Tag Archives: palladium

Vimy senses Angulari gold-uranium project boost following TOMRA XRT trial

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Ore sorting test work from TOMRA Sorting Australia has Vimy Resources thinking about higher grades, lower capital and operating costs, and the production of precious metals at its majority-owned Angulari uranium-gold deposit in Australia’s Northern Territory.

The ASX-listed company, which has defined an inferred mineral resource estimate of 26 Mlbs of U3O8 (0.91 Mt at 1.3% U3O8) at Angulari, already thought the deposit, part of the Alligator River project, had potential to fit into the first quartile of the global uranium cost curve, but now it has eyes on further improving its cost position.

An ore sorting proof of concept trial conducted by TOMRA using its COM X-ray Transmission Tertiary system factored in a 41.5 kg sample that was obtained from mineralised material collected from drill core that Cameco Australia drilled in 2011 and 2016.

The trial on this material saw the uranium concentrate grade increase from 1.2% to 2% U3O8 (70% increase) with high U3O8 recovery. Alongside this, the sample gold concentrate grade increased from 0.7 g/t to 1.1 g/t (47% increase). On the latter gold work, Vimy said: “This warrants further investigation given no gold processing or recovery test work has been undertaken to date.”

The test work also showed that gold mineralisation is spatially coincident with the uranium mineral resource within the sample.

Some 13.5 kg of this 41.5 kg sample was not sorted due to the high uranium grade, which provides additional upside in future trials, Vimy noted. Other potential by-products were also identified, including platinum and palladium.

All of this bodes well for cutting the capital and operating costs that Vimy was unable to disclose to investors as part of its December 2018 scoping study on the project.

A higher feed grade from ore sorting would likely result in lower operating costs, the company said.

Meanwhile, smaller hydrometallurgical plant circuits would likely be required for the same level of production. Coupled with a potential reduction in acid-consuming phases in the concentrate, ore sorting has the potential to lower reagents (and water) usage and costs on a per lb U3O8 produced basis, noting that expected reagent use is already low, Vimy said.

“A smaller plant would result in a lower overall disturbance footprint with commensurate approvals and capital cost benefits,” it added.

Mike Young, CEO of Vimy, said, “The results of the TOMRA ore sorting trial at the Alligator River project’s Angularli deposit have exceeded our expectations. The high-grade nature of the deposit, coupled with the ore sorting outcomes, enhances the prospect of Angularli’s potential future development as a low-cost uranium operation.

“Our next step is to progress the upgrade trials and investigate the potential for the recovery of high value by-products associated with the uranium mineralisation at the Angularli deposit.”

The Angularli deposit is located in the King River-Wellington Range tenement group which is managed in a joint venture (Vimy 79%: Rio Tinto 21%) with Rio Tinto Exploration Pty Ltd, a wholly owned subsidiary of Rio Tinto Ltd.

Ivanhoe advances Platreef development studies after Moolmans completes sinking

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Ivanhoe Mines has announced another milestone at the Platreef platinum group metals project in South Africa, with construction complete at the 996-m level station of Shaft 1.

The achievement, completed well ahead of the contractual schedule, according to Ivanhoe, positions the company to equip Platreef’s initial production shaft, if it chooses to proceed with phased development of the mine on the Northern Limb of South Africa’s Bushveld Complex.

Sinking was carried out by contractor Moolmans, with the project remaining ‘Fall-of-Ground’ incident free since shaft sinking operations began in July 2016, the company said. On top of this, in June 2020, Moolmans and the Platreef team achieved South Africa shaft sinking industry leader status in terms of safety performance, according to Ivanhoe, which owns 64% of the project through Ivanplats.

Ivanhoe’s Co-Chairmen, Robert Friedland and Yufeng “Miles” Sun, said: “Given the flurry of recent transactions in precious metals markets, we are actively exploring a number of options that can help us unlock Platreef’s extraordinary value for the benefit of all Ivanhoe stakeholders.

“After all, Platreef is among this planet’s largest precious metals deposits.”

Platreef now has a completed shaft within a few hundred metres of the initial high-grade mining zone, according to Friedland and Sun.

“We have a mining licence, we have water and we have a team of highly-skilled employees,” they said. “The deposit has enormous quantities of palladium, platinum, rhodium, nickel and copper; and it has more ounces of gold than many leading gold mines.”

They concluded: “Given the current precious metals environment, I am confident that the pending studies will showcase the exceptional economics that one would expect from such a thick, high-grade and flat-lying deposit.”

Ivanhoe is updating the Platreef project’s 2017 definitive feasibility study (DFS) to account for development schedule advancement since 2017 when the DFS was completed, as well as updated costs and refreshed metal prices and foreign exchange assumptions.

