Tag Archives: British Columbia

BQE Water hits Selen-IX milestone at Kemess gold project

BQE Water says it has successfully completed the commissioning and performance test of the first industrial scale plant using its patented Selen-IX™ process for selenium management.

The installation at the Kemess property in northern British Columbia, Canada, owned by Centerra Gold has, since late August 2020, operated continuously. It has treated 65 litres/s (5,600 cu.m/d) of mine-influenced water to produce effluent containing selenium concentrations of less than two parts per billion, BQE Water said.

Fully staffed and operated by BQE Water with support from Centerra Gold mechanical and electrical maintenance personnel, the plant is expected to operate until the end of October and then shut down for the winter season. Plant operations are expected to restart in the Spring of 2021, BQE Water says.

Selen-IX was developed by BQE Water specifically to address the difficult to remove ‘selenate’ form of selenium from mine-influenced waters employing a physico-chemical, instead of biological, method of treatment.

As the Kemess mine plant enters the operations phase, Selen-IX becomes the first commercially available non-biological treatment process to be applied on a large industrial scale capable of removing selenate to levels below two parts per billion, BQE Water said. This is achieved without the risk of inadvertent organo-selenium production that is associated with biological systems. Additionally, the solid residue produced by Selen-IX is stable and is suitable for blending with tailings.

“This plant provides confirmation that a proven non-biological treatment approach for selenate is now available, something that has been lacking since selenium regulations were first introduced,” the company said.

Ron Hampton, Project Director for the Kemess project at Centerra Gold, said: “We are pleased that the water treatment plant met the conditions of the performance test, which is a major milestone for our project. The ability to effectively control selenium is key to the future operation of the Kemess underground project.”

David Kratochvil, President & CEO of BQE Water, added: “Centerra Gold’s exemplary commitment to a clean environment enabled us to first pilot and then implement Selen-IX on the basis of delivering a selenium management solution with superior outcomes compared to treatment systems used at other mines. I am extremely proud that we delivered on that promise.”

Centerra Gold is looking to re-establish the former operating Kemess site into an underground mine and processing facility, able to operate over a 12-year mine life, according to a 2016 feasibility study.

Taseko Mines’ Gibraltar operation honoured at BC Mine Reclamation Awards

Taseko Mines’s Gibraltar copper-molybdenum operation has been awarded the prestigious Jake McDonald Annual Award for Metal Mine Reclamation from the British Columbia Technical and Research Committee on Reclamation (TRCR).

TRCR’s annual BC Mine Reclamation Awards, which recognises outstanding achievement in mine reclamation in British Columbia, was held on September 23, 2020.

The aim of Gibraltar’s reclamation research program is continual improvement by identifying and introducing leading-edge ideas within the field of environmental science in mine reclamation, it says. With this goal in mind, projects at Gibraltar include:

  • Sampling of salmon from the Fraser River in partnerships with the Xatśūll First Nations and the North Shuswap Tribal Council to provide information to local Indigenous communities regarding the safety of consuming salmon captured at traditional fishing sites;
  • Studying and using innovative technologies to determine how reclamation activities promote the development and recovery of biological communities; and
  • Supporting BCIT, SFU, and Mitacs master’s students in a trial research program to expedite the development of soil microbial crust, specifically at the tailings storage facility.

Stuart McDonald, President of Taseko, said: “The Jake McDonald Award is the top mine reclamation award in British Columbia, a province that has a large mining industry. This achievement reflects the hard work of many talented people and we are honoured to have been chosen as this year’s recipient. The award adds to our track record of achievement which includes other recognition awards for employee safety and community service.”

Russell Hallbauer, CEO and Director of Taseko, added: “Gibraltar has been operating for nearly 50 years, generating opportunity for people and economic benefit for communities in the Cariboo. The efforts of our Gibraltar employees continue to be rewarded by achievements like this high-profile award. It is gratifying to see their talent and ingenuity being recognised at the highest levels. Gibraltar is proof of mining sustainability in action.

