The Extractor Magazine

Trigon Metals suspends underground ops at Kombat and evacuates staff after pump failure

Editor — Fri, 17 Jan 2025 03:43:46 +0000

Trigon Metals Inc. suspended underground operations at Kombat Mine on January 16 after two main dewatering pumps failed.

The company anticipates that the pump failure will ultimately flood the underground mine over the coming days.

Trigon Metals said all personnel exited the affected areas to ensure safety and equipment was removed.
Kombat Mine has been flooded three times in its more than 172 years of operations.

The first time it flooded was in 1925, when the Otavi Minen und Eisenbahn Gesellschaft (OMEG) was running the mine.

The company suspended operations until the 1950s, when Tsumeb Consolidated Limited (TCL) bought the mine. TCL worked the mine until 1988, when the second flooding happened.

The third flooding happened in 2007/8, when Weatherly International had taken over from TCL.

Trigon Metals started underground mine operations training and conducted the first blast in February 2024 ahead of schedule after installing two powerful (2.5 MW) submersible pumps in the main shaft at Asis West between July and August 2023.

Trigon Metals announced achieving commercial production from the underground operations at Kombat Mine as of April 30, 2024.

However, in June 2024, the company suspended underground operations when the two main pumps failed. At the time, Trigon Metals had dewatered the shafts down to 331 metres from the shaft collar.

The company installed the pump body (known as the wet end) on July 26, 2024, and started pumping water from the mine on that day.

On September 19, 2024, Trigon Metals announced it had reached a key milestone, having mined an average of 980 tons of ore daily from its underground operations over 30 days.

The company announced that it would pause its open pit operations at the end of that month.
There are plans to expand the mill’s throughput from 30,000 tons to 60,000 tons per month to cater to additional underground operations material.

Trigon Metals revised its 2025 copper production guidance from 12 million to 13,4 million pounds of copper to 8,3 million to 9,2 million.

The company also reduced its expected mined and processed copper grades to between 1.52% and 1.79%.

On December 3, 2024, Horizon Corporation Limited proposed a loan of US$5 million to allow for the conclusion of the evaluation and due diligence to acquire 100% of its ownership interest in the Kombat Mine.

The companies signed a binding loan agreement on December 16, 2024, with a valuation of US$30 million, subject to definitive agreements, shareholder approval, regulatory consent, and other closing conditions.

Trigon Metals CEO Jed Richardson said the latest pump failure will not affect the deal with Horizon.
“Today’s pump failure is an untimely challenge that we are working to overcome. We applaud the team at the site for acting quickly to prioritize the safety of all mine workers.

“Initial discussions with Horizon indicate that a transaction will go ahead with the hope of restoring operations and getting back to business.”

B2Gold expects 3.4 million tons of gold ore at Otjikoto mine in 2025

Editor — Tue, 14 Jan 2025 03:41:01 +0000

B2Gold projects Otjikoto Mine to process 3.4 million tons of ore at an average grade of 1.63 g/t gold with a process gold recovery of 98.0% in 2025.
The processed ore will be sourced from the Otjikoto pit and the Wolfshag underground mine, supplemented by existing ore stockpiles.
Open-pit mining operations are scheduled to conclude in the third quarter of 2025, while underground mining operations at Wolfshag are expected to continue into 2027.
Exploration results, however, indicate the potential to extend underground production at Wolfshag past 2027, supplementing the processing operations into 2032 when economically viable stockpiles are forecast to be exhausted.
The newly discovered Antelope deposit could add between 80,000 and 90,000 ounces per year from 2029 through 2032, potentially extending mine life further through additional drilling at the Springbok and Oryx Zones at the Antelope deposit.
B2Gold expects to complete a preliminary economic assessment for the Springbok Zone early in the first quarter of 2025 following the release of an initial inferred mineral resource estimate in 2024.
Subject to a positive preliminary economic assessment and necessary permits and approvals, Springbok Zone could contribute to gold production at Otjikoto as early as 2028.
An initial budget of up to US$10 million has been approved to de-risk the Antelope deposit development schedule by advancing early work planning, project permits, and long lead orders.
B2Gold has budgeted US$7 million to drill 44,000 metres to expand and refine at the Antelope deposit in 2025.
B2Gold expects to spend US$39 million at Otjikoto Gold Mine in 2025, a slight increase from the total estimated capital expenditure in 2024.
Approximately US$29 million would be classified as sustaining capital expenditure and US$10 million as growth capital expenditure.
Sustaining capital expenditure is expected to include approximately US$16 million for underground development, US$7 million for tailings storage facility construction, and US$6 million for mining equipment replacement and rebuilds.
The Otjikoto Mine produced 198,142 ounces of gold, near the midpoint of its revised guidance range of 185,000 and 205,000 ounces in 2024.
In the fourth quarter, the mine produced 52,452 ounces, with production from the Wolfshag underground mine remaining consistent.

