Tag Archives: Ontario

Kirkland Lake Gold boosts Macassa battery-powered fleet with Artisan Z50s

With production at the Macassa gold mine in Ontario, Canada, set to ramp up over the next three years, Kirkland Lake Gold is, once again, bulking up its fleet of battery-electric equipment.

In its just released December quarter results, the company confirmed it recently purchased five 50-t battery-powered underground haul trucks for the operation, with the first already delivered in the current quarter.

The loaders in question are Artisan Z50s, which have a 50-t payload and are equipped with AutoSwap, a patented self-swapping system for the Artisan battery pack.

Macassa is a first adopter of battery-electric equipment, testing out early protoype versions of machines and now having a large fleet of trucks and LHDs from the likes of Artisan and Epiroc.

Kirkland Lake has big plans for Macassa, with the #4 Shaft project underpinning much of the planned growth.

In the quarterly results, the company said the shaft advanced 875 ft (277 m) in the three months ending December 31, having now reached a depth of 4,240 ft. Kirkland Lake said the project, which will see the shaft sunk to a depth of 6,400 ft in one phase, was around one month ahead of schedule at the end of 2020. Project completion was targeted for late 2022.

Macassa produced 183,037 oz of gold in 2020, down from 241,297 oz in 2019, following COVID-19-related changes. The company expects the mine to ramp up over the next three years, reaching 400,000-420,000 oz in 2023 following completion of the #4 Shaft.

Evolution Mining’s Red Lake transformation taking shape with CYD decline

Evolution Mining’s transformation plans at the Red Lake gold mine in Ontario, Canada, are tracking ahead of schedule with the Australia-based company’s board signing off the development of a surface decline at the operation.

The company acquired the Red Lake Complex from Newmont in November 2019 in a deal that could eventually rise to $475 million. When the deal was completed, it committed to invest $100 million on existing operations and an additional $50 million in exploration at Red Lake over the first three-year period following completion of the transaction.

The company says the surface decline, which is expected to cost A$60-A$70 million ($47-55 million), will provide a near-term opportunity to access additional low-cost ounces in the Upper Campbell mine at Red Lake with two additional mining fronts independent of the current shaft-constrained infrastructure.

The decline has been named the Campbell Young Dickenson (CYD) in recognition of three early developers of the Red Lake deposit, Evolution said.

Red Lake currently hosts a total reserve of 2.93 Moz at an average grade of 6.9 g/t gold. The decline will enable access to the Upper Campbell area of the mine, which hosts reserves of 1.85 Moz at an average grade of 7.4 g/t Au. Access to the HG Young orebody will also be established, which hosts a resource of 427,000 oz at 5.5 g/t Au and has the potential to be converted to reserves with additional drilling, Evolution said.

 

Annual gold production rates from these additional mining fronts are expected to be in excess of 1 Mt, according to the company.

With regulatory approval for this decline already in place, the box cut is expected to be completed in the March 2021 quarter. It will be located proximal to the Campbell mill.

Following this, development activities are scheduled to commence in the June 2021 quarter and first ore is currently expected in the June 2022 quarter. Studies are ongoing to assess opportunities to accelerate development and ultimate access to first ore, the company said.

Evolution’s stage 1 transformation plan at Red Lake is to cement production of plus-200,000 oz/y at an all-in sustaining cost of less than $1,000/oz by 2023. As part of this program, it has already decommissioned around 70 pieces of underground equipment and completed the phase 1 “hoist automation project” among other things.

Jake Klein, Evolution’s Executive Chairman, said on February 17: “Red Lake has consistently exceeded our expectations in almost every respect. With today’s announcement of the 2.93 Moz gold JORC Code ore reserve and board approval for the decline development, we are excited about the continued momentum we are building at this operation.

“This commitment is a significant step towards achieving Evolution’s vision of restoring Red Lake to be one of Canada’s premier gold mines sustainably producing 300,000-500,000 oz per annum of low-cost gold.”

