated 704,000 ounces were added toreserves, representing an increase of 11%, beforeaccounting for 2011 production.After accounting for pr ocessing of about709,000 ounces of contained gold in 2011,Kumtor’s proven and probable mineral reservesremained at 6.3 million ounces of containedgold as of December 31, 2011. All of theincrease in the Central Pit open pit reserves isa result of additional exploration drilling primarilyon the Southwest Extension of the SB Zone.This drilling continues to outline a new zoneof mineralization immediately to the northwestof the Southwest Extension of the SBThe Central Pit at Centerra Gold’s Kumtor Gold Project in the Kyrgyz Republic.Zone. The drilling has also increased the averagereserve grade for the Central Pit to 3.7grams/tonne gold, compar ed to 3.4grams/tonne in 2010.The company’s overall proven and probablereserves increased 694,000 contained ounces,before accounting for 2011 production,to 8.1 million ounces of contained gold, comparedto 8.2 million ounces as of December31, 2010. This represents an increase of 9%before accounting for 793,000 containedounces processed at Kumtor and Bor oo inMongolia during 2011.Centerra’s president and CEO Steve Langsays, “2011 was another successful explorationyear. We replaced reserves mined at Kumtor,generated initial resources at ATO and KaraBeldyr, and brought more than 2.4 million newounces of gold into r eserves plus resourcesand an additional 600,000 ounces of gold intoinferred resources at an average cost of lessthan $15 per ounce. We entered our first jointventure in China, added a second joint venturein Russia and our strong drill results at OrtacamNorth in Turkey should produce an initial r e-source statement by the end of 2012.”The company’s production forecast for2012 from Kumtor has been lower ed owingto increased ice movement in the southeastsection of the pit which has delayed scheduledaccess to the high grade SB zone. Thecompany says the build-up of ice and wastewas exacerbated by a 10-day stoppage inFebruary by striking labour ers at the mine.This is expected to delay the cutback fr omlate 2012 to late 2013, resulting in the deferralinto 2013-2015 of production from the highgrade SB zone otherwise expected in 2012.The company expects to partially mitigate theimpact of the movement and the resulting delayin cutback by accelerating mining in the southwestportion of the pit to access part of the newin September 2012 to provide higher grade ore.Preliminary engineering analysis indicates productionof 390,000 to 410,000 ounces of goldin 2012, rather than between 575,000 and625,000 ounces as previously forecast.Kumtor gold mine is one of the largest in centralAsia and is 350km southeast of Bishkek,the Kyrgyz capital. The operation includes aconventional open pit and carbon-in-leach mill.Gold extraction under way at DalabaiGOLD explorer and developer Central AsiaResources has started the process of extractinggold at its Dalabai project in Kazakhstan.The initial shipment of gold resin, which wassent to mining services company Dank inSemey, Kazakhstan, has been returned.Test work on the resin indicated it was loadedwith about 5879 grams of gold and followingtreatment the company immediatelyrecovered 5181 grams, or 181 ounces ofgold. Central Asia also received 165 ouncesof silver. A further 490 grams of gold and3044 grams of silver were due to be deliveredto the company in mid-April.The cathode gold produced from the resin isbeing stored at Central Asia’s bank in Almaty,the capital of Kazakhstan, and will remain thereuntil the company received an export permit tosell the gold. While the permitting pr ocess inKazakhstan is transparent, it is a lengthy pr o-cedure and the company is unsure when it willreceive the export permit.Central Asia’s next target is to deliver 6 tonnesof resin to the processing facility. On thebasis of the initial run, this equates to about30kg, or 1050 ounces, of gold.The company curr ently has about 80,000tonnes of ore stacked and leaching at Dalabai,which is about 50% of the leach pad’s targetedcapacity. The company continues to ramp upthe production rate towards its name-plate rate.In mid-March the company was leachinggold at a rate of about 25% of expected productionfor low-grade material during theramp up phase. Rates of circulation throughthe plant wer e at 28-30 cubic metr es perhour and return solution gold concentrationswere in the range of 1.5mg/litre.Central Asia chairman Guy W arwick saidthe Dalabai plant was performing above companyexpectations during the ramp up phase.“Operations to date show we have no leaksin the plant, something to fear in the cold weatherwhere materials have a tendency to becomebrittle and shatter if not tr eated withcare. Reaching our targets will not happenovernight but will result from incremental improvementsover the next six months.”18 | ASIA Miner | May/June 2012

Central AsiaStrong gold results from Chanach drillingThe Chanach Gold-Copper Project of White Cliff Minerals is in the northwest of theKyrgyz Republic.DRILLING carried out by joint venture partners White Cliff Mineralsand T2Gold at the Chanach Gold-Copper Project in the Kyrgyz Republichas returned significant intersections which indicate the potentialfor a large copper-gold resource. One hole shows widespreadgold mineralization over 180 metres from 109 metres @ 0.15grams/tonne gold and 0.2% copper.Within this mineralized zone there are several zones with higher gradesof copper and gold, including 16 metres from 181 metres @ 0.65%copper and 0.46 grams/tonne gold within 34 metres from 163 metres@ 0.40% copper and 0.26 grams/tonne gold, 5 metres from 284 metres@ 0.97% copper and 0.12 grams/tonne gold, and 3 metres from109 metres @ 0.46% copper and 0.69 grams/tonne gold. The highestgold assay is 1.13 grams/tonne gold and the peak copper assay is2.06% with 0.35 grams/tonne gold. The same hole also returned 40metres from 36 metres @ 0.5% copper in the supergene oxide zone.Another hole drilled 300 metres to the west of the above hole intersectedsupergene copper mineralization from surface to 80 metresdepth with an average grade of 0.5% copper, including 10 metres at1.0% copper from 12 metres and 4 metres @ 0.75% copper from 65metres. Weak sulphide mineralization was also encountered over anadditional 120 metres @ 0.14% copper from 80 metres.White Cliff’s managing director Todd Hibberd says, “The gold andcopper results are quite outstanding considering that they occur onthe outer edges of the mineralized system. The new intersections continueto demonstrate that the Chanach project has the potential todevelop into a large copper-gold resource.“The identification of gold associated with copper in the 2011 drillingprogram substantially improves the potential economics of the project.The joint venture partners are planning the 2012 exploration programwhich is focused on identifying the core of the mineralized system.”White Cliff owns 45% of the 83sqkm project that is 350km westsouthwestof the Kyrgyz capital of Bishkek. Chanach is in the westernpart of the Tien Shan Belt, a highly mineralized zone extending formore than 2500km, from western Uzbekistan, through Tajikistan, KyrgyzRepublic and southern Kazakhstan to western China.Parliament asked to reconsider AndashTHE Government of the Kyrgyz Republic has asked the country’s Parliamentto reconsider a motion of last June against the developmentof Kentor Gold’s Andash Gold-Copper Project. Following the requestmade in March to a meeting of the Kyrgyz Parliamentary Committeeon Development of Economic Sectors, the committee has sought clarificationof the Government position.Australian-based Kentor Gold owns 80% of Andash which, while development-readyand supported by the Kyrgyz Government, requires theformal approval of the local community. Upon receiving final approval andgaining site access, Kentor will begin a three month geotechnical investigationprogram and then proceed with the construction program.Andash is a high-grade, very low-cost project. Kentor is targeting2013 to begin production at an annual rate of 70,000 ounces of goldand 7400 tonnes of copper for an initial six years.At the March meeting most committee members spoke in supportof the development on the following grounds:• Contribution to the national economy• Contribution to the state budget• Creation of employment• Contribution to local development• Speed of development• Reputable investor with funds to hand• Legal consequences of cancelling licence without adequate grounds• Impact on the investment climate as a result of government actionor inaction• Comprehensive social program.20 | ASIA Miner | May/June 2012

Company ProfileOn the road to the Savoyardy project in the southof the Kyrgyz Republic.Study delivers positive outcomes for ShambesaiA DEFINITIVE Feasibility Study(DFS) has confirmed Manas ResourcesLimited’s (ASX code: MSR)Shambesai Gold Project in the KyrgyzRepublic as a low-cost, highmargingold leach project that is atechnically simple, low-risk operationwhich can be commissioned inless than 18 months, subject to permitting,for a very low capital cost.Drilling at the Shambesai project which will be developed first byManas Resources.The outcomes of the DFS willallow Manas to rapidly developa low-risk and highly profitableoperation at Shambesai. The projectis expected to pay back allcapital requirements within thefirst year of production.Manas Resources is an Australian-based,ASX-listed companyfocused on exploring and developingits 100%-owned gold projectsin the Tien Shan gold belt,Kyrgyz Republic. The companyhas a mineral resource base of1.251 million ounces at theShambesai and Obdilla projects,which are just 7km apart. Manasis the republic’s largest and mostactive gold explorer with a4400sqkm land package andnine projects under exploration.To date, Shambesai has 5.3 millionindicated tonnes @ 2.4grams/tonne gold for 411,000ounces and 6.3 million inferredtonnes @ 1.8 grams/tonne for355,000 ounces while Obdillahas 6.3 million indicated tonnes @1.8 grams/tonne for 353,000ounces and 2.9 million inferredtonnes @ 1.4 grams/tonne for132,000 ounces.The company intends to developShambesai first and then examineincorporating Obdilla. The DFS forShambesai has been completedby the Manas technical team in associationwith external consultants,and has been reviewed by independenttechnical consultantsSnowden Group United Kingdom.The DFS projects Shambesai willhave an average annual orethroughput of more than 600,000tonnes producing on average53,000 ounces of gold over a4.5-year mine life, assuming treatmentof indicated and inferredoxide and sulphide material fallingwithin the initial planned stage 1pit. The mine design targets extractionof the shallow, high-grade portionof the indicated and inferredresource with subsequent processingof all oxide and sulphide materialthat falls within the pit shell.The amount of ore to be minedis projected to be 3.2 milliontonnes @ 2.8 grams/tonne for285,000 ounces of gold, andconsists of a probable reserve of2.5 million tonnes of oxide andsulphide material @ 3.0grams/tonne for 245,000 ouncesand additional inferred oxide andsulphide material of 700,000tonnes @ 1.9 grams/tonne for40,000 ounces. The inferred materialwithin the design pit shell hasa very high likelihood of being updatedto indicated status after inclusionof results from the latestdrilling and completion of theshear zone drilling program.Manas’ managing directorStephen Ross says, “We are verypleased with the positive outcomeof the DFS and look forward to deliveringa low-cost, high-margingold operation. We are particularlyencouraged by the technical simplicityof the operation, the relativelylow capital costs to start up, highgold recoveries for a leach operationand low operating costs.“While the project initially targetsnear-surface, high-gradeoxide material, confirmation of excellentgold recoveries through theleaching of sulphide material hasunlocked substantial additionalproject value and allows us toevaluate ongoing reserve and productiongrowth from the current22 | ASIA Miner | May/June 2012

Shambesai resource beyond thecurrent mine plan,” he says.NPV US$148 MILLIONThe DFS forecasts net cash flowsafter capital expenditure ofUS$37 million and operatingcosts to be US$208 million usinga US$1500/ounce gold price.The Net Present Value (NPV) hasbeen calculated to be US$148million with an IRR of 96% at an8% discount rate for the life-ofmine.All DFS cash flow estimatesare made assuming treatment of indicatedand inferred oxide andsulphide ore within the optimizedpit shell, and before tax.Cash costs for the life-of-mine averageUS$411 per ounce of goldproduced and reflect increasedgold production for the sulphide materialthat can be readily leachedand was not included in previousstudies. The capital costs to first productionand gold pour are estimatedto be US$32.6 million withpayback of this capital within thefirst 10 months of operation.Ongoing drilling and explorationat Shambesai and otherManas prospects has potential toadd to resources. Winter drillinghas returned encouraging resultswith all seven holes intersectingbroad zones of mineralization, themajority outside the current resourceand pit boundary.Highlights are a number of continuouswide, high-grade intersectionsalong the shear zone in oxide andsulphide mineralization. Best resultsare 22 metres from 97 metres @3.16 grams/tonne gold including8 metres from 103 metres @ 8.45grams/tonne; 22 metres from 221metres @ 2.16 grams/tonne goldincluding 5.15 metres from 237metres @ 4.77 grams/tonne; and12 metres from 69 metres @ 3.60grams/tonne gold.The DFS shows overall averagegold recoveries at Shambesai forall ore types over the life-of-mineare estimated to be 85.6%,which includes 90% recovery forthe non-refractory oxide and sulphideore and 42.8% for the refractorysulphide ore. Almost92% of the project revenue is attributableto non-refractory oresand only 8% attributable to refractorysulphide ore.SULPHIDE ORE NOW INCLUDEDShambesai was initially designed toprocess the oxide ore only, howeveras part of the DFS and due to extremelypositive testwork resultswhich show that Leachwell analysiscan be used to differentiate refractoryand non-refractory ore duringmining, the process design now incorporatestreatment of both formsof sulphide ore that falls within theoriginal oxide optimized pit design.All non-refractory oxide and sulphideore has then been dividedinto high-grade and low-grade oreusing a cut-off grade of 2.0grams/tonne to determine whichof either the vat-leach processroute or heap-leach process routeis most appropriate. Non-refractoryhigh-grade ore over 2.0grams/tonne will be vat leachedinitially while low-grade ore willbe sent for processing on the heapManas Resources has a number of projects in the far southwest ofthe Kyrgyz Republic.leach pads. Refractory sulphideore will be similarly split with highvaluehigh-grade ore being pretreatedto encourage oxidationbefore being stockpiled. This refractoryore will then be treated onthe heap leach after treatment ofnon-refractory ore is completed.The ability to process sulphideore through this simple processroute will allow re-evaluation of potentialreserve and production expansionthrough incorporatingfurther material from the 766,000ounce Shambesai resource. Workis continuing to fully define the proportionof non-refractory sulphidesand the potential operational recoveriesfor the sulphides. Thecompany is also considering optionsto further process refractorymaterial to increase recoveries.COMMUNITY CONSULTATIONManas has ceased drilling and explorationat Shambesai to engagein a community consultationprocess with the local Maidan villagecommunity as a precursor tocompleting development plans.The community has provided recommendationsthat it would likedealt with as part of the developmentprocess to ensure that a goldmine can result in tangible benefitsfor the community. Exploration continueselsewhere on the company’sextensive portfolio.Stephen Ross says in a positivestep for commencement of mineraland subsoil licensing in the KyrgyzRepublic, in March the Director ofthe State Agency on Geology andMineral Resources approved compositionof the commission on licensingof subsoil use, or the StateLicensing Committee, on behalf ofthe government. The committee willbe responsible for granting of all minerallicences and it was expected tocommence the formal granting ofmineral licences during April.He says company managementis now working closely with theState Agency for Geology andNatural Resources to approve theTEO Report (Russian interpretationfor Technological and EconomicJustification Study) in the shortesttime possible.A panoramic view along the valley from the Obdilla project at right to the Shambesai project at far left.May/June 2012 | ASIA Miner | 23

ChinaChina wants continuing growth but at a low costBy Keith Goode, Financial Services Representative of Taylor Collison and a consultant with Eagle Research Advisory.THERE has been much said recently aboutslowing Chinese growth and the impact onthe rest of the world but the fact is thatChina wants gr owth at as low a cost aspossible and the growth rate is being deliberatelyslowed in a bid to achieve an annualrate of about 7%. The r eality is Chinais being rebuilt and a vast number of its citizensare becoming increasingly wealthy.At China Mining 2011 in November it wasobvious that China appears likely to continueto fuel the commodities boom for atleast 10 years, but does not want to payhigh commodity prices, and will try and paylower prices any way it can.In the Equatorial Resources presentationat Sydney Mining Club on March 1, 2012, aquote was given by Wu Xichun of China Iron& Steel Association that “By 2015, Chinawants to import 50% of its ir on ore fromChinese-owned mines elsewher e in theworld”. To back this up, China appears tobe buying as much as it can, as shown inSAMI statistics in a presentation at the AfricanMining Investment Conference in Sydneyon Mar ch 12, 2012, which statedChinese companies have also gained Australianand Canadian personnel thr oughtheir acquisitions.For identifiable worldwide company acquisitionsin all sectors of mor e than US$100million, US$94 billion was spent in 2011 comparedto $110 billion in 2010 and $77 billionin 2009, up from $12 billion in 2005. EagleResearch Advisory is aware of other transactionsthat are not included in the totals.Just because growth is not clearly visible inthe Chinese city you ar e visiting does notmean growth has stopped, it simply means itis probably happening elsewher e. China isbuilding for the future as illustrated by the r e-ported US$62 billion pr oject to draw waterfrom four rivers in the south to China’ s driernorthwest using about 2905km of aqueducts.Although China is following its own path toimproving the environment through closinginefficient plants and combining smaller onesinto larger ones, it has also taken a dif ferentapproach to ‘gr eening’ existing minesthrough paying bonuses or tax exemptions tomining companies that ‘green’ or make theirmine areas become tourist attractions.The incentives are drawn from a RMB20 billiongovernment fund to support the mining industry.The national mine park plan was startedin 2005 and has resulted in creation of 21 nationalmine parks - a complete contrast toother countries that try and tax mines to themax. The current 12th 5-year plan also involvesimproved energy utilization and companies thatembrace it are apparently exempt from tax.At the China Mining conference CRU’s presentationshowed China accounting for about40% of global consumption of all base metalswhile China is trying to improve technology toincrease metal recycling percentages to morethan 50% from 20-25%. Although domesticproduction is incr easing in ar eas such ascopper, it is still r egarded as being way behind(it used to be about 65% imported).Copper is per ceived to still be in deficitthrough to 2013, mostly because the majorshave focused on developing ir on ore. Demandis expected to r emain high, driven bynew uses, especially battery-powered/electricvehicles, and China’s likelihood to continueits use in construction.Iron ore demand was seen by the Mysteelgroup as a function of China’s GDP and fixedasset investment growth, with faster growthin west and central ar eas because the easthas become largely built. GDP gr owth wasperceived as slowing to a mor e sustainablelevel closer to 8%, while steel production wasseen as beginning to plateau at about 830million tonnes in 2015, which still representssignificant demand.中 国 欲 以 低 成 本 维 持 增 长最 近 被 广 泛 谈 论 的 一 个 话 题 是 中 国 放 慢 的 增长 速 度 及 其 对 于 世 界 其 他 国 家 的 影 响 。 但 事实 上 中 国 希 望 以 尽 可 能 低 的 成 本 增 长 , 因 而将 增 长 速 度 有 意 地 略 为 放 慢 至 7% 左 右 的 年增 长 率 。 中 国 正 在 进 行 庞 大 规 模 的 建 设 , 有庞 大 数 量 的 国 民 正 变 得 越 来 越 富 裕 。在 2011 年 11 月 份 的 中 国 国 际 矿 业 大 会 上了 解 到 的 情 况 显 示 , 中 国 很 可 能 将 推 动 大 宗商 品 牛 市 持 续 至 少 十 年 。在 Equatorial Resources 公 司 于 2012 年 3 月1 日 在 悉 尼 矿 业 俱 乐 部 进 行 的 演 示 报 告 中 ,援 引 了 中 国 钢 铁 工 业 协 会 名 誉 会 长 吴 溪 淳 的话 :“ 中 国 希 望 到 2015 年 时 , 将 有 50% 的 铁矿 石 进 口 自 中 国 企 业 控 股 的 海 外 铁 矿 。” 作为 印 证 ,2012 年 3 月 12 日 在 悉 尼 召 开 的 非 洲矿 业 投 资 大 会 上 公 布 的 SAMI 统 计 报 告 显 示, 中 国 企 业 已 经 通 过 收 购 行 动 招 募 了 澳 大 利亚 和 加 拿 大 员 工 。在 全 球 范 围 内 所 有 领 域 中 交 易 价 格 超 过 1亿 美 元 的 可 确 认 的 企 业 收 购 行 动 中 ,2011年 中 国 投 入 的 资 金 合 计 达 到 940 亿 美 元 ,2010 年 这 一 数 据 为 1100 亿 美 元 ,2009 年 为770 亿 美 元 , 而 在 2005 年 还 仅 有 120 亿 美 元。 据 Eagle Research Advisory 了 解 , 还 有 交易 数 据 并 没 有 计 算 进 来 。如 果 在 你 到 访 的 中 国 城 市 中 增 长 并 不 明显 , 这 并 不 意 味 着 增 长 停 止 , 而 仅 仅 表 明 增长 可 能 发 生 在 其 他 地 方 。 中 国 正 在 为 未 来 建设 , 据 报 道 , 中 国 正 在 兴 建 一 个 投 资 额 为620 亿 美 元 的 项 目 , 将 南 方 四 条 河 流 的 河 水通 过 长 达 2905 公 里 的 引 水 渠 输 送 到 干 旱 的北 方 。尽 管 中 国 正 在 走 自 己 的 道 路 , 通 过 关 闭 效率 低 下 的 工 厂 以 及 将 规 模 较 小 的 工 厂 合 并 为大 工 厂 来 改 善 环 境 , 但 同 时 它 也 在 通 过 不 同的 方 式 来 “ 绿 化 ” 现 有 的 矿 场 , 如 对 那 些 “ 绿色 ” 采 矿 企 业 或 者 将 其 矿 区 改 造 为 旅 游 景 点的 企 业 给 予 奖 励 或 予 以 免 税 优 惠 。这 些 支 持 采 矿 业 的 激 励 措 施 来 自 于 一 项 政府 基 金 , 其 金 额 为 200 亿 人 民 币 。2005 年 开始 的 国 家 矿 山 公 园 计 划 已 经 推 动 建 立 了 21个 国 家 矿 山 公 园 —— 这 跟 其 他 国 家 对 矿 山 尽可 能 多 开 发 多 征 税 的 做 法 形 成 了 鲜 明 的 对比 。 正 在 执 行 的 十 二 五 计 划 同 样 包 括 了 提 高能 源 利 用 效 率 的 政 策 , 实 施 这 一 政 策 的 企 业将 获 得 免 税 优 惠 。CRU 在 中 国 矿 业 大 会 上 作 的 报 告 显 示 , 中 国占 全 球 贱 金 属 消 费 量 的 40%, 它 正 在 试 图 改 进技 术 水 平 , 将 金 属 回 收 利 用 率 从 20-25% 提 高到 50% 以 上 。 尽 管 在 诸 如 铜 等 一 些 领 域 的 国 内产 量 正 在 增 长 , 但 它 依 然 被 认 为 远 远 处 于 落后 水 平 ( 过 去 进 口 量 约 占 65%).铜 的 缺 口 被 认 为 将 持 续 到 2013 年 , 这 主 要 是 由于 主 要 的 采 矿 企 业 将 重 点 放 在 铁 矿 石 的 开 采 上 。在 新 的 用 途 —— 尤 其 是 电 池 驱 动 或 电 动 车 辆 ——的 拉 动 下 , 以 及 中 国 将 在 建 设 中 继 续 使 用 铜 , 预计 铜 的 需 求 将 持 续 处 于 高 位 。在 我 的 钢 铁 (Mysteel) 集 团 看 来 , 铁 矿 石的 需 求 量 是 中 国 GDP 和 固 定 资 产 投 资 增 长的 一 项 晴 雨 表 , 它 在 中 西 部 地 区 的 增 长 速 度更 快 , 因 为 东 部 地 区 的 建 设 基 本 上 已 经 完成 。 中 国 GDP 的 增 速 将 减 缓 到 接 近 8%, 这是 一 个 更 可 持 续 的 水 平 , 而 钢 产 量 将 在2015 年 开 始 稳 定 在 8.3 亿 吨 左 右 , 这 依 然 代表 着 巨 大 的 需 求 。24 | ASIA Miner | May/June 2012

