Tag Archives: South Australia

OZ Minerals eyes up block cave opportunities at Carrapateena underground mine

A prefeasibility study on an expansion of OZ Minerals’ Carrapateena copper-gold underground mine, in South Australia, has indicated a block cave conversion in the lower portion of the Carrapateena resource has the potential to almost double average production from 2026.

It is these results, plus the potential Block Cave 1 and Block Cave 2 expansion net present value of circa-A$770 million ($534 million) at final investment decision in 2023, that has seen the company confirm it will progress the plan to feasibility study stage, with the Carrapateena Block Cave Expansion Feasibility Study Stage 1 report expected before the end of 2021.

The PFS plan includes the potential to transition to dry-stacked tailings to reduce reliance on groundwater resources and a trial of electric light vehicles and establishment of a renewable energy hub – both of which are aligned with OZ Minerals’ strategy and aspirations, OZ Minerals Chief Executive Officer, Andrew Cole, said.

Carrapateena produced first concentrate in December 2019 following a three-year construction period and is targeting a 12-month ramp-up period to achieve a production rate of 4.25 Mt/y by the end of this year.

Currently an underground sub-level cave operation with an estimated mine life of 20 years, the latest study, which comes with a A$1.2-1.3 billion capital expenditure bill shows the potential for a future expansion of the bottom half of the operation into a series of block caves.

Cole said: “The prefeasibility study analysed the whole Carrapateena Province and determined that replacing the lower half of the current sub-level cave with a block cave and expanding the expected annual throughput rate from 4.7-5 Mt/y (currently planned from 2023) to 12 Mt/y, has the potential to create significantly more value than the sub-level cave alone.”

He said the block cave would leverage existing underground infrastructure, supported by expanded surface processing capability.

OZ Minerals added: “The proposed block cave is different from previous Carrapateena block cave studies as it targets a smaller, higher-grade footprint in BC1 (block cave one) with 600 m height of draw, followed by a lower-grade BC2 (block cave 2) with 400 m height of draw. The Carrapateena block cave builds on modern block caving experience, and aims to deliver an automated, electrified, data-driven mine with technology embedded in the design.”

The conversion to block cave operations enables a series of future add-on block caves, all of which were considered in the Life of Province scoping study, Cole added.

The plan could see annual production double to around 110,000–120,000 t of copper and 110,000–120,000 oz of gold from 2026, with life of mine all-in sustaining costs of some $0.75-0.85 c/lb ($1,654-1,874/t), he said.

Key upgrades to underground infrastructure include faster conveying systems with improved utilisation and a larger crusher station three for the block cave with increased capacity over that required for the sub-level cave.

An additional primary ventilation fan and circuit will be required for the transition period from sub-level cave to block cave before a reduction in the mine’s ventilation requirements for the life of mine, the company added.

The prefeasibility study currently recommends the process plant upgrade to 12 Mt/y via a parallel processing circuit to minimise brownfield interfaces and introduce energy load scheduling via the vertical roller mill as the primary surface crushing option, OZ Minerals said.

“The parallel process plant approach also allows both plants to be run independently, and for mine production to continue during plant shutdown periods,” the company said.

However, pivoting back to a traditional SAG/ball grinding circuit in the parallel process plant or tertiary crushing, to increase sub-level cave process plant throughput, will remain as options until final detailed design, OZ Minerals explained. This will not have a material impact on project value and allow time for optimisation of the current sub-level cave process plant before a final decision, it added.

BHP to bolster Australia workforce with new short-term hires

BHP says it is to hire 1,500 additional people to support its workforce operating across Australia.

The 1,500 jobs will be offered as six-month contracts and cover a range of skills needed by BHP operations in the short term, it said. These jobs will support and bolster its existing workforce during a difficult time when the COVID-19 virus continues to spread.

Yesterday, the company said it was accelerating payment of outstanding invoices and the reduction of payment terms for its small business partners and regional communities in Australia in response to the outbreak.

