Asia Miner Magazine - July Edition (Page 56)

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July/August 2011 | Volume 8 | Issue 4 | Industry Technical Information |
Philippines in focus Nickel shines German technology goes global
ASIA AT THE CORE
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FEATURES German technology Germanys mining equipment manufacturers are responding to a new surge in demand
for high technology as the key to higher production and greater efficiency ............................................62
Grinding Mills Xstrata Technologys IsaMills are keeping up with new technology by taking on a number
of new fine and coarse grinding tasks in a wide variety of ore types ......................................................63
LEADING DEVELOPMENTS Asian Intelligence Direct Nickels new processing technology is set to unlock the global treasure trove of
nickel laterite deposits ........................................................................................................................... 4
Legally Speaking Consolidation among stock exchanges is at an unprecedented level in a commodityfuelled race to become the premium global minerals exchange. ...........................................................58 Exploration Augur Resources has intersected broad gold-copper zones at Wonogiri ..........................76 AROUND THE REGION Philippines Mindoro Resources has encountered strong nickel assays at the Bolobolo target ................8 China The acquisition of a dolomite quarry is another important step for China Magnesium.................20 Mongolia The countrys currency, the Tugrik, is heading north, just like its mining industry ....................26 Indonesia PT Inco is building a nickel processing facility in Central Sulawesi ........................................32 Laos SARCO has signed an EPC agreement with Chinas NFC for an alumina refinery .........................36 Cambodia A new stock exchange is set to open in the kingdom during July. ........................................38 Vietnam Olympus Pacifics Phuoc Son processing plant is ramping up to full capacity .........................39 Malaysia Monument Mining is seeking to purchase the Mengapur Polymetallic Project ........................40 Papua New Guinea Resource Mining is using innovative techniques at Wowo Gap Nickel Project ......42 Central Asia Stans Energy has completed its acquisition of a heavy rare earths processing facility ......46 South Pacific Lion One Metals has recorded bonanza gold results at the Tuvatu project in Fiji ...................50 Australia Surveys have confirmed sulphide anomalies at Global Nickels Mt Cornell project........................52 Crazy Horse Resources geologists examine core samples from the Taysan Copper-Gold project in souther n Luzon, the Philippines. Drilling by the Canadian-based company , which has six rigs in operation, continues to extend mineralization. An independent r esearch study has found that T aysan is expected to be a major driver of employment and contribute about 1% to the nation GDP. s
Photo courtesy Crazy Horse Resources.
DEPARTMENTS Advertisers Index ........................................75 Calendar of Events ....................................57 From the Editor ............................................2 Product News ............................................68 Subscription Form ......................................75 Supplier News ............................................72
Acoje heap leach trial .........................................10
New energy technology for China........................22
Southern Oyu Tolgoi pre-strip...............................28
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Asian Intelligence
Steel (Group) Co (TISCO) to jointly develop the project. Previously, the investment and operation of the Dagon project was solely in charge of China Nickel Industry Co, a subsidiary of China Nonferrous. It became the first concr ete cooperative project following the signing of a strategic agreement by the two companies in March 2010. China Nonferrous general manager Luo Tao said that the cooperation would serve as an example of friendly cooperation between central enterprises and local enterprises. The agr eement grants TISCO access to a stable, r eliable and low-cost strategic supply chain of the nickel r esource, thereby enhancing its contr ol over resources and increasing the competitiveness of stainless steel. Nickel, the most important raw material for stainless steel production, accounts for more than 70% of the total pr oduction costs for stainless steel. TISCO, the par ent company of Taigang Stainless Steel, is the largest stainless steel producer in China. The Dagon Nickel Project includes excavating and smelting ores, and is the biggest cooperation between China and Myanmar in the mining field. The pr oject is estimated to contain more than 30 million tonnes of high grade nickel ore for at least 700,000 contained tonnes of nickel. 7 20 852.2 329 6.3 2009 8.2 TISCO 20103 70% 6 | ASIA Miner | July/August 2011
3000 70 201000 100 2000 3145 Drill grant for nickel project VENTNOR Resources has been awar ded a drilling grant by the Western Australian State Government to expand its drilling program at the Warrawanda Nickel Pr oject in. The Aus$100,000 grant is part of the Co-Funding Industry Drilling Program under the States Exploration Initiative Scheme (EIS). The Warrawanda Nickel Project in Western Australia is about 40km south of Newman and is accessed from the sealed Great Northern Highway by unsealed formed tracks. Anaconda Nickel explored Warrawanda for nickel-cobalt laterite deposits in 19 9 6 and 1997. Work included air-photo interpretation,
airborne magnetic surveys, geological mapping, gridding, RAB, AC and RC drilling and metallurgical test work. The work included 86 vertical RAB holes totalling 1488 metres, with an average depth of 17.3 metres as well as 46 vertical RC holes totalling 930 metres with an average depth of 17.8 metres. Holes were drilled at 50 to 100 metre intervals on 500 and 1000 metre traverses in selected ar eas. Further drilling was undertaken along strike fr om the ultramafic within the surrounding area. In total, about 17km of the strike length of the ultramafic has been tested. W arwick Resources, now Atlas Iron, pegged Warrawanda and took chip samples at the surface, however their focus switched to iron ore elsewhere and no further work was undertaken. Warrawanda is in the Sylvania Inlier , an Archean granite-greenstone terrane in the Pilbara region of Western Australia. Compared to the larger and historically mor e productive Yilgarn and Pilbara Cratons, the Sylvania Inlier has been r elatively under researched and under explor ed. The major known economic or e occurrence is the Coobina chromite deposit, wher e about 240,000 tonnes of chr ome ore are produced annually from open pit mining.
The Warrawanda project of Ventnor Resources is in the south of Western Australias Pilbara region.
Philippines
STRONG NICKEL ASSAYS AT BOLOBOLO TARGET

rect shipping or e (DSO) laterite sour ced mainly from the Philippines, Indonesia and New Caledonia. However, there is a tr end away from DSO in these countries in favour of value added processing. Mindoro is very well placed to take advantage of the continued strong demand for nikkel products, with a focus on two stages of value-added processing, a building nickel resource and a high-quality deposit in terms of size potential, location and outstanding metallurgical characteristics. Second nickel plant on schedule CONSTRUCTION by Nickel Asia Corp of the Philippines second hydrometallurgical nickel processing plant, located adjacent to the companys Taganito mining operations in Surigao del Norte, is pr oceeding on schedule with plant commissioning expected in mid2013. Nickel Asia has a 22.5% stake in the new project, while Japans Sumitomo Metal Mining has a 55% stake. The new plant will use high pressure acid leach technology to process limonite or low grade nickel ore. Taganito Mining Corp, a subsidiary of Nickel Asia, will supply all of the r equired nickel ore to the plant over an estimated 30 year pr ject o life. The output, a mixed nickel cobalt sulphide, will be bought by Sumitomo for final processing at its refinery in Japan. The new plant is considered particularly beneficial to the country because of the value added created, the jobs and the for eign exchange earnings. During construction, the project will employ 4000 workers. When operations start in 2013, ther e will be 1000 full time employees. The countrys existing nickel pr ocessing plant is under Coral Bay Nickel Corporation, a joint venture between Sumitomo and Rio Tuba Nickel Mining Corporation, another Nikkel Asia subsidiary. Nickel Asia has a majority stake in six mining operations throughout the Philippines, including Taganito, Cagdianao, South Dinagat, T aganaan and Rio Tuba, and ships its output to Japan and China. The company has a 10% equity interest in the Coral Bay HPAL facility at Rio Tuba. The oldest of the mine sites, Rio Tuba has been operating for mor e than 30 years. The sixth mining project on Manicani Island is under care and maintenance.
Sampling nickel laterite from Mindoro Resources Agata Nickel-Cobalt Project.
THE final drillholes at Mindor o Resources Bolobolo nickel target in the Surigao nickel district of northeast Mindanao have returned strong assays of potential economic interest. The company is now utilizing the data obtained from this drill pr ogram to estimate indicated resources. A total of 497 holes for 5200 metr es have been completed from the proposed 700010,000 metre program systematically testing regional nickel targets with the objective of converting a significant proportion of the Surigao regional exploration targets to r esources. Drilling has been completed on a 50 x 50 metre grid pattern at Bolobolo and Mindoro says this is suf ficient drilling density to enable estimation of indicated resources. Best results from the final 52 holes and 433 samples are: 13.75 metres from surface @ 1.36% nickel, including 12 metres from 1.75 metres in sapr olite @ 1.42%; 12.1 metr es from surface @ 1.12%; 9.4 metres from surface @ 1.18%, including 5.8 metres from 3.6 metres in saprolite @ 1.37%; and 9.95 metres from 1.3 metre @ 1.2%, including 4.7 metres from 11.25 metres in saprolite @ 1.46%. The company is carrying out a final topographic survey at Bolobolo before producing a resource estimate while drilling has now
moved to the Agata South ar ea. A previous arrangement with a Philippines company , Delta Earthmoving, has been r e-negotiated, allowing Mindoro to r esume control of the project in exchange for a gross 1% royalty on future production. Mindoro has NI 43-101 mineral r esource estimates on its Agata Nickel-Cobalt Project in Surigao, that include a measured and indicated resource of 32.6 million tonnes @ 1.04% nickel for 340,000 tonnes contained nickel. It recently released an integrated preliminary economic assessment (PEA) on Agata and has started a pre-feasibility study into an integrated on site nickel pr ocessing project based on the PEA. It is also assessing the potential to develop a thermally pr o cessed (upgraded) nickel or e operation to generate early cashflow. The companys president and CEO Jon Dugdale told delegates at the China Nickel Conference that Mindor o sees very str ong growth in Chinese and other (eg Indian) stainless steel production. Up to 80% of nickel consumption is in stainless steel production. Primary nickel supply has not come on stream as forecast and the gap in supply is being met, just, by nickel pig iron production in China. Nickel pig iron is produced from di-
8 | ASIA Miner | July/August 2011
Philippines
Nickel Asia expects that a very healthy start to 2011 in terms of sales and net income will be sustained for the rest of the year owing to healthy nickel prices and better production. President and chief executive officer Gerard Brimo says all indications point to higher nickel prices and a higher sales volume as well as demand for nickel or ree maining strong. While the ferronickel plant of our main buyer of saprolite ore Pacific Metals Co (Pamco) was af ected by the earthquake f and tsunami in Japan, the damage is not substantial and the plant is expected to restart operations in the thir d quarter. In the meantime, we agreed with Pamco to divert shipments of ore to other buyers, so our sales volumes for the year will not be afected by this tragic event. f During the first quarter of 2011 Nickel Asia shipped ore worth PHP 1.97 billion, an increase of PHP 996 million on the corresponding period of 2010. The Rio Tuba mine shipped 396,000 wet metric tonnes (wmt) of saprolite ore and 826,000 wmt of limonite or , while the Tage anito mine shipped 203,000 wmt of sapr olite ore. The other two operating mines, Hinatuan and Cagdianao in north-easter n Mindanao, started shipments of saprolite and limonite ore in April. Acoje trial continues THE heap leach trial at Eur opean Nickels Acoje project on Luzon Island is continuing with the two heaps being operated in closed circuit mode in order to increase metal concentrations. By August the high concentration of pr egnant leach solution (PLS) fr om the heaps will be fed to the hydrometallurgical recovery plant which is being configured on site. This plant will test the company s enhanced metals r ecovery process flow-sheet and will produce separate nickel hydroxide and cobalt hydroxide products. Once the leach cycle is complete the stack will be rinsed, neutralized and rehabilitated. Irrigation of heap 1 began in April. This heap consists of about 2000 tonnes of agglomerated nickel laterite ore stacked on a 33 metre by 18 metre pad to a height of 4 metr s. Irrigation is with diluted sulphuric e acid using a network of drippers and wobblers in combination in or er d to test the best delivery method. PLS production occurred very rapidly with breakthrough occurring within 12 hours of the start of irrigation. This shows that the stacking and agglomeration of heap 1 was successful and that acid solution is able to percolate through the heap freely. The PLS, which consists of dissolved metals in acid, then flowed freely to the PLS pond. During May/June the company agglomerated and stacked heap 2, which sits adjacent to heap 1 on the heap leach pad, in order to test the combining of the primary and secondary phases of heap leaching. The trial pads are also designed to test rain mitigation techniques and have a combination of HDPE raincoats on the sides of the heap, which also improve slope stability, and a layer of r ocky saprolite ore on top to protect the heap surface. The trial results at the heap leach trial site will be used in the bankable feasibility study (BFS) which is under way at Acoje. The ecruitr ment of key personnel and consultants for fast-tracking of the BFS is on track with selection of the owners team study manager and project engineer completed.
The nickel facilities in the Rio Tuba area.
Irrigation of heap one at European Nickels heap leach trial site at the Acoje project.
Philippines
The processing plant will start operation at an Xstrata Coppers Tampakan general manager Andrew Pickford told those attending a annual capacity of 2.5 million tonnes and will Philippines-Australia Business Council mee- ramp up to 3.5 million tonnes by the end of the ting in Sydney in mid-June that he expects to second year. Didipio will pr oduce an annual Aquino administration to resolve the issue be- average of 100,000 ounces of gold and 14,000 fore the consortium makes a decision on the tonnes of copper. During the first six years of a 16-year life of mine, annual gold pr duction will o project next year. remain at around 100,000 ounces, but copper He said EIS consultations would take 3-6 months, after which Sagittarius would lodge an production will increase to about 18,000 tonapplication to get an environmental compliance nes over the same period. Tampakan partners confident Ausenco has the contract to complete the enPARTNERS involved in the massive T ampakan certificate. It then hopes to get a declaration of Copper-Gold Project are determined to main- mining feasibility from the national government. gineering design and procurement with memPhilippines trade secr etary Gregory L Do- bers of OceanaGolds construction and project tain the schedule of beginning mine develope ment in 2012 and commer cial production by mingo told the Sydney forum that the Pr sident management team working alongside the Aus2016 despite delays caused by a r egional re- had vowed to dir ectly tackle the dispute. He enco team in Australia to oversee the project. Didipio is estimated to cost $185 million to gulation banning open-pit mining. Local ope- also said that the gover nment is on track to start bidding out infrastructure contracts in the develop, with ar ound $12 million alr eady rator Sagittarius Mines and its overseas spent to date. The project will be transformapartners Xstrata Copper and Indophil Resour- country this month. Indophil, which holds a 37.5% stake in the tional for ASX and TSX listed OceanaGold, ces are confident that Pr esident Benigno according to managing dir ector and CEO Aquino III will take charge of r solving the issue. mine, will r etain its stake after San Miguel e The $5.9-billion project, said to cover the Corp decided to let go of an exclusive period Mick Wilkes, and would give the company a s largest undeveloped copper-gold deposit in to launch a takeover bid. The company vice platform to expand further into the Philippines and throughout the Asia Pacific. South East Asia, has been described as ha- president Gavan Collery says it has raised During the past six months, we have been ving the potential to be the largest mine in the funds to cover its involvement up to 2012. Philippines and the fifth-largest copper mine Were hell-bent on maintaining direct and ac- working hard to unlock significant value in the world by 2016. It is pr ojected to add tive interest in the pr oject through the com- through adjustments to the design of the mine, process plant and infrastructure, which 1% to Philippines gr oss domestic product mitment stage and on to development. has seen annual gold production increase by annually after 2016. 45% and annual copper production increase Last year, the South Cotabato regional go- Didipio construction starts s vernment passed a new environmental code CONSTRUCTION has started at OceanaGold by 69% over the life of the mine. Mining will be undertaken in six stages over Didipio copper/gold project with commissiobanning open-pit mining, a move that has caused consternation to the Tampakan con- ning of the process plant scheduled to start in a 14-year period, taking the open pit down the fourth quarter of 2012. The pr oject has esti- 270 metres to the valley floor. The maximum sortium as well as other mining and quarry mated gold reserves of 1.68 million ounces and planned annual mining rate is estimated at operators in this region of Mindanao. around 24-million tonnes. copper reserves of 229 million tonnes. While confident of positive national government intervention, Sagittarius has also recently started forwarding to local officials an environment impact study (EIS) which is likely to be a key to overtur ning the mining ban covering the site. Feedback fr om the consultations will be used to finalize the studys draft before it is ultimately submitted to the national government. The study identifies the potential envir onmental and social impacts of the pr oposed mining operation as well as the strategies of Sagittarius to mitigate such. It details the potential impact on water r esources such as contamination due to discharge from the project site, generation of tailings and waste r ck o and clearing of rainforests. The company proposes mitigation measures such as putting in place a water management system which involves treatment of all mine water prior to release from the site as well as having storage for waste r ock and tailings, and a plan for clearing procedures. An aerial view of the proposed layout at OceanaGolds Didipio project. Meanwhile, Philippine company DMCI continues to mine and stockpile dir ect shipping ore in pr eparation for shipments fr om their port in Santa Cruz. DMCI is undertaking all the financial risk, operations and marketing associated with the mining and sale of the nickel laterite ore and pays Eur opean Nickel a royalty fee on each shipment. 12 | ASIA Miner | July/August 2011
Philippines
The access to the underground area through a decline from the side of the open pit is expected to start in 2016, with undergr und produco tion planned for 2020 and ramping up to 1.2 million tonnes a year by 2023. The under ground mining is expected to take place for at least six years of the mine life and will run cons currently with the open pit operation. OceanaGold also has the Macraes goldfield in Otago, in the south of New Zealand South s Island, which is made up of the Macraes open pit and Frasers undergr ound mines. It also operates the Reefton open-pit mine on the west coast of the South Island and cur rently produced around 270,000 ounces annually from these two operations. Taysan mineralization extended DRILLING by Crazy Horse Resour ces continues to extend mineralization at the T aysan Copper-Gold Project in souther n Luzon. The deposit remains open and feasibility drilling continues with six diamond drill rigs in operation. Another hole also continued to confirm the existence of deeper ore zones with an intersection of 10 metr es from 664 metr es @ 0.28% copper, 0.06 grams/tonne gold, and 0.52 grams/tonne silver while another hole continued to confirm the existence of significant silver grades associated with the copper-gold resource. Crazy Horses president and CEO Johan Raadsma says, The ongoing positive r esults further substantiate the T aysan deposit as a reliable, predictable and growing deposit. Persistent silver grades ar e fantastic and we will further these toward a compliant resource. Taysan contains a copper -gold porphyry deposit with an inferred resource, and is comprised of two mining exploration permits and three mining exploration permit applications over five contiguous claim blocks covering a total area of 11,254 hectares. Taysan is in a well-developed mining province and readily accessible by road, being 20km east of the provincial capital and deep water commercial Johan Raadsma says, W e have worked very hard on our social licence to operate in the Province of Batangas and ar e excited about the reports findings that r esponsible mining development will be a viable tool for poverty alleviation, education, positive economic impact while providing a return to shareholders and gover nment alike. W e look forward to working closely with the Local Government Units in monitoring and impr oving on the key indicators r elated to the socioeconomic well being of the community. The report followed receipt of a formal r esolution of support to develop the pr oject from the Provincial Board of Batangas and a formal resolution of appreciation from the Taysan Municipal Council. The company has also executed a binding asset sale and purchase agreement with a private Philippines company, to acquire its 15.94 hectare port facility in Batangas. The port is on the southern end of Batangas Bay and adjoins the Shell Malampayan onshore gas plant. Strong Tambis potential A DETAILED mapping program by Medusa Minings Philippines operating company Philsaga Mining has highlighted the excellent r egional potential of the Tambis tenement, which includes the Bananghilig gold deposit. Medusa believes there is excellent potential for additional discoveries of breccia-hosted, epithermal veins and quartz stockwork gold mineralization within a large intrusive-breccia complex mapped over an area measuring about 7km by 3km along a well defined north-easterly tr ending structural and alteration corridor. New outcrops of porphyry and related styles of copper mineralization have also been located at the Sawahon Cr eek prospect, at the lower Bananghilig River prospect, and southwest of the Bananghilig deposit in the extensive skar n area which is associated with the fertile copper-bearing Supon diorite and the adjacent Kamarangan porphyry copper -molybdenum prospect. Drilling is continuing with six drilling rigs at Bananghilig. Medusas managing director Geoff Davis says, This ongoing mapping has significantly enhanced the regional potential of the Tambis District. We see strong similarities with the Wafi Golpu Project in Papua New Guinea with respect to the regional setting, rock types, mineralization styles and potential. In addition there are many similarities to the richly mineralized Baguio District north of Manila which has produced about 28 million ounces of gold and 2.8 million tonnes of copper.
Drilling at Crazy Horse Resources Taysan Copper-Gold Project in southern Luzon.
One hole r eturned and intersection of 426 metres from 40 metres @ 0.23% copper, 0.10 grams/tonne gold and 0.52 grams/tonne silver , including 52 metres from 254 metres @ 0.35% copper, 0.18 grams/tonne gold and 0.9 0 grams/tonne silver. The same hole also extends the resource to depth with 52 metres from 598 metres @ 0.14% copper , 0.05 grams/tonne gold and 0.66 grams/tonne silver . This is 80 metres below the previously known base of ore. 14 | ASIA Miner | July/August 2011
port of Batangas City. The company is conducting a confirmatory scoping study, which remains on track and on schedule. A recent independent research study analysed the expected positive economic impact of construction and initial pr oduction from Taysan on both a regional and national level. The key findings demonstrate that Taysan is expected to be a major driver of employment and contribute about 1% to national GDP.
Philippines
enforce, the company earlier this year received formal notification fr om the MGB that the Dilong EPA has been cancelled. The company believes that it has not been cancelled legally and is in discussions with the MGB to resolve this matter. It has filed with the MGB central of fice the appropriate objection notice, supported by documentation already filed with the MGB regional office which demonstrates that the company has been actively pr ogressing its permit application and complying with all r equirements set by the gover nment. In addition, the company notes that in its case, the MGB appears not to have observed its thr ee letter-policy of notification in exacting compliance in respect of its Dilong EPA. The company stresses that it is supportive of the MGBs efforts to drive r eform in the Philippines mining industry and will continue to engage with and support the gover nment in its efforts to implement its reform program. Meanwhile, Craig Lindsay has agr eed to join the companys Board of Directors replacing Lou Clinton who has resigned his position as a dir ector to pursue other inter ests. Craig Lindsay has mor e than 20 years experience in corporate finance, investment banking and business development in North America and Asia and is currently president and CEO of Otis Gold Corp and managing director of Arbutus Gr ove Capital Corp, a private company offering corporate finance and merchant banking services.
A schematic cross section of Medusa Minings Tambis tenement.
The Tambis Project is operated under a mining agreement with Philex Gold Philippines over a granted mineral pr oduction sharing agreement (MPSA) which covers 6262 hectares. In addition the company is ear ning a 70% interest in a joint ventur e through MRL Gold Phils with Apical Mining Corporation which covers an adjacent MPSA application with an area of 2084 hectares. The Tambis district is in the regionally extensive Eastern Mindanao volcano-plutonic arc, an area with known pr ecious metals and base-metals mines, deposits and occurr ences. This metallogenic r egion is one of the most significant epithermal and porphyry copper districts in the Philippines, including gold and copper-gold deposits at Diwalwal, Co-O, Kingking, Amacan, Masara, Boyongan, Bayugo, Siana and Placer. Meanwhile, at Medusas operating Co-O Gold Project permitting is progressing for an expansion in annual pr oduction capacity to 200,000 ounces. The construction time for the new plant after the necessary r egulatory approvals are granted is estimated at about 21 months, and the full benefits of the expansion are expected to be r ealized from mid2013. Medusa has contracted Ar ccon (WA) for the process engineering, plant design and construction supervision. Dilong EPA cancelled PHILIPPINE Metals continues to engage with the Philippine gover nment Mines and Geosciences Bureau (MGB) regarding cancellation of its exploration permit application (EPA) for the Dilong copper-gold project. The company believes that the EPA has not been 16 | ASIA Miner | July/August 2011
cancelled legally and is confident it will be reinstated in due course. Since the date of local elections in T ubo, Abra, last October, the company has accelerated its constructive efforts to work with the new local government and community leaders to gain their support for EP A at Dilong. Negotiations with the rightful indigenous peoples to acquir e free and prior informed consent (FPIC) have been initiated and ar e progressing positively, and consultation with the Local Gover nment Units Sanggunian has been ongoing, both of which are key aspects of the EPA process. However, as a r esult of the MGBs use it or lose it policy, which it has taken steps to
A massive sulphide outcrop at one of Philippine Metals properties.
Philippines
Silver Project in a bid to expand the r esource envelope and to upgrade existing resource categories. The first hole of this pr ogram has intersected a number of mineralized zones and one of these zones displayed visible free gold. This program is advancing at the same time as underground development of TBoli. The south crosscut from the advancing east decline has partially penetrated the 40 metr e-wide South Vein alteration system with an initial 8.6 metre section assaying 8.2 grams/tonne gold. Other development drive sampling returns include 1.25 metres @ 134.0 grams/tonne gold, 2.1 metres @ 6.1 grams/tonne, 1.7 metr es @ 28.1 grams/tonne, 1.6 metr es @ 12.7 grams/tonne, 1.0 metres @ 21.5 grams/tonne and 1.85 metres @ 14.5 grams/tonne. Old records show that further individual veins will be intersected as the cr osscut completely exposes the 40 metre width of the South Vein alteration system. A poorly documented but prospective alteration system is known to exist some 70 metres further south. This system will be tested with the underground drilling. Resource definition drilling at the T agpura porphyry skarn on Cadans Comval project continues to produce strong assays, including 77 metres from 2 metres @ 1.26% copper and 0.42 grams/tonne gold. This drilling is within the zone which has a potential tonnage of 10 to 15 million tonnes. The completion of this drilling program, together with previous drilling and open pit bench sampling, provide a database of suf ficient density to allow the upgrading of the potential tonnage to a measured resource. Other recent results include 21 metres from 4 metres @ 1.59% copper and 0.4 grams/tonne gold, 106 metres from surface @ 0.65% copper, 98 metres from 2 metres @ 0.32% copper, A view over the processing facilities at CGA Minings Masbate project on Masbate Island. 69 metres from 2 metres @ 0.30% copper, and mined. Further drilling, including scissor holes, 34 metres from 4 metres @ 0.41% copper. probable reserve of 9 2.2 million tonnes @ Drilling completed to date, combined with is planned for this area. 1.0 grams/tonne for 3.03 million ounces. A 41-hole program of resource infill drilling open pit bench sampling has defined a masIn its first year of operation the project produced more than 150,000 ounces and is on track is also being conducted in the planned Main sive magnetite - chalcopyrite/chalcocite skarn to produce at an annual rate of mor e than Vein Pit targeting the inferr ed section of 4 strike length of 350 metres. Surface mapping major veins within the Binstar zone as well as of magnetite has extended the strike length 200,000 ounces. The existing 4 million tonne some 300 metres to the south while r ecent plant was constructed by Leighton Contractors the Main Vein zone itself. CGA has recently spun out its African assets drill site preparation has uncovered mineraliAsia without one lost time injury . The mining contract for Masbate was awarded to Leighton, in Ratel Group and also holds a 23% interest in zation 100 metres to the north. A number of other skar ns have been mapSt Augustine Gold and Copper which is earning , the largest mining contractor in the world. Recent drilling has returned high grade in- a 60% interest in the world class King-king Cop- ped and new discoveries ar e ongoing. The total skarn potential associated with the large tercepts at Libra East, which is immediately per-Gold Porphyry Project in the Philippines. tonnage porphyry copper deposits is yet to be adjacent to the Main V ein Pit. An extension determined. Multiples of announced skarn poof highly mineralized quartz veining has also Major drilling at TBoli A MAJOR undergr ound drilling pr ogram is tential is a r ealistic expectation. Drilling of the been identified immediately to the north of under way at Cadan Resour ces TBoli Gold- large tonnage porphyry potential is ongoing. the planned Colorado pit. Masbate 10 tonnes milestone AFTER achieving the milestone of pouring 10 tonnes of gold from its Masbate Gold Project, CGA Mining is continuing to forge ahead by upgrading the process plant and undertaking an aggressive US$10 million exploration program. When complete the upgrading will enable the plant to annually process 6.5 million tonnes while the exploration program is focused on the conversion of additional r esources to reserves and delineating new reserve and resource ounces. Masbate is the largest gold pr oject in the Philippines and was successfully developed with first gold poured in May 2009. The project has a total indicated r esource base of 153.41 million tonnes @ 0.92 grams/tonne for 4.55 million ounces, total inferr ed resource base of 127.15 million tonnes @ 0.79 grams/tonne for 3.22 million ounces and a Highlights of the drilling include 6 metres @ 1.34 grams/tonne gold fr om 149 metres, 9 metres @ 1.55 grams/tonne from 169 metres, 14 metres @ 2.25 grams/tonne fr om 131 metres, 30 metres @ 1.57 grams/tonne from 9 2 metres, 7 metr es @ 7.11 grams/tonne from 4 metr es, 32 metr es @ 1.9 8 grams/ tonne from 74 metres and 17 metres @ 1.90 grams/tonne from 167 metres. The proposed Libra East pit forms the northwestern end of the Main V ein Pit. The current design is limited by drill data and not mineralization extents. Results point to the potential for adding additional resources at Libra East. The Grandview pit forms the northern part of the main Colorado pit. Recent exploration drilling 300 metres to the NNW of Grandview has intersected a mineralized quartz vein-stockwork system which appears to be an extension of the mineralization curr ently being July/August 2011 | ASIA Miner | 17
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China
NEW ENERGY TECHNOLOGY FOR CHINA

