AFRICA — Mining at Turk to see light of day

Casmyn (CMYN-O) will take operations at its Turk gold mine in Zimbabwe above ground.

Traditionally, the Turk mine has produced gold from narrow high-grade veins, but detailed drilling and computer modeling has outlined wider zones of mineralization at the Western Extension zone, which the company believes can be accessed by an open pit.

Though the limits of this zone haven’t been fully delineated, the Western Extension is more than 100 metres long. Mineralization, which was initially intercepted underground, is relatively close to the surface. Much of the mineralization, which grades 2.5 grams gold per tonne, is fewer than 100 metres below surface.

Before Casmyn goes after the mineralization, however, it will drill to further define areas of near-surface mineralization, followed by open-pit modeling.

Should the mineralization prove economic, mining at a rate of 500 tonnes per day will commence. Using conventional drill-and-blast techniques, the company expects to produce 1,000 oz. gold per month.

Cash costs for the open-pit operation are expected to be less than US$200 per oz., though no timetable has been finalized.

Poor gold prices have also affected Casmyn; the company plans to delay deep underground mining at the Turk in order to conserve gold reserves there until metal prices improve. The company expects to resume underground production during the first quarter of 1998 at a rate of 250 tonnes per day.

The company also intends to begin underground mining at the Dawn mine in the first quarter. Ore grading nearly 15 grams gold per tonne would be shipped 10 km to the Turk complex.

The company continues to produce about 1,500 oz. gold per month, equivalent to 18,000 oz. per year. Cash costs at the mine stand at US$176 per oz.