Tag Archives: gold

Centamin to reestablish Sukari as tier one asset with new life of mine plan

A new life of mine plan for the Sukari gold mine in Egypt will deliver long-term increased gold production, lower operational costs, reduced operational risk and significantly reduced carbon emissions, according to owner Centamin.

The company announced the new plan today, flagging average gold production from Sukari of 506,000 oz/y for the next nine years (2024-2032); and 475,000 oz/y for life of mine (2024–2034), reflecting a 5% increase in life of mine gold production compared to 2022 (441,000 oz).

The main contributors to this increase was an improved open-pit schedule, which included a 40% improvement to the life of mine strip ratio (6.5 times) compared to full year 2022 (10.8 times); an increased underground schedule, including a 75% increase in average life of mine ore mining rates (1.4 Mt/y) compared to FY22 (800,000 t); and the integration of a gold gravity circuit to the processing plant, driving a 2% increase in life of mine gold recoveries (89.8%) compared to FY22 (88.2%).

When it comes to the cost and emissions outlook, Centamin flagged connection to the Egyptian national grid, which would deliver an estimated $41 million of annual cost savings based on current diesel prices. The company also flagged the potential for increasing the capacity of its existing solar power plant, going from the existing 30 MW to 45-50 MW.

The optimisation of the open pit involves several parts – the aforementioned strip ratio changes, deferred processing of stockpiles and an optimised fleet strategy. The latter will see Centamin purchase an additional five trucks in 2024 to support the life of mine plan, at an approximate cost of $13 million taking the Sukari fleet capacity from some 90 Mt/y to 110 Mt/y.

The gold gravity circuit, meanwhile, will be added to the processing facility to improve the recovery of the coarse gold found in the higher grade ore from both the underground and open pit. Construction of this is expected to be completed in the first half of 2025 for an estimated capital cost of up to $20 million.

Centamin also mentioned further upside opportunities to this life of mine plan, including an expansion of dump leach operations, further open pit and plant optimisation, and resource and reserve growth.

Martin Horgan, CEO, said: “Today’s new life of mine plan firmly reestablishes Sukari as a global tier one gold asset, with long-term production above 500,000 oz per annum at all-in sustaining costs below $1,000/oz, underscoring our dedication to maximising free cash flow generation. This plan is not only a substantial improvement on what was previously published but, importantly, it incorporates significantly lower operational risk and delivers improved carbon abatement.

“This revised plan underpins our strategy to maximise the value of Sukari as the foundation for growth and diversification balanced with stakeholder returns.”

GR Engineering wins EPC work on Evolution’s Mungari Future Growth project

Evolution Mining has awarded a contract to GR Engineering Services Limited to complete the plant expansion works at its Mungari gold mine in Western Australia.

These works, part of an engineering, procurement and construction contract, are expected to total A$155 million ($100 million) and are within the project budget and schedule as part of the company’s previously announced commitment to invest A$250 million to increase the site’s processing capacity from 2 Mt/y to 4.2 Mt/y, Evolution says. It also includes required changes to process plant buildings and associated infrastructure, according to GR Engineering.

Initial engineering design and procurement works have commenced with site works commencing in mid-January 2024. The project has an estimated 30-month construction period including long-lead items and approvals, with commissioning expected by the end of the March 2026 quarter.

Targeting gold production of 200,000 oz/y for the life of the mine, this project is expected to reduce Mungari’s All-In Sustaining Cost by 18% to $1,750/oz and extend the mine life to 2038, Evolution says.

Evolution Mining’s Managing Director and Chief Executive Officer, Lawrie Conway, said: “The award of this contract is a major milestone for the Mungari Future Growth project. It secures the critical processing plant infrastructure within our budgeted costs, locking in over 60% of the project costs, and secures a delivery time within the approved project schedule.

“The feasibility study established a sound investment case with an internal rate of return for the project of between 19% and 28%, at a conservative A$2,400/oz and spot price of A$2,965/oz, respectively.”

Tony Patrizi, Managing Director of GR Engineering, said: “We are extremely pleased that Evolution Mining, one the world’s leading tier one gold producers, has selected GR Engineering to deliver the Future Growth project at Mungari. GR Engineering has a long track record of successful project delivery in the mineral processing sector. We see this contract award as a strong endorsement of GR Engineering’s proven process design record and EPC delivery capability.”

Minera Carola bolsters mining fleet with six Sandvik Toro TH663i trucks

Minera Carola in Chile has agreed to purchase six Toro™ TH663i dump trucks to add to its fleet for its mining operations in the Atacama Region.