The DFS for Platreef covered the first phase of production at an initial mining rate of 4 Mt/y, estimating Platreef’s initial average annual production rate would be 476,000 oz of platinum, palladium, rhodium and gold, plus 21 MIb (9,525 t) of nickel and 13 MIb (5,897 t) of copper.

Concurrently, Ivanhoe is finalising a preliminary economic assessment for the phased development production plan for Platreef. The plan targets significantly lower initial capital to accelerate first production by using Shaft 1 as the mine’s initial production shaft, followed by expansions to the production rate as outlined in the 2017 DFS, Ivanhoe said.

“The re-evaluation is being done in parallel with the ongoing mine development work to access the thick, high-grade, flat-lying Flatreef deposit that was discovered in 2010 and outlined in the Platreef 2017 feasibility study,” it said.

The new auxiliary winder for the 7.25 m diameter Shaft 1, which is scheduled to be delivered to Platreef later this year, will be used to assist in equipping the shaft; and thereafter for logistics, shaft examination and auxiliary functions. The auxiliary winder will provide a second means of ingress and egress from the shaft after removal of the stage winder.

Shaft 1 is around 350 m away from a high-grade area of the Flatreef orebody, planned for bulk-scale, mechanised mining.

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.

Ivanhoe looks to align Platreef mine advance with palladium, rhodium price run

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Ivanhoe Mines says it is fast-tracking a feasibility study on a smaller-scale, early-stage development plan at its Platreef palladium, platinum, nickel, copper, gold and rhodium project, in the Bushveld Complex of South Africa.

The move comes as spot prices of palladium and rhodium – two key metals contained in the Platreef ore – have soared in recent months. This has propelled Platreef’s ‘metals-price basket’ to a new, all-time high, Ivanhoe said.

Palladium prices surpassed a record $2,100/oz recently as stricter air-quality rules continue to boost demand for the metal used in vehicle pollution-control devices, while the price of rhodium has surged 32% already this month, attaining a price of more than $8,200/oz – the highest price since it hit more than $10,000/oz in 2008.

Ivanhoe’s plan would accelerate the mine’s first production by using Shaft 1 as the mine’s initial production shaft, followed by expansions to the production rate outlined in the project’s 2017 definitive feasibility study (DFS), it said. Ivanhoe’s smaller-scale mine design would also be optimised to target the highest-grade areas of the mineral resource in close vicinity to Shaft 1.

Platreef’s Shaft 1 currently is at a depth of 957 m below surface. It is scheduled to be completed to a final depth of around 1,000 m by the end of July. Work on Shaft 1’s 950-m-level station (pictured) – the shaft’s third and final station – is expected to be completed in March 2020.

Shaft 1 was previously expected to become the primary ventilation shaft during the project’s initial 4 Mt/y production case, with Shaft 2, around 100 m northeast of Shaft 1, providing primary access to the mining zones.

Platreef has an estimated 26.8 Moz of palladium in indicated resources, and an additional 43 Moz in inferred resources. This is in addition to an estimated 1.8 Moz of rhodium in indicated resources and an additional 3.1 Moz in inferred resources. Both of these are at a 2 g/t 3PE+gold cutoff.

In July 2017, Ivanhoe, which indirectly owns 64% of the Platreef project through its subsidiary, Ivanplats, issued an independent DFS for Platreef covering the first phase of production at an initial mining rate of 4 Mt/y. The DFS estimated Platreef’s initial average annual production rate would be 476,000 oz of platinum, palladium, rhodium and gold, plus 21 MIb (9,525 t) of nickel and 13 MIb (5,897 t) of copper.

Anglo Platinum and Platinum Group Metals look downstream with Lion Battery Technologies JV

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Anglo American Platinum and Platinum Group Metals Ltd have launched a new venture, Lion Battery Technologies Inc, to, they say, accelerate the development of next-generation battery technology using platinum and palladium.

This is all geared towards creating additional demand for platinum and palladium in the battery technology space.

The new Lion venture has entered into an agreement with Florida International University to further advance a research program that uses platinum and palladium to unlock the potential of lithium air and lithium sulphur battery chemistries to increase their discharge capacities and cyclability, the companies said. As part of this, Lion will have exclusive rights to all intellectual property developed and will lead all commercialisation efforts. “Lion is also currently reviewing several additional and complementary opportunities focused on developing next-generation battery technology using platinum and palladium.”

Thanks to considerably higher energy density, lithium oxygen and lithium sulphur batteries can perform better, by orders of magnitude, than the best-in-class lithium-ion batteries currently on the market or under development, according to the two companies. “This new generation of lightweight, powerful batteries has the potential to grow to scale on the back of the attractiveness of battery electric vehicles and the use of lithium batteries in other applications beyond mobility.”

