Tag Archives: gold

Kaiser Reef brings in Gekko Wolff Batch Centrifugal Concentrator to improve gravity recoveries at gold mine

Environmental, Mine operation news, Mineral processing, Mining project news, , , , ,

Kaiser Reef Limited has commenced installation of a Wolff Batch Centrifugal Concentrator (BCC) gravity circuit and ancillary equipment at the Maldon gold processing plant as part of an upgrade program at its operations in Victoria, Australia.

The Maldon plant is just 3 km from the company’s Union Hill Mine, which produced 2.1 Moz of gold, and has a processing capacity of 250,000 t/y, currently operating at between 20% and 30% of its full capacity.

The Wolff BCC comes with features such as a segmented bowl and a rotary union tailored for dirty water applications. These advancements minimise maintenance needs (eliminating the need for cranes during bowl changes) and reduce the demand for clean water, thereby reducing both capital and operational costs, according to manufacturer Gekko Systems.

The gold gravity circuit at Maldon will collect the unusually high concentration of coarse gold observed from the company’s A1 goldmine after the SAG mill. This will enhance recovery by collecting coarse gold separately and earlier from the leach feed than through the current mill flowsheet, the company says.

Kaiser has previously seen gold “held up” withing the processing plant because of gold’s very soft and malleable nature and high density. This has required regular mill liner removal to collect the entrained gold. The company expects this initiative to help enhance and smooth cash flow and also improve overall gold recovery. This equipment is currently being installed and should be operational by early August.

In addition, Kaiser has purchased a previously used Terex cone crushing unit to reduce the size of the crushed ore product from the jaw crusher prior to feeding ore into the SAG mill. The cone crusher further reduces the average rock size delivered by the Terex crusher currently in operation from 75 mm down to below 25 mm.

“Reducing the rock size reduces the time required to grind ore in the ball mill and thereby reduces the company’s energy and power costs,” Kaiser Reef says. “This will increase the effective treatment capacity rate, leading to greater operational efficiency and reduced processing costs. The calculated payback period is approximately eight months.”

These upgrades to the fully permitted Maldon processing plant advance the company’s strategy to significantly ramp up production and cashflow from its Victorian gold projects, particularly the high-grade A1 Gold Mine, Kaiser Reef says.

SSR Mining selects ISNetworld to manage contractors at Seabee gold mine

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ISN, a leader in contractor and supplier information management services, has announced that SSR Mining Inc has selected ISNetworld as its primary contractor information management system for its Seabee 0perations, a high-grade underground gold mine in Saskatchewan, Canada.

As part of the agreement, ISN will assist SSR Mining’s Seabee operations with enhancing its contractor management process through all aspects of review and verification, contractor communication and compliance, scorecard creation and ongoing monitoring, it says.

“Through our partnership with ISN, we are implementing industry best practices and keeping worker health and safety at the forefront of our production operations at Seabee by leveraging a trusted process followed by many of our peers,” Ken Worobec, Superintendent, Safety at SSR Mining, said. “Working closely with ISN will enable us to uphold the highest standards for contractor onboarding, training and compliance, which will ultimately create a safer environment for all workers at the Seabee operations.”

Located in northern Saskatchewan, the Seabee facility produces gold doré bars which are then shipped to a third-party refinery. SSR Mining chose to partner with ISN based on its strong presence throughout the canadian industry and experience providing best-in-class capabilities and insights through its contractor management platform, including the ability to manage the qualifications and mobilisation of workers, ISN says.

Kim Ritchie, Vice President, Canada at ISN, said: “The addition of SSR Mining to our established base of customers in Canada and across the globe is a testament to our track record of helping organsations achieve compliance and ensure that workers return home safely each day. We look forward to partnering with SSR Mining to meet its contractor management goals, which will contribute to creating a safer, more sustainable environment for all workers.”

Agnico eyes 1 Moz/y gold operation status at Detour Lake with future underground mine

Automation, Mineral project development, Mining services, Precious metals, Sustainable mining, , , , ,

Agnico Eagle is evaluating the potential for Detour Lake in Ontario, Canada, to become a million ounce per year gold operation after the completion of a recent slew of studies.

