Tag Archives: Stuart Thomson

MSALABS to drive productivity improvements at Nevada Gold Mines complex with new contract

Mineral exploration, Mining services, Sustainable mining, , , , , , ,

MSALABS, a global provider of geochemical laboratory services for the exploration and mining sectors, has cemented a major, five-year new contract with Nevada Gold Mines in the US that will see the majority-owned subsidiary of Capital operate a state-of-the-art hybrid laboratory on the gold miner’s behalf. The lab will incorporate both Chrysos PhotonAssay™ technology and traditional fire assay methods as well as full multi-element assaying capabilities.

This represents the largest contract award in MSALABS’s history, anticipated to generate some $140 million over the five-year term, with annual revenues of circa-$30 million once fully operational. Capital expenditure for the project is expected of circa-$7 million in 2024.

Phase one of the project will commence towards the end of the first half of 2024 with the commissioning of two Chrysos PhotonAssay units and a capacity of 80,000 samples per month. Phase two will commence at the end of 2024 with the third Chrysos PhotonAssay unit along with the full geochemical laboratory bringing capacity to 120,000 samples per month as well as associated multi-element testing.

The Nevada Gold Mines contracts represents a significant beachhead for MSA in the US market, entrenching the company’s presence in the Americas, both operationally given the full suite of services across preparation, PhotonAssay, fire assay and multi-element chemistry at a major operation, and also geographically, expanding its footprint in the Americas from its multiple laboratories across Canada and South America, it said.

It also comes alongside Capital’s recently-awarded drilling contract at NGM, which encompasses a wide array of drilling services including underground reverse circulation and diamond, both surface and underground, in addition to Capital announcing former BME and Orica team member Aaron Austin as CEO of the Americas.

Stuart Thomson, MSALABS CEO, said of this contract award: “We are thrilled to have been awarded this material contract, adding to our existing PhotonAssay contracts with Barrick at Bulyanhulu and Kibali. This contract reflects not only the proven advantages of the innovative PhotonAssay technology but also the trusted capabilities of MSALABS across traditional fire assay and multi-element analysis.

“This state-of-the-art hybrid laboratory will be the first of its kind in the USA and, with MSALABS’ holistic approach to laboratory design, will help drive productivity improvements to the Nevada Gold Mines complex.

“These three new PhotonAssay units mark the start of a broader partnership agreement with Barrick Gold, with trials underway for a possible 10 further PhotonAssay units by the end of 2025 across multiple of Barrick’s other operations.”

MSALABS continues to build global PhotonAssay offering on ‘undeniable’ demand

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MSALABS, a global provider of geochemical laboratory services for the exploration and mining sectors and a majority-owned subsidiary of Capital, has provided an operational development update to coincide with the annual PDAC convention in Toronto, Canada, which highlights the deployment of western Canada’s first PhotonAssay™ technology unit.

The first few months of 2023 have seen MSALABS maintain its significant growth momentum from 2022, with the delivery of a strong operational performance from existing contracts, as well as the successful commissioning of a number of new laboratories, it said.

The western Canada first occurred at Prince George, in British Columbia, with the unit now commissioned and set to begin processing samples from a broad range of customers in the region.

In January, meanwhile, the company commissioned a PhotonAssay unit at Barrick’s Kibali mine in the Democratic Republic of the Congo, the largest gold mine on the Africa continent.

MSALABS has been a champion of Chrysos Corp’s PhotonAssay technology, which it says delivers multiple advantages over the slower, more hazardous fire assay process, such as faster, safer, more accurate and environmentally-friendly analysis of gold, silver, copper and other elements.

In July last year, it expanded its partnership with Chrysos Corp, planning for the deployment of 21 units across the globe by 2025.

In its latest update, MSALABS said its traditional business also continued to grow. with the commissioning of mine site and regional laboratories.

Included among this is the commissioning of the Singida mine site laboratory for Shanta Gold’s Singida mine in Tanzania, following a three-year contract, awarded late last year.

In Mali, meanwhile, MSALABS commissioned the laboratory in Bougouni, which will support gold and lithium operations in the southern part of the country. The first samples from Leo Lithium’s Goulamina operation are expected within days, it said;

At PDAC, the company is also expecting to sign a franchise partnership with Aurora Minerals Group to provide geochemistry services to the burgeoning Kazakhstan mining industry.

Stuart Thomson, MSALABS CEO, said: “MSALABS has got off to a very strong start in 2023, testament to the strong demand we are seeing for our services but also the continued hard work of our employees to deliver such impressive growth. Announcing new labs across all three of our major regions, further diversification of commodity mix and entry into a new country is indicative of the increasing strength and robustness of MSALABS.

“In particular, the demand for Chrysos PhotonAssay is undeniable with a multitude of major mining companies continuing to run trials and converting to the revolutionary technology. In partnership with Chrysos, we are proud to be bringing this technology to western Canada with our new commercial laboratory at Prince George where we can service the significant mining region.”