“We would specifically like to acknowledge the local Xatśūll First Nations and the North Shuswap Tribal Council Fisheries Department for their partnership and traditional knowledge in the annual Fraser River salmon sampling program. As well as a thank you to the Xatśūll First Nations reclamation crew, whose participation has contributed to the success of Gibraltar’s reclamation program.”

Xatśūll First Nations Chief, Sheri Sellars, said: “I am proud of the work Xatśūll First Nation community members have done in partnership with Taseko-Gibraltar. The fish sampling program and the reclamation work have been award-winning successes. Our members have also benefitted from employment opportunities and educational initiatives which stem from our relationship with Gibraltar.”

Taseko, the 75% owner of Gibraltar, restarted the operation in 2004. It is the second largest open-pit copper mine in Canada and the largest employer in the Cariboo region, according to the company.

Copper Mountain ups cleaner circuit efficiency, capacity with new flotation reactors

Copper Mountain Mining says it has successfully installed and commissioned the direct flotation reactors (DFRs) at its Copper Mountain mine, on schedule and on budget.

The installation represents the first stage of the mill expansion project at the operation in British Columbia, Canada, which will bring plant capacity to 45,000 t/d, from 40,000 t/d.

The installation of the Woodgrove DFRs increases the efficiency and the capacity of the current cleaner circuit, which is expected to increase the copper concentrate grade from about 25% to 28%, resulting in lower concentrate transportation, smelting and refining costs, Copper Mountain said.

Gil Clausen, Copper Mountain’s President and CEO, said: “The DFRs have been commissioned and turned over to operations. This is a testament to the great work of our operating and projects team. The DFRs are a low capital, high return project and we are already seeing improved concentrate grades.”

The next stage for the mill expansion project is the installation of the third ball mill, according to Clausen.

“We have the ability to rapidly restart this stage as we have maintained long-lead time expenditures and we also have the flexibility to accelerate the project as necessary,” he said. “With the installation of the third ball mill, we expect production to increase by 15-18% as a result of higher throughput and improved recoveries.”

The Copper Mountain mine, a conventional open pit, truck and shovel operation, is owned 75% by Copper Mountain and 25% by Mitsubishi Materials Corp.

It currently produces, on average, some 90 MIb (40,823 t) of copper equivalent annually, which is expected to increase to 120 MIb/y with the plant expansion.

Skeena Resources signs up Ausenco, SRK and AGP for Eskay Creek PFS

Skeena Resources is to commence a prefeasibility study (PFS) on its Eskay Creek gold-silver project in the Golden Triangle of northwest British Columbia, Canada.

The goal of the PFS is to de-risk Eskay Creek, while developing an appropriate execution strategy to ensure fast-tracked development towards commercial production, Skeena says.

Given the success of the team that developed the preliminary economic assessment (PEA) for Eskay Creek, Skeena says it will once again partner with Ausenco Engineering Canada, SRK Consulting, and AGP Mining Consultants to complete the PFS. The target completion date for the PFS is summer 2021.

This PEA envisaged a high-grade open-pit mine producing a life of mine average of 236,000 oz/y of gold and 5.81 Moz of at all-in sustaining costs (including by products) of $615/oz gold recovered. It would involve a 6,850 t/d mill and flotation plant producing a saleable concentrate.

Shane Williams, Skeena’s new Chief Operating Officer, said: “I am very excited to be joining the Skeena team at this transitional stage in the company’s history. The PFS is the next step in the evolution of Eskay Creek as we move this high-grade, open-pit project towards development and through to commercial production.”

A key work program as part of the development of the PFS will be an extensive infill drilling program to convert a large portion of the inferred resources into the measured and indicated category and following completion of the PFS, declare maiden reserves for Eskay Creek, Skeena said.

The company said: “Following the completion of the Eskay Creek PEA in 2019, several areas were identified that could be optimised and enhanced with further work. This includes optimising the metallurgy and the concentrate quality and to better optimise the flowsheet.