The 2024 Life of Mine plan builds on the company’s previously filed technical report on Detour Lake as well as the mine plan update released by the company in July 2022. It updates the open-pit mine production profile and incorporates updated costing. The company has also completed a preliminary economic assessment (PEA) which contemplates the concurrent operation of the open pit and a proposed underground mining project, combined with mill throughput optimisation to 29 Mt.y. The 2024 PEA demonstrates that the Underground Project and the mill optimisation have the potential to increase the Detour Lake mine’s overall production to an average of approximately 1 Moz/y of gold over a 14-year period, starting in 2030. The current open-pit operation produced 677,446 oz of gold in 2023.

The 2024 PEA assumes an underground mining rate of approximately 11,200 t/d starting in 2030, combined with a mill expansion to 79,450 t/d starting in 2028. Annual production is expected to increase by approximately 43%, or 300,000 oz/y of gold, from 2030 to 2043. The PEA extends Detour Lake’s mine life by two years to 2054, with the company saying it believes that there is a good upside potential for additional exploration to add ounces to the mine plan in future years, which could result in an increase in production in the period between 2044 and 2054 or extend the life of the mine.

The preliminary mining concept for the Underground Project is based on transverse longhole open stoping, as this mining method is best suited for the sub-vertical mineral deposit. Sublevels will be 40 m apart, with the stope size averaging approximately 30,000 t. Primary stopes will be backfilled with cemented paste fill, while secondary stopes will be backfilled with either cemented paste fill or waste rock fill according to the sequence and waste material available. Approximately 130 stopes will be mined annually to sustain a mining rate of approximately 11,200 t/d (equivalent to an annualized production rate of 4 Mt/y).

The Underground Project is expected to use a combination of conventional and automated equipment, similar to the company’s Odyssey mine at the Canadian Malartic complex in Quebec. Ore and waste handling will be conducted by LHDs and trucks with a capacity of 21 t and 60 t, respectively. The ore handling system to surface will consist of ore passes, an underground jaw crusher located at level 760 and a conveyor system with a capacity of 15,000 t/d. The conveyor will be installed in a dedicated conveyor ramp, with the portal located near the primary crusher on surface, east of the open pit. A service ramp, with the portal located near the west end of the open pit, will be the main underground access for the workforce, equipment and materials.

Production could begin as early as 2030 and ramp up to the designed rate 11,200 t/d by 2033, which is expected to be sustained throughout the mine life until 2044.

The Detour Lake processing facility consists of two independent milling circuits, including gravity separation, concentrate leach, agitated tank leaching, carbon-in-pulp, solvent extraction and electrowinning. Over the last four years, the processing plant has undergone significant modifications to de-bottleneck existing circuits and improve throughput while maintaining recovery and reliability. The 2024 PEA contemplates that underground ore will be blended with the open-pit ore and processed through the existing plant.

Through investments in the crushing and grinding circuits and continuous improvement efforts, the mill throughput rate has increased from approximately 62,900 t/d in 2020 to approximately 69,700 t/d in 2023 and is expected to reach 76,700 t/d by the end of 2024. The company believes that further process optimisation can be achieved with minimal investment to reach a mill throughput rate of 79,450 t/d by 2028. The main initiatives to realise this potential include:

  • The implementation of advanced process control systems to optimise circuit charge, mass flow balance and recovery;
  • Further improvements to the crushing and grinding circuits, including the implementation of variable frequency drives for the secondary crushers and pebble crushers and redesigned SAG discharge screens; and
  • Further optimisation to the maintenance practices and improved mill runtime.

An investment of approximately $12 million is included in the 2024 PEA to execute these initiatives.

Ammar Al-Joundi, Agnico Eagle’s President and Chief Executive Officer, said: “At Detour Lake, the company continues to build on the unique potential of this world-class asset. With the development of an underground mine to complement the existing open-pit mine, we see the opportunity to transform the asset into one of the top five gold mines in the world by output. We believe the Underground Project has relatively low execution risk, and has the potential to generate a strong risk-adjusted return on capital while maintaining exploration and production upside for decades in one of the best mining jurisdictions in the world.

“We have adopted a phased and disciplined approach to develop this potential, with the approval of a $100 million investment over the next three years to further study and de-risk the Underground Project, including the development of an exploration ramp (2 km) and the collection of a bulk sample. Concurrently, we are planning a conversion and expansion drill program to realise the upside exploration potential along the western plunge of the mineralisation. The long mineral reserve life and significant production base at both Detour Lake and Canadian Malartic provide a solid foundation for Agnico Eagle’s production profile and strongly positions the company for decades to come.”

