In this latest issue of International Mining Project News we report that Anglo American has produced its first nickel from the $1,900 million Barro Alto project in Brazil, the first of four Anglo American projects due to begin production by 2015 as part of a push to increase the company’s production volume by 50%.The plant will reach a 41,000 t/y production average over the next 5 years, with full capacity coming in the second half of this year, however Anglo American could potentially add another 66,000 t/y to this if its projects in Brazil, Jacaré and Morro Sem Boné are approved.Sundance Resources has completed two positive studies for the Mbalam iron ore project in the Republics of Cameroon and Congo, a Stage 1 DFS and a Stage 2 PFS, that leaves Sundance ready to make the transition from explorer to producer after obtaining Government approvals. The company plan Stage 1 production to begin in Q4 2014, focusing on the production of DSO for about 10 years, with Stage 2 covering the next 15 years of production of high-grade itabirite haematite concentrate. Sundance believes that Mbalam could reach a 100 Mt/y production rate, leading CEO and MD Giulio Casello to state that the iron ore project will make “a change in the global iron ore landscape”. Integra Mining has finished its first month of commercial production at its fully commissioned Randalls gold project with the operation processing 62,765 t to produce 7,616 oz gold. Although the company is still calculating production costs and operating profits but early indications hint at a significantly lower production cost than originally envisaged in the $574/oz feasibility study estimate.
Russian miner Polymetal has started up the onsite flotation concentrator at its Albazino mine and bagged the mines first gold concentrate. The concentrator has not yet reached full capacity with a second 750,000 t/y line due to reach commercial production in June 2011. Albazino reserves are an estimated 2.3 Moz gold, with production expected to reach 180,000 oz/y for 2012-2022, however exploration at the Albazino group of licenses (covering an area of 279 km2) continues with 42 km planned to be drilled in 2011 and a PFS on doubling the mill capacity, with extra feed coming from a new underground mine, is expected in Q4 2012. Polymetal believes the potential for resource expansion at the project makes the Albazino PFS one of the company’s top priorities in 2011.
BHP Billiton has moved its Olympic Dam project into the feasibility stage. The company plans to develop an open pit copper mine, alongside the existing underground operation, to increase its production from about 180,000 – 750,000 t/y over the next 30 years. Independent analysts have predicted that the project will add more than A$45 billion to South Australia’s GDP. Sandfire Resources has revealed maiden open pit ore reserves at its DeGrussa copper-gold project in Western Australia, that total 50,000 t contained copper and 29,000 oz contained gold, and plans to begin pre-strip for the initial open pit mining operation by mid year. Along with an open pit, oxide, copper-gold reserve and underground reserves the DeGrussa project has probable reserves of 465,000 t contained copper and 485,000 oz contained gold.
Gindalbie Metals has made the maiden iron ore shipment from its Australian Karara project. Once ramp-up has been achieved Gindalbie expects to rail around 60,000 t/m, during an eight-month contract with SMC, for shipping from the port of Geraldton. Once the 2 Mt/y DSO operation reaches full production high grade haematite from Karara will be sold to Gindalbie’s JV partner, Ansteel, as part of long term arrangements that will cover all production from the project. Ramelius Resources has agreed to sell its 90% interest in the West Australian Black Cat gold project to unlisted explorer Flinders Exploration (FEX). The deal is dependent on the planned A$5 million FEX listing on the ASX occurring within the next 6 months, and 10% Black Cat partner JH Mining not exercising its own rights on the transfer, but would see Black Cat producing gold in Q2 2012. After receiving a positive scoping study FEX believes that Black Cat is ripe for near term development and will begin a PFS into mining the projects JORC compliant 317,000 t gold resource as soon as the company has listed.
TNG Ltd is almost ready to begin a 4,000 m RC drilling campaign at its flagship Mount Peake iron-vanadium project in the Northern Territory. The company aims to upgrade part of the projects 139 Mt Inferred resource to Indicated or Measured status and will use some of the ore material for upcoming metallurgical testwork. TNG’s first scoping study returned strong financial returns, with average annual net cashflow, after capital expenditure, exceeding $148 million over a 24 year mine life. The company is now close to finishing a second scoping study on Mount Peake examining the potential for processing vanadium pentoxide into highly valuable ferro-vanadium.
Shaw River has completed a scoping study on its recently acquired (75.5% Shaw Rivier) Otjozondu manganese project in Namibia that has indicated the project’s ability to generate strong cashflows from a relatively low cost capital development. The company has proposed an initial 250,000 t/y mining operation, starting in 2012, but will be targeting 500,000 t/y within 4 years. Shaw believes that there is significant potential for growing Otjozondu’s maiden 6.8 Mt resource, as the resource covers only 7 km of a 144 km of strike within the manganese field, and plans further drilling this year in known mineralisation areas to target a mine life of at least 10 years. Anvil Mining has appointed Darryl Castle as President and CEO of the company. Castle, currently COO of Metorex, will be concentrating on further increasing Anvil’s Kinsevere copper project in the DRC.
All this and much, much more in International Mining’s Project News….
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