Further to our earlier letters regarding our Gold Hill Mine in Tanzania where we suspended operations in June, I can now report progress this past month in multiple areas; we have completed our CIP Permitting, advanced our recently purchased plant disassembly for transport to the Gold Hill Mine site, began construction of our new CIP Plant at Gold Hill, continue to expand infrastructure at both of our 2 Camps, (residence and work camps) and completed the next phase expansion of our alluvial gold production equipment. We also delivered a very well received Football Tournament for the Community, 3rd year running which expanded to 6 village teams and on a personal note, I worked through the Christmas and New Year’s holidays in Camp to give our Managers and Staff some much needed family time.
Important milestones were achieved with having applied for and receiving our Environmental Permit as well as our Water Usage Permit and Construction Permits which included surveying which has laid out the Plant structures. Construction began on the large tanks for the first phase of CIP processing operations. A setback occurred when we were notified that key mixing equipment components from South Africa which were to be ready mid-January would not be delivered until mid-March, delaying our new Plant opening by about 6 weeks. Repeating what was disclosed in December, to give you an idea of scale, the tank farm will grow from 6 tanks in January to 35 tanks by mid 2019. The tailings pond facility alone is 3 football fields long and 2 football fields wide.
Disassembly of the large Plant that was purchased in early December in the south of the country nears completion. The equipment will be loaded onto highway trucks and moved 94 km over a dirt road to an all- weather road and once there continues a 3 to 4-day journey to the Gold Hill Mine. However, transport of key components including ball mills, power plant and pumps were delayed due to unusually heavy rains necessitated the construction of a 3.5 km bypass road to avoid a low-lying section of the 94 km road. We anticipate being able to move a large crane to the Plant site as soon as the bypass road is complete in the next 10 days and we can begin loading and transporting our equipment.
Alluvial Processing Plant
The expansion of our Alluvial Processing Plant encountered some delays as we devoted resources to the CIP Plant both in construction at the Gold Hill Mine and disassembly of the Plant in the south. We have just completed the Alluvial Plant fabrication and began testing the new equipment early this month and have just begun full day production. We have installed additional power and lighting and expect to begin round the clock processing before the end of the month.
As I have said earlier “Our Mine has been growing as we develop it. To international standards, we have immediate mineable proven reserves of over 200,000 ounces (6,500 kg) having a value greater than US$200,000,000. Continued mine development accesses additional gold reserves which will be supported through our impeding project financing.”
As we restart mining operations, I will update you when we will restart gold deliveries. The rain and equipment delivery delays have added another 6 to 8 weeks to our delivery projections and we will attempt to deliver 15 kg per month to restart.
These developments and progress meet our goal of large increases in our production so that we can reduce our delivery delays.
This is our current status as of mid-January and I will update further next month.
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