The average total cash costs for the Underground Project, combined with the mill optimisation to 29 Mt/y, are expected to be $690/oz. Development capital expenditures for the Underground Project and mill optimisation to 29 Mt/y are forecast to be approximately $731 million. Sustaining capital expenditures are forecast to be approximately $631 million over the life of the Underground Project, or between $40 million-$45 million per year from 2030 to 2043.

Agnico says the Underground Project and mill throughput optimisation to 29 Mt/y are expected to generate an after-tax internal rate of return of approximately 18% using a gold price assumption of $1,900/oz and a C$/US$ foreign exchange rate of 1.34. At current gold prices of approximately $2,300 per ounce and a C$/US$ foreign exchange rate of 1.34, the Underground Project and mill throughput optimisation to 29 Mtpa are expected to generate an after-tax IRR of approximately 25%.

Inflection Resources to tap Fleet Space’s ExoSphere solution for undercover exploration

Base metals, Mineral exploration, Mining services, Precious metals, , , , , , ,

Fleet Space Technologies and Inflection Resources are pioneering the use of space technology and artificial intelligence to accelerate the discovery of large-scale copper-gold deposits in Australia’s Macquarie Arc.

Leveraging the real-time Ambient Noise Tomography (ANT) survey capabilities of Fleet Space’s end-to-end mineral exploration solution, ExoSphere, Inflection Resources has identified several new priority targets under a thick sequence of sedimentary cover masking the underlying, older prospective geology at its Duck Creek project in New South Wales.

As part of the expanded charter, Inflection Resources will deploy ExoSphere on a significant part of its tenement portfolio extending over approximately 1,818 sq.km in the Macquarie Arc of the Lachlan Fold Belt – underscoring both companies’ commitment to responsible mineral discovery, enabled by data-driven exploration with near-zero environmental impact, Fleet Space says.

“Without a major acceleration in copper discoveries, humanity’s transition to renewable energy and building the infrastructure necessary for the global AI industry are unachievable,” Fleet Space CEO & co-Founder, Flavia Tata Nardini, said. “We are proud to conduct the world’s largest mineral exploration survey with Ambient Noise Tomography in support of Inflection Resources’ data-driven exploration of the Macquarie Arc with our end-to-end solution, ExoSphere, and deliver sustainable subsurface insights at scale with our next-generation AI capabilities.”

Inflection Resources is a copper exploration company with projects across the Macquarie Arc. Inflection attempted a variety of geophysical survey techniques to prospect for copper in the basement rocks over the Duck Creek project area, however, the depth of post-mineral sedimentary cover and conductivity of those sediments resulted in these methods failing to produce reliable results. This led Inflection Resources to deploy Fleet Space’s end-to-end mineral exploration solution, ExoSphere, over the area – taking advantage of its high-resolution 3D imaging to depths of 2.5 km, which is indifferent to the conductive elements in the cover sediment, including groundwater.

The subsurface insights delivered by ExoSphere’s geophysical surveys at the Duck Creek project enabled Inflection Resources to identify multiple new high priority drill targets to be explored in the coming months, Fleet Space says. The 3D models generated by ExoSphere detected low-velocity zones in areas where previous drilling showed alteration typical of that seen in proximity to other alkalic copper-gold porphyry systems in the Macquarie Arc and high-velocity features consistent with potential intrusions. After Inflection Resources’ announcement of new targets, AngloGold Ashanti shifted the designation of Duck Creek from Phase 1 to Phase II under its Exploration Agreement with Inflection Resources – which includes drilling targets identified with ExoSphere’s geophysical surveys.

Building on the identification of these previously unknown zones of interest at Duck Creek, Inflection Resources will deploy ExoSphere to survey 1,818 sq.km of its exploration licences and leverage Fleet Space’s next-generation AI capabilities to create a copper prospectivity map of its projects across the Macquarie Arc.

Inflection Resources’ President & CEO, Alistair Waddell, said: “The end-to-end capabilities of ExoSphere and the 3D subsurface insights it unlocked has helped Inflection rapidly identify several new high-priority targets at our Duck Creek project and demonstrated that the ExoSphere system can accelerate the data-driven exploration of our projects. We’re excited to work with Fleet Space again and deploy ExoSphere on a large scale across Inflection’s projects in the Macquarie Arc and leverage Fleet Space’s AI-powered prospectivity insights to aid our exploration strategy across Australia’s premier porphyry copper-gold province.”

