(Kitco News) - Elemental Royalties, a diversified gold royalty streaming company, said today that it has noted the recent announcement by Capricorn Metals that it has completed construction and commenced continuous ore processing at its Karlawinda gold project in Western Australia where Elemental holds a 2% NSR royalty.
According to the company's statement, commissioning activities were completed to plan over the last three weeks, culminating in the ball mill and crushing circuit being ready for full operations in the last week. Processing has commenced with low grade ore and will transition to run of mine grade ore over the next week as the operation moves to steady state. Karlawinda is now building gold in circuit and is expected to pour first gold in around one week.
"First ore processing on time and on budget at our largest royalty speaks to the quality of the management team at Capricorn. Karlawinda is expected to almost double our royalty revenues, and will underpin our portfolio of high quality, cash flowing royalties. We look forward to the announcement of first gold and progressing the mine into steady state operations," said CEO of Elemental Frederick Bell.
Capricorn is developing the Karlwinda gold project in the Pilbara region of Western Australia as a stand-alone project expected to produce between 105,000 120,000 ounces per annum over a 12-year mine life. The fully funded project is being developed as an open-pit mining, CIL processing operation.
Friends often ask how accurate the work of our little stamp-mill is, or express the opinion that a little mill cannot do good work. As a reply we would like to place on record the results of a few tests.
There are two periods of work in our laboratory; the fall term, when the class collectively goes through all our chief laboratory-processes, and the spring term, when the students work up their theses, each electing some one process or investigation and devoting himself wholly, or almost wholly, to that.
Some of the tests, the results of which are recorded in this paper, were made in the fall term; the preparation of the apparatus, the sampling and the assaying being done largely by assistants, with the aid of the students. Others were made in the spring term as thesis-work, and the results are due wholly to the students.
The complete tree of our process is patterned after the most approved California mill-practice. It is modified only where the small-scale method must differ from the large, in order to secure results from a brief test lasting a few hours, followed, perhaps, by an interval of many months between tests, which seek to rank in accuracy with those of the large-scale work, running over months and years of continuous work, broken only by brief intervals for cleaning-up.
We use silver amalgam on our apron-plate, painting it on before the run, and scraping it off with the gold-contents afterwards, for two reasons: It renders the plate very quick to catch gold, and it renders the absorption-loss by the copper-plate insignificant, or prevents it altogether.
Our canvas and fine vanner-plant for treating the extremely fine tailings is that known as the Gates canvas-plant, originally designed by G. G. Gates and installed at the Kennedy mine, Jackson, California. Since it has been demonstrated clearly that this canvas-plant can pay only when the assay of concentrates is high, or when the percentage of concentrates is large, we do not always choose this run as the one to illustrate to students the wonderful catching-power of canvas for extremely fine concentrates. We do, however, make it our practice to separate, by classifying, the coarse Frue-vanner tailings from the fine, thereby preparing for canvas should we decide to use it.
Sampling.Many of the ores we run would come under the head of rich spotty ores, as the Colorado phrase is. To crush and cut down such an ore, according to best Colorado rules of sampling, would require breaking the whole batch of from 500 to 1,000 lb. down to 10 or even 30-mesh. This would ruin our gold stamp-mill run. We are thus put in the odd position of having to choose between sampling the lot according to the best rules for safe work and spoiling the stamp-run, or of making a stamp-mill run, using only a very crude sample for valuation, which we could not possibly defend on the score of accuracy. It is needless to say we choose the latter method.
Apron-plate of copper 6 ft. long, 2 ft. wide, covered with silver amalgam ; number of stamps, 3; weight of stamps, 225 lb.; diameter of shoe, 5.75 in.; number of drops, 98 per min.; height of drop, from 4.25 to 5.75 in.; height of discharge, 4.75 in.; screen, horizontally slotted, openings 1/40 in. wide; rate of crushing, 57 to 94 kilos, per hour; plate-slope, 1.5 in. per ft.; feed-water to the battery, 15 kilos, per min.; wash-water on vanner, from 4 to 8 kilos, per min.; Frue vanner-slope, 3.5 to 4.5 in. in 12 ft.; number of shakes, 198 per min.; belt-travel, from 40 to 60 in. per min.; canvas-table, 10 ft. long, 4 ft. wide; canvas-table slope, 1.5 in. per ft.; canvas-table feed, 10 kilos, water per min. and from 0.7 to 0.8 kilos, dry ore per min.; Embrey vanner, 1.5 in. per ft. slope, 80 in. per min. travel of belt, 1240 vibrations of 0.5 in. per min.
