Tag Archives: Silver

Concor Infrastructure closes in on Khoemacu copper-silver project milestones

Concor Infrastructure says it is nearing completion of a 35 km access road for the Khoemacau Copper Silver Starter project in the Kalahari region of Botswana.

The company is at the same time also busy with constructing a parallel haul road, as well as conducting earthworks and concrete civils at the Khoemacau Boseto processing plant.

The Khoemacau copper project, in the central Kalahari copper belt, is developing underground operations at its flagship Zone 5 deposit. The mine plan involves three adjacent underground mines at Zone 5, each producing over 1.2 Mt/y in their first five years of production.

The haul road in question will allow mineralised material to be trucked 35 km from Zone 5 to the Boseto processing facility, while the access road will be used by light vehicles. After processing at Boseto, the mineral concentrate will be shipped out for smelting.

Good progress has been made on construction of the access road according to Jay Juganan, Contracts Director at Concor Infrastructure. The contract for both the access and haul roads was awarded in November 2018.

“The access road was little more than a sand track when we established on site and was accessible only by 4×4 vehicles,” Juganan says. “Essentially, we are creating a corridor for both roads in parallel, and for the powerlines to be installed by another contractor.”

The planning of the haul road also had to consider the large and ancient Baobab trees that are common in the area. Preservation of these trees is a vital imperative, requiring the haul road to be diverted on occasion to avoid about half a dozen Baobabs, which are hundreds of years old.

The access road is 90% complete and due for completion in the September quarter. The haul road is also expected to be completed next quarter, the company said.

Road construction comprises a 600 mm deep cut filled with pioneer crushed rock followed by a G3 sub base and base layer. In some areas, the crushed rock is replaced by a natural calcrete.

The wearing course is a 9/19 mm double seal, according to Concor, which had to crush all aggregate on site from the old mine waste rock stockpile at Boseto.

Concor Infrastructure Contracts Manager, Tiaan Krugel, said the remote location of the site and the dry conditions are among the key challenges encountered on this project.

“The sourcing and timing of the supply of equipment, parts and construction material required careful and detailed planning,” Krugel says. “The majority had to come from the capital Gaborone – 900 km away – with the other challenge being that most of our equipment OEMs are based in Johannesburg, which is more than 1,300 km from site.”

The scope of Concor’s work at the Boseto process plant, the contract of which was awarded in November 2019, includes earthworks and concrete civils to the existing and for the new process plant structures for the crushing, milling, flotation and concentrate handling circuits. The plant had previously treated material from an open-pit copper mining operation at Boseto, under the ownership of a different company.

Krugel highlighted the challenges of working with concrete on a remote site, especially where temperatures can reach over 40°C during working hours.

“A special concrete mix was designed to accommodate on-site conditions,” he said. “This includes the use of admixtures to prolong the concrete’s workability as well as having to chill the water we use before it is added to the cement and aggregates.”

In addition to the refurbishment and upgrading work at Boseto, Concor has also contributed to preparing the infrastructure at the Zone 5 mining site, where underground development is underway.

The work included all internal roads at the Zone 5 mine, terracing for the 650-person accommodation camp, the mine administration surface infrastructure area, the mine workshops and stores area and the explosives magazine together with construction of the ROM pads.

The Khoemacau Starter project expects to produce 62,000 t of copper and 1.9 Moz of silver each year over its planned life of more than 20 years, according to the company.

“Despite the restrictions related to the COVID-19 pandemic, which saw a reduction of staff numbers on site due to individual choices, we are working hard to ensure that program schedules will be met,” Juganan said.

K92 Mining continues to add new equipment at expanding Kainantu gold mine

K92 Mining, despite the onset of COVID-19, has made significant progress on its plans to increase production at its Kainantu gold mine in Papua New Guinea.

In March 2020, Kainantu achieved a major milestone, commencing the first long hole stope using the modified AVOCA method. This method is ideal for narrow vein/lens higher-grade stopes and can provide higher tonnages through continuous fill and blasting, as well as improved dilution control, according to the company.

The commencement of this new mining method is significant since previous mining has been exclusively from lower productivity and higher-cost development and cut and fill stoping, K92 said.