The copper prospectivity map created with ExoSphere’s AI engine for Inflection Resources’ exploration licences in the Macquarie Arc is an example of the AI-powered insights that are possible with large-scale, multimodal, 3D subsurface data, Fleet Space says. Fleet Space’s real-time data acquisition capabilities are enabled by its proprietary satellite constellation, smart seismic sensors (Geodes) and 3D data processing to enhance onsite decision making at each phase of a drilling campaign. From target validation, prospecting or reducing uncertainty across a project, ExoSphere’s end-to-end capabilities unlock 3D and AI-powered insights that enhance data-driven exploration with unprecedented speed, scale and accuracy.

ExoSphere’s 3D Ambient Noise Tomography (ANT) survey data has been shown to be up to three times more important than other geophysical methods for the construction of a multimodal foundation model. This is due to ANT’s inherent scalability which allows for the generation of high-quality 3D data sets at any scale with equal effectiveness. By integrating the ANT survey results with data from other geophysical techniques, such as magnetic, gravity, EM, IP and more, ExoSphere’s AI engine can be fine-tuned to deliver a wide range of subsurface insights to accelerate mineral exploration worldwide.

Endeavour Mining kicks off wet commissioning at BIOX Expansion project in Senegal

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Endeavour Mining says wet commissioning activities are now underway at the Sabodala-Massawa Expansion project (BIOX® Expansion) in Senegal.

The BIOX Expansion project is on budget, with construction now 91% complete, and the first gold pour is expected on schedule, in early May.

The BIOX process, which has been in commercial operation for over 30 years, was developed for the pre-treatment of refractory concentrates ahead of conventional cyanide leaching for gold recovery.

Ian Cockerill, CEO, said: “We are extremely pleased with our progress as we start wet commissioning of the BIOX Expansion project. Importantly, we have achieved this milestone with no lost-time injuries having worked more than three million man hours, which is a testament to the strong safety culture that is a hallmark of our in-house construction teams.

At completion, Sabodala-Massawa will become a true top tier asset with 2024 production of up to 400,000 oz at an industry leading AISC of less than $850/oz, with costs expected to improve further in the coming years, embedding the mine firmly in the lowest cost quartile.

“This year, Endeavour is well positioned to transition from a phase of investment in organic growth, to a more cash flow generative phase in the second half of the year. This inflection point will allow us to focus our efforts on increasing our shareholder returns while de-levering our balance sheet, as we continue to execute on our strategy.”

Wet commissioning of the BIOX Expansion was delivered in less than 23 months after construction was launched in April 2022. During construction activities, up to 1,300 employees and contractors were on site, 82% of whom were Senegalese nationals, successfully completing over three million man-hours with zero lost time injuries.

The addition of the 1.2 Mt/y BIOX Expansion, with an initial capital cost of $290 million, is expected to add 194,000 oz/y of incremental production over the first five years, lifting Sabodala-Massawa to top-tier status with expected production of 360-400,000 oz at an AISC of between $750-850/oz in FY 2024, increasing to above 400,000 oz from 2025.

Gekko brings real-time grade measurement to the gold sector

Environmental, Mineral processing, Mining services, Precious metals, , , , , ,

Gekko has launched “Mark 3” of its online gold analyser, OLGA, the flagship product for the company’s real-time data instrumentation division, which operates alongside other key products such as the Carbon Scout to assist in measuring the recovery of gold real-time in gold processing plants, Nigel Grigg, General Manager – Global Sales & Solutions, Gekko Systems, says.

“We are really excited about these new design elements which will improve value and returns for our clients as well as improve ease of operation,” he said. “Now gold grades can be measured in real time compared with the traditional assay-based process which can often result in two-day delays. Operating management will be able to respond immediately if there is a gold excursion or if the data provides other insights into plant trends. This is a breakthrough technology which is now even more affordable and will deliver higher yields in processing plants.”

The OLGA has at its heart the world-first proprietary “Golden Eye” lens technology developed and designed in Australia’s government-funded CSIRO research laboratories.

This component measures gold grade in slurries and solutions combined including low grade slurry streams down to as low 0.1 parts per million. Other elements are also measured including copper, silver, platinum and nickel. The multiplexing feature will allow for up to four streams within a processing plant to be assessed for gold grades, according to Gekko.

The OLGA is the only real-time online measurement system purpose built for gold, Gekko claims. The unit is typically installed to measure the cyclone overflow stream in CIL leach circuits, around the electrowinning circuit and on flotation feed, tails and concentrate. With the multiplexing function, the OLGA can switch measurement of grade from stream to stream.

