Mining Breaks

Canadian miner Pure Gold anticipates declaring commercial production in the June qtr at its 100%-owned PureGold mine in Ontario after commissioning activities transitioned to full scale ramp-up of the mining and milling operations.
Pure Gold says underground development and ore production rates, milling and gold recovery have met or exceeded expectations since its first gold pour in Dec 2020 at the mine in the Red Lake mining district.
Construction of the underground mine’s second decline is expected to meet 800tpd design capacity and the performance of the milling facility has met expectations after minor ramp-up issues were resolved.

The fate of one of the world’s most significant untapped copper deposits is in doubt again after new US President Joe Biden’s administration overturned the favourable environmental approval issued in the dying days of his predecessor Donald Trump’s government.
The proposed Resolution underground copper-molybdenum development, 60 miles east of Phoenix in Arizona, is a JV between Rio Tinto (55%) and BHP (45%).
The US Forest Service has rescinded two key environmental documents and blocked a land swap that would have enabled mine development on Oak Flat, an area considered sacred by the San Carlos Apache tribe.
The Forest Service says it will allow more time to understand the concerns raised by the tribe and assess the impact of a mine estimated to produce up to 40Blb copper over 40 years.

Rare earths explorer IonicRE is revising the scoping study for its 51%-owned Makuutu project in Uganda to reflect its larger scale and high-margin potential after lifting its mineral resource by 210% to 315Mt @ 650ppm total rare earth oxide.
MD Tim Harrison says the update exceeds the company’s expectations, confirming Makuutu as one of the largest ionic adsorption clay deposits outside China with one of the world’s largest publicly reported TREO mineral resources.
He says the revised scoping study will underpin its expectations of a long-term, low-capital and high-margin critical and heavy rare earth producing asset.

Lake Resources is targeting long-term project financing through export credit agencies for the proposed 25,500tpa lithium carbonate development of its flagship Kachi brine project at Catamarca in Argentina.
The Australian-based developer has appointed UK-based finance boutique SD Capital Advisory and independent consultancy GKB Ventures as joint financial advisors to structure and secure construction and development finance.
MD Steve Promnitz says export credit offers a low cost and secure form of debt funding that maximises value for shareholders and minimises risk.
SC Capital chairman David Buckle and GKB’s CEO Gabriel Buck highlighted Lake’s innovative use of disruptive direct extraction technology from California-based Lilac Solutions to produce high-purity lithium carbonate matching the sustainability goals of global auto manufacturers.

West Australian mineral sands developer Strandline has secured customer agreements for over 90% of forecast production from its 100%-owned Coburn project with the signing of a long-term rutile offtake contract with global chemical company Venator Materials.
The deal with UK-based Venator, a leading titanium dioxide producer, covers 100% of Coburn’s rutile production and represents 17-20% of projected revenue over 5 years from the planned $A250M project near Shark Bay in WA’s Gascoyne region.
With existing long-term binding offtake contracts, Coburn’s forecast 5-year revenue stream is $US600M. It plans to sell remaining premium finished zircon into shorter-term spot market contracts.
All key approvals are in place and major construction contractors appointed, and Strandline is moving to finalise funding requirements.

Australia/SE Asia-focused contract miner Macmahon has won a $A500M revenue generating, initial 5-years contract to provide all underground mining services to St Barbara’s Gwalia underground gold project in Western Australia from May 2021.
The scope of work involves a whole of mine service, including mine development, ground support, production drilling and blasting, loading and trucking, shotcreting and paste fill reticulation. The initial contract term is for 5 years, with St Barbara having an option to extend for a further 3-years.

Diversified West Australian explorer Metals Australia is joining the renewed search for Kambalda-style nickel sulphide close to Coolgardie with binding agreement to acquire 100% of the Nepean South project, south of and along strike from Auroch Minerals’ 80%-owned Nepean project.
MLS says it considers Nepean South, 30km S of Coolgardie, highly prospective and under-explored for both gold and nickel. Historical drilling by Mincor Resources, while returning significant results, was completed to only an average 42m depth.
The area now held by Auroch produced 32,303t nickel metal (1.1Mt @ 2.99% NI) in 1970-87. MLS has established a high priority target at its northern tenement boundary close to recent high-grade intersections by Auroch.
Director Gino D’Anna says its $A100,000 cash/shares acquisition complements MLS’s asset portfolio levered towards the battery metals sector.