The roles will include machinery and production operators, truck and ancillary equipment drivers, excavator operators, diesel mechanics boilermakers, trades assistants, electricians, cleaners and warehousing roles across BHP’s coal, iron ore and copper operations in Western Australia, Queensland, New South Wales and South Australia. The jobs will be offered through existing labour hire partners and BHP contracts in each state, it said.

Following the initial six-month contract, BHP will look to offer permanent roles for some of these jobs. BHP will continue to assess this program and may increase the number of jobs available, it added.

BHP Acting Minerals Australia President, Edgar Basto, said supporting the company’s employees, communities and partners, safely, is the highest priority.

“As part of BHP’s social distancing measures we are introducing more small teams with critical skills to work dynamically across different shifts,” he said.

“The government has said that resources industry is vital in Australia’s response to the global pandemic. We are stepping up and providing jobs and contracts. Our suppliers, large and small, play a critical role in supporting our operations. It is a tough time for our communities and the economy. We must look out for each other as we manage through this together.”

NRW Holdings to upgrade Olympic Dam airport

NRW Holdings’ wholly-owned subsidiary, NRW Contracting, has been awarded an airport upgrade contract with BHP at its Olympic Dam copper-gold-uranium project, in South Australia.

The scope of works includes two separable portions:

  • Airside works – includes bulk earthworks, pavement construction and drainage works for the construction of a new 1,860 m long runway and refurbishment of the existing taxiway and extension of the apron areas; and
  • Landside works – includes reinforced concrete works, structural steel and modular structures and all services for the upgrade of the existing terminal building and the surrounding infrastructure.

The new contract value is circa-A$48 million ($28 million) and is expected to have a duration of around 37 weeks with works commencing in late March.

The project will have an expected peak workforce of around 140 (including subcontractors), according to the company.

NRW’s CEO and Managing Director, Jules Pemberton, said: “NRW is delighted to be awarded this contract at Olympic Dam following the successful acquisition of the BGC Contracting business.

“NRW has a long history with BHP in their iron ore, coal and nickel divisions but this contract marks the first project for the copper operations. I look forward to the safe and successful execution of the works.”

OZ Minerals Carapateena copper-gold mine ramp up begins

OZ Minerals says it has now produced its first saleable copper-gold concentrate from the Carapateena underground mine, in South Australia, just over two years since the board approved the development.

The company said the first concentrate had been produced into the pre-filter press feed tank at the mine, with the achievement meeting the December quarter 2019 schedule mapped out when Board approval was given in August 2017.

Pre-production capital cost at first saleable concentrate is around A$970 million ($669 million) with 2019 growth capital spend on track for guidance of A$540-$570 million, the company said.

OZ Minerals commented: “Sufficient saleable concentrate is expected to be produced to the filter feed tank over the coming days to then complete our first concentrate press. Over 280,000 t of development ore is stockpiled on the surface as the mine now enters a faster circa 12-month ramp-up towards reaching a 4.25 Mt per annum throughput rate by the end of 2020, dependent upon the cave performing as expected.”

Chief Executive Officer, Andrew Cole, said: “This project began three years ago with initial decline works kicking off in Q3 (September quarter) 2016 followed by Mining Lease approval in April 2018 and first underground development ore in April this year.

“Today’s milestone represents the collaboration, support and hard work of a great many people including our operations and construction teams and the large number of contractors involved.”

He said the company’s key operational focus remains on underground development as the company ramps up the mine.

“The streamlined mine design with an expanded footprint will improve cave establishment, reduce risk during the ramp-up phase and may enable future annual throughput expansion opportunities as we continue to assess options to expand capacity above 4.25 Mt annually,” he said.

The company said this ramp-up period would allow it to test and optimise the plant throughout the first half of 2020 leading to gradual throughput and recovery increases to drive progressively higher output in the second half of the year. The now larger sub-level cave footprint along with an optimised mine design is expected to enable a faster cave ramp-up, provided the cave performs as modelled, the miner added, explaining that this would see the target 4.25 Mt/y run rate reached by end-2020 and the potential for a throughput boost.

Cole concluded: “Although we announce first saleable concentrate today, we have already commenced a block cave expansion scoping study looking at increasing both the life and production capacity of Carrapateena from 2025.”

