PROPOSAL FOR

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM

WASTE OF PRIVATE MINING IN BENISHANGUL GUMUZ

REGIONAL STATE

SUBMITTED TO: - BENISHANGUL GUMUZ REGIONAL

STATE MINERAL RESOURCES DEVELOPMENT AGENCY.

PREPARED BY: ABDURAZIKE ALMAHDI KALIFA

CONSULTANCY SERVICE PLC

July, 2021

Assosa, Ethiopia
SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING
 Contents
1. Introduction..............................................................................................................................3

2. Objective of the project............................................................................................................4

2.1. General objective..................................................................................................................4

2.2. Specific objective..............................................................................................................4

3. Location of the project area......................................................................................................4

3.1. Location and Accessibility................................................................................................4

3.2. Climate and vegetation......................................................................................................5

3.3. Accessibility......................................................................................................................5

3.4. Geological setting.............................................................................................................5

4. Production Potential estimation................................................................................................7

5. Mining Resource Requirement....................................................................................................8

5.1. Equipment and Machinery................................................................................................8

5.2. Building and Civil construction works.............................................................................8

5.3. Office Furniture and Equipment....................................................................................8

5.4. Man power requirement....................................................................................................9

5.5. Fuel and lubricants consumption....................................................................................10

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING

 1. Introduction
The production of gold and other metals has increased dramatically in recent decades because
very vital to the production of goods, services and infrastructure; it advances the quality of lives
in the society. However, the possible hazard of waste and radioactivity generated by mining,
dumping and tailing, has called on the society to find ways of seeking remedy that will
adequately treat mining waste from mine dump, tailing and abandoned mine. Mine waste reuse
and recycling in mining industries could offer cost-effective benefits through offsetting raw
material requirements and decreasing the volumes of waste to be managed.

All Gold Fields’ mines and projects have risk based procedures and processes in place. These are
part of their Environmental Management Systems, which ensure that hazardous waste is
collected, stored, transported and disposed of in a controlled manner that prevents environmental
impact. Our hazardous waste is managed in accordance with statutory requirements and
hazardous wastes are disposed of at designated, specially constructed, controlled and permitted
hazardous landfill sites. Where remote mine operations do not have access to hazardous landfill
sites, hazardous wastes are stored and / or disposed of in designated hazardous waste
management landfill cells that are engineered to safely contain the waste, prevent environmental
and potential social impacts, are rigorously managed and are permitted by the regulator.The
development of technologies that contribute to the proper disposal and treatment of waste
material is not just an environmental need, but an opportunity for the recovery and recycle of
valuable metals and critical materials.

The reprocessing of wastes and old tailings with moderate to low content of gold offers not only
a business opportunity, but also enhances the quality of the surrounding environment, changes
the land use and offers a wide range of socio-economic benefits.

Saifis established to conduct of business toRe-extraction and production of gold mining from of
the remaining waste sand ball of private mining company in BenishangulGumuz Regional State
to contribute for economic development and minimize environmental hazard of mining
production.

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING

 2. Objective of the project
2.1. General objective
Re-extraction and production of gold mining from of the remaining waste sand ball of private
mining company.

2.2. Specific objective

1. Reproduce or re-extraction of gold from waste sand ball
2. To reduce any adverse effects on the environment due to the mining waste.
3. Mine waste reuse and recycling in mining industries.
4. Creating job opportunities for the surrounding dwellers, and
5. To generate national income

3. Location of the project area

3.1. Location and Accessibility

The project area will be in Benishangulgumuz regional state north western part of Ethiopia. The
region Access from Addis Ababa, 660 km from Addis Ababa and accessed by all asphalt road
though Addis Ababa-Nekemt-Gimbi- AssosaKurmuk

