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Mwana subsidiary signs Klipspringer retreatment deal

28th May 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – A subsidiary of Aim-listed Mwana Africa, Southern Era Diamonds, has signed an agreement with Greenhurst Mining and Exploration for the retreatment of fine residue tailings at Mwana’s 65%-owned Klipspringer diamond mine, in South Africa, on a profit-share basis.

Greenhurst would supply and operate a 50 t/h diamond processing facility to extract diamonds of between 0.5 mm and 1.5 mm in size, with the recovered diamonds to be sold by open tender.

Construction of the processing plant, which would have a throughput of about 22 560 t/m, and site preparation work were in progress.

Greenhurst appointed Kimberley-based bulk sampling company Gemcore Sampling to collect and process bulk samples from the slimes dams, as well as to operate the processing plant.

Sampling of the Marsfontein and Klipspringer fine residue tailings was completed at the end of 2012 and the results demonstrated that there were sufficient quantities of diamonds to make retreatment economically viable.

As the operator of the plant, Gemcore would be responsible for both the mining and processing of the slimes material.

It was aiming to commission the plant in the fourth quarter of this year, with production to start thereafter. The project was expected to have a 44-month operating life.

Greenhurst was funding the project through a mix of asset finance and shareholder contributions.

Southern Era would not incur any operating costs nor be required to invest in the project. The proceeds due to it would assist in covering the care-and-maintenance costs at the Klipspringer mine, while the company reviews the restart of commercial operations at the mine.

Operations were halted following severe weather incidents in December 2010 and January 2011, which resulted in areas of the mine being flooded.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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