Barrick Hemlo boosts productivity with Orica wireless blast initiation solution

Orica says testing of its WebGen™ 100 solution at Barrick Gold’s Hemlo mine in Ontario, Canada, has shown wireless blast initiation can improve the economics of its Alimak stoping.

In early 2019, Hemlo’s management team approached Orica and Manroc to explore opportunities for improvement via the application of wireless blast initiation. Through a series of workshops, Orica and Barrick Hemlo worked together to identify opportunities to use WebGen 100 wireless through the earth initiation technology in its Blind Alimak Mining application.

This Blind Alimak Retreat (BAR) concept was aimed at improving both safety and productivity, and included:

  • Reduced exposure time related to Alimak entries;
  • Improved ore recovery from 70% to over 90%;
  • Increased recovery by maximising blast design, sequence, and available void;
  • Increased mucking rates while decreasing cycle time; and
  • Optimised crew logistics by using single pass loading.

To expand operations and aid in the longevity of mine life, both efficiency and recovery were top priorities for the Hemlo team, Orica said.

Alimak Mining is normally done either in small repetitive blasts cycles, from the bottom of the raise up to an upper sill, or, in the case of blind Alimaks, as a mass blast into the void that exists in the raise and undercut below.

Given that access is lost after the mass blast, the size of the blast (Alimak height) and recovery is often restricted by “free face” and available void. At Hemlo, the Blind Alimak blast performance was limited by underbreak in the top third of the Alimak (footwall break) due to the available void becoming choked off during blast progression. Using wireless blasting technology, the team was able to eliminate all void limitation, Orica said.

The solution was to develop a blast design with optimised burden and spacing as well as timing and blast sequencing, allowing well-defined portions of the Alimak stope to be taken at the appropriate time. Single-pass loading was used to achieve the safety and productivity benefits.

Breaking the Alimak stope into five pre-loaded portions (each increasing in size to capitalise on void created during the excavation process) allowed for flexible blast management throughout the mining process, Orica said.

“With the ability to merge and increase blast sizes based on in-field results, the operation had unprecedented control and was able to operate outside of the traditional constraints of mining cycles,” it added.

With three days of continuous loading, Hemlo was able to achieve a month-and-a-half worth of blasting while freeing up the Alimak crews to move on to the next stope, according to Orica. To maximise the blasting sequence, the first blast (wall slash and five rings) was blasted with Orica’s i-kon™ III Electronic Blasting System. The next three blasts (two merged) were fired with WebGen 100 units when ready, with performance verified with bucket counts and CMS.

The results of the project stope were extremely positive and proved that wireless blast initiation can improve the economics of the Alimak stoping, according to Orica. Key benefits included significantly reduced personal exposure (reduced by over 50%), increased stope recovery and cycle time. The success of the Alimak has also led to the introduction of wireless blasting into large blind up-hole patterns at Barrick Hemlo, solving similar issues to that of the Alimaks, Orica said.

The outcomes of this project delivered a 40% improvement in productivity through decreased cycle time, faster mucking rates, improved ore recovery from 70% to over 90%, and increased safety by eliminating countless re-entries and hookups, while stripping rail and logistically simplifying the operations process.

Recovery improvement and productivity gains delivered significant value and increased revenue for the customer, Orica added.

“The project has also shown the ability to increase the height of blind Alimak stopes without concern for available void, thereby eliminating the need of top sill development moving forward,” it said.

This successful trial has led to full-time technical collaboration with Barrick Hemlo mine since the end of 2019. Including this evaluation at Hemlo, Orica has successfully fired more than 50 wireless initiating system blasts loaded with over 2,700 WebGen 100 units.

Canada Silver Cobalt Works enlists SGS Canada for Re-2OX pilot plant build

Canada Silver Cobalt Works has signed an agreement with SGS Canada Inc to proceed with its Re-2OX pilot plant in Ontario, Canada.

This critical step will allow the company to, it says, accelerate the production of client-specific battery metals for the North American electric vehicle (EV) market, one of its key strategies.

