Tag Archives: Mexico

Weba Chute Systems called in for Mexico gold tailings project

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As part of a significant investment to improve its processing facilities and enable the recovery of 40% of the gold that currently sits in its tailings as waste, a mining operation in Mexico called in a leading transfer point and chute systems equipment manufacturer to conduct a thorough assessment on the functionality of existing chutes in the plant.

Weba Chute Systems & Solutions, leveraging its knowledge of material behaviour in chute systems, was tasked with establishing the feasibility of introducing filtered tailings at a rate of 1,200 t/h onto the existing transfer system currently handling waste with a nominal size of 400 mm at a rate of 5,000 t/h.

While the intention is for the filtered tailings to be conveyed when the waste rock is available, it would still mean the same chutes would need to function transferring completely different material, according to Alwin Nienaber, Technical Director of Weba Chute Systems.

“Optimally, one should be able to assess a working transfer chute handling the actual material, however in the case of a feasibility assessment this is not possible, and we therefore started with a review of the test work and studies prepared by independent qualified professional materials handling experts.”

This was done by Weba Chute Systems & Solutions calibrating the material conditions and behaviour using discrete element method (DEM). Nienaber said: “Use of DEM allowed our technical team to model the interaction between individual particles and boundaries and, in so doing, to accurately predict the bulk solids behaviour.”

Access to DEM software allows engineers to predict bulk material flow patterns and flow rates as well as velocity patterns and dead zones within a transfer system, according to Weba. It also provides accurate information on particle distribution in segregation and blending and the impact forces on particles and boundary surfaces, showing wear patterns.

The feasibility assessment included the transfer of sedimentary dry tailings, sedimentary filter cake, breccia dry tailings and breccia filter cake. DEM modelling was carried out considering material on its own and conditions where blended material would be conveyed.

In total, there were four conveyor transfer points that had to be assessed. These included an inline transfer point, a 90° transfer point, a transfer from conveyor to radial spreader intermediate conveyor and then onto the spreader boom conveyor.

M3 Engineering wins Camino Rojo oxide gold project EPCM

Mineral project development, Mining services, Precious metals, , , , , , , ,

Orla Mining says it has awarded the engineering, procurement and construction management (EPCM) contract for the Camino Rojo oxide gold project in Zacatecas State, Mexico, to M3 Engineering & Technology Corp.

M3, a full service EPCM firm headquartered in Tucson, Arizona, has provided services to over 10,000 projects for some 1,000 clients in its 33-year history, Orla says.

Work on the Camino Rojo project will be undertaken out of the M3 office in Hermosillo, Mexico, with senior review and support from the Tucson, Arizona office. The company will be responsible for detailed engineering, construction planning and execution, contractor management and cost control for the project under the auspices of Orla management.

Orla expects to begin engineering work by mid-September, yet the selection of M3 and commencement of any EPCM work is subject to entering into a definitive agreement.

Jason Simpson, President and Chief Executive Officer of Orla, said: “M3 has a wealth of engineering knowledge and with its extensive experience in Mexico, it is well suited to design and build the Camino Rojo project on time and on budget.

“We look forward to commencing detailed engineering work by mid-September as we work with M3 to build a high-quality project that begins to produce gold in mid-2021.”

The Camino Rojo oxide project consists of an 18,000 t/d heap-leach open pit operation. An estimated 44 Mt grading 0.73 g/t Au and 14.2 g/t Ag is expected to be processed during an almost seven-year mine life. Gold production is expected to average 97,000 oz/y at an estimated all-in sustaining cost of $576/oz of gold.

Orla has submitted the permit applications to SEMARNAT for the Manifesto de Impacto Ambiental (MIA) and the Change of Land Use (ETJ) permits at the end of August. The legislated timelines for the review of properly prepared MIA and ETJ applications and mine operating permits for a project that does not affect federally protected biospheres or ecological reserves are 120 working days and 105 working days, respectively, which can be completed concurrently, according to Orla.

