Los Andes improves Vizcachitas flotation recoveries
As a part of the continuing prefeasibility study (PFS) at the Vizcachitas project in Chile, Los Andes Copper Ltd. has received improved flotation rougher recoveries resulting from further metallurgical testwork. Through optimizing the rougher flotation conditions, the company will be able to increase copper and molybdenum recoveries.
Read MoreDuring 2019, as part of initial testwork for the PFS, a sample from previous testwork that represents the upper zone of the orebody was sent to SGS Minerals facilities for a rougher flotation assessment. The results of this assessment show that copper and molybdenum rougher recoveries, as compared with the 2019 preliminary economic assessment (PEA) formula, were improved by 3 per cent and 6 per cent, respectively. This improvement was achieved by refining the flotation formula: decreasing pH, lowering the solids percentage of the slurry and adding a stronger frother.
The continuing PFS metallurgical testwork in 2020 has confirmed these improvements. A new composite sample from the first 12 years of the mine plan was tested using both the PEA and PFS flotation formulas. The PFS formula shows an improved rougher recovery of 2.8 per cent for copper and 7.8 per cent for molybdenum over the PEA formulas.
Fernando Porcile, executive chairman of Los Andes, commented: “I am pleased that the improved formula results from the current PFS testwork further enhance the project economics of an already robust project.
“The ongoing prefeasibility study for the Vizcachitas project has confirmed the use of HPGR technology and validated the use of dry-stacked tailings. These technologies put the Vizcachitas project at the forefront of the environmentally responsible practices being adopted for the future of sustainable mining globally.”
Golden Minerals starts gold production at Rodeo
Golden Minerals Company has begun gold production at its Rodeo gold project located in Durango state, Mexico, roughly two weeks ahead of schedule and on budget.
Read MoreThe company transported the first loads of Rodeo’s gold-containing material by road to its nearby Velardena oxide mill for processing last week. The mill has begun processing the material and anticipates a first pour of gold-silver dore bars within two weeks.
Initially, Rodeo material will be processed at a rate of about 200 tonnes per day, running through the currently operational 10.5-foot-by-13-foot ball mill. Golden is in the process of installing an additional eight-foot-by-22-foot ball mill at Velardena, as previously communicated, which is designed to increase processing throughput by increasing grinding capacity for the silicified material from Rodeo. This second ball mill will operate in series after the primary ball mill. The company estimates the regrind mill will be complete and ready to run near the end of the first quarter 2021, at which point daily mill throughput is expected to increase to about 450 tpd.
Golden Minerals president and chief executive officer Warren Rehn commented: “I’m very pleased to announce that Golden Minerals has officially transitioned to gold-silver producer from exploration company. Despite the COVID-19-related uncertainties of the past year, we’ve been able to develop this project and put it into production ahead of schedule and on budget. Rodeo is expected to generate significant free cash flow for us that will be used, in part, to further work at our larger, silver-gold Velardena properties. Rodeo’s production is the first step toward the company achieving sustainable, long-term profitability.”
Copper Fox’s Van Dyke PEA pegs NPV at $789.6M (U.S.)
Copper Fox Metals Inc., through its wholly owned subsidiary, Desert Fox Copper Inc., has released robust results from an external, independent preliminary economic assessment (PEA) prepared in accordance with National Instrument 43-101 for its 100-per-cent-owned Van Dyke in situ copper recovery (ISCR) project located in Miami, Ariz. The PEA was prepared under the direction of Moose Mountain Technical Services with an effective date of December 30, 2020. All dollar amounts are expressed in US dollars, unless otherwise noted.
Read MorePEA Highlights: (Based on $US3.15/lb copper)Base case pre-tax Net Present Value7.5% (“NPV”) of $US798.6 million (“M”), Internal Rate of Return (“IRR”) of 48.4%, and payback period of 2.0 years.Base case post-tax NPV7.5% of $US644.7M, an IRR of 43.4%, and payback period of 2.1 years.Life of mine (“LOM”) copper production of 1.1 billion pounds (“lbs”) with peak production of 85Mlbs annually in years 2-12 inclusive, declining thereafter.Initial capital expenditure of $US290.5M, including a 30% contingency.LOM direct operating cost of $US0.71/lb and sustaining costs of $US0.07/lb.Cumulative net free cash flow of $US1.757 billion pre-tax and $US1.436 billion post-tax.Mine life 17 years.C1 cost per pound copper is $US0.98, AISC per pound copper is $US1.14.
* C1 and AISC are Non-GAAP and IFRS measures, see Note 1 in Life of Mine Comparison table
The results of the PEA are preliminary in nature. The PEA includes a combination of indicated and inferred mineral resources which are considered too speculative geologically to have the economic considerations applied that would enable them to be categorized as mineral reserves. There is no certainty that the PEA forecasts will be realized or that any of the resources will ever be upgraded to reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Mr. Elmer Stewart, President and CEO, said, “The significant increase in valuation over that obtained in the 2015 PEA is a function of the 2020 resource estimate, a better understanding of metallurgical and geological characteristics of the deposit and adopting a phased approach to project development. These results combined with the exploration potential suggests that, with positive results from additional drilling and engineering studies, Van Dyke has the potential to become a significant project in the mid-size copper development space. Achieving this milestone is a significant value add to Copper Fox, and is expected to complement the results of the PEA which is currently in progress at Schaft Creek, in determining the strategy to maximize shareholder value.”
