Tag Archives: El Limon

Torex Gold Resources heralds breakthrough at Media Luna project

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Torex Gold Resources Inc has announced the successful breakthrough of the Guajes Tunnel at its Media Luna Project in Mexico, ahead of schedule.

The Guajes Tunnel unifies the Morelos Complex by connecting the existing operations on the north side of the Balsas River with the growing resource base of the Media Luna Cluster on the south side.

Jody Kuzenko, President and CEO of Torex, said the breakthrough represents a critical milestone in the development of the Media Luna Project, which remains on track for first concentrate production in late 2024.

“The Guajes Tunnel will be the primary conduit for transporting ore and waste from the Media Luna deposit on the south side of the Balsas River to the processing plant on the north side and will materially improve efficiencies associated with the movement of employees, contractors, equipment, services, and supplies between both locations.

“Breakthrough of the Guajes Tunnel was achieved three months earlier than scheduled in the March 2022 Technical Report, primarily driven by the world-class advance rates achieved by our team. Rates north to south have averaged 7.1 m/d since the start of the year, including a record average advance rate of 8 m/d in November. The advance rates are truly impressive considering the dimensions of the tunnel are 6.5-m high by 6-m wide and that secondary development and installation of services have kept pace with overall tunnel progress.

“We expect to commence anchor bolting for the 7-km overhead conveyor in early 2024, which will pave the way for the installation and then commissioning of the conveyor in August 2024 well ahead of completing the necessary upgrades to the processing plant.

“I would like to personally thank all employees, contractors and suppliers involved in driving the Guajes Tunnel for achieving this significant milestone safely and ahead of schedule.”

Record Rokion battery-electric vehicle order set for Torex Gold’s Media Luna

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Torex Gold’s Media Luna project in Mexico has been behind a surge of battery-electric vehicle contract activity of late, with the latest recipient being Saskatoon-based Rokion.

The gold mining company has ordered a 28-strong fleet of BEVs from Rokion, set to start being delivered at the back end of the year.

These vehicles will be crucial in providing zero emission and effective personnel transport and production support functions at the project, which is set to extend the life of mine of its El Limón Guajes (ELG) Complex through at least 2033.

Media Luna is located 7 km south of the existing ELG Complex comprised of the El Limón, Guajes and El Limón Sur open pits, El Limón Guajes underground mine, plus the processing plant and related infrastructure. It is an underground deposit primarily containing gold, copper and silver mineralisation, separated from the ELG Complex by the Balsas River.

The underground mine is designed for an average production capacity of 7,500 t/d, predominately using a mining method of longhole stoping with paste backfill, supplemented by mechanised cut and fill stoping where appropriate. It will be a fully mechanised operation with the primary access to the mine via the Guajes Tunnel, which, itself, will have a length of approximately 6.5 km, creating an underground connection between the ELG Complex and the Media Luna mine. The ELG site will continue to serve as the base of mine operations, with all production levels accessible from the internal mine ramp.

Torex expects to bring Media Luna into commercial production in early 2025, ramping up to 7,500 t/d by 2027 and creating one of Mexico’s largest underground mines. It contains reserves of approximately 2.1 Moz gold, 18.9 Moz silver and 444 Mlb copper.

As of March 31, 2023, physical progress on the project was approximately 24%, according to Torex, with detailed engineering, procurement activities, underground development and surface construction advancing. The project continued to track to overall schedule and budget, the company noted.

Equipment deliveries will be key in advancing the project in line with the schedule and, earlier this year, both Sandvik Mining and Rock Solutions and MacLean announced sizeable equipment orders – both battery- and diesel-powered – related to the mine’s development and production phases.

Now, IM can reveal that Torex has also sealed an agreement with Rokion.

Rokion are to supply 27 of its battery-powered utility trucks to the operation along with one R700 forklift – the latter representing the company’s first order for a battery-powered forklift.

