Engineering & Mining Journal

NOV 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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REGIONAL NEWS - LATIN AMERICA 18 E&MJ • NOVEMBER 2018 www.e-mj.com gold mine Amapá state, northern Brazil in a mutually agreed acquisition. Great Panther is a primary silver mining and exploration company headquartered in Vancouver, British Columbia. It has two wholly-owned operating mines in Mexico: the Guanajuato mine complex in Guana- juato state and the Topia mine in Durango state. The company also is moving toward a decision to restart the Coricancha mine in Peru with the initiation of a bulk sample program following completion of a positive preliminary economic assessment in May. Beadell is an Australian company headquartered in West Perth, Western Australia. Its Tucano mine is located on an approximate 2,500-km 2 land package in under-explored, Birimian-age green- stone terrane. Production in 2018 is forecast at 130,000 ounces (oz) of gold, increasing to 169,000 oz in 2019 fol- lowing completion of a processing plant expansion. Beadell also has a pipeline of high-potential in-mine and near-mine re- source growth opportunities at Tucano. Production at Great Panther's Guana- juato mine complex in 2018 is forecast at 1.4 million oz of silver and 20,000 oz of gold; production at the Topia mine is fore- cast at 600,000 oz of silver and 1,000 oz of gold. The Coricancha project in Peru has the potential to generate average annual production of 3.1 million silver-equivalent oz, based on the results of a preliminary economic assessment completed in May. Great Panther's all-share acquisition values Beadell at about $105 million. The companies expect the transaction to close in January. Current Beadell share- holders will own approximately 38% of the combined company. "This is a transformational transaction for the shareholders of Great Panther and Beadell," James Bannantine, president and CEO of Great Panther, said. "Great Panther has grown and optimized its operations in Mexico, acquired and advanced its Corican- cha project in Peru, and is now positioned to add a sizeable producing mine in Brazil with exceptional exploration potential. "Great Panther brings the capital to deliver on Tucano's substantial near- and long-term resource growth potential and to continue mine optimization initiatives. The combination of assets, capital, and management provides a unique oppor- tunity to unlock a significant re-rating potential for the benefit of Great Pan- ther's existing shareholders and Beadell's shareholders, who will gain a meaningful interest in Great Panther." Anglo American Earning Into Luminex Project Luminex Resources has signed a formal earn-in and joint-venture agreement with a subsidiary of the Anglo American relating to Luminex's Pegasus A, Pegasus B, and Luz concessions in Ecuador. Anglo American has the right to earn a 60% ownership in- terest in a joint-venture company indirectly holding the properties if it invests an aggre- gate of $50 million and makes $7.3 million of cash payments over a seven-year period. Anglo American will have the right to earn an additional 10% ownership inter- est in the joint venture by sole funding all required work up to a decision to con- struct a mine at the properties, taking its aggregate ownership to 70%. Thereafter, Luminex would be responsible for fund- ing its 30% pro rata share of any capital required to develop and construct a mine at the properties, or a 40% pro rata share if Anglo American does not exercise the right to acquire the additional 10%. Preparations are under way to contin- ue exploration activity on the properties, with Anglo American acting as manager and operator. Subject to permitting, Anglo American plans to fly an airborne mag- netic ZTEM survey over the concessions during the first year of the agreement. Luminex Resources was created on August 31 as a spin-out company to house the Ecuador resources of Lumina Gold not related to Lumina's Cangrejos gold-copper project. Luminex's Condor gold-copper project in Zamora-Chinchipe province, southeast Ecuador, hosts 63.8 million metric tons (mt) of indicated re- sources at grades of 0.68 grams/mt gold, 4.5 g/mt silver, and 0.03% copper and inferred resources of 144.5 million mt at grades of 0.54 g/mt gold, 1.7 g/mt silver, and 0.08% copper. Evrim Receives Permit and Mobilizes Drill Crews to Cuale Evrim Resources received its permit to conduct drilling at the Cuale gold project in Jalisco, Mexico, and crews are on site to commence the program. The company has planned a minimum 3,000-meter (m) diamond drilling program comprising be- tween 10 to 15 drill holes. "The first drill holes at Cuale are planned at La Gloria to test the depth ex- tent of the high-grade gold mineralization encountered in trenches 1 and 4, followed by other high-priority drill targets through- out the trenched area," said Stewart Har- ris, vice president of technical services for Evrim. "Drilling is also planned at four step- out areas to test geophysical targets within the anomalous gold in soil geochemical and rock chip halo, including the North Dome, which extends up to 1,000 m north of the trenched area. This drilling program rep- resents a significant milestone for Evrim." The Cuale project is 100% owned by Evrim and comprised of a 232-km 2 prop- erty prospective for high-sulphidation ep- ithermal gold mineralization. The project is located 185 km west of Guadalajara and 35 km southeast of Puerto Vallarta in the Cordillera Madre del Sur. Regionally, the project is located within the Talpa de Allende area of Jalisco near Agnico Eagle Mines' Barqueño project (645,000 oz gold and 38 million oz silver) and Endeavour Silver's Terronera project (436,000 oz gold and 42 million oz sil- ver). The area is close to infrastructure with roads and powerlines crossing the property. Beadell's Tucano mine is projected to produce 130,000 ounces of gold in 2018.

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