Tag Archives: Lycopodium

Roxgold lays Séguéla groundwork with Metso Outotec, Lycopodium contract awards

Roxgold says it has awarded a SAG mill order for the Séguéla gold project in Côte d’Ivoire to Metso Outotec as part of its efforts to advance the project through to construction in the coming months.

The move comes ahead of the release of feasibility study on the project next month, which will build on a 2020 preliminary economic assessment (PEA) that outlined an operation capable of delivering over 100,000 oz/y of gold over eight years at average all-in sustaining costs of $749/oz. This study also incorporated a single stage primary crush/SAG milling comminution circuit with 1.25 Mt/y throughput.

At the same time as selecting Metso Outotec for the SAG mill contract, Roxgold has awarded preferred contractor status to Lycopodium Minerals Pty Ltd and is currently negotiating the engineering, procurement, and construction (EPC) agreement with the company for the 1.25 Mt/y carbon-in-leach processing facility and other supporting infrastructure to be constructed at Séguéla.

The fixed price agreement increases confidence in the total capital cost for the project, as it is by far the largest scope at Séguéla, Roxgold said.

“With this agreement in the final stages of negotiation and several other key scopes now tendered and priced, approximately 65% of the pre-production capital estimate has now been fixed or finalised,” the company added. “This level of detail provides increased confidence around the pre-production capital estimate, which is expected to be in-line with the previous estimate of $142 million, as outlined in the PEA.”

In terms of progressing work on long-lead time items, Roxgold said it had awarded the plant site bulk earthworks tender, with a contract expected to be executed and works commenced in the June quarter to support the project critical path.

The company has continued to advance its early works program at site including upgrading of the site access road and construction of the accommodation village. Contracts were awarded for camp bulk earthworks and camp construction, with first concrete poured last month, it said.

Surveying has been completed for the 33 kV and 90 kV power lines to tie into the existing 90 kV transmission line running across the property, which is connected to the 225 kV ring main system around the country. These early work activities will enable a rapid ramp up to full construction upon completion of the feasibility study and mine financing in the June quarter of this year.

Roxgold says it has undertaken a competitive tender process and has conducted a detailed assessment of the contract mining proposals received. It is currently completing diligence on the shortlisted parties and plans to award the mining contract later this year to allow for contractor mobilisation, site establishment,and commencement of pre-production mining early next year.

John Dorward, President and Chief Executive Officer, said: “The Séguéla project has rapidly become a cornerstone asset for Roxgold, and we believe that the project will provide significant value to all our stakeholders.

“The feasibility study is on track to be announced in the second (June) quarter, which we believe will demonstrate the ongoing evolution of the Séguéla PEA with an enhanced mine life and project economics with the inclusion of the high-grade Koula deposit into the mine plan.”

Sila Equipement to take on contract mining task at Orezone’s Bomboré gold project

Orezone Gold Corp has selected Sila Equipement ET BTP SA as its open-pit mining contractor for the Bomboré gold project in Burkina Faso.

This follows the January appointment of Lycopodium Minerals Pty Ltd as the lead EPCM contractor for the project.

Sila, a Burkinabé company, will initially have a contract scope that covers the mining of the Off-Channel Reservoir (OCR) pit, as well as the upfront establishment of mine site services (maintenance workshops, wash bays, warehouse, ablutions and accommodations, offices, and communications), the clearing and grubbing of the OCR footprint including topsoil relocation, as well as pit dewatering and haul road maintenance.

Orezone said mining of the OCR is an important milestone given that the pit will serve as the main water storage facility during operations.

“The mobilisation of Sila will ensure that the OCR and its related infrastructure will be ready well in advance of the onset of the 2022 rainy season,” the company explained.

Orezone says it is working in partnership with Sila to finalise certain key terms under the long-term mining contract.

Patrick Downey, President and CEO, said: “With the project financing now in place, we are rapidly advancing the engineering, procurement, and construction of the project. The early award of the mining contract will allow our project to remain on schedule.

