Lily Mine to resume operations after R171m Canadian investment

2016-05-27 22:36
(AFP)

(AFP)

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Barberton - Lily Mine's top executive Mike McChesney has confirmed that operations will resume following a R171m investment from a Canadian company.

Vantage Goldfields, the owners of Lily and Barbrook Mine in the Barberton greenstone district, announced on Friday that they had received $11m from AfroCan Resources Gold Limited.

"We just have concluded a significant investment with AfroCan Resources Gold Limited (Afrocan). The investment will be effective from next Wednesday, June 1, 2016," McChesney told a News23 correspondent.

McChesney said the investment would be for a two-month period to help the mine reopen.

He added that the biggest part of this investment would be used to reopen Lily Mine, which closed down in February after a huge cave-in closed the entrance to the 13 levels underground.

It also cost the lives of three mine workers - Pretty Nkambule, Yvonne Mnisi and Solomon Nyerenda - who were on duty in the lamp room, located in a metal container on that fateful morning.

The first activity to kick off the new lease on life for Lily Mine would be the drilling of a new descent shaft into the mine.

Production would follow shortly after this shaft had been built, McChesney said. This would take another six to eight months.

"The rest of the investment will be used to boost and expand production at Barbrook Mine," said McChesney. 

"We are hoping to ramp up production to 50 000 ounces of gold per annum in the next two years. In 2015 we managed 32 418 ounces," said McChesney. 


Read more on:    mbombela  |  mining

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