“Another focus area will be to gain a better understanding of the geotechnical characteristics in the open pit, which will allow for further pit optimisation studies. Preparations and planning for these work programs are ongoing.”

Subject to the agreement with Barrick, upon exercise of the option to acquire a 100%-interest in Eskay Creek, the company will enter the permitting process for the expanded Eskay Creek project, it said.

Skeena has already begun the environmental studies that are required for permitting and has initiated community engagement and consultation with Indigenous Nations.

Ascot Resources considers SAMS mining method after releasing positive feasibility study

The feasibility study on Ascot Resources Ltd’s Premier and Red Mountain gold projects in the Golden Triangle of British Columbia, Canada, has shown off some compelling economics, as well as indicate potential future upside using an emerging mining method called the shallow angle mining system (SAMS).

SAMS, similar to Alimak mining, according to Ascot, is a new technology system focused on the mechanisation of ore extraction developed by Quebec-based Minrail. The system cropped up in the “value enhancement opportunities” section of Ascot’s study.

Ahead of that, the study, led by Sacre-Davey Engineering Inc, showed off some encouraging results.

Using a base case of $1,400/oz gold, $17/oz silver and a C$ to US$ exchange rate of 0.76, Premier and Red Mountain could provide a post-tax net present value (5% discount) of C$341 million ($242 million) based on initial capital expenditure of C$147 million. Life of mine (eight years) payable production came out as 1.1 Moz of gold and 3 Moz of silver with peak annual production of 180,000 oz of gold-equivalent.

The study’s mine plan generally used a combination of three mining methods: longhole (64%), inclined undercut longhole (14%) and room & pillar (12%). Minor amounts of cut and fill (2%) and development ore (8%) were also included to extract the mineral reserves of 6.2 Mt at 5.9 g/t Au and 19.7 g/t Ag.

The company assumed a “lease to own cost” for the mobile mining equipment, which primarily consisted of two scissor lifts, three jumbo drills, five haul trucks, five LHDs, 15 ventilation fans, and several other smaller supporting pieces of equipment.

Benefitting from an existing processing facility at the Premier gold project, the study envisaged using a SAG and ball milling flowsheet followed by the refurbished carbon-in-leach circuit. Over the mine life, the plant will operate 365 d/y to produce gold doré with an overall plant availability of 92% and an average throughput of 2,500 t/d, according to Ascot. In the latter part of year three, ore from the Red Mountain project will be introduced to the existing mill facility, it said.

While the economics and technical elements of the feasibility study stacked up, the company also laid out some potential “value enhancement opportunities” beyond the scope of the study.

This is where SAMS and Minrail came in.

Ascot said there was potential for reducing mining dilution and development by undertaking further studies and testing of SAMS.

“SAMS is similar to Alimak mining but at a low angle, with a central drive and long holes drilling laterally, offering the potential to significantly reduce dilution, operating costs and mine capital development costs,” Ascot said.

According to the company, the method is currently being tested by Minrail at Eldorado Gold’s Lamaque mine in Val D’or, Quebec.

A press release from Minrail posted around a year ago said Lamaque had ordered a “group of mining equipment” to undertake underground test work using SAMS at the operation.

“After an extensive review of all currently available underground mining methods and available technologies that are suited to narrow, shallow dipping deposits, Eldorado has perceived the great potential of Minrail’s technology to complement its mine development plans using SAMS, which incorporates critical mining innovations focused on safety, productivity and flexibility,” Minrail said in the statement.

The resource model at Lamaque encompasses several shallow dipping lenses that are believed to be amenable to using SAMS, Minrail added.

This test work was due to take place last year, according to the release.

Yet, in January, the Quebec government announced it would provide a C$150,000 grant to Minrail to complete a prototype SAMS system that would be installed at Lamaque.

Teck examines solar power options with acquisition of SunMine energy facility in BC

Teck Resources says it has purchased the SunMine solar energy facility in Kimberley, British Columbia, from the City of Kimberley.