The mill is a little 3-stamp Fraser and Chalmers prospecting-mill of 1882. It is very satisfactory in all respects except the number of stamps. A school-battery should have either two or five stamps; the former is preferred by us. Three stamps cannot have an order of drop which satisfactorily distributes the sand.
The canvas-table is supplied with an accurate distributer. The canvas is No. 6 cotton duck, with the warp laid across the table for the greatest roughness, and is cut from a roll woven 10 ft. wide. The feed-water is the quantity, and the pulp is two to three times the quantity used by the Gates canvas-plant. The copper-plate is 1/8 in. thick, of softest copper.
The amalgam is made by dissolving 95 grammes silver in 380 c.c. nitric acid (1.2 sp. gr.) with addition of 817 c.c. water after solution. Pure mercury is then added at the rate of 16 parts mercury to 1 part silver. It should be stirred at short intervals during the formation of the amalgam. The result is a soft amalgam, clean and free from crystals or mercurous nitrate. Failure to follow this rule exactly is liable to give a very impure amalgam, which will require time and trouble to clean.
The apron-plate is cleaned preparatory to the application of silver amalgam as follows: It is washed off with water, scoured wet with infusorial earth or very fine sand, and then washed off with water again. Obstinate black spots can be removed by scouring wet with a flat piece of pumice-stone, adding mercury to plate the cleaned copper. It is then washed all over with a strong solution of cyanide, adding mercury, again rinsed off with water, and then rubbed dry with clean cloth or cotton- waste which must be free from oil. A moderate quantity of mercury is now rubbed on without water, after which the plate is ready for the amalgam. No water is allowed upon it yet.
The clean amalgam is squeezed in chamois skin to a moderately hard ball, and rubbed without water on the clean, bright, amalgamated copper-surface of the apron-plate. (A flat, bristle paste-brush may be useful to obtain an even distribution.) This coating is quick to catch gold, and prevents the gold from coming in contact with the copper. No water is allowed upon it until stamping begins.
After the run, the plate is rinsed off with water, and the amalgam scraped off as clean as possible with a rubber-scraper. More mercury is rubbed on, and the plate is again scraped. This is repeated twice more, and all the amalgam is put together. If there is any hard amalgam which has not been removed, it is gently rubbed wet with a flat piece of pumice-stone in the presence of mercury, and so removed without injury to the plate. The amalgam from the plate, combined with that from the traps, is retorted; the residue is melted with borax in a crucible, and the bullion is parted for gold.
Since the battery is fed with pure mercury, while the apron-plate is coated with silver amalgam, the battery-amalgam enables us to get a valuation on the fineness of the gold caught at this point. We have no means to get this ratio on the portion of the gold caught on the apron-plate.
The mercurous nitrate and a little residual silver nitrate from making silver amalgam are worked over for mercury and silver by immersing strips of iron in the liquid, which precipitates the metals as amalgam.
The method here used in tabulating the results of a test has been found to be a most concise and satisfactory one. As the value of the ore obtained by the mill-run is much more accurate than that based on the assay of the ore, the percentages found in the column headed Per cent, of the total gold are based on the total gold in the ore as found by the mill-run, and not on the assay of the feed; in fact, one of the objects of this work is to show the student the impossibility of valuing a free-milling gold-ore by sampling and assaying.
The degree of accuracy attained here is, we believe, up to that of the very best mill-practice. It has been attained by locating the causes of error, and then by removing them as completely as possible, even by departing, if necessary, from large-scale mill-methods.
The Sino iron project will be the worlds biggest magnetite iron ore mine when fully operational. The open-pit mine, located in Cape Preston, about 100km south-west of Karratha, Pilbara, Western Australia, will produce magnetite concentrate and pellets.
CITIC Pacific Mining Management purchased the mining rights over the property from Mineralogy, a company owned by popular entrepreneur Clive Palmer, in 2006 and initiated construction in the same year. The project employed 4,000 people during the peak construction phase.
The project was completed in 2014, approximately four years behind schedule. It consists of six production lines, of which the first two lines were operational by end of 2013. First shipment of fine iron ore from the mine was made to China in December 2013 and the project delivered 74Mt of high-grade product since exports commenced.
The project has not only suffered significant delays and consequent cost overruns but was also entangled in legal disputes with Mineralogy as the latter filed a case to cancel CITIC Pacifics mining rights over the property citing the failure of royalty payment as the reason.
Conventional open-cut mining methods including drilling, blasting, loading and hauling are used to mine iron ore from the Sino deposit. The pit will be approximately 500m-deep. Processing facilities at the mine site include a crusher, a concentrator, and a 6mt pelletising plant.