In collaboration with T aiwans Bureau of Energy, SSNE recently conducted a successful Kalina Cycle power plant field demonstration in Taiwan which was well r eceived by industry groups and is expected to result in a number of commercial scale opportunities. In terms of building our Kalina Cycle business, we continue to develop multiple pr jects o with recurring revenue streams by dir ectly owning interests in power plants thr ough our build-own-operate model. We took our first steps in this strategy with acquisition of the Husavik Geothermal Power Plant in Iceland earlier this year and ar e evaluating a number of other significant opportunities. Wasabi Energy SSNE 1:1 5200 John Byrne
The Kalina Cycle plant of Wasabi Energy in operation at Sumitomo Metals Kashima Steel Works in Japan.
WASABI Energys exclusive Chinese licensee has begun construction of a state-of-the-art Kalina Cycle Laboratory and Testing Facility in Shanghai. The facility has been designed to assist in testing major components as well as the assembled power generation system for the Kalina Cycle system. The facility, scheduled to begin operations later this year, is being built by Shanghai Shenghe New Energy Resources Science & Technology Co (SSNE) and is expected to play a pivotal r le o in the implementation of Kalina Cycle technology in China. This technology enables the generation of power fr om geothermal and waste heat sources. The dedicated facility has been designed to assist in the testing of major components including 1:1 scale heat exchangers and turbine assembly as well as a full factory testing capability for the Kalina Cycle system with rated power outputs of up to 5200 kW. It will also incorporate a Kalina Cycle power plant simulator to assist in identifying process refinements and providing operator training. SSNE is a developer of waste heat, geother mal and solar thermal power plants, specifically focused on delivering thermal power plant ef ficiency improvements. SSNE is experienced in a diverse range of energy intensive industries in China and has assembled a team capable of delivering Kalina Cycle projects.
The new facility will not only assist SSNE in delivering Kalina Cycle power plants to the market in China but will also assist Wasabi in the manufacturing, assembly and factory testing of Kalina Cycle systems for its global business. Following its acquisition of Global Geothermal Ltd, Australian-based W asabi has continued to r oll out the technology throughout the world, including Pakistan, Japan, Taiwan and Iceland. Wasabis executive chairman John Byr ne says, Recent global events including the earthquake in Japan demonstrate the power generation, transmission and energy security challenges even developed economies are experiencing and reinforces the importance of decentralized power generation. The two Kalina Cycle power plants operating in Japan - at the Kashima Steel W orks of Sumitomo Metals and at the T okyo Bay Oil Refinery of Fuji Oil - provide a practical demonstration of how the technology can pr ovide independent power while r educing the energy intensity of heavy industry. In addition to the waste heat to power applications, the two Eco-Gen Kalina Cycle units soon to be installed at two hot spring sites in Japan, pr vide o a template for how r eliable power generation can be achieved independently fr om established national power networks.
China
Eco-Gen BOO Husavik China Magnesium quarry acquisition CHINA Magnesium Corporation has taken another step along the path to become a large, low-cost, vertically integrated producer of pure magnesium and magnesium alloy, by signing a contract to exer cise its option to acquir e a dolomite quarry near its Pingyao magnesium ingot production plant in Shanxi Province. The acquisition will progress the vertical integration of the companys supply chain from dolomite supply through to magnesium and magnesium alloy production. The quarry is at the foot of T ianzhong Mountain and about 30km from the production plant. China Magnesium has a supply agr eement with the quarry and all dolomite requirements of its plant to date have been fulfilled by the quarry . The dolomite is transported by truck with two sealed alternative road routes for transport of the dolomite from the quarry gate to the plant. Dolomite is, by volume, the largest raw material component of magnesium pr oduction and locking in supply through ownership of the quarry is important in the company aim to bes come one of the worlds largest, low cost producers of magnesium and magnesium alloy. To exercise the acquisition option, the company must pay RMB5 million (Aus$730,000) less the option fee of RMB300,000 (Aus$44,000) paid at the time of entering the agreement in 2008. The pur chase is planned to be funded from a mix of existing funds and from a Chinese bank debt facility which is being negotiated. Satisfying the conditions precedent and completion of the acquisition of the quarry is expected by the end of October 2011. China Magnesiums managing director Tom Blackhurst says: CMC is confident of its existing supply chain for magnesium production but will continue to take opportunities to vertically integrate within the industry when the acquisitions make good economic sense. Dolomite is not a rare or complex raw material but it is fundamental for the production of magnesium, and control over supply requirements is another positive for the company as we progress our expansion plans. The company has started pr oduction of pure magnesium following a recent upgrade of its existing ingot pr oduction plant. It believes it has become the first Australian company ever to produce commercial quantities of pure magnesium despite attempts by several other Australian companies in the past. Commissioning of the plant has pr ogressed as planned and initial production is at the annual rate of about 2000 tonnes of pure magnesium. Around the clock production is now being carried out fr om the new furnaces at the plant. The existing plant upgrade and first phase expansion continue to pr oceed ahead of the planned timetable and, as these developments continue, magnesium alloying capability will be added and annual capacity gradually increased to 20,000 tonnes. 30 2008 30(4.4) 500(73) 2011 10 Tom Blackhurst 2000 2 Steel agreement in Shaanxi A UNIFIED management agreement between General Steel Holdings and Shaanxi Coal and Chemical Industry Group Co and Shaanxi Iron and Steel Gr oup Co will r esult in incr eased steel capacity and ef ficiency. The 20-year agreement will see General Steel provide daily management of operations and operate pr oduction equipment constructed by Shaanxi Steel at a facility owned by General's subsidiary Shaanxi Longmen Iron and Steel Co in Hancheng Shaanxi Province. General Steel, one of China's leading nonstate-owned producers of steel products and aggregators of domestic steel companies, says the agreement will also improve raw material costs and reduce transportation costs. At designed ef ficiency levels, the new equipment, including two new 1280 cubic metre blast furnaces constructed by Shaanxi Steel, is expected to annually add 3 million tonnes of crude steel production capacity. Up to now , General Steel has 4 million tonnes of crude steel annual pr oduction capacity, plus 3 million tons of crude steel annual production capacity jointly managed with Shaanxi Steel. The agreement follows completion of a twoyear construction and installation process and four months of testing of Shaanxi Steel's equipment at the Longmen JV. The testing of the equipment was completed in April 2011 and the Company launched full-scale production in May. On an initial basis, the equipment is expected to run at 85% of capacity , with total annual output at the facility expected to be about 6 million tonnes of crude steel. July/August 2011 | ASIA Miner | 19
China
crease throughput towards full capacity of 6000 tonnes once the mill is running at optimal efficiency. During the commissioning stage Majestic has been utilizing ore that has been stockpiled at the new mill in or der to str eamline the process. As well as completing the mill, which has expanded daily thr oughout from 1400 tonnes, the company has also completed a new tailings dam with all tailings lines and water return systems in place and now in use. Majestics president and CEO Rod Husband says, We are excited by the prospect of getting the new mill on line and being in a position to significantly increase production levels. This represents a significant milestone in our transition from exploration to production. Based on a r ecent preliminary assessment report prepared by W ardrop, a T etra Tech company, Majestic will be able to pr oduce around 105,000 ounces annually for the next 22 years, however, the company is considering additional capacity expansion in the next few years as 22 years is a lengthy mine life and it should be more like 10-15 years. Songjiagou is on the Jiaodong Peninsula in Muping County and lies on the western edge of the Muping-Fushan Gold Belt, which hosts 20% of the known gold deposits on the peninsula. Gold production from the entire peninsula accounts for mor e than 25% of China's annual gold production, which is estimated to be at least 9.3 million ounces. The potential at Songjiagou lies at depth and in sub-parallel structur es to the known resource which remain to be tested and in the low-grade bulk tonnage potential within the matrix of the host conglomerates. 3000 6000 1400 Rod Husband
China Magnesiums project is in Shanxi Province, northern China.
Under the agr eement, Shaanxi Coal has committed to providing the Longmen JV with raw materials, including coke and coal, at favourable pricing, as well as pr oviding access to its nationwide transportation system to reduce General Steel's overall transportation costs. In addition, the agr eement includes provisions under which both Shaanxi Coal and Shaanxi Steel are expected to provide financial support, including cr edit guarantees, as needed for the operation. General Steel's chairman and CEO Henry Y u says, We are extremely proud to have reached this agreement with Shaanxi Steel and Shaanxi Coal, the largest state-owned steel and coal producers in Shaanxi Pr ovince. We are committed to supporting the continued development of China's fast-growing western region. We anticipate an increase in demand for our products as a result of large-scale housing and infrastructure projects, and look forward to working with our partners to support the ongoing expansion of China's economy and infrastructur e through the development of western region. 20 ( ) 20 | ASIA Miner | July/August 2011
1280 300 400 300 201145 85% 600 Henry Yu - New mill at Songjiagou COMMISSIONING of the new mill is under way at Majestic Golds Songjiagou project in Shandong Province and gold-bearing ore is being run through with the aim of assessing the efficiency of the mill. The company is running the facility at an initial daily rate of 3000 tonnes and will pr ogressively in-
China
Wardrop WardropTetra Tech 22 10.522 10-15 capacity to 4.07 million tonnes this year This . includes 200,000 tonnes of new capacity in the southeast pr ovince of Fujian by Hong Kong and Shanghai listed Zijin Mining Gr up. o Zijin aims to complete construction of the smelter in the second half of the year and start production. Securing copper concentrates is also an issue for Zijin with its boar d secretary Zheng Yuqiang stating, It is one of the main issues we have to deal with befor e starting production. Concentrate for the new smelter will be bought in China and from overseas markets as China does not produce enough concentrates itself. Completion of a new chemical plant, which will take all sulphuric acid from the copper smelter, is also a factor for the start-up. 100,000 22.83.47 , 60 40720 Strong BYP gold assays ENCOURAGING gold assays have been r eceived from the first eight underground drill holes at Silvercorp Metals newly acquir ed, 70%owned BYP Gold-Lead-Zinc Project in Hunan Province, Central China. BYP is expected to become Silvercorps third production foothold in China behind the four silver -lead-zinc mines at the Ying Mining Camp in Henan Pr ovince and the GC silver-lead-zinc project in Guangdong. The best initial diamond drill results are 69.5 metres @ 5.0 grams/tonne gold including 7.21 metres @ 10.68 grams/tonne, 24.58 metres @ 5.55 grams/tonne including 10.23 metr es @ 7.34 grams/tonne, 33.15 metr es @ 4.34 grams/tonne including 14.83 metr es @ 7.19 grams/tonne, 47.29 metr es @ 4.50 grams/ tonne and 46.67 metres @ 4.61 grams/tonne including 10.7 metres @ 9.46 grams/tonne. These are initial r esults from Silvercorps planned 50,000 metr e surface and under ground drill program which is intended to upgrade the curr ent historical r esources and expand the mineralization bodies along strike and down-dip. Currently four underground drill rigs are operating from underground tunnels developed within the No3 gold mineralization zone at the 252 metre elevation, about 100 metres below surface. The underground drills are performing infill drilling at 25 to 50 metre spacing intervals within the zone and will test the No1 gold zone and XII lead-zincgold zone about 100 metr es beneath the No3 zone. Once further defined by the infill drilling, the No3 gold zone will be the focus of initial mining. In addition to the underground drilling, three surface drill rigs ar e carrying out step-out drilling to expand the known zones and to explore for new zones. A geological report on the property was completed by the Chinese gover nment geological team in 1992. Based on 36,151 metres of diamond drilling in 105 holes, the r eport defined 5.44 million tonnes of gold mineral r esources grading 2.76 grams/tonne, containing 482,000 ounces of in situ gold, and 3.12 million tonnes of higher grade lead and zinc mineral r sources e grading 2.45% lead and 5.26% zinc. A qualified person has not done sufficient work to classify the historical estimates as curr ent mineral resources and Silvercorp is not treating the historical estimates as current mineral resources. Silvercorp has completed modification of the existing flotation mill at BYP by adding a cone crusher, expanding the mills daily capacity from 400 to 500 tonnes. The mill is tuning up by pr ocessing lower grade gold or es recovered from underground tunnelling. Initial mining will focus on some of the higher grade sections within the No3 gold zone. The BYP mine is expected to pr duce o and mill 130,000 tonnes of or e at a grade of 7 grams/tonne gold in the current fiscal year.
Loading ore in the open pit at Majestic Golds Songjiagou project.
- 20% 15% 930 New copper smelter for Qinghai WESTERN Mining plans to build a copper smelter with annual pr oduction capacity of 100,000 tonnes in the northwest Chinese province of Qinghai. The cost of the project is estimated at 2.28 billion yuan (about $347 million). The Shanghai-listed and state-controlled company says it will seek a partner to build the smelter in the vicinity of Qinghai capital Xining s but intends to hold a majority stake. It will be the companys second copper plant. The project is expected to incr ease pressure on local supplies of copper concentrate, according to state-backed research firm Antaikes senior copper analyst Yang Changhua. He says Western Mining is likely to use copper concentrate production in Qinghai and Inner Mongolia for the new smelter but will still need to buy concentrate from other miners. Yang Changhua says the company will be able to sour ce some copper concentrate from its Y ulong project in T ibet, which is probably the largest untapped copper deposit in China and wher e Western Mining plans to expand production. The analyst estimates that China, the worlds leading copper consumer , will add 600,000 tonnes of designed copper smelting 22 | ASIA Miner | July/August 2011
China
which is one of the largest copper polymetallic mines in China. It is a large scale polymetallic deposit consisting of copper , molybdenum, gold, silver, lead and zinc, and is currently in the production stage. China National Gold Gr oup, which owns about 39 % of China Gold Inter national, is currently collaborating with the Nonferr ous Metals Society of China (NMSC) in Beijing to develop multi-metal separation technology which will benefit the Jiama pr oject by improving the methods of separation and r ecovery rate of the various metals. Special technical staff from Jiama are working closely with processing specialists from NMSC to test separation technology of the pr oject in order to further optimize the metal r ecovery rate. NMSC is a national industry society comprising scholars, scientific and technical personnel and enterprise management fr om all fields in the non-ferrous and related industries. CSH 5 5.5 100 11 5000 (770) 2007 7 39% (NMSC)
Silvercorp is developing the GC silver-lead-zinc project in Guangdong Province as its second China production base.
BYP BYP-8 70%BYP --- 69.5 5.0/7.21 10.68/24.585.55/ 10.237.34/ 33.154.34/14.83 7.19/47.29 4.5 / 46.67 4.61 /10.79.46/ 5 252 100 25-503 100112- 3 3 1992 105 36,151 5442.76/ 48.2312 2.45% 5.26% 24 | ASIA Miner | July/August 2011
BYP 400500 3 BYP 137/ New drilling program at CSH CHINA Gold Inter national Resources has started a major drilling campaign at its Chang Shan Hao (CSH) gold mine in Inner Mongolia. The new drill program began in late May and will consist of about 55,000 metr es of diamond drilling in over 100 drill holes. The focus of the drill program is to delineate more resources at depth with expectation to further expand the current mining capacity at CSH. Currently the company has 11 drill rigs turning at the mine site and the total budget for the drill program is about RMB50 million (about US$7.7 million). China Gold Internationals CEO Dr Xin Song says that the mineral r esource at CSH has the potential to be greatly increased after this drill campaign and that the strategy to further expand mining and processing capacities at the CSH gold mine is one of the company's primary goals. China Gold Inter national is a mining company whose principal property is CSH. The company began producing gold at CSH in July 2007. In addition the company now owns the Jiama Copper Polymetallic Pr oject in Tibet,
Mongolia
TUGRIK HEADS NORTH JUST LIKE MONGOLIA

