Global projects and exploration
successfully operated Fort Knox ’ s current heap leach during the past 10 years .
The project plan requires minimal construction of new infrastructure and new equipment purchases and has been optimised for lower initial capital costs . This includes continuing to mine using Fort Knox ’ s current fleet and leveraging assets from the company ’ s other North American operations as replacement equipment is required . Kinross expects to finance the initial capital costs of the project using Fort Knox ’ s cash flow .
Early construction work on the new heap leach and dewatering is expected to begin in quarter three of 2018 , with stripping commencing in 2019 . Initial production from Gilmore is expected in early 2020 , with approximately 5 % of Gilmore ore expected to be stacked on the existing pad . About 95 % of Gilmore ore is expected to be stacked on the new heap leach pad , with stacking commencing in late 2020 . Currently , milling at Fort Knox is expected to end in late 2020 .
China Rio Tinto continues Asian growth
Rio Tinto has partnered with Chinese company Minmetals to form a 50:50
joint venture that will explore for worldclass mineral deposits in China . According to J-S Jacques , CEO at Rio Tinto , Minmetals is an increasingly important player in the global mining industry . “ Our complementary strengths in exploration put us in the best possible position to find metals and minerals essential to human progress ,” says Jacques .
China Minmetals Corporation president Guo Wenqing said , “ The collaboration is very significant to Minmetals . Rio Tinto has rich prospecting experience and great discoveries worldwide , while Minmetals has solid technical expertise and extensive experience — the two strong partners will drive breakthroughs , pioneer progress , and promote the exchanges and collaboration of the global resource industry ,” says Wenqing .
Argentina Cap-Oeste on optimisation drive
Patagonia Gold — the mining company with gold and silver projects in the southern Patagonia region of Argentina , Chile , and Uruguay — has released an update on the company ’ s production for quarter one 2018 at its Cap-Oeste project in Argentina .
During this period , production at Cap-Oeste totalled 10 662 ounces ( oz ) gold and silver at an average cash cost of USD693 / oz and USD756 / oz , including depreciation and amortisation .
According to a press release , the team at Cap-Oeste continues with efforts to optimise the production process , while the installation of the new crushing circuit to reprocess the material already stacked on the leach pad is completed .
Patagonia is using the proceeds from gold sales at Cap-Oeste to complete the payment of the new crushing circuit , as well as reduce its net debt position .
Patagonia is primarily focused on its flagship Cap-Oeste project in Santa Cruz and the recently acquired Calcatreu project in Rio Negro . In addition , it is carrying out exploration in Manchuria and Sarita in Argentina and San Jose in Uruguay .
Patagonia Gold , indirectly through its subsidiaries or under option agreements , has mineral rights to more than 220 properties in several provinces of Argentina , Chile , and Uruguay and is one of the largest landholders in the province of Santa Cruz , Argentina .
Kenya Kwale enters phase 3
Phase two of the Kwale Mineral Sands expansion project in Kenya has been completed successfully . Australian mining company Base Resources awarded the contract in June last year and the scope of work included civil works for the new plant ’ s operational areas , including fabrication and installation of steel structures to extend the process buildings , as well as installation of the new gravity separation units and the associated piping . South Africa-based Stefanutti Stocks Mechanical ( SSM ) won the tender to complete phase two last year .
According to Marius Botes , managing director of SSM , early involvement in the constructability planning of the Kwale Phase Two Project ( KP2 ) was provided by seconding senior team members to work in the client ’ s Australian offices . “ This resulted in complete synergistic alignment of all parties involved ,
Base Resources has completed phase two of its Kwale Mineral Sands expansion project in Kenya .
enabling improved pre-planning that , in turn , led to significant risk mitigation , and time- and cost-savings for the client ,” says Botes .
“ Unlike working in South Africa , the logistics involved in this project were highly complex , as all the required steel had to be containerised and shipped to Kenya . We knew — based on the nature of the project — that precision and accurate pre-planning would be critical . We therefore engaged a specialised team with substantial pan-African logistical experience ,” says Botes .
Stefanutti Stocks
[ 10 ] MINING MIRROR AUGUST 2018