Mining Breaks

The revised BFS has confirmed strong technical and financial parameters for the redevelopment of West Australian explorer Echo’s 100%-owned Yandal gold project 85km NE of Leinster.
The study outlines a $A42M pre-production cost for a development to produce 95,000ozpa over an initial 4 years at $1,095/oz.
While all major permits are in place, MD Victor Rajasooriar says Echo will continue exploration and resource conversion programs and progress discussions on the potential to include more regional assets and corporate consolidations before it sits down to finalise a mining decision.

CZL has announced a maiden proved and probable ore reserve if 73,850t @ 13.82% zinc, 2.38% lead and 17.86g/t silver at its 90%-owned Plomosas underground mine in Mexico’s northern Chihuahua state as it prepares to increase production following the appointment of new toll-treatment partner Triturado y Minerales La Piedrera this month.
Steady production and higher grades saw Plomosas improve total metal mined in March to 478t Zn and 56t Pb, compared to 364t Zn and 105t Pb in Feb.

A new PFS for Nevada Copper’s 100%-owned Pumpkin Hollow property’s separate open pit copper project near Yerington, Nevada, US, envisages a $US1.5B capex, 19-year LoM operation producing 1.6Mt copper to concentrate and generating net revenue of $US8.98B after royalties.
The report sees the Pumpkin Hollow property being developed as phased operations with the underground project currently under construction and expected to begin production by the end of FY/CY 2019. Construction/production starts for the open pit remain flexible.

Explorer/developer Vango Mining is fast-tracking plans for the first stage of mining operations at its 100%-owned Marymia gold project in Western Australia after completing a new JORC mineral resource of 410,000oz (1.6Mt @ 8g/t) at its Trident deposit.
The Trident-Marwest-Mareast gold corridor is one of six identified within the 40km strike length of Marymia, 300km NE of Meekatharra in the Mid West region.
Vango calls it the first major milestone in its plans to develop Trident into a substantial, high-grade gold mine to underpin its proposed standalone mining and processing operation.

It’s been a bad start to the current Dec 2019 year (FY/CY19) for top-20 global gold/top-5 global silver producer Polymetal Int’l with Mar 2019 qtr (Q1 19) gold equiv (AuEq) production from its 8 mines in Russia/Kazakhstan plunging to 374,000oz from Q4 18’s record 497,000oz.
The result was on gold production plummeting to 302,000oz from 414,000oz, silver to 5.1Moz from 5.9Moz, due to the planned grade decline at the Dukat underground mine, and copper to 900,000t from 1.3Mt on ore processed falling to 3.4Mt from 3.7Mt, pushing revenue down $US198M to $454M.

Global mining and construction equipment supplier Sandvik credits large orders from the energy segment and strong development in the mining business for the 6% increase in intake to SEK27.9M for the March qtr (Q1).
President-CEO Björn Rosengren says order intake improved in all geographic regions except Asia. Cutting tool business remained largely stable at record levels.
Group revenues rose to SEK25.2M, generating operating profit of SEK5.4M and margin at 18%.
Rosengren says the acquisition of battery-power underground mining equipment manufacturer Artisan places Sandvik Mining and Rock Technology in a leading position for battery electric vehicle solutions.

START THE WEEK: WHAT YOU NEED TO KNOW
The Tanzanian government has been warned by the International Monetary Fund it risks a subdued economic outlook if it persists with its “unpredictable and interventionist policies” that have particularly targeted the mining and agricultural sectors.
The IMF warning comes a month after Tanzania was listed third in a global listing of countries where mining investment is at risk from resource nationalism.
Investment in the country has slowed significantly since Magufuli’s government introduced higher taxes on mineral exports and provision for the state to take increased stakes in projects.
The conflict between the government and the mining sector has been highlighted by Tanzania’s extravagant allegations and continuing stand-off with its leading gold producer, Acacia Mining.
The government of President John Magufuli has refused to allow publication of the report, which follows a standard comprehensive review of the economic situation and policy strategy of its member countries carried out by its economists usually once a year.
Reuters, which has seen a copy of the unpublished report, said it cautioned a weak business environment and low-return projects are likely to constrain Tanzania’s annual GDP growth to below 6.3%, the country’s average over 1998-2017.
It projected GDP growth of 4-5% in the medium term if the government continued its present policies – contrasting with government projections of 7.3%.

