Newmont Goldcorp(NYSE: NEM) is a leading gold and copper producer with operations in the U.S., Australia, Ghana, Peru and Suriname. Earlier this year, Barrick struck a joint venture with Newmont Goldcorp, called Nevada Gold Mines, which will have three tier-one gold mines: Barricks Cortez; the combination of Barricks Goldstrike and Newmonts Carlin; and Barricks Turquoise Ridge, with Newmonts Twin Creeks. The joint-venture operations making up Nevada Gold Mines owned 61.5% by Barrick and 38.5% by Newmont Goldcorp produced more than 4 million oz. gold in 2018.
In November 2018, Newmont declared commercial production at the Subika underground project in Ghana, which represented Newmonts third profitable expansion last year. The companys consolidated gold production in 2018 totalled 5.48 million ounces. The attributable gold production outlook for 2019 is 5.2 million oz. gold at all-in sustaining costs of $935 per oz. gold.
Southern Copper(NYSE: SCCO) is one of the largest integrated copper producers in the world, with a copper reserve totalling 70.6 million tonnes. The company was incorporated in Delaware in 1952, and is listed on the New York and Lima Stock Exchanges. The company operates in Mexico and Peru, and has exploration projects in Argentina, Chile, Ecuador, Mexico and Peru.
Southern Copper produced 883,689 tonnes copper, 70,778 tonnes zinc and 17.3 million oz. silver in 2018, compared to 876,979 tonnes copper, 68,665 tonnes zinc and 15.9 million oz. silver in 2017. For 2019, the company expects to produce 986,700 tonnes copper, 96,400 tonnes zinc and 21.4 million oz. silver.
In February 2018, the company won the public bidding process for the Michiquillay project in Cajamarca, Peru, with mineral resources of 1.15 billion tonnes and a 0.63% copper grade. The Michiquillay project is expected to produce 225,000 tonnes copper a year, along with by-products molybdenum, gold and silver, for an initial mine life exceeding 25 years. Michiquillay will start production in 2025 to become one of the largest copper mines in Peru.
Phoenix-headquarteredFreeport-McMoRan(NYSE: FTX) operates seven open-pit copper mines in North America (Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico) and two copper mines in South America (Cerro Verde in Peru, and El Abra in Chile).
In 2018, Freeport produced 3.8 billion lb. copper at an average realized price of $2.91 per lb., and 2.4 million oz. gold at $1,254 per ounce. The company has estimated consolidated recoverable proven and probable mineral reserves of 119.6 billion lb. copper, 30.8 million oz. gold, 3.78 billion lb. molybdenum and 393.1 million oz. silver.
In May 2019, Freeport announced the sale of its cobalt refinery in Kokkola, Finland and related cobalt cathode business to Umicore for $150 million. Production at the Lone Star copper-leach project in Arizona, which Freeport started developing in 2018, should begin by the end of 2020. In December 2018, the Indonesian government took a 51.2% stake in Freeports Grasberg mine in Papua province, Indonesia, in a $3.85 billion deal.
FMC(NYSE: FMC), a chemical company headquartered in Philadelphia, Pa., serves the global agricultural, consumer and industrial markets. The company has two business segments: FMC Agricultural Solutions and FMC Lithium. The former offers crop-protection chemicals to enhance crop yield and control pests in non-agricultural markets, while the lithium segment makes lithium for use in products relating to energy storage, specialty polymers and chemical synthesis applications.
In June 2019, FMC announced plans to invest more than $50 million over the next three years in capital-improvement projects, including the reconfiguration of a greenhouse and research facility at the companys global research and development headquarters in Newark, Delaware.
Mosaic(NYSE: MOS) is the worlds leading producer and marketer of concentrated phosphate and potash. The Fortune 500 company, headquartered in Plymouth, Minn., has been publicly traded since 2004. Mosaics principal phosphate-production facilities are in Florida and Louisiana, while its potash-production facilities are in New Mexico, Saskatchewan and Canada.
In 2018, Mosaic sold 8.8 million tonnes potash and 8.4 million tonnes phosphate. This years potash sales are expected to range from 9 million to 9.4 million tonnes, and 8.6 million to 9 million tonnes for phosphates.
In the second quarter of 2019, Mosaic reported a net loss of $233 million, including a $284-million, non-cash, after-tax charge for the permanent closure of its Plant City phosphate facility in Hillsborough County, Fla., in June 2019.
Albemarle(NYSE: ALB) is a global specialty chemicals company in lithium, bromine and refining catalysts, serving markets that include energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, crop protection and custom chemistry services.
