Tag Archives: Nevada

SNC-Lavalin delivering on new strategy with Rochester POA11 project win

Comminution of minerals, Mine operation news, Mineral processing, Mining equipment, Mining project news, Mining services, Precious metals, , , , , , , ,

SNC-Lavalin says it has been awarded a contract to provide engineering, procurement and overall project management services for the Rochester POA11 project in Nevada, USA, by Coeur Rochester Inc, a wholly-owned subsidiary of Coeur Mining.

This phase of the project is estimated to be complete by October 2020, according to the company.

The project is anticipated to include a 20 Mt/y crushing plant, including a primary and secondary crushing circuit as well as a high pressure grinding roll circuit, a 13,750 gpm (52,049 litres per minute) Merrill-Crowe process plant, a new substation with power distribution and new heap leach pad.

Since approval of the initial plan of operation in 1986, the Rochester Mine has undergone periodic mine plan amendments to support mine development projects and continued operations. The mine plan amendment (termed Plan of Operations Amendment Number 11, or simply ‘POA 11’) proposes another mine life extension, which would maintain the current workforce and operate the mine at full production until 2033, SNC-Lavalin said. Coeur says it expects to produce 27,000-33,000 oz of gold and 4-5.5 Moz of silver in 2020.

The Rochester POA11 project is located 160 km northeast of Reno near Lovelock, Nevada. The Rochester mine is an open-pit operation that produces silver and gold. Mining methods include typical open-pit techniques where ore and waste rock are drilled, blasted, crushed, loaded and hauled to either leach pads (ore) or rock disposal sites.

This mining and metallurgy contract win is aligned with the company’s new strategy moving forward towards engineering services and greater growth, SNC-Lavalin said.

The Montreal-based company will provide overall project management services and integrate the engineering performed by various service providers under one set of specifications, procurement policies, standards, systems and procedures, it said. Services will be provided out of its offices in Toronto, Canada, with local support from the Reno, Nevada, branch. This mandate will include additional support such as public consultations, community engagement and working with the local community to address any impacts on the public, housing and accommodations during the project period.

César Inostroza, Senior Vice-President, Mining & Metallurgy, SNC-Lavalin, said: “As a first project with Coeur Mining, we look forward to building a long-term relationship and supporting our client to develop their silver and gold mine in Nevada.

“This mandate is well aligned with our services-based strategy for mining and metallurgy projects. This is one of multiple mining projects we have recently been awarded in the US market, and we see great potential in expanding our capabilities in the region. We look forward to contributing to our client’s project success through our extensive technical and project experience.”

Redpath to deliver Pumpkin Hollow ramp-up, Nevada Copper says

Base metals, Mine operation news, Mining services, , , , , , ,

Nevada Copper has engaged mining contractor Redpath USA to implement its ramp-up strategy for its underground copper mine at Pumpkin Hollow, in Nevada.

The company commenced production at the underground mine in December and is now entering into a new phase of development supporting its ongoing operations. It said it has “high confidence” in Redpath’s ability as a partner during the ramp-up to full commercial production in 2020.

Redpath replaces the previous mining contractor and will be the company’s principal underground mining contractor going forward, Nevada Copper said. “Redpath is a highly experienced mining contractor with experience of delivering complex projects both internationally and in Nevada, ahead of schedule and under budget,” it added.

Matt Gili, Chief Executive Officer of Nevada Copper, said: “Nevada Copper made the transition to producer in Q4 (December quarter) 2019 and we have developed a clear, straightforward strategy for ramping up our Pumpkin Hollow underground project to full commercial production. Redpath is considered throughout the mining industry as the partner of choice for production ramp up and we are excited to be working with them during this important period of growth.”

Nevada Copper has previously said it is focused on ramping up the mine, in Yerington, to reach nameplate capacity in the first half of 2020.

The 2017 prefeasibility study plan for the underground mine outlined a 5,000 t/d project able to produce some 50 MIb/y (22,680 t/y) of copper, 8,000 oz of gold and 150,000 oz of silver over a 13.5-year life at all-in sustaining costs of $1.96/Ib of copper. It also laid the foundations for a larger integrated project that includes open-pit development and could increase throughput to 70,000 t/d.

Nevada Copper ships first Pumpkin Hollow concentrate

Base metals, Mine operation news, Mineral project development, Mining services, Precious metals, , , , , ,

Following the start of production on December 16, Nevada Copper has shipped the first copper concentrate from its Pumpkin Hollow copper mine, in Nevada, USA.

Having reached these milestones, the company is now focused on ramping up the mine, in Yerington, to reach nameplate capacity in the first half of 2020.