Figure 1: map of project area

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING

 3.2. Climate and vegetation
According to the national atlas of Ethiopia (1981), the climate conditions in the equatorial
regions are strongly influenced by their altitude. The atlas classified the climatic regions of
Ethiopia in to dega, weinadega, kola and bereha. Adopting this classification, the targeted area is
typified by kola-bereha climate zone with sharp changes from rainy season (April to September)
to dry season.There is a great variation in the climate condition in the area with temperatures
ranging from 15 0 in January to 45 0 in April to May. It is very hot in the valleys and lowlands,
and after the rainy season, which lasts from mid-June to mid October. At the rainy season
malaria is prevalent.
Thorny bushes, shrubs, acacia, elephant grass and bamboo trees are some of the indigenous
vegetation of the area. The density varies from place to place mainly due to the underlying litho
logy, seasonal change and vicinity to the main streams. This vegetation contribute significant
role to keep the ecological system for wild life and honeybees. On the other hand, the local
people set fire while hunting, honey harvesting and clearing their farmland in dry season as a
result significant forest cover is destroyed.
3.3. Accessibility
Assosa town, the capital of BenishagulGumuz Region is found 659km west of Addis Ababa and
accessed through Addis Ababa-Assoa main asphalt road.
3.4. Geological setting
The Geological Survey of Ethiopia (GSE) studied the Precambrian geology of western Ethiopia
at different scales (UNDP, 1972; de Wit, 1977b; Kazmin, 1978; Kazmin et al., 1979; Davidson,
1983; Amenti, 1989; Mengesha, 1987; Mengesha and Berhe, 1987; Ayalew and Moore, 1989,
Tadesse and Tsegaye, 2000; Solomon and Mulugeta, 2000; Getahun, 2002). Accordingly, the
Precambrian of western Ethiopia consists of: - (i) high grade gneiss and migmatites, (ii) low-
grade metavolcano-sedimentary rocks and associated intrusive rocks and, (iii) metavolcano-
sediments and associated mafic-ultramafic rocks of probable ophiolitic origin.
Forming part of the Western Ethiopian Metamorphic Belt, the geology of the project area
consists of low grade, greenschistfacies, metavolcano -metasedimentary sequences, intruded by
syn and post-tectonic intermediate to acidic intrusive rocks. The metamorphic belts are in some
instances overlain by Tertiary volcanic sequences.

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING

The Metasediments in the area are interbeds of metacherts, metatuff carbonates and minor
phyllites. There are also psammopelitic, argillaceous, tuffaceous and sericiticphyllite, chlorite
sericite schist with minor carbonate beds, gray and limonitic chert, layered chert and associated
argillaceous sediments, as well as breciatedmetacherts. Calcitic, siliceous and dolomitic marbles
are also dominantly exposed in the area. The marbles are generally fine to coarse grained, light to
dark colour, siliceous calcitic dolomitic in composition, wavy and discontinuous in outcrop
pattern. In some outcrops, the marbles are interlayered with tuffaceousmetavolcanics.
The metavolcanics are felsic metatuff with phyllitic to sericitic texture. When enclosed within
the competent carbonate rocks, the felsic metavolcanics are massive with calcsilicate
composition suggesting compositional mixing during sub areal deposition. The basic
metavolcanics are mostly green schists (chlorite schists) composed of epidote, chlorite, actinolite
and minor plagioclases, and generally foliated and rarely massive, fine to medium grained rocks.
These rocks generally enclose the marble layers at a regional scale. However, some concordant
and rarely discordant layers of green schist’s occur within the carbonate layers without any clear
evidence of gradation. The metamorphic rocks are densely dotted by both mafic and felsic
intrusives ranging from Post-tectonic granites and leach gabbros and associated aplitic dikes and
quartz veins to deformed and metamorphosed granites and gabbros.
The most dominant regional structures are mostly vertical to sub vertical foliations with a
regional trend ranging between N340°E and N35°E. Some minor folds, shearing and lineaments
generally trending NW-SE are also common in the vicinity of SirbaAbay. Two sets of faults
oriented NE-SW and E-W affect the carbonatitic sediments and the metavolcanics.
The Precambrian rocks have received attention in the current exploration activity for precious
metals and dimension stones mineralization.

