Tag Archives: Ontario

Sandvik Canada to inspire mining customers to go ‘green’

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Sandvik will transition to a more agile footprint in Ontario, Canada, to, it says, better serve customers throughout the province and reduce its carbon footprint.

The OEM plans for a “greener, more agile future” for its organisation in Canada and will begin the process of this transition in Ontario before the end of the year.

The company’s vision of its future operations in Canada is as an organisation that is flexible and can respond to customer requirements, wherever they may be, while minimising harm to the environment they operate in.

“This transition will not happen over night, but it begins with a few key changes that will support some more immediate needs of our customers and will jump start our sustainability initiatives,” Peter Corcoran, Vice President of Sandvik Canada, said.

Sandvik’s climate action plan includes offering customers carbon reduction pathways through battery-electric vehicle (BEV) technology, and reducing the carbon footprint from Sandvik’s own operations, and the company will take specific actions in Canada to address these goals.

“BEVs are a large part of Sandvik Canada’s sustainability plans,” Corcoran says. “We envision ourselves as an enabler of zero emissions-mining through our battery-electric offerings.”

In order to enable the industry’s transition to cleaner technology, investment is required in education to expand the industry’s capacity to maintain BEVs. These machines require a “unique technical skillset” to support as they have fewer mechanical components and more electrical components, Sandvik says. To support the transition to this cleaner technology, Sandvik has partnered with Northern College to develop a BEV technician education program and build a new generation of service specialists to support the industry in mining.

“This program is really a win-win for a cleaner industry and our communities,” Corcoran explains. “Servicing these machines requires specialised knowledge of both mechanical and electrical systems. We are investing in educating this next generation of service specialists because we forecast an increase in demand for technicians in this field in the future. We also want to invest in the local talent pool as the benefits of hiring locally and developing sustainable capacity in the community cannot be understated. This partnership addresses both of those areas.”

On top of this, physical footprints will be re-evaluated in Ontario throughout 2021, with a focus on the corporate head office in Mississauga, to improve energy consumption at Sandvik’s facilities. The company says it has already taken preliminary measures to improve energy consumption at its facilities such as switching to LED lightbulbs, and it will take more impactful measures in the coming months and years.

One such action is to consolidate its Kirkland Lake and Lively operations to leverage the established infrastructure in Lively and transition its Kirkland Lake resources into agile field service agents that are ideally situated to support the needs of BEV customers, it said.

The company anticipates this action will lead to an improvement in energy consumption and that the increased support in BEV field service will encourage more customers to consider a low-emissions solution like battery technology.

Gowest Gold heads towards production at Bradshaw with help of Steinert XRT ore sorter

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Gowest Gold is expected to make the leap into production shortly at the Bradshaw gold deposit, in Timmins, Ontario, with all permits secured and a Steinert ore sorter commissioned.

In an update this week, the company said it had received official notice from the Ontario’s Ministry of Energy, Northern Development and Mines that its Mine Production Closure Plan had received final review and filing in accordance with the Ontario Mining Act. This plan provides details for how the Bradshaw mine will be operated and closed, and how the site will eventually be reclaimed once mining activities are completed.

With this permit in hand, Gowest says it has now received all environmental approvals required to bring the mine into commercial production.

On top of this, Gowest said its ore sorter has been commissioned in preparation for sorting the mixed development ore currently stockpiled on surface. This material will be trucked to Northern Sun’s Redstone Mill, in accordance with a toll milling arrangement, where processing is scheduled to begin on the week of November 9.

Gowest previously reported that around 28,000 t of gold-bearing mixed development ore had been collected and stockpiled on site from the company’s ongoing advanced exploration bulk sample program. The company also plans to mine around 15,000 t of stope ore as part of the bulk sample.

