Drill results please Northern Vertex CEO

Northern Vertex Mining Corp. [NEE-TSXV; NHVCF-OTC NASDAQ Int’l] on Wednesday December 18 announced the results of 29 holes covering 14,140 feet from the reverse circulation infill drill program that was recently completed at the company’s Moss Gold Mine in northwest Arizona.

The program was carried out within the western area of the Moss Mine, west of the current mining operations. The aim was to upgrade the Inferred Resource to Measured and Indicated, and expand the planned pit to the south and to depth.

Highlights include 45 feet of 1.388 g/t gold, 25 feet of 1.488 g/t gold, and 140 feet of 0.919 g/t gold.

Northern Vertex shares were unchanged at 24 cents on Wednesday and trade in a 52-week range of 15.5 cents and 35 cents.

Northern Vertex is a development stage company that recently put its flagship Moss gold-silver project into production. The mine reached the commercial production stage in September, 2018, after the company’s partner Sprott Private Resource Lending LP, agreed to provide up to US$100 million in acquisition and development funding as well as a CAD$2 million private placement.

By deploying low-cost heap leaching recovery methods, Northern Vertex is expecting the Moss project to produce 45,000 ounces of gold equivalent during the first five years of production. Annual cash flow is projected at US$24 million and will be used to fund expansion and acquisitions.

The company is led by Ken Berry, President and CEO, an experienced financier who has outlined a strategy that aims to leverage the company’s strong balance sheet, production, cash flow, and financial partnerships to elevate Nothern Vertex to mid-tier gold producer status, generating over 200,000 ounces of gold production annually.

He plans to achieve that goal via a process of consolidation using the Moss Mine as a springboard.

The recently completed drill program targeted the western area of the Moss resource known as the West Pit. Drilling tested oxide gold mineralization within the Moss mineral resource and at depth beyond the current boundaries of the open pit.

“We are very pleased with these infill drill results, which compare favourably with strongly mineralized holes previously drilled through the main Moss ore body,” said Berry. “Results include intersecting multiple mineralized zones within the Moss vein extension and numerous veins and stockworks in the hanging-wall.”

Berry said mineralization is wide open to the west with historic drill holes and surface sampling defining a 1.7 kilometre-long corridor of gold mineralization, including several long intercepts of Moss mine type gold and silver grades.

“We believe this mineralized corridor is a highly prospective area for expanding mineral resources and reserves at the Moss mine.”

Berry went to say that the completed drill program has boosted confidence in the company’s resource modelling, currently underway with a new block model expected in mid-January, 2020. Drilling will resume in 2020 as the company begins to exploit the western section of the property.

Don’t Fret over Winter Woes. Do This Instead!

This post Don’t Fret over Winter Woes. Do This Instead! appeared first on Daily Reckoning.

Dear Rich Lifer,

In many parts of the USA, dealing with winter weather is no joke!

Whether you’re in Ohio or Oregon, the snow, freezing cold, and weeks without seeing the sun can really drag you down.

Social occasions also become fewer and farther between because no one wants to go outside in dreadful weather.

Not only that, it’s a major inconvenience to get around, and living costs, like food, car insurance and can be much more expensive, not to mention your heating bill. For many people, winter weather drives prices up and quality of life down.

What’s a Man to Do?

The good news, is now that you’re retired, you don’t have to stay put if you don’t want to… and there are many beautiful cities with warmer weather, low cost of living, and lots to do even in winter.

Moving may seem extreme, but when you think about it, you’re spending a quarter of your life (or more, depending on how far north you are) living a lower, more expensive quality of life. And if you’re suffering from medical conditions like COPD, asthma, or arthritis, the cold isn’t just unpleasant – it can be downright painful and even dangerous.

So maybe it’s time to make the move to warmer weather, become a snowbird, or at least plan extended trip to get away from the worst of winter.

If getting away from the cold weather appeals to you, here are a few cities you should consider retiring in if you want to save money. Best of all, we’ve skipped the costly old favorites like San Diego, Austin, and Ft. Lauderdale. Don’t get me wrong, those cities are well known for a reason, but these cities are just as good – maybe even better – and a lot more affordable, too.