Summary of Base Case Economic Results:
Results of the 2020 PEA are summarized below, along with a comparison to the Company’s PEA conducted with respect to the Van Dyke project in 2015 (see News Releases dated November 25, 2015 and December 24, 2015) (the “2015 PEA”):
Life of Mine Comparison between 2015 and 2020 PEAsBase Case Production and Cost Summary Units 2015 PEA2020 PEA Life of Mine (LOM) years 11 17 Copper Cathode Sold Million lbs. 456.9 1,101.0 Copper Price $US/lb 3.00 3.15 Gross Revenue M$US 1,370.0 3,468.3 Royalties M$US 31.5 82.5 Total Cash Costs M$US 550.2 1,075.8 Total Cash Costs ($/lb recovered copper) $US/lb copper 1.20 0.98 C1 Cash Costs ($/lb recovered copper)* $US/lb copper 1.08 0.86 Sustaining Costs ($/lb recovered copper) $US/lb copper 0.15 0.07 All In Sustaining Cost (AISC)** $US/lb copper 1.36 1.14 Initial Capital Costs (includes contingency) M$US 204.4 290.5 Taxes M$US 110.9 321.0 Cashflow Parameters and Outputs Discount Rate % 8.0% 7.5% Pre-tax Net Free Cash Flow M$US 453.1 1,757.3 Pre-tax NPV M$US 213.1 798.6 Pre-tax IRR % 35.5% 48.4% Pre-tax Payback years 2.3 2.0 Post-tax Net Free Cash Flow M$US 342.2 1,436.3 Post-tax NPV M$US 149.5 644.7 Post-tax IRR % 27.9% 43.4% Post-tax Payback years 2.9 2.1
* includes Mining, Processing, Site Services, G&A, Transportation, and Royalty Costs ** includes Total Cash Cost, Sustaining Capital, Royalty Costs, Severance Taxes
lbs=pounds, M$US=million United States dollars, numbers are roundedC1 and AISC costs are non-GAAP financial measures which do not have standardized meanings prescribed by International Financial Reporting Standards (IFRS). These measures are meant to provide further information to investors and should not be considered in isolation or used as a substitute for other measures of performance prepared in accordance with IFRS.
Mineral Resources:
The effective date of the mineral resource used in the PEA is January 9, 2020 (see News Release dated May 5, 2020). The Base Case indicated and inferred mineral resources at a 0.025% recoverable copper (“RecCu”) cut-off are reported within both a 0.025% RecCu grade shell and a “reasonable prospects for eventual economic extraction” shape which includes internal dilution or all “must take” material within the confining shape (see News Release dated March 25, 2020). Because ISCR is a non-selective mining method, grade bins (different cut-off grades) are not considered applicable for the Van Dyke deposit and have not been applied. The Base Case used cut-off is considered appropriate for the extraction of copper by in-situ leaching. There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other factors that could materially affect the resource estimate used in the cash flow analysis.
Mineral Resource Estimate within Potentially Economic Confining Shape (Sue Bird, P.Eng.) Category Tonnes (000)TCu(%)ASCu(%)CNCu(%)Rec(%)Rec.Cu(%)TCu(Mlbs)Rec.Cu(Mlbs) Indicated 97,600 0.33 0.23 0.04 90 0.24 717 517 Inferred 168,026 0.27 0.17 0.04 90 0.17 1,007 699
TCu=total copper, ASCu=acid soluble copper, CNCu=cyanide soluble copper, Rec.Cu=recoverable copper, (%)=percentage, Mlbs=Million poundsThe reasonable prospects for eventual “economic extraction” shape has been created based on a copper price of $US2.80/lb, employment of in-situ leaching extraction methods, processing costs of $US0.60/lb copper, all in operating and sustaining costs of $US1.25/tonne, a recovery of 90% for total soluble copper and average specific gravity of 2.6t/m3.Approximate drill hole spacing is 80m for indicated resources.The average dip of the deposit within the Indicated and Inferred mineral resource outlines is 20 degrees. Vertical thickness of the mineralized envelope ranges from 40m to over 200m.Numbers may not add due to rounding.
Mineral Resources that are not mineral reserves do not have demonstrated economic viability.
Project Description:
The project consists of 531.5 hectares (1,312.8 acres) of mineral rights and 5.75 hectares (14.02 acres) of surface rights and is subject to a 2.5% gross royalty on revenue. The Miami, Arizona area hosts several heap leach copper mines with road access, electrical power, experienced labour, supply centers and industrial service providers.
Underground Development:
The 2020 PEA confirmed that the most cost-effective method to develop the wellfield is by way of a ramp from surface to the mineralized zone. Stage 1 includes an access ramp to the top of the deposit and a decline following the Gila/Pinal Schist contact to access the higher-grade portions of the deposit. Stage 2 is expected to commence toward the end of Stage 1 to access the lower grade portion of the deposit. The main components of the underground development are shown below.
Excavation Type QtyLength (m) Dimensions Shape Total Length (m) Main Access Ramp to Portal 1 1,4564.6m W x 4.6m H Arch (wall 3.1m) 1,456 Vents/ Access from Ramp to Van Dyke shaft 2 153.6m W x 3.6 m H Flat 30 Phase 1 Decline 1 1,1414.6m W x 4.6m H Arch (wall 3.1m) 1,141 Phase 1 Vent/Egress Decline 1 2163.6m W x 3.6 m H Flat 216 Vent/Egress Raise 1 401 3.0m dia Bore 401 Galleries 10 746.1m W x 6.1m H Arch (wall 4.6m) 740 Phase 1 Total Excavation 3,984 Phase 2 Decline 1 1,1734.6m W x 4.6m H Arch (wall 3.1m) 1,173 Phase 2 Vent/Egress way 1 23 2.0 m x 2.0 m Flat 23 Galleries 14 546.1m W x 6.1m H Arch (wall 4.6m) 756 Phase 2 Total Excavation 1,952 Combined Total Excavation 5,936
Underground development will be completed using conventional drill and blast tunneling techniques by mining contractors with appropriate ground support as required. Phase 1 of the underground development is contemplated to be completed during the pre-production phase. The mine plan is estimated to produce roughly 190,000 cubic meters of waste rock from the underground development that will be stored in a valley directly adjacent to the portal on land owned by Desert Fox.
Well Field Design/Copper Recovery Plan:
The copper recovery circuit has been designed to establish a closed system for fluid injection and recovery using a fan pattern wellfield array to recover soluble copper. In this configuration, angled wells are advanced from underground galleries with an average well spacing of 21 meters (“m”) between recovery holes within the deposit. The ratio of recovery wells to injection wells is 4:1 per array with an overall ratio of 1:1 with an estimated 1,925 injection and recovery wells required LOM.