Capital expenditure in 2020 will include permanent mine development, the circa-50 km Western Access Road construction and completion of conveyor installation and crusher, OZ said.

Production for 2020, as the ramp up progresses, is expected to be in the range of 20,000-25,000 t of copper and 35,000-40,000 oz of gold.

BHP to rollout light electric vehicle trials to iron ore, nickel in WA

Speaking at the Resources Technology Showcase, in Perth, Western Australia (WA), this week, BHP’s Chief Transformation Officer, Jonathan Price, said from the trial of light electric vehicles at its Olympic Dam mine, in South Australia, had come back with positive results and it would soon expand testing to its iron ore and nickel businesses in WA.

“The Olympic Dam trial is providing us with valuable data and information to understand how we may continue to electrify different forms of transportation, and material movement in our operations,” he told delegates.

“Early results indicate significantly reduced maintenance time, and very positive operator feedback on the vehicle – not only are they smooth to drive, they’re quiet – and with no diesel exhaust and dramatically reduced greenhouse gas emissions.”

BHP worked with Adelaide-based Voltra on the light electric vehicle trial at Olympic Dam, with the technology company developing a 100% electric drive LandCruiser 79 Series (pictured) to be put through its paces in full underground fleet operation.

Still on the theme of decarbonisation, last month, BHP announced four new renewable power agreements at its Escondida and Spence operations, in Chile. The contracts will displace 3 Mt/y of CO2 from 2022, compared with the fossil fuel based contracts they are replacing, according to Price.

He said the company was also “exploring options to do something similar” in Australia.

Price added: “BHP is currently in the market for innovative power solutions for our Eastern Australia Mineral Assets. We have received a positive response from the market, consulting over 40 different parties.”

He said the company expected to make a decision on this in the first half of 2020.

And, on the subject of Integrated Remote Operations Centres (IROC), which BHP has used to expand its use of automation and digitalisation, Price said the company is looking to expand its reach again.

“We launched our very first IROC here in Western Australia back in 2013,” he said. “Three years later we took the lessons learnt from this and built an IROC in Brisbane, overseeing our east coast coal operations.

“Now we have a centre operational in Santiago and have one planned in South Australia,” he said.

South Australia government invites explorers to trawl Gawler Craton exploration data

The South Australia Government is to host a A$250,000 ($169,397) crowd-sourced open data competition to fast-track the discovery of mineral deposits in the state.

Called ‘ExploreSA: The Gawler Challenge’, it will see the government partner with open innovation platform, Unearthed, in a worldwide call for geologists and data scientists to uncover new exploration targets in the state’s Gawler Craton region.

Using the Geological Survey of South Australia’s historical records, primary data and research, the competition combines geological expertise with new mathematical, machine learning and artificial intelligence to increase the number of potential drill targets across central South Australia, Unearthed said.

South Australia Minister for Energy and Mining, Dan van Holst Pellekaan, said: “This state-of-the-art competition has the potential to unearth the next Olympic Dam or Carrapateena by encouraging global thinkers and innovators to interrogate our open-file data and generate new exploration models and ideas for targeting.

“Mining is one of the pillars of the South Australian economy and this competition should add to the pipeline of projects in the resources and minerals processing sector.”

He said the state’s existing inventory of discoveries suggest there are “major prospects” and many other deposit styles and commodities to be identified, with this competition only serving to bring those internationally significant discoveries forward.

“ExploreSA is an example of the bold and progressive thinking required to assist industry in accelerating the state’s annual economic growth rate to 3%.”

All targets generated, including those from the winners of the A$250,000 prize pool, will be publicly shared to increase innovation and understanding in the resources sector by enabling access to data science approaches and modern geoscience thinking, according to Unearthed.

Unearthed Industry Lead – Crowdsourcing, Holly Bridgwater, said the competition served to leverage data science to its full potential at a time when significant new discoveries are becoming rarer.

“This exciting crowdsourcing competition and world-class open dataset will attract a global community of innovators, some whom won’t have worked in the mining industry before,” she said.

