Latest issue of International Mining Project News available (March 26): The joint venture agreement between Rio Tinto and Chinalco at the Simandou iron ore project in Guinea is big news this issue, with both companies signing a Memorandum of Understanding for the development and operation of the mine. There are also five diamond project updates including Obtala Resources’ alluvial mining operation in Sierra Leone and an updated scoping study on Stornoway Diamond’s Renard project in Canada. Results of Canada Lithium Corp’s Quebec lithium project prefeasibility study are also included, as well as details of Mexoro Minerals reaching commercial production at its Cieneguita gold mine and mill in Chihuahua, Mexico, the award of a key contract at BC Iron/Fortescue Metals’ Nullagine iron ore joint venture in the Pilbara, and much more.
The Simandou joint venture covers rail and port infrastructure as well as the mine itself. Rio currently owns 95% of the project with the remaining 5% being owned by International Finance Corp. Under the MoU, Rio’s interest will be held in a new joint venture. Chinalco will acquire a 47% interest by providing $1.35 billion on an earn-in basis through sole funding of ongoing development work over the next two to three years. Once Chinalco has paid its $1.35 billion, the Rio Tinto and Chinalco effective interests in the Simandou project will be 50.35% and 44.65% respectively. Rio’s Simfer subsidiary will continue to manage the development of the project. Both companies will now work on finalising definitive and binding transaction documentation. In addition to the sole funding provided by Chinalco, the project will require significant additional development expenditure before it becomes fully operational.
Stornoway’s updated scoping study on the Renard project comprises a conceptual mine plan, capital and operating cost estimates, and cash flow model prepared by Scott Wilson Roscoe Postle Associates, a diamond processing plant design, with capital and operating cost estimates, prepared by AMEC Americas, and social, environmental and permitting aspects contributed by Stantec Experts. It has a conceptual mine life of 25 years based on a production rate of 1.8 Mt/y and total diamond production of 30 Mct.
The Quebec lithium project is expected to produce around 42.6 MIb/y of battery-grade lithium carbonate (Li2CO3) onsite. The prefeasibility study has been prepared by BBA in conjunction with SGS Lakefield, Golder Associates, Genivar and Caracle Creek International Consulting. It shows a Measured and Indicated resource of 31.6 Mt at 1.11% Li2O and an Inferred resource of 38.9 Mt at 1.12% Li2O. The project could potentially produce a high quality, battery-grade product (greater than 99.5% LI2CO3).
Mexoro Minerals’ Cieneguita operations have been conducted and sustained fully around the clock, 7 d/week for over 30 days with minimal stoppages. These achievements have been made possible by the establishment of additional water supply systems and improvements in the reliability of the power transmission and delivery facilities. This now enables Mexoro to focus on optimising recoveries and incrementally increasing throughput of ore to the mill. With the improvements and the anticipated increases in process performance, the company anticipates that its production rate of 35,000 oz/y of gold equivalent for the joint venture with the corresponding net cash flows will be reached. To date the mill has produced 1,088 t of primary concentrates, of which 725 t have been shipped to the nearby concentrator at Choix for regrinding and final flotation and sale under the company’s concentrate sales contract with Trafigura.
At the Nullagine Joint Venture, Complete Portables has been awarded the construction contract for the Stage I, 60-man camp at site. Work will begin immediately on the planning and construction of the first stage of the accommodation village, which will be used for final infill drilling and to complete the remaining heritage surveys. Additionally, BC Iron has awarded the ore haulage contract for Nullagine to Western Australian transport and logistics company, Mitchell West.
There is also news on the historic Sunshine mine in Idaho, with Kootenay Gold raising gross proceeds of up to $20,000,000 in preparation for its bid to acquire the mine, Ivanhoe Mines’ Kyzyl gold project in Kazakhstan, Century Mining’s record production at its San Juan gold mine in Peru and Goldplat’s gold recovery operations in Tema, Ghana, and many more…To receive the full 35+ page report, subscriptions to this service can be registered and paid for on-line (SUBSCRIBE TO IM PROJECT NEWS BUTTON), or contact [email protected] for a free trial copy.