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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NEWS-LEADING DEVELOPMENTS 6 E&MJ • APRIL 2019 Premier Gold Sells Several Properties Premier Gold Mines Ltd. has divested sev- eral non-core properties in four different transactions. Eight properties and one subsidiary has been sold or is optioned for total consideration of US$2.1 million. The related properties include the Geisler Property, located in the Red Lake district of Ontario, the Faymar Property in Tim- mins, Ontario, and the Santa Teresa Prop- erty, located in Baja, Mexico. The company also entered into an option agreement for the sale of Goldstone Resources Ltd., the subsidiary that holds the historic Northern Empire, Leitch and Sand River Mines, as well as other exploration-staged projects in the Beardmore, Ontario, region. Premier said it remains focused on creating a low-cost, midtier gold pro- ducer through its two producing gold mines — South Arturo and Mercedes — as well as mine development oppor- tunities at McCoy-Cove in Nevada and Hardrock in Ontario. In related news, the company said it has entered into an option acquisition agreement with Americas Silver Corp. to acquire an option to purchase a 100% interest in the San Felipe Property, lo- cated 55 kilometers from the company's Mercedes Mine in Sonora State, Mexico. Hochschild plc is the underlying owner of the San Felipe Property. The San Felipe Property consists of sev- eral claim groups that comprise 16,265 ha with several poly-metallic zones that hosts a high-grade historic mineral resource. San Felipe is partially developed with an exist- ing ramp and several mining related facili- ties already constructed on-site. There has also been 69,000 meters drilled on the property and several existing deposits are open for expansion, according to Premier. The company plans to assess potential development options, which may include adding a parallel floatation circuit at Mer- cedes to increase annual output in the near-term; building a stand-alone mill at San Felipe; and bringing San Felipe into development at the end of the Mercedes mine-life and processing mineralized ma- terial at the existing complex. Jervois Mining, eCobalt Will Combine Jervois Mining Ltd. and eCobalt Solutions Inc. have entered into an arrangement to combine. In the transaction, Jervois will acquire all of the issued and outstanding common shares of eCobalt that Jervois does not already own. On January 22, Jervois announced it would complete an at-market merger with M2 Cobalt Corp. by acquiring all of the shares of M2 Cobalt. The M2 Cobalt Merger will proceed as previously an- nounced and is expected to be completed in advance of the Jervois transaction. After closing of the M2 Cobalt merg- er, the board of directors of the pro for- ma company will consist of three nomi- nees from Jervois and two nominees from eCobalt. Existing Jervois Chairman Peter Johnston and CEO Bryce Crocker will con- tinue in their existing roles in New Jervois. Dundee Resources Ltd. has agreed to subscribe for approximately 6.3 million units for aggregate gross proceeds to eCo- balt of approximately C$2 million. The transaction will result in the issue of approximately 262.4 million new Jervois common shares and, if all eCobalt options and warrants were to be exercised, a further 47 million new Jervois common shares. Upon completion of the transaction and after taking into effect the Dundee Place- ment, ownership of the combined compa- ny will be approximately 40% Jervois, and 47% eCobalt, M2 Cobalt will retain 11%. Lynas Rejects Wesfarmers $1.5B Takeover Bid Lynas Corp., the largest rare earth metals producer outside of China, said no thank you to an unsolicited bid of A$1.5 billion from Wesfarmers. The board said it had evaluated the A$2.25/share proposal and thought it undervalued the company. The company operates the Mount Weld Mine in Western Australia, which ships concentrate to Lynas's processing facility in Malaysia. The company has been producing a re- cord amount of rare earth oxides (REOs) and exporting them to Japan, South Ko- rea and North America. In FY2018, Lynas sold 17,672 metric tons (mt) of REOs, which generated A$383 million, a con - siderable increase from 14,616 mt REOs and A$260.4 million in FY2017. The Mount Weld Central Lanthanide Deposit (CLD) is one of the richest rare earth deposits in the world. Mount Weld also hosts several undeveloped deposits. Lynas processes the CLD ore at the Mount Weld concentration plant to produce a rare earth concentrate that is sent for further refining at the Lynas Advanced Material Plant (LAMP) near Kuantan, Malaysia. LAMP faces possible closure in September if Lynas cannot reach an agreement with the government regarding a permanent disposal facility at the Malaysian site. The company believes it will find a solution. Commissioned in mid-2011, the Mount Weld Concentrator is a flotation plant designed to process 240,000 mt per year (mt/y) of ore to produce up to 66,000 mt/y of concentrate containing 26,500 mt of REO. The LAMP has been designed and built in two phases, with full Phase 2 ca- pacity capable of producing up to 22,000 mt/y of separated REO products. Commis- sioning of the LAMP started in late 2012. Currently, the most valuable product pro- duced at the LAMP is praseodymium/neo- dymium (NdPr). LAMP has been operating at approximately 75% of its NdPr produc- tion capacity since 2015 with three out of four solvent-extraction trains in operation. eCobalt's fully permitted Idaho Cobalt Project (above), is in the heart of the Idaho Cobalt Belt. (Photo: eCobalt)

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