RE: RE: RE: Rock stability..
Last month's update on ground conditions
Serra Pelada - Construction and Development Update
The Company has now completed approximately 950 metres of decline development to a vertical depth of approximately 135 metres. Primary and secondary development totals 1,100 metres. The Company needs to complete an additional 350 metres of development, 125 metres in the main decline and 225 metres of secondary development, to access the mineralization. The Company remains on track to extract a bulk sample in the second half of 2012 and will provide additional information as it approaches the mineralization and begins to prepare areas for extraction. Over the next 200 metres of advance in the main decline, the Company will establish multiple secondary development headings in order to provide sufficient access for the first full year of production. To provide access for production beyond 2013, development of the main decline will continue throughout 2012 and is expected to be substantially complete by the end of this year.
Development to date has been as expected and the ground conditions in the red siltstone have been predictable. Conventional ground control techniques (scaling, rock bolting, screening and shotcrete application) have been sufficient to ensure a safe mining environment. As the decline moves into the next phase of development and towards the bulk sample in the second half of the year, management will continue to focus on mitigating any risks in development with an increase in the number of rock strength tests as well as the addition of ground movement monitors that will allow the Company to be proactive if the ground conditions should change.
Procurement of mining equipment is 95% complete with 80% of the equipment already on site. Of the 24 pieces of mobile equipment needed for production, 19 are now on site and in operation, four have been ordered with anticipated delivery in the second quarter of 2012, and one remains to be purchased. Of note, is the late delivery of a dual boom Sandvik LHD 307, which commenced operation in and has helped accelerate the rate of underground decline development. Electrical work progressed during the fourth quarter of 2011 as the site transformer arrived and was installed. Four generators arrived on site early in 2012 and construction of infrastructure necessary to distribute power to new installations on site is proceeding well.
In the fourth quarter of 2011, the first underground drill bay was established in the development decline at Serra Pelada. The drill bay location was designed to be multi-purposed. It has served to conduct geotechnical holes ahead of the advancing decline so that ground conditions can be anticipated. Additionally, two delineation holes have been drilled from this location to date. Within the next 100 metres of advance in the main decline, two additional drill bays will be established which will be used to conduct definition and delineation drilling ahead of the bulk sampling program. Management expects to commission the second underground drill during the second quarter of 2012. This drilling will form the basis for the initial NI 43-101 resource and reserve estimation, which remains on schedule for the first quarter of 2013.
The Company continues to augment its development team. To this end, Colossus is pleased to welcome as General Manager, Serra Pelada. A highly-motivated and safety-minded mine operations manager with practical and progressive experience in all aspects of management and underground mining methods, Mr. Pritchard brings a wealth of experience from his years at in and more recently at in and in . Recognized as being an experienced operator in challenging underground mining conditions, he is a strong addition to the operating team.
In addition, the Company continues to work closely with P&K Projetos e Consultoria LTDA who was engaged in the fourth quarter of 2011 to develop the detailed underground mining plan for Serra Pelada., Civil Mining Engineer (P.E.), Eng. Dr. (IT) SME, who has more than 35 years of experience in mining operations and executive management, heads up P&K's 315 person team headquartered in . In operation since 1992, P&K has extensive experience serving its Brazilian and international clientele with rock mechanics, rock characterization, underground stability and hydrological studies. This has included detailed design of tunnels and stations, methods of excavation and specifications for support methods in the expansion of the subway system in preparation for the 2014 World Cup and 2016 Olympic Games. P&K has also assisted a number of gold and coal producers with design of development and infrastructure in varying ground conditions; including decalcified sandstones and siltstones which are the prominent lithologies at Serra Pelada.
Commissioning of the 15 well dewatering system commenced in the first quarter of 2012. The Company remains on schedule to complete dewatering to depths sufficient for mining operations ahead of production in 2013.
Engineering for the first phase, gravity processing plant has commenced and construction is anticipated to commence imminently and to be complete early in the first quarter of 2013. Orders for long lead-time items for the mill, including the intensive leach reactors, electro-winning cells, the gravity concentrators and the ore scrubber have been placed and are expected to be delivered during the third quarter of 2012.
The Company is pleased to provide photographs of the development activities at Serra Pelada. Photographs can be accessed via following link:https://media3.marketwire.com/docs/CSI_Construction_Update_April_Final.pd
https://www.colossusminerals.com/English/Investors/News-Releases/News-Releases-Details/2012/Colossus-Minerals-Provides-Operations-and-Development-Update-for-Serra-Pelada1128834/default.aspx