JOHANNESBURG (miningweekly.com) – Gold miner Central Rand Gold (CRG), which on Wednesday moved its listings from the main boards of the LSE and the JSE to the Aim and the AltX respectively, has raised $7.25-million through the issue of loan notes to Redstone Capital.

The proceeds from the transaction will be used to improve CRG’s milling and crushing circuits to increase overall plant capacity, reduce primary crushing costs and increase overall production.

CRG has already received the first $3.5-million tranche of the funds, which it set aside to finance the scheduled capacity and reliability upgrades to the existing metallurgical plant, as well as for general working capital purposes.

The second tranche of $3.75-million will be drawn down by October 31.

Through the planned upgrades, the metallurgical plant’s capacity would be increased to 25 000 t/m, which was in line with CRG’s current monthly surface and underground mining production.

During July and August, CRG’s combined underground and surface production amounted to 47 221 t for the two months, with blasted grades in excess of 3 g/t from the combined mining operation.

Planned milling and crushing upgrades included the procurement of a primary jaw crusher that, once installed, would have a crushing capacity in excess of 30 000 t/m. The use of this crusher was expected to reduce primary crushing costs from R24/t to an estimated R12/t.

CRG was also evaluating options for a secondary crusher with a nameplate capacity of 30 000 t/m to match the output of the primary jaw crusher; however, in the interim, a secondary gravatory cone crusher was being rented to further reduce the primary jaw product down to top size of 10 mm with up to 25% passing 75 µm, representing a much improved mill feedstock.

The company had also procured an additional 8 x 16 foot ball mill that would effectively increase milling capacity by 15 000 t/m. Once commissioned, CRG would have a milling capacity in excess of 25 000 t/m.

Further, CRG’s existing 9 x 12 foot ball mill was being upgraded to use the same type of drive train as the newly acquired ball mill, which would allow for a single set of critical spares to be used for both mills, thereby reducing overall critical spare inventory.

“The increased milling capacity and availability will lessen the reliance on external tolling, which will improve both revenue generation and operating margin,” CRG said. 

The mill was expected to be commissioned by the end of 2013.

Meanwhile, the increase in overall production that would be achieved as a result of the various upgrades would also require a capacity upgrade for the mine’s thickener and leach circuit to accommodate the additional ore tonnage, as well as an upgrade in the elution circuit to allow for the increase in gold production.

“These upgrades are in an advanced planning and execution phase and are expected to be completed in early 2014,” CRG said.

Meanwhile, the company also stated that the Ritz pumps that were contributed by CRG to the Central basin acid mine drainage project had arrived in South Africa and would be delivered to the site by September 20.

The pumps, which were acquired at a cost of €3.5-million, are capable of pumping 1 500 Kℓ/h of water at a 43 bar pump pressure differential, with a pump efficiency rate of 81%.