Benny Oeyen, Executive Head of Market Development at Anglo American Platinum, said: “This exciting early-stage technology aligns with our broader strategy to bring new technologies to market that will help us secure future demand for the platinum group metals we mine and pave the way to a more sustainable energy future. Our commitment to market development is underscored by our relationship with AP Ventures, of which we are a cornerstone investor and who is a potential investor in this technology as it matures.”

Michael Jones, CEO of Platinum Group Metals Ltd, commented: “Developing new applications for platinum group metals is key to ensuring long-term sustainable demand, demand which will be important to the future success of our large-scale Waterberg palladium and platinum mining project, in South Africa.”

Pre-sink of Shaft 2 at Ivanhoe’s Platreef underground project months away

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In a review of exploration and development activities in 2018, Ivanhoe Mines has gone into some detail on developments at Shaft 2 at the Platreef PGM-nickel-copper-gold project on the northern limb of South Africa’s Bushveld Complex.

This follows a project update issued just after the Mining Indaba event in February.

Shaft 1, expected to reach its final depth of 982 m below surface in early 2020, will ultimately become the primary ventilation shaft during the project’s initial 4 Mt/y production case, but Shaft 2, around 100 m northeast of Shaft 1, will provide primary access to the mining zones.

Ivanhoe said Shaft 2 will have an internal diameter of 10 m, will be lined with concrete and sunk to a planned, final depth of more than 1,104 m below surface.

It will be equipped with two 40-t rock-hoisting skips capable of hoisting a total of 6 Mt/y of ore – the single largest hoisting capacity at any mine in Africa. The headgear for the permanent hoisting facility was designed by South Africa-based Murray & Roberts Cementation.

Ivanhoe said nine blasts were successfully completed in 2018 enabling the excavation of Shaft 2’s box cut to a depth of approximately 29 m below surface and the construction of the concrete hitch (shaft collar foundation) for the 103-m-tall concrete headgear (preparations pictured here) that will house the shaft’s permanent hoisting facilities and support the shaft collar.

Excavation of the box cut and construction of the hitch foundation is expected to be completed in the June quarter, enabling the beginning of the pre-sink, that will extend 84 m below surface, it said.

In July 2017, Ivanhoe, which indirectly owns 64% of the Platreef project through its subsidiary, Ivanplats, issued an independent, definitive feasibility study (DFS) for Platreef covering the first phase of production at an initial mining rate of 4 Mt/y. The DFS estimated Platreef’s initial, average annual production rate would be 476,000 oz of platinum, palladium, rhodium and gold, plus 21 MIb (9,525 t) of nickel and 13 MIb (5,897 t) of copper.

Eurasia secures Sinosteel EPC finance package for Monchetundra palladium project

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Eurasia Mining says it has signed an engineering, procurement and construction (EPC) contract, with an associated mine finance package, for its Monchetundra PGM-gold-copper-nickel project, in Russia.

The contract with China’s Sinosteel follows ongoing discussions between the two parties, which have been taking place since issue of the mining permit for a circa-2 Moz (two platinum group metals and gold) deposit in November 2018.

Monchetundra has 1.9 Moz of palladium-led reserves and resources with platinum, gold, copper and nickel.

Sinosteel said: “We are delighted that Terskaya Mining Company, controlled by Eurasia Mining plc, has received the final mining permit for the Monchetundra project. We look forward to working with CKE (Central Kola Expedition – a contractor), TGK (Terskaya Gornaya Kompany) and Eurasia, to commence the EPC and develop the mine and plant at this exciting palladium, platinum, copper and nickel project.”

Christian Schaffalitzky, Chairman at Eurasia, said: “We are delighted to advance the Monchetundra project. The details include not only the engineering components, but also the financing and legal documentation. We will be busy over the coming months developing our plans with Sinosteel for the mine’s start up and expected move towards production.

CKE, Eurasia’s long standing working partner at Monchetundra, were recently awarded and have now commenced work on a detailed project report, required to be submitted and approved within one year of the issue of the mining permit. This contract was awarded to CKE by Eurasia’s subsidiary TGK.

Eurasia said: “The report will include an outline of the further geotechnical, hydrogeological, metallurgical and resource and reserve base work required as part of the broader mine development plan. The report is a statutory requirement and is on track to be completed and approved.”

The ground works and other studies detailed within the report will then contribute to a more detailed feasibility study of permanent conditions and a revised reserves statement made on the basis of the existing feasibility study and the reserves report already approved by the state.

“It is Eurasia’s intention to fast track the above and to run them in parallel with further mine studies and programmes as outlined in the EPC contract with Sinosteel,” the company said.