The first stope was from the K1 Vein and, to date, long hole stoping activities have performed in-line with design and have been increasing, providing a notable positive impact on operational flexibility, the company added.

Mining operations, which have been expanding in line with the 2019 decision to expand throughput to 400,000 t/y, from 200,000 t/y, have also benefited from further additions to the mining fleet.

The Papua New Guinea COVID-19 State of Emergency declared on March 20, 2020, saw limited impact to freight, with the arrival of a third Sandvik LH517i underground LHD loader with AutoMine® capabilities, a third CAT AD45B 45 t underground truck and two Terex Articulated surface haul trucks, since its declaration. The Government of Papua New Guinea ended the COVID-19 State of Emergency on June 16, resulting in a further easing of some of the restrictions, particularly around domestic movement.

“The equipment joins a significantly expanded and modernised fleet since the decision to proceed with the Stage 2 Expansion on March 13, 2019,” K92 said.

Back in January, the company said it expected a Sandvik DS421 cable bolter to arrive this quarter, alongside a modular batching plant. The company said earlier this month that this unit (pictured), as well as three new and high powered diamond drill rigs were in transit to the mine.

Twin incline activities have recently recommenced at Kainantu with the easing of restrictions from the state of emergency. Ground support for the portal is also underway, with portalling and the installation of steel sets expected to commence in the first half of the September quarter, the company said.

The process plant, meanwhile, has achieved multiple daily throughput records during the June quarter, significantly exceeding the 200,000 t/y, or circa-550 t/d nameplate capacity, with over 700 t/d achieved on multiple occasions.

“The strong performance of the process plant and underground mine to date are expected to result in gold-equivalent production exceeding March quarter output,” the company said.

The March quarter saw K92 produce 19,240 oz of gold, 339,993 lb (154 t) of copper and 6,937 oz of silver for a total of 19,934 gold-equivalent ounces, representing the second highest quarter on record. Gold-equivalent production in 2019 was 82,256 oz, with 115,000-125,000 oz of gold-equivalent scheduled in 2020.

Preparations are also being made to recommence Stage 2 process plant commissioning in the near term, to double plant throughput capacity to 400,000 t/y. All the equipment is installed, and commissioning is expected to commence in first half of the September quarter, with completion targeted at the end of that three-month period, K92 said.

John Lewins, K92 Chief Executive Officer and Director, added that a Stage 3 Expansion preliminary economic assessment is planned for July.

AGQ Labs wins environmental monitoring contract with Minera Chinalco

AGQ Labs has won a contract to carry out environmental sample analysis services for Minera Chinalco Perú SA over the next three years.

Minera Chinalco owns the Toromocho open-pit copper mine in the Morococha district of Peru, situated 4,500 m above sea level. Toromocho will produce 1 Mt/y of copper concentrate, 10,000 t/y of molybdenum and 4 Moz/y of silver oxide, according to the company’s website.

Minera Chinalco is a subsidiary of Aluminum Corporation of China, the second largest alumina producer in the world and the third largest producer of primary aluminium.

The purpose of the AGQ Labs contract is to analyse environmental samples during the next three years in various environmental matrices, including:

  • Surface waters, in this matrix, will be determined in accordance with the environmental quality standards (ECAs), looking at, among other parameters, run of total metals, anions, cyanide, microbiological and hydrobiological, volatile organic compounds, semi-volatile, organochlorine pesticides, phosphors, carbamates and polychlorinated biphenyls;
  • Groundwater, among other parameters, will be analysed for metals, anions, cyanides, COD, microbiological elements;
  • Domestic and industrial wastewater, in accordance with the applicable legislation for the sector, will be analysed for, among other parameters, metals, anions, cyanides, coliforms, etc;
  • Drinking water, complying with 100% of DS 031-2010.SA, will be looked at for microbiological and parasitological, organoleptic, volatile, semi-volatile organic compounds, pesticides and alpha and beta radiation;
  • Air quality will be determined according to the applicable ECAs, among others PM10, PM2.5 particulate material, metals, gases and others;
  • Characterisation of soils – cover or top soil – where the study of agronomic characterisation, metal run, and others of relevance for the purpose will be made;
  • Soils and sediments, in order to verify compliance with the applicable ECAs, will be analysed for metal, hydrocarbons in the three fractions, volatile and semi-volatile organic compounds, and other elements;
  • For environmental geochemistry, an ABA Test, and others will be determined;
  • Characterisation of mining waste, applying the current standard in accordance with the EPA standard and others, for flammability, corrosivity, reactivity, toxicity and pathogenicity. According to the test results, a judgment will be issued about the associated risk; and
  • Environmental monitoring of air quality parameters, electromagnetic radiation and day and night environmental noise will be examined in accordance with current regulations.