IN 2010 the Mongolian Tugrik (MNT) topped global currency charts, incr easing around 15% to the US Dollar (USD), followed closely by the Australian Dollar (AUD) with a 13% rise. The Mongolian exchange also boasted 138% gains from the year to build a bullish outlook on the country s future as a major commodity exporter, according to Mongolias Monet Capital Investment Bank. The AUD/MNT link is no coincidence, Monet says in a research report. Chinas demand for coking coal, copper, iron and other raw materials is expected to drive this tr end long into the futur e, and as Mongolia builds its exporting prices up to compete on a global scale, the mining sector will lift the countrys currency high. Foreign Direct Investment (FDI) in Mongolia hit a new r ecord in 2010, up 143% YoY to $1.4 billion. Demand for MNT investments has af fected the curr ency directly and continues to do so. Although the nation relies on imports for the majority of pr oducts, demand for its raw materials and heavy investment has driven an influx of dollars and Yuan. The MNT is being bought aggressively as the hunt for r esources builds momentum. In 2011 the Tugrik has appreciated 0.83% after a bold correction from 2010s hike. The hype surrounding Mongolias mining sector has been subdued from its frantic climb and the currency has reflected the lull in FDI. A general market nervousness coupled with certain government decisions has seen the local stock exchange and foreign listed Mongolian companies suffer the withdrawal. The following factors have r eversed investors short term enthusiasm: The Rivers and For ests protection law came into action, thr eatening 1782 of 4000 licences being used in the country. Foreign investments were sold in companies worldwide to prepare for the coming years development, reeling in high gains made on Mongolia-related stocks. The Tavan Tolgoi road was closed fr om over-use, highlighting the lack of infrastructure support for the mining boom. Protests demanding a disbanding of the government and cancellation of the OT agreement threw political instability into the risk mix.
Mongolia
Inflation is a major concer n for the Bank of Mongolia (BoM). A pr omised $1000 gift to each citizen last year and a 30% incr ease in government employees wages has inflamed the World Bank with reports of disapproval, and the IMF predict levels of up to 20% if not controlled properly. Inflation will continue to threaten non-mining sectors as the boom continues and the governments aims for 2011 onwar ds will be to manage this growth accordingly. The BoMs policy for 2010 was somewhat laissez-faire, and monthly curr ency flow reached more than $1.5 billion by year end. In a $6.6 billion economy this is a serious factor in driving up the MNT especially when the , figure continues to increase. About 80% of foreign trade was conducted in USD, r esting the tugrik heavily on the greenback. During May, however, the BoM signed a RMB 5 billion (US$770 million) MNT/RMB swap agr eement with China to allow a more stable exchange with its main trading partner. This had a direct effect on the MNT/USD rate which climbed 5.6% in the week leading to the announcement. However, this has been corrected and the MNT is back on its appreciation trend. The IMF predicts 21% GDP growth in 2014 once Oyu Tolgoi is in full production. The continuing drive from Chinas resource hunger and GDP quotas is expected to boost Mongolia s exports and in turn its currency. For an investor into Mongolia, the currency risk in the mid-term is relatively low. However, there are certain factors that could destabilize its appreciation: Political instability pr otests have been peaceful so far but tension can rise and the government fears backlash fr om any major unpopular decision. Mining is a touchy subject for many Mongolians that may see it as foreign theft, destruction of land and state/investor greed. Chinas backlash although Chinas imports are only expected to grow as its currency appreciates, the macro-economic pressure from artificially r estraining the Yuan could have adverse ef fects on its economy in the long-term. If Chinese competitiveness decreases and its economy slows, Mongolias raw materials will be in far less demand, its exports will suffer, and the currency will deflate. The BoM is confident in its ability to keep the MNT between 1150 -1265 to the dollar in the coming year but Monet predicts this will be a tough promise to keep and the currency may appreciate more as FDI and mining development continues. The MNT will appreciate to near 1000 to the dollar by 2020 if it continues on the curr ent path, and all evidence is supporting a fast appr eciation that will benefit investors greatly in coming years. Pre-strip to start at Southern Oyu PRE-STRIPPING for the phase one open-pit mine on the Southern Oyu deposits at Ivanhoe Mines Oyu T olgoi Copper-Gold-Silver Project is on schedule to begin this quarter . All operational-readiness activities are also on schedule for the projects first open pit while other construction and development activities continue at full pace as the company pr epares for initial commercial production in the first half of 2013. The final selection of the open-pit mining fleet has been made with purchase orders issued to international manufacturers. All major mining equipment has been secur ed in line with the open-pit's pr e-stripping schedule. The supplier for the explosives service contract has been selected and the permit for open-pit blasting has been obtained from the Mongolian Government. Oyu Tolgoi initially is being developed as an open-pit operation, with the first phase of mining planned to start at the near surface Southern Oyu deposits, which include Southwest Oyu and Central Oyu. A copper concentrator plant, related facilities and necessary infrastructure that will support an initial daily throughput of 100,000 tonnes of ore are being constructed to process ore scheduled to be mined from the Southern Oyu pit. Full-scale construction at Oyu Tolgoi continues to advance and key elements of the project, including the concentrator complex, remain ahead of schedule. Official approvals were received in early May enabling the project to proceed with construction of a 95km high-voltage power transmission line to deliver electricity expected to be imported from China to supply the initial mining operation. An 85,000-tonne/day underground blockcave mining operation is also being developed at the Hugo North deposit, with initial production expected to begin in 2015. The throughput capacity of the concentrator plant is expected to be expanded to about 160,000 tonnes when the underground mine begins production. Development of the first lift of the phase-two underground block-cave mine at Hugo North continues while lateral mine development on the 1300-metre level is ahead of schedule.
Construction of the feed conveyors for the SAG mills at the concentrator complex of Ivanhoes Oyu Tolgoi project.
Mongolia
Fluor Corporation is in charge of overall Oyu Tolgoi program management, as well as services related to engineering, procurement and construction management for the or e processing plant and mine-related infrastructure, such as roads, water supply, a regional airport and administration buildings. Meanwhile, exploration drilling at the Southwest Oyu deposit is targeting the downplunge extension of mineralization below the already defined drill resource. The drilling has identified previously undefined mineralization, including 9 8 metr es @ 1.75 grams/tonne gold and 0.64% copper, with a copper-equivalent grade of 1.8%, at a down-hole depth of between 1086 and 1184 metres. Drilling is also ongoing at the Heruga North deposit, the Javkhlant II IP anomaly , on the Shivee Tolgoi licence and at the Ulaan Khud North zone on the Ivanhoe-BHP Billiton jointventure licence to the north. Sharyn Gol expansion plans SHARYN Gol Joint Stock Company is under taking a major strategic r eview of pr esent policies and strategy in order to gain as much benefit as possible fr om its thermal coal r esources in northern Mongolia. The r eview is investigating the potential for an accelerated production expansion to access new domestic, regional and seaborne export markets. The company believes a major pr oduction expansion is supported by a recent resource upgrade, which has mor e than tripled the pre-existing resources, with further exploration upside also identified. The review will enable the company to plan for phased development of a large, long life, open cut and undergr ound mining operation that will help transform Sharyn Gol into a major international mining company expanding on its existing open cut coal mining operation. Prefeasibility study (PFS) level investigations are included in the review for a staged expansion to annual 4-5 million tonnes run of mine (ROM) production over the medium term and 8-10 million tonnes ROM long term. Sharyn Gol estimates that its total thermal coal resource now stands at 374 million tonnes. The company has engaged a suite of Australian consultancy firms to investigate the potential for an expansion in stages. The JORC-compliant r esource comprises 190.5 million measured tonnes, 84.4 million indicated tonnes and 9 8.9 million inferr ed tonnes. Of the overall r esource, 337.6 million tonnes are above 300 metres from the surface, which allows for a continuation of open cut mining for decades. The r esource inventory has been calculated from a significantly larger non-JORC inventory of 437 million tonnes. A new open cut area containing 220.3 million tonnes down to 300 metr es has been identified adjacent to existing open pit while there are also adjacent exploration targets within the companys lease area, demonstrating potential for further large increases to the existing coal resource base. Coal quality and washability test work indicates strong potential to produce a high yield, low ash, moderate to low sulphur , and high calorific value thermal coal pr oduct suitable to export to international markets. The company is also investigating the potential for a low cost and r latively simple two e stage coal wash plant that can produce less than 15% ash thermal coal suitable for r egional and the North Asian seabor ne export markets with this work including investigating the potential for a PCI coal product. It is also studying rail infrastructur e and considering a low-cost capital requirement to reinstate the annual 2.5 million tonne capacity on the companys dedicated 65km rail spur
Mongolia
as well as identifying the capital r equirement to meet medium and long term expansion targets. The spur line is already connected to the Trans Mongolian Railway, which connects the mine 179km north to Russia and 1047km south to Zamyn Uud at the Chinese border. Sharyn Gol chairman B Batmunkh says, The company offers an extremely rare combination in the Mongolian coal mining sector: having a curr ent mining operation, existing dedicated and expandable rail infrastructur e, a large workforce, and now a major resource. New Voyager copper acquisition VOYAGER Resources is expanding its interests through acquisition of up to 80% of the Khul Morit Copper Project in the Gobi region. It is the Australian-listed companys second major porphyry project acquisition in southern Mongolia. Two high order gradient array induced polarization (IP) anomalies have been identified at Khul Morit. These extend for mor e than 800 metres and 2500 metr es respectively, and are broadly consistent with identified copper mineralization identified at surface. The larger anomaly is open to the east. The project comprises five exploration licences for about 50sqkm of highly prospective ground. Limited drilling has r eturned highly encouraging shallow high-grade copper mineralization, including 27 metr es @ 2.09 % copper from 28.8 metres which included 12.5 metres @ 3.63% copper fr om 43.3 metres. This intersection is on the periphery of the smaller 800 metr e-long IP anomaly and remains open along strike and down dip. Voyager plans to undertake the following detailed exploration during the r emainder of 2011: A gradient array IP geophysical survey covering the project area; At least 100 line kilometr of shallow and es deep penetrating Dipole-Dipole or PoleDipole IP geophysical surveys over the identified gradient IP anomalies; A comprehensive gravity survey at 200 by 100 metre spacing for about 4000 stations over the project area; An infill ground magnetics survey at 100 metre line spacing for about 1000 line kilometres; A detailed surface geochemistry program; and Complete at least 10,000 metr es of reverse circulation and diamond core drilling. Voyager believes Khul Morit is an exceptional project within an under-explored world-class porphyry belt that hosts the massive Oyu Tolgoi porphyry deposit, which currently has a resource of 3.75 billion tonnes @ 0.98% copper and 0.38 grams/tonne gold in measur ed, indicated and inferred categories. Meanwhile, the company has r ecently received the remaining analytical results from its Khongor Copper Gold Project in the South Gobi, where drilling focused on delineating extensions and testing shallow geophysical targets outside of the known mineralized near surface areas. Voyager is now undertaking a number of IP, gravity and gr ound magnetic geophysical surveys prior to deeper diamond drilling. The IP survey is essential to targeting deeper mineralization as seen in similar systems such as Oyu Tolgoi. Twenty four diamond drill holes wer e completed for a total of 3170 metres and many intersected porphyry-style copper mineralization. Drilling focused on extensions to the known mineralized system and shallow geophysical targets external to identified mineralization. Best assay r esults include 39 metr es @ 0.5% copper, 0.14 grams/tonne gold and 1.1 grams/tonne silver; 17.3 metres @ 0.5% copper, 0.14 grams/tonne gold and 1.6 grams/ tonne silver; 30.3 metres @ 0.6% copper, 0.15 grams/tonne gold and 1.1 grams/tonne silver; 37.8 metres @ 0.8% copper , 0.15 grams/ tonne gold and 2.3 grams/tonne silver includ, ing 25.1 metres @ 1.1% copper, 0.21 grams/ tonne gold and 3.3 grams/tonne silver; and 5.4 metres @ 1.0% copper, 0.5 grams/tonne gold and 1.9 grams/tonne silver. Hunnu secures Altai Nuurs HUNNU Coal has added to its impr essive array of Mongolian coal pr ospects with the acquisition of a 70% interest in the Altai Nuurs Coal Joint V enture Project in Gobi Altai Province in the countrys southwest. There is an exploration target of between 250 million and 500 million tonnes based on drilling, coal test work and wire frame modelling. Through its subsidiary Hunnu Investments, the ASX-listed company acquir ed Rio Tinto Minerals Developments subsidiary that has a controlling interest in the JV pr oject through 70% of Rio AD LLC, holder of 2 licences in the Gobi Altai, and 70% of Rio Gobi LLC, holder of 8 licences in the pr ovince. Altai Nuurs comprises 6 exploration licences totalling 46,212 hectar es and four mining licences totalling 202 hectares. Preliminary test work indicates a pr emium hard coking coal fraction with 1.6% moistur e, 10.7% ash, 18% volatile matter, calorific value of 7460 Kcal/kg, total sulphur of 0.048% and a coke strength ratio of +70. These parameters compare favourably with similar coking coal projects elsewhere in the world. Altai Nuurs has granted mining licences with a fast track development scenario and Hunnu plans a major drilling program for the remainder of 2011 to follow up the 19,437 metres of drilling completed in 107 RC and cor e drill holes. Preliminary open cut modelling potentially indicates a low strip ratio of 3.5:1.
Voyager Resources projects are in southern, central and northeast Mongolia.
Indonesia
NEW INCO NICKEL PROCESSING FACILITY

pany says it appears that it may only be able to obtain one 10-year extension, continuing its presence beyond 2025 to December 2035. The company has set out a strategic development plan covering ar eas in South Sulawesi, Southeast Sulawesi and Central Sulawesi, which is being discussed with the government. We will start the expansion in 2011 as soon as the gover nment approves our plan, Tony Wenas says. He added that the expected completion of a 90MW hydropower plant in Karebbe, South Sulawesi, in August would also support the expansion of the companys production capacity. The plant would replace a higher-cost geothermal power generator, thereby reducing the companys production costs. Last year, the firm produced 75,989 tonnes of nickel matte, with its entire production sold in US dollars under long-term contracts for r e fining in Japan. Nickel pr oduction in 2011 is planned to be lower than 2010, mainly due to the rebuilding of electric furnace number two. Sulawesi pre-feasibility work SHERRITT International Corporation has allocated $13 million this year for expenditur e at its Sulawesi Nickel Pr oject. The funds will be used to advance pre-feasibility and feasibility work on the project. The Canadian company has been working on permitting to date this year as is pr epares for the next phase of the r esource drilling program, environmental and baseline studies, and the pre-feasibility study. The Sulawesi project is a large, high grade undeveloped lateritic nickel deposit on the Indonesian island of Sulawesi. Sherritt has been appointed operator and will licence its commercially proprietary technology in the Sulawesi project. On November 30, 2010, the company entered into an earnin and shareholders agreement with a subsidiary of Rio T into whereby it could acquire a 57.5% interest in a holding company that owns the Sulawesi Nickel Project upon funding US$30 million and meeting certain other conditions by March 15, 2013. Sherritt may elect to spend an additional US$80 million by December 31, 2016 towards producing a feasibility study fr om which a development decision will be made. If the additional US$80.0 million is not spent, the corporations interest in the Project will be forfeited. In compliance with Indonesian mining law, local Indonesian inter ests are expected to acquire a 20% stake in the project after which Sherritt and Rio Tintos economic interest will be 46% and 34%, respectively. Study work at Tembang SUMATRA Copper and Gold has signed agreements with four leading mining consultancies in respect of the pr e-feasibility study (PFS) for the Tembang Gold and Silver Project, Tembang in Sumatra. The company aims to have the PFS completed during July to pave the way for a definitive feasibility study (DFS) to be carried out in the second half of 2011. The PFS will be prepared with the support of independent consultants including PT Runge Indonesia, L ycopodium Minerals, Knight Pisold and PT MAL Sriwijaya (PTMS). PT Runge Indonesia is the Indonesian subsidiary of the Australian-based inter national consulting group Runge Limited. It will act as co-ordinator of the study and be r esponsible for the mining input and economic analysis. Runge provides consulting, training, and software for the mining and related services industries globally. Runge companies include MRM Mining Services in South Africa, Pincock Allen & Holt in the USA, GeoGAS in Australia and Minarco-MineConsult, mining and energy industry advisors in the Asia Pacific region.
Operations at a PT Inco nickel project on Sulawesi.
PT International Nickel Indonesia (Inco) has partnered with two Chinese steel companies to build a nickel pr ocessing facility in Morowali, Central Sulawesi. The Chinese companies are Baosteel Resources Co and Pan China International. PT Inco, which is a unit of Brazil Vale Inco, s one of the world's top nickel producers, has signed a Memorandum of Understanding to conduct a pre-feasibility study (PFS) to determine continuity of the project. The PFS is expected to be completed during September. In the next five years, Inco aims to incr ease annual production to 90,000 tonnes or up by 15,000 tonnes from the current production of about 75,000 tonnes. President director Tony Wenas says that in order to achieve its target, the company will carry out aggressive exploration and exploitation pr ograms in which mining activities in dif ferent locations will be carried out simultaneously instead of using traditional sequential mining. He says the relinquishment of 28,000 hectar es of its concession areas will not af fect the companys future productivity. Incos capital project control and financial evaluation general manager Bayu W idyanto says this year the company has allocated US$232 million on capital expenditure, which is 27% more than 2010. The investment will include $120 million for sustaining capital, $97 million for growth capital and $15 million for health, safety and the environment. In addition, the company says it intends to set aside funds in the capital plan to build a road from Bahodopi to Sorowako and to develop a Bahodopi mine as part of its CoW undertakings. Inco produces nickel in matte fr om lateritic ores at its integrated mining and pr cessing fao cilities near Sorowako on Sulawesi, wher e it has a contract agreement until 2025. The com-
An overview of Sumatra Copper and Golds Tembang project in Sumatra.
Lycopodium is an Australian-based international engineering services and project management group responsible for metallurgical input and test work and process design. Lycopodium has provided feasibility studies and EPCM services for many r ecent gold pr ocessing plants, of similar design to T embang, in Australia, Asia, and Africa.
Indonesia
Knight Pisolds mining services expertise has been utilized on hundreds of surface and underground mining projects worldwide, particularly with respect to geochemical characterisation, waste management, tailings disposal, heap leach pads, rock mechanics, groundwater evaluation, water supply, water management and environmental services. PTMS, an Indonesian based environmental engineering company, is one of the thr ee companies approved by West Sumatra Government to undertake a full Environmental Impact Assessment for the project. Sumatras managing director Jocelyn Waller says that these appointments represent a significant step towards timely completion of the DFS. We selected each consultant on the strength of their experience and technical strengths, plus their understanding of local culture, conditions and r equirements for project development in Sumatra. Geothermal heats up PANAX Geothermal is close to beginning drilling operations on its first geothermal pr jo ect in Indonesia. Required geochemical sampling works were successfully completed on the Sokoria Geothermal Project in early June.
Panax Geothermal staff test a hot spring at Sokoria watched by interested locals.
Drilling is expected to begin after the findings of the testing have been analysed and a detailed conceptual reservoir model is finalized to confirm preferred sites of appraisal wells. Panax will develop the Sokoria Project in a joint venture with PT Bakrie Power Panax has a 45% . interest and is the operator of the project, which is on Flores Island. Sokoria has a power pur chase agreement of US$125 per megawatt hour for the first 30MW of geothermal production.
ASX-listed Panax has completed a detailed geochemical sampling program for Sokoria which was carried out by Sinclair Knight Mertz New Zealand in conjunction with local Indonesian contractors. The aim of the pr ogram was to finalize all r equired geoscience works prior to drilling operations. The following geochemistry r equirements were identified following a detailed r eview to ensure no information gaps existed:
Indonesia
Gas and condensate samples wer e col- Encouraging samples TERRA Firma Resources, through its whollylected from fumaroles; erra Mineral Gas samples were collected from the ex- owned Indonesian subsidiary PT T Resources Indonesia, has received encouragisting exploration wells; and Water samples wer e collected fr om a ing first reconnaissance sample results from the initial exploration pr ogram at its Malawa number of hot springs and one of the crater lakes on Mount Kelimutu. Gas sam- Property in South Sulawesi. This early field exploration program consisted of pr ospecting, ples are being analysed in Indonesia and reconnaissance mapping and chip sampling. water samples in New Zealand. Panax was assisted with the survey by per sonnel from Department of Mines and Energy, Ende Regency (Flores) and people from Sokoria, Roga and Toba villages. In-house pre-feasibility modelling has been completed on the pr oject. The modelling is based on a 10MW development which will be incr eased to 30MW 12-18 months after the initial development. T otal costs of generation will be about US$57 per megawatt, inclusive of capital and operating costs and costs of finance, and based on A specimen from Terra Firmas Malawa property. average estimated production rates of 5MW per production well. Indonesia is considered a world geothermal hotspot, with the government planning to increase generation by 240% in the next four years to more than 4000MW, or the equivalent of about 12 power stations. The National Geological Agency of Indonesia estimates total geothermal potential at about 27,000MW which is equivalent to about 50 large coal-fired power stations. As part of its carbon strategy, the Indonesian Government Sampling from a small test pit at Terra Firmas Malawa project. has announced a guaranteed feed-in tariff of This work has r esulted in identification of US$97 per megawatt hour, plus carbon credhigh-grade copper mineralization of up to 7% its, to geothermal energy generators. Panax and Bakrie have also agr eed an copper and good grades of silver contained within porphyry copper mineralization and an agreement for joint development of the 165MW Ngebel Geothermal Pr oject in East associated peripheral copper (lead-zinc) Java and have another agr eement with PT skarn mineralization. A total of 19 samples wer e collected along Dairi Prima Minerals (DPM), a subsidiary of Bumi Resources Group, for the supply of up partially exposed bedr ock, mainly along to 25MW of geothermal power for PT DPM s creeks. Sample analytical r esult highlights inunderground Dairi Prima lead/zinc mine that clude 0.10 grams/tonne gold, 26 grams/tonne silver, 1.75% copper, 0.05% lead and 0.01% is to be constructed in northern Sumatra. Northern Sumatra region hosts one oper- zinc; 0.09 grams/tonne gold, 34 grams/tonne ating geothermal power plant at Sibayak ge- silver, 0.94% copper, 0.08% lead and 0.01% zinc; 0.05 grams/tonne gold, 22 grams/tonne othermal field, which is operated by Pertamina Geothermal. This field is under -uti- silver, 4.05% copper, 0.06% lead and 0.09% lized and discussions are under way regard- zinc; 0.17 grams/tonne gold, 57 grams/tonne ing the development of spar e capacity for silver, 7.33% copper, 0.17% lead and 0.10% supplying the Dairi Prima Mine, in a co-oper- zinc; and 1.22 grams/tonne gold, 127 grams/tonne silver, 5.22% copper, 9.91% lead ative effort as part of the binding terms that and 15.4% zinc. have been agr eed between Panax/Bakrie Numerous occurrences of copper gossans and PT DPM. Ther e are also two other advanced geothermal prospects, Pusuk Buhit have been observed within the alteration zones associated with sheared and intensely and Sipoholon, nearby. 34 | ASIA Miner | July/August 2011 fractured rocks. Anomalous gold values of up to 1.2 grams/tonne have also been detected on one sample. On the periphery of the alter ation zone to the east malachite and extensive chalcopyrite veins assaying up to 7% copper have been identified. Float in str eam drainages have been observed to contain mainly chalcopyrite mineralization. The second phase of the exploration pr ogram will consist of trenching, sampling and test pits. Terra Firma's CEO Brian Buchanan says, We are very pleased with the first sampling results that have identified high grade copper and good grades of silver mineralization, within an associated peripheral copper, lead-zinc skarn type mineralization. Terra Firma is a mineral exploration company headquartered in V ancouver, BC, Canada. The companys objective is to develop a balanced portfolio of properties through a combination of grassroots prospecting, property acquisitions and the formation of strategic relationships. The company is investigating a number of potential prospects in Sulawesi and Sumatra, Indonesia. Novienindo due diligence VICTORY West Moly Limited has mobilized an experienced team to undertake technical due diligence at the Novienindo Copper Pr oject in Sulawesi. The project is in a known porphyry province and the geological setting is favourable for exploration of both porphyry copper-gold style mineralization and more discrete zones of higher grade gold mineralization. Fieldwork is being carried out under the supervision of the companys consulting geologist Brett Gunter along with Dr Jonathan Nassey a , copper porphyry expert with mor e than 20 years experience and familiarity with the Novienindo project. The company has also mobilized six senior geologists from its Malala Molybdenum Project for the initial program. The initial field work will consist of: Composition of a series of base maps for the concession area, including topography and geology, research surrounding mineral occurrences and styles of mineralization. Compilation of a database of all work completed in the ar ea since old Dutch gold mining times, digitizing all available data and determining target zones, miner alization styles and compilation of a geological data model on all digital data available. Collecting a series of samples fr om each sample site allocated, including rock chip
Indonesia
float, rock chip outcrop, channel samples, opening a number of old Dutch under ground tunnels for sampling and mapping, collating and digitizing historical working data, Locating old drill collars to confirm their existence, compilation of a geological model of available data and outlining of any exploration target areas. Collecting samples fr om prospective zones encountered in the field, generally mapping the distribution of mineralization to allow an assessment of the target size, describing the geology of the area through observations of float and outcr opping lithologies. Meanwhile, Victory West is in negotiations with the Indonesian vendors of the USSU Nickel Project in Sulawesi to vary the agr eements under which Victory West was to acquire a majority stake in USSU. A technical review has indicated the existence of high grade sapr olite nickel ore and broader limonite and saprolite mineralization, however, it has become clear that in order to raise the significant equity funding r equired for the project, Victory West would have to expand on its exploration activities to build a substantial certified resource before committing further investment. As a r esult of this r eassessment, Victory West has adopted what it considers to be a prudent course of action in the best interests of all parties by seeking to r enegotiate the terms of the current agreement. It is expected the parties will seek to secur e alternative funding from project financiers to develop USSU. PT PUL will continue to spend its own capital to develop the project and has begun pre-strip and development activities on an area of identified high-grade mineralization. Victory West will continue to assist PT PUL through the provision of technical support. Extra land at Belu project KILLARA Resources has acquired an 80% interest in an additional concession at its Belu Manganese Project in West Timor, Indonesia. The acquisition expands the total ar ea covered by the Belu Manganese Project to 5934 hectares. Belu was originally acquir ed by ASX-listed Winchester Resources but in March the company changed its name to Killara Resources. Belu is about 35km east of Atambua, the capital of Belu Regency in West Timor. Atambua is about 20km south of the port of Atapupu. The new CV SA Block A concession is contiguous with the souther n block of the Belu project and consolidates ownership of the complete CV SA concession, which covers an area of 2080 hectares. The acquisition expands the total area cover by the Belu project to 5934 hectares. The project is in an ar ea of known manganese mineralization and is pr edominantly underlain by r ocks of the T ertiary aged Bobonaro Complex, a unit consisting of a clay matrix and blocks derived from older sequences. Rocks of the Permian aged Bisane Formation, which is dominated by dark gr ey shale, with siltstone, calcar eous sandstone, slate and chloritized lava intercalations, occur along the eastern edge of the project area. The area has been subjected to negligible modern exploration, with no drilling or modern geophysics completed. A rock chip sampling program has been completed in the area in the past year by the local concession holder . Results from this program, which consisted of 17 sample points, highlight the distribution of high grade manganese mineralization, with values ranging up to 52.3% manganese and eight of the samples recording greater than 40%.
Laos
EPC AGREEMENT FOR ALUMINA REFINERY

