1/15 THREAD: Gold metal accounting, East Katanga -DRC- style

Hats off to these guys.

UG Mining using hand implements. Head grade 3-5 g/t Mining recovery 40%. -> 7.5t moved for 1 tonne of ore. Mining dilution 0% -> Hand pick the ore.
2/15
Look at this workmanship! This particular hole was 36m deep & consisted of about 30 x 1.2m high steps. At the bottom, they rat hole in all directions along the structure. Scary stuff geotechnically, but they're way better than most trained geologists at finding pay shoots.
3/15 Its dangerous work, especially in the rainy season when these hole often collapse. Many die each year, but what else can a man in E. Katanga do? They are men of faith and they work for a "point" per day (0.1g/day or about $4 at today's price).
4/15 I caught these miners going home after a week of working, day & night. They work typically 14-18 hrs each day and snatch sleep under plastic or grass lean-to's, cooking for themselves. Saving money for batteries and beer. Really good men. Very humbling, their happiness.
5/15 We had it good, sleeping in the Catholic monastery each night after a three hour drive, the oldest brick building in the DRC, built by monks in 1935. They had the most amazing choir I have ever heard, which woke us during practice at 5:15 a.m. each day.
But I digress.
6/15 Back in the mining area, ore is carted in 40kg hessian bags on bicycles to milling stations. Here crushing takes place, again by hand.
Estimated losses to fines 5-10%
3g/t -> 2.7g/t
7/15 Crushing is also done by hammer. Note how worn the hammer in his hand is. This man earns US$0.50/day doing this. Its enough for one meal of Cassava. Grim. All-in mining & processing cost is about $20/tonne + a lot of sweat, blood & tears.
8/15 Milling with mercury added. Notice the mill ball behind the guy. His engine was broken that day, but he told us he normally mills about 3t/day. Its a 24 hr operation and he has 5 guys helping him. He is the boss man because he had money for an engine. And fuel. Its $4/litre.
9/15 Have a look at this mill shell & bearing. It gives new meaning to white-metal bearings 😏, but it works! Milling is a batch process. Load the mill by hand. Run it for a few hours &then unload. Repeat until you run out of fuel, which comes only by bicycle, a journey of 1 day
10/15 The milled product is then thoroughly mixed with mercury by treading -as you would tread grapes- in these UN-blue plastic lined "tanks". Afterwards the mercury amalgam is concentrated by sluicing off lighter material (sorry no pics).
11/15 Here is the is an amalgam bead. About 50% pure gold. The mercury is vaporized in pots that are also used for cooking, in the grass huts in previous pictures. Overall recovery is around 60%. It was too valuable & they were too scared to show us the final product, which...
12/15 is ferried in small, hidden quantities on bicycles to town. Here, it is sold to local buyers with dishonest scales, for just $500/oz at the time (2016). Transport and TC/RC's are the given reasons. As is always the case, terms UNreasonable are sold as MOST reasonable.
13/15 Yet despite the theft, the poverty there is joy. How is this possible? They have nothing yet they have EVERYTHING. We could learn a thing or two here, with our 1st world problems, sulky, sullen faces and mobile phones more important than the other person in the room?
14/15 Here are two gold buyers. These guys really did not like or want to be photographed but I managed to sneak in a shot nevertheless while they were talking to my father. These guys make good money: Perhaps $100/month or more.
15/15 From here the gold goes by boat the 80km across Africa's longest & deepest lake, Lake Tanganyika to be sold to fat-cat Arab traders in Tanzania, who in 2016 were buying for around $7-900/oz, again on dishonest scales. They naturally do best of all, like all off-takers.