In this sense, Minera Chinalco is entrusting to AGQ Labs a specialised service for the monitoring and analysis of environmental samples, according to its experience and national accreditation, the company said.

Yamana lets GoldSpot loose on Cerro Moro exploration database

Following recent successes at El Peñón, GoldSpot Discoveries Corp has been reengaged by Yamana Gold  to use machine learning to identify new drilling targets at the Cerro Moro gold and silver mine, in Argentina.

Yamana has commissioned GoldSpot’s team of geologists and data scientists to examine its entire database and look for previously unrecognised data trends to identify areas of potential mineralisation at depth and on a regional scale, it said. By engaging GoldSpot, Yamana seeks to minimise exploration risk and mitigate exploration and drilling costs, the company added.

“GoldSpot will use its geoscience and machine science expertise to clean, unify and analyse exploration data from Yamana’s Cerro Moro mine and produce 2D and 3D targets for the exploration program,” GoldSpot said. “GoldSpot will also deliver new geophysical, geochemical and geological products produced through the reprocessing of the satellite images and other relevant layers which will help interpretations and mineralisation models.”

Denis Laviolette, Executive Chairman and President of GoldSpot, said the new contract with Yamana validates its work, thus far. “Yamana has been an incredible supporter of GoldSpot and we are proud to be a part of their digital transformation,” he said.

GoldSpot was previously commended for its use of machine learning technology to improve exploration targeting and also contribute to the meaningful increases in mineral resource inventory at Yamana’s El Peñón mine.

Henry Marsden, Senior Vice President, Exploration, at Yamana, said in February: “The collaborative AI process undertaken with GoldSpot has allowed Yamana’s exploration team to leverage many years of multidisciplinary exploration data and is playing a significant role in the current exploration targeting process at El Peñón. We are pleased with the progress that our partnership with GoldSpot has yielded so far and look forward to continued success.”

Sotkamo Silver chases processing efficiencies with Outotec-TOMRA XRT solution

Sotkamo Silver is looking to reduce the amount of material it grinds and floats at its silver operation in Finland through the introduction of X-ray Transmission (XRT) ore sorting technology.

The company said it began pilot testing of the XRT machine in May after the unit was supplied and successfully commissioned at the mine by Outotec and TOMRA. Outotec and TOMRA have been cooperating on the supply of Outotec-branded sorting solutions for the mining and metallurgical industry since 2014.

Sotkamo’s trial pilot testing builds on previous test work at TOMRA’s testing facilities in Germany.

Previous XRT ore sorting test work carried out by TOMRA on 2,200 kg of Sotkamo samples showed the silver content from low-grade ore increasing some 1.9 x to 116 g/t Ag, while the average silver content in ore rose 1.43 x to 195 g/t Ag. In addition to this, about 60% of the rock previously classified as low-grade ore was removed as gangue with the testing, with some 43% of rock reporting as gangue from the average grade ore samples.

Following this work, back in 2018, Sotkamo Silver said it was looking to install an Outotec-TOMRA XRT ore sorter in the process flowsheet after two-stage crushing (jaw and cone crushers) had taken place and the rock was some 30-70 mm in size.

In the update today, Sotkamo Silver said the XRT technology can scan every feed particle to identify the relative atomic density differences within particles and then separate desired high-grade particles from the barren material pneumatically.

