ABOUT EVEREST
The Everest Platinum Mine is Aquarius Platinum’s third operation in South Africa. The feasibility study for the project was upgraded to full bankable status in February 2003 and the project was awarded its mining licence in June 2003.
BACKGROUND
Construction of Everest started in October 2004 following the conclusion of a Black Economic Empowerment (BEE) transaction with a consortium led by Savannah Resources. This transaction injected some R860 million in cash into Aquarius Platinum South Africa. In November 2003, AQP(SA) acquired TKO Investments Holdings Limited (TKO), which holds significant surface and water rights on and around the Everest project. Primarily an agricultural business focusing on kiwi fruit farming, TKO is run as an independent self-sustaining entity. Since the business provides both permanent and seasonal employment within the project area, AQP(SA) intends using the business to create a sustainable farming enterprise that will co-exist with mining operations and contribute to the development of the community long after mining in the area ceases. Some of the surface rights within the project area are being transferred to the local Phetla community – the land’s historical owners – under a settlement reached with the land restitution authorities. In terms of this agreement, the land required for mining will be leased back to AQP(SA).
Further identification and implementation of social upliftment and sustainability-related projects is ongoing. Contractor recruitment of local labour, coordinated with the Department of Labour in nearby Lydenburg, is proving effective. Other projects include an Adult Basic Education and Training (ABET) course run twice-weekly and water supplies to a local primary school. Future projects, such as a day care facility and nutritional feeding scheme are also being considered.
LOCATION AND GEOLOGY
Located on the southern portion of the Eastern Limb of the Bushveld Complex near the town of Lydenburg, Everest is approximately 450 kilometres east-north-east of the company’s flagship operation, the Kroondal Platinum Mine. The orebody is a well-defined elongate basin-like structure of UG2 Reef lying beneath a hill and extending from surface to a depth of around 250 metres at the deepest point. The shallow nature of the orebody makes the development of Everest relatively cost-effective.
MINING AND PROCESSING
Rapid on-reef decline development of some 1,500m over the past year has led to significant increases in underground production. Stoping sections have also been established. The current open-pit reserve is scheduled to be mined out by October 2007, with mining increasingly focused on the underground operations. The average head grade achieved during FY2007 declined to 2.89g/t from 3.04g/t as a result of the decline in production from the open pit and the large proportion of development tons from underground. Recoveries increased as higher proportions of underground ore were supplied to the plant, this trend will continue as open-pit mining diminishes. The Everest expansion project has been achieved with significantly less capital expenditure than planned, and positive cash flows have been achieved from the start of production. |
