Tuesday 6th December 2016

Resource Clips


Posts tagged ‘Newmont Mining Corp (NEM)’

Athabasca Basin and beyond

March 15th, 2014

Uranium news from Saskatchewan and elsewhere for March 8 to 14, 2014

by Greg Klein

Next Page 1 | 2

Innovation overcomes epic struggle to put Cameco’s Cigar Lake into production

 

 

With an ore grade 100 times the world average, Cameco Corp TSX:CCO overcame tremendous challenges to put Cigar Lake into production. Indeed the project’s first ore shipment on March 13 suggests that high grade is the mother of invention.

Among other tribulations, flooding in 2006 and 2008 stalled the eastern Athabasca Basin mine, which dates back to a 1981 discovery and began construction in 2005. Last year’s planned start-up hit another delay with leaks from tanks built to hold the run-of-mine slurry. Around the same time the McClean Lake mill faced delays of its own with modifications to the leaching circuit.

Cameco devised innovative techniques of bulk freezing and jet boring to extract the deposit lying 410 to 450 metres below surface, “where water-saturated Athabasca sandstone meets the underlying basement rocks.”

Uranium news from Saskatchewan and elsewhere for March 8 to 14, 2014

The jet boring tunnel at Cigar Lake, which Cameco calls “among
the most technically challenging mining projects in the world.”

To prevent flooding, the company freezes the ore and surrounding rock “by circulating a brine solution through freeze holes drilled from both surface and underground.”

To extract the ore, Cameco developed a method of high-pressure water jet boring “after many years of test mining” that keeps operators safely distant from the enormously high-grade deposit.

The company’s targeting 18 million pounds a year at full production, making it the world’s largest high-grade uranium mine after the Cameco/AREVA (70%/30%) McArthur River operation. But even 33 years after Cigar Lake’s discovery, the company anticipates further difficulties: “As we ramp up production, there may be some technical challenges which could affect our production plans.”

As of December 31, Cigar Lake capital expenditures came to $2.6 billion. Over 600 people will staff the mine.

Milling will take place at McClean Lake, 70 kilometres northeast. Operator AREVA Resources Canada says the plant “is expected to produce 770 to 1,100 tonnes of uranium concentrate from Cigar Lake ore in 2014. Its annual production rate will ramp up to 8,100 tonnes as early as 2018.”

Cigar Lake shows proven and probable reserves averaging 18.3% for 216.7 million pounds U3O8. Measured and indicated resources average 2.27% for 2.2 million pounds. The inferred resource averages 12.01% for 98.9 million pounds.

Cigar Lake is a joint venture of Cameco (50.025%), AREVA (37.1%), Idemitsu Canada Resources (7.875%) and TEPCO Resources (5%).

The McClean Lake JV consists of AREVA (70% ), Denison Mines TSX:DML (22.5%) and OURD Canada (7.5%).

Read more about Cigar Lake here and here.

Fission Uranium reports Patterson Lake South’s second-best radiometric results, $25-million bought deal

Patterson Lake South’s momentum continued on March 10 as Fission Uranium TSXV:FCU released its third batch of radiometric readings in five days—this time boasting one hole with “the second strongest off-scale results recorded at PLS to date, placing it amongst the best holes drilled in the Athabasca Basin.” The four new holes also continue the winter program’s 100% hit rate and further encourage the company’s quest to connect the six zones along a 1.78-kilometre potential strike.

Fission Uranium reports Patterson Lake South’s second-best radiometric results

Fission uses a hand-held scintillometer to measure
radiation from drill core prior to receiving lab assays.

The most recent star hole is PLS14-164, whose intervals showed a total of 30.08 metres of off-scale readings at 9,999 counts per second, the maximum amount of gamma radiation that the hand-held scintillometer can measure. The readings, taken from drill core, are no substitute for assays, which will follow.

Another hole showed a composite 2.1 metres of off-scale radioactivity. Of the four holes, the mineralized intercept closest to surface started at 56 metres, while the deepest stopped at 380.5 metres.

Oddly enough, Fission Uranium’s March 10 release says one of the new holes “has narrowed the distance between zones R390E and R585E to approximately 60 metres.” That’s the same distance between the same zones reported by the company on March 7.

