Engineering & Mining Journal

JUN 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 13 of 115

REGIONAL NEWS - U.S. & CANADA 12 E&MJ • JUNE 2019 Alamos Gold Receives Phase II Expansion Permit for Island Gold Alamos Gold Inc. has been granted amendments to its existing operational permits from the Ministry of the Environ- ment, Conservation and Parks, Ontario, allowing for the Phase II expansion of the Island Gold Mine to 1,200 metric tons per day (mt/d). These amendments were received ahead of schedule and will allow underground mining and mill throughput rates to increase from the previously per- mitted rate of 1,100 mt/d. Island Gold's underground operations are accessed via a ramp system. The primary mining method is longitudinal retreat long-hole stoping. Ore is hauled by truck to the Kremzar mill located ap- proximately 0.8 kilometers (km) from the portal of the ramp. The mine is expected to produce between 135,000 ounces (oz) and 145,000 oz of gold in 2019 at an all-in sustaining cost of $730-770/oz. Underground mining rates are ex- pected to increase to 1,200 mt/d in 2020. The company said it will look for opportunities to ramp up mining rates to 1,200 mt/d before the end of 2019; however, 2019 guidance for pro- duction and costs is unchanged. With a mine and mill that can both support throughput rates of 1,200 mt/d, no ad- ditional capital will be required for the Phase II expansion. At the same time, the company is con- tinuing with a large ongoing exploration program at Island Gold, which has been successful in driving significant growth in mineral reserves and resources the last several years. This growth and ongoing exploration success, according to Alam- os, is being incorporated into a Phase III expansion study beyond 1,200 mt/d. The study is expected to be completed over the next year. Glencore Will Support Restart of Cobalt Refinery First Cobalt Corp. and Glencore AG have signed a memorandum of understanding to supply cobalt feedstock and financing to recommission the First Cobalt Refinery in Ontario, Canada. First Cobalt and Glen- core will collaborate on final flowsheet design to accelerate the restart of North America's only primary cobalt refinery. Glencore intends to provide feed- stock for the refinery, which is expect- ed to result in annual production of ap- proximately 2,000 to 2,500 metric tons per year (mt/y) of cobalt in sulfate from the refinery. Glencore will evaluate making a loan to fund the capital requirements to re- commission the refinery and will enter into a tolling agreement with First Cobalt. The refinery could be operational in 18-24 months and discussions are under way with provincial government officials to identify opportunities to streamline and accelerate the permit amendment process. "The partnership announced today will help First Cobalt achieve its stated objective of providing ethically sourced battery-grade cobalt for the North Ameri- can electric vehicle market," First Cobalt President and CEO Trent Mell said. "As the world's leading producer of cobalt, Glencore is an ideal partner for First Cobalt. Our shareholders will benefit from Glencore financial backing, tech- nical support and opportunities for re- gional synergies with their Sudbury and Rouyn-Noranda operations." This announcement marks the culmi- nation of one year's work, Mell said. A final decision on whether to put the First Cobalt Refinery back into production has not been made and any decision is contingent on the outcome of the ongoing discussions and studies. The First Cobalt Refinery is the only permitted primary cobalt refinery in North America. The company recent- ly completed testing of third-party co- balt hydroxide as a potential source of feed, confirming the existing processes in the First Cobalt Refinery are capable of producing a high-purity, battery-grade cobalt sulfate. With no cobalt sulfate production in North America, the First Cobalt Refinery has the potential to become the first such producer for the American electric vehicle market. The First Cobalt Refinery is a hydro- metallurgical cobalt refinery in the Ca- nadian Cobalt Camp, approximately 600 kilometers from the U.S. border. A study completed in 2018 by Prim- ero estimated that under a 24-metric- ton-per-day (mt/d) base-case scenario, the refinery could be recommissioned for approximately US$30 million. The study also considers an expansion scenario of Located in Ontario, the Island Gold mine is one of Canada's highest grade and lowest cost gold mines.

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