Copper Extraction and Acid Consumption:
Chrysocolla, malachite, and azurite (all 100% soluble) are the most abundant copper minerals in the Van Dyke deposit, with secondary copper minerals being chalcocite and native copper. An overall 76% Cu recovery (including Plant Efficiency of 95% and Pre-conditioning of the mineralized zone to ensure a high sweep efficiency) was used in the PEA. Leaching is carried out using a weak (5gram/liter) solution of sulphuric acid over a 5-year period. Acid consumption is estimated to be approximately 1.5lb acid/lb copper produced based on the current testing and historical leach test results.
Forecasted Copper Production:
The Base Case contemplates 85Mlbs/year (similar in scale to Taseko’s Florence ISCR project) of Grade “A” copper cathode production that includes an initial ramp up year (yr. 1) at 60% of production capacity and a three-year (yrs. 14-17) ramp down period with reduced annual production at the end of mine life. Mine life is estimated to be 17 years.
The Pregnant Leach Solution (“PLS”) recovered from the wellfield is pumped to the PLS retention pond on surface and then to the Solvent Extraction Electrowinning (“SX-EW”) facilities for copper recovery. Reagents are added to the solution from the SX-EW plant to bring the solution to required operating concentrations and is then recycled back to the wellfield. No deleterious elements in the PLS were identified during the pressure leach tests conducted by Copper Fox.
Infrastructure:
The project is located within the town limits of Miami, Arizona with sewer, water, communications, and powerlines available. The administration, maintenance, warehouse facilities, the SX-EW facilities and truck scale are sited to take advantage of local topography, accommodate environmental considerations, and ensure efficient operations. The processing facilities include:Solvent extraction plantElectrowinning tank house and tank farm for auxiliary vesselsSolution ponds to handle: PLS, raffinate, process water, emergency pondWater treatment plantAncillary facilities including warehouse and maintenance shopAdministration offices
The ISCR operation is expected to operate with a net water surplus, however, if water is needed to support operations, it will be sourced from groundwater in the alluvium unit which supplied water to historic leach operations.
Cost Estimates:
Initial Capital, Operating and Sustaining Costs are based on comparable projects in Arizona and quotes from suppliers where available. When information from comparable projects or from suppliers was not available; industry standard inflation factors were applied where necessary.
Initial Capital Costs (presented below) are defined as all costs incurred until commencement of copper production, including pre-production operating costs. The Initial Capital Cost estimates are based on new construction costs and consists of direct and indirect cost factors. Factored estimates are used for Codes A, D, E, and all indirect costs. For Codes B and C, detailed estimates are used.
Capital Estimate Summary WBS Code Description Cost ($US 000s) A General Site 11,440 B ISL Well Field 6,035 C Underground Mining 49,676 D Processing 62,225 E Buildings and Facilities 9,750 PP Pre-Production Operating Costs* 22,287 Total Direct Costs 161,413 X Indirect Costs 48,827 Y Owner's Costs 23,913 Total Indirect Costs 72,740 Z Contingency (30% of Direct and Indirect)) 56,386 Total Capital Cost 290,539
*Indirects, Owner’s Costs, or Contingency is not applied to Pre-Production Operating costs.
Contingency is included to cover undefined items of work within the scope of the project and is set at 30% of direct and indirect costs.
Indirect Costs:
Indirect Costs are calculated as a percentage of Initial Capital Costs and captures charges that construction contractors might apply or include in their rates. The factors and estimated Indirect Costs are shown below
Indirect Categories and Factors Construction Indirects - % of Direct Costs 15% Spares - % of Processing Costs 5% Initial Fills - % of Processing Costs 0% Freight and Logistic - % of Direct Costs 5% Commissioning and Pre-operational Start-upAllowance EPCM - % of Direct Costs 10% Vendors Allowance Taxes and Duties 3%
Sustaining Capital Costs:
Sustaining Capital Costs are all capital expenditures incurred after commencement of copper production required to maintain annual copper production. Construction of a water treatment facility are included in the LOM Sustaining costs outlined below:
Sustaining Capital Estimate Summary
WBS Code Description COST ($US 000s)
A General Site 0
B ISL Well Field 46,147
C Underground Mining 23,903
D Processing 5,420
E Buildings and Facilities 0
Total Sustaining Capital 75,470
$US 0.07 /lb Cu
Operating Costs:
The LOM Operating Costs were developed using first principals and comparable estimates from similar scale project in Arizona. Estimated Total Operating Costs and LOM Unit Costs required to produce a pound of copper are summarized below:
Operating Costs LOM Cost (000's)LOM Unit Cost ($US/lb Cu) Drilling Cost 156,417 0.14 Frac Cost 88,009 0.08 Pump Costs 23,641 0.02 Drill Electricity 5,106 0.00 ISL Well Field Acid Costs 82,579 0.08 Wellfield Monitoring (KP) 7,540 0.01 Pumping Electricity Costs 122,466 0.11 Maintenance Costs 130,348 0.12 Processing Costs 220,210 0.20 G&A, Offsite Costs 187,179 0.17 Water Treatment 33,150 0.03 Reclamation and Closure Costs 19,184 0.02 TOTAL OPEX 1,075,830 0.98
* All numbers are rounded following Best Practice Principles.
All In Sustaining Costs:
All In Sustaining Costs include total operating costs, royalties, severance taxes, and sustaining capital costs as outlined below:
Cash Cost Category Unit Cost ($US/lb) Total Operating Costs 0.98 Royalties 0.07 Severance Tax 0.02 Sustaining Capital Costs 0.07 All in Sustaining Cost (AISC) 1.14
Closure and Reclamation:
Closure and reclamation would be in accordance with the requirements set out in the state and federal permits required to develop and operate the project includes the following major activities:Rinse the underground wellfield to restore groundwater quality within the mined area to levels specified in the project permits.Buildings and other infrastructure, including the SX-EW plant would be decommissioned, sold, and removed.Reshape the earth structures and disturbed areas to achieve long term stability and protection against erosion.Reshape the waste rock dump and construct vegetative cover.Excess water, including wellfield rinse water, would be treated, and released for two years following the cessation of commercial operations.Decommission the water management structure.Decommission the water treatment plant.
