Vatukoula Mine
Description
The Vatukoula Gold Mine is an underground mine with an operational history of over 75 years. The Company holds a 100% equity interest in the Mine.
Areas of operations - Fiji
The Mine is located in Fiji, an island group in the South Pacific Ocean. Fiji comprises two main islands, Viti Levu and Vanua Levu, with many smaller surrounding Islands. The Mine is located in the northern part of the island of Viti Levu within the Tavua Basin, situated within the Tavua volcano. The Mine is located in the Vatukoula village, a 90 minute drive from Nadi International Airport.
The mine operates within three Special Mining Leases which cover a total area of 1,255 hectares. In addition VGM has the right to explore areas outside the current mining leases via Special Prospecting Licenses that cover over 19,000 hectares of the surrounding Tavua volcano.
About the Mine
The Mine is a long established underground gold mine. There are a total of nine shafts in the Mine, but only four are being used other than for ventilation; the Smith & Phillip Shaft for hoisting ore, the Cayzer Shaft for men and materials and a Decline Shaft for access for the rubber tyred mine fleet. The Vatukoula Gold Mine is currently both an open pit and underground operation, however in the medium-term it will become predominantly an underground mine.
The mining operations use conventional labour intensive stopping methods together with trackless ground handling and haulage followed by skip hoisting via the vertical shafts. Stopping will be a mixture of Long Wall Breast, Shrinkage and Cut and Fill.
Mine Infrastructure
Infrastructure at the Vatukoula Gold Mine includes assay labs, an independent power station, workshops and administrative offices.
Processing Plant - At the Mine site there is a seven hundred thousand tonne per annum processing facility, which includes crushing, grinding, flotation, roaster, CIP and tailings dams.
Undergound Mining fleet - Equipment at the Mine includes several Toro loaders, Toro load-haul-dump vehicles, support trucks and other associated equipment.
Reserves and resources
The Competent Person's Report assigned mineral reserves and resources to the Vatukoula Mine as follows:
Vatukoula Mineral Resource Estimate at 31 August 2012
| Mineral Resource | Measured | Indicated | Inferred | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Tonnes (Mt) |
Grade (g/t Au) |
Contained Gold (MOz) |
Tonnes (Mt) |
Grade (g/t Au) |
Contained Gold (MOz) |
Tonnes (Mt) |
Grade (g/t Au) |
Contained Gold (MOz) |
Tonnes (Mt) |
Grade (g/t Au) |
Contained Gold (MOz) |
|
| Underground | 3.2 | 12.9 | 1.3 | 3.7 | 10.3 | 1.2 | 4.0 | 9.7 | 1.3 | 10.9 | 10.8 | 3.8 |
| Waikatakata | - | - | - | - | - | - | 5.1 | 0.9 | 0.1 | 5.1 | 0.9 | 0.1 |
| Tailings | 4.5 | 1.5 | 0.2 | 0.7 | 1.3 | 0.03 | - | - | - | 5.2 | 1.5 | 0.3 |
| Total | 7.7 | 6.2 | 1.5 | 4.4 | 8.9 | 1.2 | 9.1 | 4.8 | 1.4 | 21.2 | 6.2 | 4.2 |
Vatukoula Ore Reserve Estimate at 31 August 2012
| Ore Reserve Category | Tonnes (Mt) | Grade (g/t Au) | Contained Gold (Moz) |
|---|---|---|---|
| Proved | 0.7 | 8.22 | 0.19 |
| Probable | 2.5 | 7.57 | 0.61 |
| Total Ore Reserve | 3.2 | 7.71 | 0.79 |
Operating history of the Vatukoula Gold Mine
The Vatukoula Mine first commenced production in 1933 and has produced some seven million ounces of gold and over two million ounces of silver from the treatment of around 22,500,000 tonnes of ore. The table below shows historic production from the Mine for the period 1996 to 2006 - when production was halted.
| Year | Ore (tonnes milled) | Recovered grade (g/t) | Recovered ounces (oz) |
|---|---|---|---|
| 2006 | 343,612 |
5.76 |
63,583 |
| 2005 | 525,221 |
6.16 |
104,033 |
| 2004 | 574,137 |
6.83 |
126,017 |
| 2003 | 529,611 |
6.73 |
114,642 |
| 2002 | 547,611 |
7.45 |
131,175 |
| 2001 | 520,575 |
6.79 |
113,589 |
| 2000 | 568,903 |
7.82 |
143,039 |
| 1999 | 509,242 |
7.62 |
124,811 |
| 1998 | 586,499 |
5.74 |
108,306 |
| 1997 | 675,499 |
5.61 |
121,780 |
| 1996 | 594,919 |
6.44 |
123,197 |
