Mining Breaks

Trans Siberian Gold has posted record annual gold doré production of 45,066oz for the Dec 2020 year (FY/CY20) from its Asacha Gold Mine in Russia, a 3.6% increase on FY/CY19, lifting annual revenue28.3% to a record $81M.
It’s also the company’s 5th consecutive year of increased YoY gold production, exceeding the upper limit of its revised guidance. Silver output, however, fell 29.3% to 78,875oz.
The result was largely the result of an increase in estimated average realised gold price of 29.2% YoY to $1,808oz. The company finished FY/CY 20 with $22M cash.

African-focused explorer IronRidge Resources has outlined a 2Mtpa operation delivering 295,000tpa 6% Li2O spodumene concentrate over an 8-year mine life in a scoping study for its Ewoyaa lithium project in Ghana’s Central Region 100km SW of Accra.
The study calculates $US68M capital cost for a conventional opencut contract mining operation with mobile contract crushing facility and fixed DMS processor, which will target indicated-inferred JORC resources of 14.5Mt @ 1.31% for 189,000t Li2O. Forecast capital payback is under 1 year.
Estimated C1 cash operating costs are $247/t FOB Ghana port, life of mine revenues of over $1.55B, after-tax NPV8% of $345M and IRR of 125%.
CEO Vincent Mascolo says the study confirms Ewoyaa as a transformational asset for the Australian-based company, with very low upfront expenditure utilising existing infrastructure, a simple process route and clear resource upside

Egyptian miner Centamin expects the greater flexibility of its switch to contracted waste mining services will give it greater confidence of meeting its future production targets at its Sukari gold mine.
Centamin posted full year 2020 production of 452,320oz, down from 480,529oz in the previous year but in line with its revised guidance of 445,000-455,000oz. AISC of $US1,036/oz was also in line with its $950-1,050/oz.
Sales of 468,681oz (FY2019: 470,020oz) at $1,766/oz ($1,399/oz) generated revenue of $829M ($658.1M).
FY2021 guidance remains 400,000-430,000oz at $1,150-1,250/oz.

The pressure to rebuild its relationship with traditional landowners following the uproar over its destruction last year of two caves containing links to 46,000 years of human habitation has slowed development plans for Rio Tinto at its Winu copper-gold project in Western Australia.
While continuing a heavy exploration program, with 90,000m of drilling completed on the Paterson Province project in 2020, Rio Tinto resumed land access negotiations, on-country heritage surveys and monitoring late last year after the easing of COVID-19 travel restrictions.
The company previously talked of first production in 2023 but it's now predicting first ore from Winu in 2024 - subject to regulatory approvals, land access and other consents and COVID-19 restrictions.

Turquoise Hill Resources has flagged a big improvement in gold-copper production from its 66%-owned Oyu Tolgoi project in the S Gobi region of Mongolia in the current Dec 2021 (FY/CY 21) year after FY/CY 20 gold-in-conc output fell to 181,858oz from FY/CY19’s 242,00oz, but with copper up to 149,631t from 146,300t and silver to 876,00oz from 867,00oz.
The FY/CY20 result was on mill throughput slipping to 40.2Mt from 40.77Mt due to the processing of more, harder Phase-4B ore. Copper-in-conc sales were down to 137,800t from 149,900t, gold to 150,000oz from 274,000oz and silver to 760,000oz from 896,000ozoz.
But the 66% Rio Tinto-owned company is expecting Oyu Tolgoi to produce 500,000oz-550,000oz gold-in-conc in FY/CY 21 and 160,000t-180,000t of copper from processing of both open pit and underground development material. FY/CY 21 cash costs are expected to be in the range of negative $US0.50/lb copper produced to negative $0.80/lb. Access to higher copper and gold grades in Q4 20 is expected to continue throughout FY/CY 21.