ChinaKey Dachang licences renewedTHREE key exploration licences have beenrenewed at Inter-Citic Minerals’ DachangGold Project, in addition to the combinationof two other licences covering the DachangMain Zone in order to facilitate permitting.The 279sqkm Dachang project now comprisesfour licenses, all of which have beenrenewed successfully as they have comedue in the past.China’s Ministry of Land and Resour ces(MOLAR) has granted a further two year extensionof three exploration licences at Dachangcovering about 173sqkm. The renewalThe Dachang Gold Project is in southwest China, not far from major road infrastructure.is valid until November 25, 2013, when it willbe eligible for further renewal.In addition, the company asked for and r e-ceived from the Chinese Gover nment a r e-drawing of the boundaries of the remaining twoexploration licences within the property area tofacilitate permitting of the Dachang Main Zone(DMZ), which hosts most of Inter-Citic’s currentNI 43-101 compliant inferred mineral resourceestimate and is planned for open pit mine development.The overall area of these licencesremains unchanged at about 106sqkm.The company has recently received resultsfrom its 2011, 21,000 metr e trenching programat Dachang, which continues to be theprimary method for new discoveries due tothe thin soil cover and near-surface mineralizationobserved thr oughout the pr operty.Trenching is one of the most successful andcost-effective methods of gold exploration atDachang, and a consistent spatial r elationshiphas been observed between the gold-insoilanomalies, trench values and underlyingstrongly altered and mineralized fault zones.During 2011’s trenching four new areas ofsurface discovery were made - two in thesoutheast part of the pr operty, one north ofthe original DMZ and a final area of discoverysouthwest of the Placer Valley Zone (PVZ). Inaddition, the 861 and Acadia Zones of discoverywere expanded by this tr enching program.In all cases these discoveries are faultcontrolled sulphide gold mineralization similarto the DMZ. All new discoveries ar e open toexpansion by additional drilling and trenchingprograms being planned for 2012.The most advanced new discovery expandedby the 2011 tr enching program is the861/XP fault system, which has now beendrill tested on its known western and easternextents. This fault system north of the DMZhad been delineated along a 2.8km extent.The 861 Zone on the fault’s west end is stillopen to the west and has been consistently intersectedin trenches and 40 metre spaced drillfences along a 1.4km strike length to depthsof 125 to 150 metres. A central section of thisfault requiring further drill testing lies betweenthe 861 Zone from the nearby XP Zone, whichremains open along strike to the east.大 场 的 主 要 勘 探 执 照 得 到 续 期Inter-Citic 矿 业 公 司 大 场 金 矿 项 目 除 为 推进 许 可 证 申 请 、 覆 盖 大 场 主 区 的 两 个 合 并执 照 外 的 其 他 三 个 主 要 的 勘 探 开 采 执 照 的有 效 期 已 经 得 到 延 长 。 大 场 项 目 占 地 279平 方 公 里 , 目 前 拥 有 4 个 勘 探 执 照 , 且 都 在到 期 时 成 功 续 期 。中 国 国 土 资 源 部 已 经 批 准 大 场 项 目 覆 盖面 积 为 173 平 方 公 里 的 3 个 勘 探 执 照 有 效 期延 长 两 年 。 有 效 期 截 至 2013 年 11 月 25 日 ,届 时 有 资 格 再 进 一 步 申 请 续 期 。另 外 , 公 司 向 中 国 政 府 申 请 重 新 划 分 其余 两 个 勘 探 执 照 的 界 线 以 推 进 大 场 主 区(DMZ) 获 得 许 可 证 , 已 经 得 到 中 国 政 府 准可 , 大 场 主 区 拥 有 Inter-Citic 公 司 目 前 符合 NI43-101 推 断 资 源 估 计 量 的 大 部 分 资源 , 该 区 域 计 划 采 用 露 天 开 采 方 式 。 这 些执 照 覆 盖 的 所 有 区 域 面 积 约 保 持 在 106 平方 公 里 。公 司 最 近 已 经 得 到 2011 年 的 测 试 结 果 ,由 于 该 矿 权 地 的 成 矿 带 土 壤 覆 盖 较 薄 且 近地 表 , 大 场 实 施 的 2.1 万 米 的 槽 探 作 业 将 继续 成 为 新 发 现 区 域 的 主 要 勘 探 方 法 。 槽 探是 大 场 项 目 黄 金 勘 探 使 用 的 最 成 功 和 最 具有 成 本 效 益 的 方 法 , 另 外 , 根 据 观 测 发 现土 壤 中 金 异 常 、 槽 探 值 和 潜 在 强 蚀 变 矿 化断 层 区 域 之 间 存 在 一 致 的 空 间 关 系 。在 2011 年 期 间 , 近 地 表 的 四 个 新 区 域 实施 了 槽 探 作 业 – 两 个 位 于 该 矿 权 地 的 东 南部 , 一 个 位 于 原 大 场 主 区 的 北 边 , 最 后 一个 位 于 Placer Valley 区 域 (PVZ) 的 西 南方 。 另 外 ,861 和 Acadia 区 通 过 此 次 钻 探作 业 得 到 了 扩 展 。 在 所 有 情 况 下 , 这 些 新区 域 都 是 断 层 控 制 的 硫 化 金 成 矿 带 , 与 大场 主 区 类 似 。 所 有 的 这 些 新 发 现 区 域 都 可以 通 过 计 划 在 2012 年 进 一 步 实 施 的 勘 探 和槽 探 作 业 扩 展 。通 过 2011 年 槽 探 作 业 扩 展 最 显 著 的 区 域是 861/XP 断 层 系 统 , 目 前 已 在 其 已 知 的 西部 和 东 部 边 界 上 进 行 了 钻 探 测 试 。 该 断 层系 统 位 于 大 场 主 区 北 部 , 目 前 已 经 沿 着 2.8公 里 的 延 伸 带 被 圈 定 出 来 。位 于 断 层 西 部 边 界 的 861 区 域 西 部 未 封闭 , 并 且 沿 走 向 1.4 公 里 长 、 位 于 125-150米 深 处 的 探 槽 和 40 米 间 距 的 钻 孔 持 续 见 矿。 该 断 层 中 心 区 域 位 于 从 附 近 XP 区 到 861区 之 间 , 需 要 进 一 步 进 行 钻 探 测 试 。XP 区沿 走 向 向 东 未 封 闭 。26 | ASIA Miner | May/June 2012

ChinaBlackgold aims for 69% more productionBlackgold International’s coal mines are in Chongqing province.BLACKGOLD International is on track to increasecoal production from its Chongqingprovince operations by at least 69% this yearto around 1.6 million tonnes. Much of the increasewill come from about 400,000 tonnesat Changhong mine in the pr ovince’s southwhich was commissioned in February while itwill also be boosted by mechanization improvementsand increases in primary mining panelsat the norther n Caotang and Heiwanoperations. Changhong’s production is expectedto double to 800,000 tonnes in 2013as ramp-up continues while the company expectsto bring a fourth mine, Wushan, in thenorth, into operation by the end of 2012.Blackgold’s chairman James Tong says thecompany is pleased with progress and confidentof further growth.The company’s mines are near the YangtzeRiver which provides a low-cost means oftransport to power plants downstr eam.James Tong says, “We are acquiring ChongqingGuoping Shipping Transportation Company(GPST) which operates a bargetransport business along the Yangtze with itsfleet comprising nine hollow hull barges withtotal annual capacity of 600,000 tonnes.GPST also has a number of storage facilitieswhich can be utilized to blend and wash coal.The acquisition increases ownership of thesupply chain as we also have a port and storagefacility which we aim to have operationalin quarter 2 of 2013.“Blackgold has also targeted a site for constructionof a coal washing plant which willprovide various types of coal based on customerrequirements. Applications have beenlodged and the company hopes to beginoperations in 2013. The integrated businessmodel will allow Blackgold to reduce the costof sales by shortening the shipment cycle aswell as meeting customer demands in a timelyand cost-efficient manner by providinga whole supply chain solution.”The company has proven reserves of 79.4million tonnes and probable reserves of 46.2million tonnes along with inferr ed resourcesof 42 million tonnes. “We will continue upgradingresources to reserves this year with theaim of having 150 million tonnes in r eservesby year-end. We are also continuing to explorenew areas and considering possible futureacquisitions which will incr ease ourresources,” James Tong says.“Blackgold is viewed favourably by theChongqing government as the regional consolidatorof smaller coal operations given ourstatus as a listed company, our safety trackrecord, corporate governance and financialresources. We will continue to focus on makingacquisitions in the Chongqing region andare negotiating for five additional mines whichwe expect to finalize this year . We are alsolooking to pursue further mechanization upgrades.”黑 金 国 际 计 划 将 产 量 提 高 69%黑 金 国 际 控 股 有 限 公 司 正 在 跟 进 提 高 其 位 于重 庆 省 的 运 营 煤 矿 产 量 , 预 期 今 年 最 少 提 高69%, 达 到 160 万 吨 左 右 。 其 中 约 40 万 吨 的增 加 量 将 来 自 位 于 该 省 南 部 于 2 月 份 试 运 行的 长 宏 矿 场 , 同 时 , 草 堂 北 矿 场 和 黑 湾 矿 场主 要 采 矿 车 间 的 机 械 化 提 升 和 增 加 也 将 提 高产 量 。 长 宏 矿 场 产 量 预 期 在 2013 年 提 高 一倍 至 80 万 吨 , 产 量 保 持 继 续 增 长 , 公 司 计划 在 2012 年 年 底 推 进 旗 下 第 四 个 矿 场 巫 山进 入 运 营 阶 段 。 黑 金 的 主 席 James Tong 称公 司 对 取 得 的 进 步 十 分 满 意 并 对 进 一 步 增 长充 满 信 心 .公 司 的 矿 场 位 于 长 江 附 近 , 为 下 游 的 电厂 提 供 了 低 成 本 的 传 输 方 式 。James Tong称 , “ 我 们 正 在 收 购 重 庆 国 平 货 运 公 司(GPST), 该 公 司 沿 长 江 经 营 驳 船 运 输 业务 , 其 船 队 包 括 9 只 驳 船 , 年 总 装 载 量 达 60万 吨 。GPST 还 拥 有 许 多 储 藏 设 施 , 可 以 用来 混 合 与 清 洗 煤 。 此 次 并 购 提 高 了 供 应 链 的所 有 权 , 因 为 我 们 持 有 了 港 口 和 储 藏 设 施 ,预 期 这 些 设 施 将 在 2013 年 第 二 季 度 运 营 。”“ 黑 金 还 为 建 造 洗 煤 厂 选 好 了 厂 址 , 该 厂将 以 客 户 要 求 为 基 础 提 供 多 种 煤 。 申 请 已 经提 交 , 公 司 期 望 在 2013 年 开 始 运 营 。”“ 综 合 业 务 模 型 使 黑 金 能 够 通 过 缩 短 发 货周 期 来 减 少 销 售 成 本 并 通 过 提 供 一 个 整 体 的供 应 链 解 决 方 案 来 采 取 及 时 、 具 有 成 本 效 益的 方 法 满 足 客 户 需 求 。”公 司 证 实 储 量 为 7940 万 吨 , 概 算 储 量 为4620 万 吨 , 推 断 资 源 量 为 4200 万 吨 。“ 今年 , 我 们 将 继 续 升 级 资 源 为 储 量 , 旨 在 到 年底 前 使 储 量 达 到 1.5 亿 吨 。 我 们 还 将 继 续 勘探 新 的 区 域 , 并 考 虑 能 够 增 加 我 们 资 源 量 的潜 在 并 购 ,”James Tong 说 道 。“ 黑 金 国 际 被 重 庆 政 府 视 为 一 家 积 极 地 小型 煤 矿 运 营 区 域 性 整 合 者 , 这 主 要 是 考 虑 到我 们 是 一 家 上 市 公 司 、 具 有 良 好 的 记 录 、 公司 治 理 和 金 融 资 源 , 我 们 将 继 续 致 力 于 重 庆区 域 的 市 场 并 购 , 目 前 正 在 与 另 外 5 个 期 望关 闭 的 矿 场 进 行 协 商 。 我 们 还 期 望 继 续 进 行机 械 化 升 级 和 扩 大 供 应 链 所 有 权 。”28 | ASIA Miner | May/June 2012

ChinaSilvercorp expects 20% increase in silver productionSILVERCORP Metals has forecast silver productionto increase by 20%, gold by 90%,lead by 12% and zinc by 63% from its miningoperations in China during the next 12months. The 2013 financial year pr oductionto March 31, 2013 is expected to be theeighth consecutive year of incr eases in thecompany’s silver production.From the four mines at the Y ing MiningCamp in Henan province, production is expectedto increase to 695,000 tonnes of oreat a grade of 295 grams/tonne silver , 0.5grams/tonne gold, 5.1% lead and 1.5% zinc,yielding 5.9 million ounces of silver , 3350ounces of gold, and 87 million pounds of leadUnderground silver mineralization at Silvercorp’s LM mine within the Ying Mining Camp.and zinc. The GC mine in Guangdong pr o-vince is expected to begin initial pr oductionin the second quarter of fiscal 2013, betweenJune 1 and August 31, and is expected tomine 160,000 tonnes and to mill 153,000tonnes of ore, yielding about 630,000 ouncesof silver and 12 million pounds of lead andzinc. The BYP mine in Hunan province is expectedto mine and mill 175,000 tonnes ofore, yielding about 13,590 ounces of gold.At the newly-acquired XHP and XBG minesnear the Ying camp, Silvercorp will focus onexploration with only a minimal amount of byproductore expected to be pr oduced. Thefocus will be a 33,600 metre surface and undergrounddrilling pr ogram, budgeted atabout US$2.1 million. In addition, US$3.9million of capital expenditures is budgeted formine development, exploration tunnelling andupgrading existing mills. The company alsoplans to prepare an initial NI 43-101 resourcereport for the properties.At the GC project, Silvercorp has received apositive pre-feasibility study which establishedproven and probable reserves at the projectfor the first time and also reconfirmed GC’s robusteconomics. It defined mineral reserves of4.8 million tonnes in the proven and probablecategories grading 121 grams/tonne silver ,1.31% lead and 2.95% zinc, containing about18.5 million ounces of silver, 62,100 tonnes oflead and 140,200 tonnes of zinc, supportinga project life of 12 years.In preparation for production, facilities arebeing constructed with daily mining capacity of1500 tonnes and flotation milling capacity of1600 tonnes with the mining capacity enableto increase to 1570 tonnes after five years. Theflotation mill is designed to generate silver-lead,zinc, and pyrite concentrates. The optionalgravity tin recovery circuit can be appended tothe main circuit to recover tin from tailings.The reserves have been estimated fr om atotal of more than 7.631 million measur edand indicated tonnes @ 122 grams/tonne silver,1.32% lead and 3.08% zinc for almost 30million ounces of silver, 100,900 tonnes oflead and 235,300 tonnes of zinc while ther eare also almost 8 million inferr ed tonnes @123 grams/tonne silver , 1.41% lead and2.66% zinc for more than 31.477 million ouncesof silver, 112,500 tonnes of lead and211,900 tonnes of zinc.希 尔 威 预 期 白 银 产 量 增 加 20%希 尔 威 金 属 矿 业 公 司 预 期 其 位 于 中 国 的 采 矿运 营 在 未 来 12 个 月 白 银 产 量 将 增 加 20%, 黄金 产 量 将 增 加 90%, 铅 和 锌 产 量 将 分 别 增 加12% 和 63%。 截 至 2013 年 3 月 31 日 财 年 的 产量 预 期 实 现 连 续 第 八 年 的 白 银 产 量 增 长 。对 河 南 省 月 亮 沟 采 矿 区 内 的 四 个 矿 山 来说 , 其 产 量 预 期 将 增 至 69.5 万 吨 矿 , 其 中银 、 金 、 铅 和 锌 的 品 位 分 别 达 295 克 / 吨 、0.5 克 / 吨 、5.1% 和 1.5%, 金 属 含 量 分 别为 590 万 盎 司 银 、3350 万 盎 司 金 、8700 万磅 铅 和 锌 。位 于 广 东 省 的 GC 矿 预 期 在 2013 财 年 的 第二 季 度 - 6 月 1 日 至 8 月 31 日 期 间 投 产 , 预 期开 采 16 万 吨 , 处 理 15.3 万 吨 矿 石 , 生 产 约63 万 盎 司 白 银 、1200 万 吨 铅 和 锌 。 位 于 湖南 省 的 BYP 矿 预 期 采 选 17.5 万 吨 矿 石 , 生 产约 13590 盎 司 金 。在 新 收 购 的 位 于 月 亮 沟 矿 附 近 的 XHP 和XBG 矿 场 , 希 尔 威 将 专 注 勘 探 , 预 期 仅 产生 少 量 副 产 矿 物 。 预 期 的 勘 探 将 包 括 33600米 的 地 表 和 井 下 钻 探 作 业 , 预 算 约 为 210 万美 元 。 另 外 ,390 万 美 元 的 资 本 支 出 预 算将 用 于 矿 场 开 发 、 坑 探 和 现 有 选 厂 的 改 造 工作 。 公 司 还 计 划 为 这 两 个 矿 场 准 备 一 份 初 步的 NI 43-101 资 源 报 告 。希 尔 威 GC 项 目 的 预 可 行 性 研 究 结 果 非 常乐 观 , 首 次 证 实 了 该 项 目 的 证 实 和 概 算 储量 , 并 重 新 确 认 了 GC 稳 健 的 经 济 状 况 。 确定 的 证 实 和 概 略 矿 产 储 量 为 480 万 吨 , 其 中银 、 铅 和 锌 品 位 分 别 为 121 克 / 吨 、1.31% 和2.95%, 银 、 铅 和 锌 含 量 分 别 约 达 1850 万 盎司 、6.21 万 吨 和 14.02 万 吨 , 从 而 支 持 了 12年 的 项 目 寿 命 。设 施 正 在 建 造 中 以 为 投 产 做 准 备 , 采 矿 量为 1500 吨 / 日 , 浮 选 设 施 处 理 能 力 为 1600吨 / 日 , 采 矿 能 力 能 够 在 五 年 后 增 加 至 1570吨 。 浮 选 厂 计 划 生 产 银 - 铅 、 锌 和 黄 铁 精矿 。 可 选 的 重 选 回 收 锡 回 路 可 以 加 到 主 回 路中 用 于 从 尾 矿 中 回 收 锡 。探 明 和 推 定 资 源 量 超 过 763.1 万 吨 , 其 中银 、 铅 和 锌 的 品 位 分 别 达 122 克 / 吨 、1.32%和 3.08%, 金 属 含 量 分 别 为 近 3000 万 盎 司银 、10.09 万 吨 铅 和 23.53 万 吨 锌 , 另 外 , 推断 资 源 量 接 近 800 万 吨 , 其 中 银 、 铅 和 锌 的品 位 分 别 达 123 克 / 吨 、1.41% 和 2.66%, 金属 含 量 分 别 为 3147.7 万 盎 司 以 上 的 银 、11.25 万 吨 铅 和 21.19 万 吨 锌 。30 | ASIA Miner | May/June 2012

