Name of the Project
Eland mine complex – Kukama shaft project.

Location
The project is located in Brits, in South Africa’s North West province.

Project Owner/s
Northam Platinum.

Project Description
The Kukama project will form the production base for the broader Eland complex.

The Eland mine was put on care and maintenance in 2015 and Northam continued to manage it as such while undertaking a feasibility study for the Kukama shaft.

Eland’s two mining rights have a resource currently estimated at 19.3-million ounces of platinum, palladium, rhodium and gold (4E), at an average in situ grade of 3.95 g/t.

The mine complex includes surface and underground infrastructure, including a 250 000 t/m concentrator, a chrome spiral recovery plant, a tailings storage facility, two decline systems and surface support infrastructure, as well as a mining fleet of more than 100 vehicles.

The Kukama feasibility study envisages steady-state production of 150 000 oz/y of 4E, with unit costs in the lower half of the industry cost curve.

The project has a life-of-mine of more than 30 years.

Potential Job Creation
The project is expected to create 2 800 permanent jobs.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Capital expenditure is estimated at R2.2-billion over a five-year period. The project will be fully funded from Northam’s resources.

Planned Start/End Date
Conversion of the Kukama decline shaft into a footwall array will start in the 2020 financial year, along with limited early stoping.

Strike development and stoping build-up is scheduled to start in the 2021 financial year.

Production is forecast to reach 100 000 oz/y 4E by 2025 and steady-state production of 150 000 oz/y 4E is forecast from 2029.

Latest Developments
While completing the Kukama feasibility study and following positive feedback from the study, Northam began early work in preparation for the recommissioning that includes refurbishing underground fixed and mobile equipment, as well as certain sections of the concentrator.

Processing of the tailings storage facility has also begun, which has facilitated a restart of the surface plant and associated infrastructure.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
R&A Strategic Communications on behalf of Northam Platinum, tel +27 11 880 3924 or email northam@rasc.co.za.