Mining Breaks

Labour shortages and COVID impacts together with increasing costs and long timelines have delayed led Cyprium Metals to defer the scheduled commencement of new construction activities at its 100%-owned Nifty copper project in Western Australia’s Pilbara region to Sept 2022.
Cyprium now expects copper metal production at Nifty to commence by H2 2023.
MD Barry Cahill says, despite the pressures being felt throughout the mining industry, the company is close to completing engineering design of the SX-EW plant and heap leach pads and has begun refurbishment of the project.
The company’s staff have rectified a number of neglected legacy issues at the site, collecting and sorting years of rubbish and waste.

Australian-based explorer Heavy Minerals has posted a 59% increase in JORC inferred resources at its Inhambane mineral sands project in Mozambique to 90Mt @ 3% for 2.7Mt contained total heavy minerals, comprising ilmenite with zircon, rutile and leucoxene credits.
The resource update reflects securing prospective ground directly bordering Rio Tinto-Savannah Resources’ 4.4Bt @ 3.9% Jangamo project and a reduction in cutoff grade from 2% to 1.7% due to significant increases in higher ilmenite and zircon benchmark prices.
Exec director-CEO Nic Matich says the increase highlights the prospectivity of its tenure and bodes well for the project’s future.

Zimbabwe platinum group metals miner Zimplats has approved an overall capital investment strategy with a $US1.8B budget to be implemented over a 10-years period beginning this year, with $1.2B already approved for implementation.
These projects, including those currently in the process of being approved, will concentrate on maintaining current production levels through mine replacements/upgrades totalling $516M. Expanding production levels through growth projects, including development of a new mine and increased processing capacity, is expected to boost nameplate capacity from 6.7Mtpa to 8.8Mtpa and in-country processing capacity to 380 000tpa of concentrate, along with the establishment of an abatement facility to mitigate sulphuric dioxide emissions from the current and expanded smelting capacity costing $969M. Refurbishing the mothballed base metal refinery for $100M and investing in a 185MW solar plant to augment power supplies, is budgeted at $201M. These projects are expected to be funded by internally generated resources.

West Australian miner Gascoyne Resources has strengthened the growth pipeline for its Dalgaranga mine with the announcement of a 24% increase in indicated and inferred resources to 243,613oz (5.24Mt @ 1.45g/t) at the Yalgoo gold project. They will boost Dalgaranga’s existing mineral resource of 648,900oz (25Mt @ 0.8g/t).
Yalgoo, acquired through Gascoyne’s recent merger with Firefly Resources, is 110km by road from the Dalgaranga plant.
The increase stems from a maiden inferred resource of 43,611oz at Yalgoo’s Applecross deposit and a 16% increase in shallow indicated and inferred resources to 200,001oz for the Melville deposit.
Maiden resource figures are due in early 2022 for Yalgoo’s Don Bradman prospect and the high-grade Crescent prospect.

South Australian developer Andromeda Metals has lined up a potential export facility for its Great White kaolin project, signing a non-binding MoU with Iron Road over its planned Cape Hardy bulk commodities port on the Eyre Peninsula.
Andromeda aims to gain approval to start construction in 2022 on the proposed 600,000tpa halloysite-kaolin clay direct shipping ore operation.
Iron Road’s proposed $A250M development of a deepwater Capesize-capable port at Cape Hardy would service its $US1.7B Central Eyre Iron Project as well as other regional mining and agricultural developments.

Australian explorer Korab Resources is calling in the police over the suspected illegal removal of stockpiled gold ore from its Sundance mine near Batchelor in the NT. Korab also claims another stockpile has been illegally modified and some ore removed.
Samples of ore mined from Korab’s nearby Winchester magnesium project and stored at Sundance have also been taken, the company says.
Korab has been working on reopening the Sundance mine, 70km S of Darwin, with ore stockpiled on the tenements to be toll-treated at a third party processing plant.
The company says its work on the mine management plan for the Winchester project is not affected.

Western Australia gold explorer Focus Minerals has come up with a maiden 45,600oz resource for the Green Light gold deposit, part of the company’s 100%-owned, 138sq km Coolgardie Gold Project on the outskirts of the Coolgardie township.
Earlier this month, the company gave the go-ahead to restart the Coolgardie project, with a provisional target starting date next year, ending a 9-year shutdown of the open pit and 1.4Mtpa Three Mile Hill processing plant. It has also launched a $A45.7M entitlement offer to raise working capital.
Green Light is a lookalike to the 157,800oz CNX gold deposit, along strike, and is shaping up as an open pittable resource option for the Coolgardie restart. The 1st up mineral resource is reported on a dry tonnage basis, using a 0.5g/t gold cut to a depth of 230m within 1.22Mt at 1.17g/t Au.