The 2017 prefeasibility study plan for the underground mine outlined a 5,000 t/d project able to produce some 50 MIb/y (22,680 t/y) of copper, 8,000 oz of gold and 150,000 oz of silver over a 13.5-year life at all-in sustaining costs of $1.96/Ib of copper. It also laid the foundations for a larger integrated project that includes open-pit development and could increase throughput to 70,000 t/d.

Matt Gili, Chief Executive Officer of Nevada Copper, said: “Our first shipment of copper concentrate has left Pumpkin Hollow, representing another important milestone as we look forward to continuing our ramp-up to full commercial production in 2020.”

Both Cementation USA and Sedgman USA were involved in the Pumpkin Hollow build, with the former carrying out shaft sinking and underground mine development work and the latter completing the engineering, procurement and construction contract for the surface plant and infrastructure.

ioneer secures 60% of Rhyolite Ridge sulphur needs with Shell LOI

Energy minerals, Mineral processing, Mineral project development, Mining services, , , , , , ,

ioneer says it has signed a letter of intent (LOI) with Shell Canada Energy that will see the lithium-boron developer purchase up to 250,000 t/y of high-quality sulphur for its Rhyolite Ridge project in Nevada, USA.

This amount represents around 60% of the estimated annual sulphur requirement for the project, ioneer said.

“The signing of the LOI is one of the first steps to securing key reagents for the proposed acid leaching of the project’s lithium-boron Searlesite ore,” the company said, adding that both ioneer and Shell were working on turning the LOI into a binding supply agreement.

A prefeasibility study on Rhyolite Ridge, completed in October 2018, estimated production of 20,200 t/y of lithium carbonate and 173,000 t/y of boric acid, with production from 2021 and a 30-year mine life.

Managing Director of ioneer, Bernard Rowe, said: “Sulphur is the key input for the acid plant that is the heart of the proposed processing facility as it will provide the acid required for leaching the ore as well as all of the power and steam required to produce the lithium carbonate and boric acid at Rhyolite Ridge.”

Alio Gold looks to new loading and hauling equipment for production boost

Equipment maintenance, Mine operation news, Mining equipment, Mining services, Precious metals, , , , , , , , ,

Alio Gold has signed lease agreements for the acquisition of new loading and hauling equipment at the Florida Canyon mine, in Nevada, USA.

The fleet is comprised of thirteen 90-t haul trucks and three matched wheel loaders, Alio said.

On top of this, a maintenance and services contract has been signed that provides guaranteed mechanical availability of the new fleet and encompasses all required maintenance activities over the life of the lease agreement, according to the company.

Both agreements are for approximately five years, depending on the actual hours of operation, after which the equipment can be purchased for some $2 million, Alio said, adding that the existing fleet will be retired as the new fleet becomes operational.

“Florida Canyon is well advanced on commissioning the new fleet with four trucks and one loader currently production ready; five additional trucks and one loader are currently on site in various stages of assembly; and the remaining four trucks and loader are due for delivery in October,” the company said.

Alio acquired the Florida Canyon gold mine during a business combination transaction with Rye Patch Gold in 2018. The heap leach operation produced 47,353 oz of gold and 31,993 oz of silver in 2018.

Mark Backens, President and CEO of Alio Gold, said acquiring the new loading and haulage fleet removed the primary cause for the underperformance of the mine.

“With availability now guaranteed, we will be better able to achieve our production objectives,” he said. “Once the fleet is fully operational in November, we expect to see increased ore movement leading to higher gold production and lower cash costs. We look forward to providing the market additional guidance for 2020 once the new equipment is fully operational.”

In addition, Florida Canyon has received all required permits to initiate construction of the second heap leach pad. Contractor mobilisation has commenced, and long lead-time items have been ordered. Construction is expected to take around six months and could be completed in stages to facilitate early placement and leaching of ore.

“Receipt of the construction permit for the second phase of the leach pads is a major milestone for Florida Canyon and positions the company nicely for increased profitable production in 2020,” Backens added.

El Nino arrives early for Premier, Nevada Gold Mines

Mine operation news, Mineral project development, Precious metals, , , , , , , , ,

Premier Gold Mines says processing of ore has commenced from the El Nino gold mine at the joint venture South Arturo mine, in Nevada, USA.

South Arturo is located in the Carlin Trend, and is a joint venture between Premier (40%) and Nevada Gold Mines (60%), a joint venture company owned by Barrick Gold and Newmont-Goldcorp with Barrick as the operator.

