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Exploration and Development Property: Wouterspan
Background:
The Wouterspan Property is located near Douglas, South Africa. It comprises portions, totalling 7,409.4 hectares, of the Lanyon Vale 376 farm. Operations were taking place on three portions of the property called the Farhom, Okapi, and Stofdraai farms, exploiting the Rooikoppie and Primary gravel. The strategic review of the property continued during the quarter ended February 28, 2011; a review of the proposed new plant design by external consultants is nearing completion.
A preliminary assessment of the Wouterspan project was commissioned by Rockwell in late 2010.A high volume/ low cost production plant with a capacity of 340,000cubic metres per month is planned. The higher capacity of the new proposed Wouterspan plant is expected to result in a significant reduction in cash operating costs, once the facility is operating at full capacity. Other anticipated benefits include more stable grades and a higher frequency of exceptional stones. The capital expenditure for the new plant at current prices is estimated to be $17.4 million, which includes the plant and all associated infrastructure. It will take one year to construct and the project will commence once funding has been secured.
The geology of Wouterspan is similar to that of adjacent Saxendrift, and similar mining methods are expected to be employed. Excavation of the gravels is not planned to change from the standard techniques applied on all of Rockwell's alluvial diamond mines -- excavation by hydraulic excavator followed by transport of gravel to the plant site in mine haul trucks.
Geological setting and mineralization:
Alluvial diamond deposits preserved in fluvial-alluvial palaeochannel and deflation gravels (Rooikoppie) in Vaal River terraces.
Processing plant:
| Old Plant |
New Plant |
| ±90,000 m³ per month |
340,000 m³ per month |
| 600 carats per month |
2,200 carats per month |
| 12 x 16ft Pans |
8 x 18ft Pans |
Mineral resource/reserve estimates:
|
Inferred Resources |
Indicated Resources |
Ave Grade
(ct/100m3)* |
Ave Value
(USD/ct) |
Rooikoppie |
5,911,000 |
714,400 |
0.70 |
2,029 |
Fluvial-alluvial |
31,863,000 |
4,311,100 |
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TOTAL |
37,774,000 |
5,025,500 |
0.70 |
2,029 |
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