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 14 of 115

REGIONAL NEWS - U.S. & CANADA JUNE 2019 • E&MJ 13 up to 50 mt/d within the footprint of the current building structure. St. Barbara Acquiring Atlantic Gold St. Barbara Ltd. announced in mid-May it has entered into a friendly agreement to acquire Atlantic Gold Corp., which owns and operates the Moose River Consolidat- ed gold operation in Nova Scotia, Canada. St. Barbara is an Australian company headquartered in Melbourne. It owns and operates the Gwalia gold mine in Western Australia and the Simberi gold mine in Papua New Guinea. Gwalia is scheduled to produce between 235,000 ounces (oz) and 240,000 oz and Simberi is sched- uled to produce between 130,000 oz and 135,000 oz of gold during St. Barbara's fiscal year ending June 30. Atlantic Gold's Moose River operations include the Touquoy producing open-pit gold mine and three other pits in develop- ment: Beaver Dam, Fifteen Mile Stream and Cochrane Hill. Moose River declared commercial production from Touquoy in March 2018 and produced 91,000 oz during the year. Moose River has mineral resources of 2.4 million oz inclusive of mineral reserves of 1.9 million oz. Production is forecast to increase to more than 200,000 oz/y as the other three pits are developed. St. Barbara will acquire 100% of all outstanding Atlantic shares at an all-cash offer price of C$2.90 per share, implying a total equity value of C$722 million and a total enterprise value of C$802 million. The transaction excludes Atlantic's 36% interest in Velocity Minerals, which will be spun out to existing Atlantic shareholders following completion of the transaction. Atlantic Chairman and CEO Steven Dean will be invited to join the St. Bar- bara Board following completion of the transaction. St. Barbara is seeking to retain key Atlantic executives, who have and will continue to play roles in the successful development of Moose River. Further, St. Barbara intends to retain the current operating team, which has a track record of successful project development and operational delivery. EPA Announces Cleanup Plan for Bonita Peak The U.S. Environmental Protection Agen- cy (EPA) has released an Interim Record of Decision (IROD) to begin cleanup ac- tions at several mining-related sources at the Bonita Peak Mining District Super- fund site in San Juan County, Colorado. Under the IROD, the EPA will begin work this summer on interim cleanup actions at 23 source areas, with full completion of those actions expected over the next three to five years. The IROD will initiate cleanup actions at the site while the EPA conducts an on- going site investigation that will inform the development of a comprehensive cleanup plan, or a Final Record of Deci- sion, for larger and more complex sources of contamination at the site. "The EPA has worked diligently to identify a set of initial cleanup actions at locations that present clear human and environmental risks at the Bonita Peak Mining District Superfund site. We look forward to beginning work in these areas immediately," said EPA Regional Admin- istrator Gregory Sopkin. "These interim actions will help us move forward while we work with our partners, the commu- nity, and potentially responsible parties to investigate the more complex sources contributing to water quality impairment at the site." The interim remedial actions detailed in the IROD include reducing human ex- posure to metals at recreational areas; re- moving waste rock from historical mining activities from streams; diverting water from mine portals and around mine waste piles; maintaining sedimentation ponds; and reducing the amount of contaminant migration during storm events and spring snow melt. The EPA said it will prioritize work at several source areas in 2019, in- cluding at dispersed campgrounds and recreation staging areas that have been identified as posing a potential risk to human health. Additional remedial activ- ities are planned this year in the Cement Creek drainage. The IROD also includes responses to significant comments received during the June 21, 2018, to August 15, 2018, comment period for the proposed plan for interim remedial actions. Newrange Gold Rediscovers Good Hope Mine Ongoing underground mapping and sampling at Newrange Gold's Pamli- co project has identified the source of high-grade gold and silver in the his- toric Good Hope mine. Underground channel sampling of the exposed part of the mineralized zone yielded a weight- ed average of 13.89 grams per metric ton (g/mt) of gold and 71.19 g/mt silver over 40 meters (m) in the 5690 level of the mine. Including the adjacent foot- wall and hanging wall samples, which are also mineralized, the same 40 m av- eraged 4.96 g/mt gold and 42.24 g/mt silver and the zone is open along strike and down dip. One of several historic past-produc- ing mines that are part of the Pamlico gold project in Nevada, the Good Hope mine lies approximately 850 m southeast of the Merritt decline along the general trend of Pamlico Ridge. The Good Hope mineralization, like that found in the Pamlico mine and the Merritt Area, is intensely oxidized. The 7.9:1 silver-to- gold ratio is, however, much higher in the Good Hope samples than in the Pamlico mine and the Merritt Area, where it av- erages roughly 1:10. The 5690 level sil- ver-to-gold ratio is more typical of gold deposits throughout the Basin and Range province and indicates a potentially im- portant zone within this formation. "The rediscovery of the Good Hope mine mineralization is a very significant development for the Pamlico project," said Robert Archer, CEO, Newrange Gold. "With approximately 8,000 m of under- ground workings and 300 mine entranc- es within an area of about 1,500 m by 1,000 m, and no maps or production data to rely upon, the ability to make this kind of discovery almost 1 km away from our highly successful exploration in the Mer- ritt Area underscores the tremendous po- tential of the project." Newrange Gold's work to date has also traced similar mineralized structural zones with nearly identical attitudes in ar- tisanal mine workings extending easterly from the Good Hope mine for at least 1.7 km across the Pamlico property. Located 12 miles southeast of Haw- thorne, Nevada, along U.S. Highway 95, the Pamlico project covers the historic Pamlico group of mines, as well as the nearby Good Hope, Gold Bar and Sun- set mines. The district was discovered in 1884 and rapidly gained a reputation as being one of Nevada's highest-grade dis- tricts. Held by private interests for most of its history, the property remains under- explored in terms of modern exploration.

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