According to Rokion, these trucks can navigate mine sites with 20% grade at a full gross vehicle weight and full speed while traveling more than 70 km per charge. This is more than enough to get through a full shift without charging. And, while availability is a key selling point, Rokion says its battery-powered vehicles have been designed for simple and easy maintenance. The modularity of the components are “ideal for remote mining locations where the priority is to have dedicated service personnel with expertise in production mining equipment”.

When it comes to vehicle specifics, Rokion outlined that Torex would receive 10 R200 battery-powered trucks – configured to carry up to five passengers – two R200 trucks set up as two-passenger surveyor utility vehicles, two R200 two-person “6×6 Surveyor” utility vehicles and four R200 two-person “6×6 Electrician” utility vehicles. This would be complemented by seven R400 vehicles fitted out to carry 12 passengers – which have four-wheel steering to greatly improve manouevrability, according to Rokion – and two R400s equipped for three passengers able to carry out mechanic duties.

The Rokion order from Torex for Media Luna includes 16 of the company’s R200 battery-electric vehicles

Gertjan Bekkers, Vice-President, Mines Technical Services with Torex, said: “Our light-vehicle fleet will be used to drive fairly significant distances between our work sites on every shift, so the flexibility and range of these vehicles were key considerations for Torex during the procurement phase. The tunnel connecting Media Luna with ELG is like our horizontal shaft, connecting to the internal ramp of the Media Luna mine. Of course, we’ve also carefully considered equipment reliability and we were particularly impressed by the enhancements that Rokion has made to their portfolio since entering the underground hard-rock mining market.”

Kipp Sakundiak, CEO of Rokion, said the two companies have struck up a very important partnership over the last year or so when the engagement began.

“After getting to know the team at Torex, we are excited about the opportunities,” he told IM. “It is a good thing when you have a vendor-supplier relationship whereby both companies share similar values.”

Deliveries of the vehicles will start in October, with the full fleet set to be in place in 2025, according to Sakundiak.

Muckahi monorail-based tech removed from Torex’s Media Luna plans

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Torex Gold has decided to move forward with “conventional development and mining methods” for its planned Media Luna project in Mexico, following the outcome of various risk assessments, extensive comparative financial analyses, and the results to date of the Muckahi test program at El Limón Deep (ELD), the company said.

In the company’s June quarter results – which saw “solid operational performance” of 118,054 oz of gold produced, adjusted EBITDA of $122.1 million and generation of $21.9 million of free cash flow – Torex said the monorail-based technology would no longer be used in the Media Luna feasibility study currently being worked on and expected to be published in a technical report in the March quarter of 2022.

It explained: “After an analysis of the results to date of the Muckahi test program at ELD and an assessment of business risks, the board has approved a decision to pursue the Media Luna feasibility study on a conventional mining basis. While the monorail-based technology has progressed since the beginning of the ELD test program, testing to date of the individual components operating as an integrated system demonstrates that additional process and equipment engineering is required to achieve desired advance rates, cycle times, and associated cost efficiencies, and that there is insufficient available upside in using the technology as it relates to financial or schedule considerations for Media Luna.”

The use of the Muckahi technology, invented by former President and CEO Fred Stanford, would also leave the company with “no alternative readily available once the decision is taken to drive the two steep ramps at Media Luna, since there would be no access to the ore via any other method without considerable investment and schedule disruption associated with driving conventional ramps”.

Apart from the technical risks, there are additional business risks that require time and consideration such as permitting and regulatory compliance given there is no precedent for the technology, Torex added.

The company believes the use of a conventional mining process is a more prudent approach to mitigate operational and financial risk to the business given Media Luna will be its primary source of feed at the Morelos property after mid-2024.

It did leave the door open for use of the Muckahi technology in the future, saying aspects of the monorail-based technology were currently being deployed for development of the Guajes Tunnel.

“Management will consider including a preliminary economic assessment-level study to utilise monorail-based equipment to develop the smaller EPO deposit near Media Luna as part of the overall technical report to be released in Q1 (March quarter) 2022,” it said.

Potential deployment of the technology at EPO, which hosts an inferred resource of 1.01 Moz of gold-equivalent, would allow for additional testing of the integrated system within a live production environment.

