South Africa

Burnstone Mine

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Overview

Mine TypeUnderground
StageRestarting
Commodities
  • Gold
Mining Method
  • Breast mining
  • Scattered stoping
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SnapshotBurnstone is a shallow developmental stage gold mine and processing operation. Burnstone, which was formerly operated as a mine until placed on care and maintenance in mid-2012, comprises two established shaft complexes, carbon-in-leach gold processing plant.

In the first quarter of 2021, the Sibanye-Stillwater Board approved the resumption of the Burnstone project, following completion of a revised mining study.

Due to the redesign requirements on the waste conveyor, the rock handling system was approached in two phases. Phase 1 which includes the underground ore handling, shaft hoisting and truck loading on surface infrastructure was completed, and the project is now able to hoist by using Tip 1 on 40 level.

The Burnstone project is now 65% complete. It progressed well during 2023, however due to the significant decline in PGM precious metal prices, the Group decided to defer the capital expenditure at Burnstone during 2024.

Owners

SourceSource
CompanyInterestOwnership
Sibanye-Stillwater Ltd. 100 % Indirect
Sibanye Gold Eastern Operations (Pty) Ltd. (operator) 100 % Direct
The Burnstone project is 100% owned by Sibanye-Stillwater.

Deposit type

  • Paleoplacer

Summary:

Burnstone lies within the Witwatersrand Basin and Archaean (2.7 billion year-old) sedimentary basin. The Basin is filled with approximately 14,000m sedimentary and subordinate volcanic rocks, which have been folded along a north east to south-west axis into an asymmetrical synclinorium. The sediments consist mainly of quartzites and shales and less prevalent, but generally economically important, gold-bearing conglomeratic zones, which occur on regional unconformities. These are commonly referred to as reefs or placers.

Burnstone is located in the South Rand Basin, a subsidiary of the main Witwatersrand Basin. The gold-bearing target UK9 Reef of the Kimberley Formation, occurs in the Central Rand Group of rocks. This reef lies between the outcrop and a depth of 1,300m below surface in the mining right area. Structurally, the project area is located on the northern limb of the arcuate South Rand Basin, which is locally deformed by a east-north-east-plunging anticline and cut by east-west and north-south normal faults, formed in response to the stress regime corresponding to the main structural feature of the region, which is the east-west striking Sugarbush Fault. This fault is a left-lateral wrench fault, which comprises the northern boundary of the South Rand Basin at this point.

Shallow gold deposit exploiting the UK9a Reef of the Kimberley Formation, Central Rand Group, Witwatersrand Supergroup.

The UK9a Reef is a thin (<1m), highly channelised, shallow dipping (<10º) orebody. The minimum mining cut includes waste to a total of 110cm.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityUnitsAvg. AnnualLOM
Gold koz 1382,000
All production numbers are expressed as metal in doré.

Operational metrics

Metrics
Annual mining capacity  ....  Subscribe
Annual ore mining rate  ....  Subscribe
Plant annual capacity  ....  Subscribe
^ Guidance / Forecast.

Production Costs

CommodityAverage
Cash costs Gold  ....  Subscribe
Assumed price Gold  ....  Subscribe
* According to 2021 study / presentation.

Financials

Units2021
Book Value M ZAR  ....  Subscribe

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M ZAR  ......  Subscribe
After-tax NPV @ 15% $M ZAR  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required May 3, 2024

Aerial view:

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