It said sorting of marginal ore would be carried out after primary crushing and it was expected to reduce roughly 50% of non-ore material going into the grinding and flotation process.

“This improves significantly the energy efficiency as less material is grinded, and also material efficiency as marginal ore can be exploited and processed to mill feed,” the company said, adding that leftover barren material would be used as rock-fill in the underground mine.

During the first three months of 2020, around 129,000 t of ore was processed at the silver mine, yielding some 391,000 oz of silver, 462 t of lead, 958 t of zinc and 998 oz of gold in the concentrates.

Euro Sun Mining taps SENET for Rovina Valley project DFS

Euro Sun Mining says it has given DRA Group’s SENET the task of delivering a definitive feasibility study on the Rovina Valley Project, in Romania.

SENET, a leading project management and engineering firm in the field of mineral processing, has completed in excess of 200 projects and facilities, as well as over 300 studies, in which the scope of work has included a variety of mineral/metallurgical process plants, crushing and screening plants and bulk materials handling facilities for mining and industrial applications, according to Euro Sun.

The engineering firm will oversee and consolidate studies from a number of industry experts to fast-track the study in order for Euro Sun to be able to start construction on its Rovina Mining License, Euro Sun said, adding that the study is expected to be completed by year end.

A February 2019 preliminary economic assessment on Rovina, which factored in only circa-29% of total mineral resources, estimated average annual production of 139,000 oz of gold-equivalent over a 12-year mine life. This came with a capital expenditure bill of $339.7 million, including $264 million for a central plant built for all three deposits.

The company is targeting an 18-year mine life, with initial capital expenditure in line with the PEA, in this updated study.

Darren Naylor, Managing Director of SENET, said: “We are excited to be awarded the study on such an exciting project and are very excited about the prospect of supporting Euro Sun in delivering a world-class study. We believe that our track record in delivering projects on time and within budget will be mutually beneficial to SENET and Euro Sun and we look forward to a long and rewarding partnership.”

Sam Rasmussen, Chief Operating Officer of Euro Sun, said: “We are very pleased to have SENET on board. SENET has time and again delivered projects in remote countries, with logistical and cross-border challenges, and this is the type of expertise we require to take Rovina to the ‘ready for construction’ phase. SENET has a reputation for delivering projects on time and within budget and this is why we have appointed them on this project.”

GreenGold’s ReCYN processing pipeline continues to grow

GreenGold Technology has been making huge waves of late, with its biggest ReCYN resin-based technology build to date nearing completion and several new projects on the horizon.

ReCYN reduces cyanide consumption by up to 50% by capturing free cyanide from plant tailings and recycling it back into the leach circuit while recovering metal complexes and making them available for sale, according to the company. In the process, it detoxifies the tailings stream and guarantees 100%-compliant clean water discharge.

Such technology is in serious demand considering the industry’s operational cost focus, increased stakeholder pressure around the use of cyanide, the need to recycle and replace as much water as possible, and a necessity to improve project economics through the recovery of all payable metals.

On top of this, new and existing gold projects are becoming difficult to process through conventional means with problems around by-products such as copper often proving to be the difference between a sub-economic and economic mine development proposition.

The ReCYN process is based on the use of a functionalised resin bead, pre-treated to allow the dual duty of recovering free and complexed cyanide ions from solution with a high degree of efficiency. GreenGold works with local construction companies to customise treatment plants for each operation to match the various solution chemistries and throughputs, it says.

“The two areas of cyanide recovery and metal detoxification are balanced to achieve the desired compliance levels,” GreenGold says. “Equally applicable to slurries and solutions, the process is technically and economically superior to all others currently available for the detoxification of gold plant tailings.”

The company currently has four ReCYN options for clients, according to Commercial Director, Peter Mellor.

ReCYN I is for active (free) cyanide reduction, while ReCYN II has been devised to include detox applications to recover cyanide complexes such as copper. ReCYN III adds gold recovery as a “secondary function” to the mix.

The fourth option (ReCYN IV) includes gold recovery as a primary option, Mellor told IM, explaining that the development of a plant offering in this configuration could remove the need for a carbon in leach treatment plant in some applications.

