Mining Breaks

West Australian explorer Lunnon Metals has confirmed the Baker deposit as the cornerstone asset at its Kambalda nickel project, upgrading its indicated and inferred mineral resource to 30,800t (929,000t @ 3.3% Ni).
The growth of its first discovery has lifted Lunnon’s global JORCV resource at Kambalda to 79,300t contained nickel (2.6Mt @ 3.1%).
The company says its priority now is to advance technical and mine design studies while readying for further work to target Bakers’s down-plunge opportunity from potential future underground development.

Canadian explorer Osisko Mining has begun detailed engineering work and begun preparations for mine permitting in the March 2023 qtr after delivering a positive independent feasibility study on its 100%-owned Windfall gold project in Quebec.
Osisko says the FS supports development of an underground dual ramp-access mine with a central processing mill at the Abitibi greenstone belt project near James Bay.
It posits $C788.6M capex for a mine producing 294,234ozpa at AISC of $948.9/oz over 10 years, resulting in after tax NPV at 5% of $1.17B, IRR of 33.8% and payback period of 2 years.

Ventilation improvements at the underground mine have supported Lundin Gold’s forecasts of increased production over the next three years at its Fruta del Norte gold mine in SW Ecuador.
With its FY2022 production headed towards the top end of its 430,000-460,000oz range and AISC at the lower end of its $US820-870/oz, president-CEO Ron Hochstein says completion of the South ventilation raise will allow Lundin to lift the mining rate to 4,400tpd and match its expected mill throughput.
It now predicts production of 425,000-475,000oz at $870-940/oz in FY2023, 450,000-500,000oz at $780-850/oz in FY2024 and 465,000-515,000oz at $800-870/oz in FY2025.
Hochstein says strong gold prices and low mine costs despite inflationary pressures promise strong free cashflow for years to come for the Canadian-based miner.

Uranium developer Bannerman Energy is targeting a final investment decision in H2 2023 on its 95%-owned Etango-8 project in Namibia after its DFS confirmed strong technical and economic viability of an 8Mtpa conventional, low-strip openpit mining and heap leach processing operation.
The DFS base case outlines a $US317M pre-production capital development to produce 52.6Mlb U3O8 over an initial 15 years at AISC of $38.1/lb from updated ore reserve of 113.5Mt @ 240ppm for 59.9Mlb. It calculates post-tax NPV at 8% of $209M, IRR of 17% and net cashflow of $695M.
Bannerman says previous studies confirm long-term scalability potential to 20Mtpa.

Australian Vanadium has marked another step towards development of its high-grade vanadium-titanium-iron project in WA’s Murchison province, naming engineers Primero Group and GR Engineering Services to undertake a dual-party early contractor involvement process.
AVL says the joint appointment will enable the contractors to collaborate in design development, optimising risk allocation and pricing for the project’s crushing, milling and beneficiation plant.
The process is expected to result in each contractor submitting an EPC tender proposal in the June 2023 qtr.
AVL proposes an opencut mining and beneficiation plant 45km S of Meekatharra and vanadium pentoxide processing plant near Geraldton.

Australian strategic metals developer TNG is continuing a review of its engineering strategy and contract engagement at its 100%-owned Mount Peake vanadium-titanium-iron project following the collapse of its lead engineer and preferred EPC contractor Clough.
Directors appointed voluntary administrators to Clough this week following the collapse of its proposed sale by parent company Murray & Roberts to Italian-based global engineer Webuild.
TNG says Clough is not currently undertaking any engineering work for Mount Peake, and the administration is not anticipated to have any significant impact on the project at this time.

The Mandilla project continues to grow as one of the largest independently owned gold systems in the heart of the Kalgoorlie goldfields for West Australian explorer Astral Resources.
Astral posted a JORC indicated-inferred resource of 1.03Moz (30Mt @ 1.1g/t) for its 100%-owned project 70km S of Kalgoorlie, more than doubling its maiden estimate 18 months ago.
The estimate encompasses the cornerstone Theia, Iris, Eos and recently discovered Hestia deposit.
The company says Mandilla’s positive metallurgical characteristics and growth support its strategy to develop a sustainable gold business based on the Mandilla and Feysville projects.