Paid Advertisement-Company ProfileBlasting operations done according to worldstandards in MongoliaWhat kind of changes doyou see in Mongolia’s blastingsector?Mining sector had developed for 90years in Mongolia. The first phase ofthe mining technology process whichis drilling and blasting work, untilnowadays has been done by nationalcompanies and specialists.Until 1990s Mongolia had beenbuying necessary explosive materialsfrom Russia /formally USSR/. Sincethen, after the democratic revolutionMongolia had a transition to marketeconomy thus importing explosiveaccessories from China, SouthKorea, Swiss and other countries. Atthe present, there are 13 domesticand foreign invested companies thatproduce ANFO, emulsion explosivematerials in Mongolia.How is the competition?At present, market demand for explosivesin Mongolia is about 80,000tons approximately. But the productivecapacity of explosive plantswhich are manufactured by domesticand foreign investment is about100,000 tons approximately.The international companies that operateworldwide are establishingbranches in Mongolia.What are the differences ineffectiveness of technology,human resources andquality between internationaland Mongolian nationalcompanies?The development level of companiesthat produce explosives and provideblasting services is relatively different.If in the above mentioned there areNational companies that providebetter blasting services and explosives,there may be companies withweak human resource effectivenessand technology. It is important tofocus on application of new technologiesto the blasting sector. 70%of the explosives plants which are inMongolia, manufacture explosiveswith Chinese, Russian technologyand 30% manufacture explosiveswith the latest advanced technologyof developed countries.Tell us about Mera LLCMERA LLC is the only NationalCompany that provides drill-blastingcomplex service in Mongolia. In2006 with 100% National investmentand US technology we establishedthe first explosives plant. Westarted to produce according to theinternational standards 3 types ofANFO explosives “Ayanga”,“Ayanga-X”, “Ayanga WR”.Through this work we were chosenas “The Best Domestic Investor” of2006 and “The best technology –Know How Entrepreneur” in 2011by establishing non-blasting ingredientsplant and applying Nitronitebrand emulsion in the blasting service.Also, the industrial explosivesmanufacturing, blasting operationsare done according to world standardsin Mongolia.What specifics and advantagesdoes the manufacturingtechnology have?Manufacturing technology has beentested in Siberian conditions and itcan work in temperature +50˚ to -40˚ Celsius, This makes it perfect forthe harsh climate of Mongolia. Otherthan the non-blasting ingredient plant(raw material), it provides safetywhen manufacturing, transporting,and charging with the help of chargingtrucks that produce explosive materialsduring the charging ofblastholes. Also we monitor, transformand adapt raw material quality,ingredients in advanced laboratory.By following this procedure we manufactureproducts with quality andwithout any waste thus providing customerrequirements. Since the manufacturingis fully automatic, it has lotof advantages such as ease of use,reduced cost and time, increasedwork efficiency and no quality defects.It’s a technology that has minimuminfluence on environmentbecause it uses minimal of water inmanufacturing process, doesn’tspread poisonous gas, and has lowsound and waste.What are the important factorsof high quality explosives,blasting services?There are lot of factors such as safety,knowledge, skills, experienced employees,and advanced technologythat provide safety, application ofproduct quality standard, monitoringregulations, raw material quality.Also we view with utmost importancesuch factors as services andproducts that provide the customers’requirements, its influence on environment,cost reduction.What advantages do youget by applying the internationalstandards?Our company applied to its manufacturing,services and operationprocess the international quality managementsystem ISO 9001:2008 in2010. This means that our companyensures its products and service,services that meet the internationalquality standard requirements and itshows that we are the first to operatein the blasting service sector, manufactureexplosives in Mongolia andwe can provide services that meetrequirements of foreign standards.How many customers andcooperators does MERAhave?We have worked on many largemining projects in Mongolia. Atpresent we are doing drilling andblasting services in Olon Ovoot goldmine, Zasag Chandman open pitiron ore mine, Baruun Naran coalmine, Erdenes Tavan Tolgoi, UkhaaKhudag of Tawan Tolgoi deposit.Also we provide explosive materialcharging services in “Baganuur” LLCmine. We provide blasting servicesto companies such as “Tavan Tolgoi”joint venture, “Erdenet Mining Corporation”,“Mogoi Gol” joint venture,“Boldtumur Eruu Gol” LLC and wesupply explosives and accessories toother blasting service companies.What does the future hold?In 2011, we established complexfacilities and applied the latest technologiessuch as emulsion explosiveplant, shot plus blasting software,electronic detonators, gas bags forair decking, remote firing devices,sirens, blast hole stemming machine,a DM-45 HP drilling machine, specialvehicle that transports and producesexplosives.This year we are going to extend ouremulsion plant, increase our drillingmachines, and introduce occupationalhealth and safety managementsystem, environmental managementsystem according to the internationalstandard requirements.32 | ASIA Miner | May/June 2012

MongoliaVoyager preparing KM resource estimateFURTHER drilling by Voyager Resources hasincreased the lateral extent of mineralizationintersected at the Aranjin prospect of the KMCopper Porphyry Project. Drilling at KM is ongoingand will assist the company in calculatinginitial resources before the end of June.Recent Aranjin drilling returned 104 metresVoyager’s KM (Khul Morit) project is in southern Mongolia, not far from the Chinese border.from 4 metr es @ 1.01% copper and 8.2grams/tonne silver, including 42 metres from20 metres @ 2.1% copper and 16.4 grams/tonne silver. This result is in addition to previousintersections from Aranjin that r eturned 168metres from 76 metres @ 0.74% copper and5.4 grams/tonne silver, 140 metres from 4 metres@ 0.6% copper and 5.3 grams/tonne silver,and 80 metr es from 60 metres @ 0.8%copper and 10.3 grams/tonne silver.Aranjin is the second of thr ee discoveriesidentified in a de-magnetized structural corridorthat hosts Aranjin, Cughur and CughurNE deposits where recent drilling returned 50metres from 6 metres @ 0.82% copper and1.87 grams/tonne silver. Further drilling isplanned to test mapped mineralized brecciasand strong copper-in-soil anomalies identifiedwithin the fault corridor. This corridor extendsfor more than 3km in strike with mineralizationbeing identified over its extent. V oyager believesthe corridor acts as a conduit to a porphyrystock to the southwest of Cughur withthe breccia pipes exploiting the weaker structureto intrude up the corridor.Voyager recently came to an agr eementwith a Mongolian-based reverse circulationdrilling contractor to complete 10,000 metresof drilling at KM. Drilling is primarily focusedon lateral and shallow extents to themineralized hydrothermal breccias intersectedand identified by Voyager.34 | ASIA Miner | May/June 2012

MongoliaAltan Rio starts Khavchuu drillingALTAN Rio Minerals has started drilling at the Khavchuu gold prospectin northern Mongolia. The company has an option to acquir e 100%ownership of the project which hosts multiple gold targets and is undertakinga six hole, 1800 metre drill program.Anomalies identified on an IP chargeability map of Altan Rio’s Chandman-Yol project.Khavchuu is near infrastructur e and 8km away fr om CenterraGold’s Boroo mine and mill complex. The pr oject has never beendrilled and Altan Rio is keen to see the first holes into this pr ojectwith Boroo mine-style geology.Altan Rio’s director of exploration Kelly Cluer is experienced in the region,having worked previously as exploration manager for Centerra.He believes that Altan Rio’s geochemical surveys and the geologicalsetting show it as prospective for a ‘Boroo-style orogenic lode gold system’.The company has taken more than 1200 samples on the projectand used them to focus in on the better results of the IP survey to identifyand prioritize drill targets.Khavchuu is the Canadian-based company’s second exploration projectin Mongolia with the primary focus being the Chandman-Yol Copper-GoldProject in the Altai mountain range near Khovd in the country’swest. The company has spent Can$6 million in the past four years atthis project, including geophysics, geochemistry and IP surveys, whichresulted in the identification of seven targets. To date, drilling has focusedat the KY porphyry.The most recent 13-hole, 7800 metre program found strong molybdenumanomalies of up to 100ppm in the north-wester n sector,high-grade gold of up to 28 grams/tonne in the north-eastern sectorand unusually high silver of up 100+ grams/tonne, lead at10,000+ppm) and zinc at 10,000+ppm grades in the southeast. Elevatedcopper occurs throughout the 2km-diameter porphyry intrusivesystem with sporadic drill intersections of more than 1% copper.36 | ASIA Miner | May/June 2012

MongoliaKincora acquires licences adjoining Bronze FoxKINCORA Copper has r eached an agr eementwith Canadian merchant bank Forbes& Manhattan and closely held private companyTemujin Mining Corp to acquire GoldenGrouse LLC, an indirect subsidiary of Temujin.Golden Grouse is a Mongolian companythat holds mineral two exploration licencesadjoining Kincora’s Bronze Fox project.Temujin, a portfolio company of Aber deenInternational, an investment corporation anda member of the Forbes & Manhattan Groupof Companies, will be issued 20 million sharesin Kincora, which r epresents a 12.6%equity stake in the combined entity on completionof the transaction. Upon the discoveryof a minimum of 1 million ounces of inferr edgold resources or gold equivalent in the propertiesacquired within four years of closingof the transaction, Kincora shall issue a further15 million shar es to Temujin. Kincoraplans to spend Can$2 million on the explorationof the properties over the next 2 years.Golden Grouse properties include TourmalineHills and North Fox which were previouslyowned and subject to preliminary explorationby Ivanhoe Mines. Exploration by Ivanhoeand since by Golden Grouse has identified acopper zone extending fr om Kincora’sBronze Fox licence with drilling and soil samplingidentifying a number of primary gold targetsat Tourmaline and Southwest Target.Kincora’s president and CEO Igor Kovar -sky says, “The acquisition of the pr opertiesis a great addition to the Bronze Fox project.We now hold two of Ivanhoe’ s former highpriority target pr operties in Mongolia, theBronze Fox and T ourmaline Hills. Kincoranow holds one of the largest land holdingsalong the highly prospective copper belt hostingOyu Tolgoi. “Tourmaline Hills is a midstageexploration licence with a number ofsignificant gold targets. This places Kincorain a strong position to identify a significantcopper-gold and gold deposit this year.”Bronze Fox and T ourmaline Hills ar e insoutheast Mongolia within the Oyu T olgoicopper belt. Extensive exploration has r e-vealed a significant footprint with extensivecopper and gold mineralization. The licencesare 120km northeast of the world-class OyuTolgoi copper gold project and 250km fromthe Chinese bor der. The latest drilling atBronze Fox has indicated further evidenceof copper and/or gold mineralization.Geochemistry of the two newly acquired exploration licencesto the north and west of Kincora’s Bronze Fox project.May/June 2012 | ASIA Miner | 37

IndonesiaMartabe production scheduled for JulyG-RESOURCES Group has reached a numberof key milestones ahead of first commercialgold production at its Martabe Gold-SilverProject in North Sumatra. The pr oject is ontrack to start production in July this year.The high voltage switch-yard was energizedon March 25 and then power transmittedinto the central process plant switch-room.Both the ore grinding mills were mechanicallyinstalled by the end of February while constructionof the two main water managementG-Resources’ Martabe project is on track for first commercial gold production in July.sedimentation dams was also completed bythe end of February.At the process plant, the concrete placementhas been completed while steel er ectionwas more than 80% complete by the endof March. G-Resources’ chief executive officerPeter Albert says, “Pr ogress continuesto push ahead steadily and aggr essively atMartabe as we get closer to starting productionin a few short months.”A detailed review of the Martabe schedulelate last year determined that pr essure froma number of ar eas, including exceptionallyhigh December rainfall which slowed downtailings storage facility construction, and adelay in the delivery of electrical switchrooms, conveyors and some other fabricatedsteel items from domestic and offshore sources,led to a delayed target date for first gold.“G-Resources is determined to maintain theexcellent safety record established at Martabeand will not expedite anything that riskssafety standard nor compromises the qualityof our mine and plant,” Peter Albert says.Martabe is the company’ s core starterasset. It has a r esource base of 7.86 millionounces of gold and 73.48 million ounces ofsilver. G-Resources plans to begin productionat an annual rate of 250,000 ounces of goldand 2-3 million ounces of silver.Mining at the Purnama pit has advanced tothe stage of operating on two shifts, and bythe end of March more than 100,000 tonnesof ore at a grade of 2.3 grams/tonne gold hadbeen stockpiled. Advance drilling on the or ebody has to date confirmed and in somecases bettered the ore body resource model.Peter Albert says, “Advance drilling on themain Purnama ore body is encouraging, givingincreasing confidence in our r esourcesand reserves as well as in our ability to rapidlycommission and deliver.”Antam to raise gold output 16%STATE-OWNED mining company PT AnekaTambang (Antam) expects to raise productionfrom its gold mining operations by 16% to3100kg this year from 2667kg in 2011. ThePongkor mine in W est Java is expected tocontribute 2000kg, up from 1987kg in 2011,and the Cibaliung mine in Banten 1100kg, upfrom last year’s 680kg.Despite a slight drop in production in 2011due to lower grade gold produced at the twomines, the company boosted sales by 22%to 8009kg. It is targeting combined sales of7000kg of gold this year, which includes thirdparty refining at its Logam Mulia pr eciousmetal refinery in Jakarta.Antam’s gold pr oduction decreased 4%compared to 2010 and as both Pongkor andCibaliung are underground mines, the gradesof the gold ores are beyond the company’scontrol. The gold figures contributed toa 14.5% incr ease in Antam’s net pr ofit in2011 with higher sales of ferronickel and nikkelore also contributing. 2011 was a recordyear for Antam’s ferronickel production andsales. As Antam’s ferronickel smelters operatedat optimal levels in 2011, ferr onickelproduction in 2011 rose 5% over 2010. Demandfor nickel ore also remained robust in2011, resulting in higher nickel or e productionof 13% compared to 2010.Antam’s main gold and silver production issourced from its gold mine at Pongkor, WestJava. Indications of gold deposits at Pongkorwere discovered by Antam’s Geology Unit in1981 and production started in May 1994.Pongkor has three primary veins of gold -Ciguha, Kubang Cicau and Ciurug. A conventionalcut and fill stoping mining methodis used for the first two of these veins. A mechanizedcut and fill method, with hydraulicjumbo drill and load haul dump, was introducedin 2000 for the third vein. The use of mechanizedcut and fill is intended not only toassist in meeting the incr eased productiontargets but also to lower overall pr oductioncosts and to improve efficiency.Antam expects mine life of Pongkor until2019 with current gold reserves and resourcesamount to 1.3 million ounce. The gold ore goesthrough various processes at Pongkor’s facilitywhich include crushing, milling, cyanidation,carbon leaching and stripping, electro winningto melting and casting to produce bullion/dore.The Cibaliung gold mine is operated byAntam subsidiary PT Cibaliung Sumber -daya, which was acquired from Arc ExplorationAustralia in 2009.38 | ASIA Miner | May/June 2012

IndonesiaTembang environmental permitting approvedTHE critical environmental permitting (AMDAL)for Sumatra Copper & Gold’s Tembang Gold-Silver Project in central Sumatra is complete.AMDAL is an extremely important element ofthe project’s permitting and feasibility studies.The local authority, the Regency of MusiRawas in the pr ovince of South Sumatra,granted AMDAL permitting, approving theenvironmental management plan/RKL andenvironmental impact assessment/RPL(EIS) for both stages of the T embang project.This was expected to be followed byapproval of the conversion of the IUP fr omexploration to exploitation.Sumatra’s managing director Julian Fordsaid the approval of AMDAL permitting wasa significant milestone for the pr oject’s development,which is targeted for productionin 2013. “The company will now progress tofull project permitting thr oughout 2012,which will include forestry, manpower andoperational permits.”Tembang has a JORC-compliant resourceof 976,000 ounces of gold and 12.8 millionounces of silver. The stage 1 production planis for a low-cost, high-grade operation, annuallytargeting 200,000-400,000 tonnes.The company continues to receive significantresults from geotechnical drilling at the Belinaudeposit within the Tembang project. Julian Fordsays that the r esults continue to outline thehigh-grade nature and exploration potential ofthe Belinau vein system, which is a key componentof the stage 1 development plan.Highlights include 4.9 metr es @ 21.25grams/tonne gold and 28.6 grams/tonne silverfrom the northern shoot, 1.3 metr es @ 9.69grams/tonne gold and 88.5 grams/tonne silver;and 2.0 metres @ 5.59 grams/tonne gold and7.9 grams/tonne silver.The results were from the remaining threegeotechnical holes drilled during the third quarterof 2011 as part of the r ecently concludedpre-feasibility study (PFS), which indicated thatBelinau is a robust and profitable project. Theresults will improve the overall resource.Julian Ford says, “The company will resumeextension and infill drilling of the T embangprospects once it is in a position to fund thisexploration from cash flow. The company alreadyhas an extensive resource base and willbe looking to leverage of f this asset in thecurrent attractive gold market. It is encouragingthat all the geotechnical drill holes intersectedsignificant mineralization.”The PFS delivered a positive outcome forstage 1, which just involves the Belinau deposit.The remaining resource base will be developedduring stage 2 of T embang. “The PFSdemonstrated the robust project economicsof Belinau as a standalone mine, however weare confident that we will be able to further improveBelinau’s economics through additionalopen pit tonnage from satellite deposits andoptimization studies,” Julian Ford says.The current JORC-compliant resource forBelinau consists of total measured, indicatedand inferred resources of 127,000 ounces ofgold and 1.13 million ounces of silver.First step towards Gunung Rosa acquisitionPARAMOUNT Mining Corporation’ s 85%-owned Indonesian subsidiary, PT Paramindo,has finalized acquisition of an initial 10% interestin the Gunung Rosa Gold Project in WestJava. The company is focused on rapid developmentof the project, which compares favourablyto Kingsrose Mining’s Way Linggo Projectin South Sumatra, which had a starting baseof less than 200,000 ounces of gold resources.The 2475 hectare Gunung Rosa project is125km southeast of Jakarta, in W est JavaProvince. It is accessible by sealed road andserviced by State grid electricity.Paramindo acquired the initial inter est bypaying PT Cikondang Kancana Prima US$1million in staged payments since it enter edthe agreement in early August last year.Paramount’s chief executive of ficer TerryHolohan says the 10% marks the first step ofthe agreed 85% purchase of the project andParamount’s Gunung Rosa project is along the same arc as other significant Indonesian gold projects.has triggered the re-development of the existingmine using more efficient mining practiceswith moder n metallurgical pr ocesses.“The engineers and geologists can now focuson delineation of the or e body, metallurgicaltestwork and the design of both a trial miningas well as a full scale mining operation.”Early trial mining will extract mineralized wallrock left behind by poor early mining practicesin the upper levels while, in parallel, newunmined high grade areas below will be developedfor full production.Gunung Rosa has an historical JORC r e-source of 799,348 tonnes @ 13.96 grams pertonne gold and 3.38% zinc for 358,832 ouncesof contained gold and 26,998 tonnes ofzinc. It also contains proven and probable reservesof 400,000 tonnes @ 11.4 grams/tonnegold and 3.03% zinc for 146,690 ounces ofcontained gold and 12,130 tonnes of zinc.A new drilling program has confirmed the extensionof mineralization to 200-250 metr esfrom surface, with the mineralization remainingopen at depth. An earlier 13-hole due diligencedrilling program intersected a broad width of18.3 metres @ 3.57 grams/tonne gold, 4.22grams/tonne silver and 0.4% copper.40 | ASIA Miner | May/June 2012

Body TextCompany ProfileIndonesiaHeaderSatNetCom technology for Indonesia’s mining boomWITH Indonesia’s mining sectorexploding, many companies areturning to technology as a way toincrease productivity and improvemanagement tools. With newmines opening and existing minesexpanding, SatNetCom is deliveringthe technology solutions thatcan provide highly sought aftersavings and productivity increases.SatNetCom’s president directorKen Grant says dozens of newmines are opening while existingmines are greatly increasing production.Some large mines are targetingup to a 75% increase inproduction this year. It is like a‘coal rush’ and companies areseeking to gain the edge overcompetitors with technology oneof the best ways to achieve this.“Indonesia has huge fleets comparedto Australia or America –with 200, 250 or 400 truckssometimes. On one hand thismeans more managementheadaches, but it also meansmore opportunities for savings andproductivity increases. Our job isto deliver technology solutions thatdeliver savings and productivity improvements,and we have neverbeen busier,” he says.SatNetCom is a nine-year-oldprovider of technology solutionsand has become one of Indonesia’sleading information technologyand communicationscompanies, and the largest in themining sector. It provides a widerange of services and products tomines, mining contractors; oil companiesand oil contractors; andgeneral businesses of all types.The company’s main office andNetwork Operations Centre(NOC) are in Balikpapan, EastKalimantan, and it has network facilitiesin Jakarta and Sangatta. TheNOC monitors and controls thecompany’s microwave, fibre opticand satellite networks. It houses therouters, switches, bandwidth managers,and proxy, data name,email, web servers that handle allof the network traffic, and operates24 hours a day, 7 days a week.SatNetCom is exclusive Indonesiadistributor for Leica GeoSystemsmining. Among the minemanagement solutions it providesis Leica Jigsaw Jsoftware, which ispart of Leica’s Jfleet Fleet ManagementSystem. Jigsaw Jsoftwareproduces production and managementinformation, and doesautomatic fleet dispatching tomaximize fleet efficiency. Leicahas several productivity and managementproducts in the miningspace including high precisiondrill, dozer and shovel guidancesystems. Ken Grant says Leica isa very important partner. “Theyhave the most advanced minemanagement systems in the marketand we are proud to representthem in Indonesia. They havesome exciting new products comingout and we can’t wait to introducethem into the market.”SatNetCom also services miningwith special pit-to-port longhaul traffic management systems,which are more in demand nowas hauling distances get longer.Ken Grant says, “They are buildingmines deep in the interior –some with 200km haul roads. Inorder to cut cost, parts of theseroads are one-way – so a trafficmanagement system is vital. Buteven for a normal two-way roadwe can help maximize efficiencyand management.” SatNetComalso has equipment performancemonitoring solutions and communicationssolutions, includingsatellite connections, two-way radiosand microwave links.The company offers safety systems,including SAFEmine anti-collisionand SmartCap fatiguemonitoring, and can provideCCTV and access control systems.The fatigue monitoring system isbuilt into a normal looking baseballcap and monitor’s the driver’sbrain waves. Ken Grant says,“We are a one-stop-shop for miningtechnology. We are industryfocused, not product focused, andwe are the largest provider of onlinehauler and equipment solutions.We are not only a systemsintegrator but also develop ourown hardware and software solutions.We are experts at ‘onboard’ mining applications. Wecan customize hardware, softwareand communications solutions tomeet customer’s individual needs.”“Sometimes I stop in amazementabout some of the things we dotoday - that with Leica’s JFleet systema manager can sit in theJakarta head office and watchreal-time production figures beingfed from the site, truck load bytruck load. Or a guy can get analert of a potentially faulty engineon a truck running around a pit inSouth Kalimantan and diagnosisthe problem remotely.”SatNetCom has grown with Indonesia’smining industry and lastyear revenue and staff numbersgrew 65%, with similar growth expectedin 2012. There are nowmore than 200 people in the companywith about 150 of these onvarious Indonesian mine sites. Thecompany is also looking furtherafield and will undertake its firstoverseas job in the Philippines thisyear. It is also investigating opportunitiesin other countries.Being a technology company,SatNetCom’s survival dependsupon bringing new technologiesto market. “Sometimes we adapttechnologies in other fields tomining applications,” Ken Grantsays. “Our motto is that ‘we advancetechnologically, or we perish’and there is no compromise.You cannot stand still in a businesslike this.”He says service is a vital componentof the company’s operations.“We build a relationship overtime. When a mine is in the explorationstage we provide satphones, then when they start buildinginfrastructure, a satellite communicationsystem, then two-wayradios and subsequently microwavenetworks, fuel managementsystems, tracking systems,fleet management systems, etc.“One of our strong points is thatwe have more than 150 engineerson the ground at mines installingand maintaining ourproducts. No other company inIndonesia has our breadth anddepth of capabilities. We havesystems running on more than3000 trucks, we have vast experiencein communications technologies,and have our ownhardware and software developmentgroups. This means we notonly deploy unique systems thatmeet the needs of the marketplace,but also develop customizedsolutions for customers.“We are not just a systems integratorbut also a product developerand we have a saying that‘we can do anything’ … and wecan,” Ken Grant adds.May/June 2012 | ASIA Miner | 41

