Contents of Engineering & Mining Journal - FEB 2012

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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GOLD MINERS ROUNDUP The largest Russian gold producer, Polyus Gold, has emerged with a great story.
mt/d design throughput remains on track for the end of the first quarter of 2012. With mining progressing deeper into the heart of the sulphide ore body, higher grades and throughput rates are expected to drive a significant production increase in the year ahead. An in-pit crushing and con- veying system will be commissioned in the second half of 2012. With expected pro- duction of 425,000 oz of gold, Peñasquito is forecast to become Mexico's largest gold producer and the company's largest gener- ator of cash flow in 2012.
The Los Filos mine in Guerrero state will continue to be a major contributor to Goldcorp's overall production profile in 2012. Gold production is forecast to in- crease slightly to 345,000 oz. Exploration success continues to support the potential for significant additions in gold reserves at Los Filos over the longer term.
At Marlin in Guatemala, production in 2012 will decline consistent with the planned transition to an exclusively under- ground operation as mining in the primary open-pit is now complete. Stockpiled material with an average grade of approxi- mately 1.1 g/mt is expected to make up approximately 40% of the mill feed at Marlin in 2012. The development of recent high grade discoveries in the West Vero zone will continue, with first production expected in the second half of 2012. Exploration success continues at the Delmy vein discovery adjacent to current underground mining operations. Access to the vein has been developed at three levels and two ventilation raises to the surface have been completed. Mining of the Delmy vein, which remains open along strike and at depth, began in late 2011 and is expected to contribute to Marlin produc- tion throughout 2012.
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The high grade Cerro Negro deposit is positioned to be the next source of new gold production for the company in 2013. The project includes several high-grade veins located on the low-elevation Patagonian plains of southern Argentina. With production expected to average approximately 550,000 oz of gold in its first five full years of production, Cerro Negro is well-positioned as Goldcorp's next cornerstone gold mine. Goldcorp's production profile is forecast to grow approximately 70% over the next five years to 4.2 million oz in 2016.
Polyus Gold Invests in More Production
Polyus Gold is the leading gold producer in Russia and one of the major producers of gold in Kazakhstan. For 2011, the compa- ny's total refined gold production increased by 8% year-on-year to 1.5 million oz—the fourth consecutive year of increased produc- tion. The company reported that its Blagodatnoye mine operated at its designed efficiency (85% recovery rate) and exceeded throughput capacity. The Verninskoye mine was commissioned in December. Ongoing modifications to Mill-2,3 at Olimpiada resulted in higher recovery. The development work for the Natalka mine is on track: pro- curement started (mills and plant equip- ment under way), camp construction to be completed by March 2012. Commissioning of the mine is expected in December 2013. Polyus Gold's flagship mine, Olimpiada, implemented a series of measures aimed at increasing the recovery efficiency of sul- fide ore and improving the bio-leaching process. A delay in the commissioning the final concentration step ofprimary concen- trate from gravity concentrate for Mills-2,3 (completed in December 2011) and diffi-
culty encountered in the commissioning of the second stage centrifuges introduced to dewater the biopulp at hydrometallurgical circuit of Mill-3, resulted in the expected recovery rate not being achieved. In 2012, Polyus Gold plans to spend $594 million to construct the Natalka mine. Of this figure, $314 million is expect- ed to be spent on procurement of the equip- ment for the plant and the mining fleet. As of late January 2012, the company already signed agreements for the delivery of the equipment for the total sum of approxi- mately $143 million. The group plans to complete contracting of the equipment in April 2012, so that key construction fleet to be delivered in April-June 2012. In 2011, the Olimpiada mine produced 566,000 oz of refined gold, compared to 585,000 oz in 2010. Gold output de- creased primarily due to the decline in aver- age grade. Mills-2,3 of Olimpiada mine were processing primary sulphide ore with an average grade of 3.43 g/mt, compared to ore with an average grade of 3.76 g/mt in 2010. The Blagodatnoye mine produced 363,000 oz of gold, compared to 253,000 oz in 2010. The 44% year-on-year increase in gold output reflects successful ramp-up of the mine, which was commissioned in July 2010.
The construction of the Verninskoye mine was performed in difficult conditions, according to Polyus Gold, when the princi- pal supplier of the project, FLSmidth Wiesbaden GmbH, failed to deliver equip- ment in time (flotation equipment, gravity concentrators, thickeners, etc). The 6 month-delay in shipment resulted in the mine's commissioning in a short circuit mode, which was not planned initially. During the first half of 2012 the plant is expected to produce gravity concentrate, which will be processed at an existing plant at the Zapadnoye mine. As of late January 2012, 98% of the project equipment had been shipped and is expected to be on mine site in March 2012.
Harmony Sells Evander South Africa's Harmony Gold Mining Co. Ltd. posted record profits in 2011. "The strength of the gold price together with improved operational efficiency supported our results," said Graham Briggs, CEO, Harmony Gold. "As our growth projects come on stream, and our existing mines operate to tailored business plans, we remain confident of reaching our long- term targets."
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