eT
BHARAT GOLD MINES LIMITED
(A GOVERNMENT OF INDIA ENTERPRISE)
MINING SCHEME
FOR
CHIGARGUNTA MINE NO.1,
CHITTOOR DIST., ANDHRA PRADESH
SEPTEMBER, 1999 |
|CONTENTS
Page
No.
Certificate by applicant
Certificate by Key persons
Copy of certificate of recognition of |BM
List of Annexures 1
List of Plates 2
10 Part Review of Mining Plan 4
2.0 Part I! Proposal under scheme for the next five years $
30 Reserves 6
' 4.0 Conceptual Mining Pian 8
5.0 Mining 9
6.0 Handing of waste, sub-grade material n
70 Use of Mineral 12
80 Mineral Benefication 12
90 Environment Management Plan 13,
Annexure-1, Review of progress of worK, deviation —8- 4
justifications
Annexure-II, Statoment showing lode/Block-wise, category-wise v7
eae SAU itu Ore reserves as on 1.41999, _
Annexure-IIl, Gold Metallurgy at Nundydroog Mill, KGF. 18BHARAT GOLD MINES LIMITED
(A GOVERNMENT OF INDIA ENTERPRISE)
MINING SCHEME FOR CHIGARGUNTA MINE NO.1,
CHITTOOR DISTRICT, AP
CERT! APPLICANT
Certfied that provisions of Mines Act, Rules and Regulations made
thereunder have been observed in the mining scheme and where
specific permissions are required, the applicant will approach the
Director General of Mines Safety.
The Mining Scheme has been prepared in full consultation with me
and | have understood its contents and agree to implement the same
in accordance with the law.
\
=i
MANAGING DIRECTOR,
BHARAT GOLD MINES LIMITED.CERTIFICATE OF RECOGNITION. AS
, QUALIFIED PERSON To PREPARE: ‘MINING PLANS
| (Undo Rul 22) of Minar Cogenion Rue 1960
i ;
We piaeant GOLD NT Dana faving
OLA COLD JBIRLDS y ARNATAKA . 1
registered offve dh ne Rae aceon td,
ie of the quel ifeations and expericince of
[tate given satfertny evidence
[afer oy pss 1 vey grated eatin "ander Pale 22 (¢) of the
Vancal Convesuon ‘Tinks 1990 as a Qualified Porson to prepare
Meaney “Plans.
PAU Fe emer mt
hase to dgag tl
2d spnpasiny iio iw
done ESIC na NT
vente at wifes
Regions Controller of Mines
i vores te itt Indian Bureau of Mines
1 BANGALORE.bebe eeee
Frei Barres GE MED
neg. No. wav/nNG/032/80/Biaate
WD upto 12.7.1994.. HRN
yore
List of Key persons-35 050 erp
fst i
1. TMP Cheety, Dy. General Manag
2. Gs Barayaniony Honages EARaNBRECEY I, «
3. Raniendra Gupta, Manager, i
1. phanvic singh, Manager; /
( ratsnao) :
RPSL. CONTROLLER: OF/ NINES
‘TnH/ Bangalore,”
ae ‘
rhe name of S/Shri Sanbasiva, Rae &
sneikanen 3 Steingarputale have been dele tee
srth reference te party's letter, under file
GOES bya22o3 dated Revenber 7" Stiy 1992
tet
Roy. Noe ROP/BNG/032/80/B valid upto 12.7,1996
7 pee a
s/shet, a fees
fc Marayanan, Dy.Gen.Managex (FS) ,
Haneniea Gupta, Dy en, Manager (MP & 75)
Shiney Singh, Manager (tinea) +
rie yaue of Sri EMP Chetty hae been deleted
Lite ty) wiles the party's Letter dated 12.10.9
ke lew <4 aie
f
toy to jv varie Reghiconteaiter fé tine
eee BE INA) Pe aceftsn
T+ bet (en raod
RAGES CONTROLLER OF HINES! eel
|
i
ft
With segerence te the party's etter Nou163 0/1999-2000
dated 7.4.99, the Cést of key persons is given betow
,
+ Shae Hamendia Gupta, Managing Dineeton }"; jj
fre Bat eiuend Manat, DyyGenyHgn, (Prodne)
‘Wor Avan shade, Ug, Cenérat Mandger(Paddn, |
ven Ler
wae ne eoLIST OF ANNEXURES
Annexure Description
No
|. Review of progress of work, deviations & justifications
Il. Statement showing Lode/Block-wise category-wise status of
insitu ore reserves of Chigargunta Mine No.2 as on 1.4.1999.