The company has previously outlined that run of mine ore from Bradshaw will first be crushed and sent through a dual energy X-ray Transmission ore sorting unit supplied by Steinert US. This was expected to “sharply reduce handling costs and increase gold grades of ore sent for processing”, it said. In a recent presentation, the company said this technology could reportedly double the Bradshaw grade up to 10 g/t Au.

As part of its Phase 1 developments at Bradshaw, Gowest is aiming to ramp up to production of 50,000 oz/y.

Barrick to bid goodbye to Hemlo open pit as Barminco ramps up UG activities

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Barrick Gold says plans to extend the life of the Hemlo gold mine, in Ontario, Canada, by transitioning it to a modernised Tier Two asset with a purely underground operation are well underway as open-pit mining at the mine starts winding down.

The Hemlo open pit has been mined since 1989 and has produced over 2.8 Moz of gold in the process. It was originally used to produce blasted rock for the backfilling of the mine’s underground stopes but, in 2002, a Cat 777 truck fleet and key personnel were seconded from Barrick’s Nevada mines to establish the pit as a separate division.

In 2013, the David Bell mine closed, leaving the open pit and the Williams underground mine as the chief sources of ore for the mill feed. Over the next six years, the open pit ramped up and became the primary source of ore for Hemlo.

With mining at the open pit scheduled to wind down at the end of this month with less than 200,000 t of ore remaining, a transition plan has been put in place to transfer most of the 70 plus open-pit employees to the current underground contractor, Barminco. The open-pit crew has already worked with the contractor in digging a new portal from within the open pit that will open up new mining fronts in the underground mine, creating more flexibility and allowing the underground to ramp up throughput.

Catherine Raw, Chief Operating Officer for North America, said that by repositioning and expanding Hemlo as an underground operation, it would continue delivering benefits to the community, employees and other stakeholders for years to come.

Barrick Hemlo’s General Manager, Adam Foulstone, thanked the open-pit employees for their years of dedication and hard work.

“It’s been a great run and I am honoured to have worked with such a great team,” he said. “The last years of the mine were very challenging but we completed the work with zero lost time injuries, a testament to the commitment and professionalism of our people.”

The mine held a dedication ceremony on October 5 to unveil the new portal sign honouring long-serving employee, Jim Harasym. Harasym is the Open Pit Manager at the Hemlo mine and was instrumental in the success of the project.

Sandvik and Northern College to help train BEV service technicians of the future

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Sandvik and Ontario’s Northern College have entered into a memorandum of understanding (MoU) to, they say, work collaboratively to enhance existing battery technician training modules, and develop a new program to educate service technicians and support the growing requirement for specialised battery-electric vehicle (BEV) technicians in the mining industry.

The Northern College Battery Electric Vehicle Technician training program for service technicians should prepare them for employment in this field.

BEVs are increasing in popularity in the Canadian mining industry due to the improvements they offer in operating environments, maintenance costs, efficiency and productivity, yet specialised BEV technicians are required to support the growing fleet of BEVs in Canada.

“It’s important to be aware of the fact that the technology powering battery-electric vehicles is considerably different than that of diesel machines,” Dr Audrey J Penner, President and CEO of Northern College, said of the new technology.

“Servicing and maintaining these fleets requires a different skillset than what is required for a diesel-powered fleet because BEVs have fewer mechanical components and more electrical components. For that reason, the Canadian mining industry requires a new generation of service technicians who are trained in servicing electrically-powered machinery and Northern College is responding to that call for talent and training.”

Northern College and the Haileybury School of Mines will develop a program with Sandvik and their partners to educate participants in BEV technology. Sandvik will serve as a subject matter expert on the topic of BEVs in a mining application to ensure program graduates are educated in areas relevant for the mining industry.

Peter Corcoran, Vice President Canada, Sandvik Mining and Rock Technology, said: “This program is really a win-win for a cleaner industry while also supporting resource development in the communities close to the mines using BEV technology.