The estimated Reclamation and Closure Costs are summarized below:
Reclamation and Closure Cost ($US 000's) Well Field Decommissioning $4,434 Infrastructure Decommissioning $4,043 SX-EW Decommissioning $3,180 Water Treatment Plant Decommissioning $4,054 Total Reclamation and Closure Costs $15,711
Economic Analysis Summary:
The economic analysis of the Van Dyke project has been performed on a 100% basis and derived from input parameters set out below. The pre-tax and post-tax NPV and IRR for the Van Dyke ISCR project at various discount rates are shown below. The 7.5% discount rate has been chosen as the Base Case in line with other Arizona based ISCR projects. The economic analysis includes recovery of capital, operating and sustaining costs, county, state and federal taxes and royalties. Input parameters include 3-year pre-production period, long-term copper price of $US3.15/lb, 17-year mine life and 5 years for reclamation/closure and monitoring. Corporate income taxes are assumed to be 21.0% federal and 4.9% state.
The payback periods are 2.0 years pre-tax and 2.1 years post-tax. The sensitivity of the pre- and post-tax NPV to the discount rate is summarized below:
Rate Pre-Tax NPVPost-Tax NPVPre-Tax IRRPost-Tax IRR (%) $US000's $US000's (%) (%) 5.0%$1,030,565 $835,974 48.4% 43.4% 7.5% $798,963 $644,667 48.4% 43.4% 8.0% $759,934 $612,436 48.4% 43.4% 10.0% $623,480 $499,781 48.4% 43.4% 12.0% $513,253 $408,832 48.4% 43.4%
Net Cash Flow:
The Base Case, Net Free Cash Flow after recovery of all operating, capital and sustaining costs pre-tax is estimated to be $US1.757 billion and $US1.436 billion post-tax.
Project Sensitivities:
The NPV and IRR are most sensitive to copper prices and metallurgical recovery, as illustrated in the figures below:
Qualified Person:
Elmer B. Stewart, MSc., P.Geo., President, is the Company’s designated Qualified Person and has approved the scientific and technical disclosure in this news release.
The PEA has been prepared by Moose Mountain Technical Services. Each of the individuals listed below is an independent Qualified Person for the purposes of NI 43-101. All scientific and technical information in this press release is based upon information prepared by or under the supervision of those individuals, and each has approved the scientific and technical information in this release.Susan C. Bird, MSc., P.Eng., Moose Mountain Technical ServicesBob Lane, P. Geo., Moose Mountain Technical ServicesTracey Meintjes, P.Eng., Moose Mountain Technical ServicesJim Norine, P. E., Ausenco
The Technical Report on the Preliminary Economic Assessment of the Van Dyke project will be filed in accordance with NI 43-101 on SEDAR (www.sedar.com) within the required 45 day statutory period and will be made available on Copper Fox’s website at http://www.copperfoxmetals.com.
Avino Silver pegs Avino at 75.9M oz AgEq M+I
Avino Silver & Gold Mines Ltd. has provided an updated mineral resource estimate for the company’s Avino property located near Durango in west-central Mexico. The updated estimate includes the Property’s Avino Mine (Elena Tolosa {ಖ –} “ET”) vein systems, the San Gonzalo Mine, and the Property’s Oxide Tailings. The mineral resources estimate has been included in an updated technical report prepared by Tetra Tech Inc. under National Instrument 43-101 (“NI-43-101”), which will be available on SEDAR (www.sedar.com) under the Company’s profile and filed on Form 6-K with the SEC within 45 days.
Read MoreHighlights (compared to February 21, 2018)
Measured and Indicated Mineral Resources:
Increase of 60% in silver equivalent ounces, up to 75.9 million ounces
Increase in gold and copper grades by 6% and 11%, up to 0.67 g/t and 0.41%
Increase in silver grade at ET by 3%, up to 63 g/t
Decrease in consolidated silver grades by 10%, to 69 g/t, as a result of depletion at San Gonzalo
Increase in tonnage of 90% overall, totaling 20.3 million metric tonnes
Inferred Mineral Resources:
Decrease of 6% in silver equivalent ounces, down to 21.8 million ounces
Avino Mine Mineral Resources Summary as at October 31, 2020
Measured & Indicated Mineral Resources Grade
Cut-off
(AgEq Metric AgEq Ag Au Cu
Resource Category Deposit g/t) tonnes (g/t) (g/t) (g/t) (%)
Measured Avino - ET 60 4,760,000 120 74 0.63 0.55
Measured San Gonzalo System 130 267,000 356 263 1.36 0.00
Total Measured All Deposits 5,027,000 133 84 0.67 0.52
Indicated Avino - ET 60 13,890,000 107 59 0.68 0.41
Indicated San Gonzalo System 130 216,000 304 230 1.09 0.00
Indicated Oxide Tailings 50 1,120,000 124 89 0.42 0.00
Total Indicated All Deposits 15,226,000 111 64 0.67 0.37
Total measured
and indicated All Deposits 20,253,000 117 69 0.67 0.41
Measured & Indicated Mineral Resources Metal Contents
Cut-off AgEq Ag Au
(AgEq Metric (million (million (thousand Cu
Resource Category Deposit g/t) tonnes tr oz) tr oz) tr oz) tonnes
Measured Avino - ET 60 4,760,000 18.4 11.3 97 26,300
Measured San Gonzalo System 130 267,000 3.1 2.3 12 0
Total Measured All Deposits 5,027,000 21.5 13.6 109 26,300
Indicated Avino - ET 60 13,890,000 47.9 26.5 304 56,700
Indicated San Gonzalo System 130 216,000 2.1 1.6 8 0
Indicated Oxide Tailings 50 1,120,000 4.5 3.2 15 0
Total Indicated All Deposits 15,226,000 54.5 31.3 327 56,700
Total measured
and indicated All Deposits 20,253,000 75.9 44.9 436 83,000
Inferred Cut-off Grade
mineral resources (AgEq Metric AgEq Ag Au Cu
Resource Category Deposit g/t) tonnes (g/t) (g/t) (g/t) (%)
Inferred Avino - ET 60 5,230,000 95 51 0.64 0.34
Inferred San Gonzalo System 130 85,000 298 233 0.96 0.00
Inferred Oxide Tailings 50 1,230,000 125 85 0.47 0.00
Total Inferred All Deposits 6,545,000 103 59 0.61 0.27
Metal contents
Inferred Cut-off AgEq Ag Au
mineral resources (AgEq Metric (million (million (thousand Cu
Resource Category Deposit g/t) tonnes tr oz) tr oz) tr oz) tonnes
Inferred Avino - ET 60 5,230,000 16.0 8.5 108 17,700
Inferred San Gonzalo System 130 85,000 0.8 0.6 3 0
Inferred Oxide Tailings 50 1,230,000 5.0 3.4 19 0
Total Inferred All Deposits 6,545,000 21.8 12.5 129.0 17,700
Notes:
Figures may not add to totals shown due to rounding.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
The Mineral Resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s (CIM) Definition Standards for Mineral Resources and Mineral Reserves incorporated by reference into National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects.