Il Gold metallurgy in Nundydroog Mill, KGF.Plate
No.
10
"
2
LIST OF PLATES
Title
Longitudinal vertical section showing ore reserve panels of Mine No.1,
Block INIE & IVE, VE and BB, E-2 lode (1:1000)
Longitudinal vertical section showing ore reserve panels of Mine No.1,
Block Ill (W) (1:1000),
Longitudinal vertical section showing ventilation, pumping system,
Proposed developments and production, Mine No.1, Blocks Ill E & IVE
and BB, E-2 lode (1:1000).
Transverse section showing nature of orebody, overlying & underlying
lithounits for'F’, 'E', ‘D’, & 'C’ ore shoots, Mine No.1, E-2 lode (1:5000).
Part Underground geological plan of 2", 3%, 4" & 5'" Levels, Mine No.1 E-
2 lode, N825 to N1000 (1:200).
Part underground geological plan of 2", 3" 4" & 5" levels, Mine No.1, E-2
lode, N 1000 to N 1320 (1:20).
Part underground geological plan of 1%, 2, and 3" levels of Mine No.1
E-2 lode, N 1320 to N 1800 (1:20),
Part underground geological plan of 1%, 2”, 3 & 4" levels of Mine No.1, E-
2 lode, N 1800 to N 2180 (1:200).
Part underground geological plan of 2", 3 and 4" levels of Mine No.1, E~
lode N 2080 to N 2260 (1:20) .
Part underground assay plan of 3“ level, of Mine No.1 E-2 lode, N 1320 to
N1760 (1:20),
Part underground assay plan of 3" Level of Mine No.1, E-2 lode, N 1760 to
N 1860 (1:200)1) Plart underground assay pan of 3" level of Mine No.1, E-2 lode, N 1880 to
N 2140 (1 200).
underground say plan of 4” level of Mine No.1, E-2 lode, N 932 to N
4 (1.200)
3 OP
'
|
A Put underground assay pian of 4 level of Mine No.1, E-2 lode, N 1320 to
1660 (1-200)
Pant of assay plan: of 4" level of Mine No.1, E-2 lode, N 1660 to N 1880
(1.200)
Purtol assay plan of 4" level of Mine No.1, E-2 lode, N 1760 to N 2123
17 Partofassay plan of 4" level of Mine No.1, E-2 lode, N 2060 to N 2267
1) Underground assay plan of 8" level of Mine No.1, E-2 lode, N 960 to N
1150
1 Landuse and surface layout plan (1: 5000)
10 Process Flow sheet of fundydroog Mill4
BHARAT GOLD MINES LIMITED
(A GOVERNMENT OF INDIA ENTERPRISE)
CHIGARGUNTA MINE NO.1
OUTLINE OF SCHEME OF MINING
(Being submilled under Rule 12 of MCDR)
PARTI
LO REVIEW QF MINING PLAN:
11 Nome of the Mine Chigargunta Mine No. 1
Chittoor District,
Andhra Pradesh,
12 Pavticulars of approval of + IBM lelter No.659(134) Gold - 93/NLR
mining plan daled 6.2.95
14 Date of commencement of 2 1* April 1995
huining operations:
14 owes of compliance position : All satient features of the approved
hf salient features of the mining mining plan have been taken note of
ancl conditions imposed ifany. and complied with. There has been
no violation of any significant
provisions of MCDR, 1988 which have +
bearing an mine planning & design,
14 Rowew of important chapters + A review of importent chapters of
hf approved mining plan approved mining plan highlighting the
progress, deviations and justifications
thereof is given in the Annexure - |
submitted herewith,20
wy
PART-II
PROPOSAL UNDER SCHEME OF M'N'NG FOR THE NEXT FIVE YEARS
Name and Address of the
applicant
Name and address,
Registration number of ROP'S —
together with validity
dale/persons employees under
tule 42(1} who has. prepared
the mining scheme.
