Tag Archives: SolGold

SolGold-Cascabel

G Mining Services to oversee SolGold Cascabel Project feasibility study

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SolGold plc says G Mining Services Inc has been awarded the contract to provide project management services for the Cascabel Project feasibility study (FS), in Ecuador, following a competitive selection process that considered multiple firms with extensive mining expertise.

G Mining Services’ project management scope will include overseeing timelines, milestones and deliverables, as well as implementing and managing cost control systems.

G Mining will develop and maintain detailed project schedules, assist SolGold with specialised consultant selection and contract management and provide senior estimation services for project costing. It will also offer expertise in various engineering disciplines such as mining, infrastructure, metallurgy and processing, and capital and operating expense estimation. SolGold will continue to maintain substantial input in the selection of specialised consultants. This phase is key to de-risking the project and will lay the foundation for future development stages.

G Mining Services was selected for this important phase due to its substantial experience in the Ecuadorian mining sector, notably its success with the Fruta del Norte project, competitive cost structure and availability to meet the project’s timeline for this scope, SolGold says. It has successfully delivered on several major global projects, including the Tocantinzinho gold project in Brazil and Newmont’s Merian mine in Suriname.

Scott Caldwell, President and CEO of SolGold, said: “We are pleased to have G Mining onboard for this critical phase of the Cascabel project. Their Ecuadorian experience, cost-competitive approach and strong team make them the ideal partners as we advance the project, de-risk key elements and move forward. There remain numerous areas we feel meaningful improvements can be made to the existing PFS, particularly in the areas of the inclusion of the Tandayama-Ameríca open-cut resources, gold and copper recovery, improved mine plan, site layout and infrastructure efficiency, power supply, waste rock and tailings management. We look forward to G Mining’s assistance in this evaluation.

“At the same time, we are working on the processes to secure the various permits to facilitate access to development and the balance of the financing that will be required for a development decision.”

The Cascabel PFS envisaged average production of 123,000 t/y of copper, 277,000 oz of gold and 794,000 oz of silver from a mine that had an initial 28-year mine plan of 540 Mt containing 3.2 Mt of copper at 0.60% Cu, 9.4 Moz of gold at 0.54 g/t Au and 28 Moz of silver at 1.62 g/t Ag based on its reserves.

Mathieu Gignac, President of G Mining Services, said: “We are excited to collaborate with SolGold on the Cascabel project, a world-class copper-gold deposit with immense potential. Our team’s experience in managing large-scale projects like Cascabel, combined with our local presence in Ecuador, positions us to help SolGold unlock significant value while systematically de-risking and advancing this outstanding asset.”

SolGold outlines new copper-gold-silver block cave mine plan at Alpala

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SolGold has laid out plans to develop a mine at its majority-owned Alpala copper-gold-silver deposit, in northern Ecuador, that will use block cave mining methods applied over several caves designed on two vertically extensive lifts.

The preliminary economic assessment on Alpala estimated a pre-production capital expenditure of $2.4-2.8 billion for a mine that could produce 150,000 t/y of copper, 245,000 oz/y of gold and 913,000 oz/y of silver in concentrate over the life of mine.

The PEA stated a post-tax net present value (8% discount) of $4.1-4.5 billion based on an average $3.30/lb ($7,275/t) copper price, $1,300/oz gold price and $16/oz silver price depending on a 40-60 Mt/y throughput rate.

As part of the PEA, four mine production cases were pre-selected and assessed. This included a 40 Mt/y option over a 66-year mine life, a 50 Mt/y blueprint with a staged ramp up and a 57-year life, a 50 Mt/y fast ramp-up plan with 55-year life and a 60 Mt/y route with 49-year life.

Unit C1 operating costs over the life of the mine were estimated at $0.90/lb copper after gold and silver credits using the 50 Mt/y, fast ramp-up plan.

Resources scheduled in the PEA block cave designs accounted for 2.4 Bt at 0.54% CuEq ROM grade.

SolGold said the prefeasibility study is expected to be completed in December 2019 with a definitive feasibility study scheduled for completion at the end of 2020.

SolGold CEO, Nick Mather, said: “The unusually low operating costs modelled are due to the relatively soft, fractured nature of the ore, resulting in enhanced caveability, a high degree of fragmentation in the cave and ease of crushing and millability, combined with low hydroelectric (consumption and unit) costs. The overall scale efficiencies also assist in the delivery of modelled low operating costs.”

Metallurgical work at Alpala, which is ongoing, indicates gold contents in the pyrite concentrate will require additional investigation to identify an efficient recovery strategy, SolGold said.

Additional metallurgical work is expected to identify solutions for recovery of gold and copper in the pyrite concentrate along with a sulphuric acid product.

Over the period to the end of 2019 when SolGold aims to complete the prefeasibility study, activities will focus on exploration, a new mineral resource, metallurgy and process design, investigation of further tailing disposal options and incorporation of further geotechnical and hydrogeological data into the PFS basis, SolGold said.

SolGold will also commence permitting and fiscal discussions with the Ecuador Government and financial discussions with third party financiers for SolGold’s share of the project costs following completion of the FS.