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Published by Paydirt Media, 2020-01-08 21:07:54

gmj138-Jan-Mar-20-mag-web_Neat

Sara Alicia looks for partner





by Mark Andrews



zure Minerals Ltd hopes the high-grade gold and cobalt
Aland package assembled at Sara Alicia, Sonora State, will
prosper under a partnership agreement or new owners now that
the scope of the project has been expanded.
The company was recently granted the Sara Alicia II mineral
concession after
an historical cancellation of the concession was overturned.
Sara Alicia II adjoins Azure’s 100% Sara Alicia property, which
now encompasses a total area of 49ha in a gold and cobalt-rich
district of northern Mexico.
Azure entered the district when cobalt was running hot two
years ago, with the company encouraged by its drilling hits of
26.2m @ 8.6 g/t gold, including 12.6m @ 14.9 g/t and 26.2m @
1.26% cobalt, including 6.35m @ 3.57% at Sara Alicia. Drilling at Sara Alicia has produced results in the ilk of 26.2m @ 8.6
g/t gold, including 12.6m @ 14.9 g/t and 26.2m @ 1.26% cobalt,
Mineralisation is known to extend from Sara Alicia into Sara
including 6.35m @ 3.57%
Alicia II, however, there has been limited exploration completed
to realise the potential of the area.
During the two-year period it has taken for the Federal Court the company,” Rovira said.
to instruct the mining registry to award Sara Alicia II to Azure, Further to production from Oposura, also in Sonora State, there
the company has been monitoring activity in the area to is a keen emphasis on drilling at Alacrán, which was handed
identify opportunities to bolster its Sara Alicia landholding upon back to Azure from Teck Resources Ltd.
availability. Alacrán, north of Oposura, hosts a resource of 32 moz silver
In the meantime, reconnaissance exploration with geological and 150,000oz gold at Mesa de Plata and Loma Bonita, which
mapping, geochemical sampling and geophysical surveys will includes a high-grade component of 15.5 moz silver @ 275 g/t
be undertaken in the first half of this year at Sara Alicia, as the from surface at Mesa de Plata.
company’s priorities are elsewhere in Mexico. The company has had immediate success at Alacrán since
“Sara Alicia is now the third ranked project, we are looking at restarting exploration at its now 100%-owned project, with
that and doing some regional work on that. We will probably look five new targets identified from sampling of five separate mine
to find a partner or purchaser for Sara Alicia,” Azure managing dumps which returned maximum values of 3,675 g/t silver, 24.1
director Tony Rovira told GMJ. g/t gold, 2.3% copper, 33.5% lead and 21% zinc.
“We acquired Sara Alicia originally because it was very rich in “We will be back on the ground at Alacrán in probably January
cobalt and it was at that time when cobalt was very much flavour or during the first quarter with drilling again to increase the size
of the month, but the Sara Alicia project itself is very prospective of our silver and gold resources at the two deposits that we have
for gold. We did a little bit of work on it and we got some very found,” Rovira said.
high-grade gold and cobalt drill intersections, but once we In addition to expanding resources at Loma Bonita and Mesa de
acquired the more advanced Oposura project we decided to Plata, the company will also restart metallurgical studies at both
focus on that.” deposits, while also continuing to do greenfields exploration to
In what is still a tough time for the junior resource sector, Azure’s develop new projects.
decision to prioritise Oposura appears on-song with the project Rovira said that while the administrative mining system had
on track to produce cash flow in Q1 and provide the company been slowed by the current administration’s quest to reduce
with a springboard into other opportunities in its portfolio. costs, doing business in Mexico was good and the civil unrest
Phase 1 mining of 6,100t @ 13.4% zinc and 10.7% lead, including seen in other parts of Latin America was not occurring in the
2,100t @ 24% zinc and 18.3% lead has been completed at country.
Oposura, which hosts a resource of 3.1mt @ 5% zinc, 2.7% lead “Because of the austerity programme and reducing the size
and 18 g/t silver. of the public services there are fewer public servants to carry
“Within the first quarter/first half [2020] we will be generating out the administrative tasks that need to be done. For example,
cash flow from sales of our lead-zinc concentrate at maybe the granting of mining leases or carrying out or approving
Oposura. That income proves that the concept in mining and environmental applications for drilling or mining programmes
processing is workable at Oposura and we will continue with [might take longer]. The system is a little bit slower than what
more mining and processing to maintain that cash flow into it was a year ago, but it is still working quite well,” Rovira said.