Already 40 holes have been completed in the $12-million winter campaign that began in mid-January. The company plans about 85 or 90 holes totalling around 30,000 metres on the ice-bound lake before spring. While one rig explores outside the mineralized area, Fission Uranium hopes its four other drills will fill the gaps between the project’s six zones.

Just before the March 10 closing bell Fission Uranium announced a $25-million bought deal. A syndicate of underwriters led by Dundee Securities agreed to buy 15.65 million warrants, exercisable for one share each, at $1.60. The company expects to close the private placement by April 1. The underwriters may buy an additional 15%.

Fission Uranium surpassed its 52-week high March 10, opening three cents above its previous close, reaching $1.71 and then settling on $1.67 when trading was halted at the company’s request minutes before the $25-million announcement.

Trading resumed the following day. The company closed March 14 on $1.59. With 330.12 million shares outstanding, Fission Uranium had a market cap of $524.89 million.

NexGen repeats success with second hole at Rook 1’s new area

NexGen repeats success with second hole at Rook 1’s new area

Core from RK-14-27 shows pitchblende within
brecciated shear at 253.8 metres in downhole depth.

With radiometric results from a second hole on Rook 1’s Arrow prospect, NexGen Energy TSXV:NXE repeated last month’s success. On March 13 the company released dozens of tiny intervals ranging from 0.05 to 0.45 metres that showed “significant” readings over 500 counts per second. One intercept of 15.05 metres (not true width) showed almost continuous significant results.

The measurements, which are no substitute for assays, were obtained by scanning drill core with a hand-held radiation detector.

Significant intervals for RK-14-27 started at 224.45 metres in downhole depth and ended at 435.9 metres. Drilling stopped at 576 metres. About a dozen small intervals hit the device’s maximum possible reading of 10,000 cps. Arrow’s mineralization now extends at least 32 metres down dip across two holes, NexGen stated.

Three other holes failed to find significant radiation but “analysis of structures in these holes meant that hole 27 was successfully planned to intersect the interpreted mineralized zones both along strike and down dip.” The company plans to sink RK-14-29 40 metres southwest along strike. Now in progress, RK-14-28 is testing a gravity low roughly 200 metres west of RK-14-27.

The company has two drills working the Arrow area, now the focus of the PLS-adjacent Rook 1 project. A third rig will join by summer.

On March 10 NexGen stated it filed a preliminary short form prospectus regarding the previously announced $10-million bought deal, which the company expects to close on or about March 26.

Fission 3.0 stakes 42,000 additional hectares in and around the Basin

Three acquisitions and one property expansion add nearly 42,000 hectares to Fission 3.0’s (TSXV:FUU) portfolio. Announced March 13, the newly staked properties indicate “there remain many under-explored areas of the Athabasca Basin,” according to COO and chief geologist Ross McElroy.

Not all the new turf actually lies within the Basin. But neither does PLS. The 20,826-hectare Perron Lake property is about 20 kilometres north of the Basin and has benefited from regional lake sediment sampling that showed strong uranium anomalies.

The 9,168-hectare Cree Bay property sits within the northeastern Basin, where historic airborne geophysics suggest potential for hydrothermal and structure-related deposits.

Within the southeastern Basin, the 4,354-hectare Grey Island property is located about 70 kilometres from Key Lake, the world’s largest high-grade uranium mill.

Manitou Falls enlarges by 7,589 hectares to a total of 10,529 hectares. The northeastern Basin property was originally staked last May when the spinco was just a gleam in Fission Uranium’s eye. Historic data shows six radiometric anomalies and multiple basement electromagnetic conductors.

Fission 3.0’s portfolio now numbers nine Saskatchewan and Alberta properties in and around the Basin and one in Peru’s Macusani uranium district.

Purepoint finds new zone at Hook Lake JV

March 10 news from Purepoint Uranium TSXV:PTU heralded a new zone of mineralization at its Hook Lake joint venture five kilometres northeast of PLS. Although two of four holes failed to find mineralization, the other two prompted the company to move its second rig to the new Spitfire zone.