MSALABS to bolster Chrysos PhotonAssay inventory on ‘exceptional demand’

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MSALABS, a global provider of geochemical laboratory services for the exploration and mining sectors and a majority-owned subsidiary of Capital Limited, has expanded its global partnership with Chrysos Corp that will see it bolster its number of PhotonAssay™ units.

The partnership will see MSALABS deploy 21 Chrysos PhotonAssay™ units across the globe by 2025.

In April 2021, MSALABS announced its global partnership with Chrysos and revealed the planned deployment of six PhotonAssay units across its global network. This rollout commenced with a unit at Barrick Gold’s Bulyanhulu Gold Mine, in Tanzania, and represented the first Chrysos PhotonAssay unit deployment outside of Australia.

MSALABS has continued the rollout with units now commissioned at the Morila Gold Mine, in Mali (Firefinch), and in Val d’Or, Quebec, Canada. A fourth unit will arrive imminently in Yamoussoukro, Cote d’Ivoire, with facility preparations well advanced. A fifth unit is ready for shipment to the Kibali Gold Mine, in the DRC (Barrick Gold), with the sixth unit due to begin installation in Timmins, Canada, by the end of 2022.

The company has committed to a further 15 Chrysos PhotonAssay units that will be rolled out over 2023 and 2024. MSALABS says it is currently engaged with multiple mining companies globally, including most of the top 10, and continues to see “exceptional demand” for this revolutionary new technology.

PhotonAssay delivers multiple advantages over the slower, more hazardous fire assay process, according to MSALABS. The technology provides faster, safer, more accurate and environmentally-friendly analysis of gold, silver, copper and other elements. The process is significantly simpler than fire assay, dramatically improving the turnaround time for results and reducing the risk of human error, with the added benefit of being able to retain and retest samples. In addition, the use of X-rays avoids the high temperatures and harmful chemicals such as lead and acids involved in fire assay, making it more environmentally friendly with a lower carbon footprint.

Revenue guidance for MSALABS in 2022 remains circa-$30 million, which includes the rollout of the initial six Chrysos PhotonAssay units by year-end, with each unit generating $3-5 million, depending on use. Following the rollout of the further 15 units across 2023 and 2024, in conjunction with the expansion of the existing geochemistry business, MSALABS anticipates generating revenues in excess of $80 million/y.

Stuart Thomson, MSALABS CEO, said: “We are pleased to expand our relationship with Chrysos and to assist in the global rollout of its revolutionary technology. Over the past year, we have seen very strong demand for Chrysos PhotonAssay, and we expect this interest to continue to grow as our global mining customers not only gain confidence in its accuracy and reliability, but also benefit from the substantially improved turnaround time for results not possible with fire assay. In recent years we have grown our network significantly and now have 18 laboratories globally. Adding Chrysos PhotonAssay into our service offering is exciting for us and a key benefit for our customers.”

Capital bolsters Barrick Bulyanhulu work with laboratory, drilling contracts

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Africa-focused mining services company, Capital, says it expanded its operations at Barrick Gold’s Bulyanhulu gold mine in Tanzania with the award of two new contracts for its drilling and geochemical laboratory services divisions.

The contracts include a five-year laboratory services contract for Capital’s MSALABS subsidiary, together with a two-year underground grade control drilling agreement.

Capital commenced operations at Bulyanhulu in February 2020, undertaking a complex deep hole delineation drilling program. The company’s execution of the program resulted in an expansion of services, with two underground rigs added to operations from May, it said. The new contract will expand the underground fleet at Bulyanhulu to four, using two rigs from the existing fleet and including the acquisition of a further two underground rigs.

MSALABS, meanwhile, will undertake initial laboratory design and deliver ongoing laboratory management and analysis services under the laboratory services contract. Analysis capabilities will include fire assay together with new Chrysos PhotonAssay technology that uses X-ray technology to determine the gold content of mineral ores more quickly and accurately than traditional methods.

The contract terms are expected to be finalised imminently for a five-year term, key personnel recruitment and training is now complete and initial commissioning processes are underway, Capital said, adding that the new contracts were scheduled to commence on December 1.

Stuart Thomson, MSALABS CEO, said: “We are excited to commence this new contract with Barrick to manage their on-site laboratory at the Bulyanhulu mine. The use of the ground-breaking new Chrysos PhotonAssay technology will significantly increase assay throughput at Bulyanhulu, while delivering a much faster sample turnaround time for Barrick.”

Capital’s Executive Chairman, Jamie Boyton, said: “We are very pleased to be expanding our services at the Bulyanhulu Gold Mine and continue our valued relationship with Barrick. It is particularly pleasing that our team’s successful execution of the initial deep hole drilling program has contributed to this expansion and we are now delivering multiple services at the site.

“This aligns to Capital’s growth strategy of expanding services with existing customers at established mine sites, with the laboratory services contract to contribute to an increase in the company’s non-drilling revenues.”