SINO Australian Resources Co (SARCO) has signed an agreement with China Non-Ferrous Metal Industrys Foreign Engineering & Construction Co (NFC) for a futur e engineering, procurement and construction (EPC) contract covering a proposed alumina refinery in Laos with annual capacity of 600,000 tonnes. SARCO is the joint venture company owned by Australian-listed Or d River Resour ces (49%) and NFC (51%). The agreement provides for NFC to deliver the fully operational refinery to SARCO within two years and pr ovide technical assistance and training after the refinery commences operation. NFC will charge a fixed total EPC price of US$1000/tonne of capacity and the total contract value will be US$600 million. The refinery would provide a value-adding component to SARCO s Bolaven Plateau bauxite deposits in souther n Laos. This key development for the integrated pr oject fixes competitive price and delivery time terms, providing the highest level of cost certainty . The fixed price tur nkey arrangement can effectively remove main technical risks and reduce the overall risk of the project. The agreement also provides for NFC to assist SARCO with arranging pr oject financing from Chinese banks. SARCO is currently negotiating with financing banks familiar with such EPC arrangements, such as China Minsheng Banking Corporation (CMBC). Or d River expects Chinese banks to finance SARCO at competitive interest rates in light of the EPC cost certainty. SARCO is continuing discussions with NFC to turn the Memorandum of Understanding into a binding contract. NFC is an EPC specialist firm with in-house world leading alumina r efinery design, engineering, manufacturing and construction capabilities. The company has a track record of successful project delivery and has designed and built 60% of China s entire alumina refinery capacity or 26 million out of 43 million tonnes. In addition, NFC has pr ferential e long term financing support fr om China Eximbank, China Development Bank and CMBC. On May 26 Ord River reached a major milestone in its development as a pr oducer with CMBC stating in a letter of pr oposal to SARCO that it intends to provide the necessary project financing SARCO requires. The letter states, It is the banks intention to provide the necessary project financing SARCO requires. ... We believe the project in Laos presents a significant opportunity for SARCO and the Chinese alumina market. ... We think a 70% lending ratio can be applied to this project. Potential new discovery ORE reserves at PanAusts Phu Kham and Ban Houayxai pr ojects have incr eased by 37% and 29% respectively while drilling at the Long Chieng Track (LCT) prospect adjacent to the operating Phu Kham copper -gold project has revealed a potential new discovery . The drilling intersected a zone of massive sulphide mineralization and a zone of high-grade gold mineralization. On hole at LCT, which is about 6km northwest of Phu Kham, intersected 18 metr es @ 1.015 copper, 3.42 grams/tonne gold and 94.9 grams/tonne silver fr om 91 metres, including 6 metr es @ 2.9 6% copper , 9 .40 grams/tonne gold and 273.4 grams/tonne silver from 100 metres. Another hole intersected 5 metres from 212 metres @ 38.9 grams/tonne gold and 10.8 grams/tonne silver. The massive sulphide zone is beneath previously identified gold oxide mineralization. T o date six holes have been completed and drilling will resume in the September quarter, following the wet season. The program is aimed at testing previous mineralization intersected in RC drilling and to test the potential for the gold cap mineralization to overlie copper-gold mineralization, as was the case at Phu Kham. The total Phu Kham reserve tonnes have increased by 37% and contained copper, gold and silver have increased by 20%, 38% and 55% respectively when compared with the previous 2010 estimate after being adjusted for mining depletion during 2010. Ther e are now 210 million tonnes @ 0.53% copper , 0.24 grams/tonne gold and 2.1 grams/tonne silver for 1.12 million tonnes of contained copper, 1.63 million ounces of gold and 14 million ounces of silver. The revised reserve estimate supports a mine life of more than 14 years assuming that the current annual ore processing rate of 12 million tonnes will increase to 16 million from mid-2012 following implementation of an upgrade. When compar ed with the 2010 r eserve, this represents an increase in mine life of more than 3.5 years and a r eduction in strip ratio from 1.5:1 to 1.1:1. The increase is largely due to additional mineralization resulting from infill and resource extension drilling together with a new r esource model which incorporates improved gold and silver grade estimation, and revised metallurgical assumptions. Extensions to the known deposit have been intersected in 2011 and, subject to mine design work, should further extend the mineral resource and ore reserve. Total Ban Houayxai ore reserve tonnes have increased by 29% and contained gold and silver ounces have incr eased by 21% and 39% respectively.
Crushed ore is moved to the grinding circuit at PanAusts Phu Kham project.
Thailand
EPC AGREEMENT FOR ALUMINA REFINERY

THE new Chatr ee North mill expansion at Kingsgate Consolidateds Chatree Gold Project is now fully funded and r emains on budget and schedule. The new plant is pr ojected to ramp up to full annual capacity of 5 million tonnes by the end of December 2011. Kingsgates Thai subsidiary, Akara Mining, has executed a US$100 million baht denominated syndicated loan facility that completes its funding r equirements for the expansion and has also r eceived final approvals to access all mining areas at the Chatree project. As well as the expansion work, Akara curs rent focus is to addr ess a wall failur e and stress cracks that wer e accentuated by the early onset of the wet season. The mining operations will then have the flexibility to blend high and low grade areas during the 2012 financial year with the company expecting a strong gold production performance in the December 2011 half year. Kingsgates managing dir ector Gavin Thomas says the Chatree process plant has been very reliable and has operated at over 98% availability since it started in its curr ent configuration in 2003. During May the plant was abnormally impacted by a mechanical breakdown when the SCA TS crusher motor failed. The rewound motor also failed upon installation before a replacement motor was successfully installed in late May . This impacted gold production during May but by month-end the plant capacity was back to normal levels. During this period of reduced capacity, and with the low grade nature of current ore feed, a SAG mill r eline scheduled for July was brought forward by about six weeks. This took nearly two days and together with the impacts from the onset of the heaviest early wet season since Chatree began operations in 2000, further impacted production. A subsequent production review was undertaken and concluded that the lost gold pr duco tion was not r ecoverable in June and, as a consequence, production for the current financial year is expected to be just under 80,000 ounces. Group gold production for the year is now expected to be nearly 120,000 ounces.
The Chatree operations of Kingsgate Consolidated are in central Thailand.
Cambodia
STOCK EXCHANGES FOR CAMBODIA AND LAOS

CAMBODIA is this month set to join the growing list of Asian countries boasting stock exchanges. The Cambodian exchange is due to open its doors in July with thr ee stateowned enterprises the first to go public. There are a number of overseas entities operating in the vastly under -explored kingdom with most being juniors seeking to capitalize on the opportunities that are undoubtedly present. However, most local businesses operating in the mining sector are family owned and operated, as are most other businesses in Cambodia, which means they will need to restructure of they aim to list on the new exchange. Securities and Exchange Commission of Cambodia deputy director general Kao Thach recently told the media: Fr om the issue side, they need to restructure, most of the companies are family orientated, so they need to r structure e to have a board, and they need to convert from the Cambodian accounting standard to IFOS, which we (will) put into operation by end of this year - that is a big challenge for them. Experts say that it may take some time for the new exchange to attract foreign funds because there are still some gaps in r egulations while local companies will also r equire time to adjust to the listing environment, including the many requirements. This is also the case in neighbouring Laos, wher e a new stock exchange was launched earlier this year. There is room for optimism with the new ventures, as evidenced by exchanges in other frontier economies of Indonesia and the Philippines which have attracted investors looking to tap into growth after making cautious starts. Laos, which has enjoyed average GDP growth of around 8% for the last four years, launched its exchange with two listed companies and a few in the pipeline. Experts say it could hold some potential but it will take some time for the market to be stur dy enough to attract for inter national investors. They also expect traditional sectors such as agriculture, mining and the services sectors to be drivers of the fledgling exchange. DFDL Mekongs country managing director William Greenlee told media: The rules at the moment, they are quite extensive, (but) there are some holes - you have the general framework guidelines of what they have to do, however there needs to be more detail added which will come. The state-run companies that are going to be listing in the futur e, you have a telecommunications company that is rumoured to be listing soon, and you have Lao Airlines, you have a cement company - all ar e very good assets as far as we know ... maybe in a year or two, when large inter national companies that have local entities may list, that is what I am looking forward to. For a company to operate, it must have a Lao entity, a subsidiary, so those are the entities I think in the next couple years once they see the exchange is operating well and that ther e is transparency, there is certainty. We will then see the exchange really pick up some steam. Positive Southern Gold hits PRELIMINARY results from Southern Golds most recent drill campaign show positive gold and base metal hits. Initial assays of up to 5 metres @ 5.42 grams/tonne gold from 73 metres and 3 metr es @ 8.51 grams/tonne fr om 58 metres plus visual logging identifying economic minerals within core show the company has hit targeted mineralization zones. There were 35 holes drilled during the 2010/2011 campaign at two of Souther n Golds five prospect areas Kratie South and Memot. The company believes that its tenements are prospective for intrusive r elate shear and vein hosted gold and base metal mineralization similar to that of the 600,000 ounce gold resource defined by Oz Minerals in March 2010 at the Okvau project, which is 10km north of the Kratie South area. The majority of work during this campaign has been completed at the JOGMEC funded Kratie South joint ventur e with 23 diamond holes drilled at Gossan, Pr eak Khlong NW and OKhtung SE prospects for 3888 metres of core. The aim was to test geochemical targets generated in 2010.
Southern Golds tenements in eastern Cambodia.
Vietnam
PHUOC SON GOLD PROJECT RAMPS UP

which the company aims to complete during the current quarter. The site has pr oduced surface samples with gold values as high as 47.3 grams/tonne. The program follows a geologist s report which recommended a detailed drill pr ogram to test the subsurface potential. Given positive test results, a further drilling program would be initiated that would require another 12 months. Nat Son is about 50km southwest of Hanoi in the centre of the gold-rich Kim Boi deposit. Exploration interest in the pr operty is based on the presence of gold-silver bearing quartzarsenopyrite veins which are exposed at surface and within rudimentary undergr ound mine workings. The veins have been examined and studied over a strike length of 4km. Strategic is also continuing negotiations to acquire an interest in the Dong Thanh gold property. Samples are being tested by a well qualified US metallurgist to determine the cost and the best method to attain the highest extraction level for the gold. The r esults will assist in finalizing an agreement.
One of the two ball mills at Olympus Pacifics new Phuoc Son processing plant. Daily starting capacity is 500 tonnes.
OLYMPUS Pacifics new processing plant at the Phuoc Son Gold project in central Vietnam is ramping up to full capacity after commissioning was completed during the second quarter. The plant has two ball mills and daily starting capacity is 500 tonnes. The company acquired the Bong Mieu property in 1997 and was granted exploration licences at Phuoc Son, further to the west, in 1999. Today the company is producing gold at its two processing plants. The Bong Mieu plant was built in 2005 and is producing from openpit and underground mines. The second pr ocessing facility at Phuoc Son is processing ore from two underground mines. These mining operations ar e being developed at the souther n end of the licence ar ea and the project contains an open ended NI 43101 resource estimate. It has been producing grades in excess of 15 grams/tonne gold and ore has been pr ocessed at Bong Mieu until completion of the new plant. Phuoc Son is within the same plate-tectonic and metallogenic setting as the nearby Sepon copper-gold mine in Laos. The Phuoc Son area is in general largely unexplored, with large exploration upside potential. It boasts relatively high-grade, quartz vein hosted mineralization with high-grade ore-shoots plunging northwest and occurring repetitively along strike. The company expects to pr oduce 48,000 ounces from its Vietnam properties in 2011, increasing to 72,000 in 2012, 105,000 in 2013, 136,000 in 2014 and 168,000 in 2015.
At Phuoc Son total cash costs per ounce are $465, excluding the 15% r oyalty. As at March 2011 ther e are measured and indicated resources, which include pr oven and probable reserves, of 619 ,341 tonnes @ 9.39 grams/tonne for 186,942 ounces and total inferred resource is 2.481 million tonnes @ 6.01 grams/tonne for almost 480,000 ounces. The company has a potential target range of 1-3 million ounces. At the Bong Mieu open pit and underground operations total cash costs per ounce in 2011 are $830 excluding the 3% r oyalty. There is a 3000 hectare licence area and the potential tar get range is 1-3 million ounces. The total measured and indicated resource is 3.2 million tonnes @ 1.75 grams/tonne for 180,658 ounces and the inferred resource is 4.729 million tonnes @ 1.40 grams/tonne for 212,930 ounces. Nat Son drilling starts STRATEGIC Mining has started a 2500 metre drilling campaign at its Nat Son gold property in Hoa Binh Province, northern Vietnam. The program aims to define gold r eserves and to give exact locations where to begin mining operations. The drilling using a Boart Longyear LF 70 was due to begin earlier in the year but was put back owing to unanticipated delays at customs and the need to or der additional parts for the rig, which is the first angular core drill rig to be used in the province. A geologist and drill crew arrived in Vietnam in late May to begin the deep-hole pr ogram,
Drilling at a Strategic Mining property in Vietnam.
Strategic has recently appointed Ken Baird as new CEO and director, replacing Todd Sterck, who has been appointed to manage the V ietnam operations on a fulltime basis. Ken Bair d has more than 30 years diversified international experience in the mining and exploration industry, including stewardship of three Toronto Venture Exchange exploration companies. In 1995, he negotiated the financing and operating lease to put the Edwards Gold Mine in Ontario into production. This yielded more than 140,000 ounces in its first four years. His experience also includes the financing and management of several private gold and diamond mines in Canada and South America, and managing numerous exploration programs in Central America and Canada.
Malaysia
MONUMENT CONSIDERS MENGAPUR PROJECT

MONUMENT Minings wholly-owned subsidiary Monument Mengapur Sdn Bhd has enter an ed agreement to acquire the Mengapur Polymetallic Project in Pahang State. The project, which is 130km from the company's Selinsing Gold Project, has historic sulphide and oxide r esources of copper, gold, silver and sulphur. Monument Mengapur has entered a memorandum of understanding (MoU) with Malaco Mining Sdn Bhd and Malaco's wholly-owned subsidiary Cermat Aman Sdn Bhd, both incor porated in Malaysia, to acquire the project. The acquisition remains subject to due diligence, updating of historical resource and reserve estimates, signing of a definitive sale and purchase agreement, financing, boar d and regulatory approvals and other conditions. Upon completion of the acquisition, Monument would hold a 70% pre-financing interest. Mengapur was first discovered by a drilling program carried out by the Geological Survey of Malaysia. It is in central Malaysia, 12km fr m o a highway and 75km from the port of Kuantan. Historical economic and r esource estimates on the project were completed and published as a definitive feasibility study in October 1990. The study contains 10 volumes of comprehensive supporting documents, which r esulted from a 10-year, 58,000 metre diamond drilling program costing about US$40 million. This was carried out by the Malaysian Mining Corporation (MMC), a Malaysian gover nment-owned corporation. It shows a pr oven and probable sulphide reserve of 64.8 million tonnes @ 8.67% sulphur, 0.27% copper, 0.21 grams/tonne gold and 2.59 grams/tonne silver; a measured and indicated oxide r esource of 21.272 million tonnes @ 0.6% copper , 0.1 grams/tonne gold and 26.76 grams/tonne silver; and a measured and indicated sulphide resource of 203.137 million tonnes @ 7.222% sulphur , 0.21% copper, 0.15 grams/tonne gold and 3.68 grams/tonne silver. Monument considers this study to be r elevant as it will be further r eviewed and upgraded as part of the due diligence pr ogram, however, it is an historic document completed prior to the intr oduction of NI 43-101 standards and should not be r elied upon. Monument is not treating the historical estimate as current mineral resources or mineral reserves as those terms are defined in NI 43-101.
Drilling operations at Olympus Pacifics Bau Gold Project in East Malaysia.
The study pr oposed construction of a process facility, roaster and supporting infrastructure and other supplemental processing facilities. According to the study, the facilities were expected to provide capacity for annual treatment of 2.5 million tons for a mine life of 23 years. Other activities including further acquisitions and area exploration could further increase this mine life as the r esource was found to be open in all directions. In conjunction with the intended acquisition, Monument has approached Snowden Mining Industry Consultants to undertake a critical review and update of the study. As a part of this updated study, Snowden will review the resource and reserve estimates. The acquisition is expected to complement the pr esent gold production, exploration and other activities of the company in Peninsular Malaysia. Positive Bau drilling POSITIVE drilling results continue to enhance the prospects of Olympus Pacific Minerals at the Bau Gold Pr oject in East Malaysia. The drilling is enabling the company to expand resources and advance plans for achieving commercial production status by 2014. The most recent program has returned a high value mineralized intercept at the Bekajang prospect which assayed 40 metr es @ 4.79 grams/tonne gold, including 20.5 metres @ 6.91 grams/ tonne and 2.5 metr es @ 18.64 grams/tonne. Positive intercepts were also received from the Tai Parit structure in the Taiton sector, including 3 metres @ 8.73 grams/tonne and
2.5 metres @ 18.64 grams/tonne in one hole; 12.32 metres @ 2.54 grams/tonne, including 4.02 metres @ 4.66 grams/tonne in another; 19.4 metres @ 1.60 grams/tonne, including 5.8 metres @ 2.37 grams/tonne; and 14.2 metres @ 1.50 grams/tonne, including 2.4 metres @ 5.97 grams/tonne. A new major mineralized structure has also been delineated in the T aiton sector. The Taiton-B massive mangano-calcite vein has now been mapped over 1.5km of strike length. A 700 metre section of this vein has historically been underground mined on 3 levels, but strike and depth extensions r emain unexplored. Assays of 74 vein outcrop rock chip samples ranged from 0.16 to 62.0 grams/tonne gold, with 48% r eporting above 1.0 grams/tonne and averaging 7.85 grams/tonne. Two scout holes drilled into the souther n section of this vein intersected mineralized vein/breccia intercepts of up to 9.30m width. Mineralization has been intersected in the Juala sector where drilling is appr oaching a major anomaly at depth. Drilling is following up a prior intersection of promising gold-coppermolybdenum porphyry-style mineralization and auriferous contact skarn mineralization. Olympus Pacific is carrying out detailed geological mapping/sampling and drilling along historically productive but r elatively unexplored fault systems. Re-analysis and 3D modelling of airborne DIGHEM and Magnetic datasets is also revealing multiple exciting drill targets, which are being prioritized for systematic drilling in coming months.
Malaysia
A sample preparation facility and fully accredited fire-assay laboratory has been built on-site and is now independently operated by SGS Group. Full QAQC procedures are in place and assay turnaround time is dramatically improved. The Bau project has been independently assessed as having NI 43-101 gold r sources of: e 560,000 indicated ounces and 1.89 million inferred ounces. This r esource includes several different mineralization styles, in multiple deposits that have to date been drilled only to shallow depth and remain open to further expansion through continuing exploration. During coming months, Taiton sector stepout and in-fill drilling will delineate the gr oss mineralization geometry and gold grade distribution within the main structures to depths of 200-300 metres. It is expected that by the fourth quarter, drilling will be adequately advanced to allow estimation of expanded r esources for input into definitive mining feasibility studies during 2012. LAMP feed in September CONSTRUCTION of the L ynas Advanced Materials Plant (LAMP) for the pr ocessing of rare earths is on schedule with the first feed to kiln on target for September The basic en. gineering design for phase two of the LAMP has been completed and the tender process for the engineering, construction, pr ocurement and commissioning contract was car ried out during the second quarter. The plant is being constructed in Gebeng Industrial Estate, Kuantan, Malaysia, and Lynas Corporation continues to work with Malaysian authorities, including the Atomic Energy Licensing Board and the Department of Environment, to ensur e that ongoing pr oject construction continues to meet all r equirements and adheres to international standards. Lynas has received all required approvals to construct the LAMP and is applying for all pr , eoperation and operation approvals. The ASX-listed company has welcomed the appointment by the Malaysian Gover nment of an independent panel of inter national experts to conduct a one-month review of the health, safety and envir onmental aspects of the LAMP to addr ess public concern in Malaysia. The company r emains confident the review will reconfirm that the plant is safe and presents no hazard to the community or Lynas workers.
Construction work on Lynas Corporations advanced materials plant in Malaysia.
Papua New Guinea
INNOVATIVE DRILLING AND SAMPLING AT WOWO GAP