The single interval released from hole HK14-09 showed:

  • 0.32% uranium oxide (U3O8) over 6.2 metres, starting at 208.9 metres in downhole depth
  • (including 1.1% over 0.5 metres)

Thirty metres northwest, HK14-11 showed:

  • 0.11% over 2 metres, starting at 197.9 metres

  • 0.05% over 3 metres, starting at 201.9 metres

  • 0.57% over 0.9 metres, starting at 210.6 metres

True widths weren’t provided. These holes were drilled at a -70 degree dip.

All four holes targeted the 2.9-kilometre D2 electromagnetic conductor, which features “a large magnetic low, possibly indicative of hydrothermal alteration,” said VP of exploration Scott Frostad. “Now that the D2 conductor has been shown to be associated with uranium mineralization, we will increase our drilling efforts towards the northeast where geophysics suggests there is a more structurally complex setting.”

Purepoint stated D2 comprises part of the Patterson Lake conductive corridor, the same conductive trend targeted by Fission at PLS.

Purepoint holds a 21% interest in the 28,683-hectare project and acts as operator for partners Cameco (39.5%) and AREVA Resources Canada (39.5%). The work is part of a $2.5-million, 5,000-metre campaign that began in late January.

In early February Rio Tinto NYE:RIO began drilling Purepoint’s Red Willow project as part of Rio’s 51% earn-in.

Next Page 1 | 2

Indonesia ban rocks nickel market

January 13th, 2014

by Frik Els | January 12, 2014 | Reprinted by permission of MINING.com

Indonesia rocked the mining world on January 12, putting into effect an outright ban on nickel, bauxite and tin ore exports.

The Asian nation is the world’s premier thermal coal and tin exporter and is also a gold and copper powerhouse, but the ban on nickel and bauxite ore would have the most dramatic effect on markets.

Last week Indonesian energy and resource ministry officials scrambled to ease provisions of the raw mineral export prohibition that President Susilo Bambang Yudhoyono signed into law on January 12, the most controversial decision of his 10-year presidency.

Indonesia dominates the nickel export business, accounting for over a fifth of global supply at an estimated 400,000 tonnes of contained metal. Chinese nickel pig iron producers imported more than 30 million tonnes of nickel ore from Indonesia last year and China’s aluminium smelters rely on Indonesia for 20% of their feedstock.

According to the latest rules under the ban, base metals including copper, manganese, lead, zinc and tin will be allowed to be exported in concentrate until 2017.

This benefits producers like Freeport-McMoRan Copper & Gold NYE:FCX, which operates the world’s third-largest copper mine at Grasberg in the West Papua province and warned about a 60% drop in output should copper form part of the ban. Phoenix-based Freeport-McMoRan and Newmont Mining NYE:NEM together account for 97% of Indonesia’s copper exports.

[The ban] is the biggest supply risk facing base metals in a long time. The market has been very complacent, thinking the Indonesians would backtrack.

However against expectations of a last-minute climbdown by authorities, the nickel and bauxite ore ban, as well as the prohibition of unprocessed exports of tin, chromium, gold and silver, went into effect January 12.

FT.com quoted Gayle Berry, base metals analyst at UK bank Barclays earlier as saying the ban “is the biggest supply risk facing base metals in a long time. The market has been very complacent, thinking the Indonesians would backtrack.”

Privately owned Ibris Nickel last week announced it will cease operations in Indonesia, laying off 1,400 workers at its two-million-tonne-per-year mine. The nickel industry employs some 200,000 Indonesians across hundreds of small-scale operations.

Reuters reports the Indonesian Mineral Entrepreneurs Association said it planned to challenge the ban in the Supreme Court and Constitutional Court while almost 30,000 mine workers have been laid off, sparking protest in the capital Jakarta:

“We call on all mining workers to prepare to go on the streets and swarm the presidential palace if the government goes ahead with the implementation of the ban,” said Juan Forti Silalahi of the National Mine Workers Union in a statement on January 11.

So far the price of nickel has not reacted in a big way to the looming ban, but now all bets are off.

 

 

Three-months nickel on the LME retreated more than 20% in 2013 from opening levels of $17,450 and, after hitting a high of $18,700 in February, dropped to a four-year low in October amid an oversupplied market.

After a brief uptick in December to over $14,200, the steelmaking raw material last week fell back to the mid-$13,000s and on January 10 the contract closed at $13,725.

