Tag Archives: Western Australia

Technology Metals Australia shores up gas supply for Gabanintha vanadium project

Technology Metals Australia (TMT) says it has entered into a non-binding Memorandum of Understanding (MoU) with APA Group under which TMT and APA have agreed to investigate the provision of gas transportation services along a new gas pipeline to be developed by APA from the south to supply gas to the Gabanintha vanadium project, in Western Australia.

In return, TMT would enter a take or pay tariff over an agreed period linked to the life of the project.

The proposed new pipeline is shorter than the gas pipeline contemplated in the Gabanintha definitive feasibility study (DFS) and is, therefore, expected to deliver material operating cost savings from lower gas transportation charges than those included in the study, the company said.

TMT and APA have agreed to an exclusivity period on negotiation of the gas transportation services for the term of the MoU during which they will negotiate and endeavour to agree the transaction documents.

TMT Managing Director, Ian Prentice, said: “We are very pleased to have entered into this agreement with APA on the development of a proposed new gas pipeline; providing low risk delivery of gas to the project, cost reductions compared to the DFS as well as the opportunity to source gas from the significantly closer emerging Perth basin gas fields.

“APA is a leading Australian energy infrastructure business with 20 years’ experience in building, owning and operating gas pipelines. We will be working together to develop a reliable energy solution for the Gabanintha vanadium project. This represents another key milestone as we progress the development of this lowest cost quartile, large scale, long-life world-class vanadium project.”

The DFS for the Gabanintha vanadium project proposes using natural gas as the heating energy in the roasting kiln and other parts of the process circuit and for electricity generation. The project’s expected maximum and average daily consumption of natural gas is 10.67 Tj and 6.28 Tj, respectively.

The location of proposed new pipeline, which is designed to come from a point to the east of Mt Magnet and extend around 152 km north to the project, is expected to enhance the opportunity for TMT to secure cost competitive gas supply from the rapidly emerging Perth Basin, with potential to further reduce gas transportation charges for the project, the company said.

The Gabanintha DFS outlined an operation with a 16-year-plus mine life, operating at an average vanadium pentoxide production rate of 27.9 MIb/y. This came with a pre-production capital cost of $318 million and operating costs of $4.04/Ib of V2O5.

NRW Holdings to keep mining Gascoyne’s Dalgaranga gold project

NRW Holdings says it has reached agreements with Gascoyne Resources to keep providing services at the Dalgaranga gold mine, in Western Australia, following the ASX-listed miner’s successful A$125 million ($89 million) recapitalisation process.

NRW has agreed binding terms with Gascoyne for an extension of both mining and drill & blast services for the full life of mine at Dalgaranga, which increases the overall contract value by circa-A$180 million.

In terms of the recovery of all pre-administration debts owed to NRW, it has received A$7 million in cash, as foreshadowed in Gascoyne’s recapitalisation agreement, and received 24 million Gascoyne shares (post-consolidation) valued at A$12 million at the issue price of Gascoyne’s A$85.2 million equity raising. NRW will also receive a further A$13.7 million linked to ounces produced at Dalgaranga and the gold price.

In addition to this, NRW also exercised its rights as part of the Gascoyne Entitlement Offer and now holds, in total, 36.9 million shares in the gold miner (post-consolidation).

Commenting on the work undertaken with Gascoyne and FTI as administrators, Andrew Walsh, NRW’s CFO, noted: “We have worked closely with the teams in both Gascoyne and FTI to support the recapitalisation plan recognising that a viable Dalgaranga project was critical to the success of that process. Output from the project has been consistently above 6,000 oz/mth for most of this year which has provided the basis for a great solution for both Gascoyne and NRW.

“Recent announcements on potential additional resources will provide opportunities for NRW to provide additional services beyond the current life of mine plan.”

RUC Mining, Barminco keep Panoramic’s Savannah nickel restart plan on track

Panoramic Resources says underground development at the Savannah nickel project in Western Australia is moving ahead as planned, with both its raisebore contractor and contract miner striving towards the ASX-listed company’s first half 2021 restart goal.

In a progress update, the company said mining contractor, Barminco, had completed the 468 m horizontal underground development drive, connecting with the vertical ventilation shaft to complete Fresh Air Raise (FAR #3) development at Savannah North, in late September.

