| Tue 1 Jun 2010, 11:19 | | TBX - Thabex Limited - Update - Monastery and Kolo Kimberlite Projects |
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TBX
TBX
TBX - Thabex Limited - Update - Monastery and Kolo Kimberlite Projects
Thabex Limited
("Thabex" or "the Company")
Registration No 1988/000763/06
(Incorporated in the Republic of South Africa)
JSE share code: TBX
ISIN Code: ZAE000013686
Young Lions Exploring Africa
UPDATE - MONASTERY AND KOLO KIMBERLITE PROJECTS
Monastery Kimberlite Project
The Monastery Kimberlite pipe was discovered during the late 1880`s and active
mining commenced during 1895. Mining was suspended during the Anglo Boer War.
Intermittant attempts were made to recommence mining operations up to 1965,
when Mr SR Gasson commenced prospecting operations. He signed an option
agreement with Rand Mines Ltd to finance a prospecting program on the
property. The Rand Mines prospecting results were reported by Mr TK Whitelock
in August 1970. During 1978, the Octha Group entered into an agreement to
capitalise the mine and to commence mining operations on a larger scale. The
Octha Group sold its interest in the mine to an Australian listed company, at
the time. During the period 1980 and 1983 the Monastery Mine produced about 16
000 carats. The mine was put on care and maintenance during 1983, when the
diamond market experienced it first major correction since the Second World
War. The property is known for exceptional quality large diamonds and the
largest rough diamond recorded was a very high quality 244ct diamond recovered
in October 1972. Thabex`s wholly owned subsidiary, Tradepost 121 (Pty) Ltd,
acquired the Monastery Mine (Pty) Ltd, holder of the prospecting permit of the
Monastery Kimberlite project, on 14 April 2008.
Further to the announcement on SENS on 25 February 2010, relating to the
acquisition of Monastery Holdings (Pty) Ltd, the holder of all the Plant and
Equipment on the Monestary Mine area, Thabex has engaged DRA South Africa to
assist in the assessment of the available plant and equipment at the Monastery
Kimberlite Project. The assessment is being undertaken in order to determine
what the reconfiguration and optimisation of the present 100 tons per hour
("tph") Dense Medium Separator ("DMS") plant (with a bottom cut-off screen
size of 1.5mm) would cost, as well as, the period of implementation for the
possible recommencement of mining operations.
On 5 March 2010 the Prospecting Permit of Monastery Mine (Pty) Ltd on the
Remainder of the farm Monastery 237 was renewed. Limited scale reprocessing of
the tailings and crushed kimberlite through a 10 Foot Rotary Gravity Pan plant
has commenced.
The Diamond Resource of the Monastery Kimberlite project, up to a depth of
100m, is a Measured Diamond Resource of 2.15 million tons at an estimated
average grade of 25 carats per hundred tons ("cpht").
Kolo Kimberlite Project
On 12 December 2008 Angel Diamonds (Pty) Ltd ("Angel"), a 60.67% subsidiary of
Thabex, submitted an application for a Mining Lease over the area covered by
Prospecting License No 002 measuring 5,53 km2 in size in the district of
Mafeteng. A cluster of diamondiferous kimberlite pipes and fissures occur in
the area, including the Kolo kimberlite pipe.
To date the Mining Lease applied for has not been granted and the main reason
for the delay has been the finalisation of the Environmental Impact Assessment
("EIA") study. The Commissioner of Mines required that the removal of an
ancestral graveyard on an oxidised portion of the Kolo kimberlite pipe had to
be completed prior to the approval of the Mining Lease application. A reburial
in terms of the local customs and procedures was completed on 22 August 2009
and this very sensitive and delicate removal process was finalised during the
first week of January 2010. A provisional Environmental Clearance was granted
by the Department of Environment on 7 April 2010. It is expected that
negotiations with the Mining Board of Lesotho will commence shortly.
The Diamond Resource up to a depth of 100m is a Measured Diamond Resource of
2.7 million tons at an estimated average grade of 14.1 ctph. On granting of
the Mining Lease Angel is planning to commence production with a DMS plant at
a minimum rate of 50tph.
Due to the delay in the granting the Mining Lease for the Kolo Kimberlite
Project, the Company has reprioritised its production plans by commencing the
processing of tailings and crushed kimberlite ore at the Monastery Mine.
Marius Welthagen, P.Eng. (Int), MEng (Mining), MPhil (Mineral Economics), Hons
BCom (Economics), MECSA, MSAIMM, FGSSA, was responsible for compiling this
update report. As Chief Executive of Thabex he has sufficient experience
relevant to the style of mineralisation, type of deposit under consideration,
activities undertaken, evaluation and valuation thereof to qualify as a
Competent Person in terms of the SAMREC Code and Competent Valuator in terms
of the SAMVAL Code.
All updates on the Monastery and Kolo Kimberlite Projects are available on the
Company`s website www.thabex.com
Johannesburg
1 June 2010
Sponsor
PSG Capital (Pty) Limited
Date: 01/06/2010 11:19:02 Produced by the JSE SENS Department.
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