“I am pleased that Sila, a local contractor, has been awarded this work which speaks to the depth and continued growth of the mining service industry in Burkina Faso. The company’s selection of Sila was made after a competitive tender and due diligence process including a review of safety and operational performance in free-dig oxide operations such as Bomboré. Sila has demonstrated an excellent track record in other similar Burkina Faso mining operations.”

He added: “The proposed mining fleet is brand new equipment and will be operated by Sila’s highly experienced senior operations and maintenance team.”

Since the recent appointment of Lycopodium in January as the EPCM contractor, the company says it has rapidly advanced engineering and procurement activities, and made significant progress on refining the project construction timeline. The company’s key procurement and site-based activities in the upcoming months will be focused on the following:

  • Pre-production mining to commence in March 2021;
  • Ball mill order (a critical long lead item) to be placed in March 2021;
  • Award of power plant contract in March 2021; and
  • Site-wide bulk earthworks to commence April 2021.

Orezone makes Bomboré headway with Lycopodium EPCM award

Orezone Gold is moving closer to the construction phase at its 90% owned Bomboré project in Burkina Faso after awarding an EPCM contract for the gold asset, completing a Phase I Resettlement Action Plan (RAP) with nearby communities, and making progress on awarding both mining and power plant Build-Own-Operate contracts.

The company has awarded the engineering, procurement, and construction management contract to Lycopodium Minerals Pty Ltd, a company, Orezone says, has an excellent track record of delivering projects on time and on budget in West Africa.

When it comes to the Phase 1 RAP, Orezone said all villages and infrastructure have now been completed.

“Relocation of households is proceeding smoothly with relocation substantially complete,” it noted. “This opens access to all areas required for the preparation of the process plant, surface infrastructure, and key mining areas including the off-channel reservoir and tailings storage facility.”

Alongside this work, Orezone has undertaken a competitive tender process for the contract mining agreement at Bomboré, including bidder site visits and a detailed assessment of proposals received.

The company plans to award the open-pit mining contract in early 2021 to allow for contractor mobilisation, site establishment, and commencement of pre-production mining by the end of the March quarter.

Bids for the Build-Own-Operate power plant, meanwhile, have recently been received from companies specialising in providing power solutions in West Africa, Orezone said. The company expects to award this contract in the current quarter.

Orezone’s 2019 feasibility study on Bomboré envisaged a 5.2 Mt/y throughput operation able to produce, on average, 117,760 oz of gold over a 13-year mine life where both oxide and sulphides would be mined and processed.

The company said negotiations for conventional project debt covering a major portion of the initial project construction budget of $153 million were advancing “rapidly and smoothly”, with expectations of binding debt commitments being announced later this month.

As currently planned, first gold is scheduled for early in the September quarter of 2022.

Patrick Downey, President and CEO, said: “Awarding the EPCM contract to Lycopodium is a key step to ensure the continued successful development and construction of the Bomboré project. With more than 12 mines built in West Africa, Lycopodium’s track record of building efficient mines on time and on budget is unparalleled.

“Lycopodium is very familiar with Bomboré, having performed the 2018 Feasibility Study, the 2019 Updated Feasibility Study, and the previously completed front-end engineering and design.”

Downey said Lycopodium will be able to immediately build on its past work and progress the project in a cost effective and timely manner.

Mondium secures WTS2 iron ore contract from Rio Tinto

Rio Tinto has awarded Perth-based Mondium a A$400 million ($276 million) contract to design and construct the Western Turner Syncline Phase 2 (WTS2) mine in the Pilbara of Western Australia.

Mondium, a joint venture involving Monadelphous and Lycopodium, will undertake all engineering and design, procurement and site construction works associated with the WTS2 development, including the process plant, overland conveyor and non-process infrastructure.

Back in November, Rio said it would invest $749 million in the development of WTS2 at its Greater Tom Price operations, facilitating mining of existing and new deposits and including construction of a new crusher as well as a 13 km conveyor. In addition to this, the haul truck fleet at the mine will be fitted with Autonomous Haulage System technology to enable autonomous haulage from 2021.

Mondium’s work is expected to create 450 jobs starting in the March quarter, with completion slated for 2021. Rio said Mondium and it would work closely to ensure the contract provides local and Indigenous employment as well as business opportunities in the region.

