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Stonewall Resources begins gold production at South African tailings project


Stonewall Resources (ASX: SWJ), formerly Meridien Resources, has marked first production at its Klipwal Tailings Project in South Africa following the completion of commissioning of the operation in November.

The production from Klipwal will increase Stonewall’s total production from 6,000 ounces per annum to 11,000 ounces per annum, and will generate revenue of about $732,071 per month – growing monthly revenue by 88% to around $1.56 million.

The operation processed 12,000 tonnes of ore during the month, producing 158.73 ounces of gold and generating $280,700 in revenue, achieving a breakeven financial position during commissioning.

Importantly, the project was commissioned on time and within budget – with the total cost of commissioning coming in at $734,000, 26% below budget.

The operation will ramp up to full production targeting gold production of 424 ounces per month by the end of February 2013, a month ahead of schedule.

This will result in annualised production of 5,000 ounces per annum from surface operations.

Bosveld Mines

The Klipwal Tailings Project is one of the areas of gold mineralisation of Bosveld Mines Proprietary Limited, a subsidiary of Stonewall.

The Bosveld Mines rights area covers 7,837 hectares and has well-established existing infrastructure already in place.

The project contains two areas of gold mineralisation at the Klipwal Mine and Kortnek Mine prospect areas.

Klipwal has been mined since 1898 with estimated historical production of 250,000 ounces.

Stonewall has identified notable surface and underground exploration targets at both deposits.

Underground JORC resource

A dewatering program of the existing underground development at Klipwal is currently under way, enabling underground exploration to begin.

Stonewall intends to expedite drilling and scoping studies at Klipwal and Kortnek to establish a JORC resource before conducting feasibility studies to determine appropriate mining plans to develop the underground resources.

The company is targeting production of 40,000 ounces per annum by the end of 2013, increasing to 155,000 ounces by the end of 2014 and 205,000 ounces by the end of 2016.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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