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Mandalay: Flooding Impact On Cerro Bayo Output To Be 'Small'

Kitco News

Mandalay Resources Corp. (TSX: MND) says the impact on output from flooding at the Cerro Bayo operation on June 9 is small, but a search continues for two missing workers. A “catastrophic inundation event” occurred in the Delia NW mine, one of three producing mines. Surface operations at the mine remain curtailed, Mandalay reports. Two workers are still missing despite a wide range of efforts to locate them. Mandalay reports that some 12,000 tonnes of ore remained on the bottom at the time of the incident, or approximately 12 days of mill throughput at a rate of 1,000 tonnes per day. “Therefore, the immediate impact on reserves and ultimate total production at the property is expected to be small,” Mandalay says. The remaining two producing mines at the current time are Coyita and Delia SE. “These mines are planned to supply a significant portion of the remaining life-of-mine plan and are entirely unflooded and intact,” Mandalay says. “The company confirms that the reopening of any mine at Cerro Bayo is dependent on the results of detailed investigations into the root causes of the Delia NW event, resulting risk analysis of the possibility of reopening and government permits to reopen. This work is likely to take several months.” Once the search phase is completed, Mandalay will begin consultations with unions and government on the future of the mine, Mandalay says.

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

 

Semafco Draws Down More Of Credit Facility

Tuesday June 20, 2017 08:57

Semafco Inc. (TSX: SMF) reports that it has drawn down the incremental $60 million of the credit facility with Macquarie Bank Ltd. for a total drawdown of $120 million. The facility is repayable in eight equal quarterly installments of $15 million, starting March 31, 2019. Also, Semafco announces receipt of the “mining convention” for the future Boungou Mine (Natougou gold project) from the Council of Ministers of the Government of Burkina Faso, which follows receipt of the mining permit in December 2016. The convention is valid for the seven-year mine life of the initial mineral reserves at Natougou and can be renewed for additional periods of five years. Semafco is a Canadian-based mining company with gold production and exploration activities in West Africa.

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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