Gold Resource Corp. Begins Construction Of Nevada Project
Gold ResourceCorp. (NYSE American: GORO) announcesthat construction has begun at its Isabella Pearl open-pit heap leach goldproject in Nevada. Clearing and grubbing operations began this week, andprocessing equipment is being readied for transport to the project site. “Wetarget first gold production from Isabella Pearl in less than 12 months fromtoday,” says Jason Reid, chief executive officer and president. “This projectis an important driver of Gold Resource Corp.’s growth profile, which includestargeting a more than 100% increase to our annual gold production from IsabellaPearl’s first full year of commercial production.” Proven and probable reservesat Isabella Pearl total 192,600 gold ounces with targeted recovery of 153,000gold ounces after dilution and recovery estimates over a current four-year minelife, the company says. Annual gold production is estimated at 29,000 ouncesyear one, with 41,000 ounces in years two and three and 42,000 ounces in yearfour.
By Allen Sykoraof Kitco News; asykora@kitco.com
OceanaGoldIncreases 2018 Production Guidance
Tuesday June 19, 2018 08:15
OceanaGold Corp. (TSX: OGC; ASX: OGC) announces an increase in itsguidance for 2018 consolidated gold production, citing operating performance sofar and improvements to the mine plan at Didipio. The company now projectsproduction of 500,000 to 540,000 ounces. “We have had a strong operating andfinancial performance in the first half of this year with our operationsachieving better-than-expected results,” says Mick Wilkes, president and chiefexecutive officer. “With the improvement to the mine plan, Didipio continues tooutperform and present opportunities for further optimization, while ramp-up ofthe underground is progressing nicely. Operating performance at Haile has beenstrong with recent solid plant performance while mining activities aregradually improving. In New Zealand, after a slow start, Waihi is back on trackwhile Macraes is slightly exceeding expectations with improved plantperformance and a steady feed of higher grade ore from Coronation North.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Bonterra Resources Agrees ToAcquire Metanor
Tuesday June 19, 2018 08:15
Bonterra Resources Inc. (TSXV: BTR, US: BONXF, FSE: 9BR1) has agreed toacquire Metanor Resources Inc. in a deal valued at C$78 million, creating an advanced Canadian gold-exploration anddevelopment company with a focus on the Urban Barry Quebec Gold Camp. Bonterrawould acquire all Metanor shares for 73 Canadian cents each at an exchangeratio of 1.6039 Bonterra shares for each Metanor share. Prior to completion ofacquisition, Bonterra said it will spin out its Larder Lake assets in Ontarioand a specified amount of cash to create a “new exploration opportunity” forshareholders. The purchase represents a premium to Metanor's shares as of lastweek, and the agreement must be approved by shareholders of both companies.Existing Bonterra and Metanor shareholders would own approximately 58% and 42%of the new company, respectively. “We believe we will be able todevelop a much larger and more significant resource profile within the UrbanBarry Camp,” says Nav Dhaliwal, president andchief executive officer of Bonterra. “Theavailability and ownership of a permitted and expandable processing facilitycertainly places Bonterra in an excellent position to rapidly and costeffectively become a significant Quebec-based gold producer.”
By Allen Sykoraof Kitco News; asykora@kitco.com
SSR: Updated Marigold Life-Of-Mine Plan Calls For Production Growth
Tuesday June 19, 2018 08:15
SSR Mining Inc. (NASDAQ, TSX: SSRM) announces an updatedlife-of-mine plan for the Marigold mine in Nevada that calls for increasedoutput in future years and projects 10 more years of mining. The evaluationtakes into account additional haul trucks added in 2016 and 2018 as well asyear-end 2017 mineral reserves. “Annual gold production is forecast to exceed265,000 ounces in 2021 and 2022, a more than 30% increase over 2017,” says PaulBenson, president and chief executive officer. “The new reserve supports miningfor over 10 years and gold production for 15 years, with significant resourcesand exploration potential existing beyond the currently defined reserves.” Henotes that Marigold opened in 1989 with an initial estimated eight-year minelife and next year will hit 30 years of continuous operation. “We continue toinvest in exploration at the site and expect to continue to increase reservesand resources,” the CEO says. The company says the plan shows “robusteconomics” with an after-tax net present value of $552 million based on a$1,300-per-ounce gold and a 5% discount rate. The mine has mineral reserves of3.2 million ounces, SSR says. Projected average annual production for 2019 to2020 increases to 218,000 ounces of gold, in-line with the five-year outlookannounced in 2016, SSR says. Average annual production is 236,000 ounces ofgold is projected for the first six years, with peak gold production of morethan 265,000 ounces of gold in 2021 and 2022. SSR projects life-of-mine cashcosts of $730 per payable ounce of gold and all-in sustaining costs of $966 perounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
Sierra Metals: Preliminary Assessment Projects Expanded Output AtCusi Mine
Tuesday June 19, 2018 08:15
Sierra Metals Inc. (TSX, BVL: SMT; NYSE AMERICAN: SMTS) says apreliminary economic assessment for the Cusi Mine in Mexico shows output couldexpand significantly. Highlights of the study include an after-tax net presentvalue of $92.2 million at an 8% discount rate, an after-tax internal rate ofreturn of 75%, an after-tax payback period of 4.6 years, life-of-mine capitalcosts of $104.5 million and net after-tax cash flow of $150.6 million. The plancalls for the current plant processing rate to rise from 650 tonnes per day to1,200 by the first quarter of next year and 2,700 by mid-2021. The companyprojects a mine life of nine years based on existing mineral resources and seestotal silver production of 30 million ounces. Igor Gonzales, president and chief executive officer, says the companyis "very encouraged” by the study. “The company is incorporating anaggressive capex program into the PEA of $11.5 million over the life of themine, which includes exploration drilling to increase the mineral resources atCusi as well as convert the existing resources to reserves,” the CEO says.
By Allen SykoraFor Kitco News
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asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.