Global major Rio Tinto has overcome weather and COVID-19 disruptions to increase iron ore shipments from its West Australian operations by 1% to 330.6Mt for the year to December 2020, compared to 327.4Mt in FY2019. Total FY2020 production rose to 333.4Mt (FY2019: 326.7Mt).
Rio expects shipments will be 325-340Mt in FY2021, taking into account the technical challenges of transitioning to some 90Mt of production from replacement mines at its Robe Valley, West Angelas and Western Turner Syncline Phase 2 hubs and the start-up of its new Gudai-Darri operation.
But it warns it’s currently unable to predict the impact of the WA government’s law reforms following its destruction of irreplaceable heritage areas.
FY2020 bauxite production rose to 56.1Mt (55.1Mt), aluminium production was 3.18Mt (3.17Mt) and mined copper fell to 527,900t (577,400t).

Caledonia Mining is predicting more growth after posting record gold production at its Blanket mine in Zimbabwe for the Dec year (FY20). Its output of 57,899oz comes at the top end of its revised guidance of 55,000-58,000oz.
CEO Steve Curtis says, with the completion of the Central Shaft commissioning expected in the March qtr, Caledonia expects to produce 61,000-67,000oz if FY2021.

Canadian-based Rockwell Diamonds has outlined procedures for the orderly wind-down of its affairs due to the financial distress arising from the failure and liquidation of its South African subsidiaries in 2017. The company has been in liquidation for nearly three years, with the final liquidation hearing set for May this year.
Rockwell has entered agreements relating to an amalgamation with a company wholly owned by director Mark Bristow.
Shareholders will vote on the amalgamation proposal in early March.

Australian explorer Centrex Metals is negotiating with contractors on quotes for mining and ancillary activities in readiness for an early start to operations at its Ardmore phosphate project near Mount Isa in NW Qld.
Centrex has approvals in place for the proposed mining, stockpiling and marketing of 25,000t of Ardmore ore, with work also under way aimed at selling rock phosphate to domestic and overseas customers.
On completion of the initial mining operation, Centrex says it will use the information on the actual costs of mining to update the project’s DFS.

Significantly higher Q4 production from its Haile (USA) and Macraes (NZ) mines helped international miner OceanaGold deliver gold production of 301,700oz for the year to end-Dec (FY2020).
The result, down from its FY2019 result of 470,600oz, follows the loss of production from its shuttered Didipio project in the Philippines. AISC for the year rose to $US1,276/oz (FY2019: $1,061/oz).
All three producing mines achieved the company’s guidance, with Haile contributing 137,400oz (146,100oz), Macraes 144,500oz (172,500oz) and Waihi in NZ 19,800oz (68,100oz).
President-CEO Michael Holmes predicts stronger year-on-year production in 2021, with first production from the Martha Underground in NZ due at the end of the June 2021 qtr.

West Australian miner Horizon Minerals has emerged debt-free after the early repayment of the $A4M Sparta AG loan facility that funded the successful late-2020 trial mining campaign at its 100%-owned Boorara gold project in Kalgoorlie.
MD Jon Price says the Sparta loan facility in March 2020, when the COVID-19 pandemic was first impacting global debt and equity markets, delivered timely funding at a time when it was difficult to raise capital.
Following the trial mining campaign and its Aug 2020 capital raising, he says Horizon is strongly positioned to complete a consolidated feasibility study for Boorara and continue its extensive drilling campaign.

Localised flooding and road closures caused by tropical cyclone Imogen early this month, and the prospect of more rainfall from TC Kimi, has halted mining operations at Australian miner Laneway Resources’ 100%-owned Agate Creek gold mine.
Laneway says the access restrictions suggest the suspension of mining at the Sherwood openpit will continue to the end of the N Qld wet season, due in March-April.
The current 4,400t of 6g/t ore is due to be processed at the Lorena gold mine CIL processing plant over 10 days. Its target for the mining campaign remains 43,000t @ 6.5g/t, for an expected 9,000oz gold, but is now likely to be weighted to the second stage.

