Mining Breaks

UK-based W Resources has awarded civil construction and public works company Francisco Pereira Marinho Imaos the ore haulage and crushing contract for its Régua tungsten mine in N Portugal.
Chairman Michael Masterman says the competitive pricing and low capital requirement of the FPMI contract allows the company to advance the high-grade tungsten mine to development with efficient capital deployment.
The company will transfer the concentrator from its La Parrilla mine in SW Spain to Régua and upgrade it to process the crushed ore to tungsten concentrate.

Global iron ore giant Rio Tinto has acknowledged a 13Mt shortfall in its FY2019 Pilbara production in Western Australia due to “mine operational challenges” particularly at its Greater Brockman hub, resulting in it lowering shipping guidance to 320-330Mt from 333-343Mt previously.
The lower production will also impact unit costs.
Rio Tinto says the shortfall results from the need to produce a higher proportion of lower-grade products in part to protect the quality of its flagship Pilbara Blend.
March qtr shipments included 1.5Mt of the lower grade production, with more sales to follow through the year.

Argosy Minerals is set to begin pilot plant trial-run operations at its Rincon lithium project in Argentina’s Salta Province next week as it heads towards continuous industrial-scale pilot plant lithium processing operations in early July.
MD Jerko Zuvela says Argosy remains the only new lithium brine developer to have constructed an industrial-scale pilot plant with successful proof of chemical process to produce 99.5% battery grade lithium carbonate.
“This milestone puts Argosy in a strong position to reinforce key strategic relationships to assist with funding for the next stage commercial scale development of the Rincon lithium project.”

Process plant construction and commissioning delays have forced JV partners Gold Road and Gold Fields to cut production guidance for the Gruyere gold mine in Western Australia by nearly 20% with all-in sustaining costs rising.
First gold delivery is on track for the current quarter.
Gruyere, 200km east of Laverton in the Yamarna Basin, is now expected to deliver 75,000-100,000oz gold for FY2019 – down from its previous 75,000-100,000oz. AISC is expected to be above the forecast $1,050-1,150/oz.
Ramp-up to nameplate production is anticipated over 6-7 months from commissioning of the ball mill. Capital cost is in line with its $A621M budget.

Australian explorer Venture Minerals is closer to a revival of its Riley iron ore mine in Tasmania with this week’s planned release of mining tender documents, aiming to commence production in the Dec qtr.
The DSO mine has been on care & maintenance since Aug 2014, shortly after Venture suspended operations due to low prices for iron ore.
With current prices over 50% higher, and forecast to stay there, Venture has undertaken extensive pre-production work to a “quick to market” status.
Riley’s indicated resource of 2Mt @ 57% Fe has been upgraded to JORC 2012 status, with a similar upgrade under way for its 1.8Mt @ 61% calcined reserve.

Newmont is commencing early works ahead of the go-ahead for its proposed Tanami Expansion 2 project in Australia’s NT with the award of a $A6M construction contract to energy and infrastructure services group Valmec.
The full funding decision on the gold project is expected in the second half of 2019.
For Valmec, which recently gas construction and pipeline testing works for Newmont on the Tanami Power Project, the new contract is the first step in a growth strategy for the gas and infrastructure sector in the NT.

Guyana-focused Alicanto Minerals has found a new partner in Nord Gold for exploration of its Arakaka gold project in NW Guyana.
Twelve months after Barrick Gold withdrew from its 2-year agreement, Nordgold has an exclusive right to earn 100% interest by sole-funding $US3M exploration within a year and paying the company $5M.
Alicanto CEO Peter George welcomed Nordgold as a funding partner, given its amazing track record of discovering and developing large-scale gold deposits in South America and elsewhere.
While remaining operator at Arakaka for the first 12 months, Alicanto is preparing to start exploration of its newly acquired Oxberg and Naverberg volcanogenic massive sulphide projects in S Sweden.

Australian explorer Alchemy Resources has identified a potential by-product resource that could be exploited in conjunction with openpit mining of the underlying nickel-cobalt resource in the Summervale deposit at its West Lynn project in NSW with the posting of a maiden alumina resource of 6.6Mt @ 20.8% Al2O3.
The mineralisation, which is open in all directions, is additional to Summervale’s previously announced 6.64Mt at 0.82% Ni, 0.04% Co, 2.4% Al and 19.7% Fe.
Alchemy says it anticipates the alumina resource may be exploited in conjunction with openpit mining of the underlying resource.

South African-focused MC Mining has completed a key component for Phase 1 development of its 69%-owned Makhado mine signing an off-take agreement for its high-quality metallurgical coal with ArcelorMittal.
It follows MC’s offtake agreement in April for Makhado’s by-product thermal coal with an unnamed major bulk commodities producer and marketer.
ArcelorMittal will purchase at least 350,000tpa, with the right to a further 100,000tpa, for 10 years or Makhado’s Phase 1 LOM.
MC says it supports negotiations for composite debt and equity funding ahead of a 9-month construction program starting in the Sept qtr on the 3Mtpa ROM development.

