Mining Breaks

Changes in the mining process have delivered a 16% increase in forecast annual production to 29,386tpa battery-grade lithium hydroxide monohydrate at European Metals Holdings' 49%-owned Cinovec hard rock lithium project in the Czech Republic.
A new PFS update for the project 100km NW of Prague assessed the impact of a switch to the use of paste backfill in the mining process as well as changes in current and anticipated lithium and by-product prices.
While the backfilling plant and higher production raise the upfront capital cost to $US664B, from $482.6M in the previous 2019 study, it results in the post-tax NPV 8% forecast increasing to $1.9B from $1.1B.

New partners will be sought by Kingsgate Consolidated for the advanced Nueva Esperanza gold-silver project in Chile's Atacama region following the withdrawal of TDG Gold from its $C65M acquisition.
TDG plans to terminate the acquisition agreement signed in late 2020 because it anticipated conditions precedent could not be fulfilled by the Jan 31 completion deadline.
The Canadian explorer said it would instead focus on the Toodoggone production corridor in British Columbia after the results of 2021 exploration and drill programs exceeded expectations.
Following TDG’s withdrawal, Kingsgate retains 100% ownership of Nueva Esperanza and says it will follow up with other parties that have expressed an interest in acquiring the project. Kingsgate’s main focus remains on restarting the Chatree gold mine in Thailand.

Australian-based miner Kingsgate Consolidated is investigating financing options for the restart of its Chatree gold mine in central Thailand after receiving the four mining leases that have been pending approval since 2011, completing all necessary approvals to renew its metallurgical processing licence.
Kingsgate says the restart will require refurbishment of two processing plants with over 5Mtpa combined throughput capacity. An agency has been appointed to begin recruitment of critical technical staff and it is finalising its resources and reserves estimates.

West Australian developer WA Kaolin is on track to begin production in the June qtr as installation and precommissioning of the Stage 1 processing plant continues at one of the world’s largest remaining primary kaolin reserves, the Wickepin project 220km SE of Perth.
WAK is currently generating kaolin products from Wickepin’s estimated 30.5Mt ore reserve via a small-scale processing plant in Kwinana, near Perth. It aims to complete the first stage ramp-up to 200,000tpa by end-2022, with a subsequent second stage to 400,000tpa.

Australian coal miner Stanmore Resources has turned to international contractor EPSA for the award of a 5-year, $A564M opencut mining services contract for its 100%-owned Isaac Downs project in the Bowen Basin, Qld.
The appointment of the Spanish contractor’s Australian subsidiary EPSA Pacific comes after Stanmore terminated its existing mining services agreement with Golding Contractors, which has been active at the area’s mines since 2016.
Stanmore says the appointment of EPSA is a major step towards full production at Isaac Downs. Mining is due to begin early in the June 2022 qtr.
EPSA will become statutory coal mine operator while Stanmore transitions to owner-operatorship for its coal handling and preparation plant.

JOHANNESBURG, Jan 19 -- South Africa-focused gold miner Pan African Res has increased gold production for the 6-months ended Dec 31, 2021 by 9.9% on the previous Dec half to a record 108,085oz and says it is on track for 200,000oz for the June 2022 year.
Gold output from Barberton Mines was 49,117oz, down from 52,354oz, while Elikhulu and Evander Mines produced 25,900oz vs 26,863oz and 33,068oz vs 19,169oz respectively.
The report put the reduction in net senior debt at $US23.9M. Pan African will announce its interim results on Feb 16, 2022.

The predicted fall in Chilean major Antofagasta’s Dec 2021 year (FY/CY 21) copper production has been confirmed with output down to 721,500t from the previous year’s 733,900t, fuelled by a combination of drought, higher input costs and global supply chain challenges.
On the bright side, the preliminary numbers show gold output up 23.6% to 252,200oz, but with molybdenum down to 10,500t from 12,600t and net cash costs up to $US1.20/lb from $1.14/lb.
Group production in FY/CY 22 is expected to see 660,000t-690,000t of copper, 170,000oz-190,000oz gold and 8,500t-10,000t molybdenum. The copper and gold production reflect lower than expected grades at Centinela Concentrates and the temporarily reduced throughput at Los Pelambres because of the drought.

