Mupane Ore Sources
Mupane Gold is currently feeding the gold processing plant from the following ore sources.
As part of our strategy of low-risk brownfield expansion we have pursued underground mining at the previously mined Tau open pit. Mining at Tau Underground commenced in mid-2014 and we have produced a mine plan based on the reported resource, to produce ~75,000 oz Au.
Screened Low Grade Stockpile
There are 702,259 tonnes of low grade stockpiles at average grade 0.97 g/t located at the ROM Pad. We are screening the ore using a 40mm screen deck which is expected to increase 38% of the stockpile grade by 65% and the upgraded ore reports to the processing plant for production. The process is expected to produce an additional 266,858 tonnes of ore at an average grade of 1.60 g/t.
The screened material is expected to have a recovery rate of 83% and as it is predominately oxide in nature. The milling rate is expected to increase by 20% due to the size and nature of the material. The direct operating cost per ounce is forecast to be in the range of $600 to $700. We are reviewing a further 1.4 million tonnes of low grade stockpiles not previously reported, to ascertain if they can also be treated in the same way.
The Tekwane prospect features an indicated resources of 12,735 oz. Au and an inferred Resource of 11,443 oz. Au. Tekwane is an oxide, free gold, near -surface deposit within the rubble horizon of the soil bed. Galane Gold is planning to strip-mine the gold bearing rubble horizon and process the gold using conventional crusher and milling circuit with gravity separation.
The Company has been granted a mining license and is aiming to begin mining at Tekwane in July of 2015. Management estimates $600,000 of capital expenditure will be required to commence production.
Operating cash costs for the project are forecast to be $315-$375 per ounce(inclusive of royalties).