SunMine, located on fully reclaimed land at Teck’s former Sullivan Mine site, is a 1.05 MW solar facility that has been operational since 2015. It is the first grid-connected solar facility in the province and the first built on a reclaimed mine site. It also has potential for future expansion, according to Teck.

Don Lindsay, President and CEO of Teck, said: “Our involvement with SunMine is part of our commitment to taking action on climate change, advancing renewable energy development, and supporting the global transition to a low-carbon economy.

“SunMine will help us gain first-hand experience with solar power generation as we advance the use of solar power at other operations.”

Teck has been involved with SunMine from its beginning, having provided the land and site infrastructure for development of the solar facility. Teck’s former Sullivan mine was a major producer of zinc, lead and silver, operating for nearly 100 years before closing in 2001, and close to 1,100 ha of the former mining area has since been reclaimed.

Development of SunMine aligns with Teck’s approach to working with stakeholders to develop post-mining land uses, from wildlife habitat to economic diversification, the company said.

Since 2011, Teck has implemented projects and initiatives to reduce greenhouse gas emissions at its operations by 289,000 t – the equivalent to taking over 88,000 combustion engine cars off the road, according to Teck – and 81% of Teck’s total electricity consumption is from renewable energy sources.

The sale amount is around C$2 million ($1.53 million), equal to the City of Kimberley’s outstanding debt obligation for SunMine, Teck said.

Conuma Coal chooses Komatsu 830E-5 electric drive haul trucks for Wolverine

Conuma Coal Resources has replaced a fleet of haul trucks at its Wolverine metallurgical coal mine, in British Columbia, Canada, with five new Komatsu electric 830E-5 models supplied by dealer SMS Equipment.

Conuma said it carried out “comprehensive engineering and financial analysis” on this move and determined the deployment of the new trucks would “meaningfully increase production” at the mine, largely due to their improved overall availability. Contributing factors included easier maintenance and higher durability, while the 830E-5’s are also quieter and more fuel-efficient than the existing haul trucks, according to the company.

John Schadan, Conuma’s President, said: “Conuma is confident that we have chosen the right partners for results with Komatsu equipment and SMS Equipment’s parts, service and support. Their proven results and experience speak to the quality of their products and service.”

The first 227 t-payload 830E-5 was released to the mine, which produces more than 1.5 Mt/y of hard coking coal, at the end of August, and the remainder of the fleet will be delivered over the next two months. The new trucks complement existing equipment that SMS Equipment supports on Conuma’s mine sites, the companies said.

Dennis Chmielewski, EVP of Mining at SMS Equipment, said: “SMS Equipment is committed to working with Conuma through the long term to ensure full support, resulting in maximised uptime and availability of their Komatsu fleet.”

The Komatsu 830E-5 electric truck is a leader in the 250-ton (227 t) class market with proven durability and reliability, according to the mining OEM. Powered by a 2,500 hp (1,864 kW) Komatsu SDA16V160 engine, the drive system provides efficient transfer of power to the ground while realising low fuel consumption and excellent reliability, it added.

Sandvik provides productivity boost at New Afton block cave mine

An automated loading solution has enabled Canada’s only block cave mine to mitigate mud rush hazards and improve productivity – and it paid for itself in less than two months, according to Sandvik.

Operated by New Gold, New Afton development began via decline ramp in 2007 and the mine reached commercial production in 2012. The mine, which employs a workforce of around 450, produced 77,329 oz of gold and 85.1 MIb (38,601 t) of copper in 2018.

Tonnage is tantamount to profitability at New Gold’s New Afton mine in south-central British Columbia. The mine has moved and milled as many as 22,000 t of ore in a single day and routinely extracts 18,500 t from Canada’s only block cave.

Like other prolific block caves, New Afton enjoys enviable efficiency at extremely low operating costs. But the mine has also had to conquer one of the biggest block cave challenges: mud rush.

