From its existing strong operational base, Sierra Rutile has looked at several ways to expand its operations. Through this process, the Company is now focused on expansion through the fast-tracked development of a new project, the Gangama Dry Mining project.
GANGAMA DRY MINING
As opposed to dredge mining, which targets ore that is submerged in water; dry mining involves the excavation of ore in a dry environment. The Gangama Dry Mining project involves the excavation of SRL’s Gangama deposit using a fleet of conventional earth moving equipment, which will deliver mineralized ore to a concentrator unit located on the Gangama mine site. The mineral concentrate will then be processed in SRL’s existing mineral separation plant along with feed from the Lanti Dredge Mine and the Lanti Dry Mining project.
Dry mining the Gangama deposit will provide access to a high-grade resource in a shorter development time and reduced capital cost than dredge mining would have done.
- To date the Gangama Dry Mine construction remains on-schedule and on-budget:
- US$ 21 million of project construction spending completed to-date
- Significant project milestones achieved in Q4 2015, including:
- Completion of contractor camp construction
- Completion of concentrator plant fabrication
- Terrace bulk earthworks
- Project procurement remains on schedule, and civil construction is progressing well, with steel erecting also commencing in Q4 2015.
SEMBEHUN DRY MINE
Large resource containing 3.6 Mt of rutile
Scoping study completed in May 2015 for an 1,000 tph open pit, dry mining operation
Provides longer-term production growth for Sierra Rutile
Potential to contribute on average >70,000 tonnes of rutile annually
Further lowers Sierra Rutile’s operating costs
PFS underway and provides for a long-life resource
Well-advanced project with low-risk execution
- Large resource
- Scoping study completed in May 2015 for an 1,000 tph open pit, dry mining operation
- Provides longer-term production growth for Sierra Rutile
- Potential to contribute on average 74,000 tonnes of rutile annually
- Further lowers Sierra Rutile’s operating costs
- PFS underway and provides for a long-life resource.