“The technology represents a significant step forward in the potential to automate gold leaching circuits,” Grigg says.

Another key feature of OLGA is the dedicated sample feed line, facilitating continuous sampling of large volumes with no potential for cross-contamination. The system also offers additional sample points for ad-hoc samples, providing flexibility and adaptability to changing operational needs. Furthermore, the ad-hoc samples can be analysed as batch samples, minimising sampling errors and substituting the need for other sampling systems.

The OLGA Mk3 has undergone rigorous testing and refinement to ensure its robustness, reliability and accuracy in various operational conditions, while offering low maintenance requirements, Gekko says.

Gekko says OLGA’s development was supported by collaboration partners who assisted and provided critical feedback to improve an earlier OLGA technology design. That collaboration included the management and technical teams at Gold Fields, CSIRO, Orway IQ, Curtin University, METS Ignited and Gekko Systems.

Core to the assessment was an OLGA installation at Gruyere Gold Mine (a JV between Gold Fields and Gold Road Resources) where the OLGA achieved excellent results indicating a strong correlation between the automated OLGA and manual assay data and giving the Gekko team the confidence to further develop the OLGA, Gekko concluded.

WeirMinerals-Cavex

Weir Minerals Africa showcases engineering nous with Cavex cyclone cluster build

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Weir Minerals Africa has manufactured a 20-way cluster of Cavex® 500 CVX hydrocyclones for a gold project in West Africa.

This hydrocyclone delivers exceptional operational efficiencies, reduced wear and consistent metallurgical performance, the OEM said. With a design built for longevity, this unit is anticipated to exceed a 20-year lifespan because of its easily replaceable wear parts that ensure peak performance throughout its service life, it added.

The hydrocyclone cluster was specifically tailored to the classification and processing requirements the project, with Lerato Ramanala, Product Manager Hydrocyclones at Weir Minerals Africa, saying it will be used in a milling application as part of a flowsheet with an HPGR and ball mill – the Cavex hydrocyclones will classify the mill discharge. Operating at a relatively low pressure of 73 kPa, the hydrocyclones are engineered to minimise equipment wear under demanding conditions, the company says.

Ramanala said: “Our design process considered factors such as port sizes and pipe schedules, ensuring obstruction-free operation, even under challenging conditions in which the hydrocyclones have to contend with a wide range of particle sizes. The feed and discharge pipes were engineered to accommodate the required flow rate and pressure, maintaining a launder geometry that ensures optimal slurry levels during regular operation, without any spillage during normal and design operation.”

The hydrocyclone cluster operates efficiently: the overflow goes to the trash screen, the underflow launder diverts the discharge, returning some to the ball mill for further grinding, while the other portion is fed to a gravity circuit.

Ramanala says the hydrocyclone cluster is custom-engineered featuring Cavex hydrocyclones, Linatex rubber linings and Isogate WR valves. The Cavex hydrocyclone features a 360⁰ laminar spiral inlet that significantly enhances separation performance, she notes.

“To prolong wear life and reduce the need for frequent replacements, we’ve used R55 rubber, a patented Weir Minerals material, in the hydrocyclones’ rubber inserts,” she adds.

To address abrasion resistance, Linatex premium rubber, known to consistently outperform other rubber materials in abrasive wet processing applications, Weir Minerals says, was selected. The integration of Linatex rubber minimises maintenance requirements and guarantees optimal equipment performance.

The Isogate WR valve is a lightweight valve designed for a hydrocyclone cluster of this size, featuring advanced rubber sleeve technology for improved wear life and full bore design for unrestricted flow, the company says.

“Notably, this is the first greenfield cluster to incorporate Synertrex IIoT technology for performance monitoring, specifically to detect any roping or splashing events,” Ramanala says. This proactive performance monitoring platform enhances the overall effectiveness of the Cavex hydrocyclones by providing accurate data on cyclone performance, supporting the operator in maintaining optimal operating conditions and enabling proactive intervention for unforeseen incidents, the company explained.

Ramanala added: “Synertrex is much more than a condition monitoring system for individual pieces of equipment. As the technology continues to develop and Weir Minerals works to leverage the equipment and process data it alone has as the OEM, its customers are increasingly seeing it as the preferred partner for intelligent solutions and digitally-enabled services.”