“We are investing in educating this next generation of service specialists because we forecast an increase in demand for technicians in the BEV field as more operations transition to zero-emissions equipment. We also want to invest in the local talent pool as the benefits of hiring locally and developing sustainable capacity in the community cannot be understated. This partnership addresses both of those areas.”

One industry proponent of BEVs in mining is Kirkland Lake Gold, which has deployed many battery-powered units at its Macassa gold mine in Ontario.

“Using BEVs at our Macassa Mine benefits us in a number of ways, including significantly lowering greenhouse gas emissions, improving working conditions and reducing capital requirements for ventilation,” Evan Pelletier, Kirkland Lake Gold’s Vice President of Mining, said.

Pelletier explains that Kirkland Lake Gold was among the first to bring electrification to the mining industry and the company has seen significant improvements in BEV technology in a relatively short timeframe.

Based on Kirkland Lake’s experience, Pelletier believes the participation of both original equipment manufacturer and mining companies in the development of a technician training program will be an important contributor to the program’s success.

“Working with colleges will help Kirkland Lake Gold further develop our technicians in this field,” Pelletier explains. “The program will not only develop new technicians, it will help to establish BEV standards in the industry that will lead the way for future advancements.”

Barminco starts round one of portal development at Barrick Hemlo

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Barminco says it has mobilised to start the development of the new underground portal at Barrick Gold’s Hemlo gold mine in Ontario, Canada.

The installation of the portal ground support has been completed and a new Sandvik DD421 jumbo is being used to drill the first round of what will be the entrance to the new decline ramp, Barminco said.

It added: “Barminco is proud to be introducing high speed development capabilities at Hemlo, adding value to the already well-established mine.”

Earlier this year, Barminco was issued a letter of intent to provide underground contract mining services at Hemlo following Barrick’s decision to phase out open-pit mining and move to an underground contract mining model at the operation.

Perenti, Barminco’s parent company, said back then that its underground contract mining division would “bring industry-leading technology and productivity to Hemlo in support of Barrick’s goal to modernise and improve the performance of the mine and establish it as a Tier Two asset within its group”.

Cambrian college to offer battery-electric vehicle training course

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Cambrian College, in Greater Sudbury, Ontario, is trying to equip miners with the relevant skills to facilitate the sector’s electrification transition by offering a new Corporate Training course focused on battery-electric vehicles (BEVs).

The BEV training course is being delivered by Cambrian’s Corporate Training division in partnership with the College’s Centre for Smart Mining – part of Cambrian R&D, the college’s applied research division. The course is designed specifically for heavy-duty equipment technicians employed in the mining sector.

The use of industrial BEVs is increasing in modern mining and the industry needs skilled workers to implement and maintain this new technology, the college said.

“Cambrian’s latest Corporate Training course will ensure those employees already working in mining can obtain that expertise and qualifications in Greater Sudbury,” it said.

Stephen Gravel, Manager of Cambrian R&D’s Centre for Smart Mining, said: “An often overlooked, yet critical component in the adoption of new techniques and technologies in the mining sector is ensuring the workforce is adequately trained.

“A major barrier to getting new technologies like BEVs into mines is the lack of familiarity and comfort among heavy-duty equipment technicians in the field. The Centre for Smart Mining is looking to address this problem through targeted technology upskilling in a number of important high-tech areas; the first of which being BEVs.”

The course begins online shortly and will be led by a qualified instructor, Cambrian College said. On-campus in-person learning opportunities are expected to be available in the future as activities fully resume on the college’s campus. Those looking to upgrade their skillset will gain much needed industry knowledge, Cambrian College says, through four modules:

  • Fundamentals of Battery Electric Vehicle Safety;
  • Introduction to Battery Electric Mobile Equipment;
  • Introduction to Battery Electric Vehicle Communication and Troubleshooting; and
  • Practical Battery Electric Vehicle Training.

