Mining Breaks

West Australian explorer Calidus aims to move on towards a bankable level of detail on its Warrawoona gold project, anticipating regulatory approvals in H2 2020 for what’s shaping up to be a 97,000ozpa producer over a 6-year life.
It follows a PFS that calculates $A95M capital cost and AISC of $1,159/oz LOM.
The Klondyke openpit and underground deposits at Warrawoona, 25km SE of Marble Bar, hold a probable mining reserve of 418,000oz (8.9Mt @ 1.5g/t).
The study calculates a LOM pre-tax cashflow of $367M and post-tax NPV of $108M at 8% discount and IRR of 33% at a $1,800/oz gold price.

Graphite producer Syrah says minor equipment issues lie behind an 8% fall in June qtr (Q2) production to 44,000t natural flake graphite at its Balama project in Mozambique, down from 48,000t in the March qtr.
Lower production volumes resulted in C1 cash costs rising to $US567/t through the first half, while sales achieved $469/t in Q1 and $457/t in Q2.
With the equipment issues now remedied, Syrah maintains its CY2019 production target of 205,000-245,000t at costs forecast to trend towards about $400/t by year-end.

Australian miner Red 5 is forecasting more growth in the coming year after posting June year (FY19) production from its WA gold operations of 102,012oz, boosted by Q4 output of 30,098oz, the company’s best result since purchasing the mines in Oct 2017. AISC was $A1,601/oz.
The Darlot and King of the Hills mines are expected to deliver 110,00-120,000oz at $1,350-1,500/oz in FY20.
MD Mark Williams says Red 5 ended the year with cash and bullion of $24.9M as it completes a PFS for stand-alone bulk openpit development at KOTH.

Major shareholder/financier Freefire Technology has come to the aid again of PNG miner Crater Gold, advancing a $A2M loan for ongoing development of the High Grade Zone at its Crater Mountain project in the Eastern Highlands.
Crater may draw-down an initial $0.3M at its option, with the balance of the unsecured loan available on Freefire’s agreement.
MD Russ Parker says the new funding from its long-time supporter enables Crater to continue to advance its PNG projects.

A strong Q4 helped BHP meet revised production guidance for iron ore and copper in the June year (FY19), while it predicts higher output in the coming year.
West Australian iron ore operations regained full capacity after tropical cyclone in March to lift Q4 production to 63Mt, 12% higher than the prior period, and brought its full year total to 238Mt – steady with its FY18 result. Realised prices rose 18% year-on-year to $US66.68/wmt.
BHP predicts production to rise 242-253Mt in FY20.
Copper output was 4% lower at 1.69Mt, with FY20 forecast production 1.7-1.8Mt.
The Kalgoorlie smelter fire in late 2018 cut nickel production by 6% to 87,400t.
Metallurgical coal production was flat at 42Mt, while energy coal dropped 6% to 27Mt.

Canadian-based Fiore Gold has posted record gold production at its Pan openpit mine in Nevada, USA of 11,573oz for the June qtr (Q3FY19), up from 10,759oz in the previous period. Gold sales were 11,504oz (Q2: 10,737oz).
CEO Tim Warman says it was the final quarter for the White Pine county mine as a ROM operation as the new primary crushing circuit comes online.
With Pan running well, Warman says Fiore aims to reach a construction decision by mid-2021 at its adjacent Gold Rock project.

One miner has been rescued but at least 10 others remain trapped more than 1km underground in a coal mine in Pakistan’s Balochistan province following a fire triggered by an electrical short circuit in a cable.
Efforts to reach the trapped men are being hampered by carbon monoxide gas triggered by the fire, the Press Trust of India reports.
The mine, 35km east of Quetta, is run by the state-owned Pakistan Mineral Development Corporation.

Strong demand for high-quality coal has continued to lift the performance of leading Australian producer Yancoal, with June half-year (H1) attributable saleable production running 9% higher at 17.8Mt, up from 16.4Mt in H1FY2018.
YTD sales rose to 16.5Mt, from 15.7Mt pcp, comprising 13.7Mt thermal and 2.8Mt metallurgical coal.
CEO Reinholdt Schmidt says Yancoal remains on target for its 2019 guidance of 35Mt attributable saleable coal at operating costs excluding royalties of $A62.50/t FOB.

European Metals Holdings has attracted CEZ Group, the Czech Republic’s largest company and one of Central Europe’s largest power utilities, as a potential shareholder and co-development partner for its Cinovec lithium-tin project 100km NW of Prague.
MD Keith Coughlan says CEZ’s conditional agreement to provide a EUR2M convertible loan supports the strategy to develop Cinovec in conjunction with Czech industry advancing the national battery and EV industries.
The loan may be converted to shares up to the ASX 20% shareholding limit, above which a takeover offer becomes mandatory.

West Australian explorer Black Cat Syndicate will turn to feasibility work at the Bulong gold project just 25km east of Kalgoorlie after updating its JORC mineral resource to 178,000oz (2.3Mt @ 2.4g/t).
The update comes via a 138% increase in the Myhree deposit to 119,000oz (1.4Mt @ 2.7g/t) by independent consultant Mining Plus.
It includes a high-grade 93,500oz (0.98Mt @ 3g/t) expected to be the principal source for an openpit, with underground mining set to follow.
MD Gareth Solly says the Myhree resource provides a clear pathway towards production, within 18 months of Black Cat’s IPO.

Australian-based lithium miner Galaxy Resources remains on track for full year guidance of 180,000-210,000dmt at its 100%-owned Mt Cattlin project at Ravensthorpe in WA after posting June qtr (Q2FY2019) output of 56,640t @ 6% Li2O, up from 41,874t @ 5.7% in the prior period.
Production cash costs improved to $US337/t FOB (Q1: $453/t), placing Mt Cattlin as one of the world’s lowest-cost lithium concentrate operations.
Despite Galaxy’s focus on improved mine scheduling, ore mined fell to 379,187wmt (437,932t) due to challenging geological conditions in the 2 North East pit.

Shareholders of Canada-based Atlantic Gold have resoundingly approved its $A779M takeover by Aussie St Barbara, with the deal expected to be completed July 22, 2019.
St Barbara is looking towards a 200,000oz pa-plus operation in Canada, primarily from the low-cost Moose River project in Nova Scotia, which produced 91,000oz gold at AISC $731oz in FY2018, after reaching commercial production at its Touquoy openpit in March. Production is expected to more than double as three more pits are developed.

Western Australia-focused Artemis Resources is buying 100% of privateer Rincon Resources for an initial $A2.7M shares plus performance payments, expanding its holdings in N WA’s emerging Paterson Province to 1,140km2, one of the largest landholdings in the region.
Rincon’s main asset is the S Telfer Project, 12km from Newcrest’s giant +25Moz Telfer Gold Mine, the region also including Rio Tinto’s recent Winu gold/copper discovery and Greatland Gold/Newcrest’s Haverion discovery.
Artemis has so far signed a binding share sale/purchase agreement with holders of 67% of Rincon, whose co-founder Zeffron Reeves, will be appointed a non-exec director of Artemis on completion.

Stellar Resources is eyeing potential early production from its 100%-owned flagship Heemskirk Tin Project near Zeehan, Tasmania, Australia, after identifying a maiden 180,000t-220,000t @ 0.8-1.0% tin exploration target to a depth of 100m below the old Razorback Mine pit floor.
Razorback produced about 180,000t @ 0.6% Sn when it last operated between 1975 and 1978. Stellar plans to drill-out the target to an indicated resource and complete an FS within 12 months of raising the necessary funding.
Razorback is one of two satellite tin deposits at its Heemskirk project, the other being nearby St Dizier.

Global miner Rio Tinto is facing over 25% higher capital costs and up to 30 months’ delay in first production from the Oyu Tolgoi copper-gold underground mine in Mongolia as it wrestles with potential stability risks in the previously approved mine design.
With significant below-ground infrastructure already in place, Rio says it’s had to launch new mine design studies after enhanced geotechnical information and data modelling indicated it may have to relocate or remove the currently planned mid-access ore drive, ore handling system and other critical features.
The design work is expected to take until H2 2020, delaying potential first underground production to May 2022-June 2023.
Development capital forecasts have risen to $US6.5-7.2B, up from the previous $5.3B.

The lingering impacts of port infrastructure damage from tropical cyclone Veronica in March and operational issues have seen Rio Tinto sustain an 8% fall in iron ore production and shipments from its Pilbara operations in Western Australia during the June half-year (H1FY2019).
Total ore shipments for the 6 months were 154.6Mt, down from 168.8Mt in H1FY2018.
With infrastructure repairs complete, Rio is maintaining its lowered full year forecast of 320-330Mt – subject to weather.
Cost guidance has been edged up to $US14-15/t, from $13-14/t previously, due to the lower throughput and expectations of higher waste movements.

Central Asian-focused Anglo Asian Mining has overcome declining copper grades in the June qtr (Q2) to lift June half-year total production at its Gedabek gold-copper-silver project in Azerbaijan to 39,905oz AuEq, from 37,349oz in H1FY2018.
Gold production was 34,394oz (33,255oz), copper 963t (587t) and silver 84,586oz (84,785oz).
CEO Reza Vaziri says Anglo Asian expects copper grades to increase for the rest of the year, and maintains FY2019 production guidance of 82,000-86,000oz AuEq.
The company’s net cash position improved 30% to $US15.4M at end-June.

A collaboration agreement with German engineer STEAG Energy Service will advance coal mine/power developer Kibo Energy’s plans for its growing portfolio of power plant projects.
Kibo CEO Louis Coetzee says STEAG’s experience in managing and operating utility-scale power plants will be a perfect strategic fit with its corporate strategy.
STEAG will also provide technical support for Kibo’s discussions with key stakeholders, plant specifications and performance and appointment of EPC contractors.

International tin explorer Elementos is assessing its options after Malaysia’s Perak state government banned the issue of new exploration licences, preventing it from advancing its Temengor project on the site of a long-forgotten 100-year-old mine.
The moratorium has been imposed over concerns about the management of waterways in the northern part of the state. Elementos says the Temengor project area is not at environmental risk, but it falls within the declared geographical range.
Its partner, Ipoh-based Empire Tin Mining, says the government has set no timetable to develop remediation and monitoring measures before reviewing the moratorium.