YOU MAY HAVE MISSED
(Note that some of the following articles can be accessed only by subscribers)

• EVOLUTION Q1 19 PRODN FALL ACROSS ALL COMMODITIES 
• BARRICK GOLD Q1 POINTS TO ANOTHER FY RECORD 
• SIBANYE ENDS 5-MONTH SOUTH AFRICAN GOLD STRIKE 
• SOUTH32 LONG-TERM WORKS REDUCE ALUMINA GUIDANCE 
• SCANDIUM INT TACKLES RED TAPE BLUNDER ON NYNGAN LEASE 
• FORTESCUE METALS GROUP SEES CYCLONE LOSSES AT 2.5Mt 

COMMODITIES
LME ($US), Apr 18 –
Aluminium 1,839.00
Copper 6,448.00
Zinc 2,854.00
Nickel 12,630.00
Lead 1,919.00
Tin 20,425.00
Cobalt 35,500.00
Gold 1,274.00

COMEX ($US), Apr 18 –
Gold 1,277.90
Copper 2.925
Silver 14.965

NYMEX ($US) 62% Fe CFR China, Apr 18 -
Iron ore 92.91

LBMA price data ($US), pm Apr 18 –
Platinum 890.00
Palladium 1,395.00

CALENDAR
Public holidays –
Apr 21: Easter Sunday
Apr 21: Passover (Argentina)
Apr 21: Shab e-Barat (Bangladesh)
Apr 21: Tiradentes Day (Brazil)
Apr 21: Ridván (Pakistan)
Apr 21: Imam Mahdi's birthday (Iran)
Apr 21-27: Pesach (Israel)
Apr 22: Easter Monday
Apr 22: Holocaust Remembrance Day (Serbia)
Apr 22: Family Day (South Africa)
Apr 23: Language Day (Colombia)
Apr 23: St. George's Day (UK)
Apr 23: National Sovereignty and Children's Day (Turkey)
Apr 24: Action Day for Tolerance and Respect (Argentina)
Apr 24: Genocide Remembrance Day (Armenia)
Apr 24: Concord Day (Niger)
Apr 25: ANZAC Day (Australia, New Zealand)
Apr 25: Sinai Liberation Day (Egypt)
Apr 25: First Day of Summer (Iceland)
Apr 25: Liberation Day (Italy)
Apr 25: Liberty Day (Portugal)
Apr 25: Chosun People's Army Foundation Day (N Korea)
Apr 26: Good Friday (Orthodox/Coptic)
Apr 26: Chernobyl Tragedy Remembrance (Belarus)
Apr 26: Secretaries' Day (Colombia)
Apr 26: Intellectual Property Day (Mongolia)
Apr 26: Union Day (Tanzania)
Apr 27: Children´s Day (Colombia)
Apr 27: Holy Saturday (Orthodox/Coptic)
Apr 27: State Flag Day (Moldova)
Apr 27: Independence Day (Sierra Leone)
Apr 27: Day of Uprising Against Occupation (Slovenia)
Apr 27: Freedom Day (South Africa)
Apr 27: King's Birthday (Netherlands)
Apr 27: Independence Day (Togo)

Conferences –
Apr 23-25: MiningWorld Russia, Krasnogorsk (Russia)

Companies –
Apr 24: Northern Star Q3, Perth (Australia)
Apr 24: PT Aneka Tambang AGM, Jakarta (Indonesia)

A strong start to the year by its new Fekola gold mine in Mali has helped Canadian international miner B2Gold maintain above-budget performance through the March qtr (Q1), delivering 230,859oz (Q4FY2018: 231,687oz) on keeping it well-positioned for FY guidance of 935,000-975,000oz at AISC of US$835-875/oz.
Sales of 232,076oz at an average $1,300/oz delivered consolidated revenue of $302M.
Fekola contributed 110,349oz, on track for FY2019 production of 420,000-450,000oz as B2Gold embarks on the mill expansion expected to deliver over 5Moz over the 12-year LOM.

