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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REGIONAL NEWS - LATIN AMERICA JUNE 2019 • E&MJ 21 the opportunity demonstrated for the Alpala project and that it continues to grow. The unusually low operating costs modeled are due to the relative- ly soft, fractured nature of the ore, re- sulting in enhanced caveability, a high degree of fragmentation in the cave, and ease of crushing and millabili- ty, combined with low hydroelectric costs. The overall scale efficiencies also assist in the delivery of modeled low operating costs. "The low startup capex and high net present value signify outstanding financial metrics for a project of this nature, and outstanding modeled in- ternal rates of return of 24.8%-26.5% present an outstanding value proposi- tion for SolGold shareholders." SolGold holds an 85% registered and beneficial interest in the Cascabel project. Mosaic Fertilizantes Resumes Mining at Catalão Mosaic Fertilizantes, the Brazil-based business unit of The Mosaic Co., an- nounced it has resumed mining activ- ities at its Catalão mine in the state of Goiás. The mine is operating at full capacity. "We are pleased that Catalão has returned to full production," said Mo- saic President and CEO Joc O'Rourke. "We have continued to meet our cus- tomers' needs while Catalão and other mines have been idled, and we believe that we will return to full operation across our Brazilian mines by the end of the third quarter." The Catalão mine was idled for two months while the company worked to bring its mine tailings dam into compli- ance with new Brazilian regulation. In addition, the first of two dams at the company's Tapira mine received a certificate of safety. The second dam at Tapira is expected to receive its safety certificate during the third quarter, when the mine will return to full production. Newrange Gold Sells Colombian Assets Newrange Gold Corp. has negotiated an agreement with a private Austra- lian company, Andean Mining Corp. Pty Ltd., for the sale of the company's Colombian subsidiary, Corporacion Minera de Colombia (CMC) together with the El Dovio and Anori exploration projects. The transaction excludes the Yarumalito gold porphyry project, which Newrange said it plans to keep for the time being. "This agreement provides near-term non-dilutive financing, allows Newrange to focus its resources on the company's highly prospective Pamlico gold proj- ect in Nevada, eliminates the costs of maintaining the Colombian subsidiary and projects, and maintains exposure to the upside in each of these projects through share ownership and retained production royalties," said Robert Car- rington, chairman, Newrange. Subject to the completion of its due diligence, it will pay Newrange $1 mil- lion in staged payments within nine months together with certain other considerations. Mexican State Officials Offering to Mediate Work Stoppage at Peñasquito Authorities from the Mexican state of Zacatecas hope to mediate an agree- ment to end a two-month standoff be- tween Newmont Goldcrop's Peñasquito gold mine and a blockade formed by truckers and villagers from San Juan de Cedros, Reuters reported. "Our priority is that the mine resume its activities," said Jehu Salas, the sec- retary general of Zacatecas. The open-pit mine and San Juan de Cedros are located in one of Mexico's more arid regions. The protestors allege Peñasquito's operations caused the lo- cal water supply to dry up. The local truck drivers, who claim that the mine reneged on promises to give them work, linked with residents to block access to the mine starting on March 27. A month later, Newmont Goldcorp suspended operations at Peñasquito, which is costing Mexico tens of millions of dollars in revenue. Michael Harvey, director, corporate affairs, at Newmont Goldcorp Mexico, told Reuters that the firm wants to help solve any water issues in the communi- ty, but is "not willing to give into extor- tion disguised as a social issue." Peñasquito produced 272,000 ounc- es of gold in 2018, according to com- pany figures. The mine was part of the Goldcorp portfolio, which Newmont ac- quired recently. Newmont Goldcorp suspends operations at the Peñasquito mine (above) in Mexico due to blockade by villagers.

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