[miningmx.com] – SPECULATION that Neal Froneman’s Gold One
International is in the market for the Grootvlei mine, currently in the hands of
Pamodzi Gold’s joint liquidators, may raise hopes a lifeline could be cast the way of
the stricken East Rand mine.
But to be honest, it’s hard to see Gold One wanting to take hold of a mine that’s
mostly stripped bare of infrastructure and carrying a host of environmental and
technical liabilities. In any event, history shows that’s not the way Froneman
operates; rather, he’s more likely to pick the eyes out Grootvlei’s orebody.
This was how Gold One went about the acquisition of the property Modder East, an
operation mined since the 1920s. Although Modder East was well worked, Gold One
mines its secondary black reef, which it accessed only after having built new
infrastructure. If Gold One is having a look at Grootvlei, it will be with a view to
following a similar strategy: value ounces using new infrastructure.
Grootvlei is sandwiched between Gold One’s Consolidated Modderfontein Mines in the
north and Nigel Gold Mining company on its southern boundary. Having access to
sections of Grootvlei’s property – presumably the sections unaffected by the
widespread flooding of existing tunnels and shafts – will give Gold One a virtual
monopoly over the traditional East Rand goldfields.
But how to get around the liabilities attendant on Grootvlei?
According to mining law, it’s possible to apply for a prospecting licence over parts of
Grootvlei, which Gold One would want to explore in such a way that the applicant is
freed from liaiblities. The bad news for Grootvlei is that vast swathes of its orebody
will be lost forever to flooding. But perhaps some value can be returned to Grootvlei’s
liquidators and the company’s creditors.