Sino Iron employed some of the worlds biggest haul trucks and excavators. Weighing 260t, the haul truck has a capacity of 340t while the main excavator weighs 1,000t and has a load capability of 4,500t of ore an hour.
The crushed ore enters grinding mills where fine ore stream is produced and transferred to magnetic separators to produce a concentrate. The concentrate is thickened and stored before pumping to the port. It is filtered to reduce moisture and exported for use in steel making.
The four in-pit crushers from Germany have a crushing capacity of crushing 4,250t of ore an hour a unit. The conveyer belt bearing crushed ore from the mine to the concentrate area is approximately 1.7km.
The main AG mill with 28MW gearless motors has a diameter of 12.2m and a length of 11m. The ball mill, the second stage grinding unit, is 7.9m in diameter and 13.6m-long. It is equipped with two 7,800kW motors.
Each of the processing lines used 52 magnetic separators, each containing seven press filters and four dewatering buildings. Each press filter has a production capability of 154t of concentrate an hour.
A 480MW power station consisting of seven SGT-800 gas turbines of 44MW each by Siemens supplies power to the plant. It also comprises three steam turbines with 58MW of capacity each and two heat recovery steam generators.
Ancillary facilities at the mine include a 140,000m a day desalination plant and a dewatering pit with a filtration area of approximately 5,600m. The EPC contract for the desalination plant was awarded to Ausenco.
Forge Group Construction was contracted for the design and construction of several facilities at the mine, including filter building structures, foundations for equipment such as stackers and tanks, as well as the main control building at the port.
Golder Associates was involved in various stages of the project right from the exploration stage to the development stage, in activities such as reviewing the reserves, on-site drilling, GIS services and tailing studies.
VDM Group subsidiary Wylie and Skene was awarded a contract by MCC for the construction of accommodation and warehouse facilities at the project site. Under a $240m 50:50 JV with NRW Civil & Mining, VDM performed earthworks at the mine.
Structural, mechanical and piping (SMP), electrical, and concrete works were carried out by Thiess. BGC Contracting built the foundations for six trains of autogenous grinding (AG) mills and pebble crushers under an $80m contract. Reinforced Earth constructed the walls for crushers three and four under a contract from BGC Contracting.
Murphy Pipe and Civil constructed concentrate, desalination and return pipelines for the mine using the equipment and personnel supplied by Orion Pipeline. MCC contracted Monadelphous for pipeworks associated with the concentrator. CADS assisted in the construction of the $20m slurry and return water pipelines.
Metso Minerals supplied mineral processing equipment for the mine. Iron ore processing equipment comprising two PE jaw crushers, one PY Cone crusher, one ball mill, one ZSW vibrating feeder, one YK vibrating screen and one conveyor belt were delivered by DSMAC.
So they tried it again and again and again. Then we decided to fire-assay it, to see how far it goes past 100,000, which is 100 grams gold [per tonne]. When they flashed it through the fire assay it was 113 grams.
Five ppb is the background level of gold-in-soil in the district and 35 ppb is in the 95th percentile of White Golds database. I am happy if I have a soil anomaly thats 50 ppb. So this rocked the boat pretty heavy. (The next highest sample in the database contained 9,016 ppb gold, from the companys Donahue target.)
After collecting grab samples grading up to 605 grams gold near the exceptional soil on its Hen property in the west-central Yukon, the company moved a rotary air blast (RAB) drill to the anomaly, which it named the Titan discovery. It drilled three holes before the end of the 2019 season. One hole was right in the mag target. We werent quite sure if we hit anything. You could see in the XRF there was copper and bismuth, but youre never sure if it has got gold in it.
Ryan says Titan is unique because its associated with magnetite, unlike anything else he has seen in the region. It looks and smells like skarn, but were not hanging our hat on that, he says. Whatever it is, its unusually high grade.
Next season well probably get at least six to eight diamond drill holes in there because we see it magnetically, there are five other targets that are big mag balls in there. When you invert it, you can see it in 3-D and youre going holy crow.
In 2018 the company found Vertigo, 15 km east of Titan, when RAB drill results returned high-grade intercepts including 23.4 grams gold per tonne and 145 grams silver over 24 metres from surface. White Gold followed up in 2019 by hitting Vertigo with 9,500 metres of diamond drilling over 46 holes. Early results returned shallow gold mineralization including 4.3 grams gold per tonne over 12 metres, from 31 metres depth. All drill holes hit gold and the company has identified at least six high-grade structures that remain open in all directions.
