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Gold Resource Corp. Begins Construction Of Nevada Project

Kitco News

Gold Resource Corp.  (NYSE American: GORO) announces that construction has begun at its Isabella Pearl open-pit heap leach gold project in Nevada. Clearing and grubbing operations began this week, and processing equipment is being readied for transport to the project site. “We target first gold production from Isabella Pearl in less than 12 months from today,” says Jason Reid, chief executive officer and president. “This project is an important driver of Gold Resource Corp.’s growth profile, which includes targeting a more than 100% increase to our annual gold production from Isabella Pearl’s first full year of commercial production.” Proven and probable reserves at Isabella Pearl total 192,600 gold ounces with targeted recovery of 153,000 gold ounces after dilution and recovery estimates over a current four-year mine life, the company says. Annual gold production is estimated at 29,000 ounces year one, with 41,000 ounces in years two and three and 42,000 ounces in year four.

By Allen Sykora of Kitco News; asykora@kitco.com

 

OceanaGold Increases 2018 Production Guidance

Tuesday June 19, 2018 08:15

OceanaGold Corp. (TSX: OGC; ASX: OGC) announces an increase in its guidance for 2018 consolidated gold production, citing operating performance so far and improvements to the mine plan at Didipio. The company now projects production of 500,000 to 540,000 ounces. “We have had a strong operating and financial performance in the first half of this year with our operations achieving better-than-expected results,” says Mick Wilkes, president and chief executive officer. “With the improvement to the mine plan, Didipio continues to outperform and present opportunities for further optimization, while ramp-up of the underground is progressing nicely. Operating performance at Haile has been strong with recent solid plant performance while mining activities are gradually improving. In New Zealand, after a slow start, Waihi is back on track while Macraes is slightly exceeding expectations with improved plant performance and a steady feed of higher grade ore from Coronation North.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Bonterra Resources Agrees To Acquire Metanor

Tuesday June 19, 2018 08:15

Bonterra Resources Inc. (TSXV: BTR, US: BONXF, FSE: 9BR1) has agreed to acquire Metanor Resources Inc. in a deal valued at C$78 million, creating an  advanced Canadian gold-exploration and development company with a focus on the Urban Barry Quebec Gold Camp. Bonterra would acquire all Metanor shares for 73 Canadian cents each at an exchange ratio of 1.6039 Bonterra shares for each Metanor share. Prior to completion of acquisition, Bonterra said it will spin out its Larder Lake assets in Ontario and a specified amount of cash to create a “new exploration opportunity” for shareholders. The purchase represents a premium to Metanor's shares as of last week, 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 to develop a much larger and more significant resource profile within the Urban Barry Camp,” says Nav Dhaliwal, president and chief executive officer of Bonterra. “The availability and ownership of a permitted and expandable processing facility certainly places Bonterra in an excellent position to rapidly and cost effectively become a significant Quebec-based gold producer.”

By Allen Sykora of 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 updated life-of-mine plan for the Marigold mine in Nevada that calls for increased output in future years and projects 10 more years of mining. The evaluation takes into account additional haul trucks added in 2016 and 2018 as well as year-end 2017 mineral reserves. “Annual gold production is forecast to exceed 265,000 ounces in 2021 and 2022, a more than 30% increase over 2017,” says Paul Benson, president and chief executive officer. “The new reserve supports mining for over 10 years and gold production for 15 years, with significant resources and exploration potential existing beyond the currently defined reserves.” He notes that Marigold opened in 1989 with an initial estimated eight-year mine life and next year will hit 30 years of continuous operation. “We continue to invest in exploration at the site and expect to continue to increase reserves and resources,” the CEO says. The company says the plan shows “robust economics” 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 of 3.2 million ounces, SSR says. Projected average annual production for 2019 to 2020 increases to 218,000 ounces of gold, in-line with the five-year outlook announced in 2016, SSR says. Average annual production is 236,000 ounces of gold is projected for the first six years, with peak gold production of more than 265,000 ounces of gold in 2021 and 2022. SSR projects life-of-mine cash costs of $730 per payable ounce of gold and all-in sustaining costs of $966 per ounce.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Sierra Metals: Preliminary Assessment Projects Expanded Output At Cusi Mine

Tuesday June 19, 2018 08:15

Sierra Metals Inc. (TSX, BVL: SMT; NYSE AMERICAN: SMTS) says a preliminary economic assessment for the Cusi Mine in Mexico shows output could expand significantly. Highlights of the study include an after-tax net present value of $92.2 million at an 8% discount rate, an after-tax internal rate of return of 75%, an after-tax payback period of 4.6 years, life-of-mine capital costs of $104.5 million and net after-tax cash flow of $150.6 million. The plan calls for the current plant processing rate to rise from 650 tonnes per day to 1,200 by the first quarter of next year and 2,700 by mid-2021. The company projects a mine life of nine years based on existing mineral resources and sees total silver production of 30 million ounces.  Igor Gonzales, president and chief executive officer, says the company is "very encouraged” by the study. “The company is incorporating an aggressive capex program into the PEA of $11.5 million over the life of the mine, which includes exploration drilling to increase the mineral resources at Cusi as well as convert the existing resources to reserves,” the CEO says.

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.

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