Wia Gold to deliver Kokoseb Gold Project scoping study in 2025

Editor — Mon, 13 Jan 2025 03:22:01 +0000

Wia Gold will deliver a scoping study in 2025 as the Kokoseb Gold Project moves into its next development phase while maintaining a firm focus on exploration.
The Kokoseb Gold Project is located in northwest Namibia, approximately 320 km by road from the capital city of Windhoek.
Kokoseb lies within the Okombahe exploration licence, held under a joint venture by Wia (80%) and Epangelo (20%).
The Okombahe licence is part of Wia Gold’s broader Damaran Belt tenure in Namibia, which consists of 12 tenements across a total area of over 2,700 km2.
On 16 April 2024, Wia Gold announced an updated inferred mineral resource estimate of 2.12Moz at 1.0 g/t Au, at a cut-off grade of 0.5 g/t Au, including a higher-grade gold portion of 1.53Moz at 1.4 g/t Au using a cut-off grade of 0.8 g/t Au at a discovery cost of less than US$3/oz.
This year, Wia Gold will appoint consultants focusing on mine scheduling and design, additional metallurgical test work, environmental studies, hydrology studies, process plant engineering, non-process site infrastructure, tailings disposal, energy and power supply, and capital and operating costs.
Wia Gold plans to add two reverse circulation rigs to the existing one reverse circulation and two diamond drilling rigs.
The company also wants to provide additional resources in the Central, NW, and Northern Zones, plus conversion of inferred to indicated mineral resources.
Wia Gold executive chairman Josef El-Ragh said the current and planned drilling campaigns are building upon the significant exploration success at Kokoseb, which has progressed rapidly from a greenfield discovery to the current resource of 2.12Moz.
The company has announced assay results for ten reverse circulation drill holes and eight diamond drill holes, including diamond tails, completed and increased activities at Namibia’s 2.12Moz1 Kokoseb Gold discovery.
The central high-grade area delivered further significant intercepts, including 19.8 m at 2.28 g/t Au from 286.8 m, including 6.0 m at 4.52 g/t Au, and 21.9 m at 4.32 g/t Au from 329.7 m, including 9.7 m at 7.27 g/t Au.
The northwest zone strongly mineralised shoot depth extensional drilling returned thicker mineralisation, with an unconstrained intercept of 89.6 m at 0.90 g/t Au.
Complementary and extensional drilling along strike of Kokoseb returned strong and coherent gold mineralisation, with the most significant intercepts including 26.4 m at 1.49 g/t Au from 164.7 m in and 26 m at 1.34 g/t Au from 335 m.
El-Raghy said these results demonstrate Wia Gold’s considerable potential in the Central Zone at depth, showing remarkable consistency of grade, which is also reflected along strike in the NW and Northern Zones.
“The deposit remains open in all directions and at depth, and with the newly discovered mineralisation in the Eastern Zone, there remains significant scope for additional resource growth,” he said.

Rosh Pinah on track to commission RP2.0 expansion project in Q2 2025

Editor — Thu, 09 Jan 2025 03:57:48 +0000

Rosh Pinah Mine’s RP2.0 expansion project is on track for the scheduled commissioning towards the start of Q2 2025.

Trevali, which had a 90% interest in Rosh Pinah before selling to Appian Capital Advisory in June 2023, started the program in January 2022.

Head of Base Metals at Appian Capital Advisory, Ignacio Bustamante, told Fastmarkets in an exclusive interview on April 4, 2024, that Rosh Pinah Zinc will complete its RP2.0 expansion project by July 2026.

The 2.0 expansion project includes constructing new processing facilities, including adding a paste fill and water treatment plant, a dedicated portal, and a decline to extended deposits.

The project will increase mill throughput from 0.7 million tons to 1.3 million tons of ore per annum on average, increasing zinc equivalent production to 170 million pounds per annum.

Trevali had envisaged the expansion to target 135 million pounds a year of payable zinc on average, 23.7 million pounds a year of lead, and 303 000 oz/y of silver over an expected nine-year post-expansion mine life.