Cut-off grades were calculated using the following consensus metal price assumptions: gold price of US$1,875/oz, silver price of US$24.00/oz, and copper price of US$3.10/lb.
Silver equivalent (AgEQ) ounces are notional, based on the combined value of metals expressed as silver ounces.
Metal Recovery based on operational results and column tests.
The silver equivalent was calculated using the following assumptions:
For ET using the formula: AgEQ = 1 x Ag grade + 65.1 x Au grade + 8.66 x Cu grade
For San Gonzalo using the formula: AgEQ = 1 x Ag grade + 72.54 x Au grade
For Oxide Tailings using the formula: AgEQ = 1 x Ag grade + 84.55 x Au grade
Avino President and CEO, David Wolfin commented: “We are thrilled to have successfully gone over and above replacing mining depletion since the previous report, by adding significant additional measured and indicated resources at the Avino property. The updated mineral resource estimate provides us with a robust long-term outlook. With several areas on the property that have yet to be explored, there is a strong in-situ potential for further potential resource extension. Many thanks to our hard-working operation team in Mexico for their hard work over the years to more fully understand the extent of mineralization at Avino. The drills will be active again during the first quarter and the 2021 exploration program will continue to build on the success of our past operations.”
The indicated mineral resource at Avino’s Elena Tolosa (“ET”) deposit has been significantly increased. As of the date of the previous mineral resource estimate in 2018, the mineralization was estimated to consist of a 10 metre to 30 metre wide footwall zone with a sporadic development of hanging wall stockwork.
Subsequently, the Avino Vein has been fully exposed and sampled in underground development below elevations of 360 metres to 470 metres below surface, and it has been discovered to be consistently and continuously mineralised between the hanging wall and footwall veins over a thickness of up to 45 metres. This broad zone has been proven by underground development and channel sampling down to an elevation of 1,849 metres.
This mineralization was sampled and partially mined before the recent hiatus in operations and it is included in the current mineral resource.
Detailed depletion models for the ET deposit and San Gonzalo have been applied, based on updated 3D models of underground development and stoping excavations.
The western portion of the inferred oxide tailings resource has been reduced, due to
uncertainty of the bedrock topographic profiles under the tailings and
the increased depth of sulphide tailings that was placed above the western portion of the inferred oxide tailings resource.
The total measured and indicated mineral resource tonnage in all deposits totals 20.3 million metric tonnes containing
75.9 million troy ounces of silver equivalent, comprised of 44.9 million troy ounces of silver, 436,000 troy ounces of gold, and 83,000 metric tonnes of copper.
The total inferred mineral resource tonnage in all deposits totals 6.6 million metric tonnes, of 21.8 million troy ounces of silver equivalent comprised of 12.5 million troy ounces of silver, 129,000 troy ounces of gold, and 17,700 metric tonnes of copper.
The mineral resource estimates were prepared by Michael O’Brien P.Geo., Pr.Sci.Nat., of Red Pennant Geoscience who is a “Qualified Person” within the meaning of NI 43-101 and independent of Avino, as defined by Section 1.5 of NI 43-101.
Oxide Tailings
The Oxide Tailings resource has been re-estimated using the same model and data as the previous mineral resource update, however a more conservative approach has been utilized in extrapolating the inferred material.
Method of Calculation
The definitive estimation methods used were substantially the same for all three deposits (Ordinary Kriging), providing a consistent baseline for strategic planning.
Mineral resources were estimated by ordinary kriging, optimized using kriging neighbourhood analysis and verified by means of nearest neighbour and inverse distance methods, swathplot comparisons of estimates and visual inspections. Block models were created for the San Gonzalo and Avino Vein Systems and the Oxide Tailings deposit and estimates were made utilizing blocks of sizes 20 m long x 5 m wide x 10 m high for Avino (ET Mine), sizes 10 m long x 5 m wide x 10 m high for San Gonzalo and 40 m long x 40 m wide x 2 m high for Oxide Tailings.
Fundamental changes since the previous mineral resource estimates are (1) depletion due to mining (over 800 thousand tonnes milled since the beginning of 2018), (2) significant new sampling information (3) changes to cut-off calculations and (4) reclassification of mineral resources in the light of improved confidence in the understanding of the deposits at distances from the underground channel samples and drill hole samples.
More sampling information does not always lead to direct increases in resource tonnages and contained metal. In some cases, the new information provides improved understanding (developed by variogram modelling and kriging neighborhood analysis) that may demote some portions of mineral resource from high confidence measured and indicated categories, to a lower confidence inferred category.
Currently, for the San Gonzalo and Avino Vein Systems, estimated blocks more than thirty-five metres from samples are not included in the indicated category resources and have been classified as inferred resources.
For the Oxide Tailings, estimated blocks more than fifty metres from samples are not included in the indicated category resources.