Page 51

REGIONAL ROUNDUP



Zijin moves on Continental




in Colombia

































by Min Zhang and Jeff Lewis, Reuters


hina’s Zijin Mining Group Co Ltd has agreed to buy The Buritica project has measured and indicated gold reserves
CCanadian miner Continental Gold Inc for $US1 billion, but of 165.47t and an inferred reserve of 187.24t, Zijin said. Zijin
a top executive with the target company said elevated security expects its gold reserves to exceed 2,000t after the purchase,
concerns in Colombia pose a risk to the deal. with output eventually increasing by about 20%. It expects the
State-backed Zijin’s offer for Continental, announced on Buritica project to generate robust profit and cash flow after
December 2, aims to secure Continental’s flagship Buritica becoming operational in 2020.
gold project in Colombia. Buritica, which is high-grade and has hearty output estimated
“Zijin doesn’t have any experience in Colombia, and we have make it a rare find, is shaping up as a key test for the future
obviously had some incidents in the past,” Continental chief of large-scale underground mining in Colombia, which remains
financial officer Paul Begin told Reuters. mostly unexplored and has miners rubbing their hands at the
potential opportunities in country.
“But, if a major security incident happened at any project, it
would be considered a material adverse change and they Continental chief executive Ari Sussman said the project is
would have an out if they wanted to,” he said. expected to reach production in 2020 and the “timing is right
for Continental to sell to a more experienced mine operator”.
Four employees of Colombia-focused Continental were killed
in a single month last year, one near Buritica and the others at In a separate statement, Newmont Goldcorp Corp said it would
a different exploration site. tender its 19.9% stake in Continental.
Zijin’s cash offer of $C5.50/share represents nearly a 13% The deal also requires Canadian and Chinese government
premium to Continental’s November 29 close. approvals, Begin said.
Continental’s shares were up nearly 10% after the bid was Canada last year blocked a proposed $C1.5 billion takeover of
made. construction company Aecon by Chinese state builder China
Communications Construction Co Ltd on national security
The deal marks the second acquisition of a Canadian gold
grounds.
producer in as many weeks as miners look to boost reserves
and take advantage of firmer bullion prices. Continental shareholders are to vote on the deal in January.
Begin said he expected to receive all approvals in late March
In late November, Canada’s Kirkland Lake Gold Ltd offered
or early April.
to buy Detour Gold in an all-stock deal valued around $C4.3
billion. Zijin said in November it would buy partner Freeport McMoran
Inc’s copper-gold assets in Serbia for up to $390 million.


