Tag Archives: Silver Lake Resources

MMS to carry out load and haul services at Silverlake Mount Monger

In what it says is a significant win, MMS has secured a A$200 million ($130 million) load and haul contract with gold producer Silver Lake Resources, in Western Australia.

The contract marks a significant milestone for both parties, signalling the next stage of expansion in the Silverlake Mount Monger operation, southeast of Kalgoorlie-Boulder, MMS says.

The 49-month contract is scheduled to commence on April 1, 2024, with MMS operating alongside Silver Lake Resources and Dynamic Drill and Blast in the Santa open pit and Flora Dora deposit.

MMS has already commenced mobilising its fleet onto the site, with early works and site establishment in progress, it says. The fleet consists of new and low-hour heavy machinery, including 120-200-t excavators and 100-t dump trucks. As the operation progresses, it will peak at a workforce of 106 employees and 48 heavy machines operating on site.

Redpath puts Australia’s first Sandvik DD212 into operation at Silver Lake’s Rothsay

Redpath Australia says it has taken delivery of the first Sandvik DD212 production drill in Australia, putting it into action at Silver Lake Resources’ Rothsay gold mine in Western Australia.

The DD212 is a single-boom, electro-hydraulic drill for mining development and production and has been highly anticipated in the Australian narrow-vein market, Redpath says.

Redpath Australia’s Plant Manager, Chris Riethmuller, said the contractor specifically needed a rig that could drill in a 2 x 3 m drive and was able to drill within 100 mm of each wall to minimise dilution and increase recovery.

“Sandvik Mining and Rock Solutions stepped up to the challenge to the extent of redesigning the boom configuration to accommodate the request,” he said. “We then challenged them further and requested a 12-rod carousel be fitted to both of the rigs we have ordered. Sandvik had a plan in the pipeline for this carousel but agreed to fast track the project for us.”

The carousel has not yet been fitted to the first machine working at Rothsay due to scheduling requirements but is due to arrive in June, according to Riethmuller, who said the company is looking forward to taking advantage of the increased safety and expected productivity gain this tool will deliver.

In January, Sandvik announced the introduction of the DD212 rig, an upgrade of the Sandvik DD210 development drill rig, which is designed for narrow-vein operations.

Redpath, back in April 2020, announced it had been awarded a contract to carry out underground mining services at Rothsay.

Macmahon expands underground work with Silver Lake Deflector contract

Macmahon Holdings’ underground mining division has been awarded a four-year contract with Silver Lake Resources to perform the mining works at the Deflector gold-copper mine in Western Australia.

A Macmahon subsidiary, GBF, has been providing underground mining services at the Deflector mine since mining commenced in early 2016. Macmahon acquired 100% of GBF in 2019, and this business is now an important part of the company’s strategy to expand in the underground mining services market, it said.

The company also recently had its stay extended at Silver Lake’s Mount Monger gold operations, in Western Australia.

The contract is a full service mining contract and, therefore, incorporates all underground development, ground support and production activities, including the provision of all labour and mobile mining equipment. Anticipated to run until April 2025, the contract is expected to generate around A$220 million ($170 million) in revenue for the company over this period.

Macmahon’s CEO and Managing Director, Michael Finnegan, said: “This new contract is an important milestone in our strategy to expand our underground business, and is a clear demonstration of the benefits we are now realising from the GBF acquisition.

“Importantly, the Deflector mine is a high-grade gold and copper asset in Western Australia, so is an attractive project in the current macro environment. We look forward to continuing to support the development of Deflector, and to achieving further scale in the underground market.”

RCT’s EarthTrack tool to improve efficiency, productivity at Silver Lake’s Mount Monger

Silver Lake Resources has upped the efficiency of its earthmoving fleet at Mount Monger in Western Australia following the implementation of RCT’s EarthTrack® information monitoring tool.

RCT recently commissioned the EarthTrack Payload Management System on Silver Lake Resource’s mixed fleet consisting of five Cat 777F dump trucks, one Hitachi 1200-6 excavator and one Hitachi 1900-6 excavator.