Registration No.
Minerals to be mined
Area and date of expiry of
lease
Date of expiry of 5 years period:
for which approved on the last
occasion
Sri R. Gupta,
Managing Director,
Bharat Gold Mines Limited
“Suvarna Bhavan’,
OORGAUM POST,
Kolar Gold Field-663120,
KARNATAKA STATE
PHONE : (Off) - 8153-60274
(Res) - 8153-60311/61425
FAX: 6153-60330
1. Sri B.C, Manet,
Dy. General Manager (Sefely),
Bharat Gold Mines Lid., Suvarma
Bhavan, Oorgaum Post,
Kolar Gold Field-563120,
KARNATAKA
2. Sri Ajay Ghade,
‘Ag, Dy. General Manager (Prod.),
Bharat Gold Mines Lid., Suvama
Bhavan, Oorgaum Post,
Kolar Gold Field-563120,
KARNATAKA STATE
RQPIBNGI032/88/B valid upto
12,7,2000
Gold &
223.0 Heotares (551 Acres)
20 years expiring on 30.8.2008.
31.3.199930
34
32
RESERVES
Category-wise ore reserves est
details:
The details of ore reserves of
timated in the earlier mining plan with grade
Chigargunta Mine No.1 estimated as on 1%
Apt 1994 and approved in the mining plan submited earlier are aa given
below,
1.= Ore Tonnes in Lakhs, git. = Grade gramsftonne (insitu)
Lode ~ Developed | Proved | Probable | Possible Total
Block
t [ot | [ott Tek tet
E-2 Lode:
Boundary 0.16| 7.0|1.15| 47} 238] 49 -; -| 369] 4.9
VE 958 61/235[541 435] 49] 1.62/45 8.80] 50
WESIVE = -| 0.80] 53/704] 60] asoles 2.24
Lode Total [0.74] 55/410] 52 777| 50) 212153] 1473
‘Contact
lode
UW) 014) 54/025) 52| 204] 57] o14 4.8) 2.57} 56.
Mine Total [0.68] 557435] 52/981 $2] 2.26] 5.2] 17.30] 52
Depletion of reserves:
The year-wise depletion of ore reserves is 2s given below:
Deplelion of ore
Reserves
Year Lakn | Grade git Remarks
tonnes
1904-55 031 54 |The depletion of
1995-98 035 48 | reserves are from E-
1996-97 0.30 3.9 | 2 lode ie. Boundary
1987-98 032 4.5 | Biock, VE and INE &
1998.98 0.35 48 __| IVE Blocks oni
Total 163 464.3 Additional reserves established category-wise (with basis and
parameters cons’ tered)
During the period 1864-95 to 1998-99, a total of 1.63 lakh tonnes at
46 gft. (insitu) grade resource was depleted. The exploratory work
carried out on E-2 lode resulted in upgradation of lower category of
reserves to higher category of reserves and a net addition of 0.90 lakh
tonnes at 4.1 git to the ore reserves. The details are as given below.
Depletion Addition of
of reserves (after
Category Status Status. reserves: considering
of ason as on during depletion &
foserves 1.4.1994 1.4.99 1994-95 to final status as
1998-99 on 1.4.99)
Tonnes | Grade | Tonnes] Grade |Tonne | Grade | Tonnes Grede|
in Lakh git in Lakh git s oft inLakh | g/t.
in Lakh
Uovelope | 068, 55/345. 53]} 163] 46|)
4
Proved | 4.35 52| 2.92 5.01} d
Probable 9.81 5.2 8.58 5.2 } 090 41
Ponsible 226/52| 162] 53 1
[otal 17.30 5.2| 16.57 52] 163 46[ 090, 4
The basis of estimation of different categories of reserves as on
1.41989 is on the additional sample and geological data generated by the
exploratory developments, sub-levels and orebody delineation stripping
carried out in different levels of E-2 lode blocks.