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Jan 27
1/8 Oh my Gatos THREAD: $GATO got hit so hard today! -69% 😵A potential 30-50% reduction in MRMR tends to do that. Kudo's to them for disclosing all the bad. This is legally required but many don't. In figuring out HOW/WHY while we wait for the formal explanation in H2, I noticed
2/8 a cross section in the tech report showing the block model vs. drill composites, that the grades may bottom loaded in the veins; or veins were modeled wider than they actually are or, the block model extended beyond where it should have.
3/8 The impact of this could be the reason for the overestimation of block volumes. Or it could have been the digitizing/interpretation of the wireframe boundary that was too relaxed. These things can all result in overestimation of MRE tonnes.
Read 8 tweets
Jan 18
1/9Thread: WHAT TO LOOK FOR ON YOUR NEXT SITE VISIT to any open pit mine: Floor conditions & big rocks. If the floors r not smooth, level & clean -like tabletop- then the trucks will be less productive &mining cost higher than average. The Big rocks are the 1st sign of of trouble
2/9 Looking up from below at that lower bench in the prev. pic you can see a lot big rocks have been pushed over the edge of the bench. While this immediately postpones the problem, the No. of big rocks on each bench increases as the pit deepens, ↘️ decreasing productivity.
3/9 Here, on another bench you can see how big rocks affecting productivity. The guys are drilling off a blast pattern on the left, and truck access hampered on loading bench below, making loading & hauling complicated and very expensive.
Read 9 tweets
Aug 26, 2021
$Fil Filo Review/Thread No.1
1/ 1 needs to spend time on the data, reading background reports, looking at plans etc. & I have been doing this while waiting for a couple of answers from the Co. on its dataset available on the website. Nothing major, just a couple of questions on Image
2/the differences between the RC & DDH drill survey data. If I have wonkey survey data, or bring the data in wrong, I'll get wrong sample positions, which would lead to wrong models &designs➡️different economic outcomes &then we know it could all end in tears➡️ not good.😁
3/ So while we wait its a good time to review the PFS report by Ausenco. Very nicely presented, clear & professional it answered some of my initial doubts about water & land/sovereign risk. Need to spend more time on the Chilean vs Argentinian laws & its impact on a mine ImageImageImage
Read 12 tweets
May 4, 2021
1/8 Dimension Stone (DS): Now if there ever was a cut-throat business, it would be this one. Worse than the diamond industry in terms of competitiveness, it seems the Taiwanese & the Italians have pretty much cornered the market. This particular granite mine is in Zimbabwe🇿🇼
2/8 Dimension stone is a really messy mining business with quite a serious environmental footprint. Hard to rehab the holes and tonnes of oversize rubble. Blame the banks & other rich Co's that want beautiful skyscrapers & floors, for example the Scotiabank building in Toronto.
3/8 Only 10-25% of what is mined goes out as sellable product. This is because its only possible to sell big, clean blocks with no faults or joints; natural weaknesses which cause a block to split when it is cut by a diamond saw. Breaks easily. Blocks are huge & generally
Read 9 tweets
Jun 26, 2020
1/23 #Economics of #OpenPit #Mining & its impact on a Mining Co's success. This brilliant pic of Letseng diamond mine in Lesotho shows the results of sensible & good strategic & tactical mine #planning. Take a careful look and then compare this pic to the next one of
2/23 Guyana Goldfields, which is an example of what NOT to do. At first glance, the two pits don't look too dissimilar, right? But what from these pictures is it that lead to the disaster & ultimate collapse sale of $GUY, while GEM Diamonds is still doing great? Can you tell?
3/23 The answers is in the phasing of the pit & ramp access. GUY's next pushback (yellow) is constantly cutting off access (red) to the cut below from blasting -The only cut which supplies the gold. They have to mine the yellow cut/pushback to expose ore later on but it looks
Read 24 tweets
Jun 2, 2020
1/7 @BigQuestionsNow A Q about this chart you or someone can help me with: We have high Ag/Au at the top of our mine moving to Zn/Pb/Ag w/ decreasing Ag, no Au at depth. Below that we expect & start 2 c more Cu. But in this graphic there is Cu-Au. Does this model work for us?
2/7 The Zn-Pb-Ag mineralized zones that comprise the El Mochito deposit are classified as distal zinc skarns as defined by Meinert (1992). You'll see the wildcat hole we are planning in the graphic below, probing for a heat source, which has, until now been elusive. The highest
3/7 Cu grades (of 0.7%) in the mine are patchy, never considered economic but can be found close to the collar of this new hole in that thicker manto area. We have high Ag grades in the vertical chimney orebodies, and mostly base metals at the bottom. Geology background below.
Read 7 tweets

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