Gold Terra drills five m of 9.03 g/t Au at Yellowknife
Gold Terra Resource Corp. has provided assays for nine holes at the high-grade Crestaurum gold deposit on its 100-per-cent-owned Yellowknife City gold (YCG) project near the city of Yellowknife, Northwest Territories. The Crestaurum gold deposit is an advanced exploration target located within the same large mineralized system suite as the past producing Con and Giant mines which have produced a total of 14 million ounces of gold. (Figure 1)Figure 1 – Crestaurum Deposit and Con Shear
Read MoreThe 9 holes totaling 1062 metres tested the main Crestaurum shear structure at shallow depths across 900 metres of strike length, and also tested high-grade secondary shears and splays in the hanging wall and footwall of the main shear.
The Crestaurum gold deposit 3D model can be viewed at https://vrify.com/decks/crestaurum-january-13-pr.
President and CEO David Suda stated, "The Crestaurum deposit is likely an extension of the Con Shear Zone which produced approximately 1 M oz of gold at the past producing Con Mine. 2020 drilling at the Crestaurum deposit identified multiple vein systems from near surface to approximately 250m below surface. With these results, we are confident that the Crestaurum could potentially be host to a substantial open pit scenario in the future. In 2021, we will continue to focus on expanding our YCG resource and resume drilling on our highest priority target, the Campbell Shear, immediately south of the past producing Con mine (5 million ounces). Both the Campbell Shear and the Con Shear stratigraphy are exceptional due to the high-grade nature of their past producing gold deposits."
Drilling Highlights
Hole GTCR20-104 intersected 9.03 g/t Au over 5 metres including 23.7 g/t Au over 1.0 meter within a mineralized shear zone containing quartz veins with visible gold. The hole is located approximately 40 metres up dip and 25 metres to the south from GTCR20-103 which intersected 9.60 g/t over 4.0m (NR December 9, 2020). In addition, hole GTCR20-105 intersected 5.84 g/t Au over 2 metres approximately 75 metres up dip of GTCR20-104.
Three holes were drilled in an area around the exploration shaft sunk in 1946, an area previously believed to be unmineralized. Hole GTCR20-102 had a narrow low grade intersection of 2.66 g/t Au over 0.80 metres, Hole GTCR20-106 was designed to test both the main shear and a hangingwall vein and intersected 3.23 g/t Au over 0.75 metres in the hangingwall vein and 1.75 g/t Au over 2.70 metres in the main shear. Hole GTCR20-107 intersected 2.31 g/t Au over 4.10 metres, including 10.55 g/t Au over 0.80 metres.
Three drill holes were drilled across approximately 200 metres of strike length to intersect the main shear at shallow depths above current high grade in the South Shoot area. These holes were designed to increase the near surface mineralization available for future open pitting. Hole GTCR20-108 interested 8.19 g/t Au over 1.95 metres, and GTCR20-109 intersected 3.43 g/t over 3.90 metres, including 7.11 g/t Au over 1.75 metres. Both holes also intersected significant mineralization in the footwall of the main shear, including 2.53 g/t Au over 2.75 metres in hole GTCR20-109. Hole GTCR20-111 failed to intersect significant mineralization in the main shear and had two gram level assays in the hangingwall to the shear.
Hole GTCR20-110 was drilled south of the Daigle Fault to determine the location of the southern extension of the Crestaurum Shear beyond the fault. The shear structure was successfully intersected but was low grade (0.86 g/t Au over 3.0 metres).
Assays are pending for hole GTCR20-112.
Technical Appendix
This news release reports the assay results from nine (9) drill holes totaling 1,062 metres from which 264 core samples were assayed. Assay results range from non-detectable gold to a highest assay of 23.7 g/t Au. The Company inserts certified standards and blanks into the sample stream as a check on laboratory Quality Control (QC). Drill core samples are cut by diamond saw at Gold Terra’s core facilities in Yellowknife. A halved core sample is left in the core box. The other half core is sampled and transported by Gold Terra personnel in securely sealed bags to ALS (ALS) preparation laboratory in Yellowknife. After sample preparation, samples are shipped to ALS's Vancouver facility for gold analysis. Gold assays of >3 g/t are re-assayed on a 30 g split by fire assay with a gravimetric finish. Samples with visible gold are additionally assayed using a screen metallics method. ALS is a certified and accredited laboratory service. ALS routinely inserts certified gold standards, blanks and pulp duplicates, and results of all QC samples are reported.
Drill holes were drilled at right angles to the zones of mineralization and dip angles of holes were designed to intersect the zones as close to normal as possible. Zones reported here are interpreted to be 90-100 percent of true thickness.
The technical information contained in this news release has been reviewed and approved by Joseph Campbell, Chief Operating Officer, a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Crestaurum - DDH Intersections
Drill HoleDipAzimuthUTM Location From (m)To (m)Interval (m)Au g/t
EastingNorthing
GTCR20-102-50305 635923 6941966 39.3 40.3 1.00 1.98
95.9 96.7 0.80 2.66
GTCR20-104-59309 636041 6942093 90.31 95.31 5.00 9.06
GTCR20-105-46305 636019 6942074 86 88 2.00 5.85
incl87 88 1.00 11.55
GTCR20-106-45306 636059 6941923 40.5 41.25 0.75 3.23
167.3 170 2.70 1.75
incl167.3 168 0.70 5.37
GTCR20-107-50305 635958 6941948 102.95 107.054.10 2.31
102.95 103.750.80 10.55
GTCR20-108-58305 635613 6941593 32.85 34.8 1.95 8.19
40 41.4 1.40 0.70
43.55 44.45 1.00 1.28
GTCR20-109-45354 635625 6941612 19 22.9 3.90 3.43
incl21.15 22.9 1.75 7.11
31.4 34.15 2.75 2.53
37.35 39 1.65 0.75
GTCR20-110-7040 635497 6941317 91.52 92.52 1.00 1.06
169 172 3.00 0.86
GTCR20-111-45305 635559 6941443 46.7 47.76 1.06 1.30
53.65 54.65 1.00 0.93
Lithium Chile samples up to 1,450 ppm Li at Laguna
Lithium Chile Inc. has recommenced exploration efforts at its Laguna Blanca lithium/cesium property where a geological team is currently conducting a program of salts and liquids sampling. The program is intended to extend the initial sampling program which covered less than 10% of the 4600-hectare property but returned high lithium and cesium grades from surface salt-sediments to a depth of 1.2 meters as reported by ALS Labs.