IndonesiaArchipelago seeks to boost Toka Tindung resourcesONLY 12 months after pouring first gold atthe Toka Tindung mine, Archipelago Resourcesis seeking new pr ospects and is continuingexploration at and ar ound the mine innorthern Sulawesi. After producing more than60,000 ounces in 2011, the company is keento increase annual Toka Tindung productionand make more efficient use of the crusher,which is running at about 60% capacity.With current resources and the curr entoperating schedule, Archipelago expects theproject to annually produce around 160,000ounces of gold equivalent for the next sixyears at a grade of at least 2.89 grams/tonne.The company’s chief executive officer MarcusEngelbrecht says with the potential to increasereserves and r esources annualproduction could probably be increased tobetween 200,000 and 250,000 ounces, andArchipelago will continue exploration in 2012to find as much minable ore as possible.Increasing output is one part of the overallstrategy for the future, but the CEO says themain aim is to achieve steady month-by-monthproduction. Since first gold last April, operationshave been ramped up smoothly and for thenine months up to December 31, the companyproduced more than 61,000 ounces of goldequivalent at a cash cost of US$579 per ounce.This year, the company hopes to pr oducebetween 135,000 and 145,000 ounces at acash cost of between US$540 and US$590per ounce. Ore is mined from three open pitsat Toka Tindung and Archipelago says it is alreadyachieving above plan gold r ecoveriesof 94%. Exploration is being pursued to expandthe asset base, along with the company’splan to examine opportunities to furthergrow in the region via mergers and acquisitions.With this in mind, it is looking at opportunitiesin South East Asia and Australasia.Marcus Engelbrecht says these will be assetsalready in production or near production.Last year Archipelago spent US$9 millionand added 900,000 ounces to the T okaTindung resource and 500,000 to the r e-serve. The company is confident it cancontinue in this vein, especially since TokaTindung has five open pits in its mine planfrom which it can exploit ore.The sky appears to be the limit at Archipelago’s TokaTindung project in Sulawesi.May/June 2012 | ASIA Miner | 43

PhilippinesResource and mine life increased at TaysanChecking core from Crazy Horse Resources’ Taysan Copper-Gold Project on Luzon Island.MEASURED and indicated r esources atCrazy Horse Resour ces’ Taysan Copper-Gold Project have increased to from 411 millionto 459 million tonnes while a r evised pitoptimization has increased mine life from 15to 24 years. The new estimate has seen containedcopper increase by 7%, gold by 15%,silver by 1% and magnetite by 11%.A pre-feasibility study was due to be completedduring April and with 302 drill holesfor 82,594 metres of core drilling, the Taysanproject has been sufficiently drilled fordefining a bankable feasibility study basedon the planned mining operation of an annual15 million tonnes. The revised resourcestatement was prepared by Mining Associatesand shows a measured resource of 156million tonnes at an average grade of 0.31%for 1077 million pounds of contained copperand an indicated resource of 303 milliontonnes at an average copper grade of0.23% for 1502 million pounds of containedcopper. The combined measured and indicatedresources also show 1.46 million ouncesof gold, 12.34 million ounces of silverand 14.89 million tonnes of magnetite.Taysan also has an inferred resource of 509million tonnes at an average copper grade of0.18% for 2065 million pounds of containedcopper, 1.24 million ounces of gold, 7.81 millionounces of silver and 13.59 million tonnesof magnetite. Crazy Horse’ s chairman andCEO Mitch Alland says, “W e are excitedabout the resource estimate, as the near-surface,high-grade zones of measur ed resource,together with the major incr ease inmagnetite recovery prospects announced recentlyfurther strengthen the project.“In addition, a revised pit optimization has increasedthe mine life to 24 years, with possibilityof a further increase to more than 40 yearson the basis of the extensive inferred resource.The increase in mine life will be attractive to thelocal community in terms of continuing futur eemployment and by potential trade buyers orjoint venture partners.“Once the pre-feasibility study is issued, thecompany will embark on an aggr essive campaignto pursue a trade sale or joint ventur ewith a view to maximizing the return,” he adds.Repairs and upgrades to impact Co-O productionREPAIRS to four leach tanks and upgrades toelectrical systems are expected to result in aloss of production during the current quarter atMedusa Mining’s Co-O Gold Project in northeastMindanao. The four leach tanks were takenoff-line due to subsidence of their footingswhile the electrical upgrades are being undertakenat the new expanded mill and mine.The subsidence is partly due to tremors triggeredby the magnitude 6.9 earthquake centrednear eastern Negros Island on February 6in which more than 100 people lost their lives,in combination with saturated ground conditionsdue to incessant rain since December2011. Four large leach tanks constructed in thelast two years were taken off-line due to subsidence,which has caused the tanks to tilt.It had initially been planned to r ectify thisissue in late June, upon completion of a newlarge leach tank currently under construction,however following routine inspection, it wasevident that the tilting problem had worsenedand in the interest of operational safety, thecompany decided to immediately take thetanks off-line until they have been r epaired.Remedial work on the tanks.Following consultant’s inspections and receiptof their recommendations for electricalupgrades for the new expanded mill and mine,and due to the advised early arrival of majornew switch boards and transformers duringthe June 2012 quarter, the company has decidedthat these components will be installedon arrival to incr ease the safety standar ds,operational efficiencies and the quality ofpower delivered to the operations.It is expected that between 10 and 14 daysof production will be lost in the June 2012quarter while the electrical upgrades are undertaken.The shutdown of the four tanks willlimit the daily throughput to about 700 tonnesfor the quarter, and in combination with theelectrical upgrades, the pr oduction for the2012 financial year has been r evised to60,000 to 65,000 ounces, down from 75,000ounces. All expansion work, including theSaga Shaft, underground development andnew mill construction, is on schedule.44 | ASIA Miner | May/June 2012

Papau New GuineaPapua New Guinea - the momentum is maintainedBy Magnus Ericsson, of Raw Materials GroupTHERE could be few more telling images of the momentum now behindmineral exploration and development in Papua New Guinea than thesight of the 650 delegates who attended the ‘Mining Sector – Buildinga Nation’ seminar last November in Port Mor esby. Organized by thePNG Chamber of Mines and Petroleum, the seminar included presentationsfrom 30 of the companies currently active in the country.Keynote speeches from the country’s Prime Minister, Minister for Miningand Chamber president set the tone for the meeting. “Papua NewGuinea’s mining and petroleum sector has been the most aggr essivedriver of our nation’s good economic fortunes for almost a decade,” saidPrime Minister Peter O’Neill. “Our government acknowledges the sector’scontribution to stabilizing and growing our economy since the economicmeltdown of the 1990s.“There is no immediate desire on the part of government to reviewexisting mining and petroleum legislative and fiscal frameworks,”he stated, while giving the commitment: “Let me reassure you thatour government is committed to fast-tracking and facilitating pr o-cesses that will enable start-up of new ventures awaiting regulatoryclearance and licence approvals.”Porgera is one of PNG’s world-class projects. Photo Rocky RoeBefore updating delegates on the revision process for the country’smining legislation, Minister for Mining Byr on Chan providedsome information on the current position regarding mining and explorationlicences. “According to the recent updated mapping dataproduced by the Mineral Resources Authority (MRA),” he said, “todate over 80% of the PNG landmass is taken up by mining and explorationlicence as a result of launching the geophysical and geochemicalsurvey datasets during 2010.”The revision process includes speeding up the tenements administrationwith an online application process being introduced andother simplifications in the types of licences and their terms of validity.The government is also considering a possibility for it to takea stake of up to 30% in any mining development in PNG. Socialmapping and landowner identification will be required by law for allprojects as will community awareness programs and consultations.The Minister went on to discuss many more details in the proposedrevision of the mining legislation.The benefits of increased exploration are quickly feeding throughinto the wider community , according to chamber pr esident IlaTemu. Between 2005 and 2010, royalty payments from the miningindustry totalled nearly PGK820 million (US$385 million), with theamount growing each year, he said, while adding that dir ect employmentin the mining and petroleum industries had grown to over30,000. Exploration gives other job opportunities to communities,with growing demand for the whole range of logistic and technicalinput supporting a thriving service sector.ContextPNG became an independent nation in 1975 after Australia hastily leftthe country to gover n itself. It has a population of 7 million occupyingan area of 463,000sqkm. There are more than 700 languages spokenon the mainland and the many inhabited islands in the Pacific. The geographyis extremely challenging with steep mountains and wild rivers.Infrastructure is sparse and it is not possible to drive by car acr oss thecountry. Travelling within PNG most often means taking a domestic flight.In spite of the poor starting point PNG has succeeded in building ademocratic society with elections held r egularly and r esulting inpeaceful changes of government. Sir Michael Somare, who was thefirst Prime Minister after independence and was r e-elected in 2002,was replaced in 2011 by Peter O’Neill.PNG is the largest economy in the Pacific. It is built on mining and minerals,and the country has benefitted greatly from the commodity boomin recent years. The sector is driven not only by metal mining but pr e-sently the most important project is the US$15 billion Exxon-Mobil ledPNG LNG project. On the back of this giant investment and other smallermining projects, the construction sector is booming. Other importantsectors of the economy ar e timber, palm oil and agricultural pr oductssuch as coffee and cocoa. Australia is the most important trading partnerbut China is increasing its share of both imports and exports fast.GDP grew 5.5% in real terms in 2009, followed by 7.1% in 2010and for 2011 it is projected that growth could reach low double digitlevels. The economy of PNG is not at all linked to the global debtcrisis, at least not so far. Exports and government earnings are heavilydependent on the mineral industries: In 2011 up to the 3r dquarter, export income from the mineral sector reached PGK7444or 59% of total exports. The growth in export income in 2011 overthe same period in 2010 was ar ound 8%. In the same period of2010 export income accounted for 63% of total exports.MiningModern mining started in the 1930s with the Bulolo gold dr edgingoperations. The rugged terrain and lack of infrastructure made theseearly endeavours the first fly-in fly-out operations in the world. Cur -rently there are three world-class mines in PNG - Ok Tedi copper, Lihirand Porgera gold mines. Several projects are under development, inparticular the Ramu nickel operations. Many of the world’s leading miningcompanies such as Barrick, Newcrest, Xstrata, Harmony and othersare operating in PNG. Government is a major participant in themining industry, holding minority stakes, through several vehicles, aswell as majority positions in other companies.Small-scale and artisanal mining plays an important r ole in PNG.46 | ASIA Miner | May/June 2012

Papau New GuineaMRA has recently published production figures for 2011 for gold of3.2 tonnes and 1.12 tonnes of silver.Mining’s transitory stage continued in 2011. Hidden Valley is still theonly new mine but the additional production from this mine may notfully compensate for the reduction caused by Ok Tedi’s planned declineand production problems experienced at Lihir and Porgera in2011. Total gold production fell to an estimated 60 tonnes meaningPNG will most probably not remain the world’s 11th largest gold producerwith both Argentina and Mexico likely to move above PNG. TheRamu nickel project has experienced continued delays and is expectedto come on stream in 2012 despite good progress in 2011.Mining-sector development acceleratesWith so much activity on exploration pr ojects throughout PNG inthe past three or four years, it is hardly surprising that an increasingnumber have reached feasibility-study stage. Add to that the continuedstrength in commodity markets, and companies are makingsure that study parameters reflect current, rather than overly conservative,market conditions.As an example, in November 2011 Xstrata Copper and Highlands Pacificannounced a delay in completion of the feasibility study on theirFrieda River project to give them time to access alternative power-supplyoptions. In December, the PNG government was reported to have giventhe go-ahead for a natural gas-fired power plant that could supply bothFrieda River and the existing Ok T edi mine, thereby providing a lowercostand quicker alternative to developing a new hydro-electric powersource. The delay means the study is now scheduled for pr esentationat the end of 2012, building on the October 2010 pre-feasibility report,which indicated the viability of a 20-year open-pit operation annually producing190,000 tonnes of copper and 280,000 ounces of gold.Meanwhile, the Morobe Mining joint venture between Harmony Goldand Newcrest has a pre-feasibility study on Wafi-Golpu scheduled forcompletion in mid-year, with early designs outlining a large-scale blockcavingoperation. Resources at Wafi-Golpu are estimated at more than9 million tonnes of copper and 26.6 million ounces of gold. And at Yandera,Marengo Mining is finalizing its feasibility study for the copper-molybdenum-goldporphyry project with technical support fr om ChinaNonferrous, and the PNG state company, Petromin, having agreed totake a 30% investment stake.Earning-in in earnestIn late 2011, Frontier Resources and Ok Tedi Mining began drilling ontheir joint-venture gold project at Bulago in the Highlands, and at Esis,part of Frontier’s Likuruanga gold-copper project in east New BritainIsland. Drilling at a third prospect where Ok Tedi Mining is earning a holding,Leonard Schultz in West Sepik province, was also scheduled.Meanwhile, in January Barrick Gold completed its US$20 million expenditurecommitment to earn a 72% interest in Coppermoly’s Simuku,Nakru and Talelumas copper-gold prospects on New Britain. The twocompanies have formed a joint venture to continue evaluation of theseproperties, where current estimates suggest that Simuku has a 200million tonne inferred resource containing some 700,000 tonne of copper.Coppermoly reported that drilling had identified mor e than 1000metres depth of copper mineralization ther e, while a hole at the Misiliprospect returned nearly 400 metres of copper mineralization, plus showingsof molybdenum and silver.May/June 2012 | ASIA Miner | 47

Papau New GuineaIn July 2011, Goldminex Resources began a farm-in agreement withBrazil’s Vale, through which Vale can earn a 51% stake in six pr o-spects under a US$20 million, four-year exploration commitment. Theinitial focus for the JV is on Goldminex’ s Liamu and Ubei porphyrycopper-gold prospects in the Owen Stanley Ranges. Goldminex isalso continuing with its own nickel exploration in the area and is lookingfor funding support for work on its Awari and Karawai gold prospectsin the Sepik highlands.It’s not just the majors that are successfully earning-in on good prospects.Papuan Precious Metals reports that it has completed itscommitments to obtain a 50% holding in Petr omin’s Waria River licencearea in the Owen Stanley Ranges, with sampling having identifiedcopper, gold and silver potential.A section of the processing facilities at Basamuk Bay for the Ramu Nickel Project.Key logistics linksOne of the aspects of major mineral exploration regions often overlookedis the pr ovision of transport and logistics infrastructur e. In the1930s, the Bulolo goldfields wer e supplied largely by air, an achievementcommemorated on New Guinea’s 1935 airmail stamps. While alack of demand led to the airport at Bulolo being closed in the 1990s,the more recent upsurge in exploration and mining activity resulted in itbeing re-commissioned in 2009.It’s not only airports in PNG that have benefited from the minerals explorationboom. The number of flights from Cairns and Brisbane has increasedsignificantly over the past two years, according to Queenslandgovernment figures released in late 2011, with some 50 flights a weeknow scheduled to Port Moresby and other centres in PNG.Positive island explorationWhile there is a strong focus on finding out more about Papua’s mineralwealth, the islands that make up the rest of PNG are also receivingextensive exploration coverage. The endowment already evidentthrough successful mines such as Lihir, Misima and Simberi has providedthe spur for a succession of companies to explore, and in somecases revisit, prospects throughout New Britain, New Ir eland, theTabar Islands and beyond.On Woodlark Island Kula Gold has a gold r esource estimated at685,000 ounces that is forming the basis for a feasibility study. Recentstep-out drilling from the company’s established Kulumadau West resourcehas indicated additional potential.Fergusson Island is also receiving exploration attention, with VangoldResources targeting a number of pr ospects in two separate ar eas,while Gold Anomaly is updating a 2004 pre-feasibility study on the Gametaand Wapolu deposits on the island’s north coast. Elsewhere inthe d’Entrecasteaux Group, PNG Gold Corp spent 2011 continuing itsevaluation at Imwauna and Sehulea on Normanby Island, with an optionto acquire New Guinea Gold’s 50% stake in the properties, and a prefeasibilitystudy scheduled for completion in May.Off shore developmentRecovering minerals from the sea has long had a vague but elusive attraction.After all, the science of hydrometallurgy is based on the chemistryof recovering metals from solution, and it is well-known that the seacontains huge tonnages of dissolved metals. In reality, however, with theexception of near-shore diamonds and construction aggregates, the economicshave never panned out. T oday, the chances to succeed haveskyrocketed, with the targets now being sea-floor massive sulphide(SMS) mineralization and sub-sea epithermal vein systems, both of whichoffer the prospect of mineral recovery at much lower waste-to-ore ratiosthan could ever be achieved in conventional land-based mining.SMS deposits are widely recognized as being the for erunner of theconventional volcanogenic massive sulphide (VMS) resources that hosta significant proportion of today’s base- and precious-metal production.The principal difference is that SMS deposits are covered by at most afew metres of overburden in the form of unconsolidated seafloor sediments,with the prospect of strongly mineralized ‘chimneys’ standingproud on the sea bed. Nautilus Minerals and its partners are spearheadingefforts involved in evaluating the SMS potential of the Bismarck Sea.The high-grade Solwara 1 copper -gold deposit is Nautilus’ primetarget. It was granted the world’s first deep sea mining lease on January17, 2011 for development of the pr oject in the Bismarck Sea.In November 2011 Nautilus published a new NI43-101-compliant resourceestimate for part of the Solwara 1 area, measuring 1300 metresby 200 metr es. This gave an incr ease of the total indicatedmineral resource by 18% to 1.03 million tonnes and the inferr ed resourceto 1.5 million tonnes from 1.3 million. Grades have also increasedpartly due to the cut-off grade being lowered to 2.6 from 4% inthe 2008 estimates. Solwara 1 now contains 7.2% copper , 5.0grams/tonne gold, 23 grams/tonne silver and 0.4% zinc in the indicatedcategory and an inferr ed mineral resource at 7.81% copper,6.4 grams/tonne gold, 34 grams/tonne silver and 0.9% zinc, also ata cut-off of 2.6%. In addition Nautilus released data on a new depositSolwara 12, 25km northwest of Solwara 1, with an inferred resourceof 230,000 tonnes @ 7.3% copper and 3.6 grams/tonne gold.The lease covers an area of about 59sqkm surrounding Solwara 1,50km north of Rabaul, wher e Nautilus intends to mine high-gradecopper and gold deposits on the seafloor at depths of about 1600metres. The mining lease has been granted for an initial 20 years andthe PNG Government has retained an option to take up to a 30%stake in Solwara 1 as a JV partner.Nautilus will now press ahead to conclude its strategic partneringdiscussions and continue the development of Solwara 1. When it beginsproduction, which is expected about 2.5 years after full pr ojectsanction, Nautilus plans to produce ore at an annual rate of more than1.3 million tonnes, containing about 80,000 tonnes of copper and150,000-200,000 ounces of gold.Nautilus has designed a technical system for the mining operations.Seafloor cutting is proposed to be undertaken by two large r oboticmachines that would excavate material from the seafloor by a continuouscutting process, not unlike coal or other bulk continuous mining48 | ASIA Miner | May/June 2012

Papau New Guineamachines on land. The auxiliary miner is a pr eparatory machine thatdeals with rough terrain and creates benches for the other machinesto work. It will operate on tracks with spud assistance and has aboom mounted cutting head for flexibility. The second machine, thebulk miner, has higher cutting capacity but will be limited to workingbenches created by the auxiliary miner. Both machines would leavecut material on the seafloor for collection by the gathering machine,a large robotic vehicle that will collect the cut material by drawing it inas a seawater slurry through internal pumps.Daily production will be at a rate of up to 6000 tonnes and ore will betransported to surface by a riser and lifting system (RALS) includingsubsea pumps, riser pipe, riser-handling system and associated deckequipment. The mining package is supplemented by a specialist miningsupport vessel. On deck of the pr oduction support vessel, the slurrywill pass through a dewatering plant with dewatered material dischargedto a transportation barge moor ed alongside. Used seawater willbe pumped back to the seafloor thr ough the riser pipes and pr ovidethe hydraulic power to operate the RALS pump. Discharge of the returnwater at the seafloor would avoid impacts to the warm surface seawaters,minimizing environmental impact. The transportation barges willhaul material to a stockpile in the Port of Rabaul. Nautilus plans pr o-duction commencing at an annual rate of 1.2 million tonnes to be laterramped up to 1.8 million. It will take 30 months to complete constructionof vessels and robots, and to commence commercial production.OutlookThere is significant interest by foreign companies for exploration licences(EL) in PNG. By June 2011, a total of 135 companies held 271 tenements.These companies were from, among others, Australia, Canada,China, South Africa, Japan, Singapore, Switzerland, Papua New Guinea,Russia and USA. Gold remains the principal commodity of interest, withcopper, nickel, iron and seabed massive sulphide deposits also targeted.In the period up to the end of September 2011 147 new tenementswere applied for compared to 135 for the full year 2010. There are 331applications (new and renewals) under review by the MRA.The Mineral Resour ces Authority, the gover nment organizationhandling licences and geological information as well as investmentpromotion, has backed up the efforts that have been put in by bothdomestic and international companies. During 2011 large new datasets were released based on extensive new airborne geophysical surveys,geochemical stream samples and new geological mapping,done with support from the European Union’s Sysmin ongoing program.This program has now all but ended and only some minor activitiesremain. The Raw Materials Group of Sweden, which has beenresponsible for the investment promotional program, held its end ofproject seminar in November 2011 in Port Moresby.Although PNG has a history of mining that goes back to the late1800s, much of PNG’s mineral wealth remains to be discovered andwith the present improvements in the regulatory climate they are moreattractive than ever. There is no question that the deep sea depositsrepresent a valuable new resource. The challenge now is bring togetherall the various technical solutions needed to tur n this resource into acommercial operation. During 2011 the Government set up a SovereignWealth Fund with the underlying rationale being for the country to bettermanage the windfall revenue that will result from the LNG projects andother mineral projects. Papua New Guinea remains a frontier nation inmining with great potential in the next couple of years.May/June 2012 | ASIA Miner | 49