The company announced Wednesday that construction has passed the 60% completion mark.

According to the construction update, installing the associated underground piping and boreholes to distribute the paste to the various stopes is also well on track.

The update further said the construction of the water treatment plant to facilitate recycling the water recovered from the underground and the paste plants was going well.

Furthermore, the groundwork and concrete work for installing the SAG mill and floatation cells are moving quickly.

The new production offices and centralised control room have been commissioned, and personnel have occupied these state-of-the-art offices.

A contractor has been appointed to construct a new 20km powerline that will successfully supply the additional electricity required to commission RP2.0.

Background

The Rosh Pinah deposit was first discovered in 1963. Drilling commenced in 1965, and shortly thereafter, an operating company was formed (Imcor Zinc (Pty) Ltd (Imcor)). Preparatory work and mine development commenced in 1967, with the first ore production in May 1969.

Mining was halted from 1993 to 1995 due to mine liquidation.

In 1996, the mining rights were awarded to PE Minerals (Namibia) (Pty) Ltd, and in 1998, Rosh RPZC was formed from a JV. June 11, 2012, Glencore International PLC (Glencore) acquired an 80.08% interest in RPZC.

Namibian Broad-Based Empowerment Groupings and an Employee Empowerment Participation Scheme owned the remaining 19.92%.

On August 31st, 2017, Trevali completed a transaction with Glencore, including an 80.08% interest in the Rosh Pinah Mine.

Trevali ownership subsequently increased by an additional 9.88% to 89.96% due to a share buyback by RPZC.

Cazaly Resources says lithium mineralisation at Kaoko Project has low economic value

Editor — Wed, 08 Jan 2025 03:12:12 +0000

Cazaly Resources says the lithium mineralisation at its Kaoko Project has low economic value, so the company will now review the existing copper targets and consider their options for the project.
Kaoko Lithium comprises exploration licence 6667, initially granted in February 2018 and renewed until February 2025.
The total project area is ~100km long and covers an area of approximately 1,410 square kilometres.
It abuts Celsius Resources Limited’s Opuwo cobalt project, where significant cobalt-copper mineralisation has been discovered in the Dolomite Ore Formation.
Cazaly Resources started the initial reverse circulation drill testing in September 2024 to determine the concentrations of lithium mineralisation in fresh rock beneath the large surface geochemical anomaly.
A total of 28 reverse circulation holes were drilled on 100-metre spacings across three north-south-oriented lines spaced ~400 metre apart for a total of 1,324 metres.
Twenty-five holes were drilled to a nominal depth
of 43m, with one drill hole extended on each line to test for mineralisation at depth.
Several quartz veins and faults were logged over all three drill traverses. The presence of faults,
veining and chlorite/pyrite-altered sediments may indicate the presence of fluid pathways and
potential mineralisation associated with the alteration.
The company announced in early October 2024 that the drilling intercepted intercalated dolomite, dolostone, chert, and minor chloritic sandstone.
The analytical results confirm that the sedimentary rocks intersected in drilling contain elevated lithium mineralisation. This suggests hydrothermal fluids entering the water column from a volcanic source during sedimentation may have introduced lithium mineralisation.
However, the company said the lithium concentrations are considered economically low and will now review the existing copper targets and consider its options for the project.

Forsys Metals buys farm Namibplaas No. 93 for N$24m

Editor — Tue, 07 Jan 2025 03:19:37 +0000

Forsys Metals Corp. has bought farm Namibplaas No. 93 in the Erongo region for N$24 million from Namibplass Guestfarm and Tours.

The portion-1 of the farm Namibplaas No. 93 hosts Forsys Metals’ Namibplaas uranium deposit under EPL 3638.

The EPL covers a total surface area of 1,266 ha, with approximately 93% (1,179 ha) located on the property, which measures approximately 6,700 ha.

The company has also applied for EPL 10501, whose portion, which is about 237 ha (42%), and 239 ha (5%) of EPL 9865 are also on the property.

Forsys Metals’ 100% owned subsidiary, Valencia Uranium, finalised the agreement.

EPL 3638, about 3 km northeast of the Valencia deposit under mining licence 149, is accessed via a newly constructed industrial-grade road from the B2 highway to the Valencia project site.

An initial payment of N$7 million (approximately US$374k) will be made once all conditions have been met, with the remaining N$17 million (approximately US$908k) payable in monthly instalments over 10 years, accruing interest at Namibia’s prime lending rate plus 2% per annum from the date of title transfer following regulatory approval.