The Muckahi system was engineered by MEDATech in close collaboration with Stanford.

The monorail mining system is billed as providing a surgical way to mine narrower orebodies more efficiently. It involves three logistical paradigm shifts: steep ramps (a quarter of the length of conventional ramps), roof-mounted monorails and equipment to run on them and minimal underground infrastructure.

The technology is expected to significantly reduce capital expenditure, operating expenditure and cut time-to-revenue by as much as 80%, according to Stanford. It will also produce 95% fewer underground greenhouse gas emissions.

The Muckahi technology was included in the Media Luna preliminary economic assessment, but the company always noted that it was experimental in nature and had not yet been tested in an operating mine.

When publishing its 2020 financial results in February 2021, Torex noted: “Since the date of the technical report, the majority of the components of the Muckahi system have been tested by Torex and their functionality demonstrated. Although, the components have not yet been tested together as a system to demonstrate the rates per day in which tunnels can be excavated and material removed from long hole open stopes.

“Testing of the integrated system will continue and is expected to be completed in the second (June) quarter of 2021. Drill and blast fundamentals, standards and best practices for underground hard-rock mining are applied in the Muckahi system as described in of the technical report, where applicable. The proposed application of a monorail system for underground transportation for mine development and production mining is unique to underground mining. There are existing underground mines that use a monorail system for transportation of materials and equipment, however not in the capacity of Muckahi which is described in detail in the technical report. The mine design, equipment performance and cost estimations involving Muckahi in the technical report are conceptual in nature, and do not demonstrate technical or economic viability.”

At the same time as updating the market on its plans to use conventional development and mining methods at Media Luna, Torex said its Board had approved a pushback of the El Limón open pit, which is anticipated to add around 150,000 oz of gold production and extend open-pit mining to mid-2024. This would align with first production from Media Luna in 2024.

Para and Clark Construction partner up at Gold Road in Arizona

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Para Resources has entered into a final services agreement with Clark Construction Group, whereby Clark will provide contract mining services at the company-owned Gold Road mine in Arizona, US.

The contract transitions from the original “time and materials” pact announced in November with an open book target pricing contract. This new contract establishes the basis on which mining and extraction will occur at the Gold Road mine, Para said.

Clark has already been present on the project with equipment and crews and Atkinson is currently driving an exhaust drift in preparations of installing an exhaust fan to upgrade the ventilation system, upgrading the main decline to accommodate larger trucks rehabilitating the secondary escape routes and remediating the previously announced ground control issues.

In addition, maintenance, testing, repair, and general clean-up of the mill has been completed, Para said. The mill is now in functional condition with the exception of additional ball mill liners and first fills which are expected later in January.

Mineralised rock production is on schedule and expected to commence in late January with the re-commissioning of the plant. First gold pour is anticipated in February 2019.

Geoff Hampson, Para’s CEO, said: “We are very pleased to have now transitioned our relationship with Clark Construction Group to a Target Price contract which will ensure continuity of costs and production. We have implemented several key bonus programmes to ensure that Para’s and Clarks’ interests and incentives are in sync.

“Clark is one of the most experienced and respected building and civil construction firms in the US and they bring extensive experience and knowledge to our operations and capacity. The partnership between Clark and our highly skilled and tested Para team will ensure a smooth and successful production ramp up.”

In August 2017, Para, through its 88%-owned subsidiary Gold Road Mining, acquired the 500 t/d carbon-in-leach/carbon-in-pulp Gold Road mine and mill, including patented claims and a mill and processing facility, located in the historic Oatman Mining District of north-western Arizona.

In other news, Para said the mill at the company’s El Limon mine in Colombia continues to perform as anticipated, with the ramp up of feed continuing.

“Para is now assisting several of the larger formalised artisanal miners with equipment, technology and management. The new winch and the new tailing disposal site at El Limon are expected to be completed by the end of Q1 (March quarter) 2019,” it said.

“The current ramp up at El Limon is anticipated to move the operation into positive cash flow in the coming months and commercial production is expected to be declared by the end of the March quarter.”