Mining Breaks

PGM and chrome producer Tharisa has achieved a significant geographic diversification from its current South African assets with the $US3M cash acquisition of 100% of the Salene Chrome Zimbabwe development stage project in Zimbabwe’s Great Dyke.
For South Africa’s leading integrated producer, the deal gives it access to a low-cost openpit project containing premium chrome product at a short development timeline.
Tharisa signed an agreement in 2018 with the Leto Settlement Trust over a 90% stake in Salene. As well as the change to 100% ownership, the finalised sale and purchase agreement includes Salene’s Chrome East and Chrome West concessions.
It says the acquisition enables it to replicate the “Tharisa model” at the Great Dyke, the largest known PGM and high-grade chrome deposits outside South Africa.

Global gold major Barrick Gold, which majority-owns/operates 5 of the world’s 10 largest gold mines, has posted net earnings for the Mar 2021 qtr (Q1 21) down to $US538M from Q4 20’s $685M and adjusted net earnings to $507M from $616M.
Most of the major pointers to the company’s Q1 21 performance were down -- net cash from operations to $1,302M from $1,638M, free cash flow to $763M from $1,092M and debt, net of cash, out to $519M from debt of $33M.
Production was much the same with gold output down to 1.1Moz from 1.2Moz at total cash costs up to $716oz from $692oz and AISC to $1,018oz from $929oz, while copper fell to 93M/lbs from 119M/lbs, albeit at C1 cash costs easing to $1.60/lb from $1.61/lb and AISC down to $2.26/lb from $2.42/lb.
President/CEO Mark Bristow says each of Barrick’s core mines has a high-confidence 10-year plan in place — “plans, not forecasts, which we plan to grow.”
Barrick also announced that the 1st $250M ($0.14cps) 15 tranche return of capital distribution totaling $750M will be paid on June 15, 2021.

Record gold equivalent production and revenue from its US/Mexico operations have seen Argonaut Gold lift Mar 2021 qtr (Q1 21) net income to $US27M from Q4 20’s $18M.
The bottom line was on gold equiv production up to 59,704oz AuEq from 56,985oz for revenue up to $105.3M from $100.8M, but with cash flow from operating activities before changes in non-cash operating working capital down to $27.7M from $39.5M. Gold equiv sales rose to 59,116oz AuEq from 53,478oz AuEq, but with the cash cost sold up to $1,003oz from $910oz and AISC to $1,313oz from $1,189oz.
Argonaut finished Q1 21 with cash/equivalents of $227.3M.

Despite a Feb 10 to Mar 21, 2021, COVID-19 outbreak at Pretium Resources’ sole producing underground Brucejack Gold Mine in Canada’s N British Columbia, the company has managed a $US134.6M turnaround for net earnings jumping to $26.59M in the Mar 2021 qtr (Q1 21) from Q4 20’s $108.M loss, with adjusted earnings down to $25.35M from $51.87M.
The result was on gold production easing to 85,795oz from $88,299oz, despite ore milled up to 341,057tpd from 309,661tpd and mill throughput to 3,790tpd from 3,366tpd, but head grade down to 8.2g/t from 8.9g/t and recovery easing to 96.8% from 97.4%.
Gold sales down to 81,707oz from 90,348oz generated saw revenue down to $142.4M from $169.58M, with free cash flow plunging to $51M from $177.8M. Total cash costs rose to $830oz from $819oz, but AISC eased to $1,005oz from $1,009oz.
Pretium finished Q1 21 with cash/equivalents up to $208.9M from $174.8M at end Dec 2020.

South Africa gold miner DRDGOLD’s Mar 2021 qtr (Q3 21) production fell 6% on Q2 21 to 44,433oz, due to a 9% decrease in yield, despite a 3% increase in tonnage throughput, taking gold sales down 8% to 43,822oz and adjusted EBITDA plunging 31% to $US25.7M, also due to a 9% decrease in the average Rand gold price received.
The woes continued with cash operating costs jumping 8% to $1,144oz, AISC up 11% to $1,343oz and all-in costs up to $1,361oz from $1,253oz.

