Messina Phase One PGM production ready to roll
Phase One of SouthernEra Resources‘ Messina project is progressing on schedule for production start-up at the end of the third quarter of the year, and spending is well below budget.
A feasibility study completed in February 2000 was based on Messina’s Voorspoed resource, to a depth of only 575 m (Phase One), resulting in a planned production rate of 159,000 oz of five platinum group metals (PGMs) plus gold with an estimated average operating cost of US$147/oz of payable metal (net of nickel and copper byproduct credits) and a mine life of 17 years.
While the Phase One project remains well within the budget of 488 million South African rands, it is significantly below budget in U.S. dollar terms because of a substantial depreciation of the rand in 2001.
Progress at Phase One, the first of three phases of planned development, has now reached an advanced stage. The main shaft has been sunk to a depth of approximately 420 m and shaft sinking is being completed in February 2002. Construction of the Phase One ore processing plant is on schedule for commissioning before Sept. 30, 2002.
Channel and drill sampling, conducted during development on both the UG2 and Merensky PGM reefs at the 150-m and 200-m levels, have confirmed the precious and base metal grades used in the feasibility study.
Construction underway at Magistral gold mine
Queenstake Resources Ltd. has begun construction of its Magistral gold mine in Sinaloa, Mexico. The Magistral Joint Venture (MJV) between the company’s subsidiary, Pangea Resources Inc. and Midwest Mining Inc. recently made a positive production decision. Detailed engineering is substantially complete, extension of the high-grade La Prieta zone has been confirmed and additional drilling is planned.
MJV will construct a facility to treat one million tonnes of ore per year from four pits, to produce an average of 40,000 oz Au per year.
The production decision was based on the current reserve at Magistral, which consists of 6.15 million tonnes of ore at an average grade of 1.86 g/t Au. The reserve does not include the results of recent drilling, which intersected substantial widths and grades of mineralization in a zone immediately adjacent to the existing reserve. This zone remains open on strike and down dip. An additional 3,000 m of drilling is planned during the construction period, followed by reassessment of the resource and reserve.
Construction should be completed by July 2002 with first production in September 2002. Mining will begin at the San Rafael pit, which contains 1.3 million t at a gold grade of 2.25 g/t.
Preliminary assessment of Meadowbank gold project
Cumberland Resources Ltd. has reported on a preliminary assessment of its 100%-owned Meadowbank gold project, 70 km north of Baker Lake, Nunavut, with plant throughput at 1.71 million tonnes (t) per year, over a mine life of 8.3 years. The study showed metallurgical recovery of 90.6%, with average annual gold production at 246,000 oz.
As a result of a 50% increase in estimated resources over prefeasibility studies in April 2000, Cumberland and consulting engineers MRDI Canada, a division of AMEC E&C Services Ltd., performed the preliminary assessment using a planned production rate of 4,700 t/day from both open pit and underground designs. The production forecast used in the preliminary assessment includes approximately 5.9 million t of inferred mineral resources, or 41% of the total forecast.
A technical report is available for review at the web site www.sedar.com
AMEC hired for diamond mine study on Victor site
De Beers Canada Corp. has chosen AMEC to be its alliance partner for the Victor diamond mine project in northern Ontario, and has awarded the company a $2-million contract for a prefeasibility design study. A joint team from De Beers and AMEC will conduct the study to determine the financial viability of this project, which could result in the province’s first diamond mine (CMJ January 2002, page 12).
The Victor site is 90 km west of Attawapiskat Township, in the James Bay Lowlands. The project includes an 80-person exploration camp and a bulk sample processing plant.
AMEC’s mining and metals business unit is managing the study, which includes open pit mine options, geotechnical and environmental services, a treatment facility, access and logistics requirements, and the associated surface infrastructure needed for the mining and treatment process. The study is to be completed fall 2002.
Last year, AMEC and De Beers formed an alliance to perform the optimization study, engineering, procurement and construction management (EPCM) of De Beers’ Snap Lake diamond mine, which is expected to be fully operational early in 2006.
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