“At Cambrian, we’re committed to keeping up with the latest industry trends and making sure our courses are meeting demands in real time,” Cambrian College’s President, Bill Best, said. “The advancements in mining, especially with innovation and the shift to battery-electric vehicles, is just one area where we are the premier destination for those looking to upgrade their skills to be ready for the jobs that just didn’t exist a few short years ago.”

Vale opens new operations centre for North Atlantic ops

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Vale welcomed a small, socially distanced, team into its North Atlantic hub to commemorate the completion of its North Atlantic Operations Centre in Copper Cliff, Ontario, this week.

The event was also broadcast live to Vale’s North Atlantic employees and featured a virtual tour video, giving participants a glimpse into the innovative new space that will serve as the physical and virtual hub of its North Atlantic operations, Vale said.

Vale’s North Atlantic operations includes the Creighton, Coleman, Copper Cliff, Garson and Thompson mines, in Sudbury.

Vale Canada Limited’s CEO, Mark Travers, addressed attendees noting that, by transforming an existing building, the company had found an innovative way to make better use of an important part of the company’s history.

“Its fresh and open design promotes creativity, collaboration and integration – and supports the need to think and work in a more sustainable way to advance our transformation journey,” Travers said to the in-person and virtual audience.

The local architecture firm behind the project was inspired by a city layout in developing the updated design, with “streets” connecting different work zones or “neighbourhoods” flanked by meeting rooms that act as sound barriers to the open concept workstations within, Vale said. These “streets” help to organise different departments but also serve as a way-finding tool, creating a grid that helps staff and visitors navigate their way through the space. So too does the meeting room identification system that borrows the names of trees and shrubs native to Vale’s North American and Brazilian operating regions.

Flexibility was built into the design from day one and provided an unanticipated benefit as the COVID-19 pandemic has required Vale to reimagine and reconfigure the space to address new safety protocols, it said.

Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Operations, spoke to the group about the careful safety considerations the company is taking as it works towards the opening of the new building for eventual in-person collaboration.

“We are taking a staged approach so that effective pandemic processes and controls are implemented to ensure employee safety and wellbeing,” Otranto said.

Generation Mining readies more ‘aggressive’ Marathon PGM-copper project approach

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Generation Mining says it is making headway on the development plan for its Marathon palladium-copper project, in north-western Ontario, Canada, having contracted all the major engineering companies for the study.

The study is expected to take around seven to eight months to conclude, with completion expected in early 2021, it said.

G-Mining Services will carry out the mine plan and mineral reserves, infrastructure scope of work and integration of the costs and economic analysis; Ausenco Engineering Canada is progressing the process facility layout and design based on the metallurgical testing that is currently underway at SGS-Lakefield; and Knight-Piesold is to design the tailings facility and open-pit geotechnical engineering. In support of the feasibility study and environment impact interactions, Stantec and Ecometrix P&E Mining Consultants will be responsible for the mineral resource estimate, the company said.

Jamie Levy, President and Chief Executive Officer of Generation Mining, said: “It is a very impressive team that we have assembled for the feasibility study. I am confident that these firms will optimise the value of the Marathon-PGM property and will continue to de-risk the project.

“Our goal is to maximise the net present value of the project while designing an operation which will minimise environmental impacts and provide economic benefits to the local communities. We see the Marathon project being near shovel-ready and well timed to the buoyant palladium market.”

Generation Mining acquired a 51% interest in the Marathon property from Sibanye Stillwater on July 10, 2019, and can increase its interest to 80% by spending $10 million over a period of four years. As of the March quarter, around $4 million of the $10 million has already been spent.

A preliminary economic assessment on Marathon published earlier this year outlined a 14,000 t/d open-pit operation growing to 22,000 t/d after expansion, with an average palladium output of 107,000 oz/y for 14 years. The open-pit mining would be owner-operated using conventional diesel equipment consisting of 254 mm diameter rotary drills on 10 m high benches, 29 cu.m bucket hydraulic excavators, and 221 t off-highway haul trucks and auxiliary equipment, according to the study.

