Engineering & Mining Journal

JUN 2018

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 24 of 115

REGIONAL NEWS - LATIN AMERICA JUNE 2018 • E&MJ 23 FEEDING Instead of a fixed-distribution system, the paste is piped to an underground bay where it is delivered to the stopes by truck. The company believes that this al- ternative will result in lower capital and operating costs and more operational flex- ibility with a similar production profile. As tonnage and grade continue to improve, Red Eagle has forecast gold production to grow steadily to 4,000 to 5,000 ounces per month over the remain- der of 2018. Avanco Accepts Oz Minerals Offer Each director and key management per- sonnel of Avanco Resources Ltd. recently accepted the off-market cash and scrip of- fer by OZ Minerals Ltd., through its wholly owned subsidiary OZ Minerals Brazil Pty Ltd. (OZ Minerals), for all their shares in Avanco. The takeover bid was announced in March. Under the offer, Avanco share- holders will receive A$0.085 and 0.009 OZ Minerals shares for every 1 Avanco share held. "Avanco shareholders will continue to have exposure to Avanco's exciting asset portfolio in Brazil and OZ Miner- als is strongly supportive of the Avanco management team's Brazilian develop- ment strategy," Managing Director of Avanco Tony Polglase said. "The com- bination of OZ Minerals' robust Austra- lian asset portfolio, experienced team and strong balance sheet with Avanco's largely undeveloped, high-quality Brazil- ian asset portfolio provides for a prom- ising future for the combined entity and its shareholders." OZ Minerals is an Australian-based mining company with a focus on cop- per and owns and operates the cop- per-gold-silver mine at Prominent Hill. It is also developing one of Australia's largest copper-gold resources at Carrapateena. Barrick Will Convert Pueblo Viejo Plant to Natural Gas Barrick Gold Corp. announced that Pueb- lo Viejo Dominicana Corp. (PVDC), opera- tor of the Pueblo Viejo mine, has signed a 10-year natural gas supply contract with AES Andres DR S.A. in the Dominican Republic that will enable the conversion of the Quisqueya I power generation fa- cility from heavy fuel oil to natural gas. PVDC is a joint venture between Barrick (60%) and Goldcorp Inc. (40%). Quisqueya I supplies power to the Pueblo Viejo mine. Converting the facility from heavy fuel oil to natural gas is ex- pected to reduce the mine's average cost of sales and all-in sustaining costs by ap- proximately $54 per ounce over the life of the mine, supported in part by higher margins on the sale of excess power to the national energy grid, the company said. "Pueblo Viejo is already a core asset with industry-leading margins and a strong track record of operational excellence," said Greg Walker, senior vice president, operational and technical excellence. "Converting the mine's power plant to natural gas is expected to reduce Pueblo Viejo's cost structure and drive incremen- tal improvements in cash flow over the life of the mine, driving additional long-term value for our owners, as well as our gov- ernment and community partners." PVDC will invest roughly $7.5 million to convert Quisqueya I to natural gas, an investment that significantly exceeds Barrick's 15% hurdle rate. AES will con- struct a new gas pipeline to the facility, with commercial gas production expected to begin in the second half of 2019. Barrick is currently advancing prefea- sibility-level studies for a plant expansion at the Pueblo Viejo mine that has the po- tential to significantly increase through- put at the operation. Conversion of the power plant to natu - ral gas is anticipated to further strength - en the economics of the project. Leagold Completes Acquisition of Brio Gold Leagold Mining Corp. announced the completion of its acquisition of Brio Gold Inc. Peter Marrone, chairman and CEO of Yamana Gold Inc., has been appointed to the Leagold Board of Directors. At closing, Yamana became Leagold's largest share- holder holding 58,115,954 shares repre- senting approximately 20.5% ownership. Neil Woodyer, Leagold CEO, said, "We are very excited about Leagold's new po- sition as a midtier gold producer with the growth of our production rate to more than 400,000 ounces per year (oz/y). Our busi- ness and market profiles are strengthened by our diversification in both Mexico and Brazil and across four operating mines. Leagold's measured and indicated re- sources have increased to 16.4 million oz and proven and probable reserves have in- creased to 5.6 million oz, Woodyer added.

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