“We can’t wait to see how they will apply their diverse skills, fresh ideas and novel approaches to mineral exploration to accelerate discovery in South Australia.”

Earlier this year, OZ Minerals partnered with Unearthed on an online crowdsourcing competition to find new exploration targets at the Mount Woods tenements of the Prominent Hill copper-gold mine, in South Australia.

ExploreSA: The Gawler Challenge will open early next year. To find out more, visit: https://unearthed.link/ExSAGC_IM

Weir GEHO pumps keep up the pressure at SIMEC’s Whyalla steelworks

Weir Minerals’ GEHO® positive displacement pumps are helping SIMEC Mining keep up its production goals at the Whyalla steelworks in South Australia.

SIMEC produces iron ore concentrate for the steelworks from a 10 Mt/y iron ore mine in the Middleback Ranges of South Australia, with the GEHO pump’s responsible for transporting the slurry 67 km from the plant to Whyalla, where it is then dewatered and converted to pellets for the steelmaking process. SIMEC has two GEHO PD pumps on site, which, through high pressure pumping, ensure the material stays suspended in the pipeline throughout the journey.

“The GEHO pumps transport the slurry about 250 cubic metres an hour, 300 tonnes an hour into town,” Chris Stanton, Senior Process Engineer, SIMEC Mining, said. “They run every day, all day and are very powerful pumps. They have defined maintenance intervals that allow us to run each pump for the nominal amount of time without any risk of breakdown.”

As the pumps are critical for both the plant and steelworks, it’s crucial they are well maintained to continue to perform year after year. This is made possible through the close partnership between Weir Minerals and SIMEC Mining, according to Weir.

Anthony Sheely, Concentrator Operations Coordinator, SIMEC Mining, said: “If the GEHO pumps didn’t operate properly then the pipeline would be at risk, and that would be a major issue as the pipeline is the lifeblood for both our operation and the entire township of Whyalla.”

Pumping long distance is a critical requirement at many mines around the world, but often comes with challenges and key design considerations that operators must be mindful of.

Peter Thissen, Global Product Manager for GEHO pumps at Weir Minerals, said: “The biggest challenge of long-distance pumping is generating slurry with a suitable particle size distribution for the application. Operators must concentrate the particle size distribution to make it a pumpable slurry whilst trying to minimise the amount of water used in the process.”

He added: “We deal predominantly with high solids concentrations, which is becoming more important in both a water constrained and environmentally sensitive industry. Our depth of experience and knowledge together with the delivery of innovative designs has provided effective solutions to meet our customers’ needs around the world.”

Designing a pipeline like the one for Whyalla is a complex balancing act between the rate of flow, the concentration of slurry and the size of particles, according to Weir. For solids in slurry to remain in suspension, they need to be moved by the liquid at a minimum velocity.

Another challenge operators are faced with is the pipeline route. This must be the most economic means of transportation and suitable for the flow behaviour of the material.

Thissen says: “It’s much easier to build a pipeline on flat land as it stays horizontal and the operational condition for the materials is constant, as long as we can keep the particles in suspension. However, if we have to cross rivers, mountains or valleys then the pipeline will be built on an angle and great consideration must be given to the design of the pipeline, transport velocities and starting and stopping the pipeline.”

Weir Minerals’ GEHO crankshaft driven pumps are among the world’s most advanced positive displacement pumps, according to Weir. They are designed to transport slurry over long distances, reaching up to 550 km and more than 2,000 m uphill.

Thissen says: “Our GEHO pumps are designed to handle high-density slurry with solids up to 85%. With extremely high availability, low energy consumption and operating costs they ensure uninterrupted, trouble-free operation.”

The diaphragm in the pump separates the abrasive slurry from the operating components, with the exception of the valves, protecting them from wear and ultimately prolonging the life of the pump, according to Weir.

“What this means for the operator is significant savings for wear parts, resulting in a very economic and extremely reliable product for pipeline transportation,” Weir said. “If maintained properly the GEHO pumps continue to run year after year, 24 hours a day; with references of GEHO pumps in operation for 30+ years.”

