Buzwagi

 

Mine profile

Characteristics

Buzwagi is a shear-hosted quartz-veined deposit, hosted in porphyritic granite.

Life and reserves

The Life-of-mine has recently been re-engineered to substantially reduce the amount of waste movement required and optimise the grade of the mine. The mine is now postioned to deliver positive cash flows for the next 5 years with life of mine production of approximately 1.1 million ounces.

Location

The Buzwagi mine is located in northwest Tanzania in the Kahama district of the Shinyanga region, approximately 97 km from Bulyanhulu and 6 km southeast from the town of Kahama.

Capacity

The mill is designed with a throughput capacity of 12,000 tonnes of ore per day (c. 4.4 million tonnes per year) and produces both doré and copper/gold concentrate.

Access

Buzwagi is well connected. The site lies immediately beside a paved highway and a 1,580-metre airstrip. It is also only 40 km from Isaka, a railway hub with links to the port of Dar es Salaam on the Indian Ocean.

Climate

The annual average temperature ranges from 16° – 29°C. Average annual rainfall in the region is 953mm.

The site

The Buzwagi mine is a low grade bulk deposit with a single large open pit.

2013 Performance

Key mine statistics Year ended 31 December Contribution to total Group ounces (Oz)
2013 2012 % variance 181,984
Tonnes mined (Kt) 32,177 28,563 13%

Ore tonnes mined (Kt) 3,753 4,223 (19%)
Ore milled (Kt) 4,400 3,715 18%
Head grade (g/t) 1.5 1.6 (6%)
Mill recovery (%) 88.2% 87.3% 1%
Ounces produced (Oz) 181,984 165,770 10%
Ounces sold (Oz) 187,348 155,322 20%
AISC per ounce sold (US$/Oz) 1,506 1,798 (16%)
Cash cost per ounce sold (US$/Oz) 945 1,066 (11%)
Cash cost per tonne milled (US$/t) 40 45 (11%)
Copper production (Klbs) 7,115 6,773 5%
Copper sold (Klbs) 7,062 5,628 25%
Breakdown of Capital expenditure
- Sustaining captial (US$'000) 31,589 56,441 (44%)
- Capitalised development (US$'000) 60,136 39,455 52%
- Expansionary capital (US$'000) 62 -
  91,725 95,958 (4%)
- Non-cash reclamation assets
adjustments
(9,230) 10,494 (22%)
Capital expenditure (US$'000) 82,495 106,452 (23%)

2014 Priorities

  • Optimise crusher and mill performance to exceed nameplate capacity
  • Reduce levels of inventory and improve inventory planning processes
  • Improve power mix of the mine to continue to reduce reliance on diesel generated power