Even without the Indonesian ban, the prospects for nickel aren’t rosy.

Global output is forecast to rise for the first time to over two million tonnes in 2015. That’s up from 1.4 million tonnes in 2007.

Stockpiling of ore and metal in anticipation of Indonesian disruptions and the inexorable rise of nickel warehouse levels over the past two years—hitting a record 260,000 tonnes last week—have also kept prices subdued.

 

 

Indonesia, with a population of 240 million, goes to the polls for parliamentary elections in April and in July will choose a new president, so much can change over the course of the year before the true extent of the ban can be felt.

Reprinted by permission of MINING.com

Gold mines output to reach record high

November 20th, 2013

by Cecilia Jamasmie | November 20, 2013 | Reprinted by permission of MINING.com

The world’s gold mines are set to hit record highs in terms of production this year, which won’t help bullion prices recover much from this year’s 25% decline, Reuters reports.

A clear sign of this trend can be seen in the world’s top three gold miners’ latest results, with Barrick Gold TSX:ABX, Newmont Mining NYE:NEM and AngloGold Ashanti NYE:AU all reporting higher production.

Large gold projects put into motion during gold’s 12-year rally are set to start production in the new year, including new mine production and expansion in and around the Nevada gold fields and the Oyu Tolgoi copper mine in Mongolia, whose significant gold byproduct potential is estimated to be 330,000 ounces per year.

Add to the mix the fact that gold output in China, the world’s top producer of the yellow metal, is up 6.8% in the last nine months, as figures published November 20 by the China Gold Association show and the fact that the World Gold Council said recently that Q3 bullion demand hit its lowest level in the last four years. Then the outlook doesn’t look promising for gold bulls.

The Asian superpower has been the world’s top gold producer since 2007, when it churned out 270.491 tonnes of the precious metal and replaced South Africa in the number one spot.

The World Gold Council has forecast that China will overtake India as the world’s largest gold consumer this year. In 2012, Chinese gold consumption jumped 9.35% to 832 tonnes.

Read also: Seven reasons the gold price may not see $1,400 again.

Reprinted by permission of MINING.com

Peru confirms China’s largest copper producer wants a stake in Las Bambas

November 5th, 2013

by Cecilia Jamasmie | November 5, 2013 | Reprinted by permission of MINING.com

Peru’s Minister of Energy and Mines, Jorge Merino, confirmed November 5 that Jiangxi Copper, China’s largest copper producer, has submitted a bid for Glencore Xstrata’s Las Bambas project.

While Merino did not specify whether the offer came from Jiangxi Copper Group or its publicly traded unit Jiangxi Copper Co Ltd, La Republica (in Spanish) quoted him November 5 as saying the sale of the $5.2-billion mine will likely happen before the 2014 deadline.

Jiangxi Copper faces fierce competition from fellow Chinese miners MMG and Minmetals, the state-owned metals and mining company. U.S. miner Newmont NYE:NEM, the world’s second-largest gold producer, is also rumoured to be eyeing the Peruvian mine, thought it has not confirmed whether it will bid.

As the world’s biggest copper importer, China is looking to secure a domestic-owned source for the metal. Currently, the country only satisfies one-third of its demand.

Las Bambas’ three pits are expected to produce more than 400,000 tonnes of copper per year once operations begin at the end of 2014. It will also produce significant quantities of gold, silver and molybdenum as by-products.

Global mining giant Glencore Xstrata put its Las Bambas property up for sale in May as part of a condition imposed by Beijing for Glencore’s $76-billion merger with Xstrata PLC .

Reprinted by permission of MINING.com

Gold stocks slaughtered, Barrick drops 10%

October 31st, 2013

by Frik Els | October 31, 2013 | Reprinted by permission of MINING.com

The gold price slid more than $24 or 2% an ounce on October 31 to a week low of $1,323 after the U.S. Federal Reserve signalled it may cut back its stimulus program sooner than thought and Chinese demand for the metal waned.

After a fightback from near three-year lows below $1,200 struck at the end of June, gold’s momentum now seems to have turned negative again with gold stocks sold off heavily on a relatively modest fall in the price of the metal.