North American-focused miner Dateline Resources has suspended its Gold Links operation while it continues the search for a potential strategic partner for the fully permitted historic gold mine project in Colorado, USA.
Dateline says placing Gold Links on care and maintenance will preserve its value while minimise the company’s costs, enabling it to focus on the Colosseum project in California where it has an 813,000oz gold resource with further potential.
MD Stephen Baghdadi says the Australian-based company has several parties interested in a JV at Gold Links but the process will take time.

Global mining/commodity trader Glencore has reached a further settlement on past allegations of corruption, agreeing to pay $US180M to the Democratic Republic of Congo.
The deal, relating to all present and future claims relating to bribery and market manipulation claims between 2007 and 2018, follows Glencore’s penalty and costs payouts totalling more than $1.5B to authorities in the US, UK and Brazil.
Chairman Kalidas Madhavpeddi says Glencore has addressed the consequences of its past conduct and will work with stakeholders to facilitate good governance and ethical business practices in DRC.

Australian mining services group Metarock Group faces a likely $A9M adverse impact on its FY23 EBITDA following the failure of Red River Resources’ subsidiary Cromarty Resources.
The collapse of Cromarty and its Thalanga zinc-copper-lead mine in N Qld will result in a $5.7M debt writedown by Metarock’s contracting business PYBAR on top of incurred costs for equipment demobilisation and staff termination payments.
Creditors supported the liquidation of Cromarty last week after administrators outlined a likely nil distribution to non-priority creditors.

Australian explorer GBM Resources has established what MD-CEO Peter Rohner calls a solid base for a stand-alone development scenario at its Twin Hills project in SE Qld after posting a 31% increase in total gold resources to nearly 1Moz.
The measured, indicated and inferred resource is now 23.1Mt @ 1.3g/t for 999,200oz gold and 6.5g/t for 4.82Moz silver.
Rohner says GBM is considering current gold prices and openpit mining models for development of Twin Hills, which includes the 309 and Lone Sister deposits plus over 1,100sqkm mining and exploration tenements.

The award of the engineering, procurement and construction management contract for the Kiaka gold project in Burkina Faso continues an extensive relationship for Australian-based international engineer and project manager Lycopodium with West African Resources.
Lycopodium, which values the contract at about $A44M, expects to finalise the EPCM contract this month and start major works at the mine site 140km SE of Ouagadougou in the March 2023 qtr.
MD Peter De Leo says Lycopodium also partnered with WAF in 2019-20 to deliver its flagship Sanbrado mine, 45km N of Kiaka.

Australian-based company Arizona Lithium has announced plans for a strategic alliance with Navajo Nation-owned Navajo Transitional Energy Co to manage development of its 100%-owned Big Sandy project near Phoenix.
MD Paul Lloyd says its terms sheet agreement with NTEC is a monumental breakthrough in the sustainable development of its lithium resource of 32.5Mt @ 1,850ppm for 60,300t.
Subject to definitive agreements, NTEC will manage development of Big Sandy from permitting of additional exploration to DFS and mine construction.
Initial work may begin while the companies complete due diligence and a definitive agreement.

Australian explorer Castile Resources has outlined a $A279.5M capital cost development to produce 85,400ozpa gold equivalent at AISC of $1,330/oz over an initial project life of 8 years in the PFS for its Rover 1 polymetallic project near Tennant Creek in the NT.
It calculates total production of 252,300oz gold, 58,600t 99% copper plate, 2,560t 99% cobalt metal and 625,300t 96.4% magnetite from its total ore reserve of 3.11Mt @ 2.02g/t Au, 1.52% Cu, 0.06% Co and 22.92% Fe3O4.
It forecasts pretax net cashflow of $686M, delivering NPV at 6.5% of $451.7M, IRR of 46% and 2.7 years payback aftertax.

