Kayelekera to begin commercial productin in September

In its latest quarterly report, Paladin announces  that commercial production is expected to be achieved during the September quarter with first production planned to be shipped out towards the end of the September 2009 quarter.

The mine was officially opened by the President of Malawi, His Excellency Dr Bingu waMuthariika on 17 April. Commissioning and optimisation of the uranium process circuits is ongoing and production ramp-up has commenced with the plant initially operating in an intermittent mode during this phase. It is  anticipated that the plant achieve 60%-70% design capacity during the September quarter.

 Project Development

The report further states that  final construction of the sulphuric acid plant is expected to be completed by late August with the remaining works  now predominantly being the lagging and cladding of the completed acid process equipment, piping and vessels.

The construction workforce is being progressively demobilised with the intention of retaining several hundred Malawian workers for general landscaping and camp upgrade.

Detailed planning and scheduling of the earthworks for the lined decant pond and lift extension of the north wall of the tailing storage facility by the earthworks contractor has commenced with commissioning of the former planned in December 2009, prior to the next wet season.

 

The Malawi Government’s road building contractor has sealed the first 13km section of the M26 public road from the town of Karonga to the mine site with the exception of two bridges and some culverts/drains which will be completed by the end of the year. Commencement of major road works on the final 19km section to the mine

access road is planned to start in the next quarter. Road access to site remains non-problematic.

Production

Albeit still very much in its commissioning and ramp-up phase, Kayelekera produced 34,600lb during the June quarter.

Mining

Open pit mining activities, operating on a single daily shift, continued to focus on pit development. Several benches are now developed and the ore body has been fully exposed across the width of the pit. A total of

223,200t of ore grading 1,195ppm U3O8 and 740,835t of waste were removed from the pit in this quarter with a total

of approximately 2.37Mt mined from the area since operations began in 2008. The mine is planned to go to a two

shift operation in July.

Process Plant

The Kayelekera processing plant is the first of its kind to be built outside Russia and also employs new equipment and processes which will require some degree of refinement during the ramp-up period. The crushing and milling circuits are generally operating problem free with the design grind being easily and consistently achieved. To date, mill throughput has been maintained at around 100-110t per hour as downstream sections are commissioned.

 

Exploration Activity

Resource extension drilling to the west of the Kayelekera open pit started in June. Currently 18 holes totalling 2,022m have been completed. Initial results indicate that the mineralisation continues to extend to the west. However, detailed studies of the completed drilling programme are needed to determine whether the mine life will be extended. Final results and a subsequent resource update are expected in the December quarter.

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