Torex breaking records and innovating underground mining space

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It was quarter of milestones for Torex Gold Resources in the three months to the end of June, with a record production number from the company’s ELG complex, in Mexico, and more progress on the company’s innovative Muckahi underground mining system.

The June quarter saw gold production of 113,600 oz, around 12% higher than the previous quarterly production record set in the September quarter of 2018. This saw plant throughput averaging at 11,670 t/d, average underground ore production of 1,280 t/d, average open-pit ore production of 18,600 t/d and an open-pit strip ratio of 6.8:1.

With the quarterly production result, the company reiterates full-year sales guidance of 430,000 oz (+/- 7%), which is weighted towards the second half of 2019.

Fred Stanford, President and CEO of Torex, said: “Q2 was a notable quarter from a number of perspectives. Record total ounce production has been highlighted already. The 1 Moz was also surpassed in the quarter.

“The mining team produced at record levels, both in ore mined in the open pits and underground. Throughout the quarter the processing team made progress in reducing reagent consumption and, late in the quarter, they made improvements in throughput rates per hour.

“Overall, quarterly throughput was hampered by unrelated unplanned downtime in late June. The team has work to do to increase the predictive and preventative aspects of maintenance.”

The Muckahi team also had an excellent quarter, according to Stanford.

“They demonstrated the effectiveness of the drilling system (Jumbo) on the level and have now turned their attention to demonstrating that the system is effective on a -30 degree down ramp,” he said.

“In five rounds, they have completed the transition from a level tunnel to a -30 degree down ramp. In July, they will push forward with the down ramp and initiate the testing of the slusher-based muck removal system. Interesting times!”

The Muckahi concept is an alternative to established underground mining processes that, Torex says, can create a more continuous mining process able to accelerate return on investment.

Learn more about the concept and technology by clicking here.

Torex makes Muckahi plans for newly declared gold reserve

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Torex Gold Resources has announced a maiden underground reserve for the El Limón Deep zone (ELD) at its El Limón Guajes mining complex (ELG), in southwest Mexico, and revealed plans to mine it with its newest innovation, the Muckahi system.

The probable mineral reserve at ELD contains 86,000 oz of gold in 487,000 t of material at an average grade of 5.5 g/t Au (cutoff grade of 3.7 g/t). This is a subset of an indicated mineral resource at ELD that contains 141,000 oz in 797,000 t at an average grade of 5.52 g/t Au (cutoff grade of 2.5 g/t).

The mineral resource at ELD is the downdip extension of mineralisation in the El Limón open pit, some 400 m north-northwest of the Sub-Sill deposit (already being mined) and is open in three directions.

Fred Stanford, President and CEO of Torex, said, while small in comparison to the open-pit mineral reserves, the ELD provides a “nice sweetener to the open-pit production”.

He added: “It is also indicative of the potential to add further underground mineral resources. With ELD open in three directions, the Sub-Sill underground deposit still open at depth, and the potential for down dip extensions of Guajes, we are upbeat about the potential to further expand underground reserves and resources through multiple sources.”

ELD will be accessed through the existing underground development and will use the existing site infrastructure, according to Torex. This infrastructure includes, but is not limited to, electrical facilities, maintenance facilities, main ventilation exhaust fans and the backfill plant. Depending on material availability and geotechnical requirements, all mining areas at the ELD will be backfilled with either cemented aggregate fill or uncemented rockfill.

While the mineral reserves for the ELD deposit have been estimated using conventional mining techniques and costs, the intention is to mine the deposit with the Muckahi mining system, Stanford said.

“If as expected, the costs associated with Muckahi mining are lower than conventional mining costs, we may be able to lower the cut-off grade and increase the size of the mineral reserve.”

Excavation of the 30° down ramp to access the lower parts of the ELD deposit is underway, with four rounds taken, according to Stanford. “In the upper portions of the deposit, the excavations are nearly completed for the initial long hole stopes that will be mined utilising the production aspects of the Muckahi system.”

