Exports from world’s second-largest copper to drop this year

Concentrate exports from Indonesia's Grasberg mine, the world's second-largest copper mine, will drop about 85% this year because of a lag in output while operations shift from open pit to underground mining, a government official said on Wednesday.

Shipments this year are expected to fall to 200,000 tonnes from an estimated 1.2 million tonnes last year, Yunus Saefulhak, director of minerals at Indonesia’s Energy and Mineral Resources Ministry said.

Copper concentrate exports from Grasberg are expected to drop to 200,000 tonnes this year from about 1.2 million tonnes in 2018

US copper producer Freeport McMoRan (NYSE:FCX), the operator of Grasberg, had warned the switch from the depleting open pit mine to an underground operation would hit output this year before ramping up production to normal levels — estimated in 160,000 tonnes per day of ore — by 2022.

Freeport yielded majority ownership of the Grasberg mine to state-owned PT Indonesia Asahan Aluminium (known as Inalum) last month in a $3.9 billion deal that also saw Rio Tinto leave the venture. Inalum now owns 51.2% of PT Freeport Indonesia, and Freeport holds the remaining stake.

Grasberg, which is also the world’s fourth largest gold operation, is expected to produce around 1.2 million tonnes of copper concentrate this year, compared to 2.1 million tonnes in 2018, while domestic consumption will grow to 1 million tonnes compared to 800,000 tonnes in 2018, the ministry said.

Grasberg’s Deep Mill Level Zone block cave mine, presently under construction, is projected to contribute an additional 80,000 tonnes per day of ore once at full capacity.

Currently, Grasberg’s reserves are estimated to be worth about $14 billion.

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Terramin Australia buys new gold project

ASX-listed junior Terramin Australia has struck a deal with Kitticooler Holdings to acquire the Kitticoola gold project, in South Australia. The copper/gold mine was operational between 1846 and 1869, producing some 7 000 t of ore at an estimated grade of 2.25% copper. The gold potential was realised in 1890, and the mine intermittently produced some 30 000 t of ore, at an average grade of 5.4 g/t gold at that time.

Beadell misses the mark

Embattled gold miner Beadell Resources missed its amended production target during 2018, from its Tucano gold operation, in Brazil. The company in August last year amended the full year production guidance from the original target of 145 000 oz to 155 000 oz, to between 125 000 oz and 135 000 oz, following a delay in the upgrade to the Tucano plant.

Vista granted enviro permitting

ASX-listed Titan Minerals has received environmental permitting for its Vista gold plant and mill, in Peru. The company told shareholders on Wednesday that with the environmental approval now in place, the plant was ready for physical inspection by the Direccion Regional De Energia Y Minas for an operator’s permit.

Dacian declares commercial production at Mt Morgans

Gold miner Dacian Gold has declared commercial production at its Mt Morgans gold project, in Western Australia, during the month of December. The company on Wednesday reported that the declaration was made at the start of January after mining rates across the operation achieved feasibility study design levels during the December quarter.

New Gold produces solid gold, copper output for 2018

TSX- and NYSE-listed New Gold produced 110 559 oz of gold in the fourth quarter of 2018, taking full-year production to 455 448 oz. Production was supported by the Rainy River and New Afton mines, in Canada. The Rainy River mine reported its best-ever quarterly gold production of 77 202 oz in the fourth quarter – a 39% increase compared with the prior quarter.

Kirkland Lake produces record gold

ASX-, TSX- and NYSE-listed Kirkland Lake Gold has reported record quarter and annual gold productions for the quarter and full-year ended December. The miner reported fourth quarter production of 230 993 oz, up 28% on its previous record of 180 155 oz, while full year production reached 723 477 oz, up 21% on the 596 495 oz produced in 2017.

Pan American Silver shareholders approve Tahoe Resources acquisition

Pan American Silver (TSX: PAAS) announced Tuesday that shareholders overwhelmingly (98%) approved the resolution to increase the maximum number of authorized shares of Pan American and the resolution to issue up to 72,533,152 Pan American shares in connection with the proposed plan of arrangement that Pan American will acquire all of the issued and outstanding shares of Tahoe Resources.

Tahoe shareholders also approved the arrangement, which is subject to approval by the Supreme Court of British Columbia and is expected to be completed on or about February 26, 2019, following authorization from the Mexican Federal Economic Competition Commission.