The parameters used in defining the different categories of reserves
ind estimation of grade and width of ore bodies are the same as used in
the approved mining plan submitted earlier,
)4 Calegory-wise updated reserves with grade’
The status of ore reserves updated as on 1.4.1999 is given in the
Annexure-I40
44
42
43
44
CONCEPTUAL MINING PLAN
Ore Reserves base for future mining operation:
As on 1.4.1999, the mine has a total reserve of 16.57 lakh tonnes at 5.3
Git insitu grade. Out of the above reserves, E-2 lade blocks constitute a
total of 14.0 lakh tonnes at 5.1 git insitu grade and contact lode
Consistutes a total of 2.57 lakh tonnes at 5.6 git grade. These reserves
‘would be the base for planning the future production of ore.
Proposed production Scheme:
The average rate of production of ore proposed during the ensuing 5
years from the mine is around 60,000 tonnes per year. This has boon
fixed by considering the extent of mechanisation, method of mining,
haulage system of ore, capacities of the shafts for hoisting the ore/waste
rock from underground to surface, and the possible financial constraints
for replacement of machineries.
Proposed development programme:
The mining operation during the ensuing 5 years would be on E-2 lode .
Dlocks only. The exploratory development in Sth level would be continued
towards north from the Boundary Shaft and ultimately it will be holed to the
drive advancing towards south from a winze located at N 1615, The
Proved category of reserves would be upgraded by developing sub-levels
and ore body delineation stripping where the ore body is wider than the
drive width,
The developed and proved ore reserves on E-2 lode above Sth level»
would be 6.0 lakh tonnes at §.4 g/t grade insitu. During the ensuing 5
years, only 3.0 lakh tonnes are proposed to be produced from the mine
leaving a balance of 3.0 lakh tonnes at the end of the 5th year.
Exploration programme
Sufficient exploration works by way of geological mapping,
pitting/trenching, surface diamond drilling has already been carried out in
the Tease hold area, earlier by GSIMECL. No additional surface
exploration works are proposed during the next § years period,i
9
| the underground, exploratory ¢2velopment in progress at Sth level
wuld be continued ‘and the ere body contact will be explored by cross-
cuts placed at regularirequired intervals. Where ore body contacts are
Uolined by cross cuts, stripping the ground upto the contact of orebody
would be carried out, Pub tevels between two primary levels would be
dovoloped and the ore reserved would be firmed up/upgraded,
Underground exploration works required to be carried out below Sth
‘ovel would be planned in 4th/Sth year of this mining scheme if adequate
tinanicial support from the Government of India is assured and also on the
{tnanciat viability of continuing the mining operation under the prevailing
old price and the cost of operation.
tnvironmentat control measures:
Aout 25 m to 30 m of barrier from surface would be left while mining to
avoid the land subsidence in the mined oul area,
Oul of the total 223 Hectares lease area about 163 Hecleres lease
‘wea ts available for afforestation. During the previous 5 years a total of
6 4-Foctares land has been covered by afforestation
The company envisaged to expand the afforestation in lease area by
4.5 hectares per year in the ensuing 5 years depending on the financial
position,
MINING.
ww description of present mining methods:
Ine mining is being worked by underground mining method. The
uillsrent stoping methods adopted for are preduction are mentioned below:
fh} tn case of ore body having more than 3 m width, Blast hole open
stope/vertical crater retreat (VCR) method i used by making foot
wall haulage & draw cross cuts (for drawing the ore from the stope).
b) In case of ore body having less than 3m width, sub-level open
slope method is used by making footwall haulage draw cross cuts
(for drawing ore from the stope} or by making “finger raises’ (lor
drawing ore from stope).63
10 5
5.2 Year-wise developments for the next § years:
The company being dectared as financially “sick” has been referred to
BIER and the capital funds have been cut drastically. The final decision of
BIFR is being awaited
‘The proposed 5 years development programme is based on the
assumption that the’ company would continue the mining in this mine with
em firencial supeort from the govt.