Read MoreHIGHLIGHTS:Lithium assay grades range from 1125 to 1450 ppmCesium assay grades range from 112 to 688 ppm
The high grades of both lithium and cesium in the solid samples has made an advanced exploration program on the Laguna Blanca property a priority for Lithium Chile as the lithium and cesium grades were some of the highest grades seen by the Company to date.
The U.S. Geological Survey designated cesium as a strategic mineral in May 2018. Demand and prices for cesium have risen recently, primarily driven by its use in 5G mobile networks. There are currently only three producing cesium mines in the world, all of which are controlled by Chinese companies.
More importantly, the ability for Lithium Chile to get their exploitation team on the ground at Laguna Blanca reflects the easing of Covid 19 restrictions that have been in place in Chile since early in 2020. Easing of these restrictions will allow Lithium Chile to advance its other lithium projects as well.
Steve Cochrane, President and CEO of Lithium Chile, commented: “It gives me great pleasure to be able to advise shareholders that we are once again working on our lithium prospects. The proximity of our lithium properties, in the heart of the lithium triangle, to Bolivia and Argentina resulted in a year-long access restriction to our properties by the Chilean Government. The Government’s wish to reduce the risk of cross border contamination resulted in these road and border closures. The lifting of these access restrictions coupled with the recent rise in Chinese lithium carbonate prices from 40,000 RMB/ton ($6,000US/ton) to 60,000 RMB/ton ($9,000 US/ton) over the last 15 weeks gives us a reason to be optimistic for 2021.”
Aurion JV B2Gold samples 42.4m of 1.07g/t Au at Sinerma
Aurion Resources Ltd. has released results from exploration activities completed by its joint venture partner, B2Gold Corp. on the Kutuvuoma East and Sinerma areas in the Central Lapland greenstone belt in northern Finland.
Read MoreSummary
New gold discovery at Sinerma
A new gold discovery at Sinerma located 23 km SSW of Agnico-Eagle’s Kittila Mine. Trench channel sampling results include 1.07 g/t Au over 42.40 m and 1.30 g/t Au over 20.80 m. A four-hole diamond core drilling program returned intersects including 0.54 g/t Au over 40.20 m (SIN20001 from 7 m down hole), 6.80 g/t Au over 0.75 m (SIN20003 from 110.80 m down hole) and 4.11 g/t Au over 1.40 m (SIN20002 from 13.50 m down hole).
High-grade gold intersected at Kutuvuoma East
Gold intersects, including 14.77 g/t Au over 1.60 m (KUE20003 from 42.20 m down hole) and 1.63 g/t Au over 2.80 m (KUE20001 from 50.90 m down hole), were returned from a new target area located along strike and in between Rupert Resources Ltd.’s Ikkari discovery (3-4.5 km to east) and the Kutuvuoma prospect (3.5-5.0 km to west).
Comments
“The discovery of new zones of gold mineralization in two previously untested areas, with a modest drill program of only 2,000 m, highlights the potential of the extensive Aurion-B2Gold JV area,” commented Matti Talikka, Aurion’s CEO. “We’re pleased to have B2Gold as a committed partner and are looking forward to an exciting year as increased levels of exploration activities are planned with a focus on the Kutuvuoma-Ikkari area.”
New gold discovery at Sinerma
The Sinerma area is located in the western part of the JV property, approximately 22 km northwest of the Kutuvuoma prospect and 23 km SSW of Agnico-Eagle’s Kittila Mine. The gold mineralized zones in the Sinerma area were identified via base of till sampling and geophysical survey programs, which were followed by excavation of five trenches and drilling of four diamond drill holes (total 647.7 m).
The gold mineralized zones are hosted within strongly altered (fuchsite plus or minus Fe-carbonate plus or minus silica) and deformed or brecciated contact zones between ultramafic and mafic volcanic rocks.
Trench SINTR01 is ~100 m long and returned anomalous channel sampling intervals including 0.41 g/t Au over 5.80 m and grab samples up to 10.37 g/t Au. Trench SINTR02 is ~160 m long in E-W orientation and has a ~50 m long arm in N-S orientation. Channel sampling within the trench returned several intervals with elevated gold values including 1.07 g/t Au over 42.40 m, 1.30 g/t Au over 20.80 m, 0.95 g/t Au over 11.00 m and 0.91 g/t Au over 10.50 m. Individual samples returned gold values up to 9.31 g/t Au. Trench SINTR03 is ~20 m long and no significant gold values were encountered. Trench SINTR04 is ~50 m long in E-W orientation, located 1.0 km NW of trench SINTR2 and did not return elevates gold values. Trench SINTR05 is ~40 m long in E-W orientation, located 1.4 km NW of trench SINTR05 and channel sampling returned an interval of 1.46 g/t Au over 1.30 m.
Drill hole SIN20001 was drilled below trench SINTR02 and returned a gold mineralized interval of 0.54 g/t Au over 40.20 m from 7.00 m down hole including 1.28 g/t Au over 2.30 m from 20.40 m down hole and 1.62 g/t Au over 1.95 m from 38.75 m down hole. Drill hole SIN20002 was drilled below trench SINTR02 and returned gold mineralized intervals of 4.11 g/t Au over 1.40 m from 13.50 m down hole and 1.24 g/t Au over 1.10 m from 45.90 m downhole. Drill hole SIN20003 was drilled ~40m to the south from the main E-W oriented portion of trench SINTR02. The drill hole returned gold mineralized intervals of 0.53 g/t Au over 10.70 m from 31.50 m down hole and 6.80 g/t Au over 0.75 m from 110.80 down hole. Drill hole SIN20004 was aimed to undercut trench SINTR05 but did not intersect the contact between mafic and ultramafic rocks and returned intervals with anomalous gold values (up to 0.16 g/t Au).