The solution provides Silver Lake’s machine operators with real-time information about payload distribution and optimal load weights at the Mount Monger gold operation in Western Australia’s Goldfields region, RCT says.

Site managers can now closely monitor machine and operator productivity, prevent truck strut damage from over loading, reduce tyre wear and achieve better fuel consumption to significantly reduce overall running costs, according to the company.

The system transmits payload data from the truck being loaded to the loading tool – in this case the excavator – which enables the loader operator to fill the truck trays to the optimal weight.

One of the EarthTrack system’s key features is that it monitors payload distribution in real time and alerts the operator of an uneven distribution, allowing them to take action to avoid strut damage. At the same time, the system’s external LED Payload Display relays the load weight to any personnel in visual range of the display.

RCT Account Manager, Scott Phillips, said the system will maximise efficiency and productivity of Silver Lake’s mining fleet.

“This solution enhances the excavator operator’s ability to load dirt in an effective manner that ensures optimal loading conditions with every bucket,” he said. “Ineffective loading can lead to strut damage and wear and tear to machines which results in costly maintenance downtime to the mining fleet.

“This tool will enable site personnel to make better decisions to ensure smooth and consistent operations while allowing site management to monitor the operation closely.”

GR Engineering set to revamp tailings leaching process at Silver Lake’s Deflector

GR Engineering Services says it has received a letter of intent from a subsidiary of Silver Lake Resources for the award of upgrade works involving the flotation tailings leach process at the Deflector gold-copper operations in Western Australia.

The project is located in the southern Murchison region of Western Australia, 450 km north of Perth and 160 km east of Geraldton.

Silver Lake previously said it planned to upgrade process infrastructure at Deflector to include a carbon-in-pulp circuit to broaden available ore sources and enhance recoveries, providing potential upside to current production levels.

The contract sum is A$23 million ($16 million) and will be undertaken on an engineering, procurement and construction (EPC) basis, the company said, adding that the contract for the works will be finalised next month and GR Engineering will commence early works immediately.

Geoff Jones, GR Engineering Managing Director, said: “This letter of intent award represents GR Engineering’s first major project with Silver Lake. We are looking forward to engaging closely with the Silver Lake team to deliver safe and successful outcomes for the project.”

Dyno Nobel takes aim at underground mine development challenges with EZshot

“Companies traditionally see mine development as a means to an end. You just want to get it done to get to the ore.”

Paul Klaric, Technical Manager at DynoConsult, Dyno Nobel’s specialist consulting division, is right. Mine development is all about metres per day/month. The accuracy of the drill and blast patterns, or the stability of the drives that are created, rarely feature in quarterly updates or investor presentations.

Yet, this short-term thinking – typically related to the need to improve a project’s payback period – is costing the industry millions of dollars of sustaining capital.

Dyno Nobel Vice President, Product and Applications Technology, David Gribble, explains: “There are some applications where you carry out this development and you come back a few years later and look to either rehabilitate or create new drives off of it.”

In underground mines with challenging ground conditions where drilling and blasting practices are lacklustre, this can create safety concerns.

“Companies are trying to mitigate any safety issues by working to remove people through automation and technologies such as wireless initiation – which is great – but we are of the opinion that part of the reason for these technologies is that the drives were damaged in the first place,” Gribble told IM. “If we can create competent drives with minimal damage from the off, then a lot of the issues that happen down the track – which we’re trying to mitigate against – should go away.”

This is where the company’s EZshot® electronic detonator comes into the mine development equation.

Offering users the benefits of accurate electronic timing without the complications that come with wired systems, EZshot has been designed with underground perimeter blasting in mind.

Utilising shock tube for signal transmission which Dyno Nobel has been producing since the 1970s, EZshot comes in a new colour with the same J-hook connection as NONEL, meaning no new training is required.

Factory-programmed delay times can range from 1,000 to 20,000 milliseconds, with long-period delay timing ideal for underground perimeter blasting, according to the company. This is helped by the electronic initiation unit inside the detonator, which eliminates scatter – an inherent property of traditional pyrotechnic systems, to ensure firing occurs at the pre-designated delay time (see video below).

