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PostSubject: Full Story   Full Story EmptyTue Mar 22, 2011 7:02 pm

Nambia’s second gold mine on track
CAPE TOWN – Canadian junior gold miner Auryx’s planned Namibian Otjikoto mine should be capable of producing 100 000 ounces of gold a year, with first output expected by 2014, its president has said.
There were no formal discussions to tie-up with neighbouring Anglogold Ashanti’s mature Navachab gold mine, situated about 270 kilometres apart from each other, although there were clear synergies to cooperate, Heye Daun told Reuters.
“In my view it is reasonable to expect that within three years this Otjikoto project will go into production,” Daun said from his Cape Town offices.
“But having said that, if we find excellent upside resource potential and our exploration is very successful, then we will continue doing that because we don’t want to build a mine that’s too small for a resource that’s large,” Daun said.
He said the Otjikoto gold deposit, divested by Brazilian miner Vale in 2009, has about 1,5 million ounces of gold at an average grade of 1,93 grams per tonne.
When it starts producing, the mine will be Namibia’s second gold mine after Anglogold’s Navachab mine.
Auryx, which set aside C$10 million for the first six months of 2011 as part of an aggressive drilling campaign, has been granted a large concession area of 300 000 hectares, with another 700 000 hectares under application.
Daun said the company, which inherited copper and nickel concessions when it took over Otjikoto, would try and farm out these two base metal mines.
“They are greenfields exploration assets but with very significant potential. At the moment we are talking to a number of parties with a view to farming this out to base metal specialists also active in Namibia,” he said.
Daun declined to mention the companies, although Anglo American and Canada’s largest diversified miner Teck Resources were operating in the southern African nation. – Nampa-Reuters
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