Mitigating mud rush hazards was the major motivation for implementing automated loading at New Afton. As the block cave grew, more and more drawpoints became finely fragmented and wet. By 2016, one in five drawpoints were assessed as high risk, according to Sandvik.

To ensure operator safety, New Afton stopped manual mucking in those drawpoints and implemented line-of-sight teleremote loading.

“When 20% of your ore source needs to be remotely mucked, you run the risk that you can’t supply your mill with adequate tonnages,” said Mine Manager Peter Prochotsky, who joined New Afton in 2009 as a Mining Engineer and has seen the operation grow from a development project into Canada’s highest-tonnage underground mine. “The line-of-sight systems just weren’t keeping up with the growing production demand over the years and we needed a new way of doing things.”

New Afton conducted an engineering study in late 2016 to assess the potential value of implementing automated production loading to overcome the production constraint caused by line-of-sight and further improve safety.

The mine trialled an AutoMine-equipped Sandvik LH514 for one month in early 2017. Although the 14-t loader proved too long for some of the cave’s tighter turns, New Afton estimated impressive cycle times and buckets per shift for a smaller Sandvik LH410 based on the trial performance of the Sandvik LH514.

“To transition from a line-of-sight solution to an automated solution, we calculated a 54-day payback period,” Prochotsky says. “If we continued using line-of-site teleremotes, that production loss was essentially, over 54 days, the value of a brand new Sandvik LH410. And, we obviously made the choice pretty quickly that it was the right way to go.”

New Afton’s existing block cave extraction level layout wasn’t optimised for automation, Sandvik said. “Two dedicated colleagues worked hand in hand to champion the project, implementing the system and building operator buy-in,” it added.

Bob Garner, a technical expert with decades of block cave experience, led the operational side and trained operators on the AutoMine system. Electrical Instrumentation Technician, TJ Williams, meanwhile, handled installation of all electrical systems.

Garner says: “We needed to figure out the infrastructure, figure out the Wi-Fi, where we were going to put antennae points, how far apart they had to be, and then teach the loader its path and dial everything in to get it running efficiently.”

Sandvik provided initial engineering assistance, starting system implementation in the west cave that Williams was able to replicate himself in the east cave.

“The infrastructure is relatively simple,” he says. “Sandvik provided excellent documentation that we followed to a ‘T’ and I picked things up along the way working with their engineers. The overall process of installation was pretty straightforward.”

Within a week of commissioning in late 2017, the first of the mine’s two automated Sandvik LH410s was already proving significantly more productive than the teleremote solution, the mining OEM said.

Williams says most of the mine’s line-of-sight operators were comfortable running AutoMine within five days.

“The Sandvik automated loaders are much more technologically advanced than the competitor loaders featuring aftermarket line-of-sight, but the learning curve wasn’t steep,” he says. “Everybody picked it up really easy.”

New Afton has used its Sandvik LH410s for production mucking on the mine’s extraction level, one of the block cave’s five main underground levels. The average tram distance between drawpoint and ore pass is only 250 ft (76 m), limiting automation’s benefits.

Prochotsky says: “The longer the distance from drawpoint to ore pass, the faster the loader can tram and complete a cycle and the greater the value of automation.”

Despite the limitations created by the level’s short trams, the automated Sandvik LH410’s cycle time is almost twice as fast as the mine’s line-of-sight loaders, according to Sandvik. Manual mucking is still faster in the areas New Afton can use it, but the automated Sandvik LH410’s lower downtime and higher utilisation compensate for its modestly higher cycle time, the company said.

“At the end of the day, the tonnes moved by a manual loader and an automated loader are very similar,” Prochotsky says.

On top of recouping the investment cost of the automated loader in less than two months of operation, New Afton has experienced equipment health benefits on its bottom line, Sandvik said.

“AutoMine steers the loader with pinpoint precision and its collision avoidance features help eliminate damage while enabling high speeds that accelerate overall cycle time,” the equipment maker added.