Thissen concluded: “As long as the make-up of the slurry doesn’t change and pumping conditions remain the same, our GEHO pumps will continue to operate indefinitely. Combined with long maintenance intervals and highly dedicated service engineers, they keep processing plants operating at peak performance while delivering a low total cost of ownership.”

Bis gets firm handle on GFG Alliance Whyalla contract

Bis says it will become the single materials handling contractor for GFG Alliance in Whyalla, South Australia, as of October 1.

As part of GFG Alliance’s strategy to maximise efficiency at its Whyalla-based operations ¬– incorporating its Liberty Primary Steel and SIMEC Mining businesses (which includes a 10 Mt iron ore mine in the Middleback Ranges of South Australia) – several materials-handling work packages were consolidated into a single contract to be operated by a single contractor partner.

The contract will see Bis deliver a range of site services to Whyalla including steel services, scrap processing and handling, slag processing and handling, and bulk materials handling.

The award comes as Bis celebrates 60 years in Whyalla this year, where it currently employs 170 people. Bis will bring on another 80 employees as part of the expanded scope of works.

Liberty Primary Steel Acting Executive Managing Director, Jason Schell, said: “GFG Alliance is looking forward to partnering with Bis to help drive our continuous-improvement culture and turn our business around for a sustainable, long-term future.

“This consolidated contract will result in significant cost savings for our business, while providing greater opportunities to optimise Bis’ assets and workforce across multiple work-fronts.”

Bis Chief Executive Officer, Brad Rogers, said the announcement showed the strength of the company’s relationship with GFG Alliance, as well as Bis’ track record of safely and reliably delivering flexible, efficient solutions for its customers.

Hadyn Shepherd, Bis General Manager Mining Services South East, meanwhile, said the win was great recognition for Bis and the team in Whyalla.

Mine sites testing out CSIRO, Mining3’s precision mining concept

CSIRO and Mining3’s wide-ranging precision mining concept looks to be gaining momentum with multiple mining companies testing out aspects of this innovative notion to reduce the footprint of future mine sites.

Among the headlines from the organisations’ latest report on this technology was its ore sorting technology, NextOre, has three trials underway at mine sites, with up to three more systems to be delivered this year.

A Chilean copper mine is testing up to 10 types of sensors, complementing other recent trials in Australia and CSIRO desktop studies. Another study found that a mining company could make the same profit as it is now, but with a 30% reduction in capital and operating costs.

In this pursuit, the mining industry can learn a lot from medical science, according to CSIRO Research Director in Precision Mining and Mining3 Research Leader, Ewan Sellers.

As the CSIRO rock mechanics specialist says, modern medicine has used technology to better understand and treat illnesses and injuries while reducing the impact on people. Sellers is now working towards creating low impact “zero entry mines”.

CSIRO explains: “Precision mining is the industry’s version of keyhole surgery. Once a deposit is discovered, precision mining aims to target the ore and extract the deposit as economically and sustainably as possible.”

CSIRO and Mining3’s shared vision is for mines of the future to be mostly underground, remotely operated by robotics, with minimal or remote offices and a very small environmental footprint. All waste would be used to make other products.

Sellers believes this vision could become a reality for most mines within 20 years, as vast mining operations that leave large scars are consigned to history.

Minerals 4D

Key to enabling precision mining is a concept CSIRO is leading called Minerals 4D.

Minerals 4D ‘intelligence’ aims to image minerals in the subsurface and predict their distribution. By integrating sensors and specialised imaging techniques tied with data analysis and machine learning, miners can better understand the orebody and quantify the rock mass at multiple scales.

Precise cutting, blasting and in-mine processing techniques can then accurately target the ore and leave the waste behind. Miners can focus on the most economic part of the deposit, reducing the need to move, crush and process massive amounts of rock, saving significant amounts of energy, water and waste.

CSIRO said: “Although information about the grade of the material and type of rock may currently be known over a block or at mine scale, Minerals 4D aims to add information about the mineralogy at a much smaller scale. This will enable companies to target the orebody and characterise the rock mass more accurately to increase efficiency at the processing plant.”