It is a ReCYN II installation the company is currently putting the finishing touches to at PT Agincourt Resources’ Martabe gold-silver operation in Sumatra, Indonesia (graphic above).

This project, which will detoxify tailings and recover cyanide and copper, was previously estimated by Whittle Consulting to provide a $126.9 million upside to the project.

Speaking to IM from Australia, Mellor said the company was just over a month away from completing the plant at Martabe before COVID-19 restrictions hit progress. He was confident the company would be back completing plant commissioning before the end of the year.

By far the biggest ReCYN installation of the technology, the ReCYN II plant at Martabe will fit into the 5.5 Mt/y circuit and treat around 1.2 t/d of copper, Mellor said. It will also have benefits in terms of reduced cyanide consumption and improved water quality at the operation.

While work in Indonesia is currently not taking place, the company is making significant progress elsewhere.

Mellor said GreenGold had started detailed engineering for a plant in the Ivory Coast, while it had also completed an economic study on a legacy gold operation in Australia that showed compelling economics and the potential for a ReCYN IV installation for processing gold-bearing tailings.

The company also has some 40 projects it is working on in the laboratory – from Australia to the US – with client awards expected in the next few months.

Bluestone and G Mining to optimise Cerro Blanco project

Bluestone Resources says it has entered an agreement with G Mining Services covering basic engineering and overall project optimisation efforts for its Cerro Blanco project, in southern Guatemala.

Together, Bluestone and G Mining, a multidisciplinary mining and project management company, will form an integrated project team to manage aspects of the project, covering optimisation of all areas of the design, execution plan, and basic engineering, it said.

It is expected that basic engineering will be completed, and detailed engineering will be initiated, by the December quarter. During this time, the detailed plan for procurement, site early works, construction, and commissioning will be established as part of the next phase of the project, according to Bluestone.

Jack Lundin, CEO of Bluestone, said: “I recently worked alongside the G Mining team at Fruta del Norte, in Ecuador, and we are excited to have them join Bluestone in advancing Cerro Blanco through this important next phase.

“We will be looking to replicate the recent success in Ecuador leveraging key aspects of the execution strategy and team for Cerro Blanco. The Fruta del Norte project was delivered on time and on budget and represents one of the most recent major mining projects to be commissioned in Latin America.”

Key areas of focus in the near term will be optimisation, trade-off, and basic engineering scopes, Bluestone said. The optimisation work will include process and layout trade-off studies, which are currently underway. Further metallurgical test work is nearing completion, which will finalise the flowsheet, allowing equipment selection to be confirmed, according to the company. Basic engineering will be advanced and updated project capital and operating cost estimates will be prepared for the mine, processing facilities, and balance-of-project facilities.

Additionally, Bluestone says it is well advanced on the mine development contract and has been recently building out its recruitment, training plans, and project readiness initiatives. Progress on the project financing package also continues to advance as planned, it noted.

A feasibility study on Cerro Blanco, completed by a consortium of independent consultants led by JDS Energy & Mining, showed an average output of 113,000 oz/y of gold 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 was projected to generate a post-tax net present value (5% discount) of $241 million.

Mexico miners to suspend operations for April following government decree

Mexico has become the latest country to enforce a suspension of non-essential activities in response to the outbreak of the COVID-19 pandemic, with its Ministry of Health ordering a temporary halt of activities until April 30 in order to slow the virus spread.

Mexico is the world’s largest silver producer, having produced 6,300 t of the precious metal in 2019, according to the US Geological Survey. This was an increase of 180 t, year-on-year. It is also hosts major copper and zinc mines operated by Grupo Mexico and Southern Copper, and produces a significant amount of gold.

It joins the likes of Peru, Quebec and South Africa in declaring suspensions of all non-essential activities in order to curb the spread of the virus.

Among the miners with operations in the country to have already reacted to the Mexico Ministry of Health’s announcement was Newmont, Pan American Silver, Sierra Metals and Argonaut Gold.

Newmont, which operates the Peñasquito mine in the state of Zacatecas, said it was taking steps towards a safe and orderly ramp down of operations at the asset.

