Tag Archives: Silver

Hudbay’s Rosemont copper project moves forward with 404 Water Permit

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The US Army Corps of Engineers has issued a Section 404 Water Permit for Hudbay Minerals’ Rosemont copper project in the US, the mining company says.

Rosemont has already received the Final Record of Decision from the US Forest Service (USFS), a process that involved 17 co-operating agencies at various levels of government, 16 hearings, over 1,000 studies, and 245 days of public comment resulting in more than 43,000 comments.

The company said: “Now that the 404 permit has been issued, Hudbay expects to receive Rosemont’s Mine Plan of Operations from the USFS shortly and looks forward to moving the project into development.”

Rosemont, around 48 km southeast of Tucson, Arizona, is envisaged as an open-pit mine producing copper, molybdenum and silver. It is expected to have an annual average life of mine copper production of 112,000 tons (101,605 t).

The Rosemont site will include a processing plant and associated facilities, transmission lines for power and water, the pit, and waste rock and dry-stack tailings storage facilities.

“Best available demonstrated control technologies will be the hallmark of Rosemont,” Hudbay said. “These technologies will contribute to maximising production while minimising environmental impact. At Rosemont, this will include the use of dry-stack tailings – a technology that significantly reduces water use and improves reclamation – along with leading-edge lighting designs to maintain dark skies, solar energy as a source of power, dust collectors with cartridge filters and trucks with Tier 4 engines to ensure compliance with air quality standards.”

Alan Hair, Hudbay’s President and CEO, said: “The receipt of Rosemont’s 404 Water Permit is a major milestone in our efforts to build a modern mine that will fulfil the requirements of its permits, create jobs and provide benefits for all of our stakeholders.

“We appreciate the diligence that the Army Corps has put into its consideration of Rosemont’s permit application, and look forward to advancing Rosemont into construction.”

Hudbay said it would continue to execute its plan regarding the Rosemont project and provide updates as developments warrant.

Bluestone releases Cerro Blanco feasibility study, weighs up ore sorting

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The feasibility study on Bluestone Resources Cerro Blanco gold asset in Guatemala has indicated the project has, at least, an eight-year mine life ahead of it.

The study, completed by a consortium of independent consultants led by JDS Energy & Mining, shows average output of 113,000 oz/y at an all-in sustaining cost of $579/oz and a capital cost of $196 million (including contingency).

Using a base case of $1,250/oz gold and $18/oz silver, the underground project is projected to generate a post-tax net present value (5% discount) of $241 million.

The deposit is expected to be accessed by the existing 3.2 km of underground development. The current decline will serve as the primary access to the mine for personnel, materials, and haulage of mineralised material to the plant site, according to Bluestone, with annual ore production of up to 460,000 t planned from a combination of long-hole stoping and cut and fill mining.

While the 1,250 t/d operation looks profitable at today’s commodity prices, the company has already identified several potential enhancements that could increase its value, which will be factored into a revised feasibility study later this year.

Darren Klinck, President and CEO, said: “The feasibility study outlines a robust development-ready, underground gold mine with a modest capital expenditure demonstrating superior economics. The mine plan supports the original conviction that the project can be developed into a small footprint, low impact operation that will provide significant opportunities for local stakeholders and generate attractive returns for investors.

“Furthermore, over the next six months as we optimise the project and work to establish adequate project financing, we will see significant opportunity to continue with our objective to upgrade inferred resource ounces and then update the mine plan to incorporate potential meaningful mine life extension, further enhancing project economics.”

In addition to the inferred resource upgrades and potential mine life extensions the company is evaluating over the next six months, there is a possibility of including ore sorting technology in the flowsheet, Bluestone said.

“Preliminary test work in evaluating the potential of using ore sorting technologies was very successful and highlighted an opportunity as a cost-effective method to help reduce potential dilution and enhance the production profile by allowing new areas of the orebody to be economically mined,” the company said.

Bluestone acquired the Cerro Blanco project, which has an indicated resource base of 1.24 Moz of gold and 4.5 Moz of silver at grades of 10.2 g/t Au and 36.5 g/t Ag, respectively, from Goldcorp in 2017. Prior to Bluestone’s acquisition, former owners of Cerro Blanco had invested around $230 million into the project.

NQ Minerals in for ‘transformational year’ after completing Hellyer commissioning

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London-listed NQ Minerals has completed commissioning of the Hellyer processing plant, in Tasmania, Australia, with production during the December quarter reaching 3,991 t of lead, 1,537 t of zinc, and 4,291 t of pyrite.

This output realised approximately £3.2 million ($4.1 million) in sales, according to NQ Minerals.