prospect in the Prince Alexander ranges. The acquisition is under a partnership with local company South Pacific Connection and makes up 80% of the site. The prospect is in the world renowned copper-gold porphyry system along the volcanic belt known as the Pacific Rim of Fir e. Other operators in the belt include Newmont Mining, Barrick Gold, Goldmine, Xstrata and Frontier Resources. Targets are very high grade epithermal and skarn gold, bulk mineable intrusive r elated gold and porphyry copper-gold-molybdenum deposits. Alluvial gold at the site is being worked into streams from extensive uplifted auriferous palaeogravels, including the flanks of the Jurassic metamorphic and intrusive core of the Prince Alexander mountains. The areas gold is accompanied by traces of platinum with minor primary gold and base metal mineralization associated with hydrothermally altered intrusions. The mountain range has a long history of mining by locals for high distinction alluvial gold. Daultons CEO Terry Fields says W e are looking forward to working with South Pacific Connection to advance our strategically positioned Wewak prospect and are anxious to get our work program under way as quickly as possible. Gold continues its upwar d thrust, helping make our purchase potentially valuable for our shareholders. Our strategy focuses on developing a limited risk portfolio of inter national exploration and mining opportunities with r esponsible and community-strengthening business best practices. Papua New Guinea is of gr eat interest to the company, because of its high mineral content of gold, silver , platinum and other minerals. Daulton Capital has also signed a Letter of Intent with South Pacific Connection to acquire a 64% working interest in the oil, gas and liquid natural gas rights of a property in PNG. We believe this agreement will be in keeping with Daulton s corporate philosophy . Terry Fields says. Daulton Capital is being presented with a great opportunity to participate in a pr olific proven hydrocarbon province, a Commonwealth country with significant international Liquid Natural Gas interests close to the Asian markets that is relatively underexplored.
Logging core from Resource Minings Wowo Gap Nickel Laterite Project.
RESOURCE Mining has received high praise for its innovative drilling and sampling exploration at the Wowo Gap Nickel Laterite Project in the countrys south east, about 200km east of Port Moresby. Wowo Gap is a worldclass prospect with an independent valuation in 2009 listing it as worth Aus$168 million. Australian-based Resource Mining has focused its attention for the last few years on developing this resource. An independent inter national geological consultancy company has completed the due diligence study on the company proces dures. The site visit and study was under taken by GeoRes specifically to meet Canadian NI 43-101 standards for technical reporting of mineral projects. The innovative approach to drilling, employment and transport was taken by the company because of the pr ojects remote mountainous location and desir e to employ local villagers. Resource Minings managing director Warwick Davies says The aim of the due diligence study was to obtain an independent thir party d expert opinion on our pr ocesses, so that we can meet international standards and gain access to additional capital markets to raise mor e funds to further develop this exciting project.
Theres no roads where were operating and transport is via a day s walking or helicopter. Because we want to engage with local landowners in a sustainable way we have had to come up with new and innovative solutions to exploring for nickel in a tropical rainforest environment, he says. One of the innovations includes the use of a custom-made man-portable core drilling rig capable of much faster , higher quality and more cost effective drilling using a largely unskilled local workforce. The first stage of the drill program has confirmed mineralization to the north and south. Warwick Davies says The idea for an auger based drill rig actually came fr om technology being used to dig fence posts in farming and were delighted this innovation and others have been independently verified as being well founded, completely applicable to good exploration of a nickel laterite-type deposit and meeting high international standards. We want to set world-class standar ds for this world class nickel deposit. Daulton gains Wewak prospect NEVADA-based precious metals exploration group Daulton Capital has pur chased 750,000 hectares of the gold-rich W ewak
Papau New Guinea

funded by Mincor under the agreement, Bolo- Yandera drilling ramps us Mincor in joint venture deal bip and Kabuna, are considered promising for DRILLING at Marengo Minings Yandera copAUSTRALIAN nickel mining company Mincor has signed a joint ventur e with a PNG-based porphyry copper-gold mineralization. Bolobip per, molybdenum and gold project in Madang exploration company to secure an Aus$30 mil- is close to the very large OK T edi porphyry province has ramped up with five rigs emlion gold and copper portfolio. The agr eement copper-gold mine. Its in a remote area which ployed on the deeps program as well as infill, with Niuminco provides Mincor with a pipeline is difficult to access, however soil, r ock and resource and geotechnical drilling. There were 21 holes strategically placed at of growth assets ranging from the advanced- stream sediment sampling carried out since Gremi in the central copstage Edie Creek gold projper-molybdenum porect as well as projects with phyry system to give the identified targets and prommaximum measured reising historical drill intersecsource for the next r etions through to early stage source estimate. One prospects with as-yet deep hole was completed untested potential. at Imbruminda and a secMincor will fund a variety ond has been comof exploration licences at menced in the same zone, Edie Creek, May River , with core logging r esults Bolobip and Kabuna as showing good mineralizapart of the ventur e. The tion down to 650 metres. company says this venture The resource drilling represents the most signifThe prospects involved in the joint venture between Mincor and Niuminco are close to major operating projects. program has focused on icant new business development initiative undertaken by management the 1960s has revealed two broad areas that extending data at the Dimbi and Imbruminda zones, while the geotechnical pr ogram inare anomalous in copper, gold and zinc. since its successful acquisition of the Otter The Kubuna licence is about 10km south of volved a total of four holes investigating Juan nickel mine in 2007. the operating Tolokuma gold mine, with rea- waste rock dump possibilities in the Tai-Ayor We are delighted to partner with Niuminco to pursue the exploration and development of sonable access to infrastructur e. Historical and Imbrum River valleys. At the Gremi zone, best results from the infill these mineral projects. Through this venture I stream sediment sampling has yielded nudrilling include 15 metres from 294 metres @ merous gold anomalies. believe we now have some of the best 0.32% copper, 272ppm molybdenum and David Moore says Both of these licence prospects in PNG, and this is elephant country for world-class deposits. Mincor has the skills, areas are considered by Mincor to be early- 1.65 grams/tonne gold. Another hole at the stage exploration prospects that lie within Gremi zone r evealed high molybdenum experience and funding to bring them to ackey crustal corridors that elsewher e host grades of 485ppm fr om 228 metres to 368 count, says managing director David Moore. some of the worlds most valuable or e de- metres with 0.22% copper, 0.77 grams/tonne The Edie Cr eek gold pr oject is located in goldfields about 200km north of Port Mor sby. posits. They both contain known geochem- silver and 0.08 grams/tonne gold. e Best assay results for the deep drill hole at Its between the giant Hidden Valley and Wafi- ical anomalies and ar e considered highly prospective for epithermal and mesothermal Imbruminda include 9 9 metr es @ 0.34 Golpu gold/copper deposits under development by Morobe. The project covers an historic gold mineralization and very large porphyry grams/tonne gold and 63 metr es from 303 metres @ 0.42% copper , 0.17grams/tonne gold producing area with minimal modern ex- copper-gold mineralization. ploration. Alluvial gold mining began at the site in the 1920s with underground operations following, but then ending during WWII. Structurally controlled epithermal gold-silver mineralization is widespread on the pr ojects tenements. Mincors aim at Edie Creek is to delineate a multi-million ounce gold resource. The May River exploration licence is next to Xstratas Frieda River copper/gold project and historic drill intercepts there include 109 metres @ 1.53 grams/tonne gold and 19 metr es @ 11.4% copper and 2.7 grams/tonne gold. The licence covers the same structural corridors of copper, gold and base metal mineralization as the Frieda deposit which is estimated to contain a total metal content of 8.6 million tonnes of copper and 14.3 million ounces of gold. The remaining two exploration licences to be Core tables at Marengo Minings Yandera project in Madang province. July/August 2011 | ASIA Miner | 43
Papua New Guinea

gold and 87ppm molybdenum. Best chip sampling results from the Dimbi zone are 276 metres @ 0.52% copper , 68ppm molybdenum and 1.45 grams/tonne gold. Marengos managing director Les Emery says A major focus of the last quarter has been working towards the completion of the definitive feasibility study (DFS). The r ecent 32% upgrade to the resource estimate and further open pit mine optimization programs will be fed into the financial model component of the DFS. The company intends to enter into formal agreements with its strategic Beijing-based partner China Nonferr ous Metal Industrys Foreign Engineering and Construction (NFC) for it to become the principal contractor for construction of the Yandera project. Work on the project is expected to begin in the first half of 2012. The NFC group has either built or is curr ently building major copper and other base metal pr ojects in Iran, Zambia, Mongolia and Kazakhstan. Rock chip sampling has confirmed anomalous grades of copper at the Kulu pr ospect, which is 5km southeast of Simuku. Mor e than 200 samples have shown average grades of 0.11% copper which are consistent with historical surface sampling and drilling results. Reconnaissance mapping by Barrick at Simuku has also helped to define structural information to show the majority of structur es dip east-southeast. The Nakru project is a four hour drive from Kimbe. It contains a number of discr te mase sive sulphide and br eccia related coppergold-zinc systems. Drilling at Nakru-1 will test for additional mineralization after the first drillhole intersected 213 metres @ 0.92% copper and 0.33 grams/tonne gold. Assay r esults from drillholes at Nakru-1 show copper mineralization over at least 500 metr es strike length. It also shows a high grade silver vein with an inter cept of 0.7 metr es @ 432 grams/tonne silver, 9 43ppm molybdenum and 1340ppm niobium. Two initial drill holes by Coppermoly at Nakru-2 encountered a primary copper zone intersecting 64 metres @ 0.59% copper between 141 metres and 205 metr es. A high grade silver vein similar to that at Nakru-1 was also intersected - 0.9 metr es @ 474 grams/tonne silver, 258ppm molybdenum Coppermolys managing dir ector Peter Swiridiuk says With this years drilling program, we look forwar d to continuing r esults to improve the value of the projects. At a time where the industry is challenged to provide a future supply of copper to a gr owing demand, our copper projects are well placed for their size, grade and location. Two other tenements are under application by Coppermoly on New Britain and ar e not part of the Barrick agreement. The Powell and Fulleborn tenements cover almost 1500sqkm on the southeast extent of the Kulu-Awit copper belt and are pending a Wardens hearing by the PNG Mineral Resour ces Authority. These tenements contain copper and gold prospects with rock sample assay results including 10.7% and 2.9 1% copper and 20 grams/tonne gold. It s expected the tenements will be granted later this year. Crater Mountain drilling extended A FURTHER 10,000 metre drill program at the Nevera prospect of Gold Anomalys flagship Crater Mountain pr oject is under way with a second drill rig sour ced for the work. This program is expected to be finished by December and is aimed to confirming the feasibility of expediting a shallow, small-scale open pit operation to generate cashflow. Crater Mountain is an advanced exploration project of about 300sqkm in the PNG Highlands. The site is about 50km southwest of Goroka and the sealed Highlands Highway which links Goroka to the port at Lae. Despite this relative proximity to a major populated centre and infrastructure, the Crater Mountain area is rugged and r emote, with previous exploration hampered by poor access and volcanic ash deposits which obscur e much of the prospective geology. Results for the companys second drill hole at the prospect have revealed an intersection of 215 metres @ 1.46 grams/tonne gold from 181 metres.
Drilling at Nakru and Simuku DRILLING to assess the economic mineral potential at two of Coppermolys PNG projects by Barrick Gold is under way . Barrick has spent half of the agr eed Aus$20 million on exploration including collation, validation and integration of historic data to plan for this year s field program at the Nakru and Simuku tenements. Coppermolys three separate projects cover 170sqkm on New Britain Island. The Simuku project is about an hours drive from existing infrastructure. The inferr ed mineral resource at the site is 200 million tonnes grading 0.36% copper for 700,000 contained tonnes of copper, 12,000 tonnes of molybdenum, 12 tonnes of gold and 39 1 tonnes of silver . Three drill holes have been completed by Barrick at the pr oject for a total of 1635.7 Coppermolys Nakru and Simuku tenements are on New Britain Island. metres. This adds to the 31 and 433ppm niobium. Additional geophysical historical drill holes at the site over a total of surveys have revealed other anomalies at the 7656.7 metres. At Nayam, drilling inter cepts of 93 metr es Nakru-3 and Nakru-4 copper and gold prospects. These remain untested by drilling @ 0.59% copper include an upper zone of secondary enrichment of 18 metr es @ 1% though, with surface r ock chip samples r eturning up to 1.2% copper. copper from 8 metres depth. 44 | ASIA Miner | July/August 2011
Papau New Guinea

Gold Anomalys exploration director Peter Macnab says Drilling r esults to date continue to impress and support the possibility that a multi-million ounce gold deposit exists at Crater Mountain. The upside of the project is tremendous, given that we have just started exploring the area and have drill tested less than 10% of the anomalous gold zone at Nevera, which accounts for less than 4% of the entir e Crater Mountain tenement. Five drill holes have been completed by Gold Anomaly for a total of 2537 metr s. The e first drill hole, 100 metr es west of the latest hole, returned intermittent gold grades up to 16 metres @ 1.92 grams/tonne gold. These grades are considered to be related to faultcontrolled apophsyes of mineralized intrusions, above the main-mineralized zone extending to near the surface. Gold grades in the second hole ar e higher than the first, which indicate a closer proximity to the interpr eted deep-seated intrusion-r elated feeder zone. Executive chairman Gr eg Starr says that reinforces the decision to drill several 1000 metre holes in the next phase. In light of these very promising results, a follow up drilling program incorporating a number of deeper holes targeting the interpr eted feeder zone is planned for the second half of 2011. Peter Macnab says W e continue to be encouraged by the very positive drilling results at Crater Mountain. The sheer length of mineralization encountered with our drilling is consistent with results from previous owners including BHP. The results back up their assessment that Nevera is a best prospectivity asset. These results highlight the view that Crater Mountain will ultimately be shown to host a significant, high tonnage, low grade gold deposit, he said. The company has recently raised Aus$3.6 million in a placement with these funds to be used in the expanded drill program.
The Crater Mountain project is in the New Guinea Orogen which hosts many large projects.
Central Asia
STANS COMPLETES RARE EARTHS PLANT PURCHASE

of which has been decommissioned and wont be used in the re-design. Much of the technology used in plant 1 is now redundant as newer Sorption technology is now mor e efficient and less damaging to the envir onment as a method of r emoving radioactive materials. The second plant will be r efurbished and reassembled by Stans for separating the mixed rar e earth solution. The equipment for this plant has been stored at a nearby location along with parts from plant 4. Plant 3 separated the middle rare earth and the heavy rare earth concentrates into final oxides, metals, alloys and nitrate solutions. This plant was never used to its full capacity by the Soviet government and is in good working condition. A feasibility study will determine whether Stans will need to reassemble plant 4 to produce final oxides from plant 2, or whether it will simply sell light rare earth concentrate directly derived from the second plant. Report says extend Kumtor AN updated technical r eport for Centerra Golds Kumtor project in the Kyrgyz Republic recommends extending open pit and milling operations to 2021. The new report includes data from drilling exploration programs in the first half of 2011 and is based on open-pit mineral reserves. Holes wer e drilled at the Kumtor central pit as well as the northeast and southwest deposits, with regional drilling completed at the Kumtor concession area at the Petrov and Muzdusuu prospects.
Stans Energy now has a processing plant to add to its rare earths properties in the Kyrgyz Republic.
STANS Energy has completed its US$5.5 million acquisition of a heavy rar e earth processing facility and private rail terminal in the Kyrgyz Republic. The facility pr ocessed rare earth elements from the companys nearby Kutessay 2 open pit mine during the Soviet era and is an integral part of the company s plans to become a near term pr oducer of heavy rare earth elements. When known as the Kyrgyz Chemical Metallurgical Plant it pr oduced 80% of the former Soviet Unions REE products. It has been r enamed the Kashka REE plant and is the only past producing REE plant outside of China. The newly purchased rail terminal connects to the Central Asian rail network connecting to Russia and all Asian countries, and by ferry to Japan. The plant is 140km by road from the Kyrgyz capital Bishkek, with established power and a rail line 43km away. The open pit mine has pr e viously produced all 15 REEs at purities of 9 9 .9 9 %. An independent technical r eport completed in March 2011 included a JORCcompliant mineral resource estimate of 42,980 tonnes RE2O3 at an average grade of 0.264%, plus an additional inferr ed resource of 3560 tonnes at an average grade of 0.204%. Stans has hir ed a former engineer who worked with the Russian institutes that designed and built the complex as its new dir ector general. Leonid A Bulyonkov is r ecognized as a rare metals and radioactive processing specialist. Stans CEO Robert Mackay says, The completion of this transaction is a crucial step towards achieving our goal of becoming a major
player in the heavy rare earth elements market. We are fortunate to add Mr Bulyonkov to our team as head of operations and we ar confident e he will be able to use his extensive experience to efficiently reestablish a rare earth production line at the facility. Hes already initiated plans for design and capacity upgrades to the plant. Stans will use advice fr om the Russian institutes which initially designed the facility to help with the r edesign and refurbishment of the Kashka REE plant. Robert Mackay says they will cr eate a new and mor e efficient source of rare earth supply and impr ove the plants efficiency using new technologies. When the facility was last in operation in 1991 it comprised four individual plants, one
Centerra Golds Kumtor project is in the Tien Shan belt in the Kyrgyz Republic.
Central Asia
Eighteen holes were completed up until June this year as part of the companys $34 million exploration program for 2011. Five of these drill holes returned significant intercepts at section 38. One hole intersected 2.4 grams/tonne gold over 11.9 metres and 8.6 grams/tonne gold over 38.6 metr es. Three holes intersected lower grades of mineralization on section 62, including 2.2 grams/tonne over 51.2 metres. Four underground exploration holes wer e also completed to test for extensions of the stock work zone below the pit. One of these holes intersected low grade mineralization over 58 metres including 2.7 grams/tonne gold over 4.1 metres and 2.1 grams/tonne gold over 8.7 metres. Further drilling to test the strike and depth extensions of the SB zone is continuing. Kumtor is the largest open pit gold mine operating in Central Asia by a wester nbased company. It is about 350km southeast of the Kyrgyz capital Bishkek and about 60km north of the Chinese bor der. The deposit is in the T ien Shan Metallogenic belt which traverses 1500km thr ough Central Asia. Kumtor produced 678,941 ounces of gold in 2010 and is expected to pr duce up o to 600,000 ounces this year. Consolidated gold pr oduction for the first quarter of 2011 totaled 180,716 ounces, which is lower than the 211,039 ounces r eported in the first quarter of 2010. However , gold production exceeded plans as a result of higher than anticipated inventory accumulated at the end of the fourth quarter of 2010 which was drawn down in the first 2011 quarter. Kumtor also pr ocessed higher than expected gold grade thr ough the mill with its associated higher than anticipated metallurgical recovery in the quarter. A 5% reduction in mill throughput during this quarter was the result of a four-day shut-down to replace the SAG mill feed end liners and the discharge trunnion liners. Centerras CEO Steve Lang says I am pleased with our first quarter operational and financial results, we ar e on track with our 2011 plan and continue to enjoy the benefits of the rising gold price. Karchiga resource boosted INFILL drilling results for an ongoing definitive feasibility study at Orsu Metals Karchiga Copper Project in northeast Kazakhstan has seen the company increase the indicated mineral resource to 7.1 million tonnes @ 1.85% copper for 131,860 tonnes of contained copper metal. This updated estimate is for the sulphide min eralization in the central and northeast lodes of the deposit. The inferred estimate is now 1.2 million tonnes of ore @ 1.68% copper containing 19,860 tonnes of copper metal. The project is covered by a 47.3sqkm licence along the Rudny Altai polymetallic belt. The volcanogenic massive sulphide style of mineralization at Karchiga is hosted along the contacts between the shallow dipping alter nating amphibolite and quartz mica schist units. The two lodes have a strike length in excess of 1km and have been intersected down to depths of 200 metres. UK-based consultants SRK interpreted and modelled a series of narr ow mineralized lenses with varying dips in the central and north east lodes using a nominal 0.1% copper cut off for the indicated mineral resource estimate. The previous estimate was completed with a 0.34% copper cut of f grade. The SRK study was also done without dilution and loss while the 2010 study allowed for a 5% mining loss and 5% mining dilution. Orsus exploration dir ector Dr Alexander Yakubchuk says While the 2011 and 2010 mineral resource estimates and study were prepared using two different methodologies, they
Central Asia
have revealed comparable r esults which demonstrate once again the robustness of the Karchiga mineral resource. We are pleased they have revealed an increase in both the resource tonnage and contained copper metal which will increase the life of the mine to 11 years. Metallurgical test work staged in thr ee phases on 1.5 tonnes of samples fr om drill holes was completed earlier this year . The work included froth flotation and heap leaching where a significantly improved copper recovery into concentrate was discovered. The figures for the main composite show an incr ase e from 91.05% to 95.76% for copper recovery. In addition, the gold grade in the main composite concentrate was 1.57 grams/tonne gold with 50.44% recovery. Results from the heap leaching test work demonstrate the efficiency of bacterial leaching for the or found e at Karchiga. After 100 days, the central lode sample had achieved 68% copper recovery. New Dombraly zones DRILLING at Alhambra Resources Dombraly resource in Kazakhstan has r evealed four new zones of mineralization as well as significant gold in low-grade stockpiles and the open pit backfill of the former mine. Dombraly is part of the company 9800sqkm Uzboy lis cence within the central Asia-Chinese Altayshan gold belt in norther n Kazakhstan, a rapidly emerging significant gold tr end. The former Soviet open pit gold mine is about 60km north of the city of Stepnogorsk which is the companys Kazakhstan operating base. The new zones of gold mineralization south of the Dombraly open pit have incr eased the strike length of the overall zone by 300 metr s. e Diamond drill r esults show mineralization is mainly oxide with average gold grades ranging from 0.45 to 3.95 grams/tonne gold. Ther es also a high peak sulphide gold grade of 40.50 grams/tonne over 1 metre. One new zone located north of the mine is estimated to be more than 100 metres long and between 9 and 14 metres wide. The mineralization in this zone is sulphide with average gold grades of between 0.48 grams/tonne gold over 10 metres and 4.08 grams/tonne gold over 4.3 metres. There were 37 RC drill holes between 40 and 57 metres deep that intersected significant gold mineralization in both the low grade stockpile and the material used to back fill the open pit, with results ranging from less than 0.1 to 19.3 grams/tonne gold. This material was generated by a mining company in the mid-1980s and was drilled to validate and r e classify the historic r eserve data. The gold grades in the stockpile are not evenly distributed, however the back fill has a mor e homogenous distribution of gold concentration. The drilling pr ogram covered 8511 metr es from core and non-core drill holes. Alhambras CEO John Komarnicki says the discovery of the new zones of gold mineralization has exciting implications for the Dombraly resource. This was one of our 2010 priority exploration targets and will continue to be a priority for 2011. The positive r esults should allow us to re-classify the historical Soviet resource and reserve data into a compliant NI 43-101 resource estimate for Dombraly. The company is also completing follow up core drilling at its Shir otnaia gold pr oject within the Uzboy licence. Analyses fr om a drilling program at the site in 2010 have r evealed that its three zones of gold mineralization are the northern extension of the Aksu and Quartzite Hills deposits which host an estimated 15 million ounces of gold. Gedabek drilling program A DRILLING pr ogram of 17,500 metr es is under way at Anglo Asian mining s flagship Gedabek copper and gold mine in Azerbaijan Republic. The program aims to increase the confidence of the r esource estimate and to increase the resource base. The defined exploration strategy at Gedabek is aimed at increasing the life of the r esource which currently stands at 6 years, with a target pr o duction in excess of 300,000 ounces of gold. Gedabek is 55km from Azerbaijans second largest city Ganja and began operation in May 2009. It is in the companys 1062sqkm contract area along the Tethyan tectonic belt, which is one of the world significant copper s and gold bearing ar eas. This area is one of the companys priorities for exploration in the region as it works to establish itself as a leading gold producer in Central Asia. Gold production for the first quarter of 2011 is already 3% higher than during the same period in 2010, despite extreme winter conditions resulting in the leaching pr ocess becoming sluggish. The gold grade for this period, however, has decr eased to 3.32 grams/tonne compared to 4.79 grams/tonne last year . In 2010 the company exceeded its forecast gold production by 11% with a total of 67,267 ounces of gold produced at an average cash operating cost of US$358 per ounce. Copper production began in February 2010 with a total of 182.5 tonnes of copper , 46,940 ounces of silver and 833 ounces of gold produced. Copper and silver r ecovery from the operation has impr oved during the first quarter in 2011 with copper concentrate produced containing 104 tonnes of copper and 24,499 ounces of silver. Anglo Asians chief executive Reza V aziri says these encouraging results are proof the company is on target to becoming a debtfree, profitable gold producer by 2012. He says the portfolio of highly pr ospective advanced projects could also be developed into new revenue streams. Exploration of the company s portfolio of gold and copper assets in Azerbaijan remains a priority in its gr owth strategy. Anglo Asian has two other grassroots contract areas near Gedabek which have the potential to r eplicate its underground mining success. A diamond drilling program at the Gosha contract area is already being planned, while the Or dubad area contains numerous targets within a 5km radius which warrant further exploration that has been planned for early 2012.
The Dombraly and Shirotnaia deposits are part of Alhambras Uzboy project.
India
SAIL LOOKS TO GLOBAL MINING FIRMS