In 2018, SGS Lakefield used the environmentally friendly Re-2OX process to recover 99% of the cobalt and 81% of the nickel from a composite of gravity concentrates while also removing 99% of the arsenic, a long-time issue in this cobalt-rich Cobalt Camp. The gravity concentrates graded 9.25% Co, 5.65% Ni, 49.9% As and 9,250 g/t Ag.

The Re-2OX process, which skips the normal smelting process to create battery-grade cobalt sulphate, was used at SGS to produce a technical-grade cobalt sulphate hexahydrate at 22.6%, directly from cobalt-rich gravity concentrates produced from the first level of Canada Silver Cobalt Works’ Castle mine in the Cobalt Camp. The 22.6% cobalt sulphate compound exceeded the specifications required by battery manufacturers at that time, the company said.

The latest plan calls for SGS to design and build the Stage 1 pilot plant at Lakefield, Ontario. Feed material for this test work will come from the underground at the Castle mine, the high-grade silver discovery Robinson Zone, Beaver and Castle tailings, recycled batteries, and from newly acquired properties.

Management sees the Re-2OX pilot plant as a long-term strategic advantage that will facilitate the production of battery metals for the EV market for many years.

“More importantly, production can be certified as ethically sourced within stringent Canadian environmental standards and traceable verification of a closed-loop supply chain that will ensure this product is highly sought after and could even possibly garner a premium due to source verification,” the company said. “The cobalt ore will come from the Cobalt region including from the Castle property currently being aggressively drilled for high-grade silver and battery metals.”

The company has retained the services of ONSite Labs as an independent contract operator of the Temiskaming Testing Laboratories facility Canada Silver Cobalt Works acquired last year. ONSite is a commercial analytical lab operator.

Over the next four months, ONSite Labs will process samples to prove the ability to produce viable data with the highest standards of quality control, the company said, adding that the lab could be fully operational and open for business by the summer of 2021.

The Castle property is 15 km east of Pan American Silver’s Juby gold deposit, 30 km due south of Alamos Gold’s Young-Davidson mine, 75 km southwest of Kirkland Lake Gold’s Macassa Complex, and 100 km southeast of new gold discoveries in the Timmins West area.

Artisan battery-powered Z50 truck on its way to Kirkland Lake’s Macassa gold mine

Kirkland Lake Gold says it is expecting to receive a 50 t battery-powered Z50 underground haul truck at its Macassa gold mine, in Ontario, Canada, this quarter, following a purchase agreement signed last year.

The gold miner’s Macassa operation has been a leading adopter of new electric equipment and already has four 40 t battery-powered machines at the underground mine. These are matched by many battery-powered LHDs made by likes of Artisan Vehicle Systems and Epiroc.

The latest 50 t vehicle will come from Artisan, a Sandvik Mining and Rock Solutions business unit.

The Z50 haul truck is a ground-up design that seamlessly integrates the most capable and proven battery-electric powertrain available in the mining industry with the latest and most coveted features of any haul truck on the market today, according to Sandvik. The 50 t machine is based off the existing design for the Z40 truck, which Artisan released back in 2018, but features a stretched rear frame (close to 19 in).

It is equipped with AutoSwap, a patented self-swapping system for the Artisan battery pack. This makes battery swapping faster and easier with a minimum amount of manual handling: changing the battery only takes about six minutes, and it can be done in a passing bay or old re-muck bay with no overhead cranes or external infrastructure needed, Sandvik says.

The news of the pending arrival of this electric vehicle came at the same time as Kirkland Lake released its 2020 production results. The company produced 369,434 oz of gold in the December quarter to make a total of 1.37 Moz of gold in 2020, 41% higher than the total in 2019, which was in line with its full-year 2020 guidance of 1.35-1.4 Moz.

Autonomous drilling transition sets IAMGOLD’s Essakane up for longer mine life

The roots of IAMGOLD’s automation ambitions at the Côté gold project in Ontario, Canada, can be traced back to remote and auto drilling developments at its 90%-owned Essakane mine in Burkina Faso, which, according to a recent presentation from Zhi Jun Zhu, has resulted in significant operational benefits.

