TORONTO (miningweekly.com) – The board of Southern Africa-focused gold producer Galane Gold has made a development decision for the first-phase restart of production at the Galaxy gold mine, in South Africa, up to a target of 60 000 oz/y, the company advised on Monday.
The TSX-V-listed miner, which operates the Mupane mine, in Botswana, said it would spend $2-million through a capital expenditure programme to restart production. The company expected that the first phase would take six months to complete and that it would be funded from internal cash flow.
Starting this month, the company would start refurbishing existing infrastructure and upgrading the processing facility to take production to 18 000 oz/y.
In particular, the company would focus on refurbishing the existing 15 000 t/m processing plant, which would include the installation of a new crusher, remedial work to the float section, a new gravity separation section and the re-establishment of the elution plant.
It would also include the construction of a new 25 000 t/m carbon in leach tailings retreatment plant within the current footprint of the existing processing plant; restarting underground mining at Woodbine, Agnes and Ivy on the seventeen-level using conventional shrink-stope mining; and starting tailings recovery by sluicing at the Woodbine and Hostel dumps.
Galane expected to produce gold at Galaxy at the end of the fourth quarter.
Toronto-based Galane’s TSX-V-listed stock on Monday jumped more than 32% to C$0.19 apiece after the news release.