Scandium International says it remains committed to developing the world’s first primary scandium mine at Nyngan in Australia despite a NSW bureaucratic blunder that may cost it one of its leases.
The company has been advised a lease granted in 2017 is invalid because planning bureaucrats failed to properly assess a landowner’s objection.
With that lease declared invalid, SCY’s 2016 application for the full project mining lease remains undetermined.
CEO George Putnam says it’s talking with the landowner while also pressing for an early, fair planning decision.
Ultimately, it believes Nyngan’s viability is not dependent on the disputed lease area.

The five-month strike by employee-members of the Association of Mineworkers and Construction Union at Sibanye’s South African gold operations has finally ended with the workers receiving a “hardship” bonus on top of the wage deal they could have accepted 5 months ago.
The ex-gratia payment of R4,000 agreed in negotiations finalised on Apr 17 comes on top of the basic wage increases of R700 in year 1, R700 in year 2 and R825 in year 3.
Miners, artisans and officials will receive 5.5% increases in year 1 and 5.5% or CPI (whichever is the greater) in years 2 and 3.

Renowned mining dealmaker Mick Davis has signed a rail and port access MoU with the Liberian govt to support plans by his new private vehicle Niron Metals to advance the Zogota iron ore mine in neighbouring Guinea.
Davis aims to complete an expedited FS on the potential 20Mtpa mine within 6 months, Reuters reports.

A top performance from Hecla Mining’s flagship Greens Creek mine, in Alaska, US, and a big production jump from strike-riven Lucky Friday, in Idaho, US, has helped the company’s total Mar 2019 qtr (Q1 19) silver production up to 2.9Moz from Q4 18’s 2.7Moz, but with gold falling to 60,021oz from 70,987oz.
While better gold production is expected from Casa, in Quebec, Canada and the Nevada, US, assets in H12 19, latest silver was up on output from Greens Creek to 2.23Moz from 2.16Moz and gold to 14,328oz from 13,097oz, along with higher gold/silver grades/recoveries. Lucky Friday contributed 173,627oz silver from a strike-hit 13,026oz the previous qtr -- more silver in Q1 19 than achieved all of last year. Lead production jumped to 5,785t from 4,704t and zinc to 13,943t from 13,711t.
Hecla finished Q1 19 with cash/equivalents and short-term investments of $US12M.

East African-focused Shanta Gold is comfortably on track to meet its 80,000-84,000oz FY2019 guidance after posting March qtr (Q1) production from its New Luika gold mine in SW Tanzania of 22,374oz (Q4FY2018: 23,942oz) at AISC of $US701/oz (unchanged).
CEO Eric Zurrin says it’s Shanta’s best opening qtr in 3 years and was achieved at costs well below FY guidance while remaining focused on exploration to increase New Luika mine life.
Shanta reached first development ore in March from Ilunga underground, its third active source of high-grade ore at New Luika, and expects to achieve first stoping production in July.

Burkina Faso-focused gold miner Roxgold has expanded its production horizons with the completion of its potential $US30M acquisition of Newcrest Mining’s 430,000oz inferred Séguéla Gold Project and 11 surrounding exploration permits covering 3,298km2 in Côte d'Ivoire.
The 1st part of the deal is an upfront $20M to secure the project, which includes the 430,000oz inferred Antenna deposit within 5.8Mt at 2.3g/t Au. An initial 28,000m RC and diamond drilling program is scheduled to begin next week.