Australian explorer Macarthur Minerals says a preliminary economic assessment has underlined the economic viability of its 100%-owned Lake Giles iron ore project about 175km NW of Kalgoorlie in WA.
The PEA by consultants Engenium assessed a 2.5-3.4Mtpa operation incorporating the Moonshine magnetite and Ularring hematite resources to produce a concentrate of over 65% Fe over a mine life of 31 years.
Estimated capital cost is $US326M. Forecast operating costs are $US37.62/t.
Total LOM free cash-flow is $1.47B, after-tax NPV $375M at 8% discount.

Battery metals streaming and royalty company Cobalt 27 has reached agreement with its 19% shareholder, Swiss mining investor Pala Investments, to establish a new vehicle to hold its 8.56% JV interest in PNG’s Ramu nickel-cobalt mine and royalty portfolio.
Under the deal, Pala will acquire 100% of Cobalt 27 for total consideration of about $C501M comprising $3.57 cash and $2.18 shares in proposed new listing Nickel 28 Capital Corp.
Pala will retain 4.9% interest in Nickel 28, which will be headed by the current Cobalt 27 leadership team.
Cobalt 27 chairman-CEO Anthony Milewski says it’s a compelling offer with the total consideration representing a 66% premium to its June 17 TSXV closing price.

International miner South32 has declared a JORC-compliant maiden resource of 155Mt @ 3.39% for 5.3Mt zinc, 3.67% for 5.7Mt lead and 69g/t for 344Moz silver for its 100%-owned Hermosa project in Arizona, USA.
CEO Graham Kerr says, with 72% in the measured and indicated categories, the resource provides a compelling base for its PFS and to target additional mineralisation.
He says its drilling, re-sampling and re-logging since it acquired the project in mid-2018 have confirmed Hermosa’s ability to deliver strong returns over many decades.
South32 expects to complete its PFS by the end of FY 20.

South Australian developer Havilah Resources is eyeing a 13-year mine life delivering 30,000tpa copper metal and 72,000ozpa gold with the completion of a positive PFS for its flagship Kalkaroo project, 100km NW of Broken Hill.
The study by RPM Global Asia into development of the 100Mt proven and probable ore reserve, containing 474,000t Cu and 1.4Moz Au, estimates pre-production capex of $A332M.
It estimates pre-tax NPV of $564M at 7.5% discount, IRR of 26%.

US coal producer Paringa Resources remains on track to achieve steady state operations, equating to production of 1.8Mtpa saleable product, as it progresses the ramp-up of its Poplar Grove underground mine in western Kentucky.
Since it commenced mining in the March qtr, the first production unit achieved a peak mining rate of 306ft in a single shift in early June - a 100% increase on the previous week. Its second mining unit is due for commissioning in coming months.
Paringa expects to achieve additional productivity in coming weeks with commissioning of the ventilation overcasts to allow both continuous mining machines to be operated concurrently.

It’s next stop mining approvals for Australian developer Core Lithium at its 100%-owned flagship Grants project near Darwin after gaining the support of the NT environmental authorities.
MD Stephen Biggins says the EPA approval, along with its recently announced $A8.125M agreement for a 2.5% royalty with Canada’s Lithium Royalty Corporation and a near-closing $2M share purchase plan, puts Core on a solid footing before construction begins this year.
The $73M development of the 180,000tpa Finnis project is expected to achieve first construction next year.

Resurgent Australian mining contractor Macmahon will strengthen its underground capability through the $A48M cash acquisition of privately owned WA specialist contractor GBF.
CEO Michael Finnegan says the deal will give Macmahon a stronger platform to compete for upcoming work and achieve meaningful scale in its underground contracting business.
Michael Foulds and Ross Graham, who founded GBF in Kalgoorlie in 1988, will stay with the business.
GBF’s existing strategic alliance with WA Goldfields miner Orminex will also continue following the change of ownership, which is expected to be completed in mid-Aug.

Highly regarded Australian explorer Chalice is widening its reach with the acquisition of privateer North West Nickel and its Ruins nickel sulphide project in WA’s West Kimberley.
In addition to issuing 7.5M shares for all NWN shares, Chalice will pay up to $A6.25M in cash or shares on feasibility and commercial hurdles.
Chalice will amalgamate the Ruins project into its 1,800km2 King Leopold nickel project.
MD Alex Dorsch says it’s a drill-ready entry point to the King Leopold Orogen province, which is attracting increased exploration from companies including diversified miner Independence Group.

West African gold producer Avesoro has reaffirmed its revised 2019 production guidance of 180,000-200,000oz after resuming openpit mining and plant operations at its Youga mine in Burkina Faso after settling industrial relations issues around its switch to contract mining.
After mining fleet operators refused to work after June 7, the settlement between proposed openpit mining contractor Orkun Group and the mine’s former openpit employees led to the resumption of mining operations on June 15 and processing on June 16.
CEO Serhan Umurhan says Avesoro is now focused on minimising the impact of the stoppage while completing its transition to contractor mining at Youga and New Liberty.

Anson Resources has established an exploration target of 30-46Mt @ 150-300mg/litre at its Paradox brine project in Utah, USA.
The target is additional to its maiden inferred and indicated contained mineral resource of 118,000t lithium carbonate, 427,000t bromine, 21,400t iodine and 304,000t boric acid.
Australian-based Anson is planning well pumping tests to determine the dynamic hydrogeological properties of the brine aquifer and additional work on geological and hydrogeological properties of the clastic zone aquifer.