AustraliaMurchison production set to start in JuneConstruction work at Kentor Gold’s Murchison project in Western Australia.Edna May underground resource up 70%NEWLY-formed mid-tier gold producer EvolutionMining has reported a 70% increase in theunderground mineral resource at its Edna Maygold operation in Western Australia. The companysays the total indicated and inferr ed resourceof 1.2 million tonnes @ 7 grams/tonnehosts 270,000 ounces of contained gold.Evolution completed a successful drill programin 2011 with 19 diamond holes totalling10,303 metres resulting in the significant resourceupgrade and extension to the mineralizationat depth. The underground mineralresource has been defined to a depth of 550metres below the surface, with infill drilling todate prioritizing the upgrade of inferr ed resourcesclose to the existing decline beneaththe open pit operation.Two main areas of mineralization were identifiedby the drilling, including high gradequartz reef mineralization, which hosts an estimated490,000 tonnes @ 8.8 grams/tonnegold for 140,000 ounces of gold. Halo mineralizationwas also identified with an estimated720,000 tonnes @ 5.8 grams/tonne gold for130,000 ounces of gold.Evolution’s executive chairman Jake Kleinsays, “This is an encouraging addition to ourefforts to maximize the value of Edna May .Our focus at the operation over the next 12months remains improving the reliability andperformance of the plant, but undergr ounddevelopment represents an option for addingGOLD production is on schedule to commencein June at Kentor Gold’ s Murchisonproject in Western Australia, after the companyintersected high grade gold mineralizationin its latest drill pr ogram. Two diamonddrill holes within the Lewis pit shell have assayed5 metres @ 102.2 grams/tonne goldfrom 43 metr es and 17 metr es @ 9.6grams/tonne gold from 43 metres.The company’s managing director SimonMilroy says “These extraordinary drill resultssuggest that the Lewis pit may be of significantlyhigher grade than the current resourcemodel indicates, and there is the potential toachieve higher gold pr oduction and lowercost per ounce than we have currently scheduledfor the phase 1 operation.”The top 30 metres of the holes is yet to beassayed, as it is not part of the initial targetzone. Kentor says a RC drill pr ogram nowunder way will provide information regardingthe size of the high grade area.The 47.5sqkm Murchison project is about50km south of the town of Meekatharra andcomprises the Bur nakura gold and Gabaninthagold-copper sites. A first phase pr o-duction schedule will see 24,000 ounces ofgold produced annually from the Lewis andReward pits at Burnakura.While previous owners mined the Lewis pitto a depth of 20 metres, Kentor plans to extendthe depth to 50 metres to realize the potentialof mineralization within quartz veinstockwork that’s hosted by coarse grainedgranitic rock comprising quartz and potassicfeldspar. The site has an historic undergroundproduction of 50,637 ounces of gold, while216,254 ounces of gold were produced fromthe open pit until 1998 when the operationceased due to falling gold prices.Kentor has built a newly-r efurbished basecamp for up to 90 employees and purchasedan Indee heap leach plant. Simon Milroy saysbringing Murchison to production will helpKentor step up from its emerging status as amid-tier gold company. He says there is alsopotential for the neighbouring Gabanintha depositto provide additional gold pr oductionopportunities in the near future.Meanwhile, a scoping study has found thatKentor’s Jervois Copper-Silver-Gold Project inthe Northern Territory will be a r obust projectproducing strong financial returns. The studyexamined annual processing rates of 1.5 milliontonnes, 2 million tonnes and 2.5 million tonnes.The completed scoping study indicates lifeof-minecash operating costs range fr om$1.79/pound of payable copper at a 1.5 milliontonnes throughput to $1.61 at a 2.5 millionthroughput, after by-product credits. It showeda pre-production capital cost estimate of $230million, including $32 million of contingency for1.5 million tonnes through to $310 million for a$2.5 million tonnes throughput with open pitmining for the first thr ee years and under -ground mining for years 3 to 7.value to the long term future at Edna May.”The company is yet to commit to developingthe undergr ound opportunity, as itawaits the outcome of a number of initiativesto improve the plant performance and sustainablyincrease throughput. Evolution saysthese measures are expected to be establishedduring the next 12 months.Edna May has been mined since the 1950sand was closed for almost 20 years between1992 and 2009, when Catalpa Resour cesconstructed the processing plant.Evolution was established in late 2011through a merger of Catalpa Resources andConquest Mining. It owns and operates fourgold and silver mines.50 | ASIA Miner | May/June 2012

AustraliaGOLDEN Cross Resources has completedthree twin PQ & HQ core holes to confirm itsearlier reverse-circulation (RC) drill programresults at the Spur-Dalcoath deposit withinthe Cargo Gold Project in Central West NewSouth Wales. The company says the r esultsagain confirm the coher ent distribution ofgold mineralization and support the basis forthe pit optimization study.An RC drill program in February and Marchtested near-surface gold intersections fromprevious exploration at the Spur-Dalcoath depositof 17 metres @ 5.3 grams/tonne gold,2 metres @ 44 grams/tonne gold and 16 metres@ 3.86 grams/tonne gold.The Golden Cross drilling yielded a best intersectionof 9 metres @ 2.07 grams/tonnegold from 41 metres which occurs within abroad zone of mineralization. The companyhas now asked consultants to estimate a resourcefor in-house use, based on the 112holes from the Spur-Dalcoath lodes.The PQ & HQ holes have returned near-surfacegold intersections of 13 metr es @ 3.99grams/tonne gold and 26 metr es @ 1.87grams/tonne gold within broader zones of 55metres @ 1.27 grams/tonne gold and 67 metres@ 1.15 grams/tonne gold respectively. Selectedcore from this program will form the basisof metallurgical test work to determine gold recoveriesfrom a range of processing options.Golden Cross managing director Kim Stanton-Cooksays, “The results from the threecored twin holes versus the RC drill holeswere very satisfying with all showing r easonablecomparisons. It should be noted thatthe core holes yielded slightly better results.”Four large diameter PQ & HQ core holes werealso drilled at the Gum Flat deposit to pr ovidegeological data for planning follow-up drillingwhich is essential for later JORC-compliant resourcedefinition. Shell Metals drilled Gum Flatin 1985-87 with best r esults including 18 metres@ 1.48 grams/tonne gold and 13 metr es@ 2.41 grams/tonne gold. Golden Cross sayswhile the tenor of these historical intercepts wasconfirmed, overall cor e intercepts were of alower grade than the historical results.The Cargo goldfield is about 15km west ofthe Cadia-Ridgeway gold-copper pr ojectnear Orange and about 50km from the company’sflagship Copper Hill pr oject whichcontains 500,000 tonnes of copper and 1.35million ounces of gold.Cargo drilling supports basis for pit studyThe Cargo site has been mined intermittentlyfor almost 150 years. Pr evious explorers,including Billiton Australia and CyprusGold, drill tested numerous anomalous goldzones in the 1970s and 80s and defined potentiallypayable bodies of near-surface goldmineralization. Golden Cross carried out extensivedrilling in the 1990s.Initial pit optimizations, based on the CyprusGold and Golden Cr oss drill data andusing current gold prices, show clear potentialfor an economic resource to be defined.May/June 2012 | ASIA Miner | 51

AustraliaFirst Mako lode ore yields higher gold gradesTHE first parcel of gold-bearing or e from thehigh-grade Mako lode at Castlemaine Goldfields’cornerstone Ballarat gold mine has confirmedpositive pr ocessing results. The first6640 tonne load of ore yielded 7.7 grams/tonnegold, which is above expectations when comparedto grade control estimates.This ore has now been processed and convertedto gold bullion, pr oducing 1441 ouncesof gold. The company says this first or eparcel was taken in February from the mine’sMako lode, which is the focus for under -ground mine development.These results are above the JORC inferredresource block model which pr edicted thatthe area mined would yield 5075 tonnes atan estimated grade of 4.1 grams/tonne.Castlemaine also updated its JORC inferr edresource for the Mako lode in January to121,000 tonnes @ 10 grams/tonne gold for38,300 ounces.Initial grades from the Ballarat mine duringthe third quarter of 2011 were lower than expectedas mining was fr om smaller satellitelodes. The ore from these lodes was used forplant commissioning. However, the companysays there has been steady impr ovement ingrade since then, the pinnacle being the r e-sults from the Mako lode where the sharp increasein grade in evident.Castlemaine’s managing director MatthewGill says, “We commenced producing gold inSeptember last year, with the reaching of ourprimary target - the high grade Mako Lode –an important milestone for the company. Formore than 25 years this rich gold lode and itsnorthern exploration targets have been thefocus of mining attempts, and we ar e fortunateenough to now be there.“We will now progress to expand the numberof working headings in this lode, thusproviding the basis to demonstrate that economicgold pr oduction is indeed possiblefrom the highly prospective northern end ofthe Ballarat goldfield.”While initial mining targeted the central sectionof the lode, the 2012 mine plan allows forseveral months of in-reef mining in the highergrade Mako lode to demonstrate its geologyand grade performance, prior to the decisionto ramp up mining rates towar ds the targetof 50,000 ounces a year.Castlemaine holds significant explorationtitles encompassing five substantial goldfieldsin central Victoria. Acquired from Lihir Gold in2010, Ballarat has about 18km of under -ground development within a goldfield mor ethan 5km in strike length. The ar ea has producedmore than 1.4 million ounces of goldat a high grade of 9.2 grams/tonne gold.Castlemaine also owns infrastructure includinga fully r e-commissioned 600,000tonne/annum mill, gravity and leach cir cuits,and assay laboratory. The company’s primaryfocus is to return the Ballarat gold project toproduction at a targeted annual rate of about50,000 ounces by the end of 2012.In mid-April Castlemaine received a takeoveroffer from LionGold Corp of Singapore. Lion-Gold made a placement valued at almostAus$3.9 million and made an of f-market takeoverbid for all issued shares in Castlemaine.The offer represented a 62% premium basedon the last trading day volume weighted averageprice of the shares on April 13.Castlemaine Goldfields’ projects are in the historic goldfieldsof Victoria.Follow-up drilling at Jutson RocksGLOBAL Metals is awaiting assay r esultsfrom the re-commenced rotary air-blast (RAB)drill program at its Jutson Rocks gold andnickel project in Western Australia. The RABprogram is the first systematic drill testing ofthe project to follow up positive assay resultsfrom the second phase of infill soil-auger drillingannounced in January.The RAB program was halted due to CycloneHeidi in January , which made localroads impassable for the drill rigs, but thecompany has now doubled the pr ogram tocover 3000 metres to test the extended anomalouszones. The auger drill results extendedthe strike length of the gold anomalies.There were 241 drill holes completed to infilland extend the first phase of soil-auger drillingat the site in January.Global says the souther n gold prospectremains open to the south and ther e are anumber of individual gold anomalies, particularlya NE-SW trend, that require followup RAB testing. The norther n-most goldprospect has not yet been closed off to thenorth and south.The company’s exploration is focused onthe central part of the ar chaean JutsonRocks Greenstone Belt (JRGB) which issouth of the historical Chapman’s Rewardgold mine and about 30km northwest ofGold Road Resources’ Central Bore projectin the adjacent Y amana Greenstone Belt.The JRGB is consider ed to be one of thelast remaining uncovered greenstone beltsin the eastern goldfields which has not beensystematically explored for gold.Global’s managing director Lia Darby saysthe company is encouraged by the extensiveanomalism defined by the r ecent programsand the potential for gold mineralization withinthe JRGB. “These new auger results are withina 30km-long zone of gold anomalism identifiedfrom geochemical sampling programs by previousexplorers, mostly in the 1970s. None ofthese gold anomalies have been followed upby drilling, and the company is looking forwardto receiving assay results from the RAB drillingprogram, currently in progress.”Geochemical results from a 3500 hectaresample of Bulk Leach extractable Gold(BLEG) collected to the south of the existingtest zone are also anticipated to be encouraging,providing Global with a positive outlookfor the project’s next stage of exploration.52 | ASIA Miner | May/June 2012

IndiaCommissioning under way at NSL’s Kurnool plantTHE Kurnool iron ore beneficiation plantbeing built in the southeast of India by Perthdual bulk commodity developer NSL Consolidatedremains on track. Commissioning onindividual equipment components for phaseone dry plant continues, with sales to be generatedby the end of June.As of early Mar ch all main plant items forphase one of the Kurnool operations had beenerected and commissioning on individualequipment components was progressing.The Mangal mine start-up is under way inpreparation to produce the first mainstream oredeliveries for sustained plant feedstock oncecommissioning moves to steady state production.In addition, the pr ocess of transferringMangal stockpiles to the stockyard for use asbeneficiation plant feedstock has started.A trip in March by NSL managing directorCedric Goode to the Chinese factory fabricatingthe phase 2 wet beneficiation plant,confirmed that fabrication is near completion.The plant will be shipped fr om Chinato India upon completion.The company is aiming at a phase one initialsteady annual production rate of 200,000 beneficiatedtonnes and r emains on track forsales revenue from Kurnool by June 30, 2012.Phase one comprises a conventional crushing,screening and dry separation plant. Thephase 2 wet beneficiation plant process, withannual capacity of an additional 200,000 tonnes,will be br ought into operation later in2012 with completion and first sales contributionin the first half of 2013.The Kurnool stockyard is a 4.85 hectareindustrial site within the south-easter n Indianstate of Andhra Pradesh. As well asthe iron source at the nearby Mangal mine,the plant is also adjacent to NSL’s existingKuja iron mine.NSL’s plan for phases 3 and 4 incorporates1.5 million tonnes annual thr oughput by theend of 2014 aided by the acquisition of a thirdproject, Karimnagar, which has an explorationtarget of 62 million to 125 million tonnes ofmagnetite at grades of 20-50% ir on. Thisproject represents a ‘second generation’ forNSL in India with significantly larger potentialthan the Mangal and Kuja mines. The companyis also seeking other iron opportunitiesin India, which boasts a large but fragmentedindustry with many small-scale operations.India has annual ir on ore production ofabout 160 million tonnes, with 80 companiesoperating about 250 mines. India is theworld’s fourth largest steel producer and thirdlargest iron ore exporter.Commissioning of the dry separator at the Kurnooliron ore plant.NSL is the only for eign company to ownand operate iron ore mines in India. This firstmover position was reinforced recently withthe Rio Tinto announcement to invest $2 billioninto India’s significant iron ore industry.Vedanta to boost zinc and aluminium interestsVEDANTA Group is seeking full control of HindustanZinc and Bharat Aluminium and has offered170 billion rupees (US$3.4 billion) to buythe Indian government’s remaining stakes inboth entities. The gover nment is seeking tonarrow its fiscal deficit through measures includingasset sales and capping of expenses.Buying the stakes will give V edanta’sMumbai-based unit Sterlite Industries (India)control over a combined 964,000 tonnes ofannual zinc and lead-pr oducing capacityand full ownership of a 2 million tonne/yearbauxite mine.Vedanta is of fering to buy the gover n-ment’s 29.5% stake in Hindustan Zinc at a10% discount to the 20-day moving average.Sterlite, India’s biggest copper producer,already owns 64.9% of Hindustan Zinc.It bought 51% of Bharat Aluminium, whichowns the bauxite mine, in 2001 and a majoritystake in Hindustan Zinc a year later.Meanwhile, Vedanta is combining two ofthe group’s publicly-traded Indian units into anew company after a US$8.67 billion pur -chase of oil producer Cairn India. Sesa GoaLtd, India’s largest iron-ore exporter, will absorbSterlite in an all-share deal. Vedanta Aluminiumand Madras Aluminium will also bemerged into the new company, Sesa Sterlite.The arrangement will see the transfer of Vedanta’sdirect holding of 38.8% in Cairn Indiato Sesa Goa, together with the associateddebt of $5.9 billion. Post the transfer , SesaSterlite will have a 58.9% shar eholding inCairn India and Vedanta will have reduced itsloans outstanding by 61% to $3.8 billion, thuscutting debt-service costs by $300 million forthe year ending March 31, 2013.Vedanta’s chairman Anil Agarwal says,“Sesa Sterlite will be one of the largest globaldiversified natural r esources majors,supporting the country’s industrial growth.This transaction is a natural evolution, leadingto simplification of the gr oup’s structure.Sesa Sterlite will be the principaloperating company in the group and with itshigh quality assets, gr owth projects andstrong management, it is well placed tocreate value for all shareholders.”Sesa Sterlite is expected to have a worldclass,low cost asset base in close proximityto high growth markets. Increased diversificationis expected to reduce volatility of earningsthrough commodity cycles, loweringthe cost of capital and enhancing value.Sesa Sterlite will have exposur e to zinclead-silver,iron ore, oil & gas, copper, aluminiumand commercial power with assetsin India, Australia, Liberia, South Africa, Namibia,Ireland and Sri Lanka. This assetbase will benefit fr om a large capex pr o-gram that is largely invested, with capacityexpected to double in the next three years.54 | ASIA Miner | May/June 2012

South PacificTests under way on Tuvatu samplesMETALLURGICAL testing is being carried out on samples fr om LionOne Metals’ Tuvatu Gold Project on the island of Viti Levu, Fiji. Resultsof the tests will indicate amenability to processing routes which mayinclude gravity concentration, flotation, intensive or traditional leaching,and gravity recoverable gold.Lion One has commissioned Australian mining services companyGekko Systems to conduct the tests and has shipped a 300kgsample of drill cor e composites to Australia for comminution,gravity, and flotation test work. Initial testing is expected to be completedby the end of July.Previous metallurgical studies performed on Tuvatu ores includea batch treatment campaign carried out in 1997 by Emperor Gold,on 968 tonnes of ore with a head grade of 3.63 grams/tonne gold.The bulk sample was treated through the Emperor Mill at Vatukoula,40km northeast of Tuvatu, yielding overall gold recoveries of 86.3%.Subsequent laboratory tests carried out by Metcon in connectionwith the 2000 feasibility study by Bateman Kinhill on a 338kg bulksample yielded 90% recoveries from a combination of gravity, flotation,and cyanidation.Lion One considers these tests to be relevant as they demonstratedthat the ores tested were amenable to conventional treatment, but isnot relying on their conclusions as the current tests will be conductedunder different specifications using current processing technologies.If warranted, further test work will focus on developing a r ecoveryprocess flowsheet, assessing the economics of gold extraction, generatingcapital and operating cost models, and design parametersfor any proposed processing facilities.Strategic Elements applies for goldfieldSTRATEGIC Elements has lodged over the entire area of the historicGolden Blocks Goldfield on New Zealand’ s South Island. The131sqkm project has had no modern exploration and encompassesseven historic mines that produced about 39,154 ounces of gold.The largest mine was Aorangi, which r eportedly produced about30,688 ounces of gold at an average grade of 36 grams/tonne. Potentialexists for further hidden discoveries outside of the old minesthat would have not been visible to the old miners who were focusedonly on gold in quartz veins.The project also includes three areas which have potential for intrusion-relatedgold similar to OceanaGold’s nearby Sam’s Creek goldproject with a JORC-compliant 770,000 ounces of gold. These areascontain gold mineralized acid porphyry in float and outcrop samples.ASX-listed Strategic will follow a pr oven strategy to explore thearea. Since OceanaGold opened the Globe Progress mine in Reefton,it has produced more than 250,000 ounces with a significantamount from haloes of gold mineralization surr ounding the quartzveins that were mined historically. Mine workings at the moder nopen cast pit also indicate shoots with extensive down plunge extentsnot mined by early miners. Shallow faults could also mean mineralizationthat may not be visible at surface. The company willfollow the OceanaGold appr oach to explore the Golden BlocksGoldfield for disseminated gold mineralization.May/June 2012 | ASIA Miner | 55

Strategic Elements applies for goldfield overflow

MalaysiaDrilling expands Bau gold resourceINFILL and step-out drilling at the Bau Centralsection of Olympus Pacific Minerals’ Bau GoldProject in East Malaysia continues to upgradethe resource category and expand the pr o-spective open-pit resource. Mining feasibility isbecoming increasingly certain with definitivemetallurgical studies due for substantive completionin May and feasibility studies scheduledfor completion by the end of the year.The drilling on the Jugan deposit has demonstratedhigher than expected gold gradeswithin the core of the deposit and good continuityof mineralization. Resour ce categorieshave been significantly upgraded, and ongoingexploration of open-ended mineralization extensionsis expected to further expand the depositbeyond the current resource figures.Best results are: 41 metr es @ 1.79grams/tonne gold, including 2 metres @ 5.24grams/tonne and 5 metr es @ 5.24grams/tonne; 34 metres @ 3.01 grams/tonne;62 metres @ 2.02 grams/tonne, including 15metres @ 3.65 grams/tonne; 52.7 metr es @4.64 grams/tonne, including 21 metres @ 6.8grams/tonne and 4 metr es @ 11.97 grams/tonne; 39.5 metres @ 1.91 grams/tonne, including18.5 metres @ 3.39 grams/tonne; and29.3 metres @ 2.94 grams/tonne, including 3metres @ 10.05 grams/tonne.Jugan is a near-surface gold deposit at thenorthern end of the Bau Central gold trend. Itcomprises disseminated, sediment-hosted(Carlin-style) mineralization, hosted within athick shale/sandstone sedimentary sequence.The presence of a deep NE-SW tr endingmineralized (feeder) zone, parallel to the Baugold trend, has now been confirmed on multipledrill section lines. This zone steeply dipsNW and remains open along strike in both directionsand beyond 200m vertical depth.The drill program will continue to probe strikeand dip projections of this zone.A new NI 43-101/JORC r esource estimatefor the Bau pr oject contains 17.058million measured and indicated tonnes @1.67 grams/tonne for 913,500 containedounces of gold and 50.062 million inferr edtonnes @ 1.31 grams/tonne for mor e than2.108 million ounces.Continuing geological and geophysicalstudies reveal significant additional potentialin Jugan deposit extensions, as well aselsewhere within the Bau Central GoldTrend. The Bau mining feasibility study isinitially focused on the Jugan Hill deposit,the first of several Bau Central depositsslated for development.Olympus Pacific’s chief executive of ficerJohn Seton says, “Drilling at Bau Central ofthe Bau Gold Trend continues to return highlyencouraging results and mining feasibility isbecoming increasingly certain. The recent resourceestimate announcement at Bau Centralreflects growing confidence in Olympus’ability to sequentially develop other depositswithin the Bau Gold Trend. This enhances ourbelief that Bau has the potential to ultimatelybe ranked as one of South East Asia’s importantproducing goldfields.”Olympus has been aggressively exploringthe 17km-long Bau Central mineralizationtrend since first acquiring the pr operty in2009. The Bau gold trend contains 34 knowngold prospects, which are at various stagesof exploration advancement.56 | ASIA Miner | May/June 2012