Stanford also provided an update on the Muckahi system, which is currently undergoing trials at ELG. The first tunnelling blast of the field trials was taken on March 26 and the round was successfully drilled from the monorail mounted Muckahi jumbo drill. The second piece of equipment, the Muckahi service platform, was at the Mexican border as of April 3 and was expected to be in service this by the end of June.

The goal of the trial is to demonstrate Muckahi’s capabilities over the full development cycle for tunnelling, including on a minus 30° gradient, and to demonstrate the capability of the system to lower costs in long hole open stope mining.

Stanford said on June 20: “To date the Muckahi system has performed as expected, we are all eager to progress through the next stages of the testing program and, if proven, then move forward with the strategic options it has the potential to unlock.”

The Muckahi concept is an alternative to established underground mining processes that, Torex says, can create a more continuous mining process able to accelerate return on investment.

Learn more about the concept and technology by clicking here.

GoGold signs up BQE Water for SART plant at Parral tailings operation

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BQE Water says it has been retained by GoGold Resources for the implementation of a sulphidisation, acidification, recycling and thickening (SART) plant at the Parral operation in Chihuahua, Mexico.

The contract comes after on-site testing and preliminary assessment of SART integration into the metallurgical process at Parral that were completed earlier by BQE Water.

Under the contract, BQE Water’s scope of work will include plant engineering design, process automation, engineering support during procurement and construction, plant commissioning, and ongoing operations support after plant start-up. The plant construction is expected to be completed by the end of the year. Once the plant is commissioned, BQE Water will provide operations support services for a monthly fee for a period of three years, it said.

Owned and operated by GoGold Resources, the Parral project involves the reprocessing of old tailings to recover silver and gold by conventional cyanidation. In addition to the precious metals, the tailings also contain significant quantities of cyanide soluble copper and zinc. These base metals compete for cyanide, causing high cyanide consumption and increasing operating costs, according to BQE.

Anis Nehme, COO of GoGold Resources, said: “We have been working with BQE Water for the past few years to evaluate SART integration into the Parral project and we are relying on their expertise to help us maximise the positive contribution SART can bring to the project’s overall performance.”

David Kratochvil, President & CEO of BQE Water, said: “This contract is further proof of our leadership in the safe, cost-effective and rapid deployment of SART to help precious metals producers improve the metallurgical and environmental performance of their projects.

“We stand behind our proven process designs perfected over multiple large projects completed in the past decade and in our operations support capabilities to ensure SART benefits are maximised while operational risks are minimised.”

The SART process recovers copper from cyanide leach solution while allowing free cyanide to be recycled back to the leaching of precious metals. This lowers the cost of gold extraction and reduces the environmental footprint of gold mining projects, BQE says.

“SART can be a game changer that favourably shifts project economics and enables projects to move forward,” BQE said, adding that fewer than 10 industrial scale SART plants have been built and operated globally.

ABEL receives diaphragm pump order from Mexico miner

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ABEL GmbH says it has received a large order for the delivery of 14 hydraulic diaphragm pumps from a Mexico mining company.

The Germany-based company received the order in March, with the pumps to be used for the transport of sulphuric acid-containing jarosite sludge in the course of zinc production.

ABEL explained: “The entire process of hydrometallurgical zinc extraction is also known as jarosite leaching. This process separates iron and zinc by chemical precipitation. This is the most used process of zinc production worldwide.”

Goldcorp’s Peñasquito mine seeing benefits of fully-autonomous drilling

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Goldcorp says it is seeing the multiple benefits of autonomous drilling at its Peñasquito gold mine in Mexico, with the company set to ramp up the use of this technology in the next few years.

In a site visit presentation, the company said using a fully-autonomous drill solution – where the drill is given instructions that it carries out automatically supervised by an operator in a safe and climate-controlled area – has been beneficial to the amount of metres drilled, the quality of drill holes and safety.

