JOHANNESBURG (miningweekly.com) – Platinum junior Anooraq Resources’ growth projects were on track to deliver 270 000 platinum group metal (PGM) ounces by 2014, president and CEO Philip Kotze said this week.

Kotze said that the size and scale of the recently acquired Bokoni orebody, along with its attractive grades and well-developed mine and support infrastructure, provided the company with a number of opportunities to increase production at shallow mining depths.

“The new Brakfontein mine on the Merensky Reef at Bokoni presents a significant ramp-up operation, and will play a key role in achieving our phase 1 growth milestone of 270 000 oz PGM by 2014.”

During the quarter ended September, Anooraq acquired an effective 51% holding in the Bokoni platinum mine, and a further 1% controlling interest in the Boikgantsho, Ga-Phasha, and Kwanda projects, for C$385-million.

As a result, Anooraq has emerged as a PGM-producing company controlling the third-largest PGM resource base in South Africa.

“Our focus at Bokoni is on both optimising the existing mine operations and developing new mines at Brakfontein and Middelpunt Hill, ensuring that Bokoni becomes a new-generation PGM producer with significant growth prospects,” said Kotze.

Another key part of Anooraq’s initial work at Bokoni has been to affect a cultural turn-around at the operation, Kotze said. A new management team has been appointed which has developed a production ramp-up plan, implemented disciplined operating cost controls and completed a review of capital costs.

“We are encouraged by the early gains achieved at the operations, which have resulted in a real decrease in unit costs, rationalisation of capital expenditures and identification of potential new sources of lower-cost ounces, such as those presented by the vamping opportunities at the Vertical and Middelpunt Hill shafts.”

Although much work remained to be done to fully embed the new culture of delivery, accountability and empowerment at Bokoni, Kotze noted that the company had made a good start in its first operating quarter.

Mill production at Bokoni was recorded at around 254 399 t, 15% higher when compared with the average quarterly performance for the first half year, mainly because of a 15% increase in tons broken.

This increase was largely owing to a more disciplined approach to the mining effort through new mine management initiatives.

A PGM head grade of 4,19 g/t was achieved for the quarter, and grade control was a key area of focus going forward, Anooraq stated.

Concentrator plant recoveries PGM, at 92% for Merensky and 89% for UG2, remained among the highest in the PGM industry. As the tons mined and milled increased, metal production, when compared to the first half year, also gained momentum.

Kotze noted that opportunities have been identified to add low-cost tons from vamping at Vertical and Middelpunt Hill shafts. It was estimated that production from vamping could be effected at about 30% of current unit operating costs.

Total development for the quarter was 2 374 m and on reef development was 1 253 m. During the quarter more focus was placed on redevelopment and sub-development in order to ensure increased immediately available reserves for mining.

Bokoni Mines remained in a high capital expenditure growth phase, as its production rates were being doubled over the next three years through the ramp-up of the new Brakfontein Merensky mine.

Capital expenditure for the quarter ended September was C$10,4-million, consisting of 23% sustaining capital and 77% project capital. Major project capital expenditures for the period relate directly to the Brakfontein mine build-up.

Anooraq stated that the Brakfontein mine decline shaft system continued to be developed and the mine currently produced at a rate of 11 000 t/m, building up towards its planned steady state production of 120 000 t/m by 2014.

During the quarter, a thorough review of planned capital expenditures was undertaken. Budgeted capital expenditures were reduced without compromising the planned production build-up.