New Century Resources has marked the 500,000t production milestone at its Australian zinc concentrate operation by locking in a $US1.20/lb effective floor price for future output.
The FY21 zinc price hedging, via put contracts, guarantees NCZ the floor price for 100% of the Century mine's March qtr and 50% of June qtr production. The company retains full exposure to further zinc price increases.
The mine at Lawn Hill, 250km NW of Mount Isa, has delivered 500,000t zinc concentrate since NCZ began retreatment in Aug 2018 of tailings from former owner MMG's past operations.
By locking in the benefit of zinc’s strong tail winds, NCZ expects to deliver material EBITDA growth in its Dec qtr report due this month. Sept qtr EBITDA was $A13.2M.

COVID-19 restrictions have reinforced Lithium Australia’s strategy of focusing more on lithium extraction technology by slashing expenditure on its exploration projects in historic mining areas of eastern Germany.
LIT has dropped its exploration licences at Sadisdorf and Eichight because pandemic restrictions made work on them almost impossible in 2020 amid considerable financial commitments. It has yet to decide on its third area, Hegelshöhe.
MD Adrian Griffin says LIT has markedly reduced direct exploration spending and farmed out many assets in Europe. It aims instead to maintain leverage to battery materials in Europe through its lithium extraction, cathode powder production and battery recycling.

New producer GWR is building port stockpiles as it prepares to make the first shipment of high-grade lump and fines product late this month from its 100%-owned C4 deposit at its Wiluna West DSO iron ore project in Western Australia.
GWR says the minesite truck fleet is still being expanded to complete the planned first stage mining, crushing and screening of 1Mt by alliance partner Pilbara Resource Group within 12 months.
A review and discussions with interested parties has begun into the potential to increase Stage 1 production and optimising the Stage 2 mining of the rest of C4’s 21.6Mt @ 60.7% Fe resource.

START THE WEEK: WHAT YOU NEED TO KNOW
Miners around the world are continuing to take a lead role in combating the global COVID-19, with South Africa’s Minerals Council members offering their resources to support the national vaccine rollout and their counterparts in Queensland, Australia proposing to make their isolated mining camps available as quarantine stations.
The South African miners say their significant healthcare infrastructure and delivery capacity can play a major role in the end-to-end planning and roll-out of the vaccine program to assist government and the nation to save lives and save livelihoods.
“While government is primarily responsible for funding the vaccine roll-out and is the single buyer, the industry can play a material role in accelerating the vaccination program on mines and in mining communities,” CEO Roger Baxter says. “This is a critical national effort.”
In Australia, the Queensland Resources Council welcomed a state government suggestion that mining accommodation facilities could be used to house overseas travellers for their compulsory 14-day quarantine on arrival in the country.
Chief executive Ian Macfarlane says the QRC and its members have worked tirelessly to protect workers, their families and mining communities from COVID-19 over the past 11 months.
“The resources industry will cooperate and assist where requested,” he says. “Keeping our workers and the Queensland community safe, particularly in regional areas, will continue to be our priority.”
In Chile, state-owned global copper leader Codelco has revived and intensified precautionary measures in response to an increase in national cases. They include personnel reductions, suspension of some site visits by contractors and suppliers and negotiations with unions on a return to 7-day rosters.

COMMODITIES
LME ($US), Jan 15 –
Aluminium 2,000.50
Copper 7,979.50
Zinc 2,698.50
Nickel 17,970.00
Lead 1,981.00
Tin 21,495.00
Cobalt 37,995.00
Gold 1,830.50
Silver 24.850

COMEX ($US), Jan 15 -
Gold 1,829.90
Silver 24.866
Copper 3.602
Platinum 1,078.70
Palladium 2,395.10

LBMA price data ($US), pm Jan 15 –
Gold 1,839.000
Silver 25.245
Platinum 1,085.000
Palladium 2,423.000

NYMEX ($US) 62% Fe CFR China, Jan 15 –
Iron ore 169.97

YOU MAY HAVE MISSED
(Some articles may be accessible only by subscribers)