Round Rock, Texas

What’s so special about this place? Round Rock is one of the fastest growing cities in America – and for good reason. The mild weather, sound infrastructure, and low crime make this a very enjoyable place to call home. Also, with a booming real estate market, many of the houses are sporting the latest comforts and amenities.

If you’re a fan of barbecue or Tex-Mex, you’ll be in good company in Round Rock. There are several restaurants specializing in either cuisine, and some of the best barbecue in the world can be found right next door in Austin.

  • Average Temperatures In December – 62 high, 41 low
  • Median Home Price – $275,800

Ahwatukee, Arizona

What’s so special about this place? Life in Ahwatukee is all about relaxing and enjoying the great outdoors. There are three golf courses and opportunities for hiking and trail riding. If cooking is your thing, you can try your hand at the famed Ahwatukee Chili Cookoff – this annual festival lasts three days!

The housing market is moving pretty fast, but don’t worry – with a couple hundred newer homes available, you’ll be sure to find one you love.

  • Average Temperatures In December – 66 high, 39 low
  • Median Home Price – $319,200

Las Cruces, New Mexico

What’s so special about this place? Believe it or not, Las Cruces is getting hot on the wine scene! You can go wine tasting at a number of wineries along the Las Cruces wine trail. If you’re not into the vino, there are tons of other things to do, too – camping, golf, and bird watching are all local favorites.

Whether you want a new custom home or an older home with acreage, Las Cruces has got you covered – just about anything you could wish for in a home is available here, and the housing market is cheaper than many other locations.

  • Average Temperatures In December – 58 high, 29 low
  • Median Home Price – $171,800

Jacksonville, Florida

What’s so special about this place? Anyone who loves the beach would love to call Jacksonville home. With 22 miles of coast, you can enjoy fishing, diving, and (most importantly in my book) surfing, as well as all sorts of other water sports practically year round. If you prefer watching sports, the Jacksonville Jaguars are a local fan favorite – and watching football when it’s warm at the stadium is pretty nice!

Jacksonville real estate isn’t just beachy shacks. If you’re into a particular style of architecture, you’re sure to find it here – there are thousands of homes on the market, so you’re sure to find the perfect one for you at a great price.

  • Average Temperatures In December – 68 high, 49 low
  • Median Home Price – $180,300

Lafayette, Louisiana

What’s so special about this place? A lot of life in Louisiana is all about the food. From crawfish to oysters to etouffee, be prepared to eat like a king! There’s such a rich tradition in this area – French blended with Cajun and Creole – that permeates just about everything, and with the second largest Mardi Gras celebration, a good time is usually had by all.

Simplicity is key in Lafayette homes – you’ll find many comfortable one-story ranch style homes here, and they’re all pretty affordable, too.

  • Average Temperatures In December – 64 high, 45 low
  • Median Home Price – $159,100

Murrieta, California

What’s so special about this place? While the median home price in Murrieta is higher than the others on this list, it’s also more than $100,000 cheaper than the rest of California. It’s also one of the safest cities in the state, and is just a short drive from San Diego or Orange County, so you can hit the beach, visit Disneyland (a great choice if you have young grandkids), or enjoy food and beverages at world class restaurants and breweries.

If you believe bigger is better, then you’ll love house shopping in Murrieta. You’ll find many homes that are 2500Sqft –or even bigger– and many of them are on the new side, too.

  • Average Temperatures In December – 67 high, 49 low
  • Median Home Price – $446,100

Charleston, South Carolina

What’s so special about this place? Charleston is rich in history, and you see that reflected everywhere. There’s a strong arts community here, and you can visit a museum or a beautiful old plantation just about any day of the year. If you prefer being active, they’ve got sailing, fishing, golf, and tons of other activities you can enjoy year round.

If you’re looking for a slice of Americana, you’ll love the homes in Charleston. There are a few classic architectural styles in town – you’ll be sure to enjoy them all.

  • Average Temperatures In December – 61 high, 46 low
  • Median Home Price – $316,500

With choices like these, does it really make sense to stay put through another harsh, horrible winter? Maybe it’s time to find somewhere you’d really love to live…

If you’re not completely sold on moving to one of these cities, now is the perfect time to schedule a trip to see how you like it. You’ll be able to see the sights, learn more about the community, and, of course, escape the cold for a little while!

