Download - Society of Economic Geologists
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APRIL 2006 • No 65 SEG NEWSLETTER 23Outukumpo <strong>of</strong> Finland has beenawarded a contract to design anddeliver a new copper flash smelter forKonkola Copper Mines. This followsthe decision by Vedanta Resources,which has a controlling stake in KCM,to invest US$ 125 M in expanding theNkana smelter. It is anticipated that itwill be commissioned in 2007. Copperconcentrate will be sourced largely fromKCM’s mines to produce 300,000 tpacopper.Gemfields Resources, the newlyAIM-listed company is reevaluating theemerald production. Zambia alreadyproduces up to US$100 M worth <strong>of</strong> goodquality rough emeralds annually, but itis a highly fragmented industry.Gemfields assets include 50% <strong>of</strong> theLivingstone amethyst mine KaribaMinerals—the largest in Africa, and theMbuva-Chibolele emerald projectsouth <strong>of</strong> Kitwe, which covers a kilometeralong the strike <strong>of</strong> the Purala belt in theNdola Rural Emerald restricted area. Amineral resource <strong>of</strong> 18 Mt has beenidentified to a depth <strong>of</strong> 150 m, giving a10-year life <strong>of</strong> project. Working costs <strong>of</strong>$15–17/t compare with an expected revenueaveraging $42/t.ZIMBABWEZimbabwe Platinum Mines Limited(Zimplats) is not closing despite anongoing problem sparked by governmentplans to amend the Mines andMinerals Bill to enable a 51% statetakeover <strong>of</strong> foreign owned mines. ASouth African platinum mining giant,Implats has a controlling stake <strong>of</strong> 86%in Zimplats and has indicated its intentionto invest $US2 billion as part <strong>of</strong> anexpansion drive.ALASKARegional Correspondent:Curtis J. Freeman (SEG 1996)Avalon Development Corp.P.O. Box 80268Fairbanks, AK 99708Tel. 1.907.457.5159, Fax 1.907.455.8069E-mail: avalon@alaska.netWebsite: www.avalonalaska.comAlaska is <strong>of</strong>f to a fast start in 2006: ithas already seen start-up <strong>of</strong> its firstmajor gold mine in 5 years (Pogo) andapproval <strong>of</strong> permits for the Nixon Forkcopper–gold mine. We also sawannouncement <strong>of</strong> substantial increasesin copper, gold, and molybdenumresources at two advanced exploration/development projects (Donlin Creekand Pebble). New development planswere <strong>of</strong>fered for heap leaching at theFort Knox gold mine and initial fundingwas approved for evaluation <strong>of</strong> a coalto-liquidsfacility at the Beluga coaldeposits. Red Dog and Greens Creekreported stellar operating results, inpart due to robust metals prices. As forexploration plans, there are dozens <strong>of</strong>programs in the <strong>of</strong>fing. All in all, not abad way to start <strong>of</strong>f a year that promisesto be very busy. So, as the old cowboysaid, “When the pony runs, you ride.”WESTERN ALASKATeck Cominco American announced a$325 M operating pr<strong>of</strong>it for the year atits Red Dog mine. The mine produced568,000 tonnes (t) <strong>of</strong> zinc in concentratefrom ore averaging 22.3%. The minealso produced 102,000 t lead in concentratefrom ore averaging 6.6% whilemill recoveries decreased to 55.7%.NovaGold Resources and new partnerBarrick Gold (which took overPlacer Dome in late January)announced increased resources at theDonlin Creek deposit in southwesternAlaska. Measured and indicatedresource categories increased by 3.7Moz or 33% to 14.8 Moz <strong>of</strong> gold grading2.76 gpt gold using a 1.2 gpt cut<strong>of</strong>fgrade. Inferred resources decreased by0.7 Moz to 13.6 Moz grading 2.72 gptgold through conversion <strong>of</strong> thoseounces to the measured and indicatedcategory. Total gold resource is now28.4 Moz in all categories.Northern Dynasty Minerals Ltdannounced new resource estimates at itsEast zone at the Pebble deposit nearIliamna. At a 1.00% Cu equiv cut<strong>of</strong>f,the inferred mineral resources are estimatedat 947 Mt grading 0.77% copper,0.48 gpt gold and 0.040% molybdenum(1.28% Cu equiv), containing 16.0 billionlb <strong>of</strong> copper, 14.5 Moz <strong>of</strong> gold, and830 Mlb <strong>of</strong> molybdenum. The PebbleEast deposit is open to expansion in alldirections. Plans for 2006 include30,500 m <strong>of</strong> drilling at a budgeted cost<strong>of</strong> US$20 M.St. Andrew Goldfields announcedthat all permits have been approved forthe operation <strong>of</strong> the Nixon Fork goldcoppermine near McGrath. Plansinclude upgrading and refurbishing theexisting gold mill, including the installation<strong>of</strong> a cyanide leach circuit. Inaddition, facilities will be installed toextract and retreat the existing tailingsfrom the previous operation whichcontain an estimated 30,000-oz goldresource. Retreatment <strong>of</strong> the existingtailings is expected to begin in July withprocessing <strong>of</strong> underground ore expectedin the early fall.Full Metal Minerals Ltd. and TriexMinerals Corporation announced thatseveral new geochemical anomalieshave been identified at their BoulderCreek uranium prospect on the SewardPeninsula. These results suggest potentialextensions along strike to the existingdeposit, as well as potential newdeposits along the same granite-sandstonecontact. Additionally, four newareas with multi-element geochemicalanomalies covering a strike length <strong>of</strong>approximately 9 km were identified.Several <strong>of</strong> the anomalies are larger inarea and stronger in terms <strong>of</strong> elementabundances than the baseline data collectedover the known extent <strong>of</strong> the currentresources at Boulder Creek.Planning is currently underway for a3,000-m drill program including downholegeophysical surveys.Liberty Star Gold Corp. announcedpreliminary results from its Big Chunkcopper-gold project near Iliamna. TheBaltusrol project is hosted by felsic porphyryintrusives, intrusive breccias, andporphyry-style alteration and mineralizationand returned 50 ft grading 1033ppm copper and 0.0018 gpt gold. A singledrill hole at the Point Grey prospectintercepted 0.0078 gpt gold over 177 ftincluding 10 ft <strong>of</strong> 0.059 gpt gold. At theAugusta prospect on the western side <strong>of</strong>the claim block the company has outlineda 5.7 × 2 mile area <strong>of</strong> anomalousgold and molybdenum in vegetationsamples.INTERIOR ALASKAKinross Gold is currently conductingpreliminary feasibility-level work on thepossibility <strong>of</strong> adding a heap leachingcircuit to its Fort Knox mine operationsnear Fairbanks. The company indicatedthat evaluations are on-going ona possible 160-million-ton valley-leachoperation in the Walter Creek drainageabove the current tailings impoundment.Geotechnical studies identifiedWalter Creek as a suitable site for thevalley leach, which the company hopeswill operate at approximately one-thirdthe cost <strong>of</strong> it current 40,000-tpd millingoperation. If economic evaluations arepositive, initial ground work for the projectcould occur asto pagesoon as late 2006.24 ...EXPLORATION REVIEWS