The El Nino mine was developed on-time and on-budget, with ore now being processed ahead of schedule, according to Premier Gold. Production is expected to ramp up in the second half of 2019, with a first gold bar pour having been held on September 26.

Premier said attributable gold production is estimated to meet the high end of its 5,000-10,000 oz guidance for the year and it expects that, owing to the high-grade ore at El Nino, South Arturo will have a positive effect on cash flow for the company.

Ewan Downie, President and CEO of Premier, said: “We are excited to once again realise the benefits of South Arturo, increasing the company’s production profile with an anticipated reduction in overall operating costs. Premier continues to benefit from the stellar performance of our partner, Nevada Gold, and its demonstrated ability to consistently execute on schedule.”

In the second half of 2019, surface and underground drilling will resume in an effort to continue delineating and expanding mineralisation at El Nino. El Nino is a high-grade underground deposit situated down plunge of the Phase 2 pit, where mining was concluded in 2017. Pre-stripping of the Phase 1 open-pit project, a second mine being constructed at South Arturo, is ongoing with a target of production in the second half of 2020. Work is also continuing to optimise heap leach material with a potential future decision to proceed with the development of a heap leach facility on the property, the company said.

Surface haulage automation is being tested out at South Arturo, where ASI Mining has successfully completed a proof of concept (POC) utilising five haulage units “that have delivered over 5.5 Mt faster than any other similar POC in the industry”, Barrick Gold said last month.

Barrick and Newmont Goldcorp launch Nevada Gold Mines

Mine operation news, Mining mergers and acquisitions, Precious metals, , , , , , , ,

Barrick Gold and Newmont Goldcorp have officially launched their Nevada Gold Mines LLC joint venture, just over three months since the two signed an implemtentation agreement.

The new JV, owned 61.5% and operated by Barrick, and owned 38.5% by Newmont Goldcorp, will rank as the largest global gold producing complex by a “wide margin”, according to Barrick, with three of the world’s top 10 Tier One gold assets (Goldstrike/Carlin, Cortez and Turquoise Ridge/Twin Creeks) and potentially another one in the making (Goldrush), the company said.

Nevada Gold Mines’ assets in north-eastern Nevada comprise 10 underground and 12 open-pit mines, two autoclave facilities, two roasting facilities, four oxide mills, a flotation plant and five heap leach facilities. In 2018, these operations produced a total of 4.1 Moz of gold, approximately double that of the industry’s next largest gold mine (Muruntau, in Uzbekistan).

The company has a reserve and resource base with proven and probable reserves of 48.3 Moz; measured and indicated resources of 27.4 Moz; and a further 7.5 Moz of inferred resources with still more potential, Barrick said.

Nevada Gold Mines is targeting production of between 1.8-1.9 Moz at a preliminary estimated cost of sales of $940-970/oz and all-in sustaining cost of $920-950/oz for the second half of 2019.

Barrick President and Chief Executive Officer, Mark Bristow, who is chairman of the new company, says the establishment of Nevada Gold Mines was designed to combine, arguably, the industry’s best assets and people in order to deliver the best value to stakeholders.

“Its creation was driven by a compelling logic which had long been evident to all but had been elusive for two decades until we finally achieved a breakthrough this year,” Bristow said.

“Over the past months, we have selected and set Nevada Gold Mines’ leadership in place. The company now has one team that shares one vision, and who are more than ready to race out of the starting blocks. We have also identified the very significant synergy opportunities which are immediately available and those which have been targeted for the future.”

Gary Goldberg, Newmont Goldcorp’s Chief Executive Officer, said: “This innovative joint venture represents a unique opportunity to generate additional long-term value for our shareholders, employees, and the communities of northern Nevada. By combining our assets and talent in Nevada, the joint venture will extend safe, profitable and responsible production much further than what each company could have done on its own. We look forward to actively participating in and supporting the JV to deliver a positive step-change in results.”

Identified synergies are expected to deliver up to $500 million/y over the first five years from 2020, stepping down over time after that. These will come mainly from integrated mine planning, optimised mining and processing, cost reductions and the combination of the adjacent Turquoise Ridge and Twin Creeks, which will be operated as a single mine.

Barrick said: “Second half guidance builds in those synergies that the company believes it should be able to realise within the next six months, representing approximately half of the targeted annual cash flow improvements. With the closing of the JV now complete, the company will look to incorporate further synergies to benefit 2020 and beyond.”

The future benefits include longer profitable mine lives, longer-term employment opportunities, longer-term benefit-sharing with local communities and longer-term advantages for Nevada’s economy, according to Barrick.

