Engineering & Mining Journal

SEP 2018

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REGIONAL NEWS - U.S. & CANADA 10 E&MJ • SEPTEMBER 2018 www.e-mj.com engineering and any required permit amendments, as well as plans for build- ing the owner's team in preparation for the construction and operational readi- ness phases of the project. Construction is expected to take about 24 months. Gold Bar Mine Will Be Completed in 2018 Construction of McEwen Mining's Gold Bar mine is on track for completion in 2018, and commercial production is expected to begin in the first quarter of 2019. Activity at Gold Bar has reached full capacity with more than 200 contrac- tors on-site daily. Open-pit mine develop- ment is well under way and key process facilities are all under construction. The company has commenced gold re- covery plant structural steel and process equipment installation; continued heap- leach pad construction (about 50% com- plete); first generator on site, two more will be dispatched in September; crush - ing plant installation complete, convey- or installation continues; and continued mine waste stripping and ore stockpiling. McEwen's principal assets consist of the San José mine in Santa Cruz, Argenti- na (49% interest), the El Gallo Gold mine and El Gallo Silver project in Mexico, the Black Fox mine in Timmins, Canada, the Gold Bar mine in Nevada, currently under construction, and the large Los Azules copper project in Argentina, advancing toward development. Teck Sells Waneta Dam Interest to BC Hydro Teck Resources announced in late July the sale of its two-thirds interest in the Waneta Dam in British Columbia, Can- ada, to BC Hydro for $1.2 billion cash. The dam is located south of Teck's Trail, British Columbia operations and has sup- plied power to the operations since it was constructed in 1954. BC Hydro acquired an initial one-third interest in 2010. Teck's sale of its two-thirds interest in the dam has received necessary regu- latory approvals and consents, including approval by the BC Utilities Commission. Teck will record an after-tax gain of ap- proximately $820 million as a result of the sale, with no cash tax payable on the proceeds. As part of the sale agreement, Teck will hold a 20-year lease to use two-thirds of the power generated at the Waneta Dam for its Trail operations. Annual pay- ments by Teck will begin at approximately $75 million per year and escalate at 2% per year, equivalent to an initial power price of $40/MWh based on 1,880 GWh of energy use per year. Teck has an option to extend the lease for a further 10 years at comparable rates. Teck's Trail operations include one of the largest fully integrated zinc and lead smelting and refining complexes in the world. The metallurgical operations pro- duce refined zinc and lead, a variety of precious and specialty metals, chemicals, and fertilizer products. Refined zinc pro- duction in 2018 is forecast at 305,000 to 310,000 mt; refined lead production is forecast at 65,000 mt; silver production is forecast at 14 million oz. Coeur Mining to Buy Northern Empire Resources Coeur Mining has agreed to acquire Northern Empire Resources Corp. by pur- chasing all outstanding shares not cur- rently owned by Coeur for approximately $90 million. Northern Empire's princi- pal asset is the Sterling gold project lo- cated in Nevada, which consists of four high-grade heap-leachable deposits with a total inferred gold resource of approx- imately 709,000 ounces (oz) averaging 2.23 grams per metric ton (g/mt) located on a 143-km² land package approximate- ly 185 kilometers (km) from Las Vegas within the historic Walker Lane trend. The high-grade Sterling gold deposit is a fully permitted, past-producing mine with near- term, low-cost, low-capital production po- tential. The remaining deposits are collec- tively known as the Crown Block, which contain significant exploration potential, and the land package also includes 17 new targets that remain untested. The ac- quisition adds multiple high-grade oxide gold deposits to Coeur's evolving devel- opment pipeline that have the potential to become future long-life, low-cost oper- ating assets. It also expands Coeur's his- torical focus on Nevada, considered one of the world's top mining jurisdictions. Coeur said it will be focused on a quick restart of the Sterling mine while aggres- sively exploring the highly prospective Crown Block and other targets. Nothern Empire's Sterling gold project consists of four high-grade heap-leachable deposits.

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