Key Features
| Location: |
Everest Mine is located on the southern portion of the eastern limb of the Bushveld Complex near the town of Mashishing (formerly Lydenburg), in the province of Mpumalanga, South Africa |
| Comprises: |
Two decline shaft systems completed end FY2010
A central open-pit that was sterilised with the closure of the central shaft system
A concentrator plant with a capacity of 230,000tpm |
| Management: |
Dedicated AQPSA management team |
|
Production: |
Following an incident of subsidence and the resultant geotechnical instability in the upper central area of the the decline, operations were suspended in December 2008. Production resumed in May 2010 and Everest will produce 200,000 PGM ounces annually once it reaches stead-state production in FY2013. |
| Mineral Resources and Reserves |
Total attributable mineral resources of 3.73 million 4E ounces after application of geological losses
Total attributable mineral reserves of 1.99 million 4E ounces |
| Life-of-mine: |
To 2019 – this excludes potential opportunities involving the neighbouring properties of Hoogland, Sterkfontein and Vygenhoek |
| Refining: |
Offtake agreement with Impala Refining Services |
| Number of Employees: |
1,200 (end March 2010) building up to 2,000 in 2011 |
About Everest
Everest Mine is Aquarius’ third operation in South Africa. The feasibility study for the project was upgraded to full bankable status in February 2003 and the project was awarded its mining licence in June 2003. The first shipment of concentrate was made in November 2005, one month ahead of schedule.
Construction of Everest started in October 2004, following the conclusion of a black economic empowerment (BEE) transaction with a consortium led by Savannah Resources. This transaction injected R860 million into AQPSA which was used to fund the development of Everest. Some of the surface rights within the Everest mine area have been transferred to the local Bakone and Phetla community – the land’s historical owners – in terms of a settlement agreement reached with the land restitution authorities. The land required for mining is in turn leased back to Everest.
Location and Geology
Everest is approximately 450 kilometres east-north-east of the company’s flagship operation, the Kroondal Platinum Mine. The orebody is a well-defined, elongated basin-like structure of UG2 Reef lying beneath a hill and extending from surface to a depth of around 250 metres at the deepest point. The shallow nature of the orebody makes the development of Everest relatively cost-effective.
Production
The subsidence, which led to the suspension of operations in December 2008, was stabilised towards the end of 2009. An independent rock engineering specialist, in conjunction with the on-mine rock engineer, determined through modelling and analysis, that the subsidence, which was caused by the exceptionally high levels of rainfall in November and December 2008, was limited to the ground conditions in the specific area affected.
The stoping and development areas were not affected by the subsidence and it has been possible to resume mining operations with the establishment of new access declines to the underground workings.
Multiple access alternatives were evaluated and the development of two new declines, one north and one south of the original decline, were identified as the most expedient and capital efficient means of resuming operations while ensuring the optimal longer-term placement of infrastructure in terms of the orebody geometry. The north decline, which will serve as the main decline (including decline conveyors) while the south decline will be used for ventilation, men and material access.
Phase 1 of the re-establishment project, involving the excavation of the box cuts, storm water drainage and earth works, the installation of temporary services and an access road, was completed by the end of FY2010. Phase 2, which includes the establishment of permanent underground services, the reclamation of infrastructure, equipping of declines and strike sections and the re-establishment of stoping sections, started in December 2009 and is at an advanced stage and proceeding as planned. Production from the first stoping section at Everest resumed in May 2010. Permanent surface infrastructure, such as mine services, roads and overland conveyers, is also being completed.
All decline development, both North and South systems, as well as the surface infrastructure, is now complete. The North decline system is a normal portal with a three-shaft system for men, trackless equipment and a conveyor belt. The South system is a single shaft with a steel prefabricated tunnel that was constructed from the highwall to surface and completely filled and rehabilitated. This was a more cost-effective and environmentally acceptable solution.
The total capital requirement for the re-establishment project (Phases 1 and 2) which will enable operations to resume fully at Everest amounts to R259 million. To date, project expenditure totals R200 million.
Evacuation of the valley boxcut, at a capital cost of R35 million, will begin in July 2010. The valley boxcut system will access the western portion of the Everest reserve and will replace mined out areas in the current mine.
Commissioning of the chromite spirals plant has been scheduled to coincide with the resumption of milling operations at Everest. An offtake agreement has been signed with Glencore International AG for the purchase of the chromite produced. Revenue generated by the chromite by-product will contribute positively to Everest's margins. Production is scheduled to begin in July 2010 and the spirals plant is anticipated to have output of approximately 200,000 tonnes of chromite (40% Cr2O3) at steady state.
Everest Mine- metal split
Everest Mine
Everest Mine - mineral resources
Everest Mine - mineral reserves
Everest - mineral resources
Everest - mineral reserves
The Mineral Resources and Mineral Reserves have been confirmed in accordance with the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC 2007) and its equivalent, the Australian Code for Reporting of Mineral Resources and Ore Reserves (JORC 2004).