Vertigo is on White Golds JP Ross property and the latest results suggest Vertigo is a structurally controlled mineralized zone and part of a larger system, which contains at least 10 other gold targets (of which only Vertigo has had diamond drilling), over a 250 sq. km trend. The company says Vertigos gold is hosted within a network of west-northwest-trending, moderate to steeply south dipping shallow structures that are subparallel to topography. High-grade mineralization is associated with quartz veining, brecciation and strong sericite-quartz alteration.
Highlight holes from other recent discoveries on White Golds land include 20.6 grams gold per tonne over 6 metres at Ryans Surprise, 3 grams gold over 10 metres at GS West and 1.1 grams gold over 50 metres at Betty
Highlight holes from other recent discoveries on White Golds land include 20.6 grams gold per tonne over 6 metres at Ryans Surprise, 3 grams gold over 10 metres at GS West and 1.1 grams gold over 50 metres at Betty.
The company also holds the advanced Golden Saddle and Arc deposits, which contain 14.3 million indicated tonnes grading 2.26 grams gold per tonne and 10.7 million inferred tonnes grading 1.48 grams gold for more than 1.5 million contained gold oz. across all categories. The goal is to get it past the 2 million oz. mark, then the economics turn positive. Ryan says this could take another one or two seasons of drilling.
In years past the graphitic Arc-style material was deemed problematic and was ignored. However, White Gold sent some Arc samples to 17.1% shareholderAgnico Eagle Mines(TSX: AEM; NYSE: AEM) for testing. Agnico has experience dealing with graphitic ore in Finland and got 85% gold recoveries from pretreated Arc material. Agnico said, the gloves are off, you can go after the Arc target now.
Results are pending from 6,000 metres of diamond drilling on the Golden Saddle and Arc deposits, which White Gold acquired fromKinross Gold(TSX: K; NYSE: KGC) in a vend-in deal that included $10 million in cash and a 19.9% stake in the junior. Kinross stake is now 17.1%.
White Golds model is to employ thorough, methodical exploration across its more than 400 sq. km land package which covers more than 40% of the White Gold district make discoveries and spin them out rather than pursuing resource delineation with the company.
Unlike many juniors, White Gold will not throw money around like a machine gun and rush into expensive diamond drilling campaigns before properly understanding a target, Ryan says. The company relies on innovative and economical techniques such as soil sampling and RAB drilling to identify and flush out targets.
This is the only game where the norm is to fail The only way to de-risk a project from failure is to do it right. Exploration is not just about geology or geophysics or geochemistry or structure its about all four of those working together.
Ryan says this method is based on what the major mining companies did in their exploration departments when he started in the industry in the late 1970s. And he says discoveries like the Vertigo prove it works.
Vertigo was found under everybodys noses. Theres roads going through there everywhere, theyve been mining that creek for almost 120 years for placer gold and here were finding these new high-grade shoots right off the road. We found four new ones rightonthe road, within 50 metres.
They havedesignedandadaptedtheir method to be extremely efficient in the part of the world they are working in, Gosselin says. They cover a lot of ground and generate new targets at a very reasonable cost.
Weve still never figured out where the 20 million oz. of placer gold came from. Thats whats interesting about this JP Ross, its in Henderson Creek, a sub-belt from the Klondike gold fields, a unique placer area where about 80,000 oz. came out of. And now were finally finding the first physical evidence: narrow high-grade veins and theres a bunch of these. Can we make enough tonnage out of all of these? Theres a good probability because its all in one area.
Ryan points out the Yukon government is helping build a haul road toNewmont Goldcorps (TSX: NGT; NYSE: NEM) nearby Coffee gold project. The road will pass by several White Gold properties, including JP Ross and Hen. Once the road goes in and you get a couple of mills going over the next five to six years, it doesnt matter what I find. Just like Timmins, if you find a half a million ounces you can truck it to one of the mills.
I come from the Timmins camp. I gotta remind people and myself that there youre looking for gold 1,200 feet below surface and here Im driving down these bush roads finding it on the road welcome to the Yukon.
Company revises 2021 production guidance and maintains 2022 2023 production guidance Mining activities and project work have resumed at Tasiast TORONTO, June 21, 2021 Kinross Gold Corporation today provided an update regarding the temporary suspension of milling operations at its Tasiast mine due to a fire that occurred on June 15, 2021. Mining activities and project work have resumed Kinross confirms there were
TORONTO, June 21, 2021 (GLOBE NEWSWIRE) Kinross Gold Corporation (TSX:K; NYSE:KGC) (Kinross and the Company) today provided an update regarding the temporary suspension of milling operations at its Tasiast mine due to a fire that occurred on June 15, 2021.