In 2017, Peñasquito pursued the use of automation by fitting two drill rigs with autonomous technology for a trial as it looked to reduce its workforce’s exposure to potential hazards associated with drilling in the open pit.

The company now has multiple rigs installed with this technology. In 2018, it retrofitted two Epiroc Pit Viper PV-351 rigs with autonomous features and it is set to retrofit another two this year, according to the site visit presentation. In 2019, it also intends to bring in two automation-ready Pit Viper PV-271s (pictured), and has another scheduled for delivery in 2020.

These are supervised in a control room where up to 12 rigs can be monitored.

The company’s current drilling fleet includes nine Pit Viper PV-351s, one Pit Viper PV-271 and four Flexiroc D65s, according to the presentation.

On the technology itself, Goldcorp said: “The drill can now operate through blasting and other interruptions, providing opportunities for additional drilling hours.”

In addition to this, the autonomous drills can achieve a consistent higher penetration rate, while improving metres per operating hour and reducing operating costs.

Goldcorp said operating hours per calendar day per drill had increased 25% since the introduction of fully-autonomous drilling, while the metres drilled per operating hour had risen 12%. This has amounted to a 40% productivity gain in metres per day, plus improved fragmentation, it added.

Just this week at an SME Annual Conference & Expo press briefing, Matthew Inge, Business Line Manager, Drilling Solutions for Epiroc, said companies were also achieving significant maintenance benefits from the use of autonomous drilling solutions.

First Muckahi mining system on site in Mexico, Torex Gold says

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At the same time as reporting record gold production for 2018, Torex Gold has provided an update on its innovative in-development Muckahi underground mining system.

The company recovered from a blockade at its ELG mine, in Mexico, which affected operations earlier in the year, to produce 353,947 oz of gold in 2018, with 96,316 oz of that coming in the December quarter. Torex guided for production of 430,000 oz in 2019.

In tandem with these results, the company’s President and CEO, Fred Stanford, talked up the company’s Muckahi concept, an alternative to established underground mining processes that, Torex says, can create a more continuous mining process able to accelerate return on investment.

Stanford, who is credited as the originator of the technology, said in the company’s 2018 financial report: “If proven successful in 2019, the Muckahi technology will reduce the costs of future underground mining on the Morelos property (which includes the ELG and Media Luna assets) and will provide us with a competitive advantage when bidding on potential acquisitions and pursuing other options for commercial deployment.”

He said the testing programme for the Muckahi technology was expected to be completed in 2019, with the first of four Muckahi machines on site in Mexico. “We anticipate breaking rock with it in the next couple of months,” he said, adding that as the other machines arrive, the company would incorporate them into the test programme.

The planned use of the Muckahi system, which is also being developed with help from MEDATECH, in the most recent preliminary economic assessment for the Media Luna project saw the after-tax internal rate of return jump from 27% to 46%.

For 2019, Torex’s Muckahi plans include:
• Development on the level;
• Development on a 30° down-ramp;
• Long-hole open stope fragmentation to 95% passing 400 mm, and;
• Mucking a long hole open stope with a slusher.

Cat’s DGB dual-fuel technology cuts costs, emissions at La Herradura gold mine

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Caterpillar has been showing one of Mexico’s biggest gold mining operations that its Dynamic Gas Blending™ (DGB) technology can provide savings on fuel costs and emissions while maintaining the same performance, payload and productivity of its diesel haul trucks.

The mining OEM and its Mexico-based dealer, Matco Cat, have been working with Fresnillo’s Penmont division to convert its entire fleet of large mining trucks at the La Herradura open-pit mine, in Sonora.

Caterpillar’s dual-fuel DGB technology, which has accumulated 10 million hours in the oil and gas industry since 2013, works by blending lower cost liquefied natural gas (LNG) with diesel fuel, according to Cat.

The resultant improvements in fuel, emissions and maintenance can add up to millions of dollars each year in cost savings, Cat said.