LaosCATALYST Resource Group has signed aletter of intent to acquir e an 80% interestin a gold concession in Laos from Laos MineralsMining Inc. The 68sqkm concession,which Catalyst intends acquiring inexchange for a cash payment ofUS$500,000, is known as the San 8 andSan 60 areas of Somsanouk V illage, SanakhamDistrict in Vientiane Province.Additionally, Catalyst has committed to providinga minimum of $2 million for exploratoryactivities within the next two years. Laos MineralsMining is also entitled to a mining executionfee of $3 million which will be paid fromthe initial extraction and sale of the mineralsfrom the concession.Catalyst Resource Group is a Los Angeles,California-based company engaged in innovativeprocessing technologies to extract andprocess gold and platinum gr oup metalssuch as rhodium, palladium and platinum.Laos Minerals Mining is a Nevada corporationdevoted to the exploration and developmentof selected mineral deposits in the People’ sDemocratic Republic of Laos.Catalyst plans Laos gold acquisitionExploratory activities on the concessionareas previously carried out by Newmont,BRGM and mor e recently by KingsgateConsolidated have shown potential mineablegold vein deposits aggregating severalhundred thousand ounces. Ther e alsowould be the possibility of finding up to onemillion or mor e ounces of mineable goldand large bulk of base metal deposits. Attoday’s gold price, the total estimated valueof these concession areas could range fromabout $US510 million to $US1.7 billion.The closing of this transaction is scheduledto occur no later than May 30, 2012.The company plans to carry out additionalmapping, trenching, sampling and followupgeophysics to define drill targets andthen drilling of these targets in collaborationwith a select regional mining contractoror a joint-operation partner.Catalyst has developed and secured patentedproprietary methods that can recoverfine micron metals that could not berecovered in the past. This process is ableto recover up to 100 times the standard industryrecovery rates, targeting gold, platinum,rhodium and palladium.Catalyst’s CEO Douglas Berkey says,“We consider ourselves to be a ‘hybrid miningcompany’ with all the benefits of alarge mining operation but with none orlittle of the costs and risks associated withit. Because most of our material is aboveground and already mined, our operatingcosts are less than 10% of those of traditionalmining companies. Our methods arealso more environmentally friendly whilebeing much more efficient.”As well as the property in Laos, Catalystis evaluating other properties in the US andSouth East Asia. It is working with severalinvestor groups in the US and overseas toarrange funding for a commer cial productionfacility and working capital. It has alsoreceived indications of interest and commitmentfrom some of the investor groups.Thecompany intends to form joint ventures withmines and start to license out its patentedprocess to mining, pr ocessing, recoveryand refining operations.May/June 2012 | ASIA Miner | 57

VietnamOlympus Pacific identifies new ore sourcesNEW ore sources at Olympus Pacific Minerals’gold projects in central V ietnam are likely tolead to additional JORC/NI 43-101 r esourcesduring 2012. Exploration is ongoing at the producingBong Mieu and Phuoc Son pr ojectswith new ore sources identified at Bong Mieuduring 2011 currently subject to further work.During 2011 net gold resources at the company’sVietnam projects fell slightly owing to depletionfrom mine production. Net measuredThe Phuoc Son project is Olympus Pacific Minerals second producing operation in Vietnam.resources stand at more than 1.19 million tonnes@ 3.89 grams/tonne for 148,751 containedounces, net indicated r esources are almost3.141 million tonnes @ 3.53 grams/tonne for356,709 ounces and net inferred resources aremore than 8.638 million tonnes @ 3.99grams/tonne for almost 1.11 million ounces.Programs are in place to convert the measuredand indicated resources to reserves whilethe inferred resources are the subject of continuingexploration upgrade and expansion.Two Vietnam-focused funds have recentlyinvested in Olympus Pacific. V ietnam EnterpriseInvestments has obtained more than 19million ordinary shares, representing 5.4% ofvoting power in the company, while DragonCapital Vietnam Mother Fund has obtainedalmost 19 million voting shares, representing12.51% of the voting power.The Canadian-based company has recentlyalso enhanced the independence of itsBoard. Director John Seton voluntarily tenderedhis resignation as a director with three ofthe four directors - deputy chairman KevinTomlinson, Les Robinson and Jon Mor da -being independent under applicable corporategovernance guidelines.Company chairman David Seton says thatJohn Seton’s resignation also ensures compliancewith Canadian residency requirementsfor directors under the Canada Business CorporationsAct. John Seton remains in the positionof chief executive of ficer and willcontinue to be closely involved in the strategicdirection of the company. Kevin Tomlinson andDavid Seton have been appointed to the CorporateGovernance and Nominating Committeeof the Board, joining Les Robinson.Pala investment boost for Ban Phuc projectAN investment in Asian Mineral Resour ces(AMR) by Pala Investment Holdings is likely tolead to an acceleration of mine developmentat the Ban Phuc Nickel-Copper Project in northernVietnam. AMR holds a 90% interest in theproject through Ban Phuc Nickel Mines(BPNM), which placed it on care and maintenanceas a result of the global financial crisis.Up to this stage AMR had investedUS$66.7 million in the project and it has sinceinvested a further $7.1 million to ensure it canbe restarted, completed and put into productionas soon as possible.The company has entered a subscriptionagreement with Pala involving the acquisitionof AMR shares and warrants for total considerationof Can$4.3 million. Pala has also enteredinto a share purchase agreement withMellford and Sword Investments, who are affiliatesof the Tecity Group, to purchase fromthem AMR shares for an aggregate purchaseprice of almost Can$2.97 million.Following completion of these transactionsPala will own 50.7% of AMR’ s outstandingshare capital, or 57.7% on a fully diluted basisafter giving effect to the full exercise of the warrants.Concurrent with completion of thesetransactions, AMR and Pala will also enter intoan investor rights agr eement which will givePala pre-emptive rights to subscribe for additionalAMR securities and the right to designatetwo board nominees provided Pala holds 10%or more of the outstanding shares of AMR.Pala is a multi-strategy investment companydedicated to investing in and cr eatingvalue across the mining sector in both developedand emerging markets. Pala InvestmentsAG’s chief executive officer Jan Castrosays, “Pala is excited to support AMR in thecontinued development of the Ban Phuc Nikkel-CopperProject. Pala looks forwar d toworking with AMR and AMR’s other shareholdersto enhance shar eholder value as theBan Phuc project progresses.”AMR’s director Robin W iddup says, “OurBoard and management have been workinghard for the past year to deliver a transactionthat will enable AMR to complete the Ban Phucproject and exploit the further potential thatexists in the ar ea covered by the Ban Phucproject investment certificate. We believe thatPala brings the necessary technical, operationaland financial expertise to support this objectivewhile this transaction allows AMR’ sshareholders to continue participating in potentialupside from the development of Ban Phuc.”After receiving a report and letter from theGeneral Department of Geology and MineralsVietnam (GDGMV) expressing concern at thedelay in mine construction, AMR and BPNMintend to engage relevant Vietnamese authoritiesin further discussions in which it will bepointed out, among other things, that thetransaction with Pala pr ovides evidence ofBPNM’s capability to speed up mine constructionas requested by GDGMV.58 | ASIA Miner | May/June 2012

Slurry PumpsThrough the use of computational fluid dynamics, pump makers offer new designs that improve wear life and reduce power consumptionBy Steve Fiscor, Editor-in-ChiefThe Warman WBH centrifugal slurry pump.Mining operations, processing plants in particular,rely heavily on slurry pumps. Over theyears, manufacturers have modified the designsto improve pump performance. Someof these pumps have such a long history , itseems that it would be difficult to continue tomake further enhancements. The use oftechnology, especially simulation with computationalfluid dynamics (CFD), allowstoday’s engineers to view and test new designsbefore the first part is manufactur ed.This is a clear advantage over predecessorsthat relied on intuition and trial and error.Last year, Weir Minerals invested in a majorresearch and development (R&D) initiative toupgrade its line of Warman slurry pumps. Inthe end, the company’s engineers were ableto significantly modify impeller design. Thecompany took a bold step that is now beginningto pay dividends for its customers. It alsoconverted a froth pump into a unit capable ofhandling the heavy thickener underflows, ajob usually assigned to piston-type pumps.These initiatives offer the mines a chance toget a little more life and better performancefrom existing pumps. The pr ogram also allowedWeir Minerals to offer a new pump thatcan be adjusted while running.ITT announced a similar initiative for its line ofGoulds slurry pumps. The changes it has incorporatedallow plant operators to adjust andeven maintain the pumps while they ar e running.New monitoring devices pr ovide advancedwarning when operating conditionsbegin to deteriorate. New safety enhancementsprotect miners and the surrounding equipment.In extreme operations such as mining,safety and maintenance ar e serious concerns.If the pumps are not turning, the mineis not making money . Hopefully, many ofthese improvements will extend the time betweenmaintenance intervals and ultimatelyreduce the total cost of ownership (TCO).Weir Continues to Improve Popular Slurry PumpsIn an effort to reduce TCO, engineers at WeirMinerals initiated an extensive R&D programaimed at better understanding the wear characteristicsat the inlet and outlet of centrifugalslurry pump impellers. The r esult was atotally new pump, the Warman WBH, and anew impeller and matching thr oatbush designfor the Warman AH pump.The new WBH slurry pump minimizes wearin the front liner with an adjustable throatbushto close the clearance between it and the impeller.With just a single action, the throatbushfront liner can be adjusted both r otationallyand axially, and at the same time. W eir Mineralsrefers to the new pump as a quantumleap in front liner design and said technicianscan now maintain the pump’s performanceand efficiency close to that of a pump in newcondition, and r educe wear fr om a singlepoint of adjustment. The one-point adjustmentdevice moves the cover plate linercloser to the impeller. This will minimize thefront impeller gap, reducing recirculation.In creating the new WBH slurry pump, WeirMinerals said it looked at every aspect ofmaintenance ease, operating cost and safety,and this R&D work led to a list of advancementsfrom the front liner to the drive end. Asan example, there is no need to check orreadjust the drive every time an adjustment ismade like with the AH pump. The shaft andcasing stays aligned to extend the life of mechanicalseals. A robust one-piece bearingframe maintains accurate alignment.A new impeller and volute design minimizesturbulence so that wear becomes more predictable.A unique patented design based ona vanelet in each impeller channel and a 4-vane impeller str eamlines the slurry flowthrough the pump. These features result in reducedpower usage, maintenance and costs.62 | ASIA Miner | May/June 2012

Slurry PumpsWeir has been testing the WBH at coalmining operations in Australia with someimpressive results.Coal & Allied’s Mt. Thorley operations in NewSouth Wales installed the WBH in its southernprep plant. It reportedly took about eight to 10hours to swap it out. A year later, the pump isreceiving high marks. According to the mine,the WBH is definitely using less power than theprevious pump. Impr essed by the WBHpump’s performance, they have now orderedfive for the site’s north prep plant.AH UpgradeThe Warman 8/6 AH is a very popular pumpand a wealth of wear data has been collectedfrom the field over the years. Using a novelintegrated design approach, engineers comparedthis data with a CFD simulation to finda correlation between predicted and actualresults for the standar d 5-vane slurry impellers.The design team reviewed several impellersand decided a 4-vane option achievedthe desired results. New impeller-throatbushinlet geometries were modeled using CFDwith a focus on reducing turbulence and optimizingthe balance between wear and performance.This process produced a designwhich would become the new Warman WearReduction Technology (WRT).“The WRT program was a massive initiativeby Weir Minerals,” said John Otten, divisionalproduct manager-slurry pumps, Weir Minerals.“The Warman AH range is the most sold slurrypump in the world by a long shot. It’s about 60years old now. While we have improved it overthe years, this is a significant step to impr ovehydraulic performance and wear life.”In the CFD simulation, one particular 4-vane design proved outstanding in all areas.A prototype was manufactur ed, watertested, and an extensive field trial was conductedin an extreme application, accordingto Weir Minerals. Additional field trials confirmedthe data. All test r esults were fedback into the CFD pr ogram to validate thedesign and pr ediction methodology. ThisWRT design offers an efficient, streamlinedentry for smooth transfer of the slurry particlesfrom the inlet axial direction into the radialflow through the impeller. Smoother inletflow and uniform velocities within the impellervanes significantly lowers the net positivesuction head (NPSH) characteristics,extends inlet and associated thr oatbushwear life, and improves overall performance.Adding unique vanelets at the outlet ofthe impeller passageways maintainssmooth flow from the inlet, reducing turbulence,eddies and r ecirculation as flowexits from the impeller into the volute casing.The key aspect of maintaining uniformvelocity profiles provides for extendedwear life of the surr ounding pump chamber.The end r esult is an impeller thatdemonstrates improved efficiency, reducedNPSH and greatly improved wear performancereducing the total cost of ownership.The vanelets help boost the eficiency of the4-vane design, and Weir Minerals said it hasfound that sealing is also impr oved whenusing the new side-sealing vanes. The AH-WRT impellers represent a step change improvementcompared to the older style5-vane impeller design. The AH-WR T partsare interchangeable and retrofitable into allcurrent AH pumps. The upgrade of fers performanceimprovements by r eplacing theminimum number of parts.Converting Existing Pumps to New UsesMore mines today are considering a thickenedslurry to help improve refuse disposal by reducingthe expense and risk associated withThe new WBH slurry pump minimizes wear in the frontliner with an adjustable throatbrush to close the clearancebetween it and the impeller.pumping a lot of water into a refuse impoundment.The AHF pump from Weir Minerals wasoriginally developed as an extension of the AHrange to handle large quantities of fr oth orslurry with entrained air generated by the flotationprocess. More recently the pump hasbeen used with a gr eat deal of success inthickener underflow applications.“The underflow pumping system hasproven to be the limiting factor that deter -mines the maximum underflow density atwhich the thickener can be operated,” Ottensaid. “The thickener underflow density needsto be operated within a certain density rangeto maintain stable operation.”The Warman AHF flow inducer pumps havea very large inlet configuration and a uniqueflow inducer impeller design. The large inletminimizes the friction associated with highyield stress materials. An open 4-vane impellerminimizes friction thr ough the passageways.An integral flow inducer scoops inthe inlet to lower the pump’s NPSH, feed theslurry into the pump, increase the shear at theinlet, and lower the apparent viscosity of theslurry. This results in more stable operation onA Warman AHF pump originally designed to pump froth, is now being used to pump thickener underflow in Australia.May/June 2012 | ASIA Miner | 63

Slurry PumpsSimulations show reduction in wear “hot spots.”Lower power consumption of WRT compared to standard sustained over a longer period.high yield stress slurries through better headand efficiency maintenance.“We recently installed an AHF pump on athickener underflow application in Australia[See photo, p. 63],” Otten said. “W e wereamazed at how well this type of design comparedwith positive displacement pumps. Wedid test work and we wer e pleasantly surprisedwith some good results.”The AHF uses all of the common parts associatedwith the AH range with a fewchanges to the suction side. The pump relieson a special auger type impeller design. A newcover plate was designed to accommodatethe larger suction arrangement that takes in alot of the air on thicker type slurries. This is anarea where mines have always had applicationproblems, Otten explained. “A centrifugalpump does not like air, that’s one of its biggestdrawbacks, the brand does not matter,” Ottensaid. “This is a very simple change that allowsplant operators to upgrade existing pumps tohandle these types of slurries. Customers arenow interested in installing this design onheavy thickener applications.”Engineered for Harsh DemandsITT Goulds XHD has excelled in two measuresof performance related to moving heavyslurries: high reliability, with design features inevery critical area, which reduce wear and extendequipment life while pumping abrasiveminerals; and easy serviceability , with aunique suction seal ring that can be adjustedwhile the pump is running to maintain optimalimpeller clearance and a split stuffing box forpacking maintenance. The XHD also includesseveral other features that make parts mor eaccessible to perform required maintenancemore quickly, according to ITT Goulds. It isalso relatively easy to install, without changingpiping configurations or pr ocess design. Alow centerline height and the wet-end designallow the XHD pump to be adapted to thefoundations of currently installed slurry pumpsfrom ITT Goulds or other manufacturers.“We feel the XHD delivers with all of thesefeatures and lowers the total cost of owner -ship,” said Buddy Morris, slurry pump pr oductmanager, ITT GouldsUsing the CFD technology, ITT Goulds engineersdesigned the XHD pump for optimal hydraulicoperation—resulting in higher efficiency,longer wear and lower power consumption.“The CFD models allow engineers to smoothtransitions and eliminate eddies, which ultimatelyminimizes wear and energy consumption,”Morris said. Early XHD users havereported drops in electrical consumption of10% to 15% over previously installed pumps.The adjustable suction seal ring maintainsproper clearance and users get longer wearlife—not just for the impeller, but for the entireliquid end of the pump. “The adjustable suctionprevents recirculation and dir ects theproduct back to the pump out vane,” Morrissaid. “It can be adjusted while in operation.”The wet end of the XHD pump is designedas a replaceable cartridge, which allows operatorsto change parts mor e quickly and efficiently.“We have designed this to be a singlecycle wet-end,” Morris said. “The componentswear at the same rate to allow for predictableservice cycles. This feature is ideal for extremeapplications, such as heavy-duty mill cir cuitpumps. With scheduled shutdowns, maintenancecrews do not want to be guessing atwhat parts will be needed. No one wants toreplace a liner and then thr ee weeks later replacethe impeller.” ITT Goulds estimates 30minutes to one hour to remove the liquid endand re–attach a refurbished liquid end.With the quick change wet-end, technicianscam clamp the impeller in place and removethe casing, impellers and liners, all as asingle component and take it to the shop andrepair it. And, you can have a rebuild kit readyto go to replace the unit, Morris explained. Tohelp the process, the pump has a unique, taperedimpeller shaft thr ead to aid r emoval,and for faster r eplacement of the impeller ,with assurance that the shaft and bearingcartridge are properly aligned when the pumpis reassembled. Machined rails, unlike saddle-mountedbearing cartridges, provide positivealignment, accor ding to Morris.“Clamping bolts protect the area completelyfrom excessive wear and corr osion,” Morrissaid. “It’s also easy to re-establish the fit.“Adjustment rods are often found underthe bearing frame, which are difficult to access,”Morris said. “We have placed a setof dual adjustment r ods on top. W e havefound that technicians can adjust with oneof them if they need to.”The new design also includes an impeller releasecollar. “This prevents the impeller from totallybottoming out on the shaft,” Morris said.“Removing the collar allows a few thousandthsof an inch movement to r elease the pressureon the impeller, allowing it to spin off easily.”As far as installation, the XHD has a compactpedestal. The base can be adapted to virtuallyany foundation, Morris explained. “Centers canbe aligned easily for piping,” Morris said. “Replacementsrequire minimal changes and theunits easily adapt to existing plumbing. The lowcenterline allows a very rigid, vibration-free setup.We have also engineered the flanges formore flexibility for existing installations.”Pump wear also is impr oved throughheavy-duty bearings, standard oil lubrication(a grease option is available) and Inpr o Sealbearing isolators. “Impro Seal bearing isolatorsare usually upgrades,” Morris said. “W ehave placed them on the mining pumps becausethey effectively protect the pumps.”The XHD pump’s open seal chamber usesa removable split stuffing box and gland foreasier packing maintenance. Users canchoose their packing arrangement with dedicatedseal water ports, and the stuffing box64 | ASIA Miner | May/June 2012

