JOHANNESBURG (miningweekly.com) - Gold exploration company Witwatersrand Consolidated Gold Resources (Wits Gold) announced on Friday that it had completed a scoping study on its De Bron project in South Africa's Free State province.

The company said that it had received positive results from the study and that it considered two possible mine designs within the De Bron area, which contained three principal conglomerates.

The first design was a medium-sized 62 500-t/m operation with a conventional system of footwall haulages and box holes linked to raises.

The design was based on a selected on-site indicated resource of 8,7-million tons, at 6,4 g/t of gold. The design would exploit the higher-grade zones situated to the east of the De Bron fault.

It was anticipated that the mine would produce first gold 35-months after starting shaft sinking and would achieve peak production of 118 000 oz/y at a yield of 4,4g/t.

During its planned 16-year life-of-mine, D Bron would produce 1,4-million ounces of gold.

It was estimated that the development of the mine design would require about $356-million. Operating costs would include the recently announced Eskom tariff increases.

An alternative design for a possible future mine at De Bron, modelled a smaller high-grade operation with a throughput of 30 000 t/m.

The mine would be designed to exploit the higher-grade mineralisation in the northern sector of De Bron that contained an indicated resource of 4,6-million tons, at 7 g/t of gold.

It is envisaged that the mine design could produce its first gold 27-months after initiating shaft sinking using reef drives from the shaft position.

Peak production was estimated at around 53 500 oz/y, with total gold production during the 16-year life was anticipated to be 800 000 oz, while capital required was estimated at $224-million.

The company said that sensitivity analyses on both of the options illustrated strong gearing to changes in gold grade and price as well as an increase in the size of the shallow, high-grade resource.

Under these circumstances, additional drilling had been recommended, particularly in the high-grade area situated in the northern part of De Bron.

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