In December 2018, Albemarle entered a definitive agreement to acquire a 50% interest in Mineral Resources Ltd.s Wodgina project in the Pilbara region of Western Australia for $1.2 billion. The joint venture will produce spodumene concentrate and battery-grade lithium hydroxide.
In July 2019, Albemarle raised its stake in the Wodgina hard rock lithium project to 60%, and formed a 60/40 joint venture with Mineral Resources to operate the mine and battery-grade lithium hydroxide production facilities.
Royal Gold(NASDAQ: RGLD) acquires and manages precious metals stream and royalty interests, with a focus on gold. The Denver, Colo.-based company owns interests in 186 properties on five continents, including 41 producing mines and 15 development-stage projects. Three-quarters of Royal Golds fiscal 2018 revenue came from its principal producing properties, which include Mount Milligan in Canada, Pueblo Viejo in the Dominican Republic, Andacollo in Chile, Wassa and Prestea in Ghana, Penasquito in Mexico, and Cortez in the United States.
In February 2019, Royal Gold acquired a silver stream on the Khoemacau copper project in Botswana, which has a 21-year initial mine life. Khoemacau is fully funded, and production and stream deliveries are expected in the first half of 2021.
Alcoa(NYSE: AA) is a global industry leader in bauxite, alumina and aluminum products. Alcoa is among the worlds largest bauxite producers, with seven bauxite mines, including the worlds second-largest: Huntly, in Australia. It is also the worlds leading producer of alumina, and operates six refineries in Australia, Brazil and Spain. Its three-refinery operation in Western Australia is the worlds biggest single source of alumina.
In 2018, the company produced 45.8 million tonnes bauxite, 12.9 million tonnes alumina and 2.3 million tonnes primary aluminum in 2018. This year, the company expects to ship between 47 million and 48 million dry tonnes bauxite, between 13.6 million and 13.7 million tonnes alumina, and between 2.8 million and 2.9 million tonnes aluminum.
Headquartered in Cleveland, Ohio,Cleveland-Cliffs (NYSE: CLF) is the largest and oldest independent iron ore mining company in the United States. Its mines and pellet plants in Michigan and Minnesota are major suppliers of iron ore pellets to the North American steel industry.
In June 2019, Cleveland-Cliffs completed a $100 million expansion of Northshore Mining, a company that mines iron ore near Babbitt, Minn., and moves the ore by rail to a processing plant on the north shore of Lake Superior in Silver Bay.
By 2020, Cleveland-Cliffs could become the sole producer of hot-briquetted iron in the Great Lakes region, with the development of its first production plant in Toledo, Ohio, which started construction in April 2018. The Toledo plant will produce 1.9 million tonnes per year of customized, high-quality, hot-briquetted iron.
Peabody Energy(NYSE: BTU) is the largest private-sector coal company in the world. Its primary business lies in mining, selling and distributing coal for use in electricity generation and steelmaking. The company, headquartered in St. Louis, Mo., has majority interests in 22 of the 23 coal-mining operations in the U.S. and Australia, and a 50% equity interest in Middlemount Coal Pty Ltd., which owns the Middlemount mine in Queensland, Australia.
In June, Peabody and Arch Coal entered an agreement to combine their Powder River basin and Colorado assets into a joint venture, which the companies estimate will unlock synergies of $120 million a year in the first 10 years. Peabody will be the operator and own 65% of the joint venture, and Arch will own the other 33.5%.
In December 2018, Peabody acquired the Shoal Creek seaborne metallurgical coal mine in Alabama from private coal producer Drummond Co. Inc. for $387 million. Shoal Creek is expected to ship 2.5 million tonnes of high-quality, hard-coking coal to Asian and Atlantic steel customers in 2019. The company announced on Aug. 9, 2019 that it would close the Somerville mining complex in Indiana, U.S., in October. The mine, which opened in 2000 and supplied 2 million tonnes coal in 2018, has been facing a tough economic climate.
Amid renewed investor interest in the resource space, industry players are starting to focus on new mine development. With this, already scarce exploration projects are becoming even more attractive. Below, we present eight companies with assets poised for growth.
In mid-October, the company announced that it would be going ahead with the construction of the Magino project in Ontario, 40 km northeast of Wawa. With a two-year construction period, the company anticipates the first gold pour in the first half of 2023.
In tandem with the announcement, the producer announced debt financing for the project, for a total of up to $175 million. This includes a $50-million bought deal offering of senior unsecured convertible debentures and an extension and expansion of an existing $75 million credit facility to $125 million.