Rob Hough, the Science Director for CSIRO Mineral Resources, says Minerals 4D is about adding a time series to three-dimensional (3D) data. Essentially, it’s about tracking mineralogy over time.

The mining industry is now capable, through its geophysical sensing technology, to create extremely accurate 3D spatial models of orebodies, but 4D adds in the critical time element – tracking that mineralogy through the metal production line as if it were a barcode in a manufacturing circuit.

The concept involves linking modular mining operations to sensors – including fibre optics and systems attached to robots – to precisely characterise material in the subsurface before mining, through to a mine face, bench, conveyor, stockpile, truck, train or a ship.

Then you can measure the chemistry, mineralogy and rock structures at a range of scales, and provide unprecedented detail and volumes of data that capture ore and waste variability. Measuring the mineralogy is critical to understanding the quality, so where the value is created and lost.

This is like the artificial intelligence algorithms that companies such as Petra Data Science are developing to track ore from the pit to the processing plant.

A focus on value, rather than volume, means less waste and emissions in this context.

“If you have the knowledge of what you’re dealing with in a 3D picture you can then start to make predictions as to how minerals will perform when you go to mine, through to process and beneficiation,” Hough says.

“Operators can choose one set of mining or processing systems over another, knowing the texture and hardness of a material. We need to understand what is in the rock mass in terms of the minerals, but also how hard it is, its strength and how it breaks up to best separate the ore from the waste rock.”

Drone-deployed sensors

It is now possible to produce a detailed face map of a mine, fly a drone with spectral sensors to image surface mineralogy and use data analytics to identify correlations between ore types and rock strength. X-ray diffraction is also being used for analysis. These instruments are applied to samples in the field, drill holes and at bespoke laboratories that run thousands of samples at a low cost in order to build a 3D mineralogy model.

“We have a range of sensors available, but we don’t yet have a fully ‘sensed’ mine,” Hough adds.

“What we’re missing is all sensors in place, in a given operation. We’re also missing the assembling of data to inform decision making throughout the process as it happens – we need that information conveyed in real time and viewed in our remote operations centres.”

Advanced sensor-based ore-sorting

CSIRO partnered with RFC Ambrian and Advisian Digital to launch joint venture, NextOre, to deliver a sensor that intelligently directs a conveyor – sorting valuable ore from waste. CSIRO said NextOre has three trials of the sensor system underway at mine sites, with up to three more systems to be delivered this year.

“On the back of better data, we should be able to take advantage of applied mathematics that will then allow us to move to artificial intelligence and machine learning,” Hough says. “I can see a real-time conveyor belt start making automatic decisions about what is coming down the line. It’s the ultimate sensing and sorting solution.”

Reducing energy and water use

Sellers believes a move to precision mining can improve the conditions for communities living nearby mines, and even improve the social acceptance of mining.

He said several companies are testing out the value cases of sensors and data integration, and he understands they need to see proof that precision mining works on the ground. The economic benefits of sensing were demonstrated recently at a Western Australia iron ore mine, where A$25 million ($17 million) of additional resources were discovered using data provided by a relatively inexpensive hyperspectral sensor, according to CSIRO.

A Chilean copper mine is testing up to 10 types of sensors, complementing other recent trials in Australia and CSIRO desktop studies, it said. Another study found a mining company could make the same profit as it is now, but with a 30% reduction in capital and operating costs.

“Once miners gain confidence that we can actually do this, I think it will take off very quickly,” he says.

Precision mineral exploration and discovery

Beyond the mine itself, tracking minerals over time – in 4D – will also benefit greenfields exploration upstream.

According to CSIRO Digital Expert, Ryan Fraser, implementing the Minerals 4D concept is at its most challenging at the exploration and discovery stage – the point where data are sparse, and little is known about a potential target orebody.

“For example, we know a lot about a deposit such as Mount Isa, including how it forms. So, can we use the intelligence we have of that mineral system to foresee where the next Mount Isa will be?” he asks.

Fraser says if we understand how mineralogy evolves over time and the overall geological process, we can then look for signatures across the Australian landscape that help to identify similar things.

