The Asia Miner

JUL-SEP 2017

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

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36 | ASIA Miner | Volume 14 • Issue 3 | 2017 India LIONSGOLD Limited expected that an economic feasibility study for the Jonnagiri Gold Project would be complete by the end of June. Jonnagiri, which has a JORC-compliant resource of 361,000 ounces, has the potential to be India's first privately owned gold producing mine. Geomysore Services India, in which Lionsgold holds 20.5%, has invited expressions of interest for appointment of a contracted Mine Developer and Operator (MDO) for the project. The scope of the intended MDO will include: • Design, development and operation of the mine in accordance with the relevant Acts and Rules; • Installation, commissioning, operation and maintenance of the gold ore processing plant and all related project infrastructures and site facilities; • Management of overburden and tailing dumps, and the delivery of processed gold to Geomysore; and • Assisting Geomysore in land acquisition and management (in- cluding community engagement), together with obtaining stat- utory clearances and the development of mine infrastructure including water and power structures as required for effective operation of the mines. In light of the financial commitment of bringing Jonnagiri into pro- duction should the decision be taken to develop a mine, Geomy- sore considers it the most pragmatic path forward to becoming a gold producer whilst concurrently developing their other exploration projects. In doing so, it will prove its business model at Jonnagiri and start generating cash flow to then be deployed in the additional target areas within the Jonnagiri ML as well as development of the other gold prospects in the portfolio. Meantime, an independent report has valued the Indian gold ex- ploration assets held by Geomysore, excluding Jonnagiri, at ap- proximately US$7.95 million. The valuation by Golder Associates comprises exploration areas held by Geomysore through approved Prospecting Licences (PL), Prospecting Licences in Application (PLA) or Mining Licences in Application (MLA). Golder assessed the exploration assets covering a total area in excess of 900sqkm. They comprise 36 PLs, PLAs and MLAs that predominantly cover greenstone belt areas in southern and central parts of India, with the main groupings found in the Kolar and Jagular regions in the states of Andhra Pradesh and Karnataka respectively. Golder determined the total value of these assets at a low level of US$6.54 million, a high value of US$9.45 million and an expected value of US$7.95 million. SALES of wet plant iron ore produced from NSL Consolidated's new Phase Two Wet Beneficiation Plant at Kurnool in Andhra Pradesh state have commenced. The company's first two sales orders for the product have come from Infinity Ores with the first advance payment received. Infinity is providing high-grade feed for blending with existing plant feed to routinely produce material for existing and expected future orders. In April, NSL received a commercial purchase order from Infinity for 20,000 tonnes of the premium product from the Phase Two plant. The order was for the supply of 63% iron filter cake and the negotiated sales price was the equivalent of A$65 ex gate. In June, NSL received a second order from Infinity for supply of 20,000 tonnes of 60/61% iron filter cake and the negotiated sales price was the equivalent of A$67 with payment in advance on 1000 tonne lots. An increase in the strength of the local domestic iron ore market allowed NSL to negotiate the additional purchase with Infinity. At the time, the company said there was also an opportunity to renegotiate the terms and conditions of the existing 20,000 tonne 63% order. NSL managing director Cedric Goode said the orders reflected the strong working relationship with Infinity and their confidence in the performance of the company and the wet beneficiation plant. "In working with Infinity, this new order at a higher sales price will take production priority, with approximately 2000 tonnes of 61% iron already stockpiled." Regarding the Phase Two plant sales Cedric Goode said, "The milestone of first sales from the wet plant is something everyone in the company is very proud of. We have worked extremely hard over a long period to be the only foreign company to own and operate iron ore mines in India. "With continued hard work and dedication from all stakeholders, the company has a promising and unbelievably exciting future. We are ramping up to our 200,000 tonne per annum plant capacity of final concentrate as efficiently and effectively as possible." The plant is now operating 24 hours and producing filter cake for sale from Infinity feed material. NSL is expecting regular iron ore dispatches and regular payments. NSL wet plant sales commence Drilling at the Jonnagiri Gold Project of Geomysore Services India and Li- onsgold Ltd. Mine developer sought for Jonnagiri

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