The 2017 feasibility outlined a 10,000 tonne per day open pit operation with a 17-year mine life, producing an average of 150,000 oz. of gold in the first five years at all-in sustaining costs of $711 per oz. The resulting project net present value estimate, at a 5% discount rate, came in at $288 million.
This year, the company expects to generate 200,000-215,000 oz. of gold-equivalent at AISCs of $1,225-1,350 per ounce. This total includes contributions from the El Castillo, San Agustin and La Colorada open pit mines in Mexico, as well as from the Florida Canyon heap leach site in Nevada. Argonaut added this last asset to its portfolio last year, through an all-share merger with Alio Gold.
In November, Argonaut announced the discovery of four new, high-grade gold zones at Magino the zones (Scotland, #42, Sandy and South) are either below or adjacent to the planned pit. Drill highlights included 7 metres of 14 grams gold per tonne from Scotland starting at 431 metres; 8 metres of 9.3 grams gold from #42 starting at 365 metres; 9 metres of 5.4 grams gold at Sandy from 741 metres; and 7 metres of 4.2 grams gold at South from 884 metres.
Canada Nickel (TSXV: CNC; US-OTC: CNIKF) wholly owns the Crawford nickel-cobalt sulphide discovery north of Timmins in Ontario. The junior is working to deliver a preliminary economic assessment of the project by year-end, which would be followed by a feasibility study by the end of 2021.
In October, the company published an updated resource estimate for Crawford, with a total of 657 million measured and indicated tonnes grading 0.26% nickel, 0.013% cobalt, and 6.58% iron and 646 million inferred tonnes grading 0.24% nickel, 0.013% cobalt, 6.81% iron, 0.024 gram palladium per tonne and 0.013 gram platinum per tonne. These resources are contained within the Main and East zones and include both a higher-grade shell (at a 0.25% nickel cut-off) as well as a lower-grade domain (based on a 0.15% nickel cut-off).
The known nickel resource covers over 4 km of strike; the higher-grade core has been traced for 1.8 km of strike, is 150 to 220 metres wide and up to 650 metres deep. This includes 201 million tonnes of material grading 0.34% nickel.
Shortly after the resource update, Canada Nickel also announced, based on the results from four drillholes, a new discovery at Crawford the West zone. While assays are pending, all four holes hit mineralized dunite along a width of 800 metres and along 425 metres of strike, within a 2.5 km by 400 to 800-metre wide geophysical anomaly, approximately 850 metres northwest of the Main zone. The gravity anomaly associated with the West zone appears to be larger than that for the Main zone.
Next to the Main and East zone nickel mineralization, the company has outlined a platinum group metal (PGM) zone, which has been traced from near surface to a depth of over 400 metres and along several kilometres of strike. Drill intersections from this zone included 7.5 metres of 2.6 grams palladium and platinum starting at 123 metres.
Canada Nickel has also established NetZero Metals, a division aimed at developing a zero-carbon footprint operation. This division is looking at various technologies throughout the mining, milling and processing steps, which could minimize and absorb carbon dioxide.
The wholly owned project is made up of four mineral deposits two of which include mineral reserves along a 20-km long trend. According to Marathon, its project is the largest undeveloped gold resource in Atlantic Canada.
Total measured and indicated resources at the site stand at 54.9 million tonnes grading 1.75 grams gold per tonne for a total of 3.1 million gold ounces. Inferred resources add a further 16.8 million tonnes at 1.78 grams gold totalling 960,000 ounces.
In April, the developer released the results of a prefeasibility study on Valentine, which defined a 12-year open pit mine, producing an average of 175,000 oz. of gold annually in the first nine years. With an initial capital cost of C$272 million and average life-of-mine, all-in sustaining costs of $739 per oz., the net present value estimate for the project, at a 5% discount rate, came in at $472 million with a 36% internal rate of return.
In September, Marathon filed the Environmental Impact Statement (EIS) for Valentine with the Impact Assessment Agency of Canada (IAAC) and the Newfoundland Ministry of Environment, Climate Change and Municipalities (NLDECCM). By November, the company announced that the EIS had been accepted for a formal review by the federal assessment agency. The reviews are expected to take 12 months. Permitting would take place once the EA process is successfully completed.
Marathon continues to focus on exploration across its project site. The 52,000-metre 2020 exploration program included 8,000 metres of infill drilling at the Berry zone, which lies within the 6-km-long Sprite Corridor between the Marathon and Leprechaun deposits.
