As planned, the mine will increase to a capacity of 4,000t/d in the third quarter of 2015.

The Nampala mine had, in October 2014, stopped production for the most part because the elution system was not working properly. Modifications and adjustments were made to this system and have been tested so that it is now possible to make it work with a limited production.

At the time that the production was interrupted, an amount of 70,000 tonnes of coarse ore had been accumulated. This ore has been subjected to certified analysis and contains 1.12 grams of gold per tonne.

A small ball mills was rented and will crush the coarse ore. Moreover, there are already operational work teams on site.

Restarting at 600 t/d will generate as of June 2015 a minimum monthly gross profit of $250,000 (after variable costs). This generated margin will cover a very large part of the total fixed costs of the mine.

This intermediate stage of production at a rate of 600 t/d will bridge the gap until the start of the permanent ball mills so that there will not be a shutdown of the mine before moving to 4,000 tonnes per day.

Construction of Phase 2

The Company is pleased to announce that the construction of Phase 2 of their Nampala mine is undergoing and is currently on schedule.

The investment plan of Phase 2 included among others:

  • The purchase of a ball mills in order to treat the coarse ore that contains a higher content of gold compared to the finer ore ;
  • The purchase of an efficient elution system ;
  • The addition of 4 CIL tanks to increase the gold recovery rate in ore processing; as well as
  • The general improvement of the facilities on the Nampala site.

The company has had the opportunity to acquire a new ball mills, ready to ship, which had never been used and at a great price.