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING

 Figure 2: Geological map of Ethiopia

4. Production Potential estimation

There are many gold producing private companies in the region. This company left sufficient
sand ball from the past have left in the ground, or left gold in waste deposits.
Therefore, the resource of the area isestimated using the formula table 2. From total volume of
the sand waste it is calculated by formula of triangle. Therefore, the volume calculated 250,000
m3 will be minable.
Washable Ore Average grad Resource of gold Recovery Factor Remarks
volumeof (m3) (g/m3) (kg) (75%)
250,000 0.5 125 93.75 kg On the main
quartz vein and
host rock

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING

 5. Mining Resource Requirement

5.1. Equipment and Machinery

The required equipment and machinery for the envisage project are given in the following table.
Table 1: Equipment and machinery
No Equipment description Quantity Unit price (Birr) Total price (Birr)

1 Complete set of gold washing plant 1 3,000,000 3,000,000

2 Chain Excavator 1 2,500,000 2,500,000
3 Dump trucks 1 2,000,000 2,000,000
4 Generator 1 200,000 200,000
5 4WD Pickup 1 1,000,000 1,000,000
6 Pump with accessory 1 300,000 300,000
7 300000

5.2. Building and Civil construction works

This includes access road construction residential house, workshop, garage, canteen etc. and the
detailed is given in the following table.

Table 2:Building and civil construction works

No Description Unit Qty Unit Price (Birr) Total Cost (Birr)
1 Access/ approach road Km 2 125,000 250,000
2 Administration office m2 50 3,500 175,000
3 Store multipurpose m2 100 3,000 300,000
4 Canteen/ dining room/ m2 50 2,500 125,000

Total 0.00

5.3. Office Furniture and Equipment

For office equipment and furniture are required for supporting staff at head office and branch
office. These are office furniture used to facilitate office activities that enhance the office
performance for the plant site. The list with the corresponding cost appears in the table below.

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING

Table 3 Office equipment, furniture and stationery (birr)

No. Man power description Quantity(Each) Unit Price(Birr) Total Price(Birr)

1 Medium back swivel 3 2,000 6,000

chair
2 Office Table 3 1,000 3,000
3 Guest chair with armrest 2 1,500 3,000
4 Safe Box 1 20,000 20,000
5 File cabinet 2 3,000 6,000
6 Bookshelf 1 1,000 1,000
7 Desktop Computer 1 12,000 12,000
8 Printer 1 10,000 10,000
9 Adding machine 2 500 1,000
10 Digital Camera 1 5,000 5,000
11 Miscellaneous 1 10,000 10,000
12 Digital balance 1 15000 15,000
Total 19.00

5.4. Man power requirement

Table 4 Manpower requirement

Monthly salary Total annual salary

No. Title Quantity
in birr (in Birr)
 A) Indirect Labor
Finance and Administration
1 1 6000 72000
manager
2 Secretary 1 3000 36000
3 Accountant 1 5000 60000
4 Cashier 1 3500 42000
5 Store man 1 2500 30000
6 Security/ Guards 4 2000 96000
7 Light vehicle driver 1 4,000 48000

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING

 8 Heavy truck drivers 1 5,000 60000
9 Cook 2 3000 72000
Subtotal (A) 22 34000
B) Direct Labor
1 Operation manager 1 10000 120000
2 Geologist 1 9000 108000
3 Mining technicians 1 7000 84000
Washing Machine /Plant
4 2 5000 120000
/Operators
5 Excavator operator 1 5000 120000
6 General Mechanic 1 4000 48000
7 Pump/generator operator 1 2000 24000
8 Welder and Electrician 1 3000 36000
9 Daily Labor 10 100 12000
Subtotal (B) 25 45100
Grand Total (A + B) 47 1,992,000

5.5. Fuel and lubricants consumption

Fuel and lubricant consumption is computed considering machinery and equipment quantity.
Consumption per hour by each machinery and working time are the factors considered for
calculation. Lubricant is taken as 5% of fuel cost.
Table 5 Fuel and consumption
No Machine Qy Consumpt Working Annual Price Total Price
Description ion hours Per consumption Birr/lit (Birr)
(lit/hour year (liter)
Hydraulic/
1 1 20 2304 46080 18 829,440
excavator
2 Dump trucks, 1 20 2304 46080 18 829,440
Pump & 2304
3 1 10 23040 18 414720
generator
4 Light vehicles 1 15 1000 15000 18 270000
SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING
 TOTAL 4

Lubricant 5% of fuel 117,180

GRAND TOTAL 2,460,780

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING

SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING
SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING
SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING
SAIF RE-EXTRACTION AND PRODUCTION OF GOLD FROM WASTE OF PRIVATE MINING