The continuing ramp-up of the processing plant at the Karlawinda project has delivered Dec qtr (Q2FY22) production of 30,316oz at AISC of $A1,048/oz for its 100%-owner Capricorn Metals, confirming the openpit mine in Western Australia’s Pilbara region as a low-cost, high-margin gold producer.
YTD gold production of 54,645oz, including commissioning phase production in Q1, puts Capricorn on track for its FY22 guidance of 110,000-120,000oz.
Capricorn says the introduction of oxide ore into the mill feed will lift throughput to 4.6Mtpa rate.
Cash flow of $40.1M (Q1: $27.6M) lifted Capricorn’s cash and gold on hand to $30M ($14.7M) after $10M debt repayment and $7.2M to complete development.

Dateline Resources has begun initial production from development drives and stockpiling of ore at its 100%-owned Gold Links project in Colorado, USA as it drives the recommissioning of the Lucky Strike mill ready to commence campaign testing next week.
The Australian-based company is targeting first gold concentrate production and sales from the historic mine in the current quarter.
Dateline plans to ramp up production initially to about 100tpd, with investigations under way to upgrade the circuit to 250tpd. The new producer is reviewing equipment and personnel requirements for options of owner-operator or contract models.
A new drilling contractor has mobilised to site to commence drilling of deeper targets and the remainder of the incomplete 12,000ft underground campaign.

Despite concentrate shipment volumes to customers from Turquoise Hill Resources’ Oyu Tolgoi operation in Mongolia remaining challenged, the company has managed increased production of its 3 major commodities for the Dec 21 year (FY/CY 21).
Copper-in-concentrate rose to 163,000t from the previous year’s 149,600t, gold rocketed to 468,000oz from 182,000oz and silver jumped to 977,000oz from 876,000oz, despite ore treated slipping to 39.12Mt from 40.2Mt.
Oyu Tolgoi is expected to produce 110,000t-150,000t of copper and 115,000oz-165,000oz gold in concentrates in FY/CY 22, lower due to stripping of the next cutback and processing lower grade stockpile material.
The company is still being hurt by a continuation of the COVID-19 related Mongolia/Chinese border restrictions that resulted in force majeure being declared from March 30, 2021. Shipments to Chinese customers recommenced on April 15, 2021.

The growing global demand for high-purity lithium carbonate has convinced project developer Lake Resources to commit to an expanded 50,000tpa production rate for its planned Kachi lithium brine project at Catamarca in Argentina.
The change from its originally proposed 25,500tpa will be incorporated in the project DFS due for completion in mid-2022.
It’s supported by drilling last year that indicated a considerable upside to Kachi’s identified resource of 4.4Mt LCE dating back to Nov 2018.
MD Steve Promnitz says Lake also has indications of financial support and the backing of technology partner Lilac Solutions for increasing the project size.

Sabre Gold Mines’ preliminary economic assessment for the resumption of production from its 100% owned Brewery Creek Gold Project in Yukon Territory, Canada, has flagged average annual production of 60,000oz for a total 473,000oz over an initial 8-year LoM.
The PEA gives the project an after-tax NPV5% of $US112M at an IRR of 27.6% at $1,700oz, increasing to $157M at an IRR of 35.7% at $1,900oz, based an after-tax average annual cash flow of $36M at $1,700oz, increasing to $44M at $1,900oz. Pre-production capital costs are estimated at $105M, with LoM sustaining costs of $18M and payback in 2.6-years at $1,700oz.

The continued ramp-up of its South Flank mine and the strong performance of its West Australian Pilbara system supply chain are credited for global major BHP’s strong Dec half-year iron ore production surpassing the challenges of COVID-related labour shortages and planned major maintenance programs.
BHP’s total H1FY22 iron ore production was 129.5Mt, up from 128.43Mt in the previous corresponding period, enabling the company to maintain its FY22 guidance of 249-259Mt.
Heavy rainfall in its Australian operations in late 2021, coupled with the same labour constraints, lowered BHP’s H1 metallurgical coal production to 17.67Mt (19.2Mt) and resulted in its FY22 guidance reducing to 38-41Mt from 39-44Mt previously.
Planned maintenance and asset integrity work across its Nickel West assets lowered nickel production to 39,300t (46,200t) and maintenance programs at Olympic Dam reduced copper output to 742,000t (841,300t), with FY22 copper production now expected to be towards the low end of its 1.59-1.76Mt guidance.