Since then, specialist raiseboring contractor, RUC Mining, has been setting up the raisebore rig on the surface and installing the reamer head at the 1675 RL, which was developed to intersect into the existing FAR #3 raise.

“This complicated and critical task was completed safely and efficiently as planned,” Panoramic said on October 19. “RUC is tasked with the FAR #3 back-reaming, which commenced over the weekend and expected to be completed in the March 2021 quarter.”

A total of 354 m will be back reamed at a diameter of 3.85 m, according to the company. This is planned to provide sufficient ventilation to support future full-scale mining operations from Savannah North in line with the Mine Plan released in late July.

Managing Director and CEO, Victor Rajasooriar, said: “We now have a firm foundation to recommence underground pre-production development next month, to complete ventilation works for Savannah North and complete areas of capital development to lay further groundwork for a potential restart of operations. This work will be concluded towards the end of the March quarter 2021 and we expect to be in a position where the project is capable of being restarted in the first half of 2021.”

The Savannah Mine Plan outlined a mine life of around 13 years, with the majority of ore sourced from the Savannah North orebody. Average annual production for years 1-12 would be 8,810 t of nickel, 4, 579 t of copper and 659 t of cobalt in concentrate, with all-in costs for these years of $5.27/lb of payable nickel, net of copper and cobalt by-product credits.

MACA to get mining Fenix Resources’ Iron Ridge project

Fenix Resources has awarded the drill & blast, mining, and crushing & screening contract for its Iron Ridge project, in Western Australia, to MACA Ltd.

MACA is a reputable contractor with a strong track record of operational experience in the mining sector and has been involved in the Australia iron ore industry having carried out long-term works for Atlas Iron Ltd and Crossland Resources, Fenix said.

Early stage works commenced last month through local contractors, with MACA currently mobilising heavy earthmoving equipment to site.

Open-pit mining and crushing and screening operations are due to commence in the current quarter.

MACA said the contract is expected to generate around A$185 million ($131 million) in revenue for it over the 75-month term.

Fenix Managing Director, Rob Brierley, said: “We having been interacting with MACA on all aspects associated with the Iron Ridge project for well over a year now, and we are pleased that this relationship will continue as we transition to production in the near-term.

“MACA has vast experience in all aspects of iron ore mining operations and has essentially offered Fenix a one-stop shop for all our service requirements leading up to the transport of the ore from site to the port of Geraldton.”

The terms of the contract are in line with the company’s feasibility study, announced on November 4, 2019, which outlined that circa-8 million tonnes of high-grade hematite grading some 64% Fe will be extracted over a 6.5 year life of mine.

This same study assumed a single open-pit operation using conventional excavator‐truck mining fleet, adopting 10 m benches and mining these benches in three flitches. Ore and waste would be hauled to the run of mine pad and waste dump, respectively, by a fleet of 100 t haul trucks, while drill and blast will be conducted using a top hammer drill rig and ANFO or heavy ANFO explosives.

Pit N Portal enters open-pit mining services space with Red 5 Great Western contract

Red 5 Ltd has reported an updated resource and maiden reserve estimate for the Great Western gold deposit in Western Australia, at the same time as confirming Pit N Portal, a division of Emeco, will contract mine the open-pit asset.

A satellite deposit located around 55 kms from Red 5’s Darlot gold mine and processing facility, Great Western now comes with a measured, indicated and inferred resource of 870,000 t grading 2.5 g/t Au for 70,300 oz of contained gold. The maiden proven and probable reserve totals 437,500 t at 2.5g/t Au for 35,424 oz of contained gold.

Based on a proposed mining rate of between 30,000-40,000 t/mth of ore, the open pit is expected to be completed over a period of around 13 months, with plans to then access the underground orebody via a portal at the base of the pit, Red 5 says.

The company expects to commence open-pit mining in January with Pit N Portal, with ore from the open-pit operation processed at the existing 830,000 t/y gravity and carbon-in-leach Darlot processing facility (pictured).

Red 5 says studies are already underway for the commencement of underground mining following completion of the open pit.

Steve Versteegen, CEO of Pit n Portal, said: “We are thrilled to be continuing our partnership with Red 5 on this project, and also entering the open-cut mining services space with a long-term customer.