North American-focused explorer New World Resources is set to accelerate development of its high-grade Antler copper project in Arizona, USA after receiving firm commitments to raise $A20M through the issue of shares at 10cps to institutional, sophisticated and professional investors.
MD Mike Haynes says the support by existing and new investors recognises of the 100%-owned project’s substantial potential.
Australian-based NWC says it's fully funded to expeditiously advance resource expansion drilling, mine permitting and feasibility studies, working towards a low-capex restart of operations over a deposit that produced significant quantities of ore at very attractive grades between 1916 and 1970.

Rare earths developer Hastings Technology Metals may have ammunition to extend the life of its Yangibana project in Western Australia’s Gascoyne region after upgrading measured-indicated-inferred resources to 27.42Mt @ 0.97% for 266,417t total rare earth oxides.
Hastings says it has resource estimates for 10 deposits, all starting at surface with no overburden. Five deposits that were drilled in 2020 remain open at depth and along strike.
The company is now updating ore reserves, targeting extensions to Yangibana’s currently proposed 13-year life of high-grade NdPr concentrate production, while finalising cost estimates and debt financing for construction to start in mid-2021.

Australian-based Firefinch has outlined higher production for longer in a new life of mine plan for the Morila gold project in western Mali that it acquired as a worked-out deposit from majors Barrick Gold and AngloGold Ashanti for $US29M six months ago.
After restarting operations through the reprocessing of tailings in March, Firefinch now predicts it will sustain production averaging 160,000ozpa at AISC of $1,124/oz from the mining and processing of 37.5Mt @ 1.33g/t to 2030. Forecast pre-tax net free cashflow over the 10 years is $604M.
MD Dr Michael Anderson says the new LOM plan is based on existing data plus drilling of nearby satellite pits, with no work yet done on the many obvious targets within the Morila Superpit - which is now being dewatered.

West Australian company Brightstar Resources is targeting the end of the June qtr to finalise and release a 3-year strategic plan, armed with a $A5.5M estimate for the cost of refurbishing the mothballed processing plant slated to be the key to its planned multi-mine gold project close to Laverton in WA’s Northern Goldfields.
The Brightstar mill, idle since 2014, is set to be modified and upgraded to 650,000tpa capacity, almost twice as much as originally proposed, to service its three major deposits boasting 445,000oz resources as well as toll treatment for nearby third-party projects. The Alpha, Beta and Cork Tree deposits are all within 60km of the plant.
MD Bill Hobba says Como Engineers has confirmed Brightstar’s expectations of a low capital-cost pathway to fast-track its Brightstar project into production.

Uranium producer Kazatomprom has maintained its FY2021 production guidance despite a 6% fall in March qtr output due to the impact on its in-situ recovery mining process of lower wellfield development activity and staff levels due to COVID-19 restrictions back in mid-2020.
The Kazakhstan national miner reported Q1 attributable production of 2,791t, down from 2,981t in the corresponding period. Group sales fell to 1,278t (Q1FY2020: 1,754t).
It posted FY guidance for attributable production of 12,550-12,800t and sales of 15,500-16,000t at AISC of $US12-15/lb, generating consolidated revenue of KZT620-640B.

Egyptian miner Centamin has committed to establishing the world’s largest off-grid hybrid solar power project with the award of engineering, procurement and construction contracts worth $US37M for a 36MW solar farm and 7.5MW battery storage system at its Sukari gold mine.
German renewable energy pioneer juwi group will design and supply the solar and battery facilities and their integration into the current diesel power plant and Middle East-African regional systems operator Giza Systems will install the solar plant.
The project, due for completion late in H1 2022, is estimated to reduce Sukari’s fuel costs by $9-13Mpa by reducing diesel consumption by 22M litres while reducing fuel price exposure, increasing reliability and reduce site traffic.

African focused metal recovery leader Jubilee has expanded its international reach with a six-month exclusive agreement to assess the surface-based assets of Caerus Mineral Resources in Cyprus.
The company will seek copper and gold mineral resources in mining waste and tailings at 16 historic mines held by Caerus, converting any capable of being scaled up into profit-sharing JVs funded and operated by Jubilee.
For Jubilee, the agreement offers access to significantly higher potential returns in a dramatically changed copper market.
Caerus estimates its 100%-owned properties hold about 15Mt in remnant ore stockpiles, associated copper and gold-bearing marginal ore, waste rock and tailings.
CEO Martyn Churchouse says Caerus can exploit its waste stockpiles while continuing exploration for new underground VMS resources.