To a richer life,

Nilus Mattive

Nilus Mattive

The post Don’t Fret over Winter Woes. Do This Instead! appeared first on Daily Reckoning.

M3 Metals up 25% on Arizona gold option

M3 Metals Corp. [MT-TSXV; XOVP-FSE] said Tuesday October 8 that it has secured an option to acquire a 100% interest in the Mohave Gold Mine Project, which covers numerous historic gold mines in the Weaver mining district of Mohave County, Arizona.

M3 Metals advanced on the news, rising 25% or $0.025 to 12.5 cents on volume of 2.1 million. The shares have been trading in a 52-week range of $0.09 and 60 cents.

The Vancouver-based junior is currently advancing its Mohave Mine Gold Project along with its Block 103 Iron Ore Project in Newfoundland and Labrador. The company is also active on copper and gold projects in Manitoba.

“We are extremely pleased with the acquisition of this advanced-stage project that still has significant upside,” said M3 Metals President Adrian Smith.

M3 Metals said it has secured the option on the Mohave Project, which covers 160 claims, from two separate vendors. In addition to the historic gold mines, there is an approximate 5-km gold-in-soil and gold-in-rock geochemical anomaly that extends across the entire length of the project.

Large areas of the anomalous gold geochemistry, including several historic gold mines, have not had any modern exploration drilling. The company has secured the mineral rights to all the historic mines on the project in the belief that they may be related to a property-wide gold system.

“Historically, the private owners were focused on development and did not test the numerous remaining targets on the project for its larger potential,” Smith said. “We are eager to begin an aggressive drilling program campaign on the extensive target area on the southern portion of the property while expanding on those to the north.”

Meanwhile, to earn the 100% interest, M3 Metals has agreed to make cash payments up to US$3.57 million over the next four years. It has also agreed to spend US$1.5 million on exploration. Under the agreement, the vendors are entitled to a 1.5% net smelter royalty following payment of the final US$3 million in cash.

M3 Metals said there have been more than 550 historic drill holes (68,000 feet) completed on the property. Drilling was focused on the development of historic non-compliant resources within limited areas of the project. All historic drilling was done in the northern one-fourth of the property, and most of the holes were shallow, 100-feet deep, air-track holes, many of which stopped in mineralization.

Most of the work was done by private companies in the 1980s and 1990s. Previous work included blasting of an initial bench at the Klondyke Mine, work that represented the beginning of an open pit style operation.

Currently the company is engaged in an aggressive data compilation and data recovery exercise. It said it will update the market when appropriate.

Kerr Mines set for big drill program at Copperstone

Kerr Mines Inc. [KER-TSX; KERMF-OTC; 7AZ1-FSE] said Thursday October 3 that it is planning for a 10,000-metre resource expansion drilling program at its Copperstone gold project in Arizona.

Set to commence in early 2020, the program marks the second phase of resource expansion drilling and follows a successful 5,000-metre phase one program.

Kerr recently sold its remaining properties in Northern Ontario to Orefinders Resources Inc. [ORX-TSXV; ORFD-ORFD] in a move that will allow Kerr to focus on its Copperstone Project.

The Copperstone Mine produced nearly 500,000 ounces of gold between 1987 and 1993 from an open pit operation. Significant remaining infrastructure from that period includes offices, maintenance shops laboratory building, permitted tailings facility, processing facility and mill.

The mine is located in La Paz County, Western Arizona, within the Walker Lane mineral belt. The property is accessible from Phoenix on Interstate 10 to Quartzsite and from Quartzsite on Route 95.

Gold in the area is commonly associated with hematite, chlorite, quartz, manganese oxide and copper oxide mineralization. In the case of Copperstone, the gold is not encapsulated in sulphides or silica, and the ores do not contain active carbon. This means the ores at Copperstone are not refractory.

Kerr recently announced the results of an independent pre-feasibility study and resource update for the project. The resource update is in compliance with NI 43-101 standards of disclosure.

Highlights from the pre-feasibility study, include average annual sales of 38,347 ounces of gold, initial capital of $22.7 million, and all-in sustaining cost of US$875 per gold ounce. The project hosts 175,093 ounces of contained gold in the proven and probable category.

On Thursday, the company said the second phase of drilling will continue to focus on resource expansion by way of underground core drilling in the D and C zones, and surface reverse circulation drilling in the B, A and Footwall zones.

