The Asia Miner

APR-JUN 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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38 | ASIA Miner | Volume 14 • Issue 2 | 2017 India Lionsgold Limited expects to make a decision by the end of the June quarter on whether to construct an open pit mine at the Jon- nagiri Gold Project in India. The decision will follow the release of an economic feasibility study, which Lionsgold said was nearing completion. The Jonnagiri lease is held by Geomysore Services India Pvt Ltd, of which Lionsgold owns 20.5%. Geomysore has been granted a 30-year mining lease to mine 365,000 ounces of gold annually. UK-based Lionsgold, which was formerly known as Kolar Gold, has been rebranded and refinanced over the last few months. It also has an interest in Finnish explorer Kalevala Gold and a 50/50 Joint Venture with TRAC Technology to set up a retail gold platform in India. Lionsgold's chief executive Cameron Parry said, "We now have three complementary gold-focused divisions all of which have im- portant milestones pending. "Our India partners, Geomysore, are close to the conclusion of the economic feasibility study which takes us to the 'decision to mine' stage around the end of May. Lionsgold has also commissioned a valuation report on the entirety of Geomysore's licences and licence applications in India. "In addition, we are on the cusp of going live with our newly brand- ed physical gold and silver online holding and trading platform initial- ly targeting the India market." Lionsgold recent announced a substantial upgrade in resource quality at Jonnagiri. There are now 214,000 ounces in the indicated category and 147,000 ounces in the inferred category at the East and West blocks. The previous resource estimate had 103,000 in- dicated ounces and 248,000 inferred ounces. There was a margin- al increase in the total resource to 361,000 ounces. Cameron Parry said, "The results underpin the work and data gathered via the current feasibility study and materially improve the viability of a producing gold mine. "Additionally, the early test drilling results from the new South Block at Jonnagiri are particularly encouraging and plans are being made for further drilling on the South Block to establish an additional open pittable gold resource." Best of the shallow drill results included 8 metres from surface @ 2.67 g/t gold and 5 metres from 6 metres @ 4.24 g/t. The partners plan to undertake a 4000 metre drill program to fur- ther uncover the South Block's potential. NSL Consolidated has enhanced its Chinese relations by executing a strategic cooperation agreement for provision of wet beneficiation iron ore plant engineering, procurement and construction (EPC) ser- vices. The MoU outlines the way forward for strategic cooperation with experienced EPC provider Shandong Xinhai Mining Technolo- gy and Equipment. NSL and Xinhai will cooperate to secure financing for future ben- eficiation plants up to an annual concentrate production target of 2.5 million tonnes. Xinhai has a strong history with Chinese import/ export banks to provide funding for EPC projects. Xinhai will commence comprehensive testing from samples al- ready in China to finalise the process flow and equipment require- ments to produce a routine operating concentrate grade ranging between 63-65% iron, targeting 65%. Engineers from Xinhai will be on site in India to review NSL's existing iron ore operations. The results of the site visit and testing are expected to flow into NSL's upcoming expansion projects, whereby Xinhai will have the opportunity, based on acceptable commercial terms, to: 1. Build an additional 200,000 tonnes of concentrate capacity with commissioning targeted to commence in July 2017. 2. Build a 1 million tonne concentrate plant with commissioning targeted to commence in December 2018. 3. Build a 1 million tonne concentrate plant with commissioning targeted to commence in December 2019.NSL Xinhai will also optimise NSL's existing beneficiation plant to pro- duce a routine operating concentrate grade ranging between 63- 65% iron. Founded in 1997, Xinhai is a high and new technology enterprise providing turnkey solutions for processing plants, including design and research, machine manufacturing, equipment procurement, management services, mine operation, mine materials procurement and management, as well as industry resources integration. With 500 mining EPC projects, 70 kinds of ore mining technolo- gies and experience, and 20 patents, Xinhai has overseas offices in Sudan, Zimbabwe, Tanzania, Peru and Indonesia, and has export- ed to more than 20 countries. Xinhai has previously exported to India and is now looking to fur- ther its exposure in the growing Indian economy through the pro- vision of EPC services, seeing an Australian company operating in India as an ideal opportunity. The MoU, along with the existing Huate relationship, enhances NSL's relationships and expertise in China. More Chinese com- panies are looking to Indian business opportunities for their future growth. NSL signs EPC cooperation agreement Drilling at the Jonnagiri Gold Project in the Kurnool region of India's Andhra Pradesh state. Decision to mine Jonnagiri is imminent

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