By the October 31 close Barrick Gold TSX:ABX had lost 5.9%, after announcing results that were in line with expectations and the suspension of its troubled Pascua Lama project on the border between Chile and Argentina.

The world’s number one miner of the precious metal followed up after hours with more damaging news. The Toronto-based miner announced it is raising $3 billion by issuing 163.5 million common shares at $18.35 per share.

Barrick is now worth $19.4 billion, down 44% so far this year and nowhere near its $54-billion market value a mere two years ago.

Investors duly marked down the stock again with the counter shedding an additional 5.7% to $18.31 in after-hours trade in New York, wiping more than $2 billion off the value of the company on the day.

Barrick is now worth $19.4 billion, down 44% so far this year and nowhere near its $54-billion market value a mere two years ago.

Newmont Mining NYE:NEM, with a market value of $13.5 billion, escaped the worst of it, down 2.8% in regular trading and trading slightly to the upside after hours, after announcing profits up 11% despite a fall in revenue.

Attributable gold production rose 4% to 1.28 million ounces, while attributable copper output decreased 3% to 34 million pounds during the third quarter at the Denver-based company.

The world’s third-largest gold producer behind Newmont, AngloGold Ashanti NYE:AU was one of the worst performers of October 31. The Johannesburg-based company’s ADRs listed in New York slid 6.7% on October 31 and the value of the company has now halved this year.

Fellow South African miner Gold Fields NYE:GFI, the worst performer among the gold majors this year, gave up 4.4% in New York. The world’s fourth-largest gold producer has had its value slashed 63% in 2013, with investors punishing it for its contrarian purchase of high-cost mines amid the slump.

Goldcorp TSX:G, expected to produce around 2.5 million ounces of gold this year, declined 3.9%. The Vancouver-based company retained the top spot as the most valuable gold stock, with a Toronto big board market capitalization of $21.6 billion.

Toronto’s Kinross Gold TSX:K managed to hold above a $6-billion value despite losing 5.3% on the day. Investors in the company are nursing a $5-billion loss in market cap this year after Kinross, like all the majors, took multi-billion charges against the value of its operations.

Canada’s second-tier gold miners also suffered a loss of confidence from gold investors, giving up much of the gains of recent weeks.

Yamana Gold TSX:YRI skid 3.4%, Agnico Eagle Mines’ TSX:AEM losses were fairly modest at 2.5% while Eldorado Gold TSX:ELD declined 5.1% and IAMGOLD TSX:IMG dropped 5.3%.

Reprinted by permission of MINING.com

Investors pile back into gold stocks, Goldcorp up $2 billion in a week

October 22nd, 2013

by Frik Els | October 22, 2013 | Reprinted by permission of Mining.com

Investors pile back into gold stocks, Goldcorp up $2 billion in a week

Good day for the gold team. Photo: Perpetual Tourist

The gold price jumped more than $20 or 1.8% an ounce on October 22 to a three-week high above $1,340 after disappointing U.S. economic data.

The much weaker-than-expected employment numbers in the U.S. convinced gold buyers that any reduction in economic stimulus by the Federal Reserve will come later rather than sooner.

With positive sentiment returning to the gold market, investors took the chance to jump back into mining stocks which have been decimated by the 20% retreat in the price of the metal this year.

On October 22 Barrick Gold TSX:ABX shot up 4.8%, scaling the $20-billion market value for the first time in a month.

The Vancouver-based company has jumped more than $2 billion in market value over the past week and is now worth $21.3 billion.

The world’s number one miner of the precious metal has added more than $5 billion in market value since hitting 21-year lows early July.

Barrick is now worth $20.5 billion on the TSX, still down 41% so far this year amid an aggressive divestment and cost-cutting drive that is beginning to bear fruit.

Newmont Mining NYE:NEM, with a market value of $14.1 billion, added 3.5%. The company recently cut predictions for its copper output, but gold production targets remain unchanged at 4.8 million to 5.1 million ounces for the year.

The Denver-based company has not escaped the carnage in the gold sector and is down 38% this year.

The world’s third-largest gold producer behind Newmont, AngloGold Ashanti NYE:AU was one of the best performers on October 22. The Johannesburg-based company’s ADRs listed in New York gained 9% to a four-month high, but are still trading down 48% this year.

Fellow South African miner Gold Fields NYE:GFI, which is the worst performer among the gold majors this year, jumped 5% in New York. The world’s fourth-largest gold producer has had its value slashed 62% in 2013 with investors punishing it for its contrarian purchase of high-cost mines amid the slump.

Goldcorp TSX:G, expected to produce around 2.5 million ounces of gold this year, jumped 4.9%, helping retain its top spot as the most valuable gold stock.

The Vancouver-based company has jumped more than $2 billion in market value over the past week and is now worth $21.3 billion.

Toronto’s Kinross Gold TSX:K scaled the $6-billion mark, gaining 3.3% but investors in the company are still nursing a $5-billion loss in market cap this year after Kinross, like all the majors, took multi-billion-dollar charges against the value of its operations.

Australia’s Newcrest Mining declined 0.5% on the Sydney bourse, missing out on the gold price rally in New York. The Melbourne-based company earlier this month ousted its CEO and chairman after its August results showed an AU$5.6-billion loss.

Canada’s second-tier gold miners also enjoyed a rerating with Yamana Gold TSX:YRI adding 4.6%, Agnico Eagle Mines TSX:AEM jumping more than 4.7%, Eldorado Gold TSX:ELD advancing 3.8% and IAMGOLD TSX:IMG upping its value 4.5%.

Reprinted by permission of Mining.com

Investors pour into gold stocks: Barrick gains $7bn in 7 weeks

August 23rd, 2013

by Frik Els | August 23, 2013 | Reprinted by permission of Mining.com

The gold price made a serious attempt to scale the psychologically important $1,400 level on Friday, sending investors scurrying for gold mining stocks.

Bullion bulls are celebrating an 18% jump in the price of gold since the metal hit multi-year lows below $1,200 at the end of June.

Barrick Gold TSX:ABX gained 3% to $21.20 on Friday, up an astounding 49% in just seven weeks.

The Toronto-based global No. 1 gold miner continues to recover from 21-year lows of $14.22 struck on July 5, following a string of setbacks at the company.

Barrick is now worth $21 billion on the TSX, gaining $7 billion in market value in as many weeks. The company, which has written down the value of its assets by some $13 billion this year, peaked at a market capitalization in January 2011 of more than $54 billion.

Gains for Newmont Mining NYE:NEM have been more modest, but the $16.4-billion Denver-based company, which hopes to mine around five million ounces this year, is still up nearly 20% since gold’s June 28 low.

Goldcorp is the best performer of the gold majors, keeping its 2013 market value losses to 10% despite the 16% drop in the gold price this year.

The world’s third-largest gold producer in terms of ounces mined, AngloGold Ashanti NYE:AU gained 3.3% on Friday, but the Johannesburg-based company has made few strides on the back of the resurgent gold price.

Shares of the company are still down 45% year-to-date as it struggles with unrest in its home country’s mining sector and falling gold output. In dollar terms AngloGold’s JSE-listed shares have performed even worse, down 10% as the rand continues to slide against the U.S. and Canadian dollar.

Fellow South African miner Gold Fields NYE:GFI was the lone counter in the red on Friday as the company suffered a second day of losses in reaction to its purchase of three Barrick gold mines.

Gold Fields’ acquisitions in Australia will add more than 400,000 to its annual output, putting it within range of the mined ounces of Canada’s Goldcorp TSX:G, which expects to produce between 2.5 million and 2.8 million ounces in 2013.

Vancouver-based Goldcorp, the world’s most valuable listed gold company, added 2.4% on Friday, pushing its market value to $26.6 billion.

Goldcorp is the best performer of the gold majors, keeping its 2013 market value losses to 10% despite the 16% drop in the gold price this year.

Canadian peer Kinross Gold TSX:K—which this year expects to produce between 2.4 million to 2.6 million ounces—traded up more than 3%.

Australia’s Newcrest Mining TSX:NM jumped more than 5% on the Sydney bourse.

The 2-million to 2.3-million-ounce producer is still 43% cheaper than at the start of the year after suffering $6 billion in writedowns, a dividend cut and an investigation by Australian market regulators prompted by suspicious price movements.

See also: Friday rally sets up gold price breakout.

Reprinted by permission of Mining.com