West Australian explorer Reach Resources has posted JORC-compliant inferred mineral resources of 105,000oz (1.035Mt @ 3.2g/t gold) for the Blue Heaven prospect at its Primrose gold project, 420km NE of Perth. It includes a higher-grade component of 582,000t @ 4.7g/t for 87,000oz at 1.5g/t cutoff.
Reach says the resource is restricted to 100m depth, with insufficient detailed drilling of the nuggety mineralisation at depth. There is also significant potential for more via drilling at Primrose’s Pansy Pit prospect.
Chairman Robert Downey says the Blue Heaven resource enables Reach to push ahead and fast-track its potential monetisation and provides confidence to commence additional drilling at Pansy.

The award of major project status by the federal government highlights the national and regional economic potential of Australia’s largest and most advanced battery metals project, Sunrise Energy Metals’ proposed $A2.4B integrated mine, processing and recycling facility at Fifield in NSW.
The project is scheduled to deliver annual metal equivalent production of 21,293t nickel and 4,366t cobalt, plus 20tpa scandium oxide from one of the world’s largest, highest-grade deposits of the rare alloying metal. Total resources are sufficient to support a 50-year operating life.
Sunrise says the project is construction-ready, with key permits and land secured and $250M invested in pre-development works.

A DFS update has increased the proposed production rate and more than doubled forecast economic outcomes for the Goulamina lithium project in Mali, the 50-50 JV between Australian-based Firefinch and leading Chinese producer Ganfeng Lithium.
The revision of Goulamina’s Oct 2020 DFS outlines average spodumene concentrate production of 726,000tpa @ 6% Li2O over a 21-year mine life, from its previous 450,000tpa over 23 years. Forecast post-tax NPV is $A4.1B and IRR of 83% on combined 2-stage capital costs of $US325M and AISC of $365/t.
Firefinch targets a demerger of the Goulamina project into new listing Leo Lithium in March-April 2022 with a clear path to first production in early 2024.

Talks between BHP and Australian entrepreneur Andrew Forrest’s private vehicle Wyloo Metals on a “mutually beneficial” acquisition of Canadian miner Noront Resources will continue into the new year after the global major extended its offer deadline by a month to Jan 14.
The talks have been continuing since Oct, when their takeover battle for Noront ended with the target company backing BHP’s $C443M (75cps) offer over Wyloo’s 70cps.
Apart from confirming that BHP will be the ultimate purchaser of Noront, no details of the discussions have been disclosed.

START THE WEEK: WHAT YOU NEED TO KNOW
A new report by the World Gold Council provides quantitative insights into the substantial impact that large-scale mining has on advancing the economies and improving the livelihoods of their host countries.
The report, based on 2020 data from 122 operations and 81 non-reporting sites of 31 WGC member companies across 38 countries, shows they contributed $US37.9B to the GDP of host countries in the form of taxes, salaries and payments to suppliers. The payments represent 63% of the miners’ total gold sales revenue and equate to almost $1,000 for each ounce of gold.

COMMODITIES
LME ($US) 3-month closing prices, Dec 3 –
Copper 9,417.00
Aluminium 2,616.00
Zinc 3,157.50
Nickel 20,075.00
Lead 2,196.50
Tin 39,200.00

LME ($US) precious spot closing prices, Dec 3 –
Gold 1,783.00
Silver 22.51

NASDAQ ($US) closing prices, Dec 3 –
Gold 1,783.90
Silver 22.481
Copper 4.267
Platinum 926.20
Palladium 1,812.60

NYMEX ($US) 62% Fe CFR China, market close, Dec 3 –
Iron ore 101.49

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• TASEKO MINES COPPER SALES SLOWED BY GIBRALTAR FLOODS
• THOR EXPLORATIONS SEGILOLA GUIDANCE CUT BY DELAYS

CALENDAR
Public holidays -
Dec 6: Finland (Independence Day)
Dec 6: Thailand (King Bhumibol Birthday Observed)
Dec 8: Albania (National Youth Day)
Dec 8: North Macedonia (Saint Kliment Ohridski’s Day)
Dec 8: Panama (Mothers’ Day)
Dec 8: Paraguay (Virgin of Caacupe Day)
Dec 8: Romania (Constitution Day)
Dec 8: Observing Countries (Feast of the Immaculate Conception)
Dec 8: Uzbekistan (Constitution Day)
Dec 9: Tanzania (Independence Day)
Dec 10: Iraq (Anniversary of Victory over ISIS)
Dec 10: Moldova, Mongolia, Namibia (International Human Rights Day)
Dec 10: Thailand (Constitution Day)
Dec 11: Burkina Faso (Proclamation of Independence Day)
Dec 12: Kenya (Jamhuri Day)
Dec 12: Turkmenistan (Day of Neutrality)

Australian international miner South32 still faces “rigorous assessment” of the planned mine life extension of its Dendrobium coal mine in NSW after the state government declared it a state significant infrastructure project.
S32’s development application submitted in 2019 seeks to maintain the underground metallurgical coal mine’s ROM production at 5.2Mtpa to 2048, but has been rejected NSW’s Independent Planning Commission.
State deputy premier Paul Toole says the SSI declaration recognises the potential economic benefits of a mine that already contributes $A1.9B annually to the economy.