Table 1: Sinerma Drill Hole Summary. HOLE_ID Azimuth Dip From (m) To (m) Width (m)Au (g/t) SIN20001 360.0 -50.0 7.00 47.20 40.20 0.54 incl. 20.40 22.70 2.30 1.28 incl. 38.75 40.70 1.95 1.62 SIN20002 360.0 -50.0 13.50 14.90 1.40 4.11 AND 45.90 47.00 1.10 1.24 AND 52.30 59.10 6.80 0.32 SIN20003 90.0 -40.0 31.50 42.20 10.70 0.53 incl. 32.80 34.20 1.40 1.47 AND 68.90 100.00 31.10 0.20 AND 110.80 111.55 0.75 6.80 SIN20004 80.0 -45.0 NSV All widths are core widths. True width is not known at this time. All assay values are uncut. NSV = No significant values
High-grade gold intersected at Kutuvuoma East
Kutuvuoma East target is located along strike and in between Rupert Resources’ Ikkari discovery (3-4.5 km to east) and the Kutuvuoma prospect (3.5-5 km to west) and within the metavolcanic and metasedimentary rocks of the Savukoski group near the contact with the sedimentary rocks of the Kumpu group.
The initial, widely spaced, five-hole (1,259.1 m) diamond drilling program tested selected geochemical (gold in base of till) and geophysical targets over an area extending 1,300 m in strike length. All drill holes intersected zones with elevated gold (>0.1 g/t Au) with mineralized zones encountered in multiple lithologies including ultramafic and mafic volcanic rocks, siltstones, graphitic sediments and in contacts between volcanic rocks and felsic/porphyritic dykes.
Drill holes KUE20001 and KUE20002 were collared in the western part of the target area and intersected strongly altered (silica plus or minus albite plus or minus Fe-carbonate plus or minus sericite plus or minus pyrite) and deformed units of mafic, ultramafic and intermediate volcanics, graphitic sediments and gabbro of the Savukoski group. KUE20001 returned an intercept of 1.63 g/t Au over 2.80 m from 50.90 m down hole. In addition, both drill holes intersected intervals with anomalous (>0.1 g/t) gold values.
Drill holes KUE20003, KUE20004 and KUE20005 were collared in the eastern part of the target area and intersected strongly altered (silica plus or minus albite plus or minus Fe-carbonate plus or minus sericite plus or minus pyrite) and deformed units of mafic and ultramafic volcanics, graphitic sediments and felsic/porphyritic dykes of the Savukoski group and quartzite, conglomerate and arkose of the Kumpu group. KUE20003 returned intercepts of 14.77 g/t Au over 1.60 m from 42.20 m down hole and 1.86 g/t Au over 1.40 m from 52.40 m down hole. KUE20005 returned intercepts of 2.21 g/t Au over 1.40 m from 48.40 m down hole, 2.14 g/t Au over 0.90 m from 77.10 m down hole and 1.13 g/t Au over 0.95 m from 160.60 m down hole. In addition, all drill holes intersected intervals with anomalous (>0.1 g/t) gold values.
Gold mineralization was intersected in all holes (from anomalous to 28.90 g/t Au) in the maiden drill program on the Kutuvuoma East target. The drilling results indicate that the geological sequence is prospective for gold for at least 8 km between Kutuvuoma and Ikkari.
Table 2: Kutuvuoma East Drill Hole Summary HOLE ID Azimuth Dip From (m) To (m) Width (m) Au (g/t) KUE20001 160.0 -45.0 50.90 53.70 2.80 1.63 KUE20002 160.0 -45.0 NSV KUE20003 160.0 -45.0 42.20 43.80 1.60 14.77 incl. 43.00 43.80 0.80 28.90 AND 52.40 53.80 1.40 1.86 KUE20004 340.0 -45.0 NSV KUE20005 340.0 -45.0 48.40 49.80 1.40 2.21 AND 77.10 78.00 0.90 2.14 AND 160.60 161.55 0.95 1.13 Intercepts reported at 1 g/t gold. All assay values are uncut. NSV = No significant values All widths are core widths. True width is not known at this time.
Other exploration activities in 2020
An extensive drone geophysical magnetic survey was carried out covering 24 km2 in the Kutuvuoma area and 178 km2 in the western part of the JV area.
A total of 1,175 base of till samples were collected in the Ahvenjarvi and Sinerma areas. The sampling program identified several gold in till anomalies, such as at Sinerma.
Diamond drilling at Kutuvuoma returned gold mineralized intervals including 12.28 g/t Au over 2.75 m from 28.15 m down hole and 6.74 g/t Au over 5.60 m from 121.20 m down hole. Drilling confirmed lateral extensions to the west and east of the main zone to over 1,080 m along strike, with mineralization open in all directions (see news release Aug 26, 2020).
JV area amendment
Three new permits or permit applications (total 2,589 ha) located to the south of the current JV land holdings will be added to the JV area increasing the total land holdings to approximately 29,000 ha.
Exploration activities in 2021
B2Gold is planning to increase the level of exploration activities in 2021 with an initial budget of CAN$6 million. The preliminary plans include geophysical surveys, trenching, base of till sampling and at least 5,000 m of diamond drilling with a focus on the Kutuvuoma-Ikkari area. Rupert Resources’ Ikkari discovery is located 100-300 m from the JV property boundary with the prospective geological sequence interpreted to extend to the JV area. The possible extensions of the discovery will be tested following the granting of the adjacent exploration permits.
Background
On August 13th, 2019, B2Gold exercised its option to acquire a 51% interest in the Finland Joint Venture covering approximately 29,000 hectares, which include the Kutuvuoma, Ahvenjarvi and Sinerma projects. Since inception of the agreement, dated January 13, 2016, B2Gold completed over CAN$5 million in exploration expenditures, paid Aurion CAN$50,000 in cash and issued 550,000 B2Gold shares over a four-year period to complete the requirements of the first option.
B2Gold is currently earning an additional 19% interest by spending a further CAN$10 million over two years, and, if exercised, an additional 5% interest by completing a feasibility study, for a total of 75%.