“The company is now consistently producing all three concentrates with sales occurring on a weekly basis,” NQ Minerals said.

Held within four separate areas, the Hellyer tailings total a JORC-compliant resource of 9.5 Mt, hosting gold at 2.61 g/t Au for 796,000 oz, silver at 104 g/t Ag for 32 Moz Ag, lead at 3.03% Pb for 287,800 t and zinc at 2.5% Zn for 237,900 t. In addition to these tailings, the Hellyer mine assets include a large pre-existing mill facility and full supporting infrastructure, including a direct rail line to port.

NQ Minerals previously agreed two separate offtake agreements with Traxys for Hellyer’s products, where the trading company will receive all of the precious metals and lead and zinc produced over the first five years.

Brian Stockbridge, Chairman of NQ Minerals, said: “With commissioning substantially complete, NQ is now a producer. Having completed the acquisition and refurbishment of Hellyer over the prior two years, the culmination of management’s efforts will make 2019 a transformational year for the company. With the change in status to a producer, we believe there is substantial potential to unlock shareholder value.”

Filo del Sol copper-gold-silver blueprint includes autonomous haul truck fleet

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Filo Mining has released the results of a prefeasibility study, carried out by Ausenco, on its Filo del Sol copper-gold-silver project on the borders of Chile and Argentina.

The PFS envisages average annual production of approximately 67,000 t of copper, 159,000 oz of gold, and 8.65 Moz of silver at a C1 cost of $1.23/lb ($2,712/t) copper-equivalent.

It also contemplates the use of an autonomous haul truck fleet, which allows the company to take advantage of the technology’s proven productivity improvements and operating cost savings, Filo Mining said.

Filo Mining is the second development-focused company in the past few months to make plans to incorporate autonomous haulage from the off. In November, NGEx Resources said it assumed its Josemaría project in Chile would use the latest in autonomous haul truck technologies.

The Filo del Sol study contemplates open-pit mining, with conventional drilling, blasting and loading performed on 12 m benches and is based off an initial probable reserve of 259 Mt at 0.39% Cu, 0.33 g/t Au and 15 g/t Ag.

Pre-production capital was pegged at $1.27 billion (excluding costs prior to a construction decision) and the company estimated a 14-year mine life with copper cathode, gold-silver doré and a high-grade copper precipitate produced. Filo said the post-tax net present value (8% discount) was $1.28 billion at copper, gold and silver prices of $3.00/lb, $1,300/oz and $20/oz, respectively.

Filo del Sol hosts a high-sulphidation epithermal copper-gold-silver deposit associated with a large porphyry copper-gold system. The project is in the Andes Mountains on the border of Chile and Argentina, approximately 140 km southeast of the city of Copiapó.

From the open pit, ore would be trucked to a conventional two-stage crusher, designed to process 60,000 t/d of ore. Crushed ore would be treated by sequential heap leaching, to extract copper and subsequently gold and silver from the ore followed by hydrometallurgical processing to produce copper cathodes and gold-silver doré. A portion of the barren leach solution, following zinc precipitation, would be treated to avoid a build-up of recirculating copper and cyanide through the gold circuit. This treatment is based on the SART process, which produces a copper sulphide precipitate (with grades of around 65% Cu) and recovers cyanide for use in the heap leach.

Groundwater for the process plant would be supplied from nearby aquifers to the plant site, and power would come from a 127 km of power line construction to connect to the Chilean national grid.

The PFS was prepared and managed by Ausenco Engineering Canada, with input from AGP Mining Consultants, BGC Engineering, Knight Piésold, Advantage Geoservices Limited, Merlin Geosciences and SRK Consulting.

New Gold after different funding strategy for C-Zone block cave at New Afton

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New Gold has launched an internally-funded strategy for the development of another block cave at its New Afton gold-copper mine in British Columbia, Canada, as it looks to extend production through to 2030.

While further details of the strategy are expected later in January, a 2016 feasibility study on the C-Zone implied another 25 Mt of gold and copper ore reserves, equivalent to five years of mine life, could be added through the development of the new block cave.

Early last year, the company decided to defer development of the C-Zone in 2018, electing to evaluate opportunities “that have the potential to further optimise the C-Zone project”. Some of the opportunities identified, which were not featured in the feasibility study, included different tailings options (such as dry stack or thickened/amended tailings), as well as mining approaches based on operating experience in the B-Zone (including reassessing the amount of required underground development in the cave as well as optimising draw bell and pillar designs).

New Afton is a block cave mining operation able to produce 4 Mt/y of copper-gold ore for processing in a flotation plant. The deposit has been partitioned into three zones. The two nearest the surface cave readily and provide the initial mine production, while the deeper block is expected to require assistance in cave development.