These design elements all help confront the issue of overbreak in perimeter blasting, according to Klaric.

“A good measure of well controlled, smooth blasting is when you see ‘half barrels’ left behind, which are remnants of the holes that were blasted in the rock mass,” he told IM. This is sometimes witnessed in competent, homogeneous rock masses, but rarely spotted in poor, challenging ground where there is faulting, jointing or discontinuities.

“In such ground, there is greater potential for overbreak and damage after perimeter blasting,” Klaric said.

Gas from the explosives can be forced into the rock mass behind the blast design profile, he said, which can become a real hazard and precondition the ground.

Klaric explained: “Your profile might come out as designed, but there could be more damage beyond the perimeter. As you go to install your ground support, there is potentially an area of the drive where the ground support is going to prove ineffective.”

It is these challenging rock conditions where EZshot could provide the most value to miners, according to the company.

In fact, in trials at an underground mine where variable ground conditions and temperatures were observed, a 12% overall reduction (from 22% to 10%) in overbreak was observed with a switch from NONEL LP to EZshot detonators.

Operators witnessed visible half barrels in poor ground where they had never seen them and full profile half barrels in good ground during these trials, Dyno Nobel reported.

The benefits did not end there.

There was a measurable reduction in the volume of material scaled off the walls after using EZShot – thanks to the improved blasting profile – and initial calculations indicated a positive $/m benefit to development mining costs, according to the company.

Drill and blast overbreak reconciliation is another benefit of EZshot, Gribble says.

“When you just use pyrotechnic detonators, you are likely to break past the perimeter and then you have no idea of where you drilled,” he explained. “How do you then improve something you cannot measure?

“In a lot of cases, EZshot will tell you exactly where you drilled and if the perimeter holes were in or out of design. You can then look to improve from there.”

This could have positive knock-on effects for the rest of the development cycle – not just in terms of speed, but also cost.

“If you are starting to improve and get consistency in your blasting and the drives you are delivering, you can start to consider adapting your rock support measures,” Klaric said.

For example, removing six or seven roof bolts per heading due to the improved blasting profile could see costs drop by A$3,000-4,000 ($1,958-2,610) per heading, he explained.

“It’s going to take time, but the potential is there for consistent results throughout the whole mine life cycle and to look at the drilling and blasting procedure at a much more forensic level,” he said.

While these benefits are applicable in all forms of mine development, it is long-life operations that are set to reap the most rewards from a switch to EZshot.

“This could be your block cave, or panel cave type of operations where some of those drives might be in place for 30-50 years,” Klaric said. “If you get development right in these applications, everything else will be right down the line.”

This means the South American copper industry – one that is progressively moving underground as operations mature – could be a potential market for EZShot. There are also a few famous block cave mines in Asia that could reap some serious value out of the product.

For the time being, the company is focused on further trials, which will provide the statistical firepower to get more miners to notice the product’s potential.

In Queensland, it has recently managed to conduct a few trial blasts, despite COVID-19 restrictions.

And, in Western Australia, EZshot has made an appearance at Silver Lake Resources’ Mount Monger gold operations, helping the company with the portal breakthrough at its newest mine, Santa (pictured, left. Photo courtesy of Silver Lake Resources).

It has also trialled and used the product in the US and Canada, according to Dirk Van Soelen, Vice President of Initiating Systems Technology at Incitec Pivot, Dyno Nobel’s parent company.

Even during these testing times where travel is restricted, there is potential for further trials thanks to the product’s ease of use.

Van Soelen said: “Normally when you bring new technology in, you have to support the technology to the hilt.

“There is an element of that in EZshot as you want to get the measurements and feedback from case studies, but the beauty with it is you can send someone a box and they can use it tomorrow in the same way they use their current product.

“It is a seamless technology transition from the user’s perspective.”

Van Soelen concluded: “I think a big part of the appeal of EZShot comes from the fact that you get ease-of-use and repeatability with this product.