IAMGOLD launched the first automated drill rig in West Africa with assistance from Epiroc back in February at Essakane. This followed a series of automation steps carried out on the company’s fleet of Epiroc PV235 blasthole drills, beginning with the ‘Operator Assist’ phase back in 2016.

Added to the seven PV235 blasthole drills on site are five Sandvik D45KSs. These drills are working in medium-to-hard material of 100-250 Mpa rock where they drill 229 mm and 152 mm diameter holes on 10 m benches. They come with a single pass limit of up to 12.2 m in down-the-hole drilling mode.

The business case for adopting automation at the site, which began operating in 2010 and was expanded in 2013 to reach a mining capacity of 55 Mt/y, was centred around a capex versus opex dynamic – should the company purchase a new rig to increase drilling performance by 15%, or try to increase the use of automation on its existing seven PV235s to hit this goal?

Alongside this, the company wanted to provide its best drillers with the ability to operate multiple rigs simultaneously, enhance operational safety, support continued sustainability, and improve performance and productivity.

Zhu, who worked at Essakane as Technical Services Coordinator for five years prior to his current role as Autonomous Systems Engineer at Côté, explained during the recent GMG-led Autonomous Drills Virtual Forum: “During the start-up of the mine, the required fragmentation size was difficult to achieve because the ore was coming from the soft area where it was highly weathered and fractured. As the mine depth increased, the material got harder. As a result, the blasting fragmentation became harder to achieve. At the same time as the percentage of hard material increased, productivity of the crusher became a concern and bottleneck.”

With the last life of mine study in 2018 showing a required increase in the total material mined to keep up an average gold production rate of 400,000 oz/y – and the requirement to strip hard material from phase four, five, six and seven to reach a new ore zone from 2026 – the company needed to embed a suitable level of blasthole drill automation in advance of another expansion in the mine life.

Prior to 2016, Essakane required two people to operate a PV235 – one to guide the machine to the desired location and another to operate it.

This was neither safe or efficient, Zhu said, adding that hole deviation and sub-optimal fragmentation were also common with this setup.

Breaking down the project key performance indicators after the initial ramp up of remote and autonomous operation, Zhu said the company was looking for:

  • An improved drilling penetration rate of 15%:
    • 23 m/operating hour (propel + setup + drill); and
    • 28 m/drilling hour.
  • Improved drilling productivity from 63% to 75%:
    • Eliminate stoppage delays associated with lunch and shift change;
    • Lean drilling, less propel/tram and setup/positioning time.
  • Increased drilling capacity from 81,714 to 108,800 drilling meters/rig/year.

Having progressed from the ‘Rig Operator Assist’ mode in 2016, which used Epiroc’s Rig Control System, Surface Manager, Auto Level, first generation AutoDrill module, and Hole Navigation; the company has progressed to the ‘Rig Remote Operation’ phase where (Multi) Remote and AutoDrill generation two functions are employed.

This second-generation system represents a “big advance”, Zhu said.

“The system is very smart and could continuously optimise the engagement to deliver the desired result,” he said. “The only manual input required is the ‘aggressiveness’ setting, which balances the bit life with the penetration rate.”

This led to the launch of its first fully automated drill rig on February 8.

While the project is on course to hit all the above-mentioned KPIs, there have been other benefits including an operating hours improvement of 645 hours/year/rig; a 14,835 m/year/rig drilling metres gain; a $356,040/rig incremental annual production benefit; and a net cost saving of $202,794/rig compared with the equivalent rental equipment drilling cost.

All of these add to fewer people being in dangerous areas on the mine site – with all operators in remote operating centres – more consistent operation from a fuels/lubricants and drilling consumables perspective and, of course, less maintenance.

Reflecting on the implementation, Zhu noted several key required inputs for a successful automation implementation program.

“It is a critical requirement to have a reliable network connection between the on-board device and the remote operations office,” he said.

On top of this, the sensors on the machines need to be kept in top shape, meaning maintenance teams should evaluate their health on a regular basis and always keep spare parts available.