Page 52

Troy pulls shutters on Karouni





by Dominic Piper


roy Resources Ltd will be hoping for better fortunes in 2020 However, the accident on October 8 in which an employee
Tafter limping towards the new year. suffered fatal injuries after a 3m high embankment they were
The South American-focused junior miner had a torrid second standing on at the Hicks Extension pit collapsed, saw the
half of 2019, with a fatal accident at its Karouni gold mine in company immediately suspend operations.
Guyana proving the catalyst for a cease work notice from the Two days later, Troy was issued with a cease work order from “a
Guyanese Government (later rescinded) and, eventually, the junior minister within the Ministry of Social Protection”.
suspension of operations. Troy stood down the 200-strong workforce for six weeks without
The problems for the ASX-listed miner date back to July when pay until the cease work order was rescinded. This occurred on
work on the Smarts 3 cut-back stalled due to torrential rains. November 8 but with Smarts 3 still not back to full operation and
Rain had proven a stumbling block throughout Troy’s time in the the company yet to receive the grant of mining permits for the
South American country but as managing director Ken Nilsson Ohio Creek deposit, it chose to retrench 200 employees.
told GMJ sister publication Paydirt in May, the company had “Given that operations have totally ceased, there is a minimum
spent two years making adjustments to ensure it could perform timeline for the restart of operations with mining operations
throughout the wet. required to commence several weeks before the mill is restarted
“The mining operations were tough to begin with; the to provide a sufficient and sustainable volume of feed,” Troy
combination of water and sand meant the wear rates were said in an ASX announcement. “The decision [to retrench 200
higher than anticipated and the volumes of rain during Guyana’s employees] was made as there was not work for them at the
wet seasons made handling and processing of the upper time.”
saprolite ore incredibly difficult,” Nilsson said. How it approaches a restart is still to be confirmed. Troy’s plan
Troy had been campaign mining the saprolite ore to ensure it was to finish the Smarts 3 cutback and mining before the onset
got through the wet season but with the cut-back at Smarts 3 of the 2020 wet season but the company said this would now
increasingly vital to operations – it is the highest grade pit at be impossible.
Karouni – work could not be postponed during this year’s wet “With the current delay in mining activities, it is now very unlikely
season. that Troy will be able to complete the remaining cutback and
However, as well as being the highest-grade orebody, Smarts 3 then the mining before the onset of the next wet season,” the
is also the most challenging with the presence of aquifers and company said. “If that timing is correct, any further time and
other geological features making it susceptible to wall slips. money spent on the cutback now may all be ‘lost’ in the next
Gold production reached only 2,700oz and 2,965oz in July and wet season.”
August, well down on the anticipated 4,500oz as the cut-back Instead, the company is now relying on the Guyanese
slowed further. Troy advised that production forecasts for the Government to give it the greenlight to begin mining at Ohio
six-month period to December 31 would be revised down to Creek and renewal of its licence to import goods free of VAT
24,000oz but said mining rates at Smarts 3 would be increased before it can secure funding to restart operations later in 2020.
over the course of 2019/20.























Mining on the Smarts 3 pit at Karouni has
been postponed due to Troy’s ongoing
operational and permitting issues

Page 53

DRILL BITS fortescuehelicopters.com.au




CalliE stylE targEtEd by Nova First phase Roswell drilling was complete, with samples being
prepared and assayed, and will form part of an initial resource
Nova Minerals Ltd has reported encouraging drill results at the
that was expected to be released in December. San Antonio
Officer Hill JV with Newmont Goldcorp Tanami Pty Ltd.
drilling is continuing.
The Officer Hill project is within EL23150 and covers 206sq
The resource definition drilling is part of an extensive regional
km, just 34km south-west of the Callie deposit at Dead Bullock
exploration programme focused on the immediate mine area
Soak, part of Newmont’s operations in the Tanami region. The
to the south of Tomingley with the aim of providing additional
exploration programme is targeting Callie-style mineralisation
ore feed, either at surface or underground, in the future to the
within EL23150.
operation.
Assay results received from diamond drill holes contained
numerous zones of anomalous gold values including significant
intercepts of 1m @ 14 g/t gold and 0.9m @ 2.75 g/t, 3m @ 1.94 mako shiNEs for rEsolutE
g/t (including 1m @ 4.36 g/t) and 1m @ 1.44 g/t. Resolute Mining Ltd released significant results from diamond
drilling at the Mako gold mine, acquired through the transaction
alkaNE hits high NotE at tomiNglEy for Toro Gold in July, in Senegal. Results confirm the potential of
a coherent high-grade lode at the north-eastern end of the Mako
Alkane Resources Ltd has reported high-grade gold intercepts
open pit. The high-grade shoots are located below the base of
at its Tomingley Gold project in central-west New South Wales.
the 2019 reserve pit shell and have the potential to expand the
A 60,000m resource definition drilling programme on the San open pit reserves and extend mine life.
Antonio and Roswell prospects, south of the Tomingley gold
The results demonstrate the potential for mine life extension at
operation, was half completed at the time of print.
Mako and build on the exceptional operating performance of
Assay results for 10,660m drilled at San Antonio and Roswell the mine since Resolute assumed ownership. Mako produced
returned intercepts ranging between 2.94 g/t and 139.5 g/t gold. 44,191oz at AISC of $US716/oz in the September 2019 quarter.




