Slurry Pumpsis designed to accommodate most mechanicalseals by removing the split stuffing box. “Ifminers want to convert from packing to mechanicalseals, they can remove the split boxand replace it with a mechanical seal withoutmajor modifications,” Morris said. “It is alsoset up with multiple flush ports.”The i-Alert conditional monitoring systemidentifies problems early. It measures vibrationand temperature. “Similar to a Check Engineindicator light on a vehicle, it’ s greenwhen operating normally,” Morris said. “Whenoperations deviate from the baseline, it startsto blink red. You can see that light in the milland when it’ s blinking technicians knowsomething is wrong. On one of the tests r e-cently, the light turned red, and when they investigated,they discover ed one of thepull-down bolts on the pedestal was loose.They tightened it and it turned to green.”One of the major safety features is the multiplelift points. “Pumps are not always in a topdischargeposition, so we placed lift pointsaround the casing so you can lift it no matterthe position,” Morris said. “Another gr eatsafety feature is the double-wall design, whichis good to 250 psi (17 bar working pr essure).If a breach occurs, the casing shell pr otectsworkers and the surrounding equipment. Wehave also designed in an optional pressure reliefdevice [burst disc]. It pr events over pressurizationif the pump gets sanded in. Whenthe suction or discharge side is blocked withslurry, the steam generated as the pump heatsup could cause an explosion. Once the temperatureinside the pump exceeds a certainlevel, the device releases the pressure.”ITT Gould’s New XHD Slurry PumpITT Corp. recently launched the new GouldsXHD, an extra heavy-duty, lined slurry pump.The company bills it as a next-generationproduct that can handle the heaviest slurryunder the toughest conditions. The new XHDpump will enable mines to move slurry withimproved reliability and at lower operatingcost, according to ITT.The XHD is designed to be maintained evenwhile running, and to r equire less downtimefor service procedures—with parts that aremore accessible and adjustable than in otherslurry pumps. The pump’ s short bearinghousing is adaptable to existing foundation,so operators can retrofit existing pumps. Thepump’s features include:enables adjustment even while the pumpis running, compensates for wear andmaintains optimum impeller clearancefor peak performance;• A split stuffing box that improvesaccessibility for easier and faster packingmaintenance;• Dual impeller adjustment that providesquick, easy access for operators to performimpeller corrections;• A replaceable wet end cartridge thatallows operators to change parts morequickly and efficiently with the help ofa unique, tapered impeller shaft; and• i-Alert condition monitor, ITT’s proprietarytechnology measures vibrationand temperature, and signals users witha blinking red LED when it detects apotential problem.“The mining industry has seen dramatic improvementsin extracting and crushing methods,and now this new pump pr ovides thatsame leap in pr oductivity for moving slurry,”said John Manna, vice president of global marketing.“We’ve designed the XHD pump basedon detailed customer input and testing. Ourfield results indicate the XHD pump will set newindustry standards for r eliable performance,quick maintenance and efficiency savings.”The XHD pump is designed to work optimallyon both Service Class III (heavy) and Class IV(very heavy) slurries as defined by the HydraulicInstitute. The pump is available in six dischargesizes ranging from 80 mm (3 in.) to 300 mm(12 in.), and in four power frames. Its flow rangeextends to 2,950 m3/hr (13,000 gpm), and dischargepressures to 85 m (280 feet).Lowering the TCOStan Connect, global pr oduct director, ITTGoulds recognizes that miners are always lookingto reduce their TCO. “This is not a newconcept for ITT Goulds,” Connect said. “In fact,we have played a leading role in promoting thisconcept throughout many of the pr ocess industrieswe have served for the past 10 to 15years. The PumpSmart product is one of thetechnologies the company has developed tolower TCO.” From data ITT Goulds has collected,they know the largest cost component(about 50%) for a typical mineral pr ocessingplant is in energy and operations, which relatesdirectly to the efficiency of slurry pumps.The second largest cost, according to Connect,results from the cost of maintenance andlost production to perform unplanned maintenance.“The XHD has been optimized for single-cyclewear, which means that the partshave been engineered for even, synchronizedwear by eliminating hot spots,” Connect said.“This allows the miners to benefit fr om extendedperiods of operation while also allowingthem to plan for maintenance outages.”Maintenance is, however, a fact of life. Threemajor areas for maintenance on slurry pumpsinclude: replacement of wear parts and maintenanceof both the shaft-sealing packingareas and the bearing support frame. “TheXHD offers wide open access to the shaft sealingarea,” Connect said. “When combined withthe innovative 2-piece stuf fing box, maintenanceof shaft packing is a br eeze. The wetend cartridge concept allows miners to replacethe working end in the field and quickly restartthe production process. It also allows them torebuild the frames in a shop environment.”• An adjustable suction seal ring, whichITT Gould’s XHD can be adjusted while running to maintain optimal impeller clearance.May/June 2012 | ASIA Miner | 65

Primary Gyratory CrushersOEMs modify machines to make them safer and easier to maintainBy Steve Fiscor, Editor-in-ChiefPrimary gyratory crushers (PGs) r educe orefrom the pit to a consistent, manageable size.While most agree that PG design has changedvery little in the last 20 to 30 years, thoughtssurrounding PG installation have. Much of thatthinking has to do with declining or e grades.Many mines have to process more ore to retrievethe same amount of metals.Miners looking to process huge amountsof ore have to strike a balance between capacityand product size. Ideally, a single,massive PG could maintain a very high capacitywhile pr oviding a consistent smallproduct size. In the r eal world, however, atighter setting on the largest PGs meansless ore moves through the machine volumetrically.Adding multiple machines wouldmaintain the desired capacity levels, but italso increases capital and operating costs.Even though the principles r elated to PGshave not changed much, the way the minersinteract with the machines has. Obviouslycrushing mountains of rock takes its toll onthese machines. The original equipmentmanufacturers (OEMs) are striving to improvemaintenance methods. The safety of the peoplemaintaining these machines is paramount.The cost of maintenance, the dir ectexpense and the impact of downtime, is animportant consideration. Technology has advancedto the point where all of the machinesare delivered with software and control systemsthat allow them to interface with humansand other controls and machines.The OEMs have seen demand for PGs r e-bound from a lull in 2009. Business was briskprior to the global financial crisis and now demandis again returning to those 2007-2008levels and so are the lead times for the deliveryof new machines. The problem is the largecastings. A single piece weighs 50 to 100 tonsand only a few foundries can make these castings.All of the OEMs say to expect at least aone-year wait and, in some cases, that leadtime has now grown to 16 months or greater.Primary gyratory crushers reduce run-of-mine ore to a consistent size.Market DynamicsAs far as market shar e, Metso Minerals islargely viewed as the leader and it has thelargest installed base of PGs, but competitivecompanies have made significant inr oads.“Reports indicate that we had lost a littleground to some of our competitors in SouthAmerica,” said Ivan Pavlovic, director of miningcrusher capital projects, Metso Minerals.“When markets were taking off in places likePeru and Chile, the competition gained someground. We have since r eorganized with amerger and placed more emphasis on winningback the market share we lost.”Metso has received some large or ders recently.At times like these, ther e is a certainfrenzy to get these large pr oduction projectsonline quickly, Pavlovic explained. “Ther eseems to be a steady demand for all sizes ofPGs and we do very well in all parts of theworld,” Pavlovic said. “Lead times ar e manageable.The lead time for larger machines area little longer. Customers can r est assured,when their project comes online, the PG will beavailable. We’re looking at a year right now.”“For most customers, when it comes totrying to size these machines and determinethe settings, it has really become a shot in thedark because of the or e grade,” Pavlovicsaid. “The engineers r ely on modeling andsimulation and the models ar e often verygood, but they do not always accurately predictgrades and particle distribution.“For mines processing large quantities oflow-grade material, the semi-mobile con-66 | ASIA Miner | May/June 2012

Primary Gyratory Crusherssystem, FLSmidth Minerals can r emotelymonitor and troubleshoot all levels of plantactivity from multiple global locations.Maintenance ImprovementsDuring the past few years, ThyssenKrupp hasgained considerable market share in Asia andAustralia. The company recently received anorder for five gyratory crushers from FreeportIndonesia. Similarly, Detlef Papajewski, headof product division crushing technology ,ThyssenKrupp Fördertechnik, receives similarrequests to accommodate more capacity.The engineers at ThyssenKrupp ar e lookingat ways to incr ease PG throughput, whichwould involve much larger drive sizes. “W ehave installed new gear sets, which allowmuch higher torque,” Papajewski said. “Wehave been doing this with gr eat success forthe last few years now.“We have also improved the overload protectionbetween the crusher motor and thecrusher,” Papajewski said. “If a blockage occurs,such as shovel tooth, a hydraulic safetyclutch separates the crusher fr om the drivetrain, which protects the motor.”ThyssenKrupp has been working on a numberof improvements. From a maintenance aspect,they are looking at new ways to improvethe oil cleaning process for the lubrication system.That extends the time between oilchanges, doubling it from six months to oneyear. “More importantly, the system better protectsthe slide bearing,” Papajewski said. “Particlesin the lubrication could do significantdamage and shorten the life of the bearing.“Another advantage to our design is thatwe have separated the lubrication for the pinionassembly from the lubrication of the slidebearing,” Papajewski said. “If the slide bearinghas experienced troubles with particles inthe return oil, this does not af fect the verysensitive roller bearings found in the pinionassembly. We have a separate bath lubricationsystem for the pinion assembly.”ThyssenKrupp has taken a dif ferent approachto the liners. “We have been working toimprove the concaves to r educe the numberof rows in order to lower downtime,” Papjewskisaid. “In some cases, when the PG is notrunning, the whole mine is down. We are lookingat ways to reduce the downtime associatedwith replacing wear parts. We are also lookingat ways to improve how maintenance is per -formed and to make it as safe as possible.”The GyroMatic control system controls allof the minimum featur es needed to run aThyssenKrupp crusher in a safe manner. “Wehave found that, if the control is managed bya general PLC and ther e is a mistake in theprogram, it can lead to big failur es on thecrusher,” Papajewski said. “We are supplyingall of our PGs with this control software free ofcharge. ThyssenKrupp PGs have a separatePLC that interacts with Siemens, Allen-Bradley, etc. It minimizes programming risksand it also has a bus connection to provide allof the information to an external PLC.“The GyroMatic also provides feedbackto ThyssenKrupp in case the customerwould like us to assist with any questions,”Papajewski said.Building on a Proven DesignIn 2007, Sandvik signed an agr eement withEarth Technica, a division of Kawasaki HeavyIndustries, to license, manufacture, sell andsupport its line of gyratory crushers. In the1960s, Japan’s Kobe Steel became a licenseefor the Allis Chalmers (AC) line of primarygyratory crushers and eventuallytransferred the line to Kawasaki. Through theyears, Kobe Steel made many designchanges before it became Earth Technica.A gyratory is a gyratory, explained VladimirNovak, product line manager gyratory crushers,Sandvik. “With similar designs, they havealmost become a commodity,” said Novak.“Some areas require more attention, such asthe spider bushing area. Everyone uses thishour-glass shaped bushing with linear contact.It’s a wear item that’s not easy to accessand control. If this bearing wears out, it willcreate more problems below in the eccentricbushing area of the crusher.”Sandvik responded with a spherical bearingfor the spider bushing. “This design has a largearea of contact and spreads the forces evenly,”Novak said. “It is very r eliable and requires almostno maintenance. Kawasaki began to usethis particular design in the early 1990s. T odate, not a single bushing has been replaced.”Sandvik’s automation system consists of twocomponents. The company’s ASRi softwarecontrols the position of the main shaft. It tellsthe operators the position, open side setting,wear liner life, etc. Using the ASRi softwar e,miners can create profiles for different crushingapplications. An instrumentation monitoringsystem protects the crusher fr om overloadsand provides opportunities for trending data.Most of the industry operates primary gyratoriesby the open-side setting. That workswell most of the time, Novak explained. “If themine cannot deliver ore to the crusher consistently,it’s either working like it should or thechamber is empty,” Novak said. “That can bedifficult on the manganese liners. After har dworking, the liners attain a hardness of morethan 450 Bhn. Sliding conditions inside thechamber shave off the hardened layer andthe liner wears prematurely.”For those types of conditions, Sandvik’s automatedsystem can operate the crusher bypower consumption. It would close the opensidesetting. The crusher would lose capacity,but the mine operator would not car e at thatpoint. The chamber would be filled. The productwould be crushed to a finer consistency ,which helps with downstr eam processes. Italso eliminates the shaving action.With tighter environmental regulations, oilspillage is a concern. One of the basic maintenanceprocedures is to inspect the r eturnoil screen to see what type of debris is in thelube system. Traditionally, when the mechanicwould open the valve, it spills and it’s sometimesa hazardous situation. The Sandvik designis similar to a drawer in a desk, turn thebypass on, pull the drawer out, and inspectthe screen. “We also have a standby lubricationsystem, filtration unit and pump,” Novaksaid. “Technicians can replace the filters withno extended downtime for the crusher.”The Sandvik PG has mechanically attachedconcave liners for the top shell. “It’s not just theextra security of holding the concave to thetop shell, but also guarantees proper spacingbetween concaves, eliminating the dangeroussituation of closing gaps,” Novak said.Weekly or biweekly someone has to inspectthe gaps. “We have 10-mm shims betweenspider and top shell flanges,” Novak said. “Ifthe tapers are worn, maintenance crews canremove the shims and r eclamp the crusherand operate it for another year or so. No needto panic and repairs can be scheduled whenit’s convenient for the mine.”Sandvik’s first PG, the unit installed at TataSteel, replaced an FLSmidth machine of asimilar size, Novak explained. “Our machineincreased capacity for them by 1,000 mt/h,”Novak said. “We removed the old crusher, installedan apron feeder and the new crusherin 19 days with no incidents. A normal installationtakes 30 to 45 days.”Realizing the need for specialized pr oductsupport, Sandvik recently created a competencecenter to support PGs in Milwaukee. “Wewill establish a global pr oduct support centerand this is just the beginning,” Novak said.68 | ASIA Miner | May/June 2012

Foreword:German Mining Technology Serves the GlobalMining IndustryAs we move into 2012, there is widespread growing demand for energy and steel, especially inemerging markets such as China, India, Brazil and Russia. Germany’s mining-equipment manufacturersare ready to respond to the new surge in demand for high technology—combined withbetter safety standards—as the key to higher production and greater efficiency.Germany leads the world in engineering expertise, especially in mining equipment and technology.German technology has a long tradition, having been designed to handle the difficult geologicalconditions found in the hard-coal mines in the Ruhr area, the Saarland and at Ibbenbüren.Over time, this technology has been developed further, so as to satisfy the requirements of a worldwidemarket.Today, almost 90% of German mining-equipment sales are generated in countries other thanGermany. While China, Russia and the United States are currently the main export destinations,other parts of the world such as Southeast Asia, Latin America and Australia are growing marketsfor Germany’s mining equipment manufacturers. German mining technology has been field-provenin both underground and surface mines in each of these markets, firmly founded on the strengthof its technical design, safety measures and environmental features.The VDMA-Mining Equipment Association welcomes all readers of the 2012 Mining Supplement,with its emphasis on how today’s German mining technology is designed with the emphasison operational and personal safety. We hope you will enjoy this publication.VDMAGlückauf!Dr. Paul RheinländerPresident of the VDMA-Mining Equipment AssociationVDMA, the German Engineering Federation, Mining Equipment AssociationLyoner Strasse 18D-60528 FrankfurtGermanyTable of Contents:A Special Supplement toEngineering & Mining Journal (E&MJ)Produced by Mining Media International11555 Central Parkway, Suite 401Jacksonville, FL 32224, USATel: +1-904-721-2925Fax: +1-904-721-2930www.mining-media.comCopyright 2012 Mining MediaSponsor: German Engineering FederationVerband Deutscher MaschinenundAnlagenbau (VDMA) e.V.Lyoner Str. 18, D-60528 Frankfurt/MainTel: +49-6966-031262Fax: +49-6966-032262www.vdma.orgGerman Equipment Sales Go from Strength to Strength with Record Export Demand ......................2Underground Mining Technology: Safer Working Conditions and Higher Productivity ......................4Surface Mining Technology: Safety and Productivity Going Hand-in-Hand ......................................6Materials-Handling Technology: Keeping Minerals Moving Around the World ..................................8Coal and Mineral Processing: Getting Out the Most, Safely and Economically ..............................10Pumping Technology: For Water, Slurries, Solids and More ............................................................14Drives Technology: Placing Power Where it’s Needed......................................................................16Safety and Productivity Across the Board: Completing the Portfolio ..............................................18Consulting Services: Taking German Experience to the World ........................................................20Vendor Matrix and Buyers Guide ....................................................................................................22Articles in this publication were researched and written by Simon Walker, European Editor for Engineering & MiningJournal. For additional information about the articles or the manufacturers highlighted here, pleasecontact Mining Media (info@mining-media.com) or one of our regional representatives.Published by MiningMedia Int’lin cooperationwith the VDMAEQUIPO | INGENIERÍA | TECNOLOGÍA2012 • VDMA MINING SUPPLEMENT VDMA 1

Moving minerals from mine to plant; moving overburden; crushing,stacking and reclaiming; German companies are at the forefront ofmaterials-handling technology. And, of course, that is not really surprising,given the country’s background in the large-scale opencastlignite mining that has kept its power stations fueled for decades.German materials-handling systems think big, and can movemillions of cubic meters of material safely and economically whileminimizing their impact on the environment. Reliability is a key feature,with no room for complacency when it comes to keeping the beltsrunning, the screens clean and the rock flowing.One of the world’s leading suppliers of plants and systems formining, processing and handling raw materials and minerals,ThyssenKrupp Fördertechnik’s equipment is used in open-pit mines,stockyards, port terminals, power plants and quarries throughout theworld. Innovative concepts, decades of expertise and a global presenceenable it to provide expert advice, planning, engineering, design,construction, delivery, installation, commissioning andafter-sales service, the company says.Rema Tip Top Industrie’s product range focuses on wear- andcorrosion-protection and noise reduction, right through the miningand mineral-processing cycle. Examples include lining and repair systemsfor extending the service life of excavator buckets, truck bodiesand tires, and anti-caking coatings to reduce material build-up andwear in excavator buckets.For conveyors, the company’s product range includes pulley covers,belt covers, splicing systems, belt cleaners and skirting systems,and wear-resistant rubber and ceramic liners for chutes and slideareas. It also offers anti-abrasion linings for crushers and screens,and rubber linings for ball mills, together with corrosion-protection linersfor tanks and pipework in processing plants.Bending Belts for Environmental ProtectionBased in Beckum, Beumer Maschinenfabrik GmbH & Co. KG offers itsmaterials-handling capabilities right across the mining and mineralssector. The company states it is an international leader in the manufactureof intralogistics for conveying, loading, palletizing, packaging,sorting and distribution technology. Together with Crisplant a/s andEnexco Teknologies India Ltd, the Beumer group employs about 3,000people and has an annual turnover of about €450 million.Having been in business for 75 years, Beumer began developingcurved belt conveying systems some 50 years ago, claimingto have originated the theoretical dimensioning fundamentals forthese types of installation. Since then, the company says, it hascontinued to develop the technology, both for open troughed belts

Beumer specializes in designing and building curved belt conveyors.and for closed, tubular belt conveyors.The company has been involved with various aspects of conveyor designsince its formation with its founder, Bernard Beumer, having inventedand patented a conveyor idler that featured a labyrinth seal. Fromthat starting point, successive generations of the Beumer family havebuilt the company to be a significant player in the international market.Under a recent contract, the company is supplying a troughed beltconveyor, capable of negotiating horizontal curves, to Nordkalk, one ofEurope’s major manufacturers of lime products. A key feature of Nordkalk’srequirements was for the limestone-transport system to be environmentallyfriendly, Beumer explains, with the 8.7-km long conveyorbeing installed in the north of the island of Gotland in the Baltic Sea.This, the company adds, is the largest limestone-production operationin Scandinavia, supplying limestone to customers around the BalticSea, with part of the quarry’s output being processed into quicklime byNordkalk’s subsidiary, KPAB.Every hour, 1,500 mt of limestone will be transported from a newquarry at Bunge to the plant in Storungs, where it will be gradedand stockpiled. “The Beumer troughed belt conveyor was a clear favoriteof ours compared to other transport options,” said Mikael Lindberg,plant manager for Nordkalk. “It uses little energy, is quiet andenvironmentally friendly.”Beumer notes it was crucial for Nordkalk to preserve the island’scountryside during transport. This goal was achieved, it says, becausethe troughed belt conveyor can navigate particularly tight horizontalcurves. This allows for flexible, continuous routing, and the opportunityto bypass sensitive areas or to negotiate obstacles such as rivers,streets, railways and so on, while preserving the existing terrain.Vibration Expertise for the World MarketHeadquartered in Dülmen, Jöst GmbH & Co. KG specializes in applyingvibration technology to handling and processing a wide variety of bulkmaterials. With more than 90 years’ experience, the company manufacturessophisticated machines and systems mainly based on vibrationtechnology, together with solutions for thermal processes.Looking specifically at Jöst’s vibration technology for the handlingof bulk materials in primary industries, it has a wide product range thatincludes the Extrovib system, grizzly screens and feeders, scalpingscreens, banana screens, classifying screens, dewatering screens, vibratingfeeders and drying systems. Its special screens include its Greccoscreens, Trampolin flip-flow screens, fine screens and non-blindingscreens among others, while it also has expertise in the design and supplyof electric control and regulation for machines and complete systems.The company says that screening technology is the centerpiece ofits product range. Aside from its main plant in Germany, Jöst manufacturesits machines and systems in Australia, China, France, India,South Africa and the U.S., with the Australian, Chinese and SouthAfrican activities being mainly focused on the production of heavy-dutyvibration screens and vibrating feeders.During 2011, Jöst won a major order for seven large feeders andscreens for Rio Tinto’s iron ore operations in the Pilbara region ofWestern Australia. The screens will be used at the Cape LambertPort B facility to sort lump ore and fines ahead of ship-loading. Thenew port facility will add 50 million mt/y of iron-ore capacity in phase1, with a second phase proposed to double capacity.Each double-deck screen, fully assembled and tested at Jöst Australia’sWelshpool facility, has a vibrating mass of 37.9 mt mounted onan isolation frame weighing 19.2 mt. Measuring 4.27 m wide, the screenswill be fed using diverging feeders to spread the ore over the full width ofthe screen, thereby using the maximum available surface area. The screendesign was developed ‘in-house,’ Jöst says, using finite element modelsthat were checked against factory test results using strain-gauge recordingsfor verification. Fully modal analysis was also undertaken to ensurea full understanding of the frequency responses of the screens.In another application, Jöst recently delivered a high-capacityscreening system for a new port complex that serves as a central distributionpoint for coal supplies to a certain country’s power plants andsteel mills. The installation comprised two high-capacity screens togetherwith discharge and distribution feeders.Two linear oscillators, constructed as vibratory banana-typescreens, are used for the screening function. The screens have a screeningarea of 4.0x8.3 m (33.2 m 2 ) each. The special slotted grid systemused gives high throughput rates and can be quickly replaced becauseof its segment-shaped design. The company explains that differentconveying rates on the screen are achieved because of the variousscreen-deck angles, so the product layer remains thin and bridging resultingfrom material pressure is avoided.Heavy-duty vibrating screens is one area of Jöst’s specialization.VDMA2012 • VDMA MINING SUPPLEMENTVDMA 9

