Mining bosses lay out plans for top LatAm gold assets

CEOs outlined plans for some of Latin American biggest gold mines, with a strong focus on expanding existing operations and new growth through exploration.

Company chiefs updated progress and goals for six projects with combined capex of US$4.83bn, along with priorities for six of the region’s key mines at the online Gold Forum Americas event.

Expansions or increased throughput are planned at five of the mines, along with exploration aimed at mine life extensions at two assets.

The firms aim to cash in on higher gold prices – with the metal hitting a record of above US$2,000/oz in August – despite ongoing challenges from the COVID-19 pandemic.

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1. Yanacocha sulfides project, Peru

Newmont’s main Latin American focus is on the US$2.1bn Yanacocha sulfides project.

“We have been mining there [at Yanacocha] for over 25 years, it is a fabulous oxide deposit that we have just about depleted,” CEO Tom Palmer told the forum.

“Underneath that oxide are sulfide deposits that we need a different processing technique to liberate that gold, copper and silver, and that is our main focus.”

2. Pueblo Viejo expansion, Dominican Republic

Barrick Gold expects to be in a position to set out a timeline to advance its US$1.3bn Pueblo Viejo Expansion project next year, CEO Mark Bristow told the forum.

The company has received an environmental permit for the plant expansion and is awaiting a decision on a proposed tailings storage facility.

The expansion is expected to extend operations at Latin America’s biggest gold mine into the 2040s, by tapping additional reserves.

“We expect a full feasibility study which will unlock those additional reserves next year,” Bristow said.

The current focus is on engaging with the government and affected parties within the project footprint, the CEO added.

3. Peñasquito mine, Mexico

Newmont is focusing on new discoveries around its Peñasquito mine in Mexico after reaching an agreement which resolved community blockades at the asset last year.

“We were able to work with local communities, state and federal governments and the union representing our workforce to reach a sustainable solution at Peñasquito,” Palmer told the forum.

“We now have sustainable relations with all stakeholders that not only allows us to deliver the full potential of a world class operation but importantly also provides access to land where we can use our exploration capabilities and proprietary technology to search for the next Peñasco-style deposit.”

4. Cerro Negro mine, Argentina

Newmont is advancing exploration at Cerro Negro with the aim of increasing the mine life.

“At Cerro Negro our real focus is on exploration. We have doubled our land position down there and are very excited about the potential around Cerro Negro,” Palmer said.

“It’s really about the work we can do applying Newmont’s exploration capabilities to extend the life of that mine.”

5. Merian mine, Espérance project: Guiana Shield

Newmont’s Merian mine in Suriname is now a mature asset, with the company looking over the border into French Guiana for potential longer-term growth at the US$250mn Espérance project.

“At Merian we are really getting into the mature stage of that mine and delivering value. We are actively exploring across the river from Merian in French Guiana at Espérance,” Palmer said.

“That’s a longer-term opportunity in the Guiana Shield.”

6. Gramalote project, Colombia

B2Gold and 50:50 JV partner AngloGold Ashanti expect to make a construction decision at the US$901mn Gramalote project next year, shortly after finishing a feasibility study, B2Gold CEO Clive Johnson said.

The company has completed infill drilling, the results of which are currently being analyzed, with no surprises expected, Johnson said.

“That will be a new geological model, which will be a new mine plan, which will go into the new feasibility study that’s at end-1Q