Kinross confirms there were no injuries as a result of the fire. Mining activities have resumed at Tasiast, including stripping to access higher grade ore. Construction work on the Tasiast 24k expansion project has also resumed and the Company is evaluating opportunities to optimize the project while milling operations are suspended.
Kinross is drawing on resources from across the Company to expedite actions to reduce the SAG mills downtime and to review all potential strategies to mitigate the expected production deferral. With mining activities continuing at Tasiast, Kinross expects to process stockpiles of higher grade ore when the mill restarts.
Based on the initial estimate of the mills downtime and with ongoing work on the 24k project, Tasiasts throughput capacity is now expected to reach 21,000 tonnes per day during Q1 2022, compared with the previous estimate of year-end 2021. Throughput capacity is expected to increase to 24,000 tonnes per day by mid-2023, which is unchanged from the original 24k project estimate.
Despite the mill incident at Tasiast, the Company remains in a strong financial position and is committed to evaluating options to further enhance shareholder returns, which is supported by Kinross Board of Directors.
All of our people are safe and accounted for at Tasiast, which is our most important priority. Our site team responded quickly to the fire, which limited the main impacts to the mill discharge area. While we are continuing to assess the impact and are investigating the cause of the incident, we are pleased to report that mining and project work have now resumed at site. We are now focused on restarting milling operations at Tasiast and are mobilizing technical resources from across the Company to expedite actions and achieve this goal.
Although this unfortunate incident is expected to impact our annual production guidance, our financial position and longer-term outlook remain very strong. We continue to expect production to increase to 2.7 and 2.9 million ounces in 2022 and 2023, respectively, and drive our robust free cash flow profile. The strength of our investment grade balance sheet, free cash flow position and growing production from our global portfolio underpin our commitment to further enhancing shareholder returns, including a potential share buyback program.
In connection with this news release, Kinross will hold a conference call and audio webcast on Tuesday, June 22, 2021at 8:00 a.m. ET to discuss the update, followed by a question-and-answer session. The call-in numbers are as follows:
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. Our focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).
All statements, other than statements of historical fact, contained or incorporated by reference in this news release including, but not limited to, any information as to the future financial or operating performance of Kinross, constitute forward-looking information or forward-looking statements within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for safe harbor under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements include future events and opportunities including, without limitation, statements with respect to: the potential impact of the mill fire on operations at Tasiast; our estimates, expectations, forecasts and updated guidance for production at Tasiast, our revised production guidance across all of our assets, our expectations regarding potential enhancements to shareholder returns, all-in sustaining cost and capital expenditures, cost savings, project economics (including net present value and internal rates of return); the impact of the fire on the mineral reserve and mineral resource estimates at Tasiast, the timing and amount of estimated future production, capital expenditures, the costs and timing of the development of the 21k and 24k projects, and the proposed timing of re-commencing mining and processing activities. The words anticipate, estimate, expect, opportunity, and option or variations of or similar such words and phrases or statements that certain actions, events or results may, could, will or would occur, and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates, models and assumptions of Kinross referenced, contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our Annual Information Form dated March 30, 2021 and our full-year 2020 and first-quarter 2021 Managements Discussion and Analysis as well as: (1) the estimated cost and projected timing of repairing and re-starting the SAG mill being consistent with the Companys current expectations; (2) the Companys estimates regarding the timing of completion of the 21k project; (3) the Companys ability to successfully recover under its insurance policies being consistent with managements expectations; (4) the impact of the incident on the Companys current production guidance, mineral reserve and mineral resource estimates, and estimated overall value of Tasiast; (5) the estimated duration of the suspension of the SAG mill being consistent with Kinross current expectations; (6) the construction of the 24k project being unaffected by the suspension or re-start of the SAG mill; (7) the estimated impact on the timing of completion of the 21k project being consistent with the Companys expectations; and (8) the viability of options to enhance shareholders returns and the Companys ability to obtain the necessary consents and approvals related to such options. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. These uncertainties and contingencies can directly or indirectly affect, and could cause, Kinross actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Kinross. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about managements expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the Risk Factors section of our Annual Information Form dated March 30, 2021 and the Risk Analysis section of our full-year 2020 and first-quarter 2021 Managements Discussion & Analysis. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward looking statements, except to the extent required by applicable law.
Where we say we, us, our, the Company, or Kinross in this news release, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable. The technical information about the Companys mineral properties contained in this news release has been prepared under the supervision of Mr. John Sims who is a qualified person within the meaning of National Instrument 43-101. Mr. Sims was an officer of Kinross until December 31, 2020. Mr. Sims remains the Companys qualified person as an external consultant.
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