The signing of the agreement was on December 17, 2024.

The transaction remains subject to the receipt of all regulatory approvals, including, without limitation, the approval of the Ministry of Agriculture and the Ministry of Lands and Resettlement.

Forsys Metals CEO Mark Frewin said the acquisition of farm Namibplaas, Portion-1, means the company now has unfettered access to the Namibplaas licence area, adding significant value and flexibility to the mine’s development strategy.

“The plan is to prioritise a drill program on Namibplaas as soon as possible and continue to expand and upgrade the total uranium resources to support the overall Norasa mine development,” Frewin said.

The company plans to expand and upgrade the Namibplaas main deposit resource by conducting diamond and reverse circulation drilling.

Forsys Metals owns the Norasa Uranium Project through Valencia Uranium Pty. Ltd.

The Norasa Uranium Project comprises the Valencia uranium deposits held under licence 149 and the Namibplaas uranium deposits.

Forsys Metals has an agreement with farm Valencia No. 122 landowner to access the uranium deposit until 2033.

The agreement includes Forsys Metals’ planned access works area for the mine’s infrastructure, which is covered by an exclusive use contract over approximately 3,346 ha.

Khan project a game-changer in the uranium industry – Parnham

Editor — Fri, 03 Jan 2025 04:22:20 +0000

Critical One Energy (formerly Madison Metals Inc.) says the latest initial metallurgical test work results at its Khan Uranium Project at Madison West demonstrate excellent uranium recovery rates and low acid consumption.
In a report this week, Critical One Energy said the initial test work achieved recovery rates ranging from 71.1% to 86.6%, indicating strong extractability.
Acid consumption was measured at a maximum of 14.2 kg/t, significantly below regional benchmarks like the Husab Mine, which averages 34 kg/t.
Low niobium (Nb) and tantalum (Ta) suggest limited betafite, enhancing processing simplicity.
As at other significant uranium deposits in the region, such as Rössing, Husab, and Valencia, uranium at Critical One’s Khan Project is hosted mainly in D-type leucogranites with limited mineralisation at the contact zones with the country rocks.
Critical One Energy conducted bottle roll leach tests from three reverse circulation samples collected during the August 2024 drilling campaign.
The main aim of the test work was to obtain an indication of acid consumption to be expected (acid consumption index, or ACI) and ascertain U₃O₈ recovery.
Uranium extraction achieved ranges from 71.1% to 86.6%. Acid consumption is low at a maximum of 14.2 kg/t, much lower than the Husab Mine at 34 kg/t.
Although preliminary and limited in scope, the results are promising and have provided further confidence in Critical One’s Khan Uranium Project.
Additionally, the samples were analyzed for Nb and Ta, which are minor elements in betafite—a refractory uranium-bearing mineral found in Rössing ore.
At Rössing, betafite typically can constitute 4% of the ore.
The low Nb value and undetected Ta indicate the potential for low betafite in the Khan leucogranites.
Critical One Energy CEO Duane Parnham said these results firmly position the Khan project as a game-changer in the uranium industry.
Parnham said Critical One Energy is advancing toward redefining what’s possible in uranium production with exceptional recovery rates and unparalleled cost efficiency.
Bernard Sililo assessed the results.
Sililo brings over 20 years of expertise in uranium metallurgy, having served as a metallurgist at Rössing Uranium and currently as a lecturer at the Namibia University of Science and Technology.

Namibia approves Azule Energy-Rhino Resources farm-out deal

Editor — Thu, 19 Dec 2024 03:45:35 +0000

Namibia has approved Azule Energy’s farm-out agreement with Rhino Resources in Block 2914A PEL 85 in the Orange Basin.

The companies announced the agreement in May 2024.

Azule Energy says that with the completion of the transaction, it officially holds a 42.5% interest in the block through its subsidiary Azule Energy Exploration Angola, while the operator, Rhino Resources Namibia, Ltd., has 42.5%.

Namcor has 10%, and Korres Investments (Pty) Ltd. has the remaining 5%.

Per the farm-out agreement, Azule Energy can become an operator for the development phase.

The plan of drilling two high-impact wells remains in place, with the first well expected to spud on 18 December 2024.

Azule Energy’s CEO, Adriano Mongini, said Azule is fully committed to leveraging its experience to safely and reliably unlock the hydrocarbon potential of the license and deliver value for all Namibian stakeholders.

Rhino’s CEO, Travis Smithard, said the approval represents another key milestone in Rhino’s organic growth strategy, which sees the company leveraging its exploration expertise in conjunction with the fast-track development capabilities of Azule to enhance value creation for all stakeholders.