Rio Tinto Iron Ore CEO, Chris Salisbury, said: “We’re committed to supporting WA businesses, buying locally and supporting our communities through the creation of jobs. We’re pleased to award this contract to Mondium who share those values.”

Mali Lithium enlists Lycopodium for Goulamina spodumene DFS

Australia-listed Mali Lithium has appointed Lycopodium Minerals Pty Ltd to complete the definitive feasibility study (DFS) for the Goulamina lithium project, in Mali.

A July 2018 prefeasibility study on Goulamina outlined an open-pit hard rock mining operation with a 2 Mt/y concentrating plant. The project was scoped to produce 362,000 t/y of 6% Li2O spodumene concentrate over a 16-year mine life.

Mali Lithium, formerly Birimian, said Lycopodium was an obvious fit for Goulamina given the over 25 years of experience the company had with the development and execution of projects in Africa. “Lycopodium is a recognised leader in the delivery of mining projects with an exceptionally strong capability in the development of projects in West Africa,” the company added.

In Africa in the past two years alone, Lycopodium has designed, constructed and commissioned seven greenfield projects, and is also currently developing a further three process plants, according to Mali Lithium.

“Lycopodium’s appointment for this critical piece of project development work is testament to both the company’s commitment to, and the prospectivity of, the Goulamina lithium project,” Mali Lithium said, adding that its own in-house team will work closely with Lycopodium to develop the DFS.

Mali Lithium Managing Director, Chris Evans, said: “We are pleased to have secured a company of Lycopodium’s calibre, with a proven track record of delivering important pieces of work like the Goulamina DFS in a timely and efficient manner.

“We look forward to working closely with Lycopodium over the coming period and we are excited by what the outcomes of this DFS will be.”

Lycopodium to lead PFS for battery materials refinery project

Queensland Pacific Metals (QPM) has appointed Lycopodium Minerals Pty as the Lead Engineer for the prefeasibility study on the Townsville Energy Chemicals Hub (TECH) project in Queensland, Australia.

Pure Minerals, the parent company of QPM, said: “With the acquisition of QPM being approved by shareholders and in the process of being finalised, Pure Minerals is excited to launch its planned battery materials refinery as the Townsville Energy Chemicals Hub.”

The TECH project will produce nickel and cobalt sulphate chemicals required for the battery energy storage sector, with QPM immediately commencing the PFS for a 600,000 t/y battery materials refinery producing approximately 25,000 t/y of nickel sulphate and 3,000 t/y of cobalt sulphate and other valuable co-products, Pure Minerals said.

The previous scoping study envisaged annual primary production of around 25,400 t/y of nickel sulphate and 3,000 t/y of cobalt sulphate (containing 5,760 t of nickel and 630 t of cobalt), alongside some 221,000 t/y of hematite, 8,700 t/y of alumina and 4,600 t/y of magnesium oxide. This came with construction capital costs of $297 million.

Lycopodium Minerals Pty is a subsidiary of well-regarded engineering company, Lycopodium, which has experience applicable to the TECH project, according to Pure.

This includes:

  • Being highly active in the battery metals space, having undertaken many feasibility studies for clients in nickel, cobalt, lithium and graphite;
  • Completing a feasibility study for Direct Nickel Projects Pty or a nominal processing plant using the DNi Process™ (a pilot plant example from CSIRO pictured), which the TECH project will be using, and;
  • Completing feasibility studies for other nickel projects incorporating downstream processing to produce battery chemicals, including BHP’s Nickel West project and Cleanteq’s Sunrise project.

The key responsibilities for Lycopodium under its contract with QPM are process, process services and utilities design and engineering; preparation of project capital and operating cost estimates; and compilation of the PFS report, including integration of studies relating to other work packages.

Lycopodium has also agreed to accept shares in Pure Minerals as consideration for around 20% of its estimated fees, according to Pure Minerals.

The PFS is expected to be completed in the September quarter.

Lycopodium Minerals Managing Director, Rod Leonard, said: “The outlook for battery metals is positive and Lycopodium is well positioned to carry out this body of work, having completed a wide range of studies for major, mid-tier and junior clients in this space.”