Download - African Diamonds corporate presentation 2006
Presentation to Westwind Partners
Diamond Conference
An update on the African Diamonds /
De Beers JV in Boteti Exploration
(Botswana)
James AH CampbellB.Sc. (Hons) ARSM MBA (Dunelm) Dipl Datm (UNISA) MIMMM C.Eng C.Sci Pr.Sci.Nat
General Manager – Group Exploration
12th May 2006
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Agenda
AK6 Location
Update on the AK06 resource delivery project
Update on the mine delivery programme
Immediate next steps
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Locality Map
JV Ground
DAMTSHAA
Update on the AK06 Resource
Delivery Project
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Deposit level assessment
Boteti JV (DB 51%, AD 49%)
De Beers is the Operator and can earn up to 70%
by delivering the first bankable feasibility study
Surface area: 9.5Ha
Volume: 59M tons
Grade: 25cpht
Value: $138/ct (+1mm)
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Programme Schedule & Budget
AK6 Resource
Delivery Project,
Conceptual & Pre-feas.
2006 YTD Actual (USD) 2006 Forecast (USD) 2006 Budget (USD)
2006 Programme 2, 305, 129 19, 350, 000 19, 350, 000
Budget
Phased Approach
Phase 1 (planned to deliver a high confidence inferred resource): 500 carats - 70m grid centre
Large Diameter Drilling & core drilling.
Phase 2 (planned to give an indicated resource): 500 carats - 50m grid centre Large Diameter
Drilling, 4,000 carats – Bulk sampling & core drilling. An indicated resource is a requirement of a
bankable feasibility study, as required by the Boteti JV agreement
Phase 3: 1,000 carats - 25m grid centre LDD (may not be required, depending on Phase 1
and 2 results)
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Summary of Phase 1 results
Macro-diamond results issued for 12 LDD holes (82 tonnes ofDMS concentrate), 13th and last hole results to be issuedduring May 2006.
A total of 9,970 diamonds weighing 661 carats to daterecovered from 2,438 ton of in situ sample from 12 LDD holes
Diamond Characteristics
● Largest diamond recovered c. 8-carats in size
● Presence of Type II diamonds
● Low % diamond breakage
● Diamonds adhering to kimberlite during recovery, especially in theharder south lobe kimberlite
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Progress on Phase 2
Pilot Core Drilling
10 (3,472m) holes to precede Phase 2 LDD completed as planned.
All core logged and sampled for petrography, Ore Dressing Studies& density.
Some holes in south lobe indicate additional kimberlite than modelsuggests. To extend PLT016 deeper
Delineation Drilling
Vertical hole drilled north of north lobe indicates additionalkimberlite volume. Further delineation required.
Deep hole to delineate root zones of north/centre lobes & bottom ofsouth lobe in progress. Potential for additional kimberlite.
Dedicated delineation programme (>7,000m) to arrive at an indicatedlevel of confidence in geological model will commence in Q2 2006.Completion in Q3 2006.
Preliminary geotechnical drilling (4-5 holes) planned as output to pre-feasibility study.
Phase 2 Large Diameter Drilling
Re-scheduled ahead of planned bulk sampling.
In-fill drilling:10 x 23-inch LDD holes to determine grade at 50m holespacing grid.
3 holes completed in centre lobe. South lobe drilling in progress.
2 of 7 holes planned in south lobe to go 600-700m depth to confirmgrade continuity with depth.
Planned to complete drilling end August and processing endSeptember 2006.
The current 3D geological model suggests a total resource to 59Mt.
There is potential for additional kimberlite volume
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Phase 2 Bulk Sampling Strategy
Bulk sampling options to recover c.4,000 carats (2,000 carats centre & south lobes each) for revenue estimation
● Shaft & horizontal adits to targeted areas
● Surface trenching
● Drill 1.5m diameter holes using Bauer BG36 rig
● Easy-Pipe directional tunneling system
Decision about which method(s) will be based on the outcome of Phase 1 diamond revenue results post the layout in early July. In the meantime scopes of work and contract tender preparations in progress for selected technology
The current diamond size frequency distributions tend to support a difference between South and Centre lobes, therefore assortments may be different. North lobe not material.
Investigations aimed at increasing the plant top cut-off size to c. 20mm in progress. Aim is also to recover the large diamonds including the fragile Type II’s.
DMS plant upgrades to handle the bulk sample throughputs (and ensure large & Type II diamond recoveries where present) to commence after Phase 2 LDD sample processing in early September 2006.
Update on Mine Delivery Programme
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Plant Designs and Mine Planning
Plant Design Studies
Various block flow diagrams currently being considered:
● Conventional block flow diagram - baseline design
● ‘Voorspoed’ type design with High Pressure Rolls Crusher in a secondary application
● ‘Canadian’ type block flow diagram (Tahera, etc)
● Application of autogenous Milling
Capital and operating costing in progress
Option for ore processing at Letlhakane being considered
Mine Planning
Letlhakane Mine slope angles assumed for conceptual study
Geotechnical & hydro-geological modelling planned
Conventional shovel truck method. Diesel powered fleet
Continuous operations environment
Host rock mined from the upper benches of the pit will be used during construction.
Maintenance of a minimum of six months exposed kimberlite at Run of Mine (ROM) grade
Purchase and operate all the earthmoving equipment
All equipment will be maintained on a Repair & Maintenance (R&M) agreement
Multi-skilled operators to provide flexibility and contingency
Cut 1
12.9Mt ore
3.3M carats
14.7Mt waste
190m depth
Commence 2009
Cut 2
15.7Mt ore
3.0M carats
24.9Mt waste
238m depth
Commence 2012
Cut 3
10.6Mt ore
1.9M carats
56.4Mt waste
341m depth
Commence 2014
Cut 1
12.9Mt ore
3.3M carats
14.7Mt waste
190m depth
Commence 2009
Cut 2
15.7Mt ore
3.0M carats
24.9Mt waste
238m depth
Commence 2012
Cut 3
10.6Mt ore
1.9M carats
56.4Mt waste
341m depth
Commence 2014
Immediate next steps
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Immediate target next steps
Diamond Layout : early July 2006
Global (inferred) resource : end July 2006
Conceptual Study completion : Q3 2006
The Conceptual Study is being worked-on from the perspective of a stand-
alone mine
Gate to pre-feasibility
Local (indicated) resource : Q2 2007
Pre-Feasibility Study phase : 9 months (Q2 2007)
The pre-feasibility study will essentially be a suite of trade-off studies within a
settled corporate arrangement
Gate to feasibility
Feasibility Study phase : 9 months (Q1 2008)
Detailed Design Phase : 6 months (Q3 2008)
Gate to implementation
The above timeline for mine development (aside from the resource
phase) is merely a standard template
There is significant opportunity to improve timelines when the Organisation
to Organisation (O to O) partner is selected and also undertaking
activities in parallel (as opposed to in series) where possible
Questions?