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Gran Colombia: Normal Operations Resume At Segovia

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Operations at Gran Colombia Gold Corp.’s (TSX:GCM) mines and plant in Segovia in Colombia have returned to normal after a 42-day civil disruption ended Friday, the company says. “We are pleased to see the civil strike in Segovia and Remedios has been lifted and we can get back on track with our 2017 operating and capital plan,” says Lombardo Paredes, chief executive officer . The CEO says that while production in August was below normal, officials expect to meet annual output guidance for 2017 of 150,000 to 160,000 ounces of gold. Over the next few months, the company will negotiate specific operating contracts with each of the mining collectives based on general terms agreed to Friday between the Ministry of Mines, the governor of Antioquia, the mayors of Segovia and Remedios, the Mesa Minera and the company, Gran Colombia says. Compensation under these new operating contracts will be established for each mining collective individually, with the company retaining between 10% and 60% of the spot price for each ounce of gold produced. The contracts will require that all ore be processed at the company’s Maria Dama plant.

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

 

Detour Gold Enters Guilty Plea On Charge Stemming From Fatality

Tuesday September 05, 2017 09:55

Detour Gold Corp. (TSX: DGC) reports that it entered a guilty plea to one count of criminal negligence causing death in connection with a fatality that occurred at the Detour Lake mine site in June 2015. The company says it accepted responsibility for the death of an employee from acute cyanide intoxication via skin absorption. The company was ordered to pay a fine of C$1.4 million plus a corresponding 30% surcharge. In addition, the court, as requested by Detour Gold, ordered a restitution payment for the family of the deceased worker for lost income through retirement. "We reiterate our sadness for the pain this has caused the family. No workplace death is acceptable and we are committed to continuing our efforts to work diligently towards our commitment to Zero Harm," says Paul Martin, president and chief executive officer. As a result of pleading guilty to the one count of criminal negligence causing death, the Occupational Health and Safety Act charges against Detour Gold were withdrawn, the company reports.

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

 

Kirkland Lake Gold Upping Stake In Novo Resources

Tuesday September 05, 2017 09:40

Kirkland Lake Gold Ltd. (TSX: KL; NYSE:KL) says it has agreed to up its investment in Novo Resources Corp. Kirkland Lake says it will acquire 14 million units for C$4 each for a total cost of C$56 million under a private placement financing. Each unit consists of one common share and one common share purchase warrant. Upon closing, Kirkland Lake is expected to own 18.2% of Novo’s outstanding common shares and will hold approximately 25.5% on a partially diluted basis, assuming the exercise of the warrants, Kirkland Lake says. “Our investment in Novo is an important part of our strategy to grow and enhance the value of our Australian franchise, which currently includes large land positions in Victoria and the Northern Territory, and production from our high-grade Fosterville Gold Mine,” says Tony Makuch, president and chief executive officer of Kirkland Lake Gold. “Investing in Novo will provide our company with exposure to highly prospective exploration targets in the Pilbara Region of Western Australia, including the Karratha gold project, where recent exploration results have been very encouraging and suggest that the property may be host to a large gold system with significant potential for profitable, long-life production.”

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

 

Agnico Eagle: Exploration Means Potential To Upgrade Reserves

Tuesday September 05, 2017 09:40

Agnico Eagle Mines Ltd. (NYSE, TSX: AEM) has provided an upbeat assessment on 2017 exploration activities. “We believe that there is good potential to expand and upgrade the mineral resources and mineral reserves at many of our key projects by year-end 2017,” says Sean Boyd, chief executive officer. Drilling at the Amaruq project in Nunavut traces gold beneath current Whale Tail and V Zone mineral resources , with the company reporting a strongly mineralized quartz vein that returned 8.6 grams per tonne gold over 38.7 meters at a depth of 273 meters. Meanwhile a new Tugak structure was identified 4.5 kilometers west of Whale Tail at Amaruq, with initial results including 2.5 g/t gold over 10 meters near the surface. Follow-up drilling is planned.  At the Barsele project in Sweden, a high-grade interval in the central zone intersected 5.4 g/t gold over 11.5 meters at 275 meters deep. In Mexico, La India drilling extended near-pit mineralization and other near-mine targets, Agnico Eagle says. Drilling at El Realito intersected 9.5 g/t gold and 36 g/t silver over 7.3 meters at 92 meters depth, while drilling at La Chipriona intersected 1.4 g/t gold and 67 g/t silver over 40.3 meters near the surface. At El Barqueno, drilling extends the strike length of Azteca-Zapateco zones by over 1,000 meters to west, with recent results in the far west including 6.3 g/t gold and 45 g/t silver over 5.7 meters at 201 meters depth.

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

 

Acacia Mining To Reduce Operations At Tanzanian Mine

Tuesday September 05, 2017 09:40

Acacia Mining (London: ACA) says it will stop underground work at its Bulyanhulu gold mine due to the Tanzanian government’s export ban on gold and copper concentrates. As a result, Acacia now expects annual gold production to be some 100,000 ounces lower than the bottom of the previous guidance range of 850,000 to 900,000. However, guidance for all-in sustaining costs remains between $880 and $920 due to cost-savings initiatives and a reduction in planned capital expenditures. Since the March ban, Acacia has seen a build-up of some $265 million of concentrate inventory in Tanzania, the company says. The loss of revenue, indirect taxes and other changes led to a cash outflow of some $210 million for the year to date, Acacia says. “The impact of the ban, in addition to the deterioration of the current operating environment, has led to negative cash flow of approximately $15 million per month at the mine and thus has made ordinary course operations at Bulyanhulu unsustainable,” the company says. “Acacia has therefore decided to commence a program to reduce operational activity and expenditure at Bulyanhulu in order to preserve the viability of our business over the longer term.” In the meantime, discussions with the government will continue, Acadia adds. For now, Buzwagi, the company’s other mine affected by the ban, will continue to operate due to its short remaining mine life and a lower impact on the company’s cash outflow, Acadia says. “The mine has commenced a trial to test whether it is cash flow positive in light of the current export ban to change the processing flow sheet to solely produce doré and no concentrate,” Acacia says. “This change would mean a reduction in overall gold and silver recoveries and the mine would no longer recover the contained copper, but would enable the mine to sell all the gold and silver it produces rather than only 35% of production. This could bring forward the planned end of gold/copper concentrate production from mid-2018.”

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

 

Brio Gold: Feasibility Study Shows Lower Costs, Increased Reserves

Tuesday September 05, 2017 09:40

Brio Gold Inc. (TSX: BRIO) says a “positive” feasibility study for its Santa Luz project demonstrates lower operating costs and initial capital expenditures, when compared to the July 2016 pre-feasibility study. Highlights include projected annual average gold production of 100,000 ounces, including 150,000 in the first year, with overall output now totaling 1.056 million ounces, up from 1.028 million previously. The initial capital cost was lowered to $82 million from $88 million, while average all-in  sustaining costs were trimmed to $808 an ounce from $923 previously.  "We can confidently say that we have 'cracked the nut' on Santa Luz gold recovery and de-risked this great project," says Gil Clausen, Brio Gold's president and CEO. "We are highly confident in the flow sheet with the success of continuous dual pilot plant runs conducted over the last eight months.” Recoveries have been reliably consistent at 84%, he adds.

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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