Recent step-out drilling results as previously reported, including from drill hole 18-21-06 (16.8 metres of 40.0 g/t gold, including 3.0 metres of 98.26 g/t gold), returned significant values and will be followed up, the company said.

It said the next phase of drilling will focus on stepping out along strike and down dip beyond the previously defined mineralized domains. Results will be combined with those from the recently completed first phase to update the current resource estimate. “Based on drill results to date, the updated resource estimate is expected to reflect an increase in overall tonnage and grade,” the company said.

On November 6, 2018, the company said it had received approval for and signed a term sheet for a finance facility with Sprott Resource Lending (Collector) LP for up to US$25 million of senior secured project financing. The first phase of the financing was completed in November 2018, with the company receiving US$2 million under a senior redeemable convertible promissory note.

The company continues in discussions with Sprott regarding the balance of the Sprott project financing package. At the same time, the company said it is considering alternative forms of project financing that could further enhance project economics by reducing the effective cost of capital.

Shares of Kerr Mines eased 15% or $0.03 to 17 cents on Thursday. The 52-week range is 10.5 cents and 27 cents.

TriStar Completes US$8 million Agreement with Royal Gold

TriStar Gold Inc. [TSXV: TSG] is pleased to announce it has entered into a royalty agreement with Royal Gold, Inc. (Royal) for an investment by Royal or its affiliate of US$ 7.5 million as contemplated in the TriStar press release on May 28, 2019. In addition to the US$500,000 announced previously, the material components of the royalty agreement are:

  1. TriStar and Royal have entered into a royalty agreement for total consideration of US$ 7.5 million:
    1. TriStar will sell and grant to Royal a newly created 1.5% NSR royalty (incrementally earned pro-rata with the funding schedule) on the CDS property
    2. TriStar will grant to Royal 19,640,000 common share purchase warrants (to be issued pro-rata with the funding schedule), each entitling Royal to purchase one common share of TriStar Gold Inc. at an exercise price of C$ 0.25 per common share for a period of five years.
  2. Funding Schedule.
    1. First payment, US$4.5 million, this payment has been made.
    2. Second payment, US$1.5 million, by November 30, 2019,
    3. Third payment, US$1.5 million, by March 31, 2020

The second and third payments assume TriStar can demonstrate (amongst other things) that drilling is advancing substantially according to the agreed upon work program to complete a prefeasibility study (PFS) due in 4th quarter 2020.

The transaction proceeds will be used to complete a PFS for the CDS gold project, to advance permitting activities, and for general corporate purposes.

“This is a phenomenal time for TriStar,” says Nick Appleyard, TriStar’s President and CEO. “We’ve grown the resource seven-fold in the past 30 months, and we’re excited to now be funded through the PFS which is aimed at establishing mineral reserves for the first time and presenting a blueprint for a profitable mine. To this end, we’re focusing 20,000m of infill drilling in Esperança South; following the PFS we’ll turn our attention to expanding resources and reserves elsewhere on our mineral concessions.  I also want to take this opportunity to thank Royal Gold for recognizing the potential of CDS.”

Board of Directors

Mark Jones has decided to stand down as Executive Chairman, effective immediately, but will continue as a member of the board and in the role of non-executive Chairman.  TriStar would also like to thank Mark for his many years of service as Executive Chairman.

Investor Relations

TriStar is also pleased to announce it has hired Focus Communications Investor Relations Inc. as the company’s IR consultant.  Its principal, Leo Karabelas is located in Toronto and has more than 14 years’ experience in investor relations. Mr. Karabelas is joining us at this exciting time to help with communicating to investment dealers, advisers and Shareholders – both current and prospective – to increase awareness of and interest in TriStar. Focus Communications will be paid a monthly fee of C$5,000 per month for an initial one-year period and Leo will be awarded 400,000 employee stock options.

Qualified Person

  1. Mohan Srivastava (P.Geo.), Vice President of TriStar, is the Qualified Person who has reviewed the technical information contained in this news release and has approved its disclosure.

About TriStar:

TriStar Gold is an exploration and development company focused on precious metals properties in the Americas that have potential to become significant producing mines. The Company’s current flagship property is Castelo de Sonhos in Pará State, Brazil. The Company’s shares are listed on the TSX Venture Exchange under the symbol TSG. Further information is available at www.tristargold.com.