‘The development programme is as shown (Ref. Plate - 3) below:
Drive Footwall Haulage & Raise/Winze Shaft
Year * Ore ‘Cross cut (Waste rock) | Ore/Waste Rock | sinki ig
cen) (o) (en) (m)_|
E-2 Lode, Boundary Block, Block VE, Block HIE & IVE 2
1999-2000 605 520 a 166. =
2000-2004 525 420 279 -
2001-2002 200, 420 105, =
2002-2003, : 220, 20 =
2003-2004 - = =
Contact Lode, Block nit):
No development works are envisaged in this part of mine during 1999-2000
to 2003-04 as this would require additional financial requirement to dewater the
mine equip the shafts and procurement of drillingfblastinglloading equipments
as well as compressors end additional power supply.
Year-wise production programme for next 5 years:
The production programme for the next § years would be limited to E-2 lode
blocks cnly. The average annus! production of 60,000 tonnes is envisaged
from the mine. The production details are as given below and the same is
shown in plate 3.u
PRODUCTION (ORE IN TONNES)
Yoors | Developmenv/Stope ‘Stope Total
3 i. preparation
15)09.2000 13890 47000 e080 |
2000-2001 12450 47600 ‘60050
9620, 50400 60220
1700 58300 60000
= ‘60000 60000
PRODUCTION {WASTE ROCK IN TONNES)
‘gi20
6540
fz 5040
102-2003 2640
feos: 0.2004 :
|) production is envisaged from contact lode (Block Ill W) during the pariod,
HANDLING OF WASTE/SUB-GRADE MATERIAL:
he rate of yearly praduction of waste rock is shown under SI.No.5.3 of this
ftp ‘The waste rock generation in the mine is mainly from foot-wall
slevelopment/cross-cuts and driving in waste rock in between two ore shoots.
Ihe waste rock generated wil be hoisted to surface and dumped in the
specified area earmarked for the same near South Boundary Shaft and East
Chigargunta Shatts,
‘he sub-grade ore generated while mining will be transported to
‘Wtnllurgical plant at KGF for extraction of gold. No stock pile of sub-grade ore
hy onvisaged at the mine.7.0
m4
7.2
8.0
12
USE OF MINERAL.
The ore produced from the mine will be transported to KGF where the
metallurgical plant is located. The ore will be treated for extraction of gold
bullion. A small quantity of silver is associated with the gold. The Dorr bullion
is sold in the open market
The sub-grade material generated during the development stage also will be
shifted to the metallurgical plant for the extraction of the metal. No stock piling
of sub-grade ore is proposed,
MINERAL BENEFICIATION
‘There has been certain changes in the mineral beneficiation methodology
adopted earlier. The changes incorporated in the sysiom of beneficiation ere-
(i) Grinding of ore Single stage grinding introducing a
Ball Mill of 000 tpd capacity. This has
replaced the earlier primary and
secondary stage grinding by pebble
mills.
(ii) Concentration of metal “Knelson concentrator" has been
introduced to get the gold concentrate
after grinding of ore. The has replaced
the blanket tables used earlier
A delailed note covering the different stages of metallurgical treatment
involved and a flow-sheet of the circuit are in the Annexure-lll and plate 20.10
ENVIRONMENT MANAGEMENT PLAN:
13
Proposals as per | Position at the | Proposal for the.
Items approved mining | end next five years
plan of 5 years of plan
mining period
plan period
1 2 3 4 _|
Top soil storage &
prevention and uti-
Not applicable as the mining is by underground mining
plugs
lisation method.
Waste dump Proposed to Waste rock gene- | Will be continued
manage-ment dump at the rated has been _ | as envisaged in
South Boundary | dumped at SBS & | the mining plan
& East ECS as proposed
Chigargunta in the approved
shafts in the mining plan
specified area
‘Afforestation pro-_| Proposed Covered only 6.4 | Proposed to
gramme with afforestation @ | Hectares due to | cover
precautions 20 Hectares severe financial afforestation @
proposed for per year in 5 crisis. 45
survival & protec- | years Hectares per
tions of plantation. year.
