Name of the Project
Damang mine reinvestment plan.

Location
Ghana

Client
Gold Fields.

Project Description
The project will extend the life of the Damang mine from 2017 to 2024.

The reinvestment plan entails a major cutback to the eastern and western wall of the Damang pit cutback (DPCB).

The cutback will be 341 m deep, comprising a 265 m prestrip to access the base of the existing pit. This will be followed by a deepening of the pit by a further 76 m, which will provide access to the full Damang orebody, including the high-grade Tarkwa phyllite lithology.

While the Damang prestrip is in progress, mining will continue at the Amoanda, and paleaoplacer satellite pits (Lima South, Kwesi Gap and Tomento East) to provide short-term ore supply. In addition, the plant feed will be supplemented by low-grade surface stockpiles.

Inclusion of the Damang cutback will result in a 72% increase in proven and probable reserves to 31.5-million tonnes grading 1.65g/t.

A total of 165-million tonnes will be mined over a seven-year period, with the majority of material coming from the Damang complex (DCPB/Saddle). Of this, 32-million tonnes will be processed at a grade of 1.65g/t, resulting in 1.56-million ounces of gold production.

The reinvestment plan also includes the construction of the Far East Tailings Storage Facility (FETSF), as the existing tailings storage facility (TSF) is approaching full capacity.

Jobs to be Created
The project will result in the creation and preservation of 1 850 direct jobs.

Net Present Value/Internal Rate of Return
Not stated.

Value
$1.4-billion in operating and capital expenditure will be spent over the life-of-mine.

Duration
Not stated.

Latest Developments
Negotiations with the contract miners are currently at an advanced stage

The contractors are expected to be mobilised in early 2017.

An interim 2.5 m raise has started on the TSF, which will provide for an additional 3.6-million-tonne tailings capacity and is scheduled for completion by the end of November.

Stage 1 of the new FETSF is planned for completion by end-2017 and will provide 20-million tonnes of capacity. Further lifts of the FETSF will cater for all tailings for the new life-of-mine. Only minor capital work will be required on the Damang processing plant, mostly owing to replacement of the semiautogenous mill shell in 2018.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Gold Fields, tel +27 11 562 9763 or email media@goldfields.com.