On the feasibility study, Generation Mining said all groups were “integrating well” through good interactions and frequent communications.

“G-Mining will progress pit designs and sequencing that will prioritise the high-grade palladium values for initial production to bring increased palladium production into the first half of the mine life, and increase copper production in the mine’s later years,” the company said.

“Ausenco’s plant design is expected to update the quality work that was done in prior studies with newer technology, which, in turn, will improve concentrator operability and lower capital costs, while increasing palladium recovery without sacrificing copper recovery. This flowsheet is expected to be validated with the current metallurgical test work that is progressing at SGS-Lakefield.

“Knight-Piesold will be updating the past tailings dam designs to reflect current best available practices and technologies.”

Stantec and Ecometrix are involved in the feasibility study team to help facilitate the update of the Environment Impact Study report addendum and to help inform the critical path regulatory approvals process, the company added.

At this early stage, the work on the feasibility study will consider an optimised processing and mine production rate that is “more aggressive” than outlined in the PEA, the company said, contemplating starting at 5 Mt/y and expanding to 8 Mt/y after five years.

Alamos’ Island III goes on sinking mission for more gold

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Having weighed five scenarios for a Phase III expansion at the Island gold mine, in Ontario, Canada, Alamos Gold is proceeding with a plan to carry out a blind sink down to the 1,373 m level, build a paste plant, and expand the mill and tailings facility at the operation to boost production.

The company is no stranger to shaft sinking; its Young-Davidson mine, also in Ontario, has just had its Northgate shaft commissioned after Cementation used large diameter raiseboring technology to establish it as part of an engineer, procure and construct contract.

Yet, the shaft sinking route was not a foregone conclusion, with three of the five scenarios involving ramp haulage.

The Phase III Expansion Study, carried out with assistance from Hatch, Cementation, Airfinders, Golder, Halyard, SRK and DRC Estimating, looked at these scenarios using Deswik planning software to find further growth at the mine.

Having added 900,000 oz of the yellow metal to its reserve base already this year and hit a rate of 1,240 t/d in the March quarter (ahead of the nameplate 1,200 t/d rate), the company was keen to leverage these ounces at the same time as come up with a sound economic proposition for expanding and extending the mine.

Of the five scenarios, three involved ramp haulage (two retaining the 1,200 t/d capacity and one at 1,600 t/d) and two would see a shaft installed (at 1,600 t/d or 2,000 t/d). All apart from one option included the addition of a paste plant.

The company settled on expanding throughput to 2,000 t/d, from 1,200 t/d, through a shaft and paste plant build, explaining that this option presented the best economics.

As a result, the Phase III expansion will involve an initial blind sink down to 1,373 m, that new paste plant, and an expansion of the mill and tailings facility.

These investments, which would see the mine life double to 16 years from the eight years currently outlined in the reserve base, are covered in the total capital of $1.07 billion, which the company says is offset by the lower sustaining capital and operating costs of this scenario versus all that were evaluated.

Following the completion of the shaft construction in 2025, it is envisaged the operation will transition from trucking ore and waste to skipping ore and waste to surface through the new shaft infrastructure.

Output would rise to 236,000 oz/y starting in 2025, 72% higher than the mid-point of previously issued guidance for the mine in 2020, while mine-site all-in sustaining costs would fall to $534/oz, a 30% drop on the 2020 guidance.

Combined, this made for an after-tax net present value (NPV) of $1.02 billion at a 5% discount rate, and an after-tax internal rate of return of 17%, using a base case gold price assumption of $1,450/oz.

“These are also the lowest costs of any scenario evaluated reflecting the significant productivity improvements, decreased ventilation requirements, increased automation, and higher throughput rates associated with the shaft,” the company said.

While the company did not spell out what automation elements would be included in this expansion, on a webcast discussing the results, Chris Bostwick, VP, Technical Services, included details of an LTE network underground installation at Island as one continuous improvement project for 2020.