La Herradura, since 2016, has acted as a great case study for the technology given it has more than 250 Cat trucks and the operation hauls at least 25 Mt of volume per quarter (based on Fresnillo’s most recent Q4 production results).

In addition, the company has been looking for ways to “produce (gold) in a sustainable manner”, Fresnillo’s Abel Villa said in a recent Cat customer story.

According to Steve Igoe, Commercial Manager for Caterpillar’s Gas Engine Business, the benefits of DGB technology include, primarily, a lower cost per tonne, realised through a lower fuel cost. “DGB truck operation with LNG has proven very beneficial to La Herradura, and this is why they have decided to convert their entire fleet,” he said.

“Typically, LNG is 30% lower than the price of diesel. And, on a typical fleet at a mine, that adds up to millions of dollars a year,” he said. “And the trucks maintain the ability to operate 100% on diesel.”

Cat estimates a fleet of 100 trucks spends approximately $60-70 million/y on diesel fuel. With 65% displacement to LNG using DGB, that fleet could save $13 million/y on fuel alone.

DGB can also bring about a 30% cut in emissions compared with diesel-only operation – another important saving for mining companies looking at sustainability.

Trials during 2016 and 2017 of the technology at a gold mine in Turkey and a phosphate mine in the US have proven these claims.

For instance, the Turkey gold mine has retrofitted DGB technology on Cat 150-ton (136-t) 785C haul trucks and, since installation, has reached an average 70% average fuel displacement in addition to an operating cost reduction of $30/h.

Fresnillo’s Villa said La Herradura had gone further than this in terms of displacement.

“Initially when we started the project, the substitution rate was 70:30. We evaluated the results and changed the substitution to 85:15,” he said. This is close to the peak substitution rate Cat typically recommends.

Villa continued: “We have an average reduction of 70% in diesel consumption. We also considerably reduced the amount of emissions. When we compare both diesel and gas, the operation is the same.”

Cat said it observed a less than 1% difference in speed, payload and gear shifting, plus a 30% reduction in fuel cost, during one customer’s 5,000-h DGB trial.

La Herradura has also seen no unexpected maintenance issues during the trials, according to Fresnillo’s Enrique Leal. This is in keeping with Cat’s focus on reliability and productivity, with the company saying it has tallied zero hours of unplanned downtime.

So far, La Herradura has retrofitted 31 of its 785C haul trucks and a significant number of 240-ton (218-t) 793D trucks with the DGB technology.

Fresnillo’s Villa said the operation also plans to partner with a third party to build an LNG plant near the mine to ensure a sustainable supply.

Leagold planning Los Filos gold mine expansion following latest study

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A feasibility study on the expansion of Leagold Mining’s Los Filos mine, in Mexico, has shown potential for the development of the Bermejal underground mine, enlarging the Los Filos open pit, re-phasing the Bermejal open pit into two distinct open pits (Bermejal and Guadalupe), and construction of a carbon-in-leach (CIL) processing facility.

The study shows total gold production of 3.3 Moz over a 10-year mine life (2019 to 2028) at an average all-in sustaining cost of $795/oz at Los Filos. Post expansion (2021 onwards), average annual production would step up to 350,000 oz at an AISC of $759/oz, compared with 195,362 oz last year, which came from the existing heap leach facilities.

The capital cost came out at $180 million to develop the Bermejal underground and construct a new 4,000 t/d CIL plant with related infrastructure, with an NPV (5% discount) of $565 million generated using an average gold price of $1,250/oz.

Leagold CEO, Neil Woodyer, said: “When we acquired Los Filos in April 2017 from Goldcorp, we identified its potential to be developed into a long-life, low-cost operation with significant scale. During the 20 months since the acquisition, we have carried out extensive exploration programmes for both open pit and underground deposits, developed a 1,330-m ramp to access the orebody at Bermejal underground, completed the Bermejal underground mine design, completed comprehensive metallurgical testwork on all of the mineral deposits to support the CIL plant design, and learned a lot from current operations.