“This project allows Pit N Portal to perform the open-cut operations for Darlot gold mine and provides an opportunity for Pit N Portal to continue with Red 5 when it reviews the potential for an underground option accessed via a portal at the base of the pit.”

GR Engineering to refurbish Nullagine gold mill in Western Australia

GR Engineering Services has been awarded a contract for the engineering, procurement and construction works associated with the Nullagine Mill Refurbishment project, in Western Australia.

The contract, awarded by Millennium Minerals Ltd, a subsidiary of Novo Resources Corp, is worth A$8.3 million ($5.9 million) and will be undertaken on a reimbursable cost basis, GR Engineering said.

Millennium’s mine and processing plant were shut down in December 2019 and Novo is planning to restart the processing plant in early 2021. The scope of works includes the refurbishment and upgrade of the gravity circuit and associated facilities to enable operations to recommence.

Novo said: “GR Engineering Services are synonymous with gold plant construction and refurbishment throughout Australia and were selected based upon their experience and capacity to undertake these works safely, efficiently and cost effectively.”

GR Engineering’s Managing Director, Geoff Jones, said: “GR Engineering is pleased to have been awarded the contract for the Nullagine Mill Refurbishment project. We are looking forward to working with the Novo management team to successfully and safely deliver this project.”

MICROMINE makes a software splash at Diggers & Dealers

With Western Australia one of MICROMINE’s key markets for its Micromine and Pitram products, it is hardly surprising the software leader chose this week’s Diggers & Dealers Mining Forum in Kalgoorlie to reveal a host of new updates for the 3D modelling and mine design/mine production and fleet tracking solutions.

Across the company’s product suite, MICROMINE has been readily engaging with customers throughout the world, with users providing feedback to form its product roadmaps.

One of the results of this consultation process is a move to a six-monthly release cycle to enable its software to grow and adapt with clients’ operations.

Another is providing networking options to expand usage of its software across a wider number of users – the free Micromine Effects reader enabling anyone to view, share and interrogate Micromine output files without needing access to a full software licence.

“We’ve also introduced subscription offerings which our customers have quickly adopted because they provide a flexible and scalable option for large teams to access more functionality across our product suite, with less upfront cost compared to the traditional perpetual model,” Adam Brew, MICROMINE Australia Manager, told IM.

Shifting any capex item to the opex column is bound to go down well with the mining community, as MICROMINE has shown.

Having occurred in August 2019, the move led to almost nine months straight of subscription-only sales, according to Brew. “It surpassed our expectations,” he said. “The ability to have a subscription model allowed us to then launch the Free April campaign.”

The “Free April” campaign – which saw MICROMINE offer miners complimentary access to its general mining Micromine package during April as COVID-19 started to bite – led to around 4,000 new people interacting with the software, according to Brew.

MICROMINE has been busy on updates during the pandemic, but it has also delivered its first fully remote implementation of Pitram at a mine operation in Greece, leveraging the experience from its global Pitram support desk to fully deploy a Pitram FMS and Material Management solution.

This Greek project is well advanced with Pitram playing a crucial role in a major refurbishment and expansion of existing operations. The solution at the mine is aimed at helping improve development and production mining cycles; accurately track materials from source to processing; provide Online Analytical Processing reporting and analysis; enhance reactions to, and minimise the impact of, unplanned events; and increase equipment availability and utilisation.

Yet, those attending the MICROMINE booth at Diggers & Dealers this week will have even more to talk about.

Something new

“Micromine 2021 is scheduled for release later this year and attendees of Diggers and Dealers will be the first to get a pre-release reveal of our flagship software offering,” Brew said.

Australia, in particular, has bucked global trends in terms of exploration expenditure, and the Micromine value proposition has been central to the company capitalising on this resurgence in exploration activities, according to Brew.

It is no wonder then that the company has put significant efforts into updating its flagship product.

“The first thing clients will notice is a completely redesigned user interface that provides easier access to the critical functions of the software, transforming the whole user experience with responsive design and efficient workflows,” Brew said.

Delivering this transformation has been a focal point for the business for more than a year, according to Brew, with developers reviewing customer requests most commonly received from the support team, analysing how users work with the array of Micromine functionality, and modelling interface scenarios to optimise the presentation of key functions within the software.