Global major BHP has pledged to assess the implications after Australian employment watchdog the Fair Work Commission ruled the standing down of more than 30 workers at its Mt Arthur opencut energy coal mine in the Hunter Valley of NSW for not providing proof they were vaccinated against COVID-19 was unlawful.
Although the case drew attention from opponents of mandatory vaccination, BHP says the commission acknowledged the dangers of the virus but called for more meaningful consultation by the company with its workforce.
Local media reports vaccination will remain a condition of entry at the mine while BHP undertakes further consultation.

Rising global tin prices and updated resource estimates have prompted Australian-based explorer Elementos to launch an optimisation study into the proposed mining rate, processing throughput and infrastructure for its 100%-owned Oropesa project in Spain.
Elementos considers the rise in LME cash prices to over $US40,000/t and recent 50% increase in resources to 18.86Mt could reshape the economics and scale of what is already positioned as a low-cost, globally significant project.
CEO Joe David says the new study will not delay the DFS due in 2022 and will ensure it’s delivering optimal value.

Osisko Mining has come up with some more high grade drilling intercepts at its 100% owned Windfall gold project in the Abitibi greenstone belt, James Bay, Québec, Canada.

The latest results include 576g/t Au over 2.7m at Triple Lynx, 93.1g/t over 3m in Caribou and 22.3g/t over 4.4m in the Underdog. Osisko CEO John Burzynski says while the main infill drill campaign at Windfall has been completed in support of the upcoming mineral resource estimate update, Osisko continues targeted infill/expansion drilling, from which the new high grade intercepts have come. Selected high-grade intercepts, from different holes, include 17.6g/t over 10.6m and 15.7g/t over 8.1m; 221g/t over 2m; 127g/t over 2.6m; 93.1g/t over 3m; 28.6g/t over 4.9m; 34.7g/t over 3.8m; 37.4g/t over 3m and 22.3g/t over 4.4m.

China's Chengtun Mining is investing $US245M in a project to make nickel matte in Indonesia as a raw material for electric vehicle battery chemicals, Reuters reports.
The venture, to be known as PT ChengMach Nickel, will produce 40,000tpa of nickel matte on a metal content basis, with Chengtun unit Hongcheng Int’l holding 70% and the rest by Singapore-registered Extension Investment. Total investment is pegged at $350M.
The venture will be Chengtun's 2nd nickel matte project in Indonesia and, like the first with a capacity of 34,000tpa, will be located in Weda Bay on the island of Halmahera.

West Australian miner Focus Minerals has given the go-ahead to restart its 100%-owned Coolgardie gold project, with a provisional target starting date next year to end the nine-year shutdown of the openpit mine and 1.4Mtpa Three Mile Hill processing plant on the outskirts of the historic mining town 35km W of Kalgoorlie.
The resumption plan covers the selection of contractors for engineering works including mill recommissioning costs, tailings storage expansion and feasibility study update.
Major shareholder Shandong Gold has advanced an additional $US10M unsecured loan facility, to be supplemented by a new entitlement offer and other financing options if required.

Australian gold miner Ramelius Resources has moved into compulsory acquisition phase after lifting to 90.82% holding in explorer Apollo Consolidated in a takeover that offers it the chance to establish a new production centre at the 1.1Moz Lake Rebecca project in the WA Goldfields.
After the two companies originally announced a $A128M deal in Oct, Ramelius had to lift its offer to $181M to see off a competing bid from Gold Road Resources.

Canadian producer SSR Mining has moved to strengthen its position in Saskatchewan with announcement of an agreed $C27M all-cash takeover of Taiga Gold, its 20% JV partner in the Fisher property and holder of portfolio of greenfields exploration properties.
The offer of $0.265 per share represents a premium of 36% to Taiga’s Dec 1 closing price.
President-CEO Rod Antal says the deal may extend Seabee’s life into the next decade, using excess mill capacity to treat future ore from the neighbouring Fisher project, while leveraging SSR’s expertise and infrastructure to advance the new properties stretching south from Seabee to its 100%-owned Amisk property.