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Issue link: https://emj.epubxp.com/i/102812
REGIONAL NEWS - U.S. & CANADA standards are high. "It takes more than good geology to promote sustainable development in mining," he commented. The value of Ontario's mineral production reached some C$10.7 billion last year, with mining and exploration providing more that 27,000 direct jobs and another 50,000 indirect jobs in the province. More than 600 exploration projects are currently active, mainly driven by the gold price, while the current population of 42 mines is scheduled to increase by at least a further eight over the next decade. Three have opened this year alone, with overall capital spending topping C$3.8 billion during 2012. Add to that the C$5.6 billion annual value of Ontario's mine supply and service sector, and mining's role within the provincial economy is clear to see. General Moly Moving Mt. Hope Toward Construction Start General Moly announced on December 18, 2012, that the U.S. Bureau of Land Management had accepted the company's reclamation bonding for the Mt. Hope molybdenum project in Eureka county Nevada and granted authorization to proceed with surface-disturbing activities. Earlier in the month, General Moly announced its 80%-owned subsidiary Eureka Moly, LLC had received $100 million in contributory payments from its 20% joint venture partner POS-Minerals Corp. Eureka Moly is the operating company that is developing the Mt. Hope project. POSMinerals is a subsidiary of Korean steel producer POSCO. General Moly CEO Bruce D. Hansen said, "We continue to target spring 2013 for receipt of China Development Bank funding. This coincides with the terrain at Mt. Hope being adequately thawed to initiate heavy construction. In the weeks ahead, we will start light construction activities better suited to the winter, including early well-field development, clearing and grubbing, and the continuation of our cultural clearance efforts as we prepare for heavy construction in the spring." The Mt. Hope project completed the permitting process required for construction in November 2012 when the U.S. Bureau of Land Management (USBM) issued the Record of Decision (ROD) authorizing development of the project and the State of Nevada Division of Environmental Protection (NDEP) issued the project's reclamation and water pollution control permits. The USBM's ROD approved the Plan of Operations for construction and operation 10 E&MJ; • JANUARY 2013 of the Mt. Hope mining and processing facilities and also granted the rights-of-way for a 230-kV power transmission line. The NDEP reclamation permit was issued on the basis of a site-specific application detailing the reclamation methods to be used to return the land to safe and stable conditions and a productive postmining land use. The permit also approved the reclamation cost estimate of approximately $73 million and established bonding requirements based on this estimate. The water pollution control permit was issued on the basis of a site-specific permit application that demonstrated that the proposed facility will meet Nevada regulations regarding design criteria for containment of process fluids. The permit will also approve the operational and closure plans for the Mt. Hope mine and will establish monitoring requirements. Mt. Hope is a large-scale, high-grade molybdenum project located 23 mi northwest of Eureka, Nevada. The project has 1.3 billion lb of molybdenum in proven and probable reserves and an expected mine life of more than 40 years. Over the first five years of operations, the project is expected to produce approximately 40 million lb/y of molybdenum in concentrate. Stornoway Receives Renard Certificate of Authorization Stornoway Diamond Corp. announced in early December 2012 that it has received the global Certificate of Authorization for its 100%-owned Renard diamond project from the Québec Ministère du Développement Durable, de l'Environnement, de la Faune et des Parcs (MDDEFP). The certificate represents the principal regulatory approval required to begin mine construction and was issued following more than two years of formal environmental study, community engagement, and public consultation under the terms of the James Bay and Northern Québec Agreement. Stornoway President and CEO Matt Manson commented, "The MDDEFP global Certificate of Authorization is the most important element of the permitting process for mining projects in Québec. As of today, we are able to say that the principal regulatory hurdle for the Renard diamond project is behind us." The Renard diamond project is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. In November 2011, Stornoway released the results of a feasibility study that highlighted the potential of the project to become a significant producer of high-value rough diamonds over a long mine life. NI 43-101 compliant probable mineral reserves stand at 18 million carats, with a further 17.5 million carats classified as inferred and 23.5 million to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost is estimated at C$802 million, with a life-of-mine operating cost of C$54.71/mt, giving a 68% operating margin over an initial 11-year mine life. Positive Feasibility Study for Milestone Project Western Potash Corp. has received a positive feasibility study from AMEC Americas Ltd. for its 100%-owned Milestone primary and secondary potash solution mining project located about 30 km southeast of Regina, Saskatchewan. The study confirms that the property has 137 million mt of recoverable KCL in proven and probable reserves and describes a 40-year mining project having an ultimate production rate of 2.8 million mt/y of KCl at a product specification of 98.1% KCl. The Milestone feasibility study includes all facilities required to operate a potash solution mine, including cavern and wellfield layout; a two-train, multiple effect evaporization-crystallization plant; a dry processing plant; product storage; load out; and all other necessary site infrastructure. Power, natural gas, water and existing rail connections are readily available near the project. Initial capital to develop the Milestone project is estimated at C$2.91 billion. Operating costs are estimated at C$62.28/mt at full production capacity. The study assumes a 3.5-year construction period beginning in 2013, subject to financing and permitting approval. Mining would start in 2016 and ramp up to design capacity by 2022. Western Potash President and CEO Patricio Varas commented, "Our project is in an enviable, low-risk geopolitical and regulatory jurisdiction, which is a key advantage for developers who look for long-term investment predictability. The lower capital intensity of the project combined with the plant's efficient operations and high throughput produce a project with attractive rates of return and significant free cash flow." (Continued on p. 26) www.e-mj.com