“We used to do about C$10,000 ($7,565) of collision damage per loader per month, directly related to operating our line-of-sight loaders in a tight environment,” Prochotsky says. “This cost has dropped to zero thanks to AutoMine.”

The mine has also seen a 30% increase in tyre life on the automated Sandvik LH410s compared with the mine’s other 10 t loaders, Sandvik said.

After successfully managing the step change from line-of-sight to automated loading, and improving mucking efficiency while mitigating mud rush hazards, New Afton started thinking bigger.

For the first 18 months, operators oversaw the automated Sandvik LHDs from two underground control rooms. New Afton recently finalised a permit amendment process with British Columbia’s Ministry of Energy, Mines and Petroleum Resources to allow the mine’s operators to run AutoMine from a third chair on surface, eliminating travel time and enabling automated mucking through shift change.

“We think that’s really going to enable us to unlock the productivity benefits of automation,” Prochotsky says. “The gains we expect to see from this change should more than close the narrow gap between manual and automated mucking productivity.”

While New Afton focused almost solely on production during 2018, the mine has also recently restarted development to access a new zone that is expected to extend mine life to 2030. New Afton must maintain the same 18,500 t/d output despite three fewer operating hours due to twice-daily blasting.

Running AutoMine from surface enables New Afton to solve this challenge, too.

“We’ll keep our block cave productive by using an automated loader to muck our development rounds through blast clearing delays,” Prochotsky says. “If we can save 90 minutes in each shift, that’s a huge efficiency gain that also de-risks the project.”

Prochotsky contends New Afton couldn’t have implemented automated loading at a more ideal time.

“The opportunity to take your learnings and put them into action happens infrequently in block cave mines, as a new level is only developed every five to 10 years,” he says.

“We’re fortunate that we brought the AutoMine system in at really the perfect time for us, to learn how to use it for maximum benefit and position ourselves to take full advantage of it in future mine design.”

For New Afton, AutoMine has proven to be the complete automation solution that management assessed it to be, according to Sandvik.

“If another Mine Manager came to me and asked me who they should automate with, I think that Sandvik has the best system on the market, and it’s really because they have the total package,” Prochotsky says.

“They’ve got field service representatives available to come to your site to help train your people, they’ve got great safety documentation that allows you to make sure there won’t be any incidents or accidents underground, and they’ve got a product that works. It’s a pretty simple solution in my mind.”

The full version of this article appeared first as a Sandvik Solid Ground online news story, see following link: https://solidground.sandvik/the-ultimate-proving-ground/

Komatsu Mining puts down roots in Western Canada with $40 m facility

Komatsu Mining has announced plans for the construction of a new facility to support the growth of its mining business in Western Canada, a region known for the oil sands industry, as well as significant coal operations.

The company plans to invest approximately $40 million to construct a 85,000 sq.ft (7,897 sq.m) sales and service facility in downtown Sparwood, British Columbia (artists impression shown), where the company has been operating for more than 30 years, it said.

Komatsu plans to break ground at the new site in early August, with construction to conclude by the end of 2020.

Steven Droste, Komatsu’s Regional Manager – Western Canada, said: “This facility will be a great new place of work for our employees while enhancing our capabilities, so we can continue to provide our customers unrivalled service delivery.”

Komatsu will continue to operate out of its leased facility in Sparwood until the new building is complete. The company purchased the 15 acre (6 ha) parcel for its new facility from the District of Sparwood and is working to prepare the land for development, it said.

Newcrest to apply ‘unique technical capabilities’ to copper-gold mine in BC, Canada

Newcrest Mining has entered into an agreement to acquire a 70% joint venture interest in Imperial Metals’ Red Chris copper-gold mine and surrounding tenements in British Columbia, Canada, for $806.5 million.

The deal will see Newcrest become Red Chris operator, in charge of deciding how to exploit the copper-gold porphyry open-pit mine.