Bristow noted that the Nevada Gold Mines management team included executives from both joint venture partners. The Executive Managing Director is Greg Walker, formerly Head of Operations and Technical Excellence for Barrick’s North American region. Barrick has three board seats and Newmont Goldcorp two, with the board supported by technical, finance and exploration advisory committees on which both companies have equal representation.

Comstock Mining to test out Mercury Remediation System in Nevada

Environmental, Mining services, Water management, , , , , ,

Comstock Mining and one of its subsidiaries have entered into a definitive agreement with Mercury Clean Up (MCU), in collaboration with Oro Industries, for the manufacture and global deployment of mercury remediation systems with “proprietary mechanical, hydro, electro-chemical and oxidation processes to reclaim, treat and remediate mercury from tailings and industrial effluents derived from mining and other industrial applications”.

Oro owns all of the intellectual property and MCU has the exclusive worldwide rights to the proprietary mercury treatment system: the Mercury Remediation System. MCU, in partnership with Comstock, will deploy that solution globally, Comstock said.

Comstock provided some detail on why it was signing such as deal.

“Worldwide unregulated activity has released thousands of tonnes of mercury into the environment,” the company said. “The continued worldwide use of mercury in unregulated activities, primarily outside of the US, is polluting air, soils, and waters and poisoning marine life and endangering lives. Ongoing, unregulated artisanal mining outside of the US represents more than 40% of the ongoing mercury contamination and represents an enormous opportunity for cleaning up the environment in a sustainable, profitable manner.”

The almost 140-nation, globally-sponsored, 2017 Minamata Convention on Mercury represents a relatively new international treaty designed to prioritise, support and protect human health and the environment from releases of mercury, according to Comstock. “This treaty is uniting governments, scientists, non-government organisations and now MCU, in eliminating the use of mercury in mining. Mercury will not go away by itself and must be removed to stop the pollution. Mercury can’t be broken down or destroyed, and MCU, in collaboration with Oro and Comstock, is pioneering the solution for removing the mercury efficiently and effectively.”

Over the past seven years, Comstock has implemented several approved plans, by the Nevada Division of Environmental Protection (NDEP), intended to address NDEP’s and the US Environmental Protection Agency (EPA) protocols, guidance and goals for sampling, characterising, transporting and managing mercury within the Carson River Mercury Superfund Site. “These plans, and Comstock’s existing permitted infrastructure, provide an ideal platform for evaluating and fine-tuning the MCU process. MCU will work closely with NDEP for any additional approvals, engineering design changes (EDC) or permits,” Comstock said.

From 2013 to 2016, Oro conducted a series of scientific, international studies that tested over 50 samples of mine tailings from widespread uses of mercury in numerous artisanal mining sites. The study developed a safe and economical Mmrcury recovery process that remediates historic contamination and prevent new contaminations, according to Comstock. “The study showed that gold recoveries could self-sustain the remediation.”

Comstock will invest $2 million in MCU, with the right of first refusal on both business and capital investments. Comstock will own up to 25% of MCU and separately, 50% of a new 50-50 venture called Comstock Mercury Remediation LLC, effectively resulting in a 62.5% profit interest for Comstock.

Corrado De Gasperis, Comstock Executive Chairman and CEO, said: “The goal of eliminating mercury contamination from the environment and current, ongoing mining processes profitably is a staggering opportunity for our planet, our partners and our company and represents a significant step forward in our strategy for delivering conservation-based, economically enhancing mining technologies and processes, and our partners are already receiving and analysing domestic and international enquiries.”

MCU will demonstrate the feasibility of the Mercury Remediation System within the historic, world-class, Comstock Lode mining district as part of the next steps. Comstock will provide the platform for testing the Mercury Remediation System and MCU will conduct the initial trials starting with a 2 ton per hour (1.81 t/h) pilot operation that could scale up to 25 ton per hour (22.68 t/h) and deliver the final feasibilities, the company said. Comstock and MCU would enable the 50-50 Comstock Mercury Remediation venture for pursuing these global business opportunities.

Oro will commence manufacturing for the deployment of the 2-25 ton per hour mercury recovery plant coupled with a 200 gallon-per-minute (12.62 l/s) dissolved air flotation water recycling treatment plant and field laboratory. The entire system will be mounted on three separate trailers for mobility. Initial equipment setup will rest on the company’s fully contained, double-lined processing facility, Comstock said.

This will see:

  • Samples from the within the Comstock and identified Carson River mercury sites, will be analysed, extracted and transported per the SAP to the MCU processing facility located at Comstock’s American Flat processing facility, in Storey County, Nevada;
  • Comstock and MCU work closely with the NDEP on all protocols, including test areas, documentation standards and routine, periodic reporting, and;
  • Full technical and economic feasibility processes will continue for 12 to 18 months.