Global logistical and supply chain challenges have forced leading rare earths miner and processor Lynas to switch to direct chartering of ships to transport rare earth concentrate from its Mt Weld mine in Western Australia to its advanced materials processing plant in Kuantan, Malaysia.
Lynas says it made the change after shipping delays blew out to 33 days in Dec from 15 days in March.
While costly, it says the expense is outweighed by the benefit of ensuring continuity of supply for its customers. The company expects to use a combination of charter and commercial shipping in the short term.
Lynas posted Dec qtr (Q2FY22) total REO production of 4,209t (Q1: 3,166t), including 1,359t NdPr (1,255t). Q2 sales revenue was $A202.7M ($121.6M), resulting in a closing cash balance of $674.2M ($667.3M).

Australian miner Catalyst Metals has fallen just short of its 25,000oz gold target for the Henty gold-silver mine in NW Tasmania in its first 12 months of ownership, posting Dec qtr production of 6,397oz at C1 cash cost of $A1,662/oz.
Since it took ownership of the high-grade underground mine in Jan 2021, Henty delivered 24,792oz to the end of the year compared to 11,590oz for previous owner Diversified Minerals in 2020.
Henty has set a medium-term target of 40,000ozpa through measures including targeted mining of narrow vein orebodies in addition to its 2022 mine plan.

Five years of consistent performance have continued at the Kiziltepe mine in W Turkey, with total gold sales of 20,737oz for the year to Dec 2021 compared to 18,645oz in the prior year. Silver sales were 239,572oz (FY2020: 244,372oz).
The mine is majority owned by Turkish construction giant Özaltin Holding with Proccea Construction and Ariana Resources holding minority interests.
MD Dr Kerim Sener says UK-based Ariana continues to invest with a view to expanding its interests across Eastern Europe and further afield.

UK-based Xtract Resources has posted total mining contractor gold production of 2,811oz gold equivalent at its Manica mining concession in Mozambique for the Dec qtr (Q4FY2021), up from 1,586oz in the previous period. Xtract subsidiary Explorator also produced 767oz (Q3: 437oz).
Exec chairman Colin Bird says Xtract’s focus on progressing the Fair Bride hard rock operation will contribute to its optimism for production in FY2022.

Caledonia Mining can focus on other areas of its growth strategy after completion of the Central Shaft helped it achieve record FY2021 gold production of 67,476oz at its Blanket mine in Zimbabwe, beating the previous best of 57,889oz set a year earlier.
The result exceeded its revised guidance of 65,000-67,000oz, and the company is predicting FY2022 production of 73,000-80,000oz. CEO Steve Curtis says Caledonia is continuing to evaluate investment opportunities with a vision of becoming a multi asset gold producer.

Alamos Gold has finished the Dec 2021 year (FY/CY 21) meeting increased guidance of 457,200oz of gold, up 7% increase on the previous year and sales of 457,517oz at an average realized price of $US1,800oz for record revenues of $824M.
Preliminary results from the Young-Davidson mine in Ontario, Canada, saw production up to 195,000oz from 136,200oz, with Island Gold, in the same state, output to 140,900oz from 139,000oz and the Mulatos operations in Sonora, Mexico, up to 457,200oz from 426,800oz.
The company is expected to produce between 440,000oz-480,000oz in FY/CY22, increasing about 4% to between 460,000oz-500,000oz in 2023 and 2024.
Full financial/production results to follow.

A 10% improvement in head grade coupled with slightly higher throughput have helped industrial chemicals company Allkem achieve spodumene concentrate production of 230,065t at cash cost of $US345/t FOB for the year to Dec 2021 at its Mt Cattlin openpit mine and concentrator in Western Australia.
The result exceeded guidance of 210,000-220,000t. With demand for spodumene concentrate and lithium carbonate reflecting tight supply throughout the battery materials chain, Allkem forecasts FY2022 concentrate production of 200,000-210,000t at $400-430/t.
Allkem reported Dec qtr production at its Olaroz lithium project in Argentina’s Jujuy province of 3,644t, up from 2,802t previously.

Australian miner Kingston Resources aims to ramp up to full production rates over the coming three months after completing the acquisition of 100% of the Mineral Hill gold and copper mine in the Cobar Basin of western NSW.
The $A22.7M cash+shares transaction propels Kingston from developer immediately into the ranks of gold producers.
Kingston says the processing of historic tailings will provide a foundation to unlock the broader potential of Mineral Hill, with minimal capital required to access several production-ready openpit and underground deposits.