Engineering & Mining Journal

APR 2019

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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Page 23 of 83

REGIONAL NEWS - EXPLORATION ROUNDUP 22 E&MJ • APRIL 2019 Hudbay Intersects High Grade Near Lalor Mine in Manitoba Hudbay Minerals has intersected 35.6 meters (m) of high-grade mineralization, including both zinc-rich massive sulphi- des and gold, during exploration drilling between its old Chisel North mine and producing Lalor mine in Manitoba. The property is 100% owned by Hudbay. The drill intercepts occurred at downhole depths of between 540.7 m and 576.3 m, less than 1,000 m from the existing active ramp between Chisel North and Lalor. The location is within trucking distance to surface and the crushing station at Chisel North and within 15 kilometers (km) of the Stall concentrator in Snow Lake, Manitoba. Two drills are continuing to operate in the immediate vicinity of the initial discovery to further confirm the conti- nuity and lateral extent of the mineral- ization, while also testing a recently re- interpreted electromagnetic conductive plate west of the two recent intercepts. Depending on the success of this drill- ing, Hudbay expects to develop an ex- ploration drift off the ramp from Chisel North to the Lalor mine to allow the new discovery to be drilled from an under- ground platform. Hudbay President and CEO Alan Hair said, "These zinc-rich and gold-rich in- tersections highlight the ever-prospective nature of the Flin Flon greenstone belt and demonstrate the value of our Mani- toba assets. The discovery of these new zones within close proximity to our exist- ing infrastructure and at shallow depth aligns very well with our Manitoba strat- egy and is another example of leveraging our exploration expertise to realize addi - tional value. "We look forward to continuing to drill this new discovery, while advanc- ing exploration activities in the gold and copper-gold zones at Lalor and in the broader Snow Lake camp as we pursue our strategy over the next several years to maximize the value of our Manitoba assets and extend both base metal and gold production at Lalor beyond its cur- rent mine life." ( Exploration Briefs Greatland Gold has signed a farm-in agree- ment with Newcrest Mining to explore and develop Greatland's Havieron gold-copper project in the Paterson region of Western Australia. Newcrest has the right to ac- quire up to a 70% interest in 12 blocks that cover the Havieron target by spending up to $65 million and completing a series of exploration and development milestones in a four-stage farm-in over six years. After meeting these milestones, New- crest has the option to acquire an addi- tional 5% interest at fair market value, taking its interest to 75%. Newcrest must incur expenditure of not less than $5 million within 12 months of receiving all required regulato- ry and heritage approvals. Newcrest will act as manager during the farm-in period. Drilling at Havieron was scheduled to begin in April, subject to receiving the required approvals. Subject to a positive feasibility study outcome, the current intention of both com- panies is that the ore from the proposed Havieron joint venture will be toll processed at Newcrest's Telfer mine, approximately 45 kilometers (km) west of Havieron. ( B2Gold has budgeted $43 million for exploration in 2019, focusing mainly on West Africa and around the company's mines, but also including approximately $8 million for grassroots programs. Exploration is budgeted at $18 million on licenses in Mali, where B2Gold will con- tinue ongoing drilling to upgrade inferred resources at the Fekola mine and will fur- ther explore through drilling the potential to the north and west of Fekola. Infill drilling of approximately 25,000 m of diamond drilling has begun. Results from the 2019 drilling and from previous drill results will be utilized to calculate new probable miner- al reserves for the extended Fekola deposit. The new Cardinal target less than 1 km west of the Fekola pit will also be fur- ther drill tested. B2Gold recently completed a prelim- inary Fekola expansion study to evaluate the potential to expand the Fekola mine and mill from a base case of 6 million metric tons per year (mt/y) of ore through- put to 7.5 million mt/y. The results of the study indicate robust economics for the proposed 7.5-million mt/y expansion, with estimated capital costs of $50 million. B2Gold's 2019 exploration budget for its El Limon mine in Nicaragua stands at $3 million to support 3,300 m of planned diamond drilling. The program will focus on drilling the northern extension of the El Limon Central zone and other targets identified on the property. The Central zone is open at depth, indicating the potential to mine ore from underground once open-pit mining is completed. ( Freegold Ventures has entered into an agreement with South32 whereby South32 can earn a 70% interest in Freegold's Shorty Creek property 120 km northwest of Fairbanks, Alaska. To maintain the op- tion in good standing, South32 must con- tribute minimum exploration funding of $10 million over a four-year option period, with minimum exploration expenditures of $2 million each in years one and two and $3 million each in years three and four. Provided all exploration data and in- formation have been made available by December 31 of each year of the option agreement, South32 will decide within 30 days whether to fund a further tranche. The first-year expenditure of a minimum $2 million is a firm commitment. South32 may exercise its option at any time following year one to subscribe for 70% of the shares of a newly formed project company by committing $30 mil- lion to the newly formed company, less the amount of exploration expenditure contrib- uted by South32 during the option period. Freegold will act as the operator of the project during the four-year option period and will provide annual reports and budgets to a technical committee formed by Freegold and South32 for the purpose of reviewing and approving each year's program. (

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