And, while fewer people will be needed to oversee drilling in autonomous mode, the skills level of the required personnel will be that much greater.

Some of the next steps at Essakane include improving the bandwidth and latency time for real-time control of multi-automated drills, developing a preventive maintenance system checklist, and carrying out a business case study on upgrading four PV235s to either Teleremote/AutoDrill 2 operation.

Zhu will no doubt bring these learnings and opportunities to the Côté gold development in Canada, which is expected to operate six blasthole drills in fully autonomous mode when ramped up, alongside more than 20 fully automated haul trucks. These will help the mine reach an average production rate of 367,000 oz/y of gold.

Argonaut Gold moves forward Magino construction with Ausenco EPC contract

Argonaut Gold says it has executed a fixed bid engineering, procurement, construction and commissioning (EPC) contract with Ausenco Engineering Canada for the construction of the Magino open-pit gold processing facility and other parts of the Magino construction project, in Ontario, Canada.

The EPC contract totals around 40% of Magino’s initial capital estimate of between $360-$380 million, the company said.

A 2017 feasibility study on Magino, a past-producing mine, outlined a 10,000 t/d operation with average annual production of around 116,000 oz of gold over a 17-year mine life (including three years of ore processed from a low-grade stockpile). This same study stated open-pit mining operations would use a fleet comprised of 16 m3 front shovels, a 13 m3 front-end loader and 140 t haul trucks.

Pete Dougherty, President and CEO of Argonaut Gold, said: “Ausenco is an industry leader in the field of building high-quality processing facilities in the mining industry and recently did an excellent job with the Moose River project in Nova Scotia, Canada.

“We are excited for Magino to be one of the first projects entering construction in the current gold price environment, as we feel first mover advantage is critical when securing a construction team of the highest quality and with a superior track record.”

Argonaut recently posted the first phase of financial assurance with the province of Ontario and expects the Magino project Closure Plan to be filed by the province of Ontario in January 2021, which will allow for construction to commence.

Pure Gold pours first gold in Red Lake, Ontario

Pure Gold Mining says it has poured first gold at its PureGold Mine, in Red Lake, Ontario.

The first pour occurred on December 29, following the introduction of ore to the mill on December 15, 2020.

Darin Labrenz, President and CEO of PureGold, said: “Today, the PureGold Mine has come to life. With our first gold pour, we have transitioned to producer, and delivered on our promise to build Canada’s newest gold mine in the heart of Red Lake, Ontario, on budget and on schedule.

“To build a mine at any time requires a complete team effort comprised of dedicated, driven, and focused individuals. To do so under the unique challenges of 2020 speaks to the quality and dedication of the entire team. With this first gold bar, we are now focused on ramping up the operation to steady-state production as we continue to build a long-life growth company in Red Lake.”

With the commencement of production at the PureGold Mine, activities at site are now concentrated on optimising the operation, with commercial production anticipated by the end of the March quarter, at which time the company will be providing guidance.

A February 2019 feasibility study on the PureGold Mine outlined a probable mineral reserve of 3.5 Mt at 9 g/t, containing 1 Moz of gold. This saw the company project a 12-year operation, producing an average of 80,000 oz/y at an all-in sustaining cost of $787/oz.

PureGold will also continue to pursue its aggressive growth strategy in 2021, it said, with ongoing exploration drilling from both surface and underground, an update of mineral resources to include drilling completed over the last two years, and incorporation of significant improvements in mine design and mine plan.

Wood to deliver EPCM contract at IAMGOLD’s Côté Gold project

Wood, the global engineering and consulting company, has confirmed it will deliver the engineering, procurement and construction management (EPCM) contract for the $1.3 billion Côté Gold open-pit mine for operator IAMGOLD Corp, supported by JV partner Sumitomo Metal Mining.