“Normally you drill in these spots, take back samples, check data and then in about two years you might have some idea of what’s under the surface and have some idea of mineral boundaries.”

The new sampling techniques will be far quicker and more efficient, he says.

“Instead of sampling a sparse, evenly spaced grid, we use machine learning to reduce uncertainties and guide where to sample and that will enable us to do much smarter edge detection of mineral boundaries,” Fraser explains.

Already this kind of predictive work has been tested in a project for the South Australian (SA) government at Coompana in SA with surprisingly accurate results and significant cost savings over traditional methods, according to CSIRO.

Other key challenges that researchers and the industry are working to address to make this a reality, include designing and developing sensors robust enough to work effectively in the mining environment (for example, in robotic cutting machines) and across rock types, and understanding which sites in the mine process are most suitable for sensors.

CSIRO concluded: “These sensors will be linked to precise and automated drilling, cutting and blasting technologies under development through Mining3 to transform the way that mining is performed.”

GR Engineering back for Boss Resources Honeymoon uranium project DFS

Boss Resources says it has appointed GR Engineering Services Limited (GRES) as the engineering and lead study consultant for its Honeymoon uranium project definitive feasibility study (DFS).

GRES will quickly ramp up the DFS work programs, due to the significant package of advanced technical work Boss has completed since it obtained the Honeymoon uranium project in South Australia from Uranium One (Australia) in December 2015 and, specifically, since the completion of the prefeasibility study in 2017, Boss said.

Honeymoon is a former-operating mine fully permitted to produce 3.2 MIb/y of uranium for export (one of only four mines in Australia). Based on previous studies, it is expected to require $58 million to ramp up output to 2 Mlb/y, according to Boss. It comes with a 63.3 MIb U3O8 JORC resource.

Work completed to date at Honeymoon includes:

  • A scoping study in 2016 for the recommissioning and expansion of the Honeymoon project;
  • Prefeasibility Study in 2017 that further refined the proposed strategy;
  • Field leach trial (FLT) that demonstrated Boss Resources’ improved leaching approach and validated its proposed ion exchange (IX) process;
  • Test work that optimised the process through improved resin elution and precipitation optionality
  • Trade-off studies that identified the preferred IX equipment (NIMCIX selected) and further optimised the flowsheet by simplifying the process steps;
  • An assessment of the drying and packing facility to provide upgrade options available to Boss to meet the planned production profile, and;
  • A preliminary assessment of the work required for the existing plant and infrastructure to meet operation requirements of Stage 1 production.

The DFS is due for completion in November 2019, according to Boss.

Boss Resources Managing Director, Duncan Craib, said: “GRES is a leading engineering and consultancy firm that has delivered multiple mining projects of significant size and scale, both domestically and overseas.”

The appointment continues Boss’ relationship with GRES, which completed the Honeymoon scoping study in September 2016 and the prefeasibility study in May 2017.

The scope for the DFS is based on two stages. Stage 1 includes re-commissioning of the existing SX facility and infrastructure including the various modifications required to improve performance, rectify problems identified during previous operations and make preparation for Stage 2 expansion.

Stage 2 includes supplementing the existing SX facility using a parallel IX process along with the expanded yellowcake drying and packaging capacity and modified raffinate/ground water treatment plant all to produce 2 Mlb/y of U3O8 equivalent.

The company said: “Boss will produce a combined DFS for the Stage 1 – Recommissioning, and Stage 2 – IX upgrade to achieve 2Mlb per annum U308. The DFS will improve on the work done in the prefeasibility study and deliver a Class 3 cost estimate with appropriate detail to achieve an accuracy of ±15%.”

The DFS will report on the design of the leach patterns for the wellfields and associated production scheduling based on these patterns and summarise the test work carried out to date, Boss added. It will also provide updated mineral resource and report on progress made against the updated permits.

The preliminary schedule for the DFS indicates wellfield design will be completed by the end of July, with ion exchange and uranium precipitation piloting due to be finalised by the end of August. Stage 1 reporting is due to be completed at the end of September, followed by Stage 2 at the end of October and the final report by mid-November.