Quantity of air Free from dust__| Free from dust _| Free from dust
Noist level Within the Proposed to be
permis-sible Maintained as —_| maintained as per
limits below
Vibration level | ground. Use of _| proposed the approved
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ANNEXURE III
GOLD METALLURGY AT NUNDYDROOG MILL, KGF.
There is no metallurgical plantat the mine site and the ore is transported by
‘trucks to Nundydroog Mill at KGF for treatment and gold recovery.
The -11" ROM ore received at coarse-ore-bin of crusher house is reduced to -
3/4" in three stages of crushing. The first stage of crushing is done by a Jaw crusher
followed by a 4.1/4" Symons cone crusher. Buth of these are in open circuit. The third
stage of crushing is effected by two 4.1/4" cone crushers, in closed circuit with a
vibrat ng screen
The crushed product (75% - 3/4" by Wt.) is stored in mill bin of 1000 t. capacity.
A ball mill in closed circuit with hydrocyclone reduces this .ore to 75% - 20H. The
under‘low of hydrocyclones (two operating & one standby) is passad to a 30" Knelson
concentrator through a 2 mm Wedge-wire screen, incorporated in the circulating load
Circuit, The hydrocyclone overflow at 1.25 to 1.35 PSG is taken to froth-flotation cells,
The gald-bearing sulfide minerals are floated as concentrates by conditioning the pulp
with copper sulfate and potassium amyl xanthate. Pine oil is used as a frother and
sodium carbonate and sodium silicate serve as pH modifier & dispersant. The tailings
from the flotation forms the major part of the tailing (about 90%) disposed to tailing
dumps
The sulfide concentrates are pumped to a thickener for dewatering, The
thickened pullp at 1.5 - 1.6 PSG is pumped to leaching tanks. There are 8 leaching
tanks and the first tank is used for the addition of milk-of-lime to maintain a pH of 10.5,
The next two tanks are used as pre-aeration tanks, wherein compressed air is injected
& the tank stirred, in order to oxidise all the sulfide ions. Sodium cyanide is added in
the fourth tank as the leachant. Another dose of cyanide is added in the sixth tank to
maintain the free cyanide content of the discharge of eigth tank at >0.1 ppm. The pulp
freely flows by overflow from one tank to the other.
The pregnant pulp is then passed through carbon-in-pulp (CIP) contactors.
Activated carbon adsorbs gold from the liquor phase. The depleted pulp forms the
second minor stream of tailings (~10%), disposed to tailing dumps. The pulp19
is treated with bleaching powder or eyanokill to bring down the free-CN content to less
the 0.02 ppm in effluent-treatment-plant and then discharged to tailing dumps. The
tailings are allowed to settle and the clear water is taken back to the mill for re-use.
The loaded carbon in the CIP contactors is periodically removed & stripped with
hot alkaline solution of cyanide at 95 degree C. The hot gold bearing liquor is
Circulated to the electrolytic cells, wherein steel-wool is used as cathodes & punched
Stainless steel plates as anodes’ Gold gets deposited on the steel-wool along with
silver & minor amount of copper. The steel-wool is removed periodically to be acid
treated, smelted with the fluxes and refined in the smelter to obtain bullion,
The stripped carbon is acid washed & then re-activated in a rotating kiln at 700
degree C. The re-activated carbon is screened to remove - 12: fines & reused in CIP
contactors,
The Knelson concentrator yields a gold enriched material, which is washed
every 2 hours from the Knelson & then it is cyanided in concentration cones. The
Pregnant liquor is circulated in electrolytic cells & gold is deposited on steel-wool,
The gold concentrates, steel-wool or special quartz (ore with visible gold strings)
are smelted in the smelter at 1200-1300 degree C. The fluxes used are borax, sand,
nitre, & soda. The concentrates are mixed thoroughly & charged into the graphite
crucibles in pil furnaces. Gold with silver separates out as bullion & settles at the
bottom. The bullion is poured in the form of buttons & twice in a month these
buttons are re-melted & cast as bars. The bar-melt is sampled & assayed to get the
fineness. Generally the fineness is about 890-910. "+c. ++ Sneek isin PLar Ea