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 26 of 115

REGIONAL NEWS - AUSTRALIA/OCEANIA JUNE 2019 • E&MJ 25 (SML) on August 16. While in the country, Bristow also held meetings with Enga Gov- ernor Sir Peter Ipatas, Porgera landowners, and other stakeholders. An application to extend Porgera's SML for a further 20 years is currently in progress. Bristow said Porgera was an important long-term asset for PNG as well as the mine's owners, Barrick Gold Corp. and Zijin Mining Group. "The proposed extension to its lease will allow the mine to remain productive for at least another 20 years," Bristow said. "To sustain mine operations, however, it will require a sig- nificant capital injection, and it is difficult to justify that kind of investment without the security of an extended mine lease." Located in the Enga Province of Pap- ua New Guinea at an altitude of 2,200 m to 2,700 m, Porgera employs more than 3,300. Since pouring its first gold in 1990, Porgera has paid more than $1.1 billion in taxes and $297 million plus $178 million in equity cash payments and royalties respectively to the provincial government and customary landowners. Porgera is a joint venture between Bar- rick and the Zijin Mining Group, which each owns 47.5%, with the remaining 5% interest being held by Mineral Re- sources Enga (owned equally by Porgera SML Landowners and the Enga Provincial Government). The mine is operated by Barrick (Niugini) Ltd. Mincor Acquires Long Nickel From Independence Group Mincor Resources NL has entered into a binding agreement with Independence Group NL to acquire the Long Nickel Op- eration, located in the Kambalda District in Western Australia, in a transacton val- ued at $A 9.5 million. Located near Mincor's Durkin and Ken/ McMahon deposits, Long is an under- ground nickel sulphide mine with a pro- duction history dating back to 1979. Fol- lowing 16 years of consistent production (approximately 10,000 mt/y of nickel), it was placed into care and maintenance by Independence in June 2018. Long has been well-maintained since then, with all key mining infrastructure and assets in place and the underground mine remain- ing de-watered and ventilated. The acquisition further consolidates Mincor's land holdings in the Kambalda District, adding a significant new leg to its extensive nickel sulphide portfolio and to its plans to restart nickel production, which continue to gain strong momentum. Mincor Managing Director David Southam said, "This is a well-timed strategic opportunity for Mincor, which represents a value-accretive and logical consolidation step in the context of our broader plans to restart high-grade nickel sulphide mining in the Kambalda District. "As well as expanding our strategic footprint on the North Kambalda Dome, the acquisition of the fully maintained mine infrastructure at Long opens up opportunities to exploit the existing high- grade mineral resource, which contains 32,000 mt of nickel and provides poten- tial to enhance capital and operational efficiency by accessing our nearby Durkin North ore reserve from the Long decline. "Long also offers exciting near-mine resource and exploration opportunities in- cluding potential extensions of the high- grade nickel channels such as Moran South, Victor and Gibb, and a new lightly drilled upper channel position which may be contiguous with our Durkin Project area. "We intend to pursue these opportuni- ties to grow the resource base in the high- ly prospective and under-explored area adjacent to Independence's and Mincor's tenement boundaries, leveraging off un- derground exploration platforms that can be established with any development drives to access Durkin North from Long." Mincor is focused on its nickel restart strategy, which will result in the delivery of a DFS for an integrated mine plan oper- ation during the December quarter, which may include potential synergies and min- ing inventory from Long. Part of the DFS work program involves identifying the lo- cation and finalizing the design for the box-cut at Cassini, further metallurgical test work and underground mine design. Another element of the restart strate- gy is to continue the recent momentum of the drilling program at Cassini, which recently yielded a substantial increase in the mineral resource. The company be- lieves it also needs to continue to develop its project pipeline that will ultimately support the continuity of operations, and this acquisition supplements Mincor's strategic objectives. Surveyors study a highwall at the Porgera mine in Papua New Guinea. A drawing shows the conceptual connection of channelized structures between the Durkin and Long orebodies.

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