John Welborn










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NO JOB TOO BIG OR SMALL, BASED IN PILBARA
OPERATING IN WA, SA, NT + QLD

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Page 54

Dacian has potentially identified a new production source at Mt Morgans






















A total of 15 holes were completed at Mako with results including 0.5 g/t silver from 10m-32m, 54m @ 0.81 g/t gold and 0.63 g/t
6m @ 14.9 g/t gold from 224.7m, 6m @ 11.7 g/t from 224.7m, silver from 56-110m, 2m @ 3.09 g/t gold and 0.77 g/t silver from
10.5m @ 5.4 g/t from 229.7m, 6m @ 8.3 g/t from 58.2m, 27m 222-224m, 2m @ 6.44 g/t gold and 87.4 g/t silver from 324-326m
@ 3.6 g/t from 29.7m, 8.5m @ 11.7 g/t from 74.7m, 15m at 4.1g/t and 8m @ 2.82 g/t gold and 29.96 g/t silver from 342m-350m.
from 10.5m and 25.5m @ 3.16 g/t from 171m. More assays were pending at the time of print.
“The drilling results indicate strong potential to increase open pit
gold inventory at Mako which will extend the life of our new high PhoENix fliEs for daCiaN
quality, low cost operation,” Resolute managing director John
Welborn said. Dacian Gold Ltd has potentially identified a new production
source at Mt Morgans with infill drilling at Phoenix Ridge
delivering outstanding results, including 23.1m @ 30.2 g/t gold.
ColombiaN gold for mEtmiNCo
Drilling has defined a new 350m parallel lode with potential to
Metminco Ltd, soon to be renamed Los Cerros Ltd, has grow the maiden resource of 125,000oz @ 8.1 g/t gold. Infill
intersected a 350m-wide zone of gold mineralisation from drilling was ongoing at the time of print, with a resource update
surface in the first diamond hole ever drilled into the Chuscal scheduled for the March quarter.
gold target in the Mid Cauca porphyry belt of Colombia, part of
Some of the highlights from 40m x 40m infill drilling within
the company’s Quinchia gold project.
the inferred resource at the Phoenix Ridge deposit confirms
Highlights from the first hole of maiden Chuscal drilling continuity of high-grade gold mineralisation with results of 23.1m
programme ended at 452m depth, with CHDDH001 passing @ 30.2 g/t gold from 266.9m, 19.1m @ 5.1 g/t from 223.6m,
through an extensive 350m-wide mineralised zone from surface 2.4m @ 47.5 g/t from 313.35m and 10.2m @ 3.0g/t from 235.6m.
carrying an average uncut grade of 0.57 g/t gold over this
The new parallel high-grade shoot, less than 50m away from
extensive interval.
the existing resource at Phoenix Ridge, has been defined over
A number of intervals with higher grade gold and silver were a 350m plunge-extent and remains open at depth. Highlights
intersected within the broader 350m zone, including 6m @ 2.52 include 2.95m @ 17.7 g/t gold from 300.9m, 7.75m @ 8.3 g/t
g/t gold and 10.25 g/t silver from 0m-6m (including 2m @ 5.56 from 202.2m, 4.35m @ 4.8 g/t from 166.6m, 1.4m @ 9 g/t from
g/t gold and 29 g/t silver from surface), 22m @ 1.22g/t gold and 218.5m, 1.6m @ 6.2 g/t from 308.55m.




Mining Support Rig Support Aerial Spraying Charter













PO Box 1163, Newman WA 6753, 0427 228 262, [email protected]




Page 55

c

DEALS OF GOLD www.ddh1.com.au




rEsolutE PoWErs uP to rEduCE Costs
at syama

A new hybrid modular power station is being developed at
Resolute Mining Ltd’s Syama gold mine in Mali.
Resolute has partnered with Aggreko plc to implement the new
power solution which will combine solar, battery and thermal
generation technologies and reduce day-to-day power costs at
Syama by about 40%.
The new plant will be delivered over two stages. Stage 1 is
expected to be completed and fully operational by December
2020.
Stage 2 will include a new 20MW solar array to be built on the
decommissioned tailings storage facilities footprint. This is
expected to be operational by 2023 at the latest.
Due to its modular design, the new plant will be expandable to
accommodate future mine growth and an electric fleet.
Once the plant is fully operational, forecasts suggest carbon
emissions at Syama will have reduced by 20%.