Even with its substantial size, a cyclone cluster of this magnitude maintains a more compact overall footprint, facilitating space optimisation within the process plant while still achieving the necessary cut point, according to the OEM.

Weir Minerals Africa says its experienced local team carefully analysed operational requirements, flow rates and pressure differentials when designing this Cavex hydrocyclone cluster to maximise efficiency and meet required throughput rates. Structural integrity was a primary focus due to the cluster’s large size, and extensive use was made of computer-aided design to ensure a robust design capable of withstanding demanding conditions. The structural design includes walkways, support beams and bracing mechanisms.

The large cluster was manufactured at Weir Minerals Africa’s facility, undergoing trial assembly and quality checks before being disassembled and packaged for shipment to the customer. Installation on site will be part of the greenfields process plant construction project, with Weir Minerals Africa specialists readily available for installation and commissioning support.

Centamin-Sukari

Capital in line for another five years of drilling at Centamin’s Sukari

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Capital has been awarded a letter of intent related to a five-year extension to its open-pit drilling services contract at Centamin’s Sukari gold mine in Egypt, with the contractor potentially extending its work there through to the end of 2029.

Subject to conclusion of the definitive drilling services agreement, which will include both blasthole and grade control drilling, the contract will mean Capital has been on site for 25 years when concluding its services. The contract would begin on January 1, 2025.

Back in 2020, Capital entered a conditional open-pit waste mining services contract with Sukari Gold Mines and expanded and extended its existing drilling contract with Sukari, effective January 1, 2021. Collectively, these contracts were anticipated to deliver incremental revenues of $235-260 million over a four-year period, representing the largest award of new business in the company’s history.

In the company’s Q4 2023 trading update released today, Capital noted that the Sukari gold mine waste mining contract saw consistent operations through the three-month period.

Torex Gold Resources heralds breakthrough at Media Luna project

Mineral project development, Precious metals, , , , , ,

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.”

Caterpillar, Borusan make historic underground equipment delivery to Anglo Asian Mining in Azerbaijan

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Anglo Asian Mining says the Caterpillar mining fleet for its new Gilar mine has now been delivered to the Gedabek mine site, marking the first time Caterpillar underground equipment will be deployed in Azerbaijan.

The equipment will be substantially vendor-financed, and this is the first time Caterpillar will provide this to a customer in Azerbaijan or the wider Caucasus region.

The underground mining fleet comprises three 15-t-payload R1700 underground loaders and two 980UMA wheel loaders with 5.6 cu.m buckets.

Borusan, the authorised regional dealer of Caterpillar equipment, will maintain a stock of spare parts and consumables within Azerbaijan and major parts will be held at Borusan regional centres in Türkiye and Kazakhstan, Anglo Asian says. This will enable efficient aftersales servicing of the machines over their lifetime, which was a major factor in the machine selection process.

The company says: “The underground mining fleet are ‘state-of-the-art’, next-generation machines constructed with safety at their core. They are more powerful and contain many new features compared to their predecessors. The operator environment has been improved and is more comfortable. Many new safety features have been added, including better access points, multiple fire suppression systems and improved visibility and lighting.”

The underground equipment will be used in the company’s new Gilar mine, which is currently under construction and development. On December 11, a maiden JORC (2012) mineral resource estimate was published for the Gilar deposit. This confirmed 6.1 Mt of mineralisation with an average copper grade of 0.88% and 1.30 g/t Au. The in-situ mineral resource is 54,000 t of copper, 255,000 oz of gold and 46,000 t of zinc, according to the company.

The Gilar mine is scheduled to begin production around the middle of 2024 and will be an important source of production, bridging the gap between declining grades at Gedabek’s existing mines and production starting from its much bigger Xarxar and Garadag contract areas.

The total cost of the equipment is $4.6 million. The $3.7 million balance due for the purchase of the equipment will be paid by the end of December 2023 from the group’s existing liquidity resources. It is anticipated that $3.7 million will be refinanced by a vendor financing loan from Caterpillar. Negotiations are continuing with Caterpillar Finance to finalise execution of the loan which is expected to close in the March quarter of 2024.

A ceremony was held on the afternoon of December 11, 2023, to mark the arrival of the equipment at Gedabek. This was attended by the group’s leadership team, Azeri and Turkish representatives from Caterpillar and Borusan, along with representatives from both the central and regional Governments of Azerbaijan. A demonstration was also given of operating one of the machines by remote control.