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Hemerdon Ball Project, United Kingdom




Key Data


Hemerdon Ball Project

The Hemerdon Ball mine, renamed as Drakelands Mine in 2007 and believed to hold one of the world's largest tungsten and tin resources, is located in Devon, approximately seven miles north-east of Plymouth, UK. The historic mine was discovered in 1867 and was mined briefly twice in the 1900s and 1940s before going out of operation in 1944. The Hemerdon Ball mine is the fourth largest tungsten deposit in the world, according to the British Geological Survey.

"Wolf Minerals is advancing the project towards development."

A comprehensive feasibility study for further development of the mine was completed in 1981 by joint venture partners AMAX and Hemerdon Mining and Smelting (HMSL), who acquired the property in 1976. Planning permission was obtained in 1986 to develop the mine until 2021. The mine was sold to Wolf minerals in December 2007.

Wolf Minerals is advancing the project towards development having announced a positive result from a Definitive Feasibility Study (DFS) on 16 May 2011. The £123m ($194m) project will involve developing a two-phase open pit and a three million ton per annum (Mtpa) concentrator with the related infrastructure. The Environment Agency granted major environmental approvals for the Hemerdon project in September 2012. The engineering design for the project was completed in 2013 and construction began in February 2014. The mine is expected to begin production in the third quarter of 2015 at a rate of 3Mtpa over an estimated ten-year life.

Reserves

The mine contains 23.5Mt of proven reserves grading at 0.19% WO3 (tungstic oxide) and 0.03% Sn (Tin). Probable reserves total 3.2Mt graded at 0.19% WO3 and 0.03% Sn. Resources in the measured category amount to 76.8Mt graded at 0.02% Sn, 0.15% W (tungsten) and 0.19%WO3.

Indicated resources have been estimated to be 40.3Mt graded at 0.02% Sn, and 0.13% WO3. Inferred resources are 284.2Mt graded at 0.02% Sn, and 0.13% WO3.

Geology

The deposit is a remote cupola intrusion bordered by Devonian aged slates that are locally referred to as killas. Mineralisation begins near surface and continues till a depth of 400m. The mineralisation remains open at depth and along strike. Two vein types are distinguished by three different orientations.


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The first type includes a stockwork of quartz and quartz-feldspar veins that host minor mineralisation. Veins bordered by greisens are hosted in a sheeted vein system with wolframite and minor cassiterite mineralisation. The veins system occurs within a steeply dipping dyke like granite structure that is flanked by killas formed due to contact metamorphism.

The killas also host veins of low wolframite and cassiterite content. Kaolinisation up to a depth of 50m is observed in the granite structure.

Secondary arsenate minerals include Scorodite and Pharmacosiderite, hosted in the upper oxidation zones of the ore structures. The minerals have been formed due to arsenopyrite alteration and occur within the weathered regions of the deposit.

Mining

The mining will involve a standard hydraulic excavator and truck operation. The proposed pit will measure 850m in length, 450m in width and 200m in depth.

The waste to ore strip ratio will be 0.7:1 in the first stage of open pit development. It will be 1.5:1 for the life of mine.

The mine will operate on three shifts for six days weekly. The ore will be sent to the run of mine (ROM) over the three shifts, while waste will be delivered to the waste dump over two shifts. Mine waste will be used to build the Tailings management facility embankment.

Ore processing

Processing will be a three-stage operation, including comminution, pre-concentration and final concentrate production.

Wolframite (tungsten) and the cassiterite (tin) will be separated from the gangue in a 3Mt processing plant. The plant's operations will involve crushing, screening, scrubbing, dense media separation, de-slime and gravity separation, concentrate processing, tailings thickening and disposal.

Production

"The Hemerdon Ball mine is the fourth largest tungsten deposit in the world, according to The British Geological Survey."

A total of 7Mt of waste rock and 3Mt of ore will be mined a year, including 5,000t of tungsten concentrate and 1,000t of tin concentrate.

A saleable concentrate grade of 65% WO³ will be produced from approximately 58% of tungsten that will be recovered from the soft granite and 66% that will be recovered from the hard granite. Wolf Minerals will produce approximately 345,000t of WO³ a year. In April 2012, Wolf signed production offtake agreements for the Hemerdon project with Wolfram Bergbau und Hütten and Global Tungsten & Powders.

Contractors and financing for the Hemerdon Ball project

Wolf has obtained A$216.5m ($218m) of equity and debt package for the Hemerdon Ball project construction and working capital requirements. The funding includes $82m of secured bridge financing by Resource Capital Fund V LP, in addition to £75m ($118.5 m) of senior debt funding by UniCredit Bank, ING Bank and Caterpillar Financial SARL.

The engineering, procurement and construction (EPC) contract for the Hemerdon project was awarded to GR Engineering in March 2013. The EPC contract is valued at £75m ($110m approximately) and has a term of 24 months.

Bardon Contracting completed the construction of a 600m-long link road to the Hemerdon site in July 2012.

Wolf Minerals awarded an £85m ($134m) mining services contract to C A Blackwell in July 2013.

The Hemerdon Ball mine is one of the world's largest tungsten and tin resources.
The Hemerdon tungsten and tin mine is located approximately seven miles north-east of Plymouth, UK.
Core sample from the Hemerdon Ball project in UK.
Wolf Minerals announced a positive result from a detailed feasibility study of Hemerdon on 16 May 2011.
Test pit veining at the Hemerdon Ball project.