Barminco was recently named Large Employer of the Year at the
agNEW CrEatEs history as miCrogrid is National Australian Training Awards
sWitChEd oN
Global distributed energy producer EDL has switched on barmiNCo adds NatioNal hoNour to its
the first stage of one of Australia’s largest hybrid renewable rEPErtoirE
microgrid projects.
Perenti Group company Barminco was named Australia’s Large
A 23MW power station which integrates 4MW of photovoltaic
Employer of the Year at the National Australian Training Awards
solar with 19MW of gas and diesel generation is now live at Gold
in Brisbane during November.
Fields Ltd’s Agnew mine in Western Australia.
Barminco was one of three finalists for the award, having also
The first stage of the $112 million project was officially launched
taken out first place in the same category at the West Australian
in late November.
Training Awards in September.
Currently under construction, the next stage of the project will
“Our vision is to be the world’s leading hard rock underground
see the addition of 18MW wind generation, a 13MW battery
mining service provider, and our people are at the core of that
and an advanced micro-grid control system. It is expected to be
vision,” Barminco chief executive Paul Muller said.
completed by mid-2020.
“We are aiming to significantly increase the size of our business
Once completed, the Agnew hybrid renewable project will be
in the next five years in what is a highly competitive labour
the first Australian mine to use wind generation as part of a large
market and our focus is firmly on training and our integrated
hybrid microgrid. It will have a total installed generation capacity
people strategy. It is wonderful to be recognised nationally for
of 54MW, with renewables providing more than 50% of Agnew’s
our work in this area.”
power requirements.



















Page 56

c

www.ddh1.com.au www.ddh1.com.au




Established in Coolgardie three decades ago with just 30 power generation solutions to support the diverse needs of our
employees, Barminco now employs more than 3,900 people clients in remote locations.”
across 22 projects in eight countries and four continents. Meanwhile, Zenith is set to add a further 3MW of installed
Key elements of Barminco’s training strategy are the Barminco capacity to its power station at Northern Star Resources Ltd’s
Training Centres – the first of which recently opened at its head Jundee operations.
office in Perth – with a second facility being replicated on a This additional supply is expected to begin during the June
larger scale in Botswana. quarter.
Zenith’s total build, own and operate capacity is set to rise to
ZENith builds uP morE total CaPaCity more than 222MW following completion of this additional
generating capacity.
Remote energy solutions specialist Zenith Energy Ltd has
completed construction of the 14.5MW gas-fired power station
at Adaman Resources Pty Ltd’s Kirkalocka gold project, about turkish dElight for ariaNa
70km south of Mount Magnet in Western Australia.
Ariana Resources plc has entered into a non-binding MoU
Zenith achieved initial production of commissioning diesel with a major Turkish construction and engineering company
power on September 6, with full gas generation arriving just nine which proposes a series of interlinked transactions to develop
days later. the Kiziltepe mine and the earlier stage Salinbas project in the
The first full month of power supply under the power purchase country.
agreement occurred during October. The MoU contemplates the disposal of various interests to the
“We are extremely pleased to have completed another proposed partner, including 17% of the Salinbas project for
successful project, with the Kirkalocka power station now up $US5 million.
and running ahead of expectation,” Zenith managing director The proposed partner will then inject $US8 million of equity into
Hamish Moffat said. Salinbas via an earn-in arrangement, as well as organise the
“This is a further demonstration of the Zenith team’s ability to bank finance to enable the project to be brought into production.
deliver innovative, reliable, highly efficient and cost-effective The equity injection will be directed towards various project
activities, including additional drilling
and resource estimation, completion
of a DFS, EIA and permitting, freehold
land acquisition, public relations and
new licences.
“We look forward to advancing the
proposed MoU into a JV capable of
unlocking the full value of our assets
in Turkey, which will also target the
development of a future pipeline of
high-value production projects,” Ariana
managing director Kerim Sener said.
“It is the goal of the partners to become
one of the premier gold mining
companies operating in Turkey.”
Zenith is adding another 3MW of installed capacity to the Jundee power station
