Newcrest said the acquisition of Red Chris was “a measured entry” into North America and aligned with its stated strategic goals of building a global portfolio of Tier 1 orebodies where Newcrest can “deliver value through application of its unique operating capabilities”.

Red Chris comes with a mineral resource of 20 Moz of gold and 5.9 Mt of copper. The acquired property comprises 23,142 ha of land with 77 mineral tenures, five of which are mining leases, and sits within the traditional territory of the Tahltan Nation.

Newcrest Managing Director and CEO, Sandeep Biswas, said: “We are delighted to add this asset into the Newcrest portfolio. Following due diligence, we believe we can bring our unique technical capabilities to unlock the full value potential of this orebody in one of the premier gold districts in the world.

“We have identified a clear pathway to potentially turn this orebody into a Tier 1 operation. The geology of Red Chris is similar to our Cadia orebodies in Australia and we will be applying our considerable experience in exploration, open-pit mining, caving and processing to maximise the value of Red Chris and the opportunities in the surrounding region. We look at this opportunity in the same way as we do with Cadia, where we have proven we can create significant value from deep underground porphyry orebodies.”

Following the intensive due diligence process Biswas mentioned, Newcrest said it has a two-stage plan to deliver value from the acquisition:

Stage one will see the company apply its “Edge transformation approach” to the existing Red Chris open-pit mine and processing plant.

“Newcrest believes it can add significant value to Red Chris by applying the same Edge mind-set and approach that has led to significant operating improvements across all Newcrest operations over the last five years,” the company said.

Examples of where successful changes have been implemented to safely accelerate cash maximisation include process plant optimisation (debottlenecking, recovery uplifts, process control, improving concentrate quality), mine optimisation (improving orebody knowledge, grade control, fleet management system, mine planning) and supply chain cost reduction, according to Newcrest.

As part of this stage, Newcrest said it will initiate an extensional drilling programme.

“Newcrest intends to optimise the current open-pit mine plan and pursue initiatives to improve operational productivities and milling recoveries,” Newcrest said.

The current open-pit mine has an existing 11 Mt/y processing plant and associated infrastructure which allows ‘brownfield’ expansion options in the future, it added.

Stage 2 will see the company apply “industry leading technology”.

The company said: “Newcrest believes it can add significant shareholder value by applying technology to Red Chris that it has successfully applied at its other operations.”

Examples include block caving – “Newcrest believes the orebody has the potential to become a high margin bulk underground block cave. Newcrest will accelerate the necessary drilling and studies. Newcrest intends to conduct studies and review the ore reserve of the Red Chris operation to allow for reporting in accordance with JORC 2012 to take into account the potential transition to a future block cave operation.”

Coarse ore flotation could also be considered, the company said.

“Having demonstrated the recovery benefits of coarse ore flotation at Cadia, Newcrest will look to apply this technology to Red Chris,” Newcrest said.

And, then there is the application of one of the most popular technologies today: ore sensing and sorting, of which Newcrest said: “Positive results from trials underway at Telfer may lead to this technology being deployed at Red Chris.”

In terms of exploration, Newcrest said it would apply its experience in deep underground brownfield and greenfield exploration on the existing orebody and the broader land package to potential uncover more tonnes of copper and ounces of gold.

“Newcrest has identified opportunities to expand Red Chris’s mineral resources along strike and at depth in areas where there has been limited deep drilling to date. Historical shallow drilling indicates that there is also potential for further deep discoveries to be made in the larger tenement package.

“Newcrest will be targeting prospective regions beyond the current mine looking for further porphyry centres including small footprint, higher-grade gold-rich porphyry systems leveraging knowledge gained from Cadia which has similar geological features,” Newcrest said.

Red Chris, on the northern edge of the Skeena Mountains, commenced construction in 2012 and was completed in November 2014 for a total cost of C$661 million ($492 million). Commercial production commenced in July 2015 and, in the first nine month of 2018, the mine produced 20,320 t of copper and 29,569 oz of gold.