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Theta Gold Mines purchases Glencore-operated ball mill for South African project

Snapshot

Both parties have agreed to complete the removal of the mill from the structure by mid-November and removal from site by the end of December 2019.

Theta Gold Mines Ltd - Theta Gold Mines purchases Glencore operated ball mill for AUD$550,000

Quick facts: Theta Gold Mines Ltd

Price: 0.18 AUD

ASX:TGM
Market: ASX
Market Cap: $78.61 m
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Theta Gold Mines Ltd (ASX:TGM) has secured a quality, second-hand 2.5-megawatt ball mill for use at the Theta Gold Project in South Africa.

The mill, which has been secured for A$550,000, can process up to 820,000 tonnes per annum and can readily accommodate future mining expansions.

Previously operated by Glencore at its Rustenburg Chromite Mine, the mill has been found to be in excellent condition with all associated parts being well maintained.

This report follows a dedicated inspection with plant engineers from Mets South Africa Pty Ltd.

Low- and high-pressure oil system

Chairman Bill Guy said: “An equivalent new 2.5-megawatt ball mill with spare parts costs around $5.5 million and would take up to 40 weeks from order to delivery.

“Theta has managed to secure a second-hand mill in excellent condition and with an inventory of vital spare parts for less than $800,000 which can be relocated to the TGME processing plant by January 2020.

“The purchase also provides certainty of grinding capability for the mine and, being larger than initially planned for in the feasibility study, allows for future throughput increases.

“Securing this ball mill marks another key milestone towards first production.”

Spare gearboxes

In addition to the essential drive train components, the purchase included two spare motors and gearboxes along with a seasoned ball charge and a full set of liners.

The purchase also includes a full set of engineering and installation drawings which will serve to reduce installation costs.

TGM is undertaking the identification of an appropriate engineering company to manage the removal and relocation of the mill.

Existing CIL Plant

The approved TGME project is connected to grid power, has sufficient water available for operations and has an approved tailings dam.

The plant area also has extensive office and other infrastructure including an existing 240,000 tonnes per annum CIL plant.

The CIL plant, which was constructed in the mid-1980s has gone through several changes in configuration through the years, is not operational as Theta plans to refurbish it after the feasibility production profile is achieved.

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