An Alamos Gold spokesperson later confirmed to IM that the LTE network was in the process of being installed with the project expected to be completed by the end of this year. “The network is primarily being installed for voice communications and real-time data gathering,” the spokesperson said.

Asked whether it was a pre-cursor to the use of autonomous haulage at the operation ahead of the expansion, the spokesperson replied: “We don’t have any firm plans for increased automation of our mobile equipment currently, but are actively monitoring the progress with the technology and this remains a potential down the road.”

With regards to automation within the expanded mine scenario, the only aspect currently being considered is the automation or tele-remote operation of the rock breakers and skipping, the spokesperson confirmed.

“Some of the trucking requirements could be automated down the road as noted above,” the spokesperson said. “The shaft expansion will make the entire operation more automated and productive.”

John A McCluskey, President and Chief Executive Officer of Alamos Gold, reviewing the study, said Island Gold had proven to be a “tremendous acquisition” for Alamos.

“We acquired Island Gold in 2017 at a cost of approximately $600 million when it had 1.8 Moz of mineral reserves and resources,” he said. “This high-grade deposit has more than doubled to 3.7 Moz and we expect further growth yet.”

While the planned expansion would make Island more profitable through increased production and lower costs, it would also “best position the operation to benefit from additional exploration success”, he said.

Long-hole open stoping will continue to be utilised as the primary mining method at Island, however, increased development and key infrastructure changes including the addition of a paste plant and shaft will allow for mining rates to increase to 2,000 t/d, it said.

The addition of paste fill underground will allow for faster stope cycling, thereby supporting higher mining rates and providing increased geotechnical stability, according to Alamos. It will also increase mining recovery, resulting in an additional 100,000 oz of gold recovered over the life of mine (from existing pillars). This represented an in-situ value of $145 million at a gold price of $1,450/oz.

The paste plant will have a capacity of 2,000 t/d and capital cost of $34 million with the plant expected to be completed in the December quarter of 2023, Alamos said.

When it comes to the shaft options, which Alamos Gold evaluated with the help of Cementation, it was decided that a conventional blind sink methodology would be used to provide “improved schedule reliability with minimal impact on existing operations”.

A combined raisebore from the 840 m level, and blind sink option below the 840 m level was evaluated, however, this option would significantly impact existing operations, Alamos said. “The cuttings from the raisebore in the upper mine, and waste generated from the conventional sink in the lower mine, would displace underground throughput capacity and significantly reduce mining rates below 1,200 t/d by as much as 400 t/d over the next several years,” it said.

The settled-on option will see a 5 m diameter concrete-lined shaft constructed with a steel head frame. The shaft will house two 12 t skips in dedicated compartments for ore and waste movement and a double-deck service cage for the transport of personnel and materials.

The company estimated an overall shaft sinking rate of around 9.6 ft (2.9 m)/d, which included a ramp-up period.

While the shaft will be sunk to an initial depth of 1,373 m, the hoisting plant will be designed for an ultimate depth of 2,000 m providing flexibility to accommodate future exploration success, the company said.

At the initial depth of 1,373 m, the shaft has a capacity of 4,500 t/d, more than sufficient to accommodate the peak mining rates of 3,300 t/d (ore and waste), according to Alamos.

The underground ore and waste handling and loading pocket will be a conventional configuration like that of Young-Davidson, the company said.

Once skipped to surface, ore will be trucked to the expanded mill circuit.

On top of the payback being sweeter for the shaft expansion, ventilation requirements are also lower than under the ramp scenarios given the significantly smaller mobile fleet, Alamos said. This allows the shaft to serve as the only new required fresh air source.

The total construction capital for the shaft installation including all supporting infrastructure is anticipated to be $232 million.

Further, 56% of tailings will be placed underground reducing tailings dam raise requirements, a capital saving of $13 million, according to Alamos.