Azule Energy is a 50/50 independent joint venture officially established on 1 August 2022, combining the bp and Eni Angolan businesses.

The company is Angola’s largest independent equity producer of oil and gas, holding net resources of 2 billion barrels of oil equivalent and growing equity production to about 250,000 barrels of oil equivalent a day (boe/d) over the next 4 years.

It holds stakes in 18 licenses, participates in the Angola LNG Limited, and is the operator of the New Gas Consortium.

Azule Energy is also a shareholder in Solenova, a solar company jointly held with Sonangol, and is collaborating with the Luanda Refinery.

Deep Yellow defers final investment decision to early March 2025

Editor — Thu, 19 Dec 2024 03:16:13 +0000

Deep Yellow has deferred the Tumas Project’s final investment decision to early March 2025.
The company had said in September 2024 that it would announce the final investment decision in Q4 2024.
The deferment results from delays in receiving final costing and quotes for detailed engineering work and the opportunity to undertake further optimisation and enhancements.
The overall project schedule is refined to arrive at the final investment decision.
However, the Deep Yellow board maintains that this slight delay will not impact the project’s overall timeline and objective of commencing production in late 2026, subject to sufficient uranium price incentivisation.
The company says its board firmly believes that forecast increases in uranium supply by some analysts are materially overstated in the short, medium, and long term, and there is significant doubt regarding the pace of available greenfield uranium developments in the next 10 years.
This, combined with the rapidly increasing demand for commercial nuclear power, cannot justify the current uranium price as a basis for new development start-ups, and it will need to improve to incentivise new production.
The Tumas Project, under license 237 within EPLs 3496 and 3497, will be Namibia’s 4th uranium mine in Namibia.
Deep Yellow’s subsidiary, Reptile Uranium Namibia, owns the project that has a 20-year license that expires in 2043.
The Tumas development has been divided into two phases. One concerns the early works involving process infrastructure, including power, water pipelines, significant roads, site offices, communications, construction camps, and other facilities.
The other is the execution phase, which involves processing plant construction and associated works undertaken by the appointed engineering, procurement, construction, and management (EPCM) contractor.
Deep Yellow managing director John Borshoff said the ongoing detailed work reinforces Tumas as an exceptional project and development opportunity.
Borshoff also said they expect an optimised detailed engineering report by the end of February 2025 and the final investment decision to be delivered in early March 2025.
“It is also important we make our final decisions based on the best, most up-to-date information and in the best interests of our shareholders.
“Although we have one of the most advanced greenfield uranium development projects available, with a formidable and proven team to execute, the current long-term uranium price does not reflect what we see as a significant emerging supply shortage,” Borshoff said.
He added that Deep Yellow will take a very disciplined approach to starting construction of the processing plant while continuing to progress with early works.
“We are progressing in debt financing and have strong cash reserves, meaning we can make decisions on our terms that are in the best interests of shareholders.
“The outlook for nuclear remains extremely optimistic. Substantial uranium supply, potentially a doubling of annual supply by 2040, will be required, and we believe that will be difficult to achieve, giving us a definite competitive advantage in what we anticipate will be a more positive price environment,” he said.

Madison Metals changes name to Critical One Energy Inc

Editor — Wed, 18 Dec 2024 03:02:12 +0000

Madison Metals has changed its name to Critical One Energy Inc., effective Monday, December 16, 2024.

Concurrently, the company’s trading symbol will change to CRTL on the Canadian Securities Exchange.

The company’s trading symbols on the OTC Markets and Frankfurt Stock Exchange will remain unchanged, although it plans to update its symbol on the OTCQB’s Venture Market later.

The company’s common shares will begin trading on the CSE under the new name and symbol on or about December 19, 2024.

The new CUSIP number for the Common Shares will be 22674C102, and the new ISIN number will be CA22674C1023.

There will be no changes to the company’s share capital as part of this name change.

Madison Metals Inc. is a forward-focused critical mineral and upstream energy company powering the future of clean energy and advanced technologies.

Backed by seasoned management expertise and prime resource assets, Madison is strategically positioned to meet the rising global demand for critical minerals and metals. Its mine exploration portfolio is led by antimony in Canada and uranium in Namibia, Africa.

By leveraging its technical, managerial, and financial expertise, the company upgrades and creates high-value projects while jointly venturing non-core assets to generate cash flow, driving growth and delivering value for its shareholders.