“At this time, mining has not been deemed an essential activity under the decree and the company is engaging with the government to understand the intended impacts of the decree on operations,” it said.

“Peñasquito will work closely with local governments, neighbouring communities, employees, unions and contractors to ensure a safe and orderly ramp down that complies with the federal government’s directives.”

Tom Palmer, President and Chief Executive Officer of Newmont, said the company intended to comply with Mexico’s latest directive, while engaging with the government to gain further clarity regarding “important activities that may continue at the mine”.

In the meantime, the company would ensure Peñasquito, which is the largest gold mine, second largest silver mine and one of the largest producers of zinc and lead in Mexico, remains well-positioned to safely and efficiently ramp up operations in a timely manner once the government’s directive is lifted, Palmer added. This includes maintaining critical safety, environmental management, infrastructure maintenance and security activities, while continuing to provide essential community support.

Pan American Silver, which operates the La Colorada (Zacatecas, pictured) and Dolores (Chihuahua) operations in Mexico, said it would expand its initiative of reducing the number of people on site to increase physical distancing, to bring the mines into compliance with the executive order.

It is continuing to conduct care and maintenance at the suspended operations to sustain strict safety and environmental systems, and to ensure operational readiness when the government restrictions are lifted and Pan American determines it is safe to resume operations, it added.

La Colorada produced 8.2 Moz of silver in 2019, while Dolores’ output came in at 5.1 Moz.

As a result of this declaration, Sierra Metals said it will only maintain an essential services crew at its Bolivar mine site until April 30, and the Cusi mine site will be placed into care and maintenance during this period. “The company anticipates resuming normal production levels at the mines after this period,” it said.

Bolivar, an underground mine with a 3,600 t/d processing capacity, had previously been expected to produce 16,402- 18,225 t of copper-equivalent in 2020, while the Cusi underground mine was down to produce 1,732-2,126 oz of silver.

Sierra Metals added: “Production can recommence to normal levels very quickly after April 30, and the company has some operating flexibility at Bolivar to run the ore processing mill at higher levels, which should help recover lost ore tonnages from this suspension.”

Argonaut Gold, which is looking to merge with Alio Gold – a transaction that will see it increase its Mexico exposure – said it was working towards an orderly suspension of mining, crushing and stacking activities at its El Castillo gold-silver open-pit mine in Durango, and its La Colorada open-pit operation in Sonora. These assets produced 131,277 gold-equivalent ounces and 55,338 gold-equivalent ounces, respectively, in 2019.

The company added: “Given that Argonaut operates heap leach mines, the company expects metal production and metal sales will continue during the temporary suspension of mining activities.”

AGQ Labs to keep environmental tabs on Glencore’s Contonga polymetallic mine

AGQ Labs’ mining division has been awarded a contract to carry out the environmental monitoring of the quality of soil, water, plant and hydrobiological tissue at Glencore’s Contonga polymetallic mine, in Peru.

The Contonga mine, in Ancash, is owned by Glencore subsidiary Compañía Minera Los Quenuales. It is a polymetallic underground zinc, lead, copper and silver mine with more than 100 years of operating history, according to AGQ Labs. Glencore acquired the asset from Nyrstar back in September 2017.

The mining company, as part of its environmental commitment at the mine, performs environmental monitoring of its components to determine their chemical stability and the potential for acid mine generation, as well as their characterisation through complementary studies, AGQ Labs said.

AGQ Labs Mining will provide the sampling service and technical analytical support through a specialised service for the characterisation of soils, waters and plant tissue. This uses selective analytical techniques for the characterisation of the matrices under study.

For this, AGQ Labs uses a set of tests to define the quality of the soils under study through fertility tests and characterisation of the profiles.

Mobilisation of the different analytes under study are also characterised through leaching tests such as methodologies proposed by Tessier and the Flask Extraction Test. The characterisation of its acid generation capacity with ABA methodologies and mineralogy analysis is carried out with Thin Sheet Microscopy.

AGQ Labs said: “The characterisation works are complemented by the taxonomic classification of the most representative flora and the study of the waters through laboratory analyses of physicochemical and hydrobiological parameters.”