Engineering & Mining Journal

SEP 2018

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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NEWS-LEADING DEVELOPMENTS 6 E&MJ • SEPTEMBER 2018 The orebody capacity provides confidence that the mine will continue to grow pro- duction in 2018 and a further growth is expected in 2019, the company said. Geotechnical issues in the high- er-grade area of Turmalina required mod- ifying the mining sequence in the second quarter of 2018. This resulted in lower ore tonnage and grade as mine produc- tion was redirected to a lower grade area. Lack of mining flexibility required mining stopes prior to completing ore control drilling which contributed to a lower than expected grade profile. Top priorities at Turmalina include mod- ifying the mining approach to minimize the number of unfilled open stopes. Converting from blind back stopes to cut-and-fill stop- ing below sill pillars to ensure minimal ex- posure from unfilled stope walls. It will also utilize top down drilling to ensure better quality control on drilling, reduce dilution, improve mining recovery, and allow backfill- ing with waste rock. The company will also strictly adhere to backfilling in the stoping cycle to reduce unfilled open stopes. It will also use better blasting techniques to re- duce vibration into the rock mass; improve ore control drilling, planning and execution to improve confidence in the ore production plan; and improve development planning and execution to give a high confidence in the mine production schedule. The paste backfill plant has been commissioned and paste backfilling has begun in the upper levels of the Turma- lina mine. In addition, a grade control program similar to Pilar has been imple- mented to reduce dilution. The revised mine plan and schedule for the remainder of 2018 has been re- viewed in detail, which will allow Jaguar Mining to achieve the updated 2018 guidance of 80,000 ounces to 85,000 ounces without any incremental costs. "We are optimistic that we will have a good second half of the year. We expect to meet our cost targets and production tar- gets, as well as improved operating cash flows," Guenther said. Leagold Implements Optimization Plans Leagold Mining reported second-quarter 2018 results and updated 2018 guid- ance for its four producing gold mines: the Los Filos mine in Mexico, which the company acquired in April 2017, and the Riacho dos Machados (RDM), Fazenda Brasileiro (Fazenda), and Pilar de Goias (Pilar) mines in Brazil, which were ac- quired in May. The company's consolidat- ed gold production in Q2 2018 totaled 64,517 ounces (oz), which include a full quarter of operations at Los Filos and the 38-day period of operations since acqui- sition at the three mines in Brazil (May 24-June 30). "We are pleased to have completed the acquisition of Brio Gold, and we are now focused on using our experienced operations team to identify and imple- ment short- and long-term optimizations at each of the mines," Leagold CEO Neil Woodyer said. "We are also reorienting each of the mines in Brazil into individual profit centers. Some of these changes will take time to deliver results. Woodyer said the company doesn't ex- pect to restart construction of Santa Luz until later this year or early next year. The company expects to produce ap- proximately 450,000 oz in the second half of this year. At the Los Filos mine, gold production in Q2 totaled 43,541 oz. Production was 15% lower than Q1 2018, primarily due to lower volumes of contained gold placed on the heap leach pads in Q1 2018. Pro- duction grades at the Los Filos Under- ground were 2-2.5 grams per mt (g/mt) lower than planned. At the RDM mine, gold production totaled 7,889 oz for the 38-day period following closing of the acquisition. Grades in Q2 averaged 1.27 g/mt and recoveries were 82%. Leagold recent- ly completed the power line permitting process and is now fast-tracking connec- tion to the national power grid expected in Q4 2018. The power line will replace the current lower capacity diesel pow- er generators and is expected to reduce costs, improve reliability, and facilitate increased mill throughput. At the Fazenda mine, gold production totaled 7,460 oz for the 38-day period following closing of the acquisition, at AISC of $891/oz Grades in Q2 averaged 1.93 g/mt and recoveries were 92%. Min- ing efficiencies are expected to improve with new equipment purchased in H1 2018 being delivered in H2 2018. At the Pilar mine, gold production to- taled 5,627 oz for the 38-day period fol- lowing closing of the acquisition, at AISC of $1,060/oz Grades in Q2 averaged 1.32 g/mt and recoveries were 94%. Produc- tion was impacted by an area of lower than anticipated grades. The mining se- quence has since been adjusted to priori- tize areas with higher grades. During Q2 2018 Leagold continued to advance the Bermejal Underground project at the Los Filos mine in Mexi- co. Development of the exploration por- tal and ramp construction continues on schedule, with more than 960 m of the planned 1,300 m of advance completed in the main ramp. Surface facilities at the underground portal and the first raise bore for ventilation are complete, and mine design and engineering is expected to be completed later this year. Studies are under way to evaluate overall process- ing alternatives at Los Filos, including the potential for a CIL plant. Miners scale loose rock from the back at the Turmalina mine.

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