The Sinosteel EPC financing covers 85% (or $149.6 million) of a total contract value of $176 million. A $50 million sub-contract is specified within the contract and is assigned to Eurasia’s 80% subsidiary TGK, or a sub-contractor of its choosing, for engineering and pit development works in advance of mining.

Eurasia and Uralmetmash agree on West Kytlim PGM-gold mining contract

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Eurasia Mining has signed a mining contract for the 2019 season at its West Kytlim platinum, palladium, rhodium, iridium and gold mine in the Ural mountains of Russia.

Kosvinsky Kamen (KK), Eurasia’s subsidiary, and Uralmetmash (formerly Techstroy) have signed a pact that will see the latter carry out mining of platinum group metals and gold at West Kytlim.
Mining at West Kytlim is seasonal as the alluvial process relies heavily on running water. Work normally commences as the snow melts on site in late March or early April and proceeds until November.

The directors of Techstroy, the contractor employed at the West Kytlim mine for the 2018 season which achieved production well in excess of target (a total of 165 kg raw platinum against a targeted 100 kg), registered a new company, Uralmetmash, as a special purpose vehicle to focus on the West Kytlim.

Eurasia said the roles and responsibilities of each of the parties shall remain largely as before, with Uralmetmash responsible for pit development, mining, ore trucking, washing and disintegration, and KK responsible for concentrate upgrade, shipment of mine product and distribution of metal sales revenues.

The London-listed mining company said Uralmetmash intended to move on site immediately to prepare for mining, to include stripping of overburden and stockpiling of ore in preparation for washing, which can commence once the seasonal thaw is underway. The thaw can be expected sometime in April 2019.

The work will continue initially at the Kluchiki area, where work ended on schedule in November.

As part of the deal with Uralmetmash, the platinum revenues will be split on a 65%/35% basis, in favour of the contractor.

In the meantime, the refinery contract between KK and the Urals precious metal refinery has also been renegotiated to include an extra percent payment on the LME platinum prices (now at 98% LME, from 97% in 2018).

Eurasia Mining Executive Chairman, Christian Schaffalitzky, said: “We are pleased to be working again with the team that proved so effective during 2018. They were a very efficient operator last year, with a zero accident record, and financially motivated to develop the asset in a sensible manner.

“Furthermore, we are looking at ways to improve metal recoveries, based on the measured efficiency of the existing process flowsheet. We look forward to updating shareholders on progress and also our longer term development strategy for the West Kytlim reserves and resources before the season commences.”

Eurasia and KK personnel continue to work on an enlarged exploration programme for West Kytlim, to include the recently approved Flanks exploration licence and ensure adequate reserves are available for future mining seasons.

Work on analysis of the previous mining season’s performance has commenced and a sampling programme has been outlined for the tailings of the 2018 season. This information will be inputted to proposed modifications to the current circuit, with the possible addition of a jig to recover finer raw platinum fractions. The addition of a hopper to better control the loading of gravels to the front of the circuit, and achieve a more constant flow of material into the trommel, is also expected to improve recoveries during the 2019 season.

Capital Drilling wins contract at Yepleu nickel-copper-cobalt-palladium project

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Capital Drilling has been awarded a contract with Canada-based Sama Resources at its Yepleu base and platinum group metal deposit in Côte d’Ivoire.

Drilling is anticipated to commence in November with the initial programme being 6,000 m of diamond core drilling, targeting semi-massive and massive polymetallic sulphide targets for nickel-copper-cobalt-palladium between 600 m and 900 m from surface.

The contract is Capital Drilling’s first in the country following its strategic expansion into West Africa where the company now has 31 rigs – a third of its fleet.

“This contract will initially utilise two diamond drill rigs, sourced from the group’s base in Yamoussoukro, which was established in H1 2018 as part of the group’s strategic growth focus into the West African market,” the company said.

Commenting on the contract, Jamie Boyton, Executive Chairman, said: “It is very pleasing to see our increased presence in the high-growth West African region continue to deliver results and we look forward to starting our first contract in Côte d’Ivoire.

“With the increased fleet and new infrastructure in place, we are well positioned to continue to secure additional work in the country in the future.”

Sama said the drilling programme will test high-conductivity targets defined by the Phase 1 Typhoon™ electromagnetic geophysical survey carried out earlier this year.

“It is at the Yepleu area that Sama made the first discovery of nickel-copper sulphide mineralisation at surface in West Africa with material grading up to 1.39% Ni and 2.26% Cu sulphide (tested using a hand held Niton XRF analyser),” the exploration company said.

The Yepleu area is 18 km southwest of Sama’s Samapleu nickel-copper deposit.