JV partners Tianqi Lithium Corporation and IGO have achieved commercial production from the first train at its lithium hydroxide refinery at Kwinana, Western Australia.
Tianqi Lithium Energy Australia (Tianqi 51%, IGO 49%) is continuing product qualification and certification with potential offtake customers while it ramps up Train 1 production through 2023.
IGO says the declaration of commercial production reflects the JV’s confidence of continuous production of battery-grade lithium hydroxide after independent testing confirmed it meets lithium-ion battery industry standards.

West Australian miner IGO anticipates restarting mining operations in two weeks at its 100%-owned Nova nickel-copper-cobalt operation after a weekend fire that caused extensive damage to the diesel engine room of its 10MW power station.
All operations remain suspended at the Fraser Range project 160km NE of Norseman.
IGO is working with supplier Zenith Energy to mobilise temporary generators but full restoration to operate the processing facility is expected to take about four weeks.
The miner reports no injuries or damage to other infrastructure.

West African Resources has awarded major contract packages and progressed financing talks for development of its 90%-owned Kiaka project in Burkina Faso, where it targets an average 219,000ozpa at AISC of $US1,052/oz for 18.5 years from first gold in 2025.
WAF awarded contracts for the EPCM for Kiaka’s CIL treatment plant to Lycopodium and supply and delivery of the SAG and ball mill package to Metso Outotec.
Exec chairman Richard Hyde says it aims to appoint preferred financier or syndicate for its planned $US300M debt finance package in the March 2023 qtr.

Australian processing services specialist Elmore has gained “breathing space” by restructuring its vendor finance agreement while advancing the on-target ramp-up of its 100%-owned Peko project at Tennant Creek in the Northern Territory.
MD David Mendelawitz says amendments removing penalty interest rates and extending its potential term to end-2023 have the effect of saving over $0.5M a month.
Mandated finance adviser Azure Capital is conducting initial management presentations on refinancing and repayment of the vendor finance.
Elmore shipped its first Peko magnetite product in Oct, with production continuing to grow, while capital works to begin copper and cobalt concentrates output are on schedule.

West Australian company CuFe is continuing close discussions with key contractors on the potential restart of full operations in Jan 2023 at its 60%-owned JWD iron ore mine.
CuFe says it has established the base for a rapid ramp-up at the high-grade direct shipping ore deposit, with key plant retained on site and blasted stock available in the pit. A decision on the restart will rest on continued improvement in iron ore pricing.
The company has continued limited low-CAPEX production from the operation, part of GWR Group’s wider Wiluna West project 700km E of Geraldton, shipping its first parcel of JWD fines to China and two further parcels of lump ore planned this month.

BHP has moved to pull in Vale, its 50-50 JV partner in the Samarco iron ore mine in Brazil, as part of an English High Court group action claiming damages over the 2015 Fundão Dam disaster.
The £5B case relates to alleged losses from the dam collapse that caused 19 deaths and widespread environmental and infrastructure damage. Vale is not currently a defendant in the case.
In its defence filings to the court, BHP continues to argue the English case is unnecessary because it duplicates continuing court action and rehabilitation work in Brazil.
If that defence fails, it argues, Vale should be required to contribute to any amount payable.

West African miner Robex Resources has welcomed the return to normal operations at its Nampala gold mine in Mali after the operational impacts of an unprecedented rainy season lowered its Sept qtr (Q3) production to 11,124oz, from 12,089oz in the previous period.
Robex says the rainfall affected hopper procurement, loader availability and primary grizzly clogging, ofsetting the start-up of the trommel.
Gold sales of 13,644oz (Q2: 10,981oz) delivered $C30.8M ($26.4M) revenue, resulting in operating income of $10.3M ($11.5M).
With its merger with Sycamore Mining complete, Robex can focus on construction of the Kiniero project in Guinea as well as Nampala development.