In November, the company released assay results for 15 drillholes completed as part of its Berry infill work. Highlights included 42 metres of 3.7 grams gold; 24 metres of 1.68 grams gold; and 10 metres of 3.52 grams gold. Results from this program will be used to complete an updated resource estimate for Berry.
Max Resource (TSXV: MXR) is advancing its wholly-owned Cesar copper-silver project, which covers 500-sq-km in northeastern Colombia. The property is 420 km north of Bogota and occurs along the copper-producing Andean Belt.
The AM South zone, 40 km south-southwest of AM North, covers 16 sq. km and occurs on the same mineralized trend. In October, the company reported 25-metre outcrop sample assays from this area, which, when combined, averaged out to 250 metres of 3% copper and 29 grams silver.
Earlier this month, Max expanded its land holdings by 340 sq. km by acquiring the Cesar South project, 200 km along trend from the principal Cesar holdings. Reconnaissance rock grab sampling completed along 15 km of strike at Cesar South identified copper values between 0.3% and 11.4% and silver values between 3 grams and 656 grams per tonne. According to the company, this new area of mineralization suggests that stratabound copper-silver is present at the southern and northern margins of the sedimentary basin, over 200 km, with potential for continuous mineralization.
Max Resource also has an exclusive option to earn a 100% interest in the 19.8-sq.-km RT gold property in Peru, 760 km northwest of Lima. There are two mineralized systems occur at the site: the Cerro zone, a bulk tonnage gold-bearing porphyry, and the Tablon zone, a gold-bearing massive sulphide zone, 3 km to the south-east.
The companys 1,100-tonne-per-day Yaramoko underground mine complex in Burkina Faso, 200 km southwest of Ouagadougou, is expected to produce a total of 120,000-130,000 oz. of gold this year at all-in sustaining costs of $930-$990 per ounce.
In November, Roxgold added near-surface, open-pittable reserves and resources to its mineral inventory at Yaramoko. The miner now has 820,000 tonnes of probable reserves at 7.2 grams gold per tonne, which contain 190,000 gold oz., in the open-pit category above the operating underground mine, which could support an open pit operation once the underground mine is completed.
According to John Dorward, Roxgolds president and CEO, these open pit additions are the first phase of Roxgolds plans to extend the Yaramoko life. In November, the company started a 14,500-metre underground drill program at the 55 Zone, focused on upgrading and extending resources at depth.
In April, the company published the results of a preliminary economic assessment on Seguela. The study outlined an open pit operation producing an average of 103,000 oz. of gold a year over an eight-year life at all-in sustaining costs of $749 per ounce. Due to the high-grade nature of the Ancien deposit, in its first three years, this operation would produce 143,000 oz. per year at AISCs of $600 per ounce.
With an initial capital outlay of $142 million, the project has an after-tax net present value estimate, at a 5% discount rate, of $268 million and a 66% internal rate of return, based on a gold price assumption of $1,450 per ounce. A feasibility study is now underway, with results expected in the first half of next year.
In October, Roxgold announced exploration results from the high-grade Koula prospect at Seguela reverse circulation highlights included 4 metres of 108.9 grams gold; 9 metres of 49.3 grams gold; and 9 metres of 30.1 grams gold.
On the earlier-stage exploration front, Roxgold also holds the Boussoura project in Burkina Faso, 180 km south of Yaramoko. In September, the company announced that drilling hit broad intervals of mineralization at the Fofora area. Highlights included 4.8 metres of 26.9 grams gold and 9 metres of 10.7 grams gold.
Skeena Resources (TSX: SKE; US-OTC: SKREF) is advancing the Eskay Creek and Snip gold projects in B.C.s Golden Triangle. The developer is working to deliver a prefeasibility study for Eskay Creek by the summer of 2021.
In November 2019, Skeena tabled a preliminary economic assessment for the past-producing Eskay Creek, which suggested a nine-year open-pit operation producing gold and silver in concentrate. The study outlined life-of-mine average annual gold-equivalent production of 306,000 oz. at all-in sustaining costs of $615 per oz., with pre-production capital outlays of C$303 million. The associated after-tax net present value estimate, at a 5% discount rate, came in at $638 million with a 51% internal rate of return, based on $1,325 per oz. gold and $16 per oz. silver.