VDMAURACA PUMPENFABRIKGmbH + Co. KGSirchinger Str. 1572574 Bad UrachWeb: www.uraca.deVoith Turbo GmbH & Co. KGVoith-Str. 174564 CrailsheimWeb: www.voithturbo.comWILO SENortkirchenstr. 10044263 DortmundWeb: www.wib.comVattenfall Europe Mining AGMining ConsultingVom-Stein-Str. 3903050 CottbusWeb: www.vattenfall.deWELLER Pumpen GmbHWesticker Str. 44–4659174 KamenWeb: www.weller-pumpen.deWirtgen GmbH MaschinenbauReinhard-Wirtgen-Str. 253578 WindhagenWeb: www.wirtgen.deADVERTISING INDEXBeumer Group GmbH & Co.KG.................................................VDMA 3Draeger Safety AG & Co. KG aA ............................................VDMA IFCGmbH & Co.KG ......................................................................VDMA 30Eirich.....................................................................................VDMA 11Erlau Ag ................................................................................VDMA 19Hazemag ...............................................................................VDMA 13Kamat Pumpen GmbH & Co ....................................................VDMA 5Liebherr Holding GmbH ...........................................................VDMA 7GmbH Bauma 2013.................................................................VDMA 8RWE Power International RE GmbH .......................................VDMA 21Voith Turbo GmbH............................................................ VDMA 15, 17VDMA 30VDMA MINING SUPPLEMENT • 2012

2012 CalendarConbuildMining 2012May 2-5, Indonesiawww.mmiasia.com.sgChina NickelMay 23, Shanghai, Chinawww.immevents.com/international-mining-eventsMining Technology & Innovation SummitJune 6-8, Perth, Australiawww.miningtechsummit.comICS JakartaMay 7 -11, Jakarta, Indonesiawww.coaltrans.com6th Asia Mining Partnering Forum 2012May 24-25, Beijing, Chinawww.asiaminingforum.comEMD SeminarJune 14, Jakarta, Indonesiawww.emdindonesia.com5th Kimberley Energy & Resources DevelopmentBroome, Australiawww.informa.com.auWorld Mining Investment Congress 2012May 27 – 31, Londonwww.terrapinn.com/terrapinneventsCentral Asia Mining CongressJune 18-21, Almaty, Kazakhstanwww.terrapinn.comMining Mongolia-90May 16-19, Ulaanbaatarwww.future-mongolia.comMining 101, June 5, Melbourne, Australiahttp://www.beaconevents.com/2012/MiningWorkshop2012Jun/en/Home/index.jspCoal Export InfrastructureJune 18 – 20, Brisbane, Australiawww.beaconevents.comFuture MongoliaMay 16-19, Ulaanbaatarwww.future-mongolia.com18th Coaltrans AsiaJune 3-6, Bali, Indonesiawww.coaltrans.comMine Site InfrastructureJune 18 – 20, Perth Australiawww.beaconevents.com.au2nd Coaltrans MongoliaMay 23-24, Ulaanbaatar, Mongoliawww.coaltrans.comCarbon Economics for the Resources SectorJune 5-6, Perth, Australiawww.resourcefulevents.com.auPNG Mining & Logistics Conference 2012June 13-14, Cairns, Australiawww.iir.com.auResources and Energy SymposiumMay 21-23, Broken Hill, Australiawww.symposium.net.au2012 China International Exhibition on Coal Processing& Utilization and Coal Chemical IndustryJune 6, Beijing, China. www.shixinlamp.com8th Balikpapan ExpoJune 14-16, Balikpapan, Indonesiawww.sinarexpoprima.com72 | ASIA Miner | May/June 2012

Supplier NewsNew mining contract for Leighton AsiaLEIGHTON Asia has been awarded a seven-yearcontract worth about Aus$420 million to pr ovidemining services to PT Marunda Grahamineral inCentral Kalimantan. Located in Laung T uhup ofMurung Raya Regency, this coal project involvesthe annual extraction of more than 2 million tonnesof high-quality thermal and coking coal by traditionaldrill and blast, and truck and shovel methods.Securing the contract is a significant initiative asit represents a first strategic move into coking coalmining in the emerging Central Kalimantan regionfor Leighton Asia, which operates in Indonesiathrough PT Leighton Contractors Indonesia.Under the contract, PT Leighton ContractorsIndonesia will be responsible for providingproject management, mine planning, surveying,supervision, site security, materials, heavyequipment, equipment maintenance, labour,transportation, medical services, consumablesand site infrastructure.The contract was won on the back of PTLeighton Contractors Indonesia’s solid contractmining and remote infrastructure competencyand experience. It proactively positions the companyto provide support in further developing thecountry’s vast minerals and resources potential.The company is currently involved with two coaland two gold mining projects in Indonesia.PT Leighton Contractors Indonesia presidentdirector Justin Colling says, “W inning this contractis a testament to our solid track record andthe experience accumulated over the pastdecade of working in Indonesia. W e are veryproud to have won such a significant awar d,which is integral to our strategy of securingmajor high-quality coking coal mining pr ojectsin Central Kalimantan. This contract award fromPT Marunda Grahamineral reaffirms our competitiveposition in Indonesia as a leadingprovider of total mining solutions for our clients.”Leighton Asia, India and Ofshore managing directorIan Edwards says, “We’ve successfullydemonstrated our ability to add value to ourclients’ projects over many years, both throughthe quality of our people and the safety and reliabilityof our operations. With a solid track recordin the contract mining sector, we thrive on providingworld-class solutions to our clients.”Leighton Asia has received a Letter of Awardwhich requires it and PT Marunda Grahamineralto finalize contract terms and conditions.While this pr ocess is ongoing, PT LeightonContractors Indonesia is mobilizing to siteunder an Agreement for Advance Works.Since establishing a pr esence in Asia in1975, Hong Kong-headquarter ed LeightonAsia has gone from strength to strength as oneof the region’s leading construction and miningservice providers. Its portfolio of key infrastructure,contract mining, civil and building projectscovers a regional footprint that curr ently includesBrunei, Cambodia, China, Guam, HongKong, Indonesia, Laos, Macau, Malaysia, Mongolia,the Philippines, Singapore, Taiwan, Thailandand V ietnam. Leighton Asia is whollyowned by Australia’s Leighton Holdings.May/June 2012 | ASIA Miner | 73

Supplier NewsGemcom grows along with Asia’s mining industryCENTRAL Asia and Mongolia are major growthareas for the mining industry and GemcomSoftware International is firmly established inboth regions supplying a package of qualityproducts backed up by full service which benefitsall users, large and small.Gemcom’s president Rick Moignard saysthe company’s big expansion markets are inAsia and these markets are served by officesin Kazakhstan and Mongolia. “In Central Asiawe have signed contracts with a number ofmajor players, including NRC, Kazmys andArcellor-Mittal, all of which have big opera -tions not just in the r egion but around theworld and they are global contracts for us.“It’s a very good business for us in Kazakhstanand it’s the fact that we supply both thesoftware and the services that has made itwork. It’s also because we ar e working withcompanies to set up pr ocesses around howtheir software implementation should be andwhat standard practices should be which enablesthem to r oll those solutions globally .Companies want to pursue this because findinggood geologists, mining engineers andother professionals is a challenge everywhere.”Rick Moignard says gr owth in sales ishappening all over the world for Gemcomwith record sales in of all five of its regionsin the past 12 months. “Every r egion soldmore of our pr oduct while our servicesbusiness is up in every r egion twice whatit was the previous year.”“This is because of the market, the shortageof labour, and the fact we can supplythe software and the services. All of thispackaged together is a compelling storyand is very much a focus of ours. We wantour customers to get the most value theycan out of the product so we’re not lookingat just dropping it in their laps and saying‘here you go, take the product away’.”Commenting on the company’s global expansion,Rick Moignar d says Gemcomseems to be able to find the next place that isgoing to open up to mining. “For instance,Gemcom’s Kazakhstan team with some clients at the opening of the Kazakhstan office last year.we’ve been in Mongolia for five or six years.We set up and worked with the gover nmentto help set the standards and we have beenable to mature that into an office and now intoa regional office. Initially in Kazakhstan five orsix years ago we had a r e-seller and thenmerged that re-seller into our business andhave grown every year since.“This was also the case in India. W e werethere long befor e anyone else and establishedour presence. Today, in Africa our businessis really strong. We did a lot of work inWest Africa and are now doing a lot more inEast Africa. Most of this is out of the regionaloffice in Johannesburg although we have asatellite office in Ghana and are looking to setup a third office in West Africa to cover moreof the French-speaking area.“Indonesia is another gr eat market. W ehave hit the coal market ther e hard and theMinex product is well recognized. We havean office in Jakarta and have major customerslike Banpu and PT Borneo that are installingthe product and putting in processesaround it. We are strong in the Philippinesand have been there for a long time. Thingsare looking very good there and it has a verystrong future,” Rick Moignard says.“There will be some new pr oduct roll-outslater in the year and Gemcom is looking atsome acquisitions involving people whoseem keen to work with us going forwar d.These deals will enable us to introduce reallygood components that some people havebuilt in certain areas, then take them globallyand have them work within our suite of products.This helps our customers because wecan provide more robust solutions to bettersuit their needs,” he adds.Hitachi to expand Indonesian capacityHITACHI Construction Machinery will boostoutput capacity in Indonesia to meet demandfor construction, for estry and mining equipment.The annual capacity of the company’ splant in Cibitung, West Java, will rise 67% to5500 units by March 2014, from 3300 currently.Hitachi Construction Machinery will alsobuild a second Indonesian plant in Cibitungto make underground carriages as part of aUS$570 million plan to expand its ability toproduce large mining equipment.The company’s chief executive officer MichijiroKikawa said recently that Indonesia’s centralbank was forecasting economic growth toaccelerate to as much as 6.7% this year as thegovernment boosts spending on railways, airportsand roads. Across the industry, excavatorsales in Indonesia will rise 40%, faster thanan estimated 15% increase in India. “Demandin Indonesia will grow at a faster pace than wehad thought and we ar e accelerating expansionto catch up with demand.”He said that Indonesia, North Americaand Japan would boost global demand forexcavators by 7% to 10% in the financialyear starting April 1. Demand in Eur opewould fall because of its sovereign debt crisis,while Chinese sales were likely to be inline with global growth aided by a recoveryexpected after mid-2012.Construction machinery makers are relying onsales in countries such as Indonesia after Chinaslowed public works and housing projects.74 | ASIA Miner | May/June 2012

Product NewsNew generation Steinert wet drum separatorsMANY wash plant operators overlook the significant cost implicationsthat an ineffective dense media recovery circuit can have onoverall plant operating cost. Magnetite can be lost at various transportand recovery points in the plant ranging fr om airborne dust,spillage, ineffective draining and rinsing, and inef ficient magneticrecovery. In most cases, it is cumbersome and operators need toadhere to a strict condition monitoring and maintenance regime inorder to keep magnetite losses at a minimum.Traditional Wet Drum Magnetic Separators’ operating ef ficienciesare influenced by a number of factors including:• Volumetric slurry feed rate.• Magnetite quality and particle size• Magnetic concentration of feed slurry• Overall magnetic loading• Non-magnetic solids concentration• Overall percentage of solids in the feed• Uniform feed distribution• Magnet radial position• Drum positioning (Horizontal and vertical)• Frequency of plant stop startsAs operational issues make it extremely difficult for plant operatorsto maintain all the above optimally for all conditions, Steinert has embarkedon the development of a more user-friendly Wet Drum Separator(WDS) which is less sensitive to the fluctuations that wouldnormally be difficult for traditional separators to cope with. The resultSteinert Australia’s Wet Drum Separator workshop.is not only a decrease in time spent optimizing equipment but also anincrease in capacity and recovery efficiency, resulting in both capitaland operational cost savings.Unlike traditional separators, Steinert’s new generation of WDSmake use of special magnet arrangements which result in a 120%increase in the average magnetic force index measured over theentire operating gap through which the slurry passes. The surfaceprofile of the magnetic field also allows for an incr ease in magneticloading of the drum by allowing for uninhibited transportationof the magnetite around the drum.May/June 2012 | ASIA Miner | 75

Product NewsLow-emission underground trucks from SandvikSANDVIK Mining has introduced two new underground miningtrucks, the first to offer low-emission engines, which according tothe company makes them the cleanest underground trucks on themarket. The new 50-tonne capacity TH550 and 40-tonne capacityTH540 are offered with energy-efficient, low-emission enginescomplying with EPA Tier 4i/Euro Stage IIIB emissions standards.In addition, they have the smallest envelope size in their payloadclass and are designed to operate fully loaded on long spiral gradientsof up to 20% at high speeds. Available as an option, the Tier4i/IIIB Volvo engine on both trucks consumes less fuel, pr oducesfewer emissions and has better torque characteristics than the engineson their predecessor trucks, the Sandvik T50 and T40.According to Sandvik Mining’s product line manager for undergroundhard rock mining, Scott Rowe, the TH540 and TH550 arethe only trucks currently available with this engine option. “Thesetrucks can provide a healthier environment for all personnel workingunderground. For example, if these engines ran in the centreof a large city, the exhaust fumes coming out of the engines wouldbe cleaner than the air they were taking in.”A new Sandvik 50-tonne capacity TH550 underground truck with a low-emission engine.Scott Rowe says that in developing its new undergr ound truckrange, Sandvik Mining paid particular attention to envir onment,health and safety (EHS) issues, as well as pr oductivity and reliability.“As well as our low-emission engine option, both trucks incorporateROPS/FOPS-certified operator compartments, easythree-point access into the cabin and to the top of the machine,improved visibility, ground level daily maintenance and safety railsalong the top of the machine.“Improved ergonomics – which mean reduced fatigue levels overlong shifts – include rubber-mounted and isolated cabs, improvedsound and heat insulation, mor e efficient air conditioning andseats with low frequency suspension as standard.”Daily maintenance requirements have been made simpler, moreconvenient and safer. “All checking points for hydraulic and engineoils, coolant levels and air filters are at ground level, we havequick fill couplings for fluid and the belly plate opens by swingingout to the side,” says Scott Rowe. “The engine cooler is easy toclean and both trucks offer automatic central lubrication systems.”In the event of a machine pr oblem, Sandvik’s built in VehicleControl and Management (VCM) diagnostics/tr oubleshootingalarm and log system allows the operator to quickly identify itssource and cause. Full operating logs can be downloaded to astandard laptop.76 | ASIA Miner | May/June 2012

ADVERTISING INDEXAden Services........................................ 72AEL Mining Services .............................. 37AMEC Convention 2012 ........................ 69Ashland Hercules................................... 41AusIMM International Conference .......... 45AusIMM Life of Mine 2012 ..................... 53Subscribe now to the ASIA Miner magazine and weekly e-news service.Please complete subscription details below:Mr/ Mrs/ Ms/ Miss/First Name........................................................................................Surname...........................................................................................Company........................................Position..................................Postal Address..................................................................................Suburb/ Town................................Postal Code...........................Country.............................................................................................Phone ( )..................................... Fax ( ).................................Email.................................................................................................FOR 6 HARD COPY EDITIONS - US$120.00Total subscriptions.........................(Weekly e-news service is free.)I would like to pay by credit card.Please charge my card in the amount of US$Visa Mastercard AMEXTotal US$................................Austhai Geophysics ................................. 3Austmine ............................................... 76Brunner & Lay........................................ 47Caterpillar ................................................ 9Centerra Gold.................................... 7, 20Coaltrans Asia ....................................... 59Emerson................................................ 75ESCO ................................................... BCEurotire.................................................. 34Fluidcon................................................. 73Gemcom Software................................. 55Geometrica............................................ 25Global MI’n’ES........................... 60, 61, 77Go North – Ontario ................................ 31IMA-HSET ............................................. 70L&M PowerTrain Parts ........................... 17Leighton ................................................ 13Logantek ............................................... 76Ludowici................................................ 27Manas Resources............................. 22-23MHE Demag.......................................... 75Micromine Consulting ............................ 19Mines & Money Beijing........................... 39Mining Mongolia .................................... 35Ochir Undraa (Mera) ......................... 32-33Card Number.............................................Name on card.............................................Expiry Date......................................................Signature.........................................................PT Baradin............................................. 76Putzmeister ........................................... 71Ravensgate ........................................... 56Date...........................................................I would like to pay by cheque.Please make cheque payable in US dollars to Mining Media, Inc.I would like to pay by bank transfer.For transfer information contact Lorraine Mestas, phone +1 303 283 0640 x 207or email lmestas@mining-media.com.Return to: The ASIA Miner, Mining Media, Inc, 8751 East Hampton Ave, Suite B-1,Denver, CO, 80231, USA, Fax +1 303 283 0641, or scan & email to tholzer@mining-media.com.For more information or if you have any queries, please phone Tanna Holzer at+1 303 283 0640 x206 or email tholzer@mining-media.com.WWW.ASIAMINER.COMRedpath Group...................................... 49Resources & Energy Symposium ........... 79Sandvik ................................................. 21SatNetCom ...................................... 42-43SDV Logistics ........................................ 11Siemens ................................................ 15Sioux Corporation.................................. 72Steinert................................................. IFCStriker Crushing....................................... 5Trio Engineered Products....................... 57Tsurumi.................................................. 36VDMA feature From ............................... 71Verderflex............................................... 51Weir Minerals ................................. 29, IBC78 | ASIA Miner | May/June 2012

Exploration SpotlightDrilling confirms high-grade Matilda goldExploration work at a Blackham Resources’ project in Western Australia.HIGH-GRADE gold intersections have been confirmed in the latest drillprogram at Blackham Resources’ Matilda project in Western Australia’sWiluna greenstone belt. The 12-hole pr ogram at M10 pr ospect wascompleted in February , with highlights including 7 metr es @ 14grams/tonne gold from 74 metres, 16 metres @ 4.5 grams/tonne goldfrom 34 metres and 7 metres @ 3.48 grams/tonne gold from 14 metres.These results also extend the mineralization up-plunge to only 12vertical metres below the surface, with the 7 metre intersection from14 metres the shallowest economic mineralization found to date atM10. The company says these results confirm the potential for highgradeore at shallow depths and bodes well for open-pit mining economics.The company has r eleased a new estimate for the Regentdeposit at Matilda with the inferred resource up by 193%. There arenow 3.5 million tonnes @ 2.1 grams/tonne for 237,000 ounces ofgold. This takes total Matilda project resources to 12.457 million tonnes@ 1.9 grams/tonne for 757,000 contained ounces.The Matilda Gold Project covers 600sqkm about 19km south of thetownship of Wiluna, taking in the Matilda and Williamson gold mines andnumerous deposits and prospects, including Regent and Galaxy. ApexMinerals operates the nearby Wiluna gold mine which has a resource of12.7 million tonnes @ 5.4 grams/tonne gold. The local r egion has producedmore than 4 million ounces of gold, however there has been littlesystematic exploration in the area for more than a decade.Blackham acquired the project in November 2011, after ASARCOclosed its seven open pits in 1996. Most of these pits were mined toless than 50 metres and have significant mineralization outside the pitlimits. Historically, Matilda has produced 265,000 ounces of gold andthe company has since validated 601,000 ounces of remaining goldand says there is good potential for further discoveries.The company says the mineralization is now recognized in four discretezones and remains open to the south as potentially shallowsupergene mineralization and quartz-vein mineralization. The lateritemineralization occurs just beneath the surface and is generally lowgradebut was successfully mined from other deposits within the Matildaproject and treated via heap leach methods.Upper and lower supergene mineralization is evident within the weatheredzone extending laterally above the primary mineralization,which occurs in quartz veins with shoot geometrics or saddle r eefs.These plunge at shallow angles to the north and ar e consistent withother Matilda deposits. The company says it is anticipating additionalresource increases once the position of the main shoot’s intersectionwith the surface is tested.Blackham is also evaluating the development of the Scaddan andZanthus Energy Projects for the export of coal and development of acoal to liquid (CTL) facility. These projects, located near Esperance,Western Australia, contain world-scale coal deposits totalling 1.4 billiontonnes with more than 10,600 PJ of energy at shallow depth andvery low mining costs. The project has the potential to produce 860million barrels oil equivalent, consisting mainly of a clean diesel, aswell as additional power for the r egion. The Scaddan project is surroundedby complimentary infrastructure about 60km north of thetown and major port of Esperance and 10km east of the Esperanceto Kalgoorlie highway, gas pipeline and railway line.More resources and higher grades at SangdongAN update of resources at Woulfe Mining Corp’s Sangdong TungstenMolybdenum Project in South Kor ea has increased the tungstengrade below level 3 by 47% and the molybdenum grade by 34%. Undergrounddrilling continues to produce strong results, which will beused to progressively update the resource estimate.The new NI 43-101 report was completed by Tetra Tech Wardropand shows that the indicated tungsten resource in the upper sectionabove level 3 increased by 195%, excluding the hanging wall ore bodyas further work is needed to fully appr eciate the stability for miningafter the main and footwall have been mined.Even with the significant incr ease in indicated resource above thevalley floor, the inferred resource in the same area increased by 2%,which means an overall increase in resources of 47% for this section.The resource for the upper section is 16.4 million indicated tonnes@ 0.45% tungsten trioxide and 0.04% molybdenum disulphide, and19.4 million inferred tonnes @ 0.44% tungsten and 0.05% molybdenum.The total inferr ed resource below the valley floor stands at34.519 million tonnes @ 0.47% tungsten and 0.07% molybdenum.The lower area below level 3 was modelled given the higher level ofunderstanding of the mineralization and this r esulted in the highertungsten and molybdenum grades. The company says this was understandableas it approaches the historically drilled high grade molybdenummodelled by KORES below the skarn mineralization.Woulfe is continuing to drill, explor e and sample within the uppersection of the old mine and plans to dewater down to level 4 in thenear future to allow these efforts to be expanded. Definition and refinementof the Sangdong models will continue as more undergrounddrilling is completed. This data will incr ease the sample density increasingthe area meeting the criteria for the indicated category.The latest underground drilling results from Sangdong include significantFootwall Zone intersections of 3.9 metres true width at 0.81% tungstenand 7.1 metres true width at 0.54% tungsten. The only significantMain Zone intersection was 6.9 metres true width at 0.50% tungsten.The drilling program is targeting unmined mineralization in the uppersection of the mine above the curr ent water level for mine planningand feasibility reserve estimation purposes.80 | ASIA Miner | May/June 2012