For further information, please contact:

TriStar Gold Inc.
Nick Appleyard
President and CEO


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Forward-Looking Statements

Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation which are not historical facts and are made pursuant to the “safe harbour” provisions under the United States Private Securities Litigation Reform Act of 1995. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects” or “it is expected”, or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward looking statements in this press release include the completion of the second and third payments under the under the royalty sale, the scope and success of the planned exploration program at the Castelo de Sonhos project, the use of proceeds of the royalty sale, the completion and results of the planned PFS, and the identification of mineral reserves on the CDS property.  Such forward-looking statements are based upon the Company’s reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause the Company’s plans to change include changes in demand for and price of gold and other commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments in Brazil; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of the Company’s projects; risks of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Taseko stock gets boost on first copper production in Arizona

Shares of Taseko Mines Ltd. (TSX:TKO) jumped over 8% and hit a five-week high on Monday afternoon, bringing the company's market capitalization to nearly C$220 million. The company has just announced that its Florence copper production test facility in Arizona is now fully operational, from the wellfield to the SX/EW (solvent extraction and electrowinning) plant. Located between Phoenix and Tucson, Florence is an in situ project with 24 injection, recovery and monitoring wells.

According to the company, about 1.5 million tonnes of underground copper ore have been contacted with leach solution over the past three months. Copper concentrations in the solution has recently risen to levels which have allowed the SX/EW plant to begin operation and produce copper.

Russell Hallbauer, President and CEO of Taseko, commented: “As expected, and reported in our 2017 technical report, the initial leaching period has taken approximately three months and all results are in line with expectations. With the entire test wellfield and SX/EW plant now operating as a continuous unit, we will use the coming months to refine operational parameters which will help with the ramp up of the commercial plant."

"Florence will produce an average of 85 million pounds [approximately 38,500 metric tonnes] of copper annually for 20 years at an average operating cost of $1.10 per pound. With a net present value of roughly C$1 billion, there is a huge disconnect with Taseko’s market capitalization,” added Hallbauer.

The company also expects to have a financing package in place so that construction can start on the commercial plant in the next 12 months.

Taseko Mines is headquartered in Vancouver, British Columbia. It also operates and owns 75% of the Gibraltar mine in BC, the second-largest open-pit copper mine in Canada with an estimated production of 140 million pounds [approximately 63,500 metric tonnes] of copper per year.

(A version of this article first appeared in the Canadian Mining Journal)

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Para Resources to drill Tr-Ue gold vein in Arizona

Para Resources (TSXV: PBR) will drill an initial five holes totaling 3,750 feet in conjunction with a geophysical program at its Tr-Ue gold vein near Oatman, Arizona, and 1.5 miles from the company’s Gold Road mill and mine.

The program will begin in May 2019 and explore around the historic United Western and United Eastern gold mines.

United Western operated between 1928 and 1940, producing 40,000 oz. gold at 0.3 oz. per tonne while United Eastern operated from 1917 to 1923, producing 550,000 oz. gold at 1.12 oz. per tonne.

The company says its goal is to find resources that could provide higher grade feed or expansion to the Gold Road mill. Gold Road can currently process 500 tons per day, but is permitted to process up to 1,000 tons per day from any Oatman district mine with similar ore chemistry.

If its initial drilling is successful, the company plans to drill an additional 27,000 feet at Tr-Ue across 45 holes to develop an inferred resource. The company is targeting at least 100,000 oz. gold at 0.3 oz. per tonne.

Para owns 88% of Gold Road Mining, its subsidiary. It bought the mine and mill for $7 million, and acquired the adjacent Tr-Ue claims in early 2018.

(This article first appeared in The Northern Miner)

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Hudbay Minerals granted final permit for $1.9B Rosemont copper mine

Canadian miner Hudbay Minerals (TSX, NYSE: HBM) scored a big win this week after the U.S. Forest Service approved the company’s mine plan of operations (MPO) for its $1.9 billion Rosemont copper project in Arizona.

“Rosemont is now a fully permitted, shovel-ready copper project and we look forward to developing this world-class asset,” president and chief executive Alan Hair said in a statement.