This will be part of a total of nine pieces of Sandvik equipment the company is purchasing for its production process.

“For us, the reliability and support that Sandvik gives us is key to our future operations,” Minera Carola said.

Minera Carola is dedicated to the extraction of minerals and production of copper, gold and silver concentrates, with the mineral extracted from the Carola mine and subsequently processed at the Cerrillos plant, where the concentrate is produced, which is then processed at ENAMI’s Hernán Videla Lira smelter.

The TH663i truck’s low weight, 63-tonne payload capacity and high ramp speeds enhance ore transportation efficiency, according to Sandvik, with the reduced weight improving productivity, lowering fuel consumption, minimising tyre wear and reducing overall operating costs.

The truck features a Stage II/Tier 2 engine, offering long engine life time, low fuel consumption and low cost of ownership, the OEM says. When ultra-low sulphur fuel is available, Sandvik offers a Stage V engine as option. Both engines can use EN 15940-compliant renewable paraffinic diesel fuels, reducing exhaust emissions.

It also incorporates cutting-edge technology that enables real-time monitoring, remote operation and data-driven insights. This translates to better decision-making and improved operational efficiency, Sandvik says. With reduced emissions, efficient energy consumption and environmentally conscious design, it also aligns with the industry’s evolving sustainability goals.

Ok Tedi Mining board greenlights mine life extension to 2050

The Board of Ok Tedi Mining Limited (OTML) has approved in principle a further mine life extension from 2033 to 2050, marking a significant milestone for OTML, its shareholders and for Papua New Guinea (PNG) in general.

It is also a sign of the confidence the board has in the company’s ability to deliver over the next two decades.

The approval is based on the latest Strategic Business Plan submitted by the Executive Leadership Team and discussed during the OTML Board meeting held in Tabubil on September 13, 2023.

“This extension brings to life OTML’s vision to operate with excellence, maximising the value of the mineral resource in an environmentally friendly way, to deliver sustainable economic and social benefits to the mine communities and the people of PNG,” The company said. “Several factors have enabled the extension including a strengthened long-term copper price outlook, additional mine waste management solutions such as engineered waste rock dumps and a tailings storage facility to minimise impact on the environment, renewal of aged processing plant assets and implementation of other strategic projects that are currently in various stages of completion.”

The Ok Tedi mine is an open-pit copper, gold and silver mine located at Mt. Fubilan in the Western Province of PNG. Up to 240,000 t/d of overburden is mined from a pit covering about 2.6 sq.km. In addition, about 60,000 t/d of ore is mined and delivered to the mill for processing.

Managing Director & Chief Executive Officer, Kedi Ilimbit, said “The approval by the board on the eve of PNG’s 48th Independence anniversary is a welcomed gift to the communities in which we operate and who provide us the social licence to continue, as well as to the people of PNG. The revised mine life will see the company generate in excess of PGK30 billion ($8.25 billion) in dividends, royalties, compensation payments and taxes for the benefit of OTML’s shareholders, communities and Papua New Guinea as a whole over the next 27 years.”

MACA to replace Gruyere open-pit surface drilling fleet with Sandvik rigs

Leading Australian mining, civil and minerals processing contracting group, MACA, has selected Sandvik Mining and Rock Solutions to supply nine new surface drill rigs as a complete replacement for an ageing mixed fleet at the Gruyere open-pit gold mine in the Western Australian Goldfields, where it was recently awarded a five-year contract extension.

The order, which was booked in the June quarter of 2023, includes six Sandvik DR410i rotary blasthole drills, two Leopard™ DI650i down-the-hole (DTH) drill rigs and a Pantera™ DP1500i top hammer drill rig. Deliveries began in July and will continue through April 2024.

MACA, part of Thiess, has specialised in mining, crushing, civil construction, infrastructure and mineral processing for more than 20 years. It employs more than 3,000 people across operations in Australia and internationally.

MACA has provided various services at Gruyere, a joint venture between Gold Fields and Gold Road Resources, since the contractor initiated bulk earthworks in 2017. Gruyere is expected to produce an annual average of 350,000 oz of gold through a current mine life of at least 2032.

Sandvik DR410i rotary blasthole drill rigs (pictured) are compact, powerful and technologically advanced, the OEM says. They are designed for rotary and DTH holes up to 254 mm, with a mast offering a first pass capability of 14 m and a maximum depth of 32.3 m.