"We are very pleased to see strong shareholder support for our acquisition of Tahoe," said Michael Steinmann, president and CEO of Pan American in a media statement. "This is a logical combination that provides investors with exposure to a geographically diversified portfolio of some of the world's best silver mining assets."

The post Pan American Silver shareholders approve Tahoe Resources acquisition appeared first on MINING.com.

Equinox Gold Reports 2018 Highlights and 2019 Guidance

Note from Dudley Pierce Baker:
We are pleased to share this news release as Equinox Gold shares and warrants
are one of my top personal positions. Things are looking good……

Equinox Gold Reports 2018 Highlights and 2019 Guidance

JANUARY 8, 2019

All dollar amounts are expressed in US$

Equinox Gold Corp. (TSX-V: EQX, OTC: EQXFF) (“Equinox Gold” or the “Company”) today announced its 2018 highlights and 2019 guidance. Equinox Gold produced approximately 26,000 ounces (“oz”) of gold in 2018 from its recently acquired Mesquite Mine in California, and expects to produce 230,000 to 265,000 oz of gold in 2019 from Mesquite and its Aurizona Mine in Brazil at all-in-sustaining costs1 (“AISC”) of $900/oz to $950/oz.

“Equinox Gold has achieved tremendous growth over the last year and will soon become a multi-mine gold producer,” said Christian Milau, CEO of Equinox Gold. “This momentum will continue in 2019 as we plan for construction at our Castle Mountain Mine, capitalize on growth opportunities at our existing assets and continue to assess accretive acquisition opportunities.”

2018 Highlights

  • Acquired Mesquite Gold Mine and produced approximately 26,000 oz of gold from October 30 to December 31, 2018 (full-year 2018 production of approximately 140,000 oz)
  • Advanced Aurizona construction for commercial production around the end of Q1-2019
  • Completed Castle Mountain prefeasibility study outlining a long-life, low-cost gold mine producing 200,000 oz/year
  • 480% increase in proven and probable reserves to 5.7 million oz of gold
  • 350% increase in measured and indicated resources to 8.3 million oz of gold (inclusive of reserves)
  • New gold discoveries at Aurizona and Castle Mountain
  • Completed spin-out of Solaris Copper to Equinox Gold shareholders and sale of the Koricancha Mill
  • Cash balance (unrestricted) at December 31, 2018 of approximately $60 million (unaudited) with an additional $10 million available to draw under the Aurizona construction facility

The 2018 production and cash figures are preliminary and are subject to change when the Company releases its Q4 and annual audited 2018 financial results in March.

2019 Guidance

Equinox Gold’s 2019 production and cost guidance provided below is based on information available at January 8, 2019. The Company may revise guidance during the year to reflect actual and anticipated results. Key assumptions used to forecast 2019 total AISC include a gold price of $1,250/oz and an exchange rate of BRL3.6 to USD1.

Mesquite 145,000 – 160,000 $950 – $1,000 $11 M $4 M
Aurizona 85,000 – 105,000 $800 – $875 $16 M $31 M
Total 230,000 – 265,000 $900 – $950 $27 M $35 M

1 AISC is a non-GAAP measure. See All-in Sustaining Costs in Cautionary Notes.

The 2019 production guidance includes gold ounces produced at the Aurizona Mine prior to the commencement of commercial production, which is expected around the end of Q1-2019. Combined gold production is expected to increase substantially in Q2-2019 with Aurizona in commercial production.

Equinox Gold has budgeted a total capital spend of $62 million at the Mesquite and Aurizona mines during 2019. At Aurizona, the Company expects to spend $31 million to complete construction and commissioning during Q1-2019 and an additional $16 million of sustaining capex over the year that includes completion of the second tailings storage facility lift. At Mesquite, the Company expects to spend $11 million in sustaining capital primarily related to capitalized waste stripping within the open pit as well as $4 million in non-sustaining costs primarily related to drilling mineralized waste dumps and leach pads that are expected to be classified as ore.