South32 has lowered Australian and Brazilian alumina production guidance for the year to end-June (FY19) while it carries out works to improve long-term production.
March qtr (Q3) alumina production fell to 2.3Mt (Q2: 1.4Mt), while 9M output declined marginally to 3.74Mt.
Worsley Alumina is now expected to deliver 3.8Mt, from 3.97Mt previously, and Brazil Alumina 1.29Mt, from 1.36Mt.
Community protests and the aftermath of a dragline outage lowered South African Energy Coal 9M production to 18.3Mt (20.2Mt), reducing export guidance to 10.7Mt from 11.5Mt and domestic to 15.5Mt from 17.5Mt.
YTD Illawarra coal output improved to 5Mt (3Mt) while guidance is unchanged at 6.5Mt.
Australia Manganese FY guidance has risen to 3.5Mwmt from 3.35Mt after record 9M production of 2.63Mt (2.53Mt).

As it moves to create the world’s single-largest gold producer with Newmont Mining, global gold miner Barrick Gold has lifted preliminary Mar 2019 qtr (Q1 19) gold production to 1.36Moz from Q4 18’s 1.26Moz, albeit with copper output easing to 106Mlb from 109Mlbs.
The company says the start puts it on track for another record performance in FY/CY2019 as the March 2019 Newmont J/V deal allows both to realize the enormous potential of Nevada, US’, mineral endowment. Full Q1 19 report expected May 8, 2019.

Copper down, gold up for a Mar 2019 qtr (Q3 19) that underpins expectations for increased FY2019 production from Sandfire Resources' flagship DeGrussa copper-gold mine at its 100%-owned Doolgunna project, 150km N of Meekatharra, Western Australia.
While Q3 19 copper output eased to 16,062t from Q2 19’s 16,888t, gold was up to 10,921oz from 10,427oz at C1 costs also up to $US0.92lb from $0.85/lb, as delivery of 1st stoping ore from the new Monty mine marked start of production ramp-up delivering 38,519t grading 3.74% Cu for the qtr, and heading for FY19 66,000t-68,000t of copper from 2018’s 64,918t and 40,000oz-42,000oz of gold from 39,273oz at C1 costs down to ~$0.90/lb. Grade from Monty is expected to increase strongly from Q4 19 qtr.  Sandfire finished Q3 19 with $A194.2M cash.

Australia’s third largest iron ore producer Fortescue Metals has followed Top 2 rivals Rio Tinto and BHP in disclosing export volume losses due to tropical cyclone Veronica that swept Pilbara coastal regions in March.
FMG says the 5-day closure of ports and localised flooding cost it 2.5Mt during the March qtr (Q3FY19).
It’s trimmed full year guidance at the top end to 165-170Mt, from 165-173Mt previously, and raised C1 costs forecast to $US13-13.50/wmt from $12-13/t.
Q3 shipments were 38.3Mt (Q2: 42.5Mt) at $13.51/t ($13.02/t). More positively, adding higher grade 60.1% Fe West Pilbara Fines to its product mix helped lift Q3 average prices to $71/dmt ($48/t).

Alliance Resources is continuing infill drilling after a scoping study confirmed positive economics for its proposed 250,000tpa processing plant development of its 100%-owned Weednanna gold project in South Australia’s northern Eyre Peninsula.
The study by consultant Mining One outlines $US36M capital cost for the plant and tailings storage facility, plus $8M prestrip costs for the planned openpit mine.
Weednanna, part of its Wilcherry project within the Gawler Craton, holds indicated-inferred mineral resources of 1.1Mt @ 5.1g/t for 181,000oz gold. The drilling aims to increase the 50% of inferred resources to indicated to support higher-level feasibility studies.

Australian explorer Laneway Resources expects its first gold pour next week after beginning to process ore on April 17 from its 100%-owned Agate Creek project 60km W of Kidston in N Qld.
Ore from Agate Creek is being crushed and processed through the CIL circuit at Maroon Gold’s Black Jack processing plant at Charters Towers under a toll-treatment agreement.
With current high $A gold prices, Laneway is confident it will achieve positive cash-flow this year to progress its project portfolio including the Ashford coking coal project in NSW, gold assets in NZ’s Hauraki Goldfield and additional exploration areas at Agate Creek.