Tungkum limited (TKL) is a subsidiary gold exploration and mining company in which the Company has a 98.86% shareholding. TKL was founded in 1991 pusuant to the Company’s successful bidding for exploration concession areas in Loei Province, Northeast Thailand. An extensive mineral exploration program was initiated and, by 1995, significant economically minable gold resources were delineated and mining licenses (MLA’s) were applied for.
In 2003, TKL was granted 6 gold mining licenses covering some 2.07 sq km. Also, an additional 91.02 sq km are under application in the Wangsaphung and Muang districts of Loei province, consisting of 114 MLA’s covering some 52.62 sq km and 8 special prospecting licenses (SPL’s) covering about 38.40 sq km.
Project development and plant construction were completed in May 2006 and commercial operations began in September 2006 with daily throughput capacity of 1,200 to 1,500 ton per day (TPD), depending on ore qualities. In 2006, 176,785 tons of ore were mined, milled and processed, of which 70,389 tons were processed in the third quarter and 104,374 tons in the fourth quarter. The Company expects to process about 440,000 tons of ore per annum.
In 2007, TKL produced 17,485 ounces of gold which was all sold within the year.
Gold Mining and Processing
In exploration and mining, Company geologists and consulting expertise apply the latest technology in planning surveys and ore-deposit definition. Assaying is done by accredited laboratories and ore deposit assessment is overseen by duly accredited independent expertise. Computers with up-to-date mine software are used to help evaluate survey results and in planning ongoing mine development in which definition drilling and blasting are closely controlled. Ore is trucked and stockpiled at the ROM pad and mine waste is trucked to the waste dump (which is situated to act as future reinforcement for the tailings dam).
The ore extraction process is essentially the carbon-in-leach (CIP) method in combination with closed-circuit processing technology (recycling with no release of solutions used in ore treatment into down-stream areas). From the ROM pad, ore is fed to a primary crusher then conveyed to the ball and SAG mills for finer grinding.
The product is then pumped through a chemical processing sequence by which the gold is taken into solution by leaching and cyanidation and, subsequently, extracted and adsorbed onto activated carbon, and the surplus cyanide solution is recycled back into the process. The gold-loaded carbon is then treated to extract the gold from the carbon using the established electro-winning process. The impure gold is then melted and poured to form gold bars (dore), and the solution is recycled. The dore bars are then sent to an external refinery to be refined to 99.99 % purity.
Gold Sales
The Company has appointed Brinks (Thailand ) Ltd, to transport the gold dore to the refinery, and Heraeus Ltd. Hong Kong, for refining and sale of the gold which is 99.99% pure. The Company also appointed a representative in Hong Kong to witness the activities and to confirm the gold assays. Heraeus Ltd. will advance 95% of the dore shipped for refining. Based on the assays result after the refining process, the balance will be settled within one week.
Environmental Management
Environmental impact studies for the Project were conducted in accordance with the Office of Natural Resources and Environmental Policy and Planning [(ONEP), previously known as the Office of the Environment Policy and Planning or OEPP] guidelines, and includes a coordinated study involving SPS Consulting; the Department of Geotechnology at Khon Kaen University; NSR Environmental Consulting PTY LTD, Australia; and Environmental Geochemical International PTY LTD, Australia. The comprehensive program included ground water, soil mechanics, and soil-profile studies, all of which were approved by the ONEP.
Prior to production, baseline surveys on soil and groundwater properties were conducted by the Ground Water Research Center (GWRC) at Khon Kaen University. Also, since production began, the GWRC team, as the approved independent third party monitoring expertise, has been conducting environmental site monitoring in accordance with Government (ONEP and DPIM) regulations.
Tkl’s staff and management are committed to sound environmental practices and compliance with all applicable laws and regulations during operations. In addition, Tungkum Limited will initiate future rehabilitation of mined areas for suitable post-mining beneficial land use.