New Australian-based battery minerals company Lithium Energy is working towards an ASX listing by end-May following a significantly oversubscribed $A9M initial public offering for the spin-out of assets including the Solaroz lithium project in Argentina currently held by iron ore developer Strike Resources.
Strike will retain a 43% shareholding in Lithium Energy following the spin-out.
Lithium Energy will hold 90% of the Solaroz project in the Olaroz Basin, in the Lithium Triangle of NW Argentina adjoining development projects held by Orocobre and Lithium Americas Corp.

Mineral sands developer Strandline Resources is set to begin construction immediately after announcing the final investment decision for its $A338M, 100%-owned Coburn project in Western Australia, aiming for first production in H2CY2022.
The Gascoyne region project, 240km N of Geraldton, is forecast to produce 23.4Mtpa ore including premium-quality zircon, titanium feedstock and monazite containing rare earths over an initial 22.5-year mine life, with potential to extend to 37.5 years.
Strandline has five major binding offtake contracts with some of the world’s largest mineral sands consumers covering about 95% of its first five years’ production amid increasing demand and declining supply of critical minerals.

Australian-based integrated minerals and advanced materials project developer Neometals is eyeing a final investment decision in H2 2022 after a PFS set out a robust case for its proposed facility in Finland recovering vanadium from steelmaking slag.
The PFS by Association for Advancement of Cost Engineering with Hatch assesses a $US183.4M capital cost plant producing 13.4Mlb high-purity vanadium pentoxide at operating costs of $4.25/lb, with potential to lower costs further through by-product/carbon credits.
Calculated NPV is $230M at 10% discount and IRR of 31%, with payback under 4 years.
Neometals says it’s on schedule to complete pilot plant trials and award a feasibility study by July 2021.

An enhanced feasibility study due for completion in coming weeks will be the key for Australian explorer Boss Resources to establishing a clear pathway for the restart of production at its 100%-owned Honeymoon uranium project in South Australia.
Boss says it has all federal and state permits plus binding purchase agreements for 1.25Mlb U3O8 in its quest to be the next producer at a time when global uranium demand and prices are widely expected to increase in the near-term.
MD Duncan Craib says the EFS will provide a roadmap to recommissioning with simple modifications.

Developer Tietto Minerals has awarded the engineering design contract to Australian-based Primero Group for its 90%-owned Abujar gold project in Côte d’Ivoire, set to be West Africa’s next gold mine.
Primero will provide process and engineering design, procurement oversight, field engineering and commissioning services for the process treatment plant for the life of the proposed 168,000ozpa development in the country’s central west.
MD Caigen Wang says Tietto’s decision to award the plant design contract while still progressing its DFS is strong evidence of its firm commitment to building a modern, large mine. Its strong cash position of $A52M at end-March allows it to advance the mine studies, project development and aggressive diamond drilling to grow its 3Moz gold resource.

A scoping study supports the potential for early production and cashflow from a low upfront capital investment in openpit and underground mining of the historic Okiep copper project in South Africa’s Northern Cape province.
The study was carried out as part of Australian-based Orion Minerals’ due diligence evaluation of its proposed acquisition of a 56.2% shareholding in partnership with 43.8% owner Industrial Development Corporation.
MD-CEO Errol Smart says the foundation development would allow Orion to evaluate a return to the historic 30,000-40,000tpa scale sustained for decades by its past owners.
Orion’s next step will be to complete its due diligence on its $A16M cash-plus-shares exclusive option.

Western Australia and Alaska, US, gold miner Northern Star has lifted its total reserves 8% to 21Moz, after mining depletion of 1.10Moz, and resources up 15% to 56.5Moz that it expects will underpin production growth to 2Moz pa by 2027.
Measured/indicated resources jumped 14% to 38.7Moz, with the overall increases led by the world-class KCGM Super Pit at Kalgoorlie, WA, with reserves up 2Moz to 11.6Moz and resources 7Moz better to 26.3Moz. Fimiston South and Mt Charlotte, both in WA, have combined resources of 6.5Moz.
Northern Star operates 3 concentrated centres – Jundee; Kalgoorlie, including Kanowna Belle, Kundana, South Kalgoorlie and KCGM; and the Pogo operations in Alaska.