The mining rate ramp-up to 2,000 t/d after the shaft expansion will be supported by a total of five 42 t haul trucks. This compares with a peak of 18 haul trucks required to sustain ramp haulage at 1,200 t/d and 25 haul trucks for ramp haulage at 1,600 t/d, the company said.

“This contributes to the lower ventilation requirements with the shaft expansion, and significantly lower diesel usage and greenhouse gas emissions,” the company said.

The mill expansion will include upgrading the crushing circuit, adding a second parallel ball mill, and a new elution and carbon in pulp (CIP) circuit with carbon screens. The total cost of the mill expansion is expected to be around $40 million.

The flowsheet of the new circuit includes upgrades and expansions for the following major process operations:

  • New vibratory grizzly feeder;
  • New primary crusher;
  • New fine ore stockpile and conveyors;
  • Additional primary ball mill;
  • Primary ball mill screen for both ball mill circuits;
  • Existing thickener converted to high rate thickener;
  • Two additional leach tanks;
  • New elution plant and kiln (ADR); and
  • Tailing pumps.

Mill recoveries are expected to average 96.5% over the life of mine, consistent with the historical performance of the existing operation, it said.

To accommodate the increased electricity requirements with the larger mill and shaft, the power line to site will be upgraded at a cost of $14 million, it added.

Despite the backfill options with the envisaged paste plant, an expansion of the existing tailings impoundment area is underway and required under all scenarios to accommodate the growth in the deposit over the last several years, Alamos said.

“With two planned future raises beyond 2020 and the addition of the paste plant, the tailings facility has sufficient capacity to accommodate existing mineral reserves and resources,” it added.

Monarch Gold ties up ore transport options with Ontario Northland Railway pact

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Monarch Gold has entered into a memorandum of understanding (MoU) with Ontario Northland Railway for the transportation of ore from its Wasamac gold project to the Kidd concentrator in Timmins, Ontario, pursuant to a separate MoU with Glencore Canada.

The first phase of the agreement consists of an economic study on the infrastructure for the transportation of ore by train from Wasamac to Kidd, to be completed no later than December 31, 2020, Monarch said.

“This is another important step in the development of our Wasamac gold project with respect to the custom milling option, the objective of which will be to negotiate a favourable rate for the transportation of Wasamac ore to the Kidd concentrator,” Jean-Marc Lacoste, President and Chief Executive Officer of Monarch, said. “Ontario Northland has the necessary capacity, a solid reputation and has been providing this transportation service to mining companies for more than a century.

“It is important to remember that if we choose the custom milling option, we will be able to significantly reduce the construction costs of the Wasamac mine compared to the initial option of building the mill and tailings facility directly on site, in addition to reducing the impact on the environment and neighbouring communities. The other important aspect will be to ensure that our operating costs are as low as possible, including transportation costs, which will allow us to increase the profitability of the project.”

Last month, Monarch said it had retained Ausenco Engineering Canada to conduct an upgrading study on the Glencore-owned Kidd concentrator in connection with its potential use to treat ore mined from its Wasamac gold project. The study constitutes “Phase 1” of the MoU recently signed with Glencore Canada, Monarch said.

Located in Timmins, Ontario, the Kidd concentrator was built in 1966 with numerous upgrades over the years. It currently processes metal ore to produce copper and zinc concentrates, with the facility having a design rated capacity of 12,500 t/d. The site has incoming and outgoing rail service via Ontario Northland.

In addition to northern Ontario, Ontario Northland serves northern Quebec to Rouyn-Noranda, where the railway connects and interchanges traffic with CN, which then serves other major Abitibi region mills, including Canadian Malartic (Yamana Gold/Agnico Eagle), Westwood (IAMGold) and Lamaque (Eldorado Gold), as well as Monarch’s Camflo and Beacon mills.

The December 2018 feasibility study on Wasamac forecast average annual production of 142,000 oz of gold for 11 years at a cash cost of $550/oz.