Mesquite Gold Mine

Mesquite is an operating open-pit heap leach gold mine in southern California that Equinox Gold acquired during Q4-2018. Activities at Mesquite during 2019 will focus on:

  • Executing on opportunities to increase production and reduce costs
  • Completing a $4 million drill program focused on mine life extension, including targets in and peripheral to the existing open pit as well as mineralized waste dumps and leach pads on site
  • Applying for permits to explore and drill new concessions

Aurizona Gold Mine

Aurizona is an open-pit gold mine in northeastern Brazil where the Company commenced full-scale construction in January 2018. Activities at Aurizona during 2019 will focus on:

  • Completing construction and commissioning the plant during Q1-2019 to achieve commercial production around the end of Q1-2019
  • Completing construction of the next tailings storage facility lift
  • Completing preliminary assessment of the potential for an underground mine at Aurizona
  • Updating the resource based on near-mine drilling completed during 2017 and 2018
  • Exploration at Tatajuba and other targets in the second half of 2019 to extend the open-pit mine life

Castle Mountain Mine

Castle Mountain is a past-producing open-pit heap leach gold mine located approximately 200 miles north of Mesquite in California. Based on the July 2018 prefeasibility study, Castle Mountain is expected to produce 45,000 oz of gold per year during Phase 1 (years 1-3) and more than 200,000 oz of gold per year during Phase 2 (years 4-16). Activities at Castle Mountain during 2019 will focus on:

  • Completing engineering and final permitting for Phase 1 and arranging financing in order to commence Phase 1 construction around mid-year at a capital cost of approximately $50 million, with the objective to achieve first gold production in the first half of 2020
  • Advancing permitting and development of water wells for the Phase 2 expansion, and completing the Phase 2 feasibility study by year-end 2019
  • Executing on infrastructure, equipment and administrative synergies between Mesquite and Castle Mountain

Qualified Persons

James (Jim) Currie, P.Eng., Equinox Gold’s Chief Operating Officer, and Scott Heffernan, MSc, P.Geo., Equinox Gold’s EVP Exploration, are the Qualified Persons under National Instrument 43-101 for Equinox Gold and have reviewed, approved and verified the technical content of this news release.


About Equinox Gold

Equinox Gold is a Canadian mining company with a multi-million-ounce gold reserve base, gold production from its Mesquite Gold Mine in California, and near-term production growth from two past-producing mines in Brazil and California. Construction is well advanced at the Company’s Aurizona Gold Mine in Brazil and on schedule to achieve commercial production around the end of Q1-2019, and the Company is advancing its Castle Mountain Gold Mine in California with the objective of achieving Phase 1 production in the first half of 2020. Further information about Equinox Gold’s portfolio of assets and long-term growth strategy is available at www.equinoxgold.com or by email at ir@equinoxgold.com.

Equinox Gold Contacts

Christian Milau, CEO
Rhylin Bailie, Vice President Investor Relations
Tel: +1 604-558-0560
Email: ir@equinoxgold.com

Cautionary Notes and Forward-Looking Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation and may include future-oriented financial information. All statements, other than statements of historical factare forward-looking statements. Forward-looking statements or information in this news release relate to, among other things: future financial or operational performance, including estimated production of gold and estimated mine site AISC in 2019; the ability of the Company to successfully complete construction activities and the planned restart of production at Aurizona; to operate Mesquite, including with respect to production; development and timing of anticipated production at Castle Mountain; and the growth potential of the Company. Forward-looking statements or information generally identified by the use of the words “will”, “advancing”, “strategy”, “plans”, “budget”, “anticipated”, “expected”, “estimated” and similar expressions and phrases or statements that certain actions, events or results “may”, “could”, “should”, “will be taken” or “be achieved”, or the negative connotation of such terms, are intended to identify forward-looking statements and information. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. The Company has based these forward-looking statements and information on the Company’s current expectations and projections about future events and these assumptions include: tonnage of ore to be mined and processed; ore grades and recoveries; prices for gold remaining as estimated; the construction and planned production at Aurizona and Castle Mountain being completed and performed in accordance with current expectations; currency exchange rates remaining as estimated; availability of funds for the Company’s projects and future cash requirements; capital, decommissioning and reclamation estimates; the Company’s mineral reserve and resource estimates and the assumptions on which they are based; prices for energy inputs, labour, materials, supplies and services; no labour-related disruptions and no unplanned delays or interruptions in scheduled development and production; all necessary permits, licenses and regulatory approvals are received in a timely manner; and the Company’s ability to comply with environmental, health and safety laws. While the Company considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect. Accordingly, readers are cautioned not to put undue reliance on the forward-looking statements or information contained in this news release.

