Buzwagi

Mine profile

Characteristics

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

Life and reserves

Life-of-mine is currently estimated to be around 12 years, based on its proven and probable gold reserves of 2,915,000 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.

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 comprises an open pit mine, ore-processing facilities, a waste-rock storage facility, a tailings storage facility, water management and other ancillary facilities.

People

As at 31 December 2011, a total of 2,099 people were employed at Buzwagi, consisting of 1,004 Group employees and 1,095 contracted personnel.

2011 Performance

Key mine statisticsYear ended 31 DecemberContribution to total Group ounces (Oz)
2011 2010 % variance196,541
Tonnes mined (Kt) 21,534 18,848 14%

Ore tonnes mined (Kt) 3,545 4,285 (17%)
Ore milled (Kt) 2,993 3,553 (16%)
Head grade (g/t) 2.3 2.0 15%
Mill recovery (%) 88.0% 81.0% 9%
Ounces produced (Oz) 196,541 186,019 6%
Ounces sold (Oz) 200,518 198,221 1%
Cash cost per ounce sold (US$/Oz) 691 685 1%
Cash cost per tonne milled (US$/t) 46 38 21%
Copper production (Klbs) 7,201 6,135 17%
Copper sold (Klbs) 7,353 5,473 34%
Capital expenditure (US$’000) 83,203 29,781 179%
  • Gold production for the year was 196,541 ounces (up 6%)
  • Gold ounces sold were 200,518, 2% higher than the production and 1% up on 2010, at a cash cost of $691 per ounce.

Immediate Priorities

  • Complete the detoxification plant upgrade and initial certification process under the Internation Cyanide Code
  • Continue the mining fleet expansion
  • Maintain name-plate throughput in the mill
  • Improve mill availability and utilisation
  • Improve efficiencies in power supply with the installation of capacitors
  • Complete the Knelson free gold concentrator upgrade