The revision process was conducted to a technical level satisfactory to engineering classification standards and reviewed programs associated with the mineral resource, mining, metallurgy, engineering design and infrastructural support.
The company has also obtained updated capital and operating cost estimates through a tender process undertaken independent of Globe, using the results to update its financial model.
Government negotiations advancing
The financial model for revised capital costs, revenues and operating costs will determine key metrics including project revenue, profitability, net present value, internal rate of return and payback.
Finalisation and release of the financial outcomes is pending due to uncertainty with the status of Malawi’s mining law and ongoing negotiations between Globe and the Malawi government.
Globe has made substantial progress negotiating a development agreement for Kanyika with the, accepting that the government will be issued equity in the entity that holds the project.
Conventional open pit mining
Mining operations at Kanyika will assume mill feed production will ramp up from 1 million tonnes per annum in the first year to 1.5 million tonnes.
The final pit dimensions are expected to be 250 metres wide, 2.2 kilometres long and average about 130 metres deep.
Mining will involve conventional open pit methods to extract ore from several open pits along a single longitudinal strike.
Staged production schedule
The mine production schedule prepared by Orelogy Mining Consultants details the treatment of high-grade material initially to improve project economics and the stockpiling of lower-grade material.
The schedule assumes Kanyika’s resource will be mined in a series of stages.
Processing will involve conventional crushing, grinding, desliming and magnetic separation before pre-flotation and pyrochlore flotation to produce a pyrochlore concentrate.