Name of the Project
Damang reinvestment plan.
Location
Ghana.
Client
Gold Fields.
Project Description
Since operations at Damang started in 1997, the mine has produced more than four-million ounces of gold, sourced from multiple openpits.
Production from the Damang Pit Cutback (DPCB) concluded in 2013, mining has since been focused on the margins of the Damang pit – the Huni, Juno and Saddle areas – as well as lower-grade satellite deposits.
The decline in production since 2013 has been exacerbated by variations in grade in the northern and southern extremities of the DPCB and the satellite pits where grades have been lower than expected.
The reinvestment plan will extend the life-of-mine (LoM) by eight years and involves a major cutback to the eastern and western walls of the DPCB, which will extend the LoM by eight years.
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 pit orebody, including the high-grade Tarkwa phyllite lithology.
To provide short-term ore supply while the Damang prestrip is in progress, mining will be undertaken at the Amoanda, and paleaoplacer satellite pits – Lima South, Kwesi Gap and Tomento East.
In addition, the plan feed will be supplemented by low-grade surface stockpiles.
Mining of the DPCB will be undertaken by two mining contractors.
An estimated 1.55-million ounces is expected to be mined over the eight-year LoM.
Inclusion of the Damang cutback has resulted in a 72% increase in proven and probable reserves, from those declared in December 2015, to 1.67-million ounces.
Jobs to Be Created
The project will preserve and create direct and indirect employment for about 1 850 people.
Net Present Value/Internal Rate of Return
The project has an internal rate of return of 28%, with a payback of 4.5 years.
Value
The project will cost an estimated $341-million in capital expenditure to implement.
Duration
Eight years.
Latest Developments
The two mining contractors have been mobilised and are on site.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
Gold Fields, Sven Lunsche, tel +27 11 562 9763 or email media@goldfields.com.