Galat Sufar North

Initial grab sampling from Galat Sufar North returned gold grades of 8.1 and 2.3 g/t Au from sericite – carbonate – hematite altered schists. Mapping defined a package of greenschist grade metamorphosed volcano sediments in shallow thrust contact with a post deformational syenite.

Mining

A total of 79.9 Mt of crusher feed at a gold grade of 1.11 g/t is contained within nine pits across the two deposits, along with 119.2 Mt of waste, resulting in a strip ratio of 1.49:1.

A combined mining schedule demonstrates that a processing rate of 6.0 Mt can be sustained for 14 years, including an initial ramp up period in Years 1 and Year 2. A pre-production period of six months is utilized to strip waste from both deposits and stockpile minor amounts of crusher feed, ready for the commissioning of the processing plant. The pit at WD is mined for the first five years and blended with material from GSS. An elevated cut off grade over eight years maximises early returns by blending the significantly higher-grade material from the WD deposit and gain access to the higher grades at depth in the Main and East pits. The last six years rehandle the low-grade stockpiles.

Mineral Processing and Recovery Methods

A comprehensive program of metallurgical testwork was conducted at SGS to identify the optimum processing route, generate recovery equations and provide data for plant design. Mineralogy, comminution, leach, carbon modelling, thickening and rheology tests were conducted on a large range of ore lithologies and domains.

The Block 14 ores are amenable to a conventional gold processing scheme incorporating crushing, SAG and ball milling, cyanide leach, carbon adsorption, elution, electrowinning and gold smelting. The comminution circuit and gold recovery plant design is based on a throughput rate of nominally 6.0 Mtpa.

Trade-off studies have identified that there is economic benefit in including a pre-aeration stage ahead of cyanide leaching to reduce cyanide consumption rates and that the Kemix Pumpcell CIP circuit provides the optimum carbon adsorption circuit design.

The proposed process route is a proven and robust concept with very little associated risks, apart from the typical operational hazards stemming from the reagents that are used in the process. The plant design will take cognisance of this fact and good engineering practise and industry standards will be applied to design a safe operating plant.

Environmental

There are currently no objections to the development of the Project. There are no receptors in the area, with no officially recognised human settlements in proximity. The Project has undertaken an environmental assessment and data collection is continuing. The arid conditions and sparse vegetation of the concession provide a difficult environment, which is primarily nocturnal. The use of remote infrared cameras provides the opportunity to record these nocturnal animals. Other wildlife records are captured through daily observations, to the extent possible. Climate data and weather data has been collected and compared, to provide reliable data for the EIA and design teams. Water data from the existing boreholes and Talat Abda well has been collected and there are no other known sources of potable water and few potential water users who legally reside in the vicinity. Social data continues to be collected, through monitoring of artisanal miner’s activities. All information collected will be used in managing social and environmental impacts associated with the Project.

Economic Analysis

Based on a gold price of US$1,350 /oz, the Project has a pre-tax IRR of 38.5% and pre-tax NPV5% of US$723M.

The Project has a post-tax IRR of 33.3% and a post-tax NPV5% of US$607M. The Pre-tax undiscounted payback period is 2.5 years and Post-tax, undiscounted payback period i s2.9 years from start of production.

The NPV and IRR are most sensitive to the metal price / recovery, pre-production capital costs and plant and mine operating cost.

 

Mining and Opportunities

Material haulage from Wadi Doum could be improved if long distance haulage units which can be loaded at the face are utilized. This would negate the need for ROM stockpiles and re-handling of the crusher feed, potentially saving US$0.40 – 0.50 /t of crusher feed from Wadi Doum.

A review of the hydrogeology will lead to a greater understanding of the effects of groundwater on the pit walls (if any) and could allow for further steepening.

 

Mineral Processing

One opportunity has the potential to reduce operating costs or improve recovery and will be investigated with additional test work:

• Undertake an economic trade-off / optimization study on increasing silver recoveries by increasing carbon movement.

 

Mining Leases

A Mining Lease is granted upon application by an existing EPL holder, subject to the provision of a feasibility study, a development and operating plan and an environmental management plan.

Under the terms of the concession agreement, after consultation with the MoM, MSMCL shall incorporate a new company for the purpose of holding the issued mining lease. The permit is granted for an initial 30-year period and may be renewed for subsequent 10 year terms until the mining deposits are exhausted.

A Mining Lease will be granted by the Minister of Minerals and gives the holder the exclusive right to explore for and mine mineral deposits within a certain parcel of land for which the permit is granted.

The Mining Lease gives the holder the right to construct mineral processing and support facilities and to operate these facilities to produce saleable mineral products that the permit holder will be entitled to sell on world markets.

Upon grant of the Mining Lease, the permit holder is required to give the Republic of the Sudan an un-dilutable free-carried 20% interest in the company holding the title to the permit.

Exploitation Permits are treated as real property rights with complete right of mortgage and liens. Both exploration and mining permits are transferable rights.

 

For information on mining permits around Block 15, 68 and others please contact info@kisconsultants.net