In November, the company released infill results from the 21A and 22 zones at Eskay Creek. Notable intercepts from 21A included 31.1 metres of 5.15 grams gold per tonne and 21 grams silver per tonne; and 18.3 metres of 36.66 grams gold and 7 grams silver. Highlight intercepts from 22 included 48.7 metres of 6.89 grams gold and 122 grams silver; and 29.6 metres of 3.11 grams gold and 106 grams silver.
In October, the company closed a transaction with Barrick Gold (TSX: ABX; NYSE: GOLD) to acquire a 100% stake in Eskay Creek. In exchange, Skeena issued the major 22.5 million units (made up of one share and half a warrant) and granted the producer a 1% net smelter royalty on the Eskay land package, half of which can be repurchased.
The company also wholly owns the past-producing Snip gold project. Hochschild Mining (LSE: HOC) has the option to acquire 60% of this asset. In July, Skeena released a maiden resource for Snip, with 539,000 measured and indicated tonnes grading 14 grams gold containing 244,000 gold ounces; and 942,000 inferred tonnes at 13.3 grams gold for a further 402,000 gold ounces. A 5,000-metre drill program started at this site in October.
Sokoman Minerals (TSXV: SIC; US-OTC: SICNF) most advanced asset is the 24.5-sq.-km Moosehead orogenic lode gold project in north-central Newfoundland, where a phase six, 10,000-metre diamond drill program is underway. Moosehead lies along the Trans-Canada highway and is on the same trend as Marathon Golds (TSX: MOZ) Valentine Lake project and is adjacent to New Found Golds (TSXV: NFG) Queensway project.
As part of its first phase of drilling at the site, which started in June 2018, the junior discovered a high-grade zone of mineralization in the Eastern trend. The discovery hole returned 11.9 metres of 44.96 grams gold per tonne from 109 metres.
In September, Sokoman started the Phase 6 drill program and 15 holes have been completed to date, testing targets along the Western and Eastern trends. Drilling along the Eastern Trend included deeper holes, to test areas below 200 vertical metres at its north end.
In November, the explorer reported high-grade intercepts from a new, near-surface splay off the main part of the Eastern Trend two drillholes were collared south of the 2018 discovery hole. The results included 4.6 metres of 47.2 grams gold from 64 metres, 8.1 metres of 68.7 grams gold from 111.2 metres; and 1.8 metres of 11.85 grams gold starting at 54.5 metres and 4.3 metres of 2.94 grams gold from 183.8 metres. Both holes hit two intervals of mineralization.
The Moosehead drill program is ongoing with one rig. The company expects the drilling to continue into next year, as several targets require winter conditions for access and is also applying for permits for drilling on the ice.
Surge Copper (TSXV: SURG) wholly owns the 727.1-sq.-km Ootsa property, which includes three copper-gold-molybdenum-silver porphyry deposits (Ox, East Seel and West Seel), adjacent to Imperial Metals (TSX: III) Huckleberry mine.
The road-accessible property includes total measured and indicated resources of 224.2 million tonnes,grading 0.22% copper, 0.021% molybdenum, 0.15 gram gold per tonne and 2.8 grams silver per tonne (0.37% copper-equivalent). Additional inferred resources add 5.2 million tonnes at 0.18% copper, 0.019% molybdenum, 0.09 gram gold and 2.6 grams silver (0.29% copper-equivalent).
A 2016 preliminary economic assessment for the project outlined a 12-year contract mining and toll milling open pit operation. The 5.6-million-tonne-per-year mine would produce a total of 324 million lb. of copper, 185,000 oz. of gold, 15.8 million lb. of molybdenum and 3 million oz. of silver over its lifetime, at an all-in sustaining cash cost of $2.09 per lb. of copper.
With an initial capital outlay of C$64 million, the after-tax net present value estimate for the development came in at $186 million, at a 5% discount rate and based on $3 per lb. copper, with an 81% internal rate of return.
Shortly after closing a $6 million non-brokered flow-through private placement and a $500,000 non-brokered private placement in October, the company started a 10,000-metre core drilling program at the Seel Trend within Ootsa. Two drills are working at the site one is testing potential extensions of the deposits, with a second testing targets along the Seel trend. New targets include the East and West anomalies.
In November, Surge released assay results for the upper portion of the first hole from this years drill program at Ootsa the upper part of the drillhole hit 176.1 metres of 0.72% copper-equivalent and was drilled through the East Seel deposit. Assays from the lower part are expected in the coming weeks.
Nice article love the coverage of mining news but it would be nice to see more of a spread of geographics. Theres some very exciting uk stocks waiting on huge assay results like Alien Metals, OMI, ORR it would be great to see some focus on junior miners.