An undercut and extraction level has been developed at each block, with ore hauled to ore passes and dropped to a tramming level for transport to the crusher. Ore from the deeper block is hauled by 50-t truck to the crusher level, from where it is conveyed to the mill via a 4.5-km long conveyor system.

Since the start of the current underground block cave operation in July 2012, exploration at New Afton has focused on extending the mineral resource below the current B-Zone block cave reserve. This work has resulted in the development of the C-Zone mineral resource, which was stated as 18.3 Mt at 0.8 g/t Au, 2.2 g/t Ag and 0.95% Cu as of December 31, 2017.

While investors will await further news of the internally-funded strategy for the C-Zone, the existing mine exceeded guidance in 2018. It produced 18,778 oz of gold in the December quarter for 77,329 oz in 2018, above expectations. Copper output also toppled expectations, with 20.8 MIb (9,435 t) and 85.1 MIb for the quarter and year, respectively.

And expectations are for these positive results to continue into 2019.

New Gold said in the December quarter results release that it had started an “ore segregation” strategy during the quarter, which has been further enhanced with the recent commissioning of an ore scanner. This is expected to increase overall mill grade, New Gold said.

Also, during the quarter, the initial phase of a two-phase mill upgrade to address supergene ore recovery was completed on time and on budget. This included the installation of pressure jigs and a magnetic separator with commissioning currently underway.

The second phase of the planned upgrade will be launched during the current quarter, with commissioning scheduled for the September quarter, the company said.

South32 powers up Cannington solar PV farm

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The new 7,200-panel solar farm at South32’s Cannington silver-lead mine in northwest Queensland, Australia, is up and running, the mining company confirmed.

The 6 ha, 3 MW installation is the company’s first solar installation and will help to deliver reduced greenhouse gas emissions by offsetting gas consumption with solar. Construction commenced in May.

“Electricity generated from the farm will be used to supply the operation’s accommodation village and airport with surplus power used to support mining and processing operations,” South32 said.

The project – which contributes to the objectives of the company’s Climate Change Strategy – is the second largest solar installation in a remote, off-grid mining operation in Australia and the first to be integrated into a gas-fired power station, according to the company.

Earlier this year, EDL Energy signed a 14-year extension of its contract to supply electricity for Cannington, which included partnering with SunSHIFT, a wholly-owned subsidiary of engineering and construction firm Laing O’Rourke, to ‘hybridise’ the existing 34 MW gas plant at the site, with this 3 MW solar photovoltaic installation.

It is anticipated the new solar farm will prevent between 4,000-6,000 t/y of greenhouse gas emissions.

Rob Jackson, Vice President Operations at Cannington, said the operation was committed to identifying energy efficiency initiatives. “Reducing greenhouse gas emissions is a big part of that so I’m delighted that our Cannington operation’s solar installation is leading the way,” he said.

The cost to install and operate the solar farm will be offset by lower fuel costs, according to South32. This makes it an economically viable solution for the operation.

XRT ore sorting stacks up for Almaden Minerals at Ixtaca silver-gold project

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Almaden Minerals is moving forward with plans to introduce X-ray Transmission (XRT) ore sorting to its Ixtaca silver-gold project in Mexico, with the latest economic study showing the technology can boost production and returns.

The Vancouver-based company previously said conventional XRT ore sorting technology could, among other things, push the average annual metal production above the 147,900 oz/y of gold-equivalent production number set in the prefeasibility study.

The latest study, carried out by Moose Mountain Technical Services, has done that, with the conventional open-pit mine slated to produce 173,000 oz of gold-equivalent output at an all-in sustaining cost of $850/oz over an 11-year life.

Initial capital was pegged at $174 million with a post-tax net present value (5% discount) of $310 million based on gold and silver prices of $1,275/oz and $17/oz, respectively.

Almaden said pre-concentration will use XRT ore sorting to produce a total of 48 Mt of mill feed averaging 0.77 g/t Au and 47.9 g/t Ag. This compares with 73.1 Mt of run-of-mine feed averaging 0.59 g/t Au and 36.3 g/t Ag. Test work had previously indicated ore sorting could separate barren or low-grade limestone host rock encountered within the vein swarm from vein and veined material, Almaden said.

This will see product from the secondary crusher screened in to coarse (+20 mm), mid-size (12 to 20 mm), and fine (-12 mm) fractions, Almaden said, adding coarse and mid-size ore would be sorted by an XRT ore sort machine to eject waste rock. Fine ore will bypass the ore sorter and go directly to the mill.