SAIL will seek bids fr om global mining firms to operate a number of its ir on ore and coal mines in India in order to introduce the latest mining techniques with the least amount of waste and the best environmental practices. The move will help SAIL get the most possible from its mineral deposits, ther efore strengthening its raw material security. SAIL will initially seek tenders for its Rowghat iron ore project and the recently allotted Tasara high-grade coal blocks, and is also talking to big players for the Chiria iron ore project. Although the company has not named potential partners, Indian sour ces say big names, including Rio Tinto and BHP Billiton, could be expected to bid for the projects. Rowghat has 500 million tonnes of highgrade iron ore reserves and SAIL plans to initially tap up to 5 million tonnes annually for supply to the Bhilai Steel Plant. The company hopes to increase production up to 15 million tonnes annually in the future. SAIL plans to mine about 5-7 million tonnes of high-grade iron ore annually from the three blocks at Chiria, which hold about 1.2 billion tonnes of r eserves. A two-phase Rs 3500crore plan to expand mining and set up a beneficiation plant in the area is being proposed. The companys chairman CS V erma says We need about 39 million tonnes of ir on ore once modernization is over as against a curr ent requirement of 23.2 million tonnes. Consequently, besides ore, we are planning to use the fines from our mining projects to generate about 10 million tonnes of iron ore pellets that will be used to meet ore requirements. SAIL plans to set up a 4 million tonne pelletization plant near IISCOs Gua mines and three pelletization plants of 2 million tonnes annual capacity at other sites. CS Verma says We also need to secur e coal requirements right now we sour ce about 3.5 million tonnes of coal fr om within the country and 10.5 million tonnes via imports. For this r eason it intends to appoint global miners to operate its T asara mines, where quality is supposed to be better than other indigenous sources it has. We have also signed a deal with Indonesia promising to set up a 3 million tonne steel plant in exchange for high quality coking coal mine there and are in talks for a similar deal in Mongolia. New managing director for India PARSONS Brinckerhoff has appointed infrastructure expert Allen Gale as managing director for the company in India. He is based in the companys New Delhi office. Parsons Brinckerhoffs Australia-Pacific, Asia and Southern Africa chief operating officer and president Stuart Glenn says Allen Gale has the depth of experience r equired to drive str ong growth. Mr Gale has more than 40 years experience in pr oject delivery, including senior roles in India, China, Hong Kong, Brunei, Pakistan, Malaysia, Singapore, Fiji and the USA. He also has the integrity and experience to excel in leading large consulting teams on a diverse range of infrastructure projects in India. Prior to joining Parsons Brinckerhof f, Allen Gale was managing director for SMEC India and regional manager India for SMEC International. Before this role, he held positions including general manager technical services for Goulburn Valley Water, regional manager for URS in Western Australia, and group principal and environmental manager for SKM. The company has also appointed Paul T urney as new general manager for power in Australia and the Asia-Pacific r egion. Stuart Glenn says Paul Turney is well-equipped to champion the company s next phase of growth in this sector. Mr Turney has an impressive background of 25 years in senior management positions. In his car eer he has also created successful new businesses in power generation, oil and gas and operations and maintenance. This experience spans work in many countries and cr osses diverse sectors of the industry most recently in renewable energy in particular. He is based in the Singapore office. Parsons Brinckerhoff is a leading planning, environment and infrastructure consultancy with more than 14,000 staff based in offices across six continents. It is part of Balfour Beatty, the international infrastructure group operating in professional services, construction services, support services and infrastructure investments. Firms eye off Afghanistan A CONSORTIUM of 15 Indian steel and mining companies may be formed to invest in iron ore mines in Afghanistan, including the large Hajigak deposits in Bamiyan pr ovince, 130km west of the Afghan capital Kabul. Steel Authority of India Ltd (SAIL) said in a press release issued after a recent meeting of the companies: Indian contenders for the Hajigak deposits discussed the major concer ns and identified the issues to be discussed with the Afghan and Indian governments. SAIL chairman CS Verma says the group has until August to submit bids, and that SAIL is interested in building a steel plant as well. According to estimates, the mine should be good to produce up to 1 billion tonnes of steel. The Hajigak deposits hold 1.3 billion tonnes of iron ore. Afghanistans Minister for Mines Wahidullah Shahrani pitched these mines as an investment destination during a visit to India.
Parsons Brinckerhoff managing director for India Allen Gale.
In addition to his management and pr oject delivery expertise, Mr Gale has an acute under standing of client needs and how to meet them. I am confident in his capacity to oversee the sustainable growth of our people and operations throughout India. Mr Gale will work closely with the Balfour Beatty Group and its newly-appointed India country manager Mike Shaw. Allen Gale says he sees further opportunities for Parsons Brinckerhoff to contribute delivery of high quality infrastructure required for Indias emergence as a world power . Parsons Brinckerhoff is already at work on signatur e projects across the country. These include the Delhi International Airport, the Kolkata Airport, metro projects for Delhi, Mumbai, Chennai, and the Abir thermal power station.
South Pacific
STANS COMPLETES RARE EARTHS PLANT PURCHASE

Gold Ridge producing again ALLIED Gold has re-opened the Gold Ridge gold mine on Guadalcanal, Solomon Islands, after investing $150 million to r efurbish and redevelop the mine which will annually pr oduce 120,000 ounces of gold. First gold was poured in March, with 1563 ounces yielded during that month and production now being ramped up to full capacity. The official re-opening in March was attended by local political, community and landowner leaders, and it is expected that Gold Ridge will account for one quarter of Solomon Islands gr oss national pr oduct. The project has 600 mining and operational employees with 85% being residents of the Solomon Islands. Allieds executive chairman Mark Caruso said the company had delivered the redevelopment ahead of time and on budget, with no fatality or serious injury to any employees. A year ago, at a ceremony to mark the start of the r devele opment, Allied Gold undertook to the people of the Solomon Islands and to our shar eholders to rebuild and refurbish Gold Ridge. Mark Caruso also said that Allied s agreements and commitments, including the pr ovision of local jobs, had been honour d. And we e hope our success in redeveloping Gold Ridge will help restore the reputation of the Solomons and send a clear message to the inter national investment world that the Solomon Islands is open for business and welcomes and supports investments in the mining industry. The challenge for us all now is to build on the momentum of this positive start. With the success and new wealth that will be created comes responsibility to manage and invest wisely for the next generation, and that must now be the focus for the Solomons. Allied Gold acquired Gold Ridge in 200910 when it took over T oronto-listed Australian Solomons Gold. Gold Ridge has not operated since 2000, when it was closed amidst the Solomons political and social upheaval of that time. It is expected to yield an average of 120,000 ounces annually for a minimum of 10 years. Relocation of villages affected by mining activities is continuing, with 9 5 new homes handed over and 329 residents resettled from the mining area. At a reconciliation ceremony which was held as a precursor to the re-open-
Bonanza trenching grades at Tuvatu
LION One Metals has reported bonanza grade gold results from the first 1200 metr es of trenching on its Tuvatu Gold Project on the Fijian island of Viti Levu. A selected sample returned an impressive 1715 grams/tonne gold and significant intervals included 8.7 grams/tonne across 4.8 metres from the surface expression of the north-west striking Tuvatu Lode. Strong gold prices have paved the way for Lion Ones testing of br oad zones of low grade mineralization which have the potential for surface mining methods. Canada-based Lion One embarked on the trenching program in mid-January this year . Five samples fr om the tr enching included grades over 100 grams/tonne gold, including 210 grams/tonne gold acr oss 0.05 metr es, 188 grams/tonne gold across 0.87 metres and 188 grams/tonne gold across 0.70 metres. Of the 187 rock samples taken from the trenching, 15 graded between 0.4 grams/tonne gold and 1 gram/tonne gold, while 22 samples graded over 10 grams/tonne gold. Geologists have now embarked on a test program to determine whether br oad zones of lower grade, near surface gold mineralization exist in the hanging and foot walls of the many high grade gold veins either exposed on surface or in historic drill holes. In the past, former operators needed to concentrate on the underground exploitation of the high grade, narr ow vein mineral r esource, with an average grade in excess of 8 grams/tonne gold.
In addition to trenching, surface mapping and sampling, prospecting and stream sediment sampling programs are ongoing. A first-phase diamond drill program, designed to test several of the recently identified, near-surface targets, is scheduled to commence soon. Seventy-nine of the rock samples from the recent trenching program were from the 135 metre-long, Bench 5 W est, where a br oad zone of alteration and mineralization up to 60 metres wide is exposed. This structural corridor consists of mineralized veins and veinlets within a weathered and hydrothermally altered, quartz monzonite host. Mineralization pr edominately consists of black, crystalline quartz, calcite, chlorite, pyrite and chalcopyrite. Intervals grading 1.5 grams/tonne gold across 20 metres, 1.19 grams/tonne gold acr oss 11 metres, 0.66 grams/tonne gold across 7.5 metres and 0.68 grams/tonne gold across 3.8 metres were exposed. Individual samples graded up to 24.3 grams/tonne gold across 0.33 metres. These results give a strong indication of the existence of a near surface, lower grade, oxide envelope surrounding a high grade core. Technical staff observations can be confirmed once the planned core re-logging and re-sampling program has been completed, covering selected portions of the existing core from previous drilling stored on the site. The incorporation of a significant volume of lower grade material is expected to significantly increase the mineral resource while enhancing the open pit viability of the project.
Australia
MT CORNELL SURVEYS CONFIRM ANOMALIES

STRONG, legitimate bedrock conductors consistent with the pr esence of major sulphide anomalies have been confirmed at Global Nickels Mt Cornell gold and nickel pr oject in Western Australia. The project is at the northern end of the Jutson Rocks Gr eenstone Belt about 125km northeast of Laverton. Follow-up ground-based fixed loop exploration has been completed with a total of 10 FLTEM surveys consisting of 57 survey lines and 36.7 line kilometres of coverage. These surveys have further defined the eight air borne electromagnetic VTEM anomalies identified in December 2010. The gr oundbased surveys confirmed the bedr ock conductors and enabled constrained modeling of the depth/location/orientation of each bedrock source and also the true strength or conductance of each target. Four of the eight anomalies have been assessed with three of them located on gabbr o and pyroxenite, one of which is spatially associated with a copper-in-soil anomaly located within the keelof plunging syncline in gabbr o. The fourth anomaly is in a sand covered area. These anomalies ar e being r efined with the input of the companys geophysicist to optimize drill hole design. Drilling will begin shortly, once clearance processes are complete. Global Nickels executive director Andrew Mortimer says the overall results are very encouraging. The eastern targets have modeled conductance levels of above 10,000s. Bedrock conductors at two other targets appear to show good corr elation with anomalous copper in historic soil and auger sampling. Historic rock chip sampling results from Mt Cornell include 8.4 grams/tonne gold, 3.2% copper, 1.31 grams/tonne platinum and 0.769 grams/tonne palladium. In addition to the drilling targets generated by the geophysical survey, three geochemical programs are under way. Two conventional soil sampling programs will extend and infill two significant copper-in-soil anomalies in the Mt Cornell area. The soil grids of 300 samples each will cover areas of about 2.5 x 1.5km on 400 x 100 metre sample spacing. Detailed analysis of geochemical data collected by Global Nickel and previous explorers has highlighted a pr onounced gold-anomalous trend through the centre of the Gr eenstone belt which is traceable for mor e than 30km as discrete anomalies variously determined from soil, auger and vacuum programs. This gold corridor is consider ed an exciting target for detailed exploration. The company is also completing FL TEM surveying at the nearby Mt V enn project, which was delayed earlier this year by wet weather. This is aimed at providing further refinement to the five priority VTEM anomalies delineated in December 2010. Mulga Rock mining applications IN a major milestone for W estern Australias largest independent uranium developer, Energy and Minerals Australia (EMA) has lodged two mining lease applications for its Mulga Rock deposit. This step secur es the companys progress towards commencing production at the site in 2014. The Mulga Rock deposit is about 770km east-northeast of Perth and about 240km northeast of Kalgoorlie-Boulder , which means there is good access to all r equired infrastructure for development. The deposit is within a small sedimentary basin known as the Narnoo Basin. There are three separate deposits named Ambassador, Emperor and Shogun making up one of Australia s largest undeveloped uranium resources. The deposits also show evidence of nickel, cobalt, rar e earth elements, scandium, vanadium, copper , zinc and gold. EMA says some of these commodities may be produced as by-products to uranium production from open-pit mining. Uranium production by insitu r ecovery from sandstone-hosted mineralization pr esent at botVBh the Mulga Rock deposit and elsewhere is also anticipated. Results from a scoping study last year indicated the project has a minimum 12 year life with 1200 tonnes produced annually. EMAs managing director Chris Davis says unusually high rainfall in the first quarter of 2011 occurred at the pr oject area. Another delay resulted from a high court appeal by Yarri Mining to overturn the validity of the exploration licences for the Mulga Rocks Deposit but this was refused in April, paving the way for exploration activities to continue.
A view over EMAs Mulga Rock uranium project in Western Australia.
Australia
Historic drill hole data has been r e-logged to expand the ar ea of known mineralization which was described in October 2010 as between 7600 to 13,000 tonnes of sandstone-hosted uranium mineralization at grades of 240 to 650ppm. Results fr om 15 new drill holes have been added to the data from 149 historic holes. Analysis of 5000 historic duricrust geochemical samples obtained by vacuum drill was carried out using a portable XRF tool to provide leveled base metals values to account for variations in the concentrations of specific major elements known to scavenge heavy metals in regolith. Limited chemical analysis of these samples has shown that they can provide useful vectors to uranium and base metals mineralization. Chris Davis says field work and budgeting is ongoing as the company moves forward with its pre-feasibility study. CST revises Lady Annie plans PLANS at CSTs flagship Lady Annie copper cathode project have been revised, after unusually high rainfall earlier this year delayed mining operations. The Asia Pacific newest copper mining company Aus$28 million s s exploration program for 2011 is expected to reveal a higher resource estimate at the pr oject about 100km north of Mount Isa in northwest Queensland. Updated overall resource estimates for the nearby Mount Clarke, Flying Horse Anthill, McLeod Hill and Swagman copper pr spects o in December 2010 saw a 34% increase over previous estimates.
Copper outcropping and rubble at CSTs Lady Annie project in Queensland.
The revised mining plans include reversing the mix of tonnages to mine the highest grade ore zones first in order to build up the copper inventory in the heaps. The wet weather in February and Mar h forced c more overburden removal and mining at higher bench levels wher e the ore grade was lower than ore zones deeper in the pits. There are more than 82,000 tonnes of contained copper in the transitional ore beneath the existing Mount Clarke, Flying Horse and Lady Annie pit shells. Transition ore is a mixtur e of oxide and sulphide or e laying between the oxide and sulphide mineralization of those deposits. CST has begun a metallurgical drilling pr ogram to get samples needed for leaching metallurgical test work on these transitional zones, with preliminary results expected by September. The companys CEO Damon Barber says those r sults will help CST to under e stand the economics of leaching these or es. Five drill rigs are being used at the site and an additional Rotary Air Blast (RAB) drill has just arrived to help with the program. July/August 2011 | ASIA Miner | 53
Australia
Drilling at Lady Annie is targeting oxide r esource extensions and delineation of sulphide ore. Eight new staf f have been r ecruited to take the exploration team to a total of 17 geologists and 18 field assistants wholl undertake the large number of drilling targets. Total copper cathode production in the five months ending March 31 was 5907 tonnes, which is on track to meeting the company s 2011 target of 24,000-25,000 tonnes. The companys overall ramp up schedule is to annually see up to 30,000 tonnes of copper cathode production. An automatic cathode stripping machine has arrived on site and should be commissioned by July. All 100 cells in the number one cellhouse are fully operational and the refurbishment of the cathode blanks for the 58 cells in cellhouse number two is now completed for commissioning in July This second . cellhouse will expand the plating capacity of the Lady Annie operation. Lady Annie Lady Annie 2011 2800 Isa 100 Mount Clarke Flying Horse AnthillMcLeod Hill Swagman 201012 34% 23 Mount Clarke Flying Horse Lady Annie8.2 9 Damon Barber 5 (RAB) Lady Annie 8 1718 3315 590720112.4-2.5 3 7 100 58 7 Lady Annie Vanadium resource up 30% ATLANTIC Limited has incr eased the JORC compliant ore reserve estimate at its Windimurra Vanadium Project by 30% to 128 million tonnes. The pr oposed annual vanadium output has also incr eased by 10% to 6300 tonnes and this is expected to meet 7% of worldwide demand. The project, which is expected to begin pr o duction in the next few months, is about 600km north of Perth and 80km by road from Mt Magnet in W estern Australia. The vanadium and hematite ore deposit lies within the eastern flank of the 2000sqkm Windimurra intruded layered gabbro complex which is part of the regional Murchison granite-greenstone province. Its being explor ed by Atlantic s wholly-owned subsidiary Midwest Vanadium. Atlantics managing dir ector Michael Minosora says the increase extends the potential life of mine to 28 years. The reserve increase also delivers the tangible potential for an increase in vanadium output fr om our nearly completed plant. A r evised life of mine plan shows we will process ore with a head grade of 0.51% vanadium, an increase from 0.47% and which is sustainable for a 10 year period. With improvement in head grade and process optimizations, we also expect an improvement in operating costs which will become evident as we ramp up production. With the increased output capacity, Atlantic has begun to bring online the existing vanadium pentoxide circuit which was a legacy of the pr o jects previous owners. Michael Minosora says the vanadium pentoxide market has pr ovided an attractive option for the company. Vanadium demand is directly linked to global steel consumption, with about 90% of global vanadium production consumed in the steel industry. Its primarily used as an alloy to steels in order to increase the strength and improve the high temperature performance of steels. The project is expected to be a low-cost operation because of Atlantics negotiations during its acquisition of Windimurra. It acquired the
The crushing and beneficiating facilities at Atlantics Windimurra Vanadium Project.
Australia
crushing and beneficiation plant as well as a hematite by-product revenue stream opportunity and has renegotiated key supply contracts. The existing accommodation camp at the site has also been acquired to allow management of the construction and commissioning of the project in the coming months. Structural, mechanical and piping is under construction with electrical and civil work proceeding. The company has also pr ogressed implementation of its strategy to monetize the stockpile of hematite at W indimurra as well as the expected one million tonnes of hematite that will be produced annually once the project is operational. Talks have been held with logistic supply chain partners to deliver the product into the world market. Atlantic holds a further 23km of the highly prospective magnetic signature to the south of its current mining leases, which has been detected from aerial geophysics techniques and confirmed by land based mapping. Farm-out boost for Dynasty AN announcement on whether Dynasty Metals will commit to a pre-feasibility study at its flagship Prairie Downs iron ore project is imminent while a farm-out agr eement with China Coal Geology Engineering Corporation (CCGEC) has allowed the company to take the next steps in a strategic plan at its iron ore tenements. The agreement covers Dynastys non-core base metals tenements, including the uranium tenements at Hector Bore and Mt Phillips and its Hyden gold tenements. These have been transferred into a separate legal entity for an Aus$2 million interest from CCGEC. Dynastys Prairie Downs pr oject is 40km southwest of the Mt Newman township in Western Australias Pilbara region. The company is evaluating three types of mineralization at the site including detrital channel ir on deposits, iron-rich basal conglomerate deposits and the Marra Mamba ir on deposits with direct shipping ore grades of iron. On a tenement holding known as the Spearhole deposit, the company has identified a 1.4 billion tonne detrital ir onstone deposit and a 23 million tonne hematite deposit, which includes 9 32 million tonnes at 27% iron. Preliminary test work has indicated that simple, low-cost processing can upgrade the detrital iron to direct shipping ore (DSO). The potential development of this deposit is likely to benefit from a number of economic advantages and its strategic location in the Pilbara. Dynasty has undertaken investigations in the first half of 2011 to form the basis of a pr -feae sibility study. These works include pr eliminary mine planning and pit optimization studies, process-route design, infrastructure, operating and capital costs. Base line environmental and native title studies have commenced to support a mining lease application and approvals. There were 20,000 metres drilled at Prairie Downs during 2009 and 2010. Since then, economic investigations suggest the Spear hole detrital iron deposit will annually produce at least 15 million tonnes, with low mining costs due to a low to negligible waste to or ratio and e a free-digging, unconsolidated iron deposit. Dynastys chief financial officer Michael van Uffelen says the ore will require simple physical processing to achieve marketable grades of iron and silica. We consider there is scope to develop this massive deposit and also to discover additional ironstone deposits and additional higher grade hematite deposits. Such additional material will add to the economics of the Spearhole deposit, he said.
Pakistan
THAR COAL RESOURCES AND PAKISTAN ENERGY GROWTH

Special report by Waqas Abdul Aziz, geologist, Engro Powergen
PAKISTAN is currently facing a huge energy crisis of around 5000 MW with fr equent power cuts and this translates to an annual cost to the country of around US$2.5 billion. Moreover, the annual unemployment rate is touching high peaks with a massive r eduction in annual exports. Keeping in mind the current energy security issues in Pakistan, utilization of its mineral resources is of immense importance. Pakistan has a huge coal deposit, Thar , in the southern part of Sindh Pr ovince (Tharparkar) about 400km from Karachi. The terrain is sandy and r ough with sand dunes forming the topography. As a result of widespread drilling over the area of 9100sqkm, a total of 176 billion tonnes of coal r source poe tential has been assessed. The Thar lignite is recognized as a major energy source, which has potential to substantially support energy production from an indigenous resource. From 19 9 2 until 2010 several r econnaissance and exploration pr ograms have been carried out and nearly mor e than 500 exploratory drill holes have been sunk covering an area of 700sqkm to determine the extent of the lignite deposit. A detailed geological assessment has been carried out in order to define the blocks available to be mined. Many drilling companies have been allotted exploration licences in this domain. The geology of the Thar Coal Field is not very complex, having Aeolian sand overlaid on alluvial limonitic siltstones. Coal is bounded with unconformity fr om top and bottom while the basement is granitic. The only fault in the ar ea is Mainland Runn of Kutch Fault and tectonically the area is considered as passive. The stratigraphic succession of the region can be seen in figure 1. Based on these exploration results and geological assessments up to 2011, 10 blocks have been developed at Thar. The lignite resource estimation in the Thar region has been based on various standards but mainly JORC, USGS & GESCR (China). A number of the Thar blocks with their resource figures and method of estimation can be seen in figure 2. During the extensive drilling thousands of coal samples have been sent for proximate and ultimate testing in different coal testing laboratories around the country and overseas as well. Thar coal is classified as lignite of ASTM type B. The quality tests for Thar coal r eveal higher heating values (LCV) of about 12 Mj/kg with total moisture of 47%, and low ash and sulphur values, ie 6.5% ash on as r eceived basis and 1.09% total sulphur as received, which is comparably better than lignite being used in Gr ece e and Germany for power generation. In 2004 RWE-RE of Germany carried out a detailed feasibility study for Block I while in par allel Shenhua China carried out a detailed mine and power plant feasibility study for Block II. However, for Block I no adequate financing closure could be established and for Block II pr jo ect agreement could not be reached. In August 2010 Sindh Engr o Coal Mining Company successfully completed a bankable feasibility study for an open pit mine on Block II with assistance of Shenhua and Sinocoal Group of China and in consultation with RWERE. This is now awaiting financial closur e. The study also covered a detailed Environmental & Social Impact Assessment (ESIA) Report which was completed by SRK Consultants. Accor ding to a precise estimate, development of Block II alone would bring in investment of US$12 billion and would be capable of pr oducing 5000 MW for 75 years of the mine. The study also er vealed a favourable stripping ratio of 6.5 cubic metres/tonne, which is again comparable to different operating mines in the world. Considering the technical viability and existence of enormous lignite deposits, Oracle Coal Fields, a UK-based company, has leased Block VI of the Thar Coal Field and is setting up a feasibility study with and ESIA r eport, which is expected to be completed in the middle of this year. Proposed annual production levels for this mine would initially be 2.5 million tonnes rising to 3.5-4 million tonnes as the demand for power generation starts up.
Figure 1: Regional stratigraphic details of the Thar Coal Field.
Figure 2: Coal resources of the various Blocks at Thar Coal Field.
Legally Speaking_Layout 1 6/17/11 4:54 PM Page 58
Legally Speaking
ASIAN JUNIORS: RAISING CAPITAL IN EVOLVING MARKETS