“By providing easier access to these functions and a smart interface that responds contextually, Micromine 2021 anticipates and supports workflows in a genuinely intuitive way,” Brew said.

The Micromine update has more than a new look.

It also includes new tools for importing and working with as-drilled drill-hole data, Brew explains.

These provide faster and more intuitive control over underground ring drill and blast design – also a focus of the earlier Micromine 2020.5 update – enabling designs to quickly adapt to changes in the field, identifying drilling inefficiencies and improving design protocols.

“We are also introducing intuitive tools that mirror the terrain of a blast face and speed up the process of creating blast-hole patterns within the bounds of the dig block,” Brew said. “Users will be able to accommodate polygons/blast masters of varying shapes, reducing the need for manual adjustment.”

The new grade control capabilities in Micromine 2021 provide dynamic updating of grade control reports to enable faster design preparation and reserve evaluation, according to Brew. This can allow miners to explore variations in dig block configuration and evaluate the ramifications of design changes on the grade – a function bound to appeal to opex-focused companies mining complex orebodies.

An integrated scheduler, meanwhile, enables planners to build and visualise an optimised schedule through configurable templates, scripting capabilities and scenarios built from real-world constraints, Brew said.

While the new and intuitive interface is likely to capture the immediate attention of users, MICROMINE has evidently not scrimped on updated and upgraded features.

Getting to the core

With the release of Pitram 4.17 earlier this year, there were improvements to the Materials Movement and Shift Planner modules, but Pitram 5, to be released later this year, goes above and beyond that.

“Stockpile management is now part of your end-to-end process and not managed as isolated assets within Pitram,” Brew says of Pitram 5. Geologists can work with data up- and down-stream to manage and react to material mismatches. Such data validation and accuracy is key to the value proposition Pitram drives in MICROMINE’s global implementations, according to Brew.

“Pitram is at the core of any mining operations ecosystem,” he said. “Our ability to accurately track Last Source, Destination Moved, Quantity and Grade as well as set individual depletion models across the various stockpiles across the mine, makes it a more flexible offering while maintaining data integrity.”

This near real-time tracking ability has previously failed on occasion from connectivity issues.

Not anymore.

“Pitram 5 is a huge leap forward in how we deploy our solution from a connectivity point of view,” Brew said. “Many of the mines we work with have limited or varying degrees of underground Wi-Fi and communications available. Our Peer to Peer solution bridges the gap where communication back to the server is not available at the face, for example.”

The Peer to Peer software can be installed on light vehicles which move around the mine encountering heavy equipment and collecting data in areas of no network coverage before moving back to a Wi-Fi-enabled area to sync the data back to the main server and into the control room. This allows miners developing new areas of their operation to keep up the communications flow without the need to immediately install or expand a communication network.

Such a solution has been successfully deployed at several sites globally, with Independence Group’s Nova nickel operation, in Western Australia, being the company’s reference site.

“Additionally, we have driven more R&D in how we can better leverage our Pitram Restful Integration Service (PRIS) to communicate shift planning data back to the shift bosses and mine managers in near real time,” Brew said.

The free Pitram Connect application, downloadable from the Apple or Google Play store, will show users real-time shift data as well as give them the ability to make updates to the shift, such as equipment or location allocations.

“Our ability to deliver on short interval control is a common requirement we are measured against and providing this planner to key users underground unlocks considerable value for an operation,” Brew said.

Pitram 5’s machine-learning update in the 2021 release leverages the company’s learnings from earlier deployments at some Central Asia mines.

“Utilising the processes of computer vision and deep machine learning, on-board cameras are placed on loaders to track variables such as loading time, hauling time, dumping time and travelling empty time,” he said. “The video feed is processed on the Pitram vehicle computer edge device, with the extracted information then transferred to Pitram servers for processing.”

Reflecting on the product updates and more than six months of pandemic-affected upheaval, Brew concluded: “Our business is extremely fortunate to have powered on through the COVID-19 pandemic, and we’ve worked hard to maintain our renowned ability to work, support and deploy our solutions remotely.

Diggers & Dealers is the pre-eminent event for the Australian region of our business, with representation from all our customers, so it represents a fantastic opportunity to show how we continue to drive value to our existing customer base as well as connect with new customers.”