Paul Clift, founder of Oro and Co-founder of MCU, said: “Both parties have a proven track record of environmental excellence and innovation and we welcome this partnership for solving a critical, global contamination problem. We have been bombarded with requests for a mercury solution and Oro has been committed to chemical free, safe solutions for global miners. Together, through MCU, we will deliver the only safe, efficient and economically feasible solution for what is truly a global dilemma.”

Schlumberger eyes up Nevada lithium brine project

Energy minerals, Environmental, Industrial minerals, Mineral project development, Mining mergers and acquisitions, Mining services, Water management, , , , , , , , ,

Schlumberger has entered into an earn-in agreement with Pure Energy Minerals Ltd that could see it become the 100% owner of a lithium brine project in Nevada, US.

Pure Energy has granted subsidiaries of Schlumberger an option to acquire all of its interests in the Clayton Valley project in return for constructing, at its own cost and expense, a pilot plant for the processing of lithium brine.

Schlumberger, which is more used to providing services to those in the oil & gas field, has a three-year period in which to exercise the option and may only exercise it if it has completed construction of the pilot plant and test work, which achieves certain parameters, Pure Energy said.

Upon exercise of the option, Pure Energy will be entitled to a 3% net smelter returns royalty on minerals produced at the Clayton Valley and an advance minimum royalty payment of $400,000 per year starting January 1, 2021, for a period of five years or until the project achieves commercial production.

Pure Energy and its technical consultants have completed the basic design for the proposed pilot plant which could cost an estimated $15-$25 million. The company has received a water right from the Nevada Division of Water Resources to extract the lithium-bearing brine needed for operation of the planned pilot plant.

The pilot plant design is being led by Tenova Advanced Technologies with significant contributions from SUEZ Water Technologies & Solutions, a business unit of SUEZ Group, and NORAM Engineering & Constructors. The facility at the project will be the first pilot-scale implementation of the Tenova Process in the world. This process is specifically designed to exclude solar pond evaporation, increase and accelerate lithium recovery, and reduce the associated environmental footprint of lithium production.

Second Sandvik roadheader heading to Turquoise Ridge gold mine

Automation, Explosives and blasting, Mine operation news, Mine shafts and equipment, Mining equipment, Mining services, Mining techniques, Precious metals, , , , , , , , , ,

The transition of Barrick Gold and Newmont Mining’s Turquoise Ridge gold mine (owned 75:25) in Nevada, US, to a Tier One operation is tracking to plan, the Canada-based miner said recently, with the Sandvik MR361 roadheader it took delivery of back in 2017 continuing to prove its worth.

Barrick said in its December quarter results that it is looking to increase production and resources at Turquoise Ridge through mechanisation, automation, and innovation.

The ramp up of the roadheader over 2018 improved safety, increased throughput, and dropped mining costs per tonne, the company said in its results statement. This has led to Barrick ordering a second roadheader, manufactured by Sandvik, which will be delivered to the operation later this year. On top of this, Barrick said it is evaluating the opportunity associated with increasing the level of mechanisation and automation for the operation.

Barrick already has extensive experience using Sandvik roadheaders, with the company having employed a MH620 unit at its Cortez gold mine, also in Nevada, US. Weighing 125 t and driven by a 300-kW cutting motor, the MH620 cutting the Range Front declines at Cortez is one of the world’s largest roadheaders.

Construction of a third shaft at Turquoise Ridge continues to advance according to schedule and within budget, Barrick said in the results statement, with efforts in 2019 focused on earthworks and shaft sinking.

“The construction of this shaft is expected to increase annual production to more than 500,000 oz/y (100% basis), at an average cost of sales of around $720/oz, and average all-in sustaining costs of roughly $630/oz,” Barrick said.

“As of December 31, we have spent $62 million (including $3 million in the December quarter of 2018) out of a total estimated capital cost of $300-$325 million (100% basis) on the construction of this shaft.”

Initial production from the new shaft is expected to begin in 2022, with sustained production from 2023.

Since the end of 2015, reserves at Turquoise Ridge have increased by 3.5 Moz (100% basis), primarily through driving down mining costs per tonne, which has allowed for a lower cutoff grade, thereby optimising the way the orebody is mined.

“The focus in 2019 is to realise the potential to further grow reserves, extend mine life, and grow production over and above the current mine plan, through reducing costs to further lower the cutoff grade, as well as extending mineralisation at depth,” Barrick said.