Galane Gold approves five year mining plan
Chakalisa Dube | Friday April 10, 2015 12:24
The company made the announcement in its audited annual financial statement for the year ended December 2014 released early this week.
As part of its five-year plan, the gold miner has indicated that it intends to utilise its Tau underground pit resources. Galane has previously stated its desire to exploit mineral resources of approximately128, 600 ounces of gold at Tau, through underground mining.
“Development will in some instances be through ore and it is expected that Tau will provide ore to the plant between now and the commencement of stopping according to the company.
During the underground development phase, the company intends to commence exploration from underground to attempt to confirm the extension of the Tau ore body at depth,” reads a statement from the company.
Due to the continued weakness of gold price, the company has also decided to redesign the pit shell at Golden Eagle pit based on a $1,000 gold price.
Galane chief executive officer, Nick Brodie noted in the statement that mining on the $1,400 pit shell was stopped in the fourth quarter when the company reached 935 metres mining level.
The Matsiloje based miner has commenced extensive grade-control drilling to further confirm the ore body and the new pit design at Golden Eagle. “It is envisaged that the company will commence mining again in the second quarter (of) 2015 and that the mine will provide ore to the end of third quarter 2015.
“The Company has also commenced a study on the economics of continuing to mine at Golden Eagle as an underground operation,” he said.
In 2013, the mine announced an indicated mineral resource of 12,735 ounces and 11,443 ounces of inferred mineral resource at Tekwane.
Galane further stated that it has now completed work on the mining and processing methodology at Tekwane, which will be strip mining and gravity separation. The gold mineralisation is in a flat-lying quartz rubble bed within the soil profile, close to surface.
The mining licence for Golden Eagle has already been issued by the Department of Mines and the company expects to commence mining in the second quarter of 2015.
Brodie further said the mine plans to selectively mine the high-grade areas in the third and fourth quarters of 2015. Mining of the original Tholo pit plan has been completed, but the country’s sole gold mining firm has said it has identified an opportunity to reclaim ore left behind in the access roads, and this will be mined during Q1 2015.
In 2014, the company completed several projects including the screening plant, liquid cyanide, pre-oxidisation circuit and commencement of the re-automation of plant controls.
The major project for 2015 is implementing a gravity concentrating circuit into the plant, to concentrate free gold before leaching is initiated. This in response to positive results received on the recovery of free gold from the company’s existing ore resources.