Central Systems secures $41 million Fortescue Solomon contract

Resource Development Group’s Central Systems subsidiary has been awarded a contract to design and construct the central facilities at the Fortescue Metals Group’s Solomon mine site in the Pilbara of Western Australia.

The contract with FMG Solomon Pty Ltd has a value of approximately A$57.5 million ($41.3 million) and is due for completion in June 2021.

Fortescue’s Solomon Hub is in the Hamersley Ranges and comprises the Firetail and Kings Valley mines, which together have a production capacity of 75 Mt/y. At the hub, higher iron grade, low cost Firetail ore is blended with low phosphorous Chichester ore to create the company’s Fortescue Blend.

RDG also advises that its 80%‐owned subsidiary, Crushing Service Solutions (CSS), recently demobilised from the Minjar gold plant near Southern Cross, Western Australia, as a result of early contract termination with Tianye SXO Gold Mining.

In the company’s recent annual financial report, it said it was in the process of reviewing the operations of CSS as it seeks to determine its future direction to ensure profitability.

SRG Global bolsters South32 relationship with more Worsley Alumina work

SRG Global says it has secured a long-term circa-A$100 million ($72 million) contract with South32’s Worsley Alumina operations to provide specialist refractory services, including gunning and casting and installation of refractory products and anchors.

Works under the contract will commence in October 2020 with a duration of eight years.

South32 has also extended SRG Global’s existing engineered access services contract for a further two years, pocketing the ASX-listed engineering firm another circa-A$25 million. This will see SRG Global continue to provide access services at South32’s Worsley Alumina operations until mid-2027, it said.

David Macgeorge, Managing Director of SRG Global, said: “These contracts are a terrific achievement for SRG Global and we are excited to be expanding our partnership with South32 to continue to deliver long-term value for their Worsley operations.”

As part of the Worsley Alumina operations, bauxite is mined near the town of Boddington, 130 km southeast of Perth, Western Australia. It is then transported on the largest overland conveyor belt in the southern hemisphere, for more than 50 km, to a refinery near the town of Collie, where bauxite is turned into alumina.

Primero, Mineral Technologies enlisted for Strandline’s Coburn mineral sands project

Primero Group has been awarded preferred EPC status on a substantial contract with Strandline Resources on the Coburn mineral sands project in Western Australia.

The total volume of awarded engineering procurement and construction (EPC) works totals around A$150 million ($107 million), according to Primero, and follows an initial eight-week Early Contractor Involvement (ECI) process that provided further definition of the delivery strategy and project deliverables between the groups. It also coincided with the appointment of Mineral Technologies (MT), a global services provider and leader in the design and supply of mineral sands processing facilities (and a subsidiary of Downer Group), as the strategic technology partner alongside Primero for the project delivery.

Strandline said the contract involved the engineering, procurement, construction, commissioning and performance testing of the Wet Concentration Plant (WCP), Mineral Separation Plant (MSP) and associated processing circuits at the operation.

The Coburn WCP is designed to beneficiate the heavy minerals (ilmenite, leucoxene, rutile, zircon and monazite) and reject the non-valuable, lighter minerals through multiple stages of high capacity gravity separation and classification, according to Strandline. The rich heavy mineral concentrate produced from the WCP will be transported to the MSP and stockpiled ready for processing.

“The WCP infrastructure is relocatable and is planned to be moved several times during the mine life as the mine advances along the orebody,” Strandline said. “The MSP design comprises conventional electrostatic separation, gravity and magnetic fractionation to recover a range of premium-quality final products, including chloride ilmenite, rutile, premium zircon and zircon concentrate.”

The full project award is subject to Strandline Resources approving a Final Investment Decision in the coming months, Primero said. The ECI process came after Strandline’s recent A$18.5 million equity raising.

Primero Managing Director and CEO, Cameron Henry, said: “This award is an excellent example of Primero’s ECI phase in action and adds to our growing book of projects in preferred contractor status. We have worked intensively with Strandline over the past two months in designing a delivery solution that best meets the key project objectives and value drivers, while also minimising execution risks.”

Strandline has also already appointed Piacentini & Son to design and construct three mobile dozer mining units for the project, while Macmahon has been named as the principal contractor to provide site-wide civil and bulk earthworks construction services for the project.