By Sean Twomey, Norton Rose Group, head of business development-Asia
CONSOLIDATION amongst stock exchanges is at an unprecedented level in a commodities-fuelled race to become the pr emium global minerals exchange. Exchanges are merging, forming strategic partnerships, and developing new and tailored listing rules in order to offer more opportunities and sources of finance. What ef fect will these changes have on miners seeking capital? BACKGROUND 2009 was a tough year for junior miners. While the challenging market conditions led to majors deferring capital expenditur e, juniors found their ability to raise funds in an illiquid market severely curtailed. Fast forward to 2011 and the mining industry is roaring ahead while global commodity prices are high. Some of the largest recent IPOs and secondary listings have been by mining companies - Glencore, Tahoe Resources, Pretium Resources, Aston Resources and Vale. MORPHING AND CHANGING As investors demonstrate their enthusiasm for the mining industry, so the resource-heavy stock exchanges have started a r ound of jockeying for position. Proximity of market to mine is no longer the primary driver for r esource companies - access to capital, sophistication of investors, valuation levels and suitability of listing r equirements are now as important as geographical considerations. juniors are typically high, and the flexible two tier system with tailored listing requirements offers straight forward and swift access to capital for early stage exploration companies and smaller financings. Over the last 5 years, more than 80% of all mining equity financings wer e carried out on the TSX or TSX-V.
Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSX-V): With thousands of juniors listed on the exchange, a sophisticated pool of analysts, a good supply of experienced bankers, lawyers and accountants supporting the industry and access to North American capital, the TSX and TSX-V have reputations as the leading global mining exchanges. Valuations by analysts who understand the political risks faced by Asian
London Stock Exchange (LSE)/Alternative Investment Market (AIM): The LSE is home to some of the world largest s mining companies - 2010 saw the financings of Rio Tinto and Xstrata - and has much to of fer mining majors in terms of profile and access to capital. However, geographical considerations and the LSE/AIMs historical links to Africa and Russia mean that it may not be the first market an Asian miner will look to for finance. In April 2011, the TSX and LSE announced a merger aimed to create a global resources powerhouse. It will be some time befor rege ulators announce their decision. Meanwhile, the LSE has announced a strategic partner ship with the Mongolian Stock Exchange (MSE) to r estructure and develop its exchange by advising on market rules and procedures and developing a market index. Australian Securities Exchange (ASX): Junior miners have historically made up a large proportion of the listings on the ASX, and this board has long been attractive to Asian miners due to its geographical proximity and established mining credentials. However, the ASXs traditional position as primary destination for Asian juniors is subject to challenge from Canada and, potentially , Hong Kong. It is currently carrying out a review and consultation to establish how it might increase its appeal to r esources companies outside the top 200. Singapore Exchange (SGX): The SGX is going to some ef orts to develop f its reputation as a destination for mining exploration companies. In February 2011, it introduced the new Catalist rules in an ef fort to attract early stage mineral, oil and gas companies. Amongst other things, the new
Mining equity financings in 2010 with the figures representing billions of Canadian dollars.
The number of mining listings in 2010 on various stock exchanges.
(Continued on p.60)
Legally Speaking
FOREST MORATORIUM COMMENTS

THE Indonesian Government has recently issued a Moratorium Instruction and 2 Regulations on Forest Area Utilization. The matters are of considerable interest to existing and potential investors in Indonesias mining industry. Indonesia-based Christian Teo Purwono & Partners has provided executive summaries based on its understanding of these Pr esidential regulations. Many of the points made in the summaries are necessarily speculative in nature and subject to further clarification and confirmation. Accor dingly, it would be prudent not to r ely solely on the summaries but, rather, to seek specific legal advice. 3. The indicative map is to be r evised and updated every 6 months. 4. The indicative map is not at all clear. 5. It is tolerably clear, however, that all types of Production Forest, as well as Areas for Other Purposes, may include areas of Primary Natural Forest. Accordingly, President Instruction 10/2011 will pr event the issuance of Rent Use Permits for mining activities in that part, if any, of Production Forests and Ar eas for Other Purposes which comprise Primary Natural Forest or Peat Lands. 6. The moratorium is for 2 years fr om May 20, 2011. 6. Protected Forest Rent Use Permits will be initially granted for a maximum period of 20 years but be extendable in accor dance with the validity period of the underlying IUPs/CoWs/CCoWs and subject to evaluation by a Monitoring & Evaluation T eam. 7. Protected Forest Rent Use Permits ar e transferable subject to MoFors prior written approval. 8. Protected Forest Rent Use Permit holders are prohibited from carrying out under ground mining activities which may cause land surface subsidence or permanent change to the purpose or function of Protected Forest Areas. 9. A Protected Forest Rent Use Permit may be revoked by MoFor if its holder (i) does not fulfil certain obligations under the Protected Forest Rent Use Permit or (ii) violates Presidential Regulation 28/2011.
Presidential Instruction re Moratorium on the Granting of New Licences and the Improvement of Primary Natural Forest and Peat Lands Management: 1. For the purpose of reducing Greenhouse Gas Emissions, the President has instructed various authorities to take all necessary action to support a moratorium on the issuance of new licences for the utilization of Primary Natural Forests and Peat Lands except in the case of: (i) Applications that have already received an Approval in Principle Licence fr om MoFor;
(ii) The implementation of vital national development, such as geothermal, oil and gas, electricity, rice and sugar cane fields; (iii) Extension of existing Forest Utilization Business Licences and/or Forest Area Utilization Permits (ie, Rent Use Per mits) provided that the r elevant business licences (eg, IUPs/CCoWs/CoWs) are still valid; and (iv) Ecosystem restoration. 2. Primary Natural Forest is a term which is commonly understood as referring to natural forest areas which have never been the subject of any logging activities. However, there is no legal definition of Primary Natural Forest. Accordingly, the determination of whether or not a For est Area is Primary Natural Forest is to be made by having regard to the indicative map attached to Presidential Instruction 10/2011.
Presidential Regulation re Underground Mining in Protected Forests: 1. Mining activities may be carried out in Pr o tected Forest Areas by way of under ground mining so long as this does not alter the main purpose and function of the Protected Forest Areas.
2. In order to be able to utilize Pr otected Forest Areas for underground mining activities, the holders IUPs/CoWs/CCoWs must apply for and obtain Protected Forest Rent Use Permit from the Minister of For estry (MoFor). 3. MoFor will, first, issue an Appr val in Prino cipal Licence to the applicant for a Pr otected Forest Rent Use Permit, with a maximum initial validity period of 2 years but which is extendable, subject to evaluation by MoFor. 4. The Approval in Principal Licence will specify a number of obligations that must be fulfilled by the Protected Forest Rent Use Permit applicant in or der to obtain the Pr otected Forest Rent Use Permit. 5. Once the Appr oval in Principal Licence holder fulfils the Appr oval in Principal Licence Obligations, MoFor will issue the Protected Forest Rent Use Permit.
Ministry of Forestry Regulation on Guidance re Rent Use Permits for Forest Areas: 1. Rent Use Permits authorize the utilization of (i) Production Forest Areas and (ii) Protected Forest Areas for non-forestry activities, including general mining activities.
2. Rent Use Permits ar e now divided into 2 types being: (a) Rent Use Permits for Survey or Exploration Activity (Exploration Rent Use Permits), which ar e valid for 2 years (and extendable); and (b) Rent Use Permits for Other Activities (i.e., exploitation activity) (Exploitation Rent Use Permits), which are valid for the same period as the underlying business licence (eg, IUP, or CoW). 3. Except in very limited situations, Rent Use Permits are issued by MoFor. 4. According to MoFor, there is no expr ess limitation on the size of the area which may be covered by an Exploration Rent Use Permit. However, certain limitations may apply, on a case by case basis, subject to evaluation and consideration by MoFor.
Legally Speaking
5. In order to obtain a Rent Use Permit, a party must, first, submit an application to MoFor and fulfil a number of administrative and technical requirements. 6. If the Rent Use Permit applicant fulfils the subject administrative and technical r equirements, MoFor will issue to the Rent Use Permit applicant, in the first instance, an Approval in Principal Licence with a maximum validity period of 2 years which is extendable, subject to evaluation. 7. The Approval in Principal Licence is to be issued within 3 to 4 months of completion of the administrative and technical r equirements. 8. The Approval in Principal Licence will specify a number of obligations that need to be fulfilled by the Rent Use Permit applicant for the purpose of obtaining the Rent Use Permit. Once the Approval in Principal Licence holder fulfils the obligations stated in the Approval in Principal Licence, MoFor will grant a Rent Use Permit to the Approval in Principal Licence holder. 9. The Rent Use Permit is to be issued following submission of an application after fulfilment of the Appr oval in Principal Licence obligations and in (i) 4 months for Exploration Rent Use Permits and (ii) 2 months for Exploitation Rent Use Permits. 10. A Rent Use Permit applicant must meet a compensation requirement as follows: (a) If the total Forest Area in the relevant province, where the target for est area is situated, comprises less than 30% of the total Provincial land area (including islands and rivers), then the applicant must pr ovide compensation land in certain ratios depending on the purpose of the activities to be conducted in the forest area; and (b) If the total forest area in the relevant province, where the target forest area is situated, comprises more than 30% of the total pr ovincial land ar ea (including islands and rivers), the applicant is obliged to pay Non T ax State Revenue in respect of Forest Area Utilization and carry out r eforestation in certain ratios depending on the pur -
pose of the activities to be conducted in the forest area. 11. In the case of a Pr oduction Forest Area that is already the subject of a Forest Utilization Business Licence, Rent Use Per mits for mining activities may only be granted for a maximum of 10% of the total area covered by the For est Utilization Business Licence. 12. In the case of a Pr oduction Forest Area that is not the subject of any For est Utilization Business Licences, Rent Use Permits for mining activities may only be granted for a maximum of 10% of the total Production Forest Area. 13. Rent Use Permits for mining activities, in a Protected Forest Area, may only be granted for a maximum of 10% of the total Protected Forest Area. 14. The 10% r estriction, in points 11, 12 and 13 above, does not apply to Rent Use Permits in respect of exploration activities. 15. In addition to the relevant utilization activities (ie, general mining activities), a Rent Use Permit also gives the holder the right to carry out land clearance and defor stae tion activities. 16. A party is not allowed to transfer its Rent Use Permit to another party without prior approval from MoFor. 17. Transfers of Rent Use Permits will be approved within 2 months of the transfer application being submitted. 18. Renewals of the Rent Use Permits will be approved within 2 months of the r enewal application being submitted. 19. MoFor Regulation 18/2011 is intended to remove much of the uncertainty and r educe much of the delay which is pr sently e associated with obtaining a Rent Use Per mit. However, whether or not these objectives are realized depends very much on how MoFor Regulation 18/2011 is implemented in practice. Please contact Bill Sullivan, licensed foreign advocate, Christian Teo Purwono & Partners, +62 21 515 0280 or bsullivan@cteolaw.com
(Asian Juniors - from p.58)

rules introduce disclosure and transparency standards in line with inter national practice.
Hong Kong Stock Exchange (HKEx): Hong Kong has overtaken London and New York as the primary destination for large scale listings (IRC Ltds IPO, Vale SAs secondary listing, Glencores IPO, UC Rusals listing, Agricultural Bank of Chinas dual listing, SBIs secondary listing) but it has not historically been an obvious choice for junior mining companies seeking capital. In June 2010, the board changed its listing rules to make it easier for mining companies to raise capital for discoveries already made. In April 2011 the HKEx announced the establishment of the Hong Kong Mer cantile Exchange, a commodities exchange designed to meet the rising commodities demand from China. These developments, together with its access to Asian capital and proximity to resource markets, may see the HKEx emerge as an incr easingly attractive exchange for the junior mining sector. Indonesia Stock Exchange (IDX): A small number of domestic mining companies have elected to list on the IDX, such as Bumi Resources and Adaro, but to date there has been little precedent for non-Indonesian juniors listing on the IDX. Contributing factors may include the language barrier, the lack of a substantial institutional investor base and consequent level of liquidity when compared to the HKEx, ASX and the SGX.
THE FUTURE The TSX/TSX-V and ASX r emain established markets for Asian juniors. Developments on the HKEx, pr opelled by investment appetite from the mainland, are likely to increase its attractiveness to juniors seeking capital on the Asian markets. Singapores Catalist is in the early stages of its development as a mining, oil and minerals hub, and the MSE may be a longterm watch. Sean Twomey is based at Norton Rose (Asia) LLP in Singapore, phone +65 6309 5451 or email sean.twomey@nortonrose.com
Legally Speaking
CHURCHILL FILES EAST KUTAI APPEAL

CHURCHILL Minings appeal has been filed to the Administrative High Court in Jakarta, Indonesia. The company has been caught up in a major legal battle over the future of its flagship East Kutai coal mine development after an attempt by r egional authorities to cancel the licences that host the project. Previously the East Kutai Regent (Bupati), an authority that governs the East Kutai administrative region of the East Kalimantan Province, had purported to have cancelled the four mining licences. Churchill subsequently referred the matter to administrative tribunal in Samarinda, the provinces capital city. It was an attempt to have the original cancellations of ficially expunged from the record because they considered that the Bupati had violated a number of administrative pr otocols. In Mar ch the Samarinda tribunal ruled against Churchill. The company has now confirmed that its Indonesian partner Ridlatama has filed Memoranda of Appeal with the Administrative Court in Samarinda and the appeal will be heard by the Administrative High Court in Jakarta. Churchill says that the Administrative High Court will advise the parties of its decision in due course. The AIM-listed firms chances at appeal received a major vote of confidence recently as two new Indonesian partners invested 7.7 million and subscribed for shares in the company. Analysts believe the two influential business people Chur chill has brought on board could provide some much needed local expertise. Northland Securities analyst Andr ew McGeary says that Churchill shares are still trading at good recovery levels under the circumstances. The company has rallied strongly since its private placement with a local investor raised 7.7 million. W e welcomed this move which pr ovided a much needed fillip, he said in a note to clients. However, we view the legal pr ocess as high risk and therefore maintain caution on the shares which are trading at good recovery levels under the circumstances. Churchill Mining is an AIM-listed mining company with a significant thermal coal development project in the East Kutai Regency where to date more than 2.73 billion tonnes of coal resource has been defined to JORC standard. The project feasibility study has been completed, indicating an economic and desirable pr oject and the study forms the platform for the next stage in the development of the project. In addition to the East Kutai pr oject, Churchill has interests in the Sendawar Coal Bed Methane Pr oject in East Kalimantan and a strategic holding in Spitfir e Resources, which is developing the South Woodie Woodie Manganese Pr oject in Western Australia.
Field work at one of Churchill Minings tenements in Kalimantan.
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Grinding Mills
ACCORDING to Xstrata T echnology, its IsaMill horizontal grinding mill has gained ground in the tertiary grind and the r egrind markets. Originally developed for fine grinding down to 7 m for lead/zinc or es, Xstrata Technology says the IsaMill has also established itself in coarser applications for a variety of ore types that include copper , nickel, platinum group minerals, industrial minerals, gold and lately, molybdenum and magnetite. According to the company, which is a subsidiary of Xstrata plc, mor e than 90 IsaMills have been installed worldwide since the first installation in 1994, with mor e than 140 MW of power employed in grinding minerals. The majority of the mills operate using ceramic media, providing an iron-free grinding environment to allow better contr ol of downstream flotation and leaching operations due to no fer ric ions being generated by the media. The other big advantage of the mills, said Xstrata, is energy efficiency due to the abrasion and attrition grinding action of the media on mineral particles. The high media load in the mill, agitated by high-speed grinding discs, ensur es minimal energy waste and provides high energy ef ficiency. The IsaMill also incorporates a pr oprietary particle separator, minimizing overgrinding of the particles as the ground particles pass through the separator, while reticulating the oversize material back into the mill. An IsaMill can be pr ovided as part of a complete grinding plant for pr ojects, which reduces the installation time for the pr oject.
ISAMILLS ROLL INTO NEW GRINDING APPLICATIONS

Initially designed for ultrafine grinding, IsaMills have taken on a number of new fine and coarse grinding tasks in a wide variety of ore types
Steve Schmidt, operations managermineral processing at Xstrata Technology, said customers are interested in this appr oach, as it minimizes risk and includes mills, surr ounding steel work, feed and discharge pumpboxes and pumps and the media charging system as well as commissioning crews. Schmidt said the large number of IsaMill cir cuits Xstrata Technology has designed and installed, from the smallest M250 and M500 circuits to the largest M10000 cir cuits with multiple mills, ensur es that key information from development of previous circuits is used in any current project, leading to tr ouble-free operation when the circuits are commissioned. Projects in various stages of study or development that will include IsaMill technology include the Endako molybdenum pr oject, where three M1000 IsaMills powered by 500kW (670-hp) motors ar e being installed. A larger M3000 IsaMill will be installed at a V ale nickel concentrator in a br ownfield application, using ceramic media to assist in downstream nickel flotation. Both pr ojects are in Canada, with Xstrata Technologys Vancouver office managing IsaMills installations. Xstrata Coppers recently approved Las Bambas Project also will feature IsaMills. The project is located in the Apurmac Region of Southern Peru, and is expected to be one of the biggest greenfield copper mines to come on stream globally in the next decade. Xstrata Technology will provide three M3000 IsaMills in the regrind circuit of the new concentrator. Each mill will be powered by 1500-kW (2,000hp) motors and will use ceramic media. The new concentrator will be designed to treat 140,000 mt/d of ore in a two-line operation and will initially pr oduce 400,000 mt/y of copper in concentrates. The IsaMills will be included in the concentrate regrinding circuit, and like Xstrata Coppers Antapaccay installation, will incorporate Xstrata Coppers standard concentrator design concept. Bob Drabik, executive general manager of Xstrata Copper Project DevelopmentSouth America, said: We chose IsaMill technology for our Antapaccay and Las Bambas pr ojects
IsaMill circuit including IsaMill, pump boxes and the new IsaCharger media handling system.
Grinding Mills_Layout 1 6/17/11 4:29 PM Page 64
Grinding Mills
IsaCharger Xstrata Technology also notes that a new media handling system for the IsaMill has been undergoing development over the last several years, r esulting in r elease of the IsaCharger, which has no moving parts and uses a high-capacity water induction feeder, a fully integrated media collection system, pipework, valving and instrumentation to efficiently add media to the IsaMill. The IsaCharger has been designed to operate in two modes: the first is to add media at low rates to maintain the grinding power on the mill. However, it also can be set to r efill the mill quickly after maintenance at much higher addition rates. This r educes the media handling and enables the mill to operate at higher power much quicker than previous methods, minimizing downtime. High Flow Range The IsaMill design was r ecently improved to incorporate High Flow models. Based on DEM computational modelling, the mill design was modified to allow for higher thr ugho puts to be achieved in the mill, impr oving power draw and power efficiency. The basic shape, footprint and auxiliaries around the mill remain the same as the previous model, and ceramic media is still used in the mill. Information for this article was provided by Xstrata Technology.
Xstrata Technologys new IsaCharger is a media addition system for IsaMills; it has no moving parts and uses water induction to transfer media to the mill.
in southern Peru because of the equipment s energy efficiency and ability to deliver a pr ecise size distribution curve with minimal over grinding, which in tur n helps to r educe excessive circulating loads. A primary consideration when developing our new projects is to seek ways to minimize our environmental footprint and IsaMill technology helps us to achieve this due to its smaller size than other comparable mills. The IsaMills ar e being supplied as a full package, where Xstrata Technology will be responsible for the supply of the mills, steelwork, feed and discharge pumpboxes, as well as the new proprietary IsaCharger media transfer system. The M3000 IsaMills will include the new High Flow design that permits high tonnage throughput, and still delivers superior energy ef ficiency. Commissioning of the mills is planned for 2014. NEW DEVELOPMENTS Iron Ore Applications The newest application for the IsaMill is in magnetite grinding. An M10000 is being installed at Xstrata Copper Ernest Henry mine, s in Queensland, Australia, where a new circuit at the plant will use magnetite-rich tailings fr m o the copper concentrator to pr oduce a highgrade iron concentrate for export. An M10000 IsaMill will be installed in the cir uit c to reduce magnetite-bearing material down to 40 m for production of higher-value concen-
trate. Total production from the circuit is planned to be 1.2 million metric tons per year (mt/y). John Twomey, managermagnetite project for Xstrata Copper, said that Xstrata T echnology will provide an M10000 IsaMill package to the Ernest Henry site, which includes the IsaMill, powered by a 3-MW motor as well as feed and , discharge pumpboxes, steel work and media addition system. The Installation of the mill at the site is planned for the first half of 2011
This 3,000-kW M100000 IsaMill was installed at PanAustralians Phu Kham copper operation in Laos in 2007. In October 2010, the company approved a $110-million investment to increase capacity of the Phu Kham process plant to annual copper production of 65,000-70,000 mt starting in mid-2012. The scope of the upgrade includes an increase to a nominal 16 mt/y of ore from the current rate of 12 million mt/y.
Supplier-Product News_Layout 1 6/17/11 4:34 PM Page 66
Product News
MINES MUST UNIFY FUEL SUPPLY FROM
By Bill Clifton, Banlaw chief executive officer