Page 57

HIDDEN TREASURE


Miners score




goals for girls





by Tayla Sedgwick, Penrhos College


ining companies are finding sporting organisations the Football West has expanded its regional footprint in WA, including
Mideal partners for broadening STEM and sport participation female participation, thanks to its partnership with Gold Fields
among young women.
Recent years have seen miners, services companies and “We have a state team shirt presentation where Gold Fields
industry groups fund an array of development programmes comes and can speak to the parents,” she said. “It’s opening up
across the Australian sporting landscape, with a focus on eyes for those who are then thinking about what they want to be
increasing female participation. when they grow up.”
Gold Fields Ltd is two years into a three-year partnership with Football In October, Ausdrill extended its contract with the Hockeyroos
West which sees it sponsor West Australian representative sides. which will now span more than a decade.
Ausdrill Ltd recently extended its sponsorship of the Hockeyroos and “This partnership is about supporting the teams on the pitch as
the Gold Industry Group (GIG) is a principal partner of Netball WA. well as supporting the players off the pitch through personal
Football West corporate partnerships manager Jacquie Chambers development opportunities,” Ausdrill chief executive Scott
said young women were now being presented with opportunities Winter said.
because of the partnership with Gold Fields. GIG has committed $5 million to supporting 230,000 netballers
“The regional development officer in Geraldton pulled together an across all levels in WA.
indigenous female team and took them over east to participate “Giving the girls the opportunity to be involved with female
in a tournament,” she said. leaders in their industry exposes them to a variety of career
Chambers said Gold Fields was delighted with the way the opportunities,” Shooting Stars executive Fran Haintz said. “It
partnership had allowed it to showcase the opportunities on offer for really encourages them to set life goals and strive to be the
young women in the mining sector as well as on the football pitch. best versions of themselves.”

INDEX

Adaman 57 Continental 49, 52 Magmatic 13 Roxgold 42
Aecon 52 Magnetic 28
Dacian 19, 55 Saracen 4, 19
African Gold 46 Medusa 8
Detour 27, 52 Saturn 28
Agnico 37, 50 Meteoric 28
Silver Lake 31
Aldoro 12 Electrum 30 Metminco 55
Alkane 13, 28, 54 Endeavour 42, 46, 49 Middle Island 14 Sipa 35
SolGold 37
Altilium 12 Evolution 4, 18-20, 24-25 Millennium 19
Spectrum 12, 21, 31
Alto 14 Exore 21-22 Mithril 50
St Barbara 4, 19, 37
AngloGold 46 Euroz 42 Musgrave 28
Apollo Consolidated 21, 32 Evolution 37 Stavely 22
Ariana 57 Exore 42 Newcrest 4, 37 Sun 50
Atlas 13 Newmont 4, 13, 19, 20, 24, Teck 51
37, 46, 49, 50, 52, 54
Fortescue 13, 28
Ausgold 16 Northern Star 4, 18 Teranga 37
Freeport 52
Azure 51 Nova 54 Tietto 28, 42
Freeport-McMoRan 13
B2Gold 37 Fresnillo 50 NTM 28 Toro 37
Barrick 4, 19, 20, 25, 46, 49 OceanaGold 35-36, 37 Troy 14, 53
Gascoyne 19
Bellevue 18, 21-22, 26-27 Oklo 28, 48 Venus 12, 31
28, 39, 42 Glencore 25
Orla 37
BHP 34, 37, 38 Gold Fields 4, 5-6, 16, 19, West African 28, 42
35, 37, 56
Blackwood 42 Perseus 42
Gold Road 5-6, 19, 35, 39 Yamana 37
Breaker 21, 30, 34-35, 38-39
Golden Rim 28 Regis 18
Buenaventura 37 Zenith 57
Resolute 35-36, 37, 46, 48,
IAMGold 46, 48 Zijin 37, 49, 52
Carawine 28 54-55, 56
Centamin 37, 39 Kirkland Lake 19, 27, 37, 52 Rio Tinto 28, 34, 38
Coeur 50 Rox 12
Page 58

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