“The study identifies a new operating strategy, which includes three large open pits, two high-grade underground mines, the addition of a CIL plant to process the higher-grade ore, and the continued heap leaching of the lower-grade open-pit ore. The Los Filos expansion will also benefit from existing operations and excellent infrastructure. Approximately 51% of the gold production in the life of mine plan is from the CIL plant and 49% is from the existing heap leach facility.”

Woodyer added the company was now putting the study findings into its “overall corporate business model for planning and corporate financing purposes”, but he said it was “obviously a project we should undertake”.

Bermejal Underground

Bermejal underground mine design and cost estimation was completed by SRK Consulting. A total of 11 km of horizontal and vertical development was planned during the initial development period and a further 45 km over the life of mine. The mine life extends for nine years producing 6.4 Mt at 6.57 g/t for contained gold of 1.348 Moz.

Mining costs of $99/t were based on contractor mining, with the mining method being underhand drift and fill with cemented rock fill (CRF) used as backfill. Bermejal underground will have a dedicated CRF production plant. The production rate averages 2,000 t/d and peaks at 2,150 t/d. Bermejal underground contributes 31% of the contained gold in the life of mine plan.

Los Filos Underground

The Los Filos underground mine is currently operating at over 1,800 t/d and, in the life of mine plan, averages 1,700 t/d with mining costs of $73/t based on owner and contract mining. Reduced operating costs, improved mining efficiencies and additional drilling have enabled the update of the Los Filos underground mine plan to extend to 2021. The reserves are 1.9 Mt at 5.50 g/t for a total of 338,000 oz.

Open-pit mining

Los Filos uses conventional open-pit mining methods with an owner-operated fleet supplemented with rental of additional equipment during peak production periods. The average open-pit mining costs are $1.41/t mined.

Los Filos Open Pit

The expanded Los Filos open pit has a proven and probable reserve of 42.7 Mt at 0.57 g/t containing 776,000 oz. The mine life was extended seven years to 2027. The Los Filos open pit has an overall strip ratio of 4:1

Bermejal and Guadalupe Open Pits

The Bermejal and Guadalupe open pits have been split into two open pits and rescheduled to mine the higher-grade Guadalupe ore earlier in the schedule, which significantly improves the economics, according to Leagold. Guadalupe has a proven and probable mineral reserve of 26.3 Mt at 1.55 g/t Au for 1.313 Moz. A pushback in 2020 will open this up as a separate open pit that has a 10-year life, Leagold says. The Guadalupe pit has an overall strip ratio of 8:1.

The Bermejal open pit extends for at least five years to 2025 based on the current reserves. Proven and probable mineral reserves are 34 Mt at 0.54 g/t Au for 588,000 oz. The overall strip ratio of the Bermejal open pit is 2.7:1.

CIL and heap leach processing

The CIL plant is expected to achieve higher recoveries (an average of 89.7%) and better financial returns than heap leach processing for the underground ore and the higher-grade portion of the open-pit ores.

“The plant also provides the ability to process some ore types that were previously not included in reserves as they were not amenable to heap leach processing; this includes material with an elevated sulphur content which exhibits lower gold recoveries at the crush sizes typically used in crushing for heap leach processing,” Leagold says.

The plant is predicted to process a total of 12.4 Mt at an average grade of ore feed of 4.63 g/t Au with an average recovery of 89.7% to produce 1.658 Moz gold.

The expansion feasibility study contemplates the existing heap leach facility continuing to operate throughout the full life of mine plan. A total of 95.6 Mt of ore with an average grade of 0.79 g/t Au will be placed on the leach pads and have an average recovery of 61.9% to produce approximately 1.5 Moz of gold.

Secondary recovery is expected to contribute an additional 111,000 oz from surface re-leaching and re-handling of previously leached ore, Leagold says.

Contributions to the gold production in the life of mine plan are 51% from the CIL plant, 46% from the heap leach and 3% from secondary recovery.