Rio Tinto says it will dispute demands totalling $A406.5M from the Australian Taxation Office. The amended assessments for $359.4M primary tax and $47.1M interest are additional to more than $8.4B income tax paid in 2015.
The company says the ATO has refused interest deductions on an isolated borrowing that was used to pay an intragroup dividend. The borrowing was repaid in 2018.
Rio Tinto says it’s confident of its position, as borrowing to fund dividend payments is normal commercial practice. It will pay 50% of the primary tax up-front as part of the objections process.

Australian explorer Castillo Copper is preparing for a possible restart of mining operations at the Big One deposit, part of its Mt Oxide project in North Queensland’s Mount Isa copper belt, in a strategic switch triggered by strong assay results and highly favourable global market forecasts.
An inaugural JORC-compliant resource at Big One is nearing completion based on recent drilling results and reviews of historical assays.
Big One’s high-grade shallow copper system was mined via several openpits in 1997, producing 4,400t supergene ore averaging 3.5% Cu.
MD Simon Paull says the combination of high-grade results and buoyant global demand indicate potential to build out the high-grade shallow copper system.

Australian Potash has made a major first step in financing its 100%-owned Lake Wells project with the government-backed Northern Australian Infrastructure Fund approving a $A140M, 17-year loan for development of the projected 150,000tpa operation in WA.
NAIF’s investment decision recognises the strong economic and social benefits of the project  500km NE of Kalgoorlie to Northern Australia and the Laverton shire.
Lake Wells is considered Australia’s lowest CO2-emitting SOP project with certified organic product and high-penetration hybrid renewable power solution.
The NAIF facility is one tranche of the project’s senior debt. Export Finance Australia is progressing due diligence and credit assessment while a commercial banks structure is being formalised.

Fresnillo, the world's largest primary silver producer and Mexico's biggest gold producer, has lifted Dec 2020 year (FY/CY 20) profit 82.6% on FY/CY 19 to $US375.6M and its gross profit to $879.4M from $461.7M, despite falls in both silver and gold from the company’s 7 operating mines in Mexico.
The bottom line was on revenue up 14.6% to $2,430.1M and adjusted revenue 14.9% better to $2,608.1M, mainly due to better precious metals prices, with EBITDA jumping to $1,169.1M from $674M.
Silver output fell 2.9% to 53Moz due to the Covid-19 preventive measures and a lower ore grade at Saucito, mitigated by a higher grade at San Julián and the processing of development ore from Fresnillo’s new Juanicipio mine for the 1st time. Gold production plunged 12.1% to 769,618oz, with mining operations at the Herradura and Noche Buena open pits hit by Covid-19 restrictions.
In FY/CY 2021, Fresnillo expects 53.5Moz-59.5Moz of silver and 675,000oz-725,000oz of gold. The company finished FY/CY 20 with $1,070.4M cash/liquid funds.

Exec chairman Theo Psaros says Australian explorer Metallica Minerals has established a solid basis for further expansion at its Cape Flattery silica sands project in N Qld by tripling its indicated-inferred resources to 38.3Mt @ 99% SiO2 and 0.12% Fe2O3.
The upgrade, including an initial indicated resource of 5.4Mt, for the Eastern Resource Area was calculated by industrial mineral specialists AusRocks from a Dec 2020 drilling program.
Psaros says, with current metallurgical studies, the upgrade is a significant step towards development for Cape Flattery to meet growing global demand for premium quality silica.

Australian-based developer Argosy Minerals has laid out its works schedule for the initial 2,000tpa process plant development at its Rincon project in Argentina’s Salta Province, where it aims to begin production of >99.5% battery quality lithium carbonate production late in the June 2022 qtr.
Major works include the process plant, equipment and associated installations, earthworks and site construction, and expansion of the brine system.
The fully modular plant design will accommodate its planned expansion to 10,000tpa.
Argosy has 38ha evaporation ponds in full operation concentrating lithium brine, with a large inventory of concentrated lithium brine ready to deliver into the 2,000tpa plant upon commencement.

West Australian minerals and advanced materials specialist Neometals will advance early contractor engagement talks for its Barrambie titanium-vanadium project while Chinese partner IMUMR carries out pilot trials on gravity concentrates.
Neometals says the trials into roasting and separating a simple gravity concentrate into two high-quality saleable products, managed and funded by IMUMR (Academy of Geological Services), will support a low-capital initial concentrate operation at Barrambie.
It expects the pilot trials to be complete in the June qtr and product evaluation from potential offtakers in the Sept qtr.
Neometals proposes a build-own-operate-transfer contractor arrangement for its proposed 1.2Mtpa mining and 3.2Mtpa gravity concentration plant at Barrambie.