The project, located about 50 km southeast of Tucson, contemplates an open pit on the eastern slope of the Santa Rita that will churn out 112,000 tonnes of copper concentrate a year.

It’s expected to be the third-largest copper mine in the U.S., employing about 500 people and accounting for approximately 10% of the country’s total copper production.

Rosemont will be the third-largest copper mine in the U.S., employing about 500 people and accounting for approximately 10% of the country’s total red metal production

Hudbay Minerals and Rosemont’s previous owner, Augusta Resources, had pushed to get the mine permitted for more than a decade, during which the project faced local opposition and skepticism from regulators about water issues in the semi-arid region.

Only last week, the Toronto-based miner received the long-awaited water permit from the U.S. Army Corps of Engineers, after outlining several measures to reduce impacts on the environment, including what it said it was an "unprecedented" use of dry-stack tailings.

Hudbay intends to squeeze water for reuse from about 528 million tonnes of processed ore and to reduce water use by about 50%, compared to what it would consume if it were to use conventional tailings.

Opponents, however, argue the measures still fall short.

We're going to fight this," U.S. Rep. Ann Kirkpatrick, D-Tucson, told the Tucson Sentinel after the announcement. "It's not that I'm opposed to mining. I'm opposed to this mine because water's a major problem in the area… (taking) water from the Green Valley aquifer will create irreversible water problems."

Environmental and community groups and three nations, including the Tohono O'odham Nation, have already filed suit to try to overturn the Forest Service decision. They say they'll likely try to overturn the Corps decision as well.

Hudbay has just bought out its partners in the copper venture and announced it would begin looking for a long-term joint venture partner to help finance the mine.

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Hudbay buys out Rosemont partner for $75m

Toronto’s Hudbay Minerals has reached an agreement with United Copper and Moly to buy out UCM’s 7.95% interest in the Rosemont copper project 50 km southeast of Tucson. The purchase includes termination of all UCM’s remaining earn-in and offtake rights.

The price of the deal is $45 million in cash now plus three annual installments of $10 million beginning on July 1, 2022.

The arrangement simplifies the ownership structure and removes the current governance structure with UCM, which was inherited from the previous owner of Rosemont. This allows Hudbay to have greater strategic flexibility with respect to capital structure and project financing options.

Hudbay intends to evaluate a variety of options, including the addition of a new, committed joint venture partner for the development of Rosemont. The company will to carry out this process in parallel with advancing the initial development of Rosemont. Hudbay said it wants to ultimately hold an approximate 70% interest in the project and maintain operatorship.

Hudbay received the final permit for Rosemont construction earlier this week.

This article first appeared in the Canadian Mining Journal.

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Hudbay moves one step closer to Rosemont construction with water permit

Hudbay Minerals has received the last key permit it needs to start building its Rosemont mine in Arizona.

The U.S. Army Corps of Engineers issued a Section 404 water permit for the project, which a feasibility study in 2017 forecast would have a mine life of 19 years and produce 112,000 tonnes of copper in concentrate a year at a life-of-mine cash cost of $1.29 per lb.

Now that the 404 Permit has been issued, Hudbay expects to receive Rosemont’s mine plan of operations from the U.S. Forest Service shortly and then move into development.

Rosemont has already received the Final Record of Decision from the USFS, a process that involved 17 co-operating agencies at various levels of government, 16 hearings, over 1,000 studies, and 245 days of public comment resulting in more than 43,000 comments.

“The Forest Service is expected to issue the MPO in approximately one month, which will authorize early works starting in the second half of 2019, leading up to the first full year of construction in 2020,” Pierre Vaillancourt, a mining analyst who covers the company for Haywood Securities, wrote in a research commentary, noting that construction is expected to take about 33 months.

The project comes with an initial capex of $1.92 billion and life-of-mine sustaining costs of $61 million.

“Based on the capex of $1.92 billion, $230 million in financing would come from a Silver Wheaton streaming deal for gold and silver production, and $200 million from equipment financing, leaving $1.1 billion to finance Hudbay’s 80% interest,” Vaillancourt writes. “Given that joint-venture partner KORES intends to sell its interest for up to 20%, a new joint-venture deal for a permitted project for up to 40% of Rosemont could further reduce the financial burden for Hudbay.”

This article first appeared in The Northern Miner.

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