The Leopard DI650i is a self-contained, crawler-mounted, intelligent DTH drill rig designed for demanding high-capacity production drilling applications, Sandvik says, while the Pantera DP1500i is a hydraulic, self-propelled top hammer drill rig, ideal for production or pre-split drilling in large quarries or open-pit mines and construction sites.

Australia’s first Liebherr R 9300 mining excavator starts work at Karlawinda gold mine

Liebherr-Australia has recently delivered an R 9300 mining excavator to long-term customer MACA at the Karlawinda gold project, in Western Australia, with the machine becoming the first such excavator commissioned in the country.

After a successful launch – with five of these excavators already sold in Indonesia – the commissioning of the first R 9300 in Australia further demonstrates the strength of the machine’s reputation, the OEM says.

The mining excavator was commissioned in late August at Karlawinda, in the Pilbara region of Western Australia. MACA, a global contractor that works within the mining, construction and process engineering sectors and is owned by Thiess, is excited to welcome this machine to its growing Liebherr excavator fleet, it says.

It joins three Liebherr R 9200 excavators operating on the site, owned by Capricorn Metals, expanding MACA’s already extensive Liebherr fleet, totalling over 20 excavators.

The R 9300 was chosen not only for its capacity to assist in meeting the production targets of its client, but also for the excavator’s fuel efficiency; its state-of-the-art technology, such as Liebherr’s Assistance Systems; and its operational effectiveness, Liebherr says.

Liebherr-Australia completed the assembly, testing and commissioning of the R 9300 in a matter of four weeks. The company will continue to support the machine and MACA from both its Perth and Newman branches, as well as from the factory for Liebherr mining excavators in Colmar, France.

The R 9300 was launched to the global mining market in June of this year. It is the second Generation 8 excavator within the Liebherr Mining portfolio and comes with the most advanced Liebherr Mining innovations as standard. The R 9300 will replace the R 9250 as the 250-tonne mining excavator in Liebherr’s portfolio in 2024.

You can find out more about the R 9300 in this video interview here.

Foran Mining drafts in G Mining Services for McIlvenna Bay project build

Foran Mining has selected G Mining Services (GMS) as its partner in the formation of the integrated project management team (IPMT) for construction of its 100%-owned McIlvenna Bay Complex in Saskatchewan, Canada.

Founded in 2006, GMS is a mining consultancy firm excelling in both underground and open-pit mining and processing projects, including operations in Canada. It has a range of services spanning greenfield projects to mine operation, with notable work carried out on Lundin Gold’s Fruta del Norte project in Ecuador, Newmont Mining’s Merian Mine in Suriname, the Greenstone project in Ontario and the Tocantinzinho project in Brazil.

Foran says GMS has achieved a remarkable 100% success rate in delivering projects on or below budget.

Dan Myerson, Foran’s Executive Chairman & CEO, said: “G Mining Services is the ideal partner to deliver the McIlvenna Bay Complex into production and unlock this meaningful critical minerals district. GMS’ unique and innovative IPMT model enables a harmoniously aligned construction team seamlessly transitioning into an operating team, which is critical to success. Integrating GMS within our ranks provides the support and accountability needed in delivering safe, on-budget, and on-schedule mine construction. Their expertise, unwavering commitment to safety, and dedication to timely and fiscally prudent project delivery are expected to play an instrumental role into McIlvenna Bay’s development.”

Mathieu Gignac, President of G Mining, added: “We consider ourselves fortunate to partner on projects that align with our expertise and with people who align with our values. The opportunity to work with Foran, be an integral part of their team and contribute to the development of McIlvenna Bay brings us great excitement, particularly as McIlvenna Bay becomes Saskatchewan’s pioneering base and precious metals project. Our involvement not only emphasises our commitment to delivering excellence but also highlights our role in bolstering Canada’s critical minerals sector.”

In line with this transition, Gilbert Lamarche, previously Vice President, Technical Services, has been promoted to Chief Operating Officer. David Bernier, former COO, will continue to play a role within the company, leveraging his contributions in de-risking, building and growing the project and advancing key strategic initiatives, the company says. Sam Renelli has been promoted from Operational Readiness Manager to the position of Vice President, Technical Services.

The 2022 feasibility study on McIlvenna Bay outlined a 4,200 t/d operation over an 18.4-year mine life, able to produce an average annual production of 33,000 t of copper-equivalent output over the first 15 years of mine life. By individual metal, this equates to 17,600 t of copper, 28,900 t of zinc, 20,000 oz of gold and 486,000 oz of silver.