In addition to this measure, the company plans to use an ore control system during mining. This is “planned to provide field control for the loading equipment to selectively mine ore grade material separately from the waste”, Almaden said.

And, its water and waste management plans include the use of dry-stack tailings at the project, which would include co-disposal of waste with filtered tailings, use much less water than traditional slurry facilities, reduce the mine footprint, allow for better dust control and enable earlier rehabilitation of the tailings and waste disposal areas, Almaden said.

De.mem to clean up at South32’s Cannington silver-lead mine

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Water and waste water treatment company De.mem has unveiled A$350,000 ($252,364) in new orders from municipal and resource sector customers, including one from South32’s Cannington silver-lead operation in Queensland, Australia.

The sale to South32 is for a membrane-based water treatment system supplied by the company’s wholly-owned Akwa-Worx subsidiary.

Akwa-Worx designs, builds and delivers a wide range of water and waste water treatment systems that make use of modern membrane technologies. Depending on the contaminants to be removed, and the product water quality desired, these systems may use ultrafiltration, nanofiltration or reverse osmosis membranes, plus there is also a membrane bioreactor option.

Cannington has been in production for 20 years and now produces 7% of the world’s lead and 6% of the world’s silver, according to the company.

Outotec processing expertise and tech on its way to Mexico precious metals project

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Outotec has won a contract for the delivery of a complete minerals processing plant for a precious metals project in Mexico, as part of wider €30 million ($34 million) order.

The company will also deliver process equipment for upgrades of two other sulphide silver ore processes for the same customer.

The total value of the contracts booked in Outotec’s December quarter order intake is approximately €30 million ($34 million), Outotec said.

The scope of the delivery includes the entire process flowsheet of grinding mills, flotation machines, concentrate and tailings thickeners, as well as concentrate filters, automation, and various spares and supervision services for the new precious metals concentrator.

For the upgrade of existing silver processes, Outotec will deliver additional flotation machines and multiple fine grinding equipment for improved recovery.

The deliveries will take place in the end of 2019, Outotec said.

Kimmo Kontola, Head of Outotec’s Minerals Processing Business, said: “We are pleased that we were chosen to deliver our leading technologies and services that enable our customer to improve their profitability in a sustainable way.”

The company was also recently awarded a pressure leaching and solvent extraction technologies for a battery chemicals plant to be built in Sotkamo, Finland. The total order value booked in the December quarter order intake for this contract is some €34 million.

Goldcorp turning tailings into money at Peñasquito Pyrite Leach project

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Goldcorp has achieved first gold at the Pyrite Leach project (PLP) at its Peñasquito operation in Mexico.

Commissioning commenced in the September quarter and the PLP is now processing 100% of the existing plant tailings, with the PLP plant operating 24 h/d as it continues to ramp up.

David Garofalo, President and Chief Executive Officer of Goldcorp, said the project was a major investment decision for the company and one of the first that went through the “Goldcorp Investment Framework”.

“We are very pleased with the results in completing the project both ahead of budget and schedule. We are already moving forward with a post investment review where we can take our lessons learned to continue to improve our framework and overall capital allocation strategy,” he said.

The PLP is part of Goldcorp’s $420 million investment to improve the processing facilities at its Peñasquito operation. It is expected to recover some 35% of the gold and 42% of the silver currently reporting to the tailings and add production of over 1 Moz of gold and 45 Moz of silver over the current life of the mine.

The PLP plant processes the existing plant tails, feeding a sequential flotation and leach circuit with precious metals recovered through a Merrill Crowe process, producing doré as the final product. Tails from the new plant will report to the existing tailings storage facility. As the plant is ramped up to achieve design recovery, there will be ongoing optimisation of the circuit chemistry and regrind performance.

Goldcorp highlighted that the PLP was delivered with over 9.5 Million site-hours, zero lost time incidents and an industry-leading all injury frequency rate of 0.09. It was constructed by a 100% Mexican workforce, commissioned two quarters ahead of schedule and came in 9% under the $420 million budget.

Commercial production is now expected by the end of 2018, two quarters ahead of plan, the company said.

The carbon pre-flotation circuit (CPP), which is integral to the performance of the PLP and existing plant, was commissioned in the June quarter as planned and the circuit has now treated 6 Mt of high-carbon ore and is operating and exceeding initial performance expectations.

The completion of the CPP de-risks not only stockpiled material, it also enhances flexibility to sequence ores and has the capability to process the complex organic carbon ore types remaining in the reserves. CPP achieved commercial production on October 1.

The CPP circuit currently consists of three stages of flotation to remove organic carbon from the cyclone overflow prior to the existing lead flotation circuit.