The latest and 260th issue of International Project News, just out, has updates on some seven prefeasibility studies, 12 feasibility studies, 11 projects in development, four mines that have gone into production, four operations in expansion, over a dozen in acquisitions and mergers and many new appointments to new positions. Contact [email protected] for more information on subscription details for this unique information resource.
In pre-feasibility, Seabridge Gold Inc has announced the results of an updated PFS for its 100% owned KSM project located in northern British Columbia, Canada. The 2016 PFS incorporates many design improvements over the 2012 PFS and the updated financial projections confirm that KSM is an economic project at current metal prices. Capital and operating costs and metal prices have been updated to the 2016 economic environment. Estimated Base Case initial capital costs including pre-production mining costs are about 12% lower despite major enhancements while estimated Base Case total cost per ounce of gold produced is $673, up 13% from the 2012 PFS. Improved mine sequencing decreases the early strip ratio while increasing gold grade 4% and copper grade 1% through the payback period; Increased operational flexibility is achieved by switching ore transport between the mine and the process plant from conveying to automated trains allowing a flexible ore delivery rate to the plant while maintaining ore source scheduling functionality.
Moving on to feasibility news, Australian lithium developer Pilbara Minerals Ltd has advised that it has completed the Definitive Feasibility Study (DFS) on the initial 2Mtpa development of its flagship 100%-owned Pilgangoora Lithium-Tantalum Project in WA, with the results confirming the Project’s “exceptionally strong financial and technical merits and putting the company on track to become Australia’s next major lithium producer. The highly successful DFS provides a strong platform for the company to complete additional project off-take arrangements (in addition to its existing off-take agreement with General Lithium), secure project financing and commence construction – which is targeted to commence in the fourth quarter of CY2016 with commissioning targeted during Q4 CY2017.” Based on the proposed 2 Mt/y stand-alone mining and processing operation, the DFS indicates that Pilgangoora will be a robust, high margin project with current forecast life-of-mine revenue of A$9.23 billion and LOM Project EBITDA of A$4.22 billion over an estimated 36-year mine life.
George H. Read, P. Geo., Senior Vice President Exploration and Development of Shore Gold Inc has announced that Shore has successfully completed significant aspects of test work towards the Updated Feasibility Study on the Star-Orion South Diamond Project. The work completed in recent months includes AG mill test work on Star pyroclastic kimberlite; X-ray Transmissivity recovery of diamonds from Star pyroclastic kimberlite; geotechnical investigations of the mechanical properties of the Lower Colorado Shale using an in-situ pressure meter; mine planning scenarios to investigate the economics of higher grade starter pits; Investigation and optimization of in-pit continuous mining systems for both the removal of overburden and ore recovery.
In mine project development, Malachite Resources Ltd has provided an update in respect of the Lorena Gold Project, which is located about 15 km east of Cloncurry in northwest Queensland. Malachite has been advised by Ore Processing Services Pty Ltd (OPS) that it has entered into a binding Heads of Agreement with MKS Precious Metals (Australia) Pty Ltd (MKS) to acquire their interest in the plant and equipment constructed by BCD Resources NL on the Lorena Gold Project site. When the acquisition by OPS is completed, Malachite and OPS will then have an unfettered opportunity to proceed with the development of the Lorena Gold Project using the Lorena Concentrator Plant.
SLAM Exploration Ltd reports that it is processing gold ore from the Maisie gold deposit through the turnkey gold plant at its wholly-owned Menneval gold project in northwestern New Brunswick. The company stockpiled 130 t of crushed ore that was extracted from a high grade section of the Maisie gold deposit known as the “Hook”. An additional 150 t of quartz vein material are stockpiled and ready for crushing.
Berkeley Energia has announced it has appointed MDM Technical Africa (Pty) Ltd, a wholly owned subsidiary of the Amec Foster Wheeler Group to undertake the Front End Engineering and Design (FEED) for the Salamanca mine. Managing Director, Paul Atherley, commented: “Amec Foster Wheeler will play a crucial role in the successful development of the low cost Salamanca mine, which is the only uranium mine in the world currently in construction.” The FEED is the execution phase of the project during which the overall engineering and process design is translated into equipment procurement packages and awards to specialist subcontractors.
Finally, in new producing operations, W Resources PLC, the tungsten, copper and gold, production, exploration and development company with assets in Spain and Portugal, is pleased to announce that tungsten concentrate production has successfully commenced at the La Parrilla mine in Spain ahead of schedule. Production of tungsten and, subsequently, tin concentrate is expected to ramp-up over the next 6 months to reach a run rate of 400 t/y in early Q2 2017. The new crusher with capacity of 1.95 Mt/y ROM will be installed early in 2017, significantly reducing unit operating costs and increasing capacity.
A detailed update on W Resources, Berkeley Energia and other key companies active in mining in the Iberian peninsula can be found in IM October ’16 pp10-22