The Company cautions that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors.  Such factors include, without limitation: fluctuations in gold prices; fluctuations in prices for energy inputs, labour, materials, supplies and services; fluctuations in currency markets; operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, usual or unexpected geological or structural formations, cave-ins, flooding and severe weather); inadequate insurance, or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; the Company’s ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices, including environmental, export and import laws and regulations; legal restrictions relating to mining; risks relating to expropriation; increased competition in the mining industry; and those factors identified in the Company’s management information circular dated June 20, 2018 and in its MD&A dated October 30, 2018, which are available on SEDAR at www.sedar.com. Forward-looking statements and information are designed to help readers understand management’s views as of that time with respect to future events and speak only as of the date they are made. Except as required by applicable law, the Company assumes no obligation and does not intend to update or to publicly announce the results of any change to any forward-looking statement or information contained or incorporated by reference to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements and information. If the Company updates any one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements. All forward-looking statements and information contained in this news release are expressly qualified in their entirety by this cautionary statement.

All-in-Sustaining Costs

This news release refers to expected AISC per ounce which is a non-GAAP (generally accepted accounting principles) measure. This measurement has no standardized meaning under International Financial Reporting Standards (“IFRS”) and may not be comparable to similar measures presented by other companies. This measurement is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Cash costs include mine site operating costs, but are exclusive of amortization, reclamation, capital and exploration costs and net of by-product sales and then divided by ounces sold to arrive at cash costs per ounce. AISC per ounce starts with total cash costs and adds net capital expenditures that are sustaining in nature, mine site general and administrative costs, capitalized and expensed exploration that is sustaining in nature and environmental reclamation costs, all divided by ounces sold to arrive at AISC per ounce. Management believes AISC is a measure commonly used in the gold mining industry and is useful for monitoring the performance of operations and the ability of mines to generate positive cashflow.

Reserve and Resource Estimates

Equinox Gold’s proven and probable reserves total 5.7 million ounces of gold at 0.62 g/t gold, with 150.7 million tonnes of proven reserves at 0.63 g/t gold for 3.0 million ounces, and 131.9 million tonnes of probable reserves at 0.62 g/t gold for 2.6 million ounces. The Company’s measured and indicated resources, inclusive of reserves, total 8.3 million ounces of gold at 0.62 g/t gold, with 174.1 million tonnes of measured resources at 0.63 g/t gold for 3.5 million ounces, and 177.3 million tonnes of indicated resources at 0.63 g/t gold for 3.6 million ounces. Mesquite resources and reserves have been summed for the purposes of this news release as they are typically reported exclusive of each other. Reserves and resources for Aurizona were disclosed in the “Feasibility Study on the Aurizona Gold Mine Project” prepared by Lycopodium Minerals Canada Ltd. with an effective date of July 10, 2017. Reserves and resources for Castle Mountain were disclosed in the “NI 43-101 Technical Report on the Preliminary Feasibility Study for the Castle Mountain Project” prepared by Kappes, Cassiday and Associates with an effective date of July 16, 2018. All technical information related to Mesquite is based on the “Technical Report on the Mesquite Mine, Imperial County, California, U.S.A.” prepared by Rosco Postle Associates Inc. for New Gold Inc. dated February 28, 2014. To the best of the Company’s knowledge, information and belief, there is no new material scientific or technical information that would make the disclosure of Mesquite mineral reserves misleading. The Company will release a new technical report for the Mesquite Mine in March 2019. All of the technical reports are available for download on the Company’s website at www.equinoxgold.com and on SEDAR at www.sedar.com.

Information regarding reserve and resource estimates has been prepared in accordance with Canadian standards under applicable Canadian securities laws and may not be comparable to similar information for United States companies. The terms “Mineral Resource”, “Measured Mineral Resource” and “Indicated Mineral Resource” used in this news release are Canadian mining terms as defined in accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on May 10, 2014. While the terms “Mineral Resource”, “Measured Mineral Resource” and “Indicated Mineral Resource” are recognized and required by Canadian regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this news release concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission. Readers are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into Mineral Reserves. In addition, the definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” under CIM standards differ in certain respects from the standards of the United States Securities and Exchange Commission.


Suite 730, 800 West Pender St.
Vancouver, BC
V6C 2V6

Office: +1 604-558-0560



Ms. Rhylin Bailie
Direct: +1 604-260-0516

Richard Postma – The Doctor Is In – Tue 8 Jan, 2019

Projections For Gold, GDX, HUI, and Platinum

To follow up on a couple of Doc’s calls and some questions that came in yesterday Doc and I focus mostly on the gold and gold stocks. He shares some of the targets and ranges he is expecting. It is important to understand that a bullish breakout for the PMs might take some time.