FUEL is one of the major costs for mining opera tions, accounting for up to 40% of the total cost of 1. GET THE MEASURE OF YOUR FUEL USE You cant manage what you can t measure. To make sure that a mine is getting what it pays for it is essential to have inwar flow med tering. This gives managers a baseline measure of what comes into the site. On site fuel measur ement is now an easy and powerful pr ocess for contr olling costs. Many mining companies are wasting significant money because they cannot measur e fuel wastage or fuel shrinkage. Precise monitoring, reconciliation and centralized reporting is possible for all hydr ocarbons dispensed by vehicle, tank and distribution points. The benefits of such systems extend far beyond fuel security. They assist with environmental compliance, stock r econciliation, maintenance scheduling, cost analysis, the equipment operation. Particularly in an environment of rising fuel prices, mine managers can enjoy significant efficiency savings by taking a unified fuel management approach from calculation of bur n rates, fuel or dering and the correct claiming of tax credits. 2. FILTRATION PREVENTS CONTAMINATION Reducing contamination is a key to enhancing the life of capital equipment - another major cost input for mines. Fuel quality is also critical in optimizing the efficient operation of that equipment. Clean air and fuel can improve fuel economy in equipment by between 5% and 8%. Having a clean fuel supply to begin with is important but a mine site generates plenty of water and dust par ticles that can quickly contaminate fuel supplies. A leading mining company r ecently carried out a global study of its fleets and determined that it had between 200 and 300 tonnes of dirt in its equipment fuel tanks. buy right thr ough to bur n. Here are five areas that are critical for ef fective unified fuel management that will save mines money and improve productivity in the long term: Data suggests that up to 70% of lubricated equipment failure is attributable to contamination. Water and particle contamination significantly reduces the longevity of the major mechanical components in the engine. It also increases fuel injector degradation. Proper injector operation is, of course, vital for optimum combustion, economy, emissions and lubrication. While cutting costs and corners in filtration is a false economy the solution is not always buying more equipment or upgrading to mor e expensive synthetic base lubricants. The solution often lies in establishing contamination control measures. There have also been significant improvements in oil transfer fittings in r ecent years to ensure a cleaner, more reliable connection. Very low cost solutions like ensuring tank vents have robust and serviceable seals as well as making
Banlaw urges mine operators to adopt a unified fuel management approach.
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sure dust caps are on when couplings arent in use can all help to make fuel inputs cleaner. Another issue affecting mines is new emission control standards that will continue to be strengthened as governments and industry respond to climate change. OEMs ar already ine troducing more stringent fuel cleanliness requirements. Unfortunately, this means that in many mines we are seeing modern mining vehicle engines not able to perform as they ar e designed using current grade fuel. A common mistake is to simply buy a filter but if it is not the right one for the job it can lead to other costly issues such as r educed fuel flow. I have seen fuel-flow rates drop by 50% because a mine has inserted a filter into a fuel line to meet OEM specifications. Filtration must be designed to r educe contamination and maintain flow rates. New filtered tank vents are coming on to the market offering substantially finer tank filtration while ever the tank is br eathing. Rates of 10 micron absolute can now be achieved as opposed to current rates of 30 micron nominal filtration. These fine filtered vents also have the added advantage of a separate exhaust path which doesnt allow the filter elements to be damaged or compromised by overfilling. 3. TANK LEVEL MONITORING An often overlooked aspect of unified fuel management is fuel tank level monitoring. Monitoring is essential for water detection which, as discussed above, is a real issue in terms of contamination of fuel stocks. With proper fuel tank monitoring in place mines can also look at ef ficiencies gained through fuel companies managing site fuel stocks. With web-based monitoring it is easy to ensure that tanks dont get below 75% full. Monitoring also provides opportunities for consignment stock and the charging of thir parties d working on the mine site for fuel used. here are simple tank systems that can be installed to ensur e zero overfill, zer o tank pressure and zero spillage during r efuelling. Mines no longer need to have the unsafe and costly practice of manually checking tank levels. Creating zero tank pressure also extends the working life of the asset and r educes maintenance costs. Reducing spillages makes for a cleaner, safer workplace. 4. FASTER, SAFER FUEL DISPENSING Being able to reduce the downtime associated with refuelling vehicles and equipment can bring significant savings and ef ficiencies to a site. Using nozzles with the highest possible flow rate is one solution. Ther e are now refuelling nozzles and systems that can deliver flow rates of up to1000 litres per minute. Many mines are achieving rates of just 500 litr es per minute, when they could be halving refuelling times. Speeding up the pumping of fuel is only part of the solution and may prove ineffective if the other equipment mounted components are not suitable. An equipment suitability audit is a simple way to ensur e the different OEM components and systems used to r efuel mining vehicles ar e customised to suit the application and site requirements. 5. FACILITY MANAGEMENT When it comes to our health we all know prevention is better than cur e. A healthy mine site is one wher e assets are monitored and protected to ensure their day-to-day reliability. Proper programmed maintenance ensur es mines gain the maximum benefit from their unified fuel management systems. Having experts from external companies on site as r equired, rather than employing staf f, can provide efficiencies here. Our clients also enjoy the added benefit of a 24-hour help desk, an incr easingly important requirement for mines operating around the clock. Mine managers don t want down time when paying overtime rates! An example of the importance of maintenance is the calibration of diesel meters. This not only ensures that a vital piece of equipment is working accurately; it is also a legal er quirement. Australias National Measurement Institute recommends all meters be inspected and calibrated on a six monthly basis. 1. GET THE MEASURE Banlaw FuelTrack Precise monitoring, reconciliation and centralized reporting of fuel use. 2. BEAT CONTAMINATION Banlaw LubeCentral- Makes oil and fluid transfer a clean, efficient and safe operation. 3. TANK LEVEL MONITORING Banlaw FillSafe- Fully electronic and automatic system with flow rates of up to 1000 litres per minute with zero tank pressure and zero overfill. 4. FUEL DISPENSING Banlaw Refuelling Systems- At rates of up to 1000 litres per minute. Drybreak refuelling nozzles, receivers, vents, caps, br eakaway valves and check valve receivers. 5. FACILITY MANAGEMENT Programmed Maintenance Services Audit and Consulting Services Diesel Meter Calibration Services
Pioneers of Unified Fuel Management

As the pioneers of Unified Fuel Management, Banlaw employs a unique end-to-end fuel management process called Fuel-Pro3. With integrated fuel management hardware, end-to-end fuel asset management, consulting and training, Unified Fuel Management delivers productivity, reconciliation and cost reduction like no competing solution. Its products and systems are now used in 29 countries. Visit www.banlaw.com or see Banlaw representatives at the AIMEX convention in Sydney.
Unified Fuel Management makes fuel use more efficient at mime sites.
Product News
PROVEN CLASSIFIER TECHNOLOGY

LUDOWICI is set to revolutionize the mining industry with its latest technologies in fine coal beneficiation known as the Reflux Classifier or RC, which was developed thr ough a joint ventur e with the University of Newcastle. This new equipment can be configured for separating fine particles on the basis of either density or size. As of ficial licensors of this technology internationally, no other company may promote or lay claim to the technology without Ludowicis undertaking. The company says the Reflux Classifier is the perfect alternative to spiral technology and has a footprint up to six times smaller than spirals. Used in coal and minerals pr ocessing, it combines three technologies - a Lamella Settler an Autogenous Dense Medium Separator , and a Fluidised Bed Separator It comprises inclined lamellar channels . that deliver better hydraulics compared to conventional technologies. Ludowicis Classifier technology has alr eady been proven with the RC300, RC600 Mk2 and RC2020 units applying the latest in gravitybased separation engineering. The RC2020 model has been enhanced for fine coal and minerals applications and comprises a mor e easily scalable design incorporating a new laminar high shear rate mechanism. Ludowici will unveil the RC2020 at this years AIMEX at Sydney Olympic Park from September 6-9. Ludowicis Reflux Classifier technology can be test driven thr ough the smaller, pilot RC300 scaled unit. The RC300 is designed for in-plant test work in coal and minerals applications and pr ovides an excellent opportunity for engineers to observe how RC technology is one of the more exciting developments in mineral processing for decades. Ludowici has RC300 pilot units used in minerals field-testing throughout Australia, North America, China, India and South Africa. The Reflux Classifiers of fer enhanced functionality with featur es incorporating a new cone-shaped base for impr oving underflow, a round mixing section, additional wear -resistant lining as well as improved internal launder adjustment and instrumentation. Ludowici was founded in 1858 and is one of Australia s most established companies. Today it is a world leader in the design, manufacture and supply of minerals pr ocessing and materials handling equipment. Products servicing the mining industry include vibrating screens and feeders, the patented Reflux Classifier , centrifuges, screening media and consumables, various piping solutions and wear resistant materials. Ludowicis managing director Patrick Largier says the diverse suite of products and services is testimony to the company reputation for s innovation founded more than 150 years ago with continued dedication to manufacturing quality and service excellence. Ludowici is trusted in international markets and our vision is to build an inter national business by innovating for our customers, sharing the knowledge of our people and developing our own technology. From its head office in Brisbane, Ludowicis global footprint now includes wholly-owned subsidiaries in South Africa, Chile, Peru, USA, China, India and agents in other mining r esource countries. Patrick Largier says Ludowici has placed special emphasis on driving sales growth in Asia through its operations in India and China, its agents in Indonesia, Vietnam, Philippines and its customers in Thailand, Laos and PNG. Ludowici continues to target sales gr owth as the mining industry expands in the region. He says Ludowici pr oducts are widely recognized for their quality and value, and are backed by significant investments in r search, dee velopment and service. Ludowici represents leading edge innovation for our customers, sharing the knowledge of our people and developing our own technology. These values were recognized when Ludowici was announced as winner of Ai Group's 2011 Icon of Industry award at the Queensland Gala Dinner on May 5, 2011. This awar d was presented to Patrick Largier by Queensland Pr emier Anna Bligh, who made the announcement in front of almost 300 business and government leaders. The technology was also recognized by the IChemE2010 Awards in the UK, winning the Cor e Chemical Engineering category for maximizing resource efficiency.
Queensland Premier Anna Bligh presents the Ai Group's 2011 Icon of Industry award to Ludowici managing director Patrick Largier.
Product News
PITRAM OPTIMUM FOR DAMANG

MICROMINE, a provider of intuitive software solutions to the exploration and mining industry has , been selected by Gold Fields Ltd to implement its mine control and management reporting solution, Pitram Optimum, at the Damang Gold Mine in Ghana. The company says Pitram Optimum will allow Damang to incr ease production efficiencies by capturing data in real-time and improving the sites reporting capabilities. MICROMINE says Pitram is a mine contr l and o management reporting solution that provides the tools needed to make informed production and safety decisions, and run shifts more effectively. Comprised of intuitive asset, personnel and material tracking; safety; grade and stockpile management; real-time viewing; planning and optimization; and reporting and analytics capabilities, Pitram offers mining operations of all sizes a scalable and flexible solution for maximizing profitability and driving continuous improvement. Pitram Optimum is one of four solutions that comprise the Pitram product suite, which provides a unique upgrade path from the entry level Pitram Report solution, to the Pitram Contr l Soo lution, then to the fully automated Pitram Fleet Manager and Pitram Optimum Solutions. Ghana, began in early May 2011 and is expected to be complete in mid-September. MICROMINE has also been contracted by Gold Fields to provide the wireless network that communicates, in real-time, the information captured by Pitram. MICROMINEs business solution manager Kyle van der Berg explains, Because Pitram Optimum integrates production planning and optimization, Damang will see a significant improvement with regards to the execution of mining plans and the maximization of asset utilization and efficiency. Damangs management will be able to compare actuals against plans and will have the ability to correct deviations from plans. Also, through intuitive equipment allocation, Damang can optimize production, reduce wait time and execute shift plans according to design or blending r equirements. This will allow business targets to be achieved at the lowest possible cost.
The super pit at the Damang Gold Mine in Ghana.
The implementation of Pitram Optimum at Damang, an open-pit gold mine in southwest
OXIDATIVE DEGRADATION PROTECTION

CYTEC Industries have intr oduced its latest ACORGA OR15 and ACORGA OR25 extractants which are specifically formulated to provide extra oxidative degradation protection. Cytecs Asia Pacific r egional sales manager Shane Wiggett says, Our ACORGA extractants enable customers to limit the ef fects of high manganese oxidation, r educe organic losses and impurity transfer, and improve stage efficiency. Ultimately, this results in an improved and efficient extraction process with a higher yield. Cytec offers two extraction product families - hydroxyoxime extractants under the name ACORGA and organo-phosphorus derivatives under the name CYANEX. The ACORGA NR and ACORGA OR series expand Cytecs line of solvent extraction products for copper solvent extraction. They help protect against degradation of solvent extractant, particularly that caused by exposur e to high nitration or oxidative conditions. This is a significant challenge for mining companies, many of which have more than $1million invested in extractants that their pr ocess uses over and over again. The Cytec products result in substantial cost savings by r educing extractant replacement costs and impr oving the operational reliability of a processing facility. CYANEX 600 allows mining companies to extract valuable molybdenum fr om their copper solvent extraction process. Molybdenum also exists at varying levels in most or e processed for copper extraction. By extracting this metal during their copper solvent extraction process, mining companies can gain an additional revenue stream from their existing operations. Molybdenum is in high demand for use in alloys that are used in applications that require high-strength, high pressure, high temperature or high corrosion resistance. Cytecs CYANEX 600 allows selective extraction, purification and concentration of molybdenum from low concentration acidic streams.
Product News
AVOID BELT MISS-TRACKING

CONVEYOR safety for moving bulk materials in mining and manufacturing operations is critical and there are few more dangerous environments than conveyors. Its reasonable for employees to expect that the workplace will be clean and safe, free of spillage from conveyors. If this is not a priority and employees ar e expected to work in poor conditions then staff turnover will be high and worker safety will be compromised. Kinder & Cos K-Self Aligning Idlers for both trough and return applications are used to overcome belt miss-tracking. They are made to suit the existing belt pr ofile and are constructed using a centre pivot bearing. The most common type is the pivoting base style and this type of K-Self Aligning Idler , in both trough and return applications, automatically provides belt centring. The outboard servo rollers cause the idler frame to pivot as they contact the belt edge and this swivel action causes the belt to realign automatically. When considering the ef fects of conveyor miss-alignment, the consequences of required manpower to corr ect the situation or the spillage are significant. Misaligned conveyor belts ar e potentially the cause for many problems associated with the conveying of bulk materials. This includes material spillage and reduced life to conveyor belting and conveyor structure. The goal in achieving pr oper and consistent belt tracking is to ensur e safe, consistent, trouble-free, economical conveyor system operation.
Kinder and Cos K-Self Aligning Idlers overcome conveyor belt miss-tracking.
Supplier News
CONTITECH CHINA ACQUISITION

GERMANYS ContiTech Conveyor Belt Group has strengthened its position in China and northern Asia through the acquisition of Tianjin Xinbinhai Conveyor Belt Co. ContiT plans to ech expand the Tianjin-based companys production facilities and to produce its industrial conveyor belts for Asian markets from the plant. The transaction was finalized on May 28 when ContiTechs mining world segment head Claus Peter Spille and T ianjin Xinbinhai Conveyor Belts future general manager Dr Hongbin Dong signed the contracts closing the deal with the local sellers. Both sides have agr eed not to disclose the purchase price. ContiTech Conveyor Belt Gr oups general manager Hans-Jrgen Duensing says, This move gives us a new market in an up-andcoming region and strengthens ContiTechs position in China. W e already manufacture conveyor belts for industrial applications at a number of locations worldwide. Now we can supply the Chinese market with pr oducts made right in the country. We are set to further expand the plant. Situated in the port city of T ianjin, 120km southeast of Beijing, the plant pr oduces mainly conveyor belts for metal and cement processing and mining, as well as for power plants, port operations and the automotive industry. It has a workforce of around 150. ContiTech, which is based in the norther n German centre of Northeim, has been active in China already for 30 years. ContiTech has 2100 employees in China and currently produces hose line systems, vibration components, air springs, surface materials, conveyor belts, drive belts, coated fabrics, and other components and systems locally at nine modern production plants. It is thus able to very successfully serve the needs of automakers, machine and plant engineering and construction, mining, the printing industry, and rail transportation. 528 Claus Peter Spille Hans-Jrgen Duensing 120 150 30 2100
ContiTech will produce industrial conveyor belts for Asian markets from its plant in Tianjin.
EAST TIMOR LAB REFURBISHED

A NEWLY refurbished geological laboratory in East T imor will boost the fledgling countrys research capacity and help geologists better understand its complex geology. A joint project involving The University of Western Australia (UWA), East Timors National Petroleum Authority (ANP) and State Secretariat for Natural Resources (SERN), and Italian-based international oil and gas company Eni, the r enovated building was opened during a cer emony in the capital, Dili.Pr oject manager John Williamson, of UWAs School of Earth and Envir onment, was responsible for designing and implementing the pr oject, with UWA professors Myra Keep and David Haig. Pr ofessor Keep said the university had been asked to submit a pr oposal to turn the existing lab into a hi-tech facility for rock preparation and petrology. The new lab boasts some of the latest technologies in pr paring gee ological materials and production of petrographic thin sections. It has the capacity to operate as a one-stop shop for housing of geological sample collections and their pr eparation on site for further analyses, she said. The lab can be used for storing equipment and materials for processing paleontological samples as well as curating and storing r ck o 72 | ASIA Miner | July/August 2011 specimens collected during mapping and exploration trips. UWA has also helped train SERN technicians to operate the new facility and equipment. Pr ofessor Keep said geological sample pr ocessing was highly skilled and r equired specialist training and constant practice. Eni Timor Leste country representative Tony Heynen said the refurbishment was the r esult of common inter ests between Eni T imor Leste, SERN and ANP to build capacity in the petr oleum sector. He said Eni held four production sharing contracts in the Timor-Leste Exclusion Area and was committed to providing support for petroleum infrastructure projects in the region. Eni committed over US$1.1 million to this project and we thank SERN and ANP for entrusting us with this contribution and UWA for fully delivering the pr oject in time and within budget. East Timorese company RMS Constructions carried out the r efurbishment with more than two-thirds of the workfor ce employed locally and sourcing 60% of goods from within East Timor. FOR MORE INFORMATION ABOUT UWA: WWW.UWA.EDU.AU
Supplier News
ESCO EXPANDS IN AUSTRALIA

ESCO Corporation, a designer, manufacturer and provider of highly engineered wear parts and replacement products used in mining and infrastructure development, has appointed Stonetec Industrial Supplies as its distributor in Tasmania, Australia. Located in Hobart, Stonetec Industrial Supplies is a leading local supplier of mining and construction equipment, and is well positioned to serve ESCOs customers in this region. ESCO Asia Pacific operations managing director Jeff Kershaw says, We are very excited to have Stonetec as a partner in T smania. With a more than 30 years of experience in the mining and construction industry, the Stonetec team is known for its outstanding pr duct knowlo edge and superior customer service. They ar e a key addition to ESCOs global network of distributors in Australia. Stonetec will offer a complete range of ESCO Pr oducts including SV2 and Ultralok gr ound engaging tools, Universal W ear Solutions and ESCO blades following expiration of ESCOs licence agreement with Bradken on June 30. ESCO is also expanding its presence in Australia with a new sales and service location in the Hunter Valley region of New South Wales. Jeff Kershaw says, ESCO Rutherfor d represents a crucial step forward in our efforts to directly serve Australian customers with quality ESCO products and support services. When fully operational on July 1, 2011, the Rutherford location will be home to local sales and service personnel, and will offer a full line of ESCO ground engaging tools, including the SV2 and Ultralok tooth systems, buckets and related wear parts, as well as a complete range of manganese crusher pr oducts, and bi-metallic wear buttons and blocks. ESCO Rutherford will also sell the new ESCO truck bodies. ESCO's director of sales for Australia Steve Lennard says, ESCO Corporations investment in a Rutherford facility provides a vital connection to our customers in the Hunter V alley region. We look forward to serving these key customers with r obust customer support and immediate access to ESCO products and services.
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Exploration
STRONG GOLD-COPPER INTERSECTIONS AT WONOGIRI

AUGUR Resources has intersected br oad zones of gold-copper mineralization in diamond drilling at Randu Kuning pr ospect within the Wonogiri joint venture project in Java, Indonesia. A recent intersection of 105.5 metr es @ 0.95 grams/tonne gold and 0.24% copper fr om 14 metres included 2 metres @ 6.06 grams/tonne gold and 1.0% copper from 40.5 metres. While this zone began at 14 metr s, anome alous gold was detected from surface which indicates further mineralization may exist to the west of the hole. Another hole drilled about 60 metres to the west r eturned 59.1 metres @ 1.31 grams/tonne gold and 0.30% copper from 8.2 metres. Augur and joint venture partner PT Oxindo have also received assays from the first 92.5 metres of another hole drilled to the west of and below an earlier hole that r eturned 37 metres @ 1.23 grams/tonne gold and 0.44% copper. The recent work detected two zones of mineralization, including 32.5 metres from 5 metres @ 0.66 grams/tonne gold and 0.13% copper, and a further 43 metres from 49.5 metres @ 1.55 grams/tonne gold and 0.27% copper. Additional mineralized areas exist around Randu Kuning. Augur has escalated its trenching program after identifying a number of additional targets and is undertaking detailed assessments of each with the aim of drill testing the most promising zones during the remainder of 2011. It is focusing initial drilling at Randu Kuning with the intention of estimating an initial JORC-compliant r esource by the fourth quarter. Wonogiri is in the Sunda Banda Ar c which also includes Newmont Minings Batu Hijau and Elang projects and Intrepid Mines Tujuh Bukit. It is 30km south of the pr vincial city of o Solo in central Java and easily accessible by daily flights fr om Jakarta. Augur has an agreement to earn a 51% inter est after expenditure of US$1.5 million by December 15, 2011, and can earn an 80% if it spends a fur ther US$2 million by the same date in 2012. Weishan zones identified FOUR major zones of mineralization have been identified in an exploration concession in Weishan County, Yunnan Province, China, hosting gold, copper, lead-zinc, iron and antimony mineralization. South American Iron & Steel (SAIS) is set to purchase an 11.25% interest in the concession for US$1.2 million. In 2009 Weishan Feiste Mining Company was granted the 48.15sqkm concession, which was historically exploited by local artisanal miners. Targeted costeaning, tunnelling and drilling are expected to go ahead soon. The Sichuan Metallurgical Geological Bureau 606 Survey Institute s previous work program identified the zones north and south extensions of the Zacun gold mine area, the Ganjiaping zinc-lead zone, the Miaojiacun copper zone and a zone containing antimony in the north-west. Geochemical soil sampling was conducted in the copper zone and the north and south extensions to the gold zone, to mor e accurately define the major mineralized systems. The bureau also completed geological mapping across the region surrounding the Zacun gold region, where six gold mineralization belts were defined. Surface sampling and tunnelling has r evealed near-surface gold mineralization. The surface sampling, tr enching and tunnelling work along strike to the north and south of the Zacun gold mine reveals highly prospective gold mineralization. The bureau initially defined a mineralization zone 200 metres-long and 150 metres-wide in the Ganjiaping zone. Costeans and tunnelling revealed five mineralized belts, thr ee of which have been further defined thr ough shallow engineering work. In the Miaojiacun zone, mineralization is in the core of a fragmented zone, distributed north-south on the short axis of an anticline. The brecciated zone is over 40 metres wide. Hydrothermal copper mineralization appears as multiple narr ow veins and stockworks. Massive chalcopyrite deposits have been observed in numerous samples. The transaction by ASX-listed SAIS involves the purchase of 15% of the shares in Hong Kong company Ample Success Investment, whose sole asset is a 75% interest in the concession.
Core samples from the Wonogiri project of Augur Resources.
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TAM Cover_Layout 1 6/17/11 4:18 PM Page 1

July/August 2011 | Volume 8 | Issue 4 | Industry Technical Information |

Philippines in focus Nickel shines German technology goes global

ASIA AT THE CORE

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Acoje heap leach trial .........................................10

New energy technology for China........................22

Southern Oyu Tolgoi pre-strip...............................28

July/August 2011 | ASIA Miner | 1

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STRONG NICKEL ASSAYS AT BOLOBOLO TARGET

Sampling nickel laterite from Mindoro Resources Agata Nickel-Cobalt Project.

8 | ASIA Miner | July/August 2011

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The nickel facilities in the Rio Tuba area.

10 | ASIA Miner | July/August 2011

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Drilling at Crazy Horse Resources Taysan Copper-Gold Project in southern Luzon.

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A schematic cross section of Medusa Minings Tambis tenement.

A massive sulphide outcrop at one of Philippine Metals properties.

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NEW ENERGY TECHNOLOGY FOR CHINA

18 | ASIA Miner | July/August 2011

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China Magnesiums project is in Shanxi Province, northern China.

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Loading ore in the open pit at Majestic Golds Songjiagou project.

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TUGRIK HEADS NORTH JUST LIKE MONGOLIA

26 | ASIA Miner | July/August 2011

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28 | ASIA Miner | July/August 2011

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Voyager Resources projects are in southern, central and northeast Mongolia.

30 | ASIA Miner | July/August 2011

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NEW INCO NICKEL PROCESSING FACILITY

Operations at a PT Inco nickel project on Sulawesi.

An overview of Sumatra Copper and Golds Tembang project in Sumatra.

32 | ASIA Miner | July/August 2011

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EPC AGREEMENT FOR ALUMINA REFINERY

36 | ASIA Miner | July/August 2011

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EPC AGREEMENT FOR ALUMINA REFINERY