Existing Operations
Crushing Plant at Dialafara
Tawati Gold provides crushing and gold extraction services to the artisan miners at a fee of 1.5g of gold per 80kg bag (i.e. 18g/ton at 20.5 carat). The plant was brought into production in May 2009. Currently producing 2.7kg of gold (20.5 carat average) p.m. out of 48 tons of rock, of which Tawati Gold’s toll fee is 0.9 kg. This has been a successful test project, but needs to expand significantly to fully exploit the available opportunities.
 |
The balance of gold production is bought by Tawati Gold and sold at margins of between five and eight percent.
Dredge on Falema River
Tawati Gold has been working a dredge on a rented permit for sufficient time this year to realise that this is a profitable and viable business.
Following this, we applied for our own permit.
Planned Operations
New Crushing Plant
A new 3t/h crushing plant will be erected either on the Haida mineral permit property or at an existing factory facility. Tawati Gold is in the process of leasing an existing facility at Mahina mine, to provide crushing and gold extraction services to the artisan miners at the agreed fee of 1.5g of gold per 80kg bag.
Upgrade Dialafara Crushing Plant
Tawati Gold’s’ existing plant capacity does not meet the market or the company needs, and therefore will be upgrading to produce at a more commercially viable level, to four times its’ current capacity (1t/h).
Dredge Permits
Tawati Gold has recently been granted its own permit to dredge 35 km of the Faleme River adjacent to the Dialafara plant. The fleet will be expanded to at least six dredges and ensure diamond as well as gold recovery. Each dredge can produce 30g to 80g of gold per day with an average consumption of 40 litres of diesel per day. Diesel and divers is the major cost contributor. The divers earn one third of the production, net of direct costs.
Mining
Tawati Gold has hitherto not been mining. With the acquisition of two mining permits, and the potential acquisition of two additional permits, it is well positioned to commence mining on a small-scale basis early in 2010. The financial plan in this offer does not take this into account at all, so this will all be an additional benefit.
Exploration & Exploitation
In October 2009 Tawati Gold acquired three permits for gold exploration and exploitation that are:
- Haida Corps SARL, 10 km NW of Kenieba 10km2 in extent, to be paid for over three years, subject to strict conditions;
- Batale, 12km S of Kenieba 11 km2 in extent. Permit granted by the DNGM. This will take some time to get going;
- Dredging permit in the Falema River, a 35km meandering stretch. Permit granted by the DNGM. Tawati Gold’s existing dredge will be brought into operation shortly.
Another two permits, in the close vicinity of Haida Corps, are currently in the process of being purchased.
Exploration studies on most of the permits, varying from soil sampling to trenching and drilling indicate promising results. Traces of artisanal activities are also present. These are a good indication of the presence of gold bearing quartz veins.