Published on 29th May 2008
Aim-listed Braemore Resources said it produced about 11 000 oz of platinum group metals (PGM) and gold in granulated alloy form in the six months to March 2008.
The company received its first revenue of $10,3-million for the precious metals, sold at a basket price of $2 230/oz, it said in a statement on Thursday.
Braemore would also receive $1-million in future payments for the outstanding base-metal content of the alloy, depending on base-metal prices and exchange rates on settlement.
In a separate transaction, Braemore negotiated to sell PGM alloy directly back to the smelter feed supplier, which would generate a further $4,5-million, and lower outstanding debt incurred on purchase of concentrates.
Since October 2007, Braemore has treated low PGM content, high-chromium smelter feed at its ConRoast demonstration facilities using South Africa's mining research entity, Mintek's DC arc furnace. At a rate of around 1000-t/m of low grade feed to produce more than 600 t of alloy containing PGM, recoveries were typically over 99%.
This represented the successful demonstration of the ConRoast process and Braemore has now met contractual milestones set by Mintek. Sales contracts for future delivery of smelted PGM alloy have been entered into with a number of refiners and PGM producers.
"The DC arc technology has proved to be extremely robust and reliable and preparations are well advanced for upgrading the smelter to a nominal power of 3,2 MW, which will increase capacity to 2000-t/m of concentrate," commented Mintek Pyrometallurgy division manager Tom Curr.
Small scale roasting and smelting tests on a range of PGM concentrates have been completed, and trial converting tests of the PGM alloy have been conducted. These samples have been used as feed for subsequent additional leaching tests on the alloy. A conceptual design has been prepared for a hydrometallurgical pilot plant, which will begin operation in the second half of 2008.
Braemore Resources recently announced the signing of a ‘subscription and farm-in agreement' with South Africa's Pan Palladium, with the intention of forming a joint venture to evaluate the feasibility of developing and mining the Grass Valley Platreef project.