Barminco wins extension at Regis Resources’ Rosemont, Garden Well operations

Barminco says it is further extending its relationship with Regis Resources Ltd, securing a A$70 million ($45 million), six-month extension at the gold miner’s Rosemont and Garden Well operations in Western Australia.

With both gold mines in close proximity, it allows Barminco to continue to be agile with resourcing and equipment to provide comprehensive underground mining services to our client, it says.

Regis recently opened the Balkau Decline at its Garden Well South underground mine, which is an underground extension of the Garden Well open-pit mine: a key production source at Regis’ Duketon gold project, located in the Goldfields region.

Rosemont, meanwhile, includes the Rosemont open pit and underground mine, as well as Baneygo open pit. The Rosemont and associated surface deposits are mined using conventional open-pit mining truck and shovel methods. The Rosemont underground produces approximately 600,000 t/y and is mined using mechanised open stoping.

MMG-Roseberg-HxGN-OAS

MMG and Hexagon achieve ‘Australia first’ fatigue detection tech installation at Rosebery

MMG Rosebery says it has become the first mine in Australia to introduce fatigue detection technology in its underground operations, installing the HxGN MineProtect Operator Alertness System across the site in Tasmania.

The system, from Hexagon’s Mining division, has for the first time been installed in underground vehicles to detect fatigue and distraction in real time during 12-hour shifts, further strengthening the safety measures already in place to protect Rosebery’s 530 strong workforce.

Rosebery Mine General Manager, Steve Scott, said MMG continues to look at new and innovative ways to enhance safety across the mine site.

“Our number one value is we always think safety first, and nothing is more important than ensuring all our people go home safely at the end of each day,” he said.

“We recognise that with long shifts, fatigue can become a hazard and this technology enables us to continue to assess the fatigue risk of our underground truck operators in real time.”

The camera technology sits on the vehicle’s dashboard and will send alerts through audible sounds and seat vibration when it detects fatigue and distraction.

Rosebery Mine worked with Hexagon to install the technology in 11 underground trucks with 81 operators now registered to use the system.

Scott said the feedback from MMG’s people using the system has been overwhelmingly positive.

“They’ve seen real value in the technology because it not only helps them to recognise that they’re tired, but also manage their fatigue better after their shifts,” he said. “We have a culture at Rosebery where we encourage a positive and safe workplace, and this is just another initiative that helps us achieve that.”

The Rosebery Mine is one of Tasmania’s largest and oldest continuously operating, underground mines producing zinc, copper and lead concentrates, as well as gold doré.

Pictured is Chantelle Moretti, an Underground Truck Operator at Rosebery, holding the card to log onto the HxGN OAS.

Rajant and STRACONTech boost network coverage at Hudbay’s Constancia mine

Rajant Corporation, the pioneer of Kinetic Mesh® wireless networks, and STRACONTech, a Kinetic Mesh Partner in Lima, Peru, say they have increased bandwidth and improved networking coverage at the Constancia mine in Peru, a project owned by Hudbay Minerals.

After reviewing options, the mine selected to invest in Rajant’s solution for mobility, which allows an almost “plug-and-play” integration with the mine’s existing LTE network, Rajant said. Eduardo Rojas, IT Manager at Hudbay, said: “Our mining operation needed a better design for its haulage and loading fleet. With the Rajant hybrid solution, we now have a significant increase in bandwidth, which will allow us to be more efficient.”

With the Rajant Peregrine LTE BreadCrumb®, the mine obtained a four times performance improvement, going from a limit of 10 Mb/s with LTE up to 40 Mb/s.

The Rajant Peregrine LTE allows connectivity on multiple frequencies simultaneously, including LTE. This improves operations so connectivity is not lost with the mining fleet even when interference exists on the 2.4 GHz, 5 Ghz, or LTE band, Rajant says.

Rajant Vice President of Sales (Americas/APAC), Sagar Chandra, added: “All mining operations want reliable and scalable connectivity. We successfully improved the performance of the installed LTE network using the Peregrine LTE, which offers the unique benefit of Kinetic Mesh and direct machine-to-machine connectivity.”

Rajant and STRACONTech teams started with a proof of concept, resulting in a larger phased installation, delivering improved performance.

STRACONTech’s team explains: “We measured 30-32 Mb/s at 1 km while the mine’s LTE had a ceiling of 10 Mb/s. We solved the challenge they had. Moreover, the investment in the Peregrine LTE was a one-time cost for the mine without recurring annual software or maintenance costs, saving them long-term.”

Hudbay’s Constancia mine produced 89,395 t of copper, 58,229 oz of gold and 2.3 Moz of silver in 2022.