A positive scoping study has cleared the way for Australian Strategic Materials to begin $US1.5M of detailed design engineering work on a 5,200tpa metals processing plant in Korea, initially to produce high-purity neodymium iron boron (NdFeB) powder and titanium powder used to create rare earth permanent magnets, currently in high demand in Korea.
A final investment decision is expected in June this year.
ASM estimates current capital expenditure on the plant in the region of $35M-$45M, with the plant generating revenues up to $190M pa and annual EBITDA up to $50M. Plans to expand the 5,200tpa plant to over 16,000tpa are also expected by 2024.
In addition to the NdFeB and titanium powders, ASM has forecasted creating hundreds of tonnes of titanium metal, nickel-titanium alloy, dysprosium metal and zirconium metal by 2026.
ASM M/D David Woodall says the company’s ability to commercially produce high-purity critical metals for advanced technology manufacturers in Korea gives ASM an excellent foundation to be an independent fully integrated critical metals producer globally.

Victoria Gold’s fledgling 100%-owned heap leach Eagle Gold Mine, within its Dublin Gulch property in Canada’s Yukon Territory, is expected to produce 180,0000z-200,000oz of gold at AISC $US1,050oz-$1,175oz in the Dec 2021 year, the company’s 1st full year of commercial production.
Gold output will continue to build through the 1st half of 2021, reaching full capacity in H2 21.
The mine produced 116, 644oz in the Dec 2020 year (FY/CY 20), with H2 20 output, the project’s 1st 6 months of commercial production, up to 77,748oz from the forecast 72,000oz-77,000oz.
The Eagle and Olive deposits include proven/probable reserves of 3.3Moz from 155Mt grading 0.65g/t and resources of 227Mt averaging 0.67g/t and containing 4.7Moz measured/indicated.

With the countdown begun to first production at its 100%-owned Warrawoona gold project in Western Australia’s Pilbara region, developer Calidus Resources is finalising a study into integrated development of its high-grade Blue Spec deposit 70km away.
Bulk earthworks have begun on the fully funded development at Warrawoona, 25km SE of Marble Bar. Calidus is on track for first gold pour in H1 2022 under a base-case production scenario of 90,000ozpa at AISC of $A1,290/oz.
The company expects works approval this qtr to finalise project permitting.
The Blue Spec integration study is also due this qtr. MD Dave Reeves says integrating Blue Spec’s JORC resource of 219,000oz @ 16.3g/t will significantly leverage the Warrawoona infrastructure, potentially increasing production and financial returns.

Expansive Americas gold miner Equinox Gold has entered an agreement with Orion Mine Finance to acquire another 10% of Orion’s stake in the Hardrock Mine Project in Ontario, Canada, for $US51M, plus certain contingent payment obligations, to lift its equity in the project to 60%.
The Hardrock project is a multi-million-ounce, fully permitted, construction-ready gold project currently owned 50% by Orion and 50% by Premier Gold, which is currently being acquiring Premier, lifting its Hardrock stake to 60% and Orion 40%. The Premier acquisition is expected to close this month.
Hardrock will be a low-cost, long-life gold mine, bringing more than 240,000oz pa attributable to Equinox when in production.

The long shutdown of Gemfields’ 75%-owned Kagem emerald mine in Zambia and 75%-owned Montepuez ruby mine in Mozambique is ending, with the coloured gemstone specialist planning a phased restart this month and ramp-up to full scale by end-April.
In what CEO Sean Gilbertson terms a “grisly 2020”, Gemfields suspended all but critical operations at both mines nearly 12 months ago to save cash amid COVID-19 restrictions.
The Montepuez treatment plant and sorting house are expected to reach full capacity by end-March while Kagem’s washing plant is projected to start by mid-month.
Gilbertson says Gemfields will continue with mini-auctions of its products, but hopes the pandemic would allow it to resume its regular auction format in the Dec 2021 qtr.

The international spread of Chilean ammonium nitrate producer and rock fragmentation services provider Enaex SA has continued with completion of its $A62M acquisition of Australia’s Downer Blasting Services.
By significantly fortifying its presence in one of the world’s largest mining markets, the deal fits the international growth strategy of the subsidiary of Chilean business giant Sigdo Koppers. Enaex has entered the mining markets of Brazil, Peru, South Africa and Australia over the past five years.
Downer Blasting Services has provided rock fragmentation services to Australian opencut and underground mining for over 20 years, reporting FY2020 sales of around $110M.
Completion of the sale continues Downer’s divestment of businesses outside its new urban services focus.