“This repeatability, from blast to blast, takes the emphasis off the blasting procedure and provides the opportunity to look at many other potential savings and efficiencies within the other processes.”

Redpath Australia to work on Silver Lake’s Rothsay gold project

Redpath Australia says it has been awarded a contract to carry out underground mining services at Silver Lake Resources’ Rothsay gold project, in Western Australia.

The contract includes portal and decline development, which is due to commence in the September quarter of 2020, according to the company.

Rothsay is within the Warriedar Greenstone gold belt of the Yalgoo Goldfield in the Southern Murchison Region of Western Australia. The current project plan would see mineralised ore extracted from narrow sub-vertical structures, according to Redpath.

“Rothsay has a rich mining history dating back to the discovery of gold in 1894 and including several phases of mining, most recently by Metana Minerals in the early 1990s,” it said.

Redpath Managing Director, Gavin Ramage, said: “We are looking forward to working with the Silver Lake Resources team in increasing value for their shareholders through safe and efficient delivery of underground mining services.”

In its March quarter results, Silver Lake Resources said pre-development activities had continued at Rothsay, including the commencement of the tendering process for key construction and operational contracts.

It said it expected Rothsay ore to form part of the Deflector mine feed from the September quarter of 2022, “in parallel with the Deflector plant upgrade”.

When the company announced plans to acquire Egan Street Resources – thereby adding Rothsay to its books – last year, it said Rothsay would bring an additional 454,000 oz of gold JORC resources and 200,000 oz of gold reserves to its portfolio.

It also said the addition of Rothsay provided it with a near-term development opportunity to introduce a new high-grade ore source to an upgraded Deflector processing facility.

The Deflector gold-copper mine is around 85 km from Rothsay, and produced first gold in May 2016.

A shallow narrow vein, high-grade gold and copper underground mine, Deflector also has a fit-for-purpose processing facility to enable recovery of gold from a gravity circuit, prior to the production of a copper-gold concentrate via flotation.

Macmahon confirms extended stay at Silver Lake’s Mount Monger ops

Macmahon Holdings says its GBF underground mining services business has now finalised and signed contracts with Silver Lake Resources for additional work at the miner’s Mount Monger gold operations, in Western Australia.

The contractor announced back in February that a conditional letter of intent had been received by GBF, which Macmahon acquired in 2019.

Macmahon said: “These contracts will extend GBF’s tenure at Mount Monger to March 2023, and will add approximately A$200 million ($121 million) to its order book.”

GBF has been operating at Mount Monger since 2014, providing mining services to the Daisy Complex, Cock-eyed Bob and Maxwells mines, which form part of this operation.

The new contract sees GBF add the development of Silver Lake’s new Santa mine, which has an underground reserve of 257,000 t at 3.5 g/t Au for 29,000 oz of gold, to the remit. The first firing of the portal at Santa (pictured here) took place on March 1, according to the miner.

Macmahon’s GBF wins contract extension at Silver Lake’s Mount Monger ops

Macmahon Holdings’ acquisition of underground contracting business, GBF Group, is already paying off, with GBF receiving a conditional letter of intent from Silver Lake Resources for further work at the Mount Monger gold operations in Kalgoorlie, Western Australia.

GBF has been operating at Mount Monger since 2014 and currently provides mining services to the Daisy Complex, Cock-eyed Bob and Maxwells mines, which form part of this operation, expected to produce 120,000-130,000 oz of gold-equivalent in Silver Lake’s 2020 financial year.

Under the new letter of intent, GBF’s tenure at these sites will be extended for three years from March 1, 2020, and GBF will also develop Silver Lake’s new Santa mine, due to commence next month.

GBF estimates the value of the new work with Silver Lake will add around A$200 million ($134 million) to its order book. The two companies will now negotiate the formal mining services agreement, with finalisation expected in March, Macmahon said.

Macmahon CEO and MD, Michael Finnegan, said: “The new work is an important milestone in our strategy to further expand in the underground market, and demonstrates the value in our GBF acquisition. We are looking forward to working closely with Silver Lake on this project and building on our relationship with this key client.”