Lynette Louw and Marius Bakkes

New life has been blown into the old historic Agnes Mine with the discovering of a constellation of 21 virtually virgin ore bodies beneath the skirts of the mine, which forms the heart of South African’s discredited greenstone gold belt.

Galaxy Gold, new owners of the historic Agnes Mine, are midway in a financial drive to raise millions to increase the production of this somewhat forgotten mine which was closed down some years ago.

Peter Skeat who is the driving force behind the new company bought the mine through an auction in 2008, said Galaxy Gold intended to raise between R250 million and R400 million through a private placement and the JSE listing. Skeat and his fund-raisers are leaving for England and the United States soon.

Mining journalists were flown to Barberton recently to inspect the latest developments since production commenced again in 2009. The progress includes a new access road essential for future mechanisation envisaged, a brand-new R6 million titan ore mill as well as a state-of-the-art Biox plant. This is only the second Biox plant in South Africa besides Barberton Mines and both are situated in Barberton.

Skeat said that these technological advances would more than triple gold production at Agnes by the end of 2011.

Capital raised will be used to treble the tonnage at the revived operation, where an atypical mining method is doing what should have been done in the erratic greenstone belt a long time ago. It will be raised in a book-build exercise, ahead of the company’s expected August 18 listing on the JSE.

During last week’s media visit the Galaxy team demonstrated the massive mechanised method in the process of being develop. It entails a large-scale cut-and-fill technique which is being carried out in wide 35-m-plus Galazy stopes that contain 4,6 g/t of gold along a 1 200m strike length.

Geology director Dale Richards said that a 1,1-million-ounce resource has been firmed up and additional exploration is targeting four million ounces by 2014.

Hillson Drilling CEO David Hill has been brought in to affirm the four million ounces.

Currently the company is fully funded to operate at its current 18 000 t/m by December 2011. As soon as it can, it expects to go to 100 000 t/m and beyond, which would put it on a similar tonnage level to some of the depleting Witwatersrand gold operations.

Two new adits are being established to accommodate the large trucks, which will travel on a spiral ramp. The Golden Hill adit will provide access to a gold grade of 8 g/t-plus, double the 4 g/t average, and the present 22 Level audit will link all 21 gold deposits, which could take total future tonnage to 250 000 t/m, using a five-truck system.

Steven Venn, mining director, explained that with Skeat’s new approach, the jack hammers and airlegs were giving way to huge drills, big trucks and large earthmoving haulers.

Expectations for the local economy remain to be seen. Good news on the conservation front is Galaxy’s recent acquisition of the historical Lewis & Marks building in town which is bound to be restored.

The old historical Agnes Mine with its unique mountain setting and horizontal entrance literally veiled by a waterfall as well as the internal shaft hoist dating form 1923 and still operational, will remain intact as a tourist attraction.

However, the bottom line is that the renewed activities in Barberton have caught the attention of many and eyes were turning east once again, away from the Witwatersrand.

Media members inspecting the new Biox plant

Media members inspecting the new Biox plant

The new titan portable mill with Darrel Tonkin, Lukas Janse van Vuuren and Eben Raath

Steven Venn speaks to members of the media at the new Golden Hill adit