Côté is a world-class deposit located in northern Ontario, with estimated contained gold reserves of over 7 Moz. IAMGOLD wants to develop the site to be a model of a modern Canadian mine as it seeks to efficiently unlock the reserves, with Wood providing EPCM services for the project. This project is anticipated to generate over 1,000 jobs during construction and 450 during operations.

Dave Lawson, President, Mining & Minerals at Wood, said: “This project strengthens our relationship with IAMGOLD as a trusted full life cycle delivery partner and it solidifies Wood’s position as a global leader in the development of gold mines.

“Beginning with work on the initial scoping study in 2011, we have worked closely with IAMGOLD to guide the project toward successful execution, helping to identify more than $450 million of improvements in net present value. We were able to do so because of our unrivalled expertise in gold extraction technology having worked on some of the largest and most technically complex gold projects in the world.”

Over the last eight years, Wood has been working with IAMGOLD in every aspect of the project, adding, it says, value at every stage with innovative design and project delivery solutions. Wood’s latest scope of work includes engineering, procurement and construction management for the 36,000 t/d conventional gold processing plant, tailings and water management.

Gordon Stothart, President and CEO of IAMGOLD, said: “We are pleased to move to construction on the Côté Gold Project with our long-time engineering partner Wood. We look forward to bringing this project from concept to reality with their team.”

The Côté project is expected to expand IAMGOLD’s production profile for future growth, by bringing greater geographic diversity and a reduction in costs – enabling sustainable reserve growth and supply stability as demand factors shift in an uncertain environment, Wood said.

Construction of the gold mine commenced in late 2020, and is expected be completed in mid-2023. It is expected to leverage both autonomous drilling and haulage technology.

ValeOre Metals considering Platsol, Falcon separator, Steinert ore sorting for Pedra Branca

ValeOre Metals Corp’s Pedra Branca platinum group element (PGE) project, in north-eastern Brazil, looks increasingly like leveraging the Platsol™ high temperature pressure leaching process judging by the latest test work.

Metallurgical results from sample material collected from outcrops at the Trapia and Curiu deposits areas at Pedra Branca for two preliminary Platsol tests conducted at SGS Lakefield, Ontario, have shown recoveries of 93.4-93.6% for palladium and 95.3-95.7% for platinum were achieved.

The company now plans two additional Platsol tests, to be performed by SGS, to determine the effects of adding elemental sulphur to the autoclave to optimise conditions required for PGE and gold recoveries, it said.

Platsol is a high temperature (>200°C) pressure leaching process designed to recover PGEs, gold and base metals. It has been shown to be particularly effective with PGE ore feeds characterised by high concentrations of chromium and low concentrations of sulphide, much like Pedra Branca, according to ValeOre Metals. The PGEs and gold are solubilised as chloro-complexes by the addition of chloride salt to the autoclave, while base metal sulphides are oxidised to form soluble metal sulphate complexes. The precious metals can be recovered directly from the autoclave discharge slurry by carbon absorption, or by precipitation with sulphide ions.

Platsol consists of standard, proven traditional technologies that are in use in mines around the world, according to the company.

The Platsol tests are part of a comprehensive mineralogical evaluation ongoing at SGS to characterise the speciation of palladium and platinum in Pedra Branca mineralisation to guide future process optimisation initiatives.

As part of this, the company is continuing with Falcon Ultrafine gravity separation test work as a potential pre-concentration circuit to upgrade feed material and improve mass pull.

The company has also initiated hot cyanide leach test work to assess the recovery rates of palladium, platinum and gold in a cyanide leaching process, and will shortly commence shipment of 100 representative chip samples from historic drilling at the Esbarro deposit to Steinert’s facility in Minas Gerais, to evaluate the potential of sensor-based ore sorting test work.

ValOre’s Chairman and CEO, Jim Paterson, said: “The pace of success at Pedra Branca has increased dramatically in the last three months, including today’s release of PGE metallurgical recovery rates of in excess of 93% for palladium and 95% for platinum using the Platsol process.

“Together with an aggressive property-wide exploration program, we are now focused on rapidly optimising the conditions, procedures and processes to further maximise the upside potential of the Pedra Branca project.”