Engineering & Mining Journal

JUL 2018

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NEWS-LEADING DEVELOPMENTS JULY 2018 • E&MJ 5 silver produced from the Horne 5 Project and properties within a 5 km area of in- terest will be subject to the transaction. Pursuant to the stream agreement, the company has agreed to pay a $2 million capital commitment fee. The fee is pay- able upon Osisko funding the third depos- it under the stream agreement. Closing of the silver stream transaction is expected to occur in September and is subject to the satisfaction of customary conditions, including obtaining regulatory approvals and approval from a majority of the minority shareholders of Falco. Pursuant to an agreement between Falco and Glencore Canada Corp., the Silver Stream Transaction is subject to a right of first refusal in favor of Glencore. Following the execution of binding term sheets between Falco and Osisko, a for- mal notice was sent to Glencore. Glencore has 60 days to notify Falco that it wishes to purchase the stream agreement. The closing of the debenture transac- tion was expected to occur at the end of June and is subject to receipt of all nec- essary regulatory approvals. Premier Begins 2 New Projects at South Arturo Premier Gold Mines announced that de- velopment programs initiated at the com- pany's South Arturo property, which is located in the Carlin Trend of Nevada, are moving forward with construction starting of both the Phase 1 open pit and the El Nino underground mine. The South Arturo Property is a joint venture between Premier (40% owner- ship) and Barrick Gold Exploration. Bar- rick is the operator and processes ore from South Arturo primarily at its Gold- strike facility located 5 km to the south. Construction of the Phase 1 open pit and the El Nino underground mine have been accelerated resulting in some pro- duction expected from both operations later in 2018, the company said. Addi- tional work will assess the potential of ad- ditional mining opportunities that include a Phase 3 pit and processing of heap- leach material from all pits. "With new mine developments being advanced ahead of schedule at South Arturo, the stage is set for a solid oper- ational future at this strategic property," said Ewan Downie, president and CEO, Premier Gold Mines. "Work continues on several additional opportunities that Langer Heinrich (above) produced more than 4 million lb of uranium in full-year 2017. Paladin Placing Langer Heinrich Uranium Mine on Care and Maintenance Paladin Energy is placing the Langer Hein- rich uranium mine in Namibia on care and maintenance. An initial rundown phase of up to three months began in late April, during which various stages of the plant are being progressively suspended and cleaned. Some continued production of finished uranium is ongoing during the run- down. When the rundown is complete, op- erations will be completely suspended, and the mine will be on care and maintenance. "The decision to place the Langer Heinrich mine into care and maintenance was not taken lightly, particularly because of its impact on our loyal employees and contractors, and the community in which we operate," the Paladin announcement said. "However, care and maintenance is the most logical decision to preserve the mine's valuable uranium resource and mitigate operating cash flow losses." The mine is expected to have a rela- tively low working capital requirement while in care and maintenance and a short lead time to resume operations. Paladin's internal analysis suggests that, absent external shocks, the uranium mar- ket appears set for normalization over the next few years. Since Langer Heinrich is one of the lowest-cost open-pit uranium mines in the world, it will likely be one of the first mines to return to production as the uranium market normalizes. Langer Heinrich has a nominal pro- duction capacity of 5.2 million lb/y of U 3 O 8 and produced 4.15 million lb in its 2017 fiscal year, to June 30, 2017, down 13% from the previous year's total of 4.8 million lb. The Langer Heinrich mine is located in the Namib Desert, 80 km east of the major seaport of Walvis Bay. The deposit was discovered in 1973 after a govern- ment-sponsored airborne radiometric sur- vey of the area. Between 1974 and 1980, General Mining Union Corp. (Gencor) undertook extensive evaluation work at the site but suspended work in the mid- 1980s, following a fall in the prevailing uranium price. Acclaim Uranium NL acquired the project from Gencor in 1998 and com- pleted a prefeasibility study in 1999- 2000. The project was again put on hold due to low uranium prices. Paladin ac- quired the project in August 2002 and brought it into production in early 2007. The Langer Heinrich mine is current- ly owned 75% by Paladin and 25% by CNNC Overseas Uranium Holding Ltd., a wholly owned subsidiary of China Nation- al Nuclear Corp.

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