• RIO TINTO SET TO BUILD NORTH AMERICA’S FIRST SCANDIUM PLANT
• BHP ORDERED TO SUSPEND CHILEAN MINE OVER WATER IMPACTS 
• BARRICK GOLD KEPT ON TARGET WITH STRONG 2020 FINISH
• WESDOME GOLD HIGHER PRICES OVERCOME LOWER 2020 OUTPUT
• NEWCREST APPROVES $146M EARLY WORKS AT HAVIERON JV
• ELDORADO GOLD FLAGS UP TO 540,000oz GOLD FOR FY25
• TRACKING THE GLOBAL RESOURCES SECTOR IMPACT OF COVID-19

CALENDAR
Conferences -
Jan 20: African Mining Forum Webinar

Companies -
Jan 21: Perseus Mining (1/4)
Jan 21: Northern Star Resources (Q2)

Public holidays -
Jan 18: USA and Territories (Martin Luther King Jr Day)
Jan 19: Georgia, Ethiopia, Eritrea (Epiphany)
Jan 20: Azerbaijan (Martyrs’ Day)
Jan 20: Guinea-Bissau (Heroes Day)
Jan 20: Mali (Army Day)_
Jan 21: Barbados (Errol Barrow Day)
Jan 21: Dominican Republic (Our Lady of Altagracia)
Jan 21: Norway (Princess Ingrid Alexandra Day)
Jan 22: Bolivia (Plurinational State Foundation Day)
Jan 22: Ukraine (Unity Day)
Jan 24: Romania (Unification Day)

A strong December quarter (Q4) despite excessive rainfall triggered by four typhoons on top of COVID-related travel restrictions has helped Philippines miner Metals Exploration finish FY2020 with gold production from its Runruno project on Luzon of 67,552oz, narrowly down on the 68,883oz it achieved in the previous year.
Gold sales improved to 68,510oz (FY2019: 67,356oz) at $US1,782/oz ($1,400/oz) for $122.1M ($94.3M). AISC was $1,259/oz ($1,281/oz).
After carrying out clean-up and rebuttressing of wall slippages, MTL says it’s developing plans for a 60m step-out to improve pit wall stability.
Mining schedule changes to allow the resettlement of illegal miners will delay access to higher grade material to 2022.

Brazilian gold miner Serabi is predicting two years of production growth at its Palito and Sao Chico operations in the Tapajos region of Para state after COVID-19 challenges impacted delivery of 32,003oz for the year to end-Dec (FY2020), down from 40,101oz in FY2019.
Serabi aims to open up additional mine faces in early 2021 to re-establish optionality in the operations, anticipating 33,000-36,000oz in FY2021 and increasing to about 45,000oz in FY2022.
The UK-based company ended the period with cash of $8.1M, down from $14.3M a year earlier, after $4M payments to Equinox Gold for the Corinda gold project.

Global miner Rio Tinto has announced plans to become North America’s first producer of high-quality scandium oxide, with construction underway of a commercial-scale demonstration plant at its Rio Tinto Fer et Titane metallurgical complex in Quebec, Canada.
The modular plant, with initial capacity of 3tpa scandium oxide equal to about 20% of global demand, is expected to begin commercial supply in the June 2021 qtr.
Rio Tinto’s $US6M investment will be complemented by about $0.65M from Quebec’s critical and strategic minerals plan.
The Sorel-Tracy plant will use RTFT’s innovative process to extract high-purity scandium oxide from the waste streams of titanium dioxide production, with no need for additional mining at its Lac Tio opencut ilmenite mine in Havre-Saint-Pierre.

BHP’s 100%-owned Cerro Colorado copper mine in northern Chile could face a lengthy shutdown after the country’s Supreme Court effectively ordered its closure due to complaints by local indigenous communities over its water use.
The court ruled the Atacama Desert mine must complete a fresh environmental review after finding its 2016 environmental approval failed to consider warnings about the impact of its water use on local wetlands, Reuters reports.
The miner had already begun a new environmental review in preparation for the expiry of the current licence at end-2023.
The mine, one of two in BHP’s Pampa Norte division, produced 65,000t copper cathode in FY2017. BHP said last year it was developing a revised mine plan and exploring development options to allow mining to continue at Cerro Colorado past 2023.