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Newmont: Sumitomo Becomes Partner At Yanacocha

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Newmont Mining Corp. (NYSE: NEM) reports that Japan’s Sumitomo Corp. has obtained a 5% stake to become a partner in Minera Yanacocha SRL. As a result, Newmont and Buenaventura’s ownership interests in Yanacocha will be 51.35% and 43.65%, respectively. Sumitomo paid $48 million for the ownership interest. The transaction is structured as a new share issuance to Sumitomo, with the payment going towards Yanacocha’s cash balances, Newmont says. “We had a long and productive partnership with Sumitomo at Batu Hijau in Indonesia, and we look forward to working with them and Buenaventura to advance the next generation of profitable production at Yanacocha,” says Randy Engel, Newmont’s executive vice president for strategic development. In October, Newmont’s board of directors approved full funding for Quecher Main, which is expected to extend Yanacocha’s oxide mine life to 2027. Quecher Main also will serve as a bridge to potential future growth, including development of Yanacocha’s sulfide deposits, Newmont says. If approved, the sulfides project could extend Yanacocha’s operational life through 2039, the company adds.

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

 

Equinox Gold To Spin Off Copper Assets

Thursday June 21, 2018 08:05

Equinox Gold Corp. (TSXV: EQX) plans to transfer all of its copper assets into a new company named Solaris Copper Inc. Meanwhile, Equinox will focus on advancing the Aurizona Gold Mine and the Castle Mountain Gold Mine. Sixty percent of Solaris Copper shares will be distributed to Equinox shareholders, with the remainder to be held by Equinox. Solaris will not initially be listed on a public stock exchange but will operate as a reporting issuer, Equinox says. In addition to advancing its copper assets, Solaris will evaluate all potential strategic opportunities, including mergers, acquisitions and a potential stock-exchange listing, Equinox says. “Solaris Copper will control a portfolio of very promising exploration-stage projects located in world-class copper districts,” says Ross Beaty, chairman of Equinox Gold. “Creating a standalone copper-focused company should give these projects the visibility and attention they deserve.” Solaris Copper will hold a 100% interest in the resource-bearing Warintza copper-molybdenum project in Ecuador, a 60% interest in the La Verde preliminary-economic-assessment-stage copper-silver-gold project in Mexico, a 100% interest in the Ricardo early-stage copper property in Chile, and negotiated earn-in agreements for two early-stage copper prospects in Peru. Collectively, the projects host 3.7 billion pounds of copper in the measured and indicated category with an additional 4.6 billion pounds of copper in the inferred category, Equinox says.

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

 

Eldorado Gold: Lamaque Development Ahead Of Schedule

Thursday June 21, 2018 08:05

Eldorado Gold Corp. (TSX: ELD; NYSE: EGO) says mill refurbishment and underground mine development are ahead of schedule at the Lamaque project in Quebec, and production from the refurbished mill remains on track for 2019. Exploration includes over 12,000 meters of resource expansion drilling since the end of 2017, with more drilling to occur. "Results from this year's exploration drilling continue to demonstrate the outstanding resource upside potential of the Lamaque project," says Peter Lewis, vice president for exploration. "Our new drilling at Triangle confirms that the shear-hosted vein systems and steeply plunging intrusions that control mineralization in the upper deposit persist to at least 1,800 meters depth, with high grades reported in several newly identified shear zones and in related secondary shear zones and extension vein systems.  At the Parallel deposit, step-out drilling has linked the mineralized shear zones with historically mined zones at the nearby Lamaque and Plug 5 deposits.” Lamaque remains on schedule for commercial production in early 2019, Eldorado reports. There are more than 250 workers on the site, with this expected to grow by 20% over the next six months. The projected 2,200-tonnes-per-day capacity of the refurbished Sigma process plant provides excess milling capacity over what would be required for initial production from the Triangle deposit, Eldorado 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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