Photo by: Sibanye-Stillwater
Name of the Project
Burnstone gold project.
Location
Balfour area, in Mpumalanga, South Africa.
Project Owner/s
Sibanye-Stillwater.
Project Description
The low-cost, extensively predeveloped gold asset was previously operated by Great Basin Gold.
The project has mineral reserves estimated at 20.6-million tonnes grading 3.9 g/t as at December 31, 2021.
Existing infrastructure includes a functional metallurgical facility; an established tailings storage facility; an equipped and functional decline shaft and trackless decline; surface infrastructure, such as offices, workshops and compressors; and extensive underground development and infrastructure.
The relatively shallow underground mining operation will mine the Kimberley reef to an average depth of about 550 m below surface (deepest 1.05 km).
The life-of-mine (LoM) is estimated at 22 years.
The project will produce about 138 000 oz/y of gold at steady state with an LoM to 2044.
Potential Job Creation
At the end of the first half of 2023, there were 740 people on site.
Net Present Value/Internal Rate of Return
The latest optimised project evaluation generates a 20% internal rate of return and a net present value of R1.3-billion at a gold price of R800 000/kg (2022 real terms).
Capital Expenditure
Total project capital of R2.8-billion (from 2021 onwards) and preproduction capital of R1.5-billion is forecast.
In Sibanye’s operating and financial results for the six months ended June 30, 2023, the company reported that capital guidance had been reduced from R1.95-billion for 2023 to R1.6-billion, with R819 million spent in the first half of 2023.
Planned Start/End Date
The timeline to steady-state production has been delayed from December 2025 to August 2026.
Latest Developments
The Burnstone project is 59% complete against a budget of 64%, as a result of industrial action during the first half of 2022 and a tragic incident in April 2023, which delayed the completion of the rock-handling system by about four months.
The mill refurbishment contract has been awarded and surface infrastructure is advancing.
Key Contracts, Suppliers and Consultants
Read, Swatman & Voigt, or RSV (engineering design team for the balance of the engineering design); DLC Town Plan (access surveying and registration of the new servitudes for the new access road to Burnstone); and DTS (appointed for the design change to remove the skips from the shaft using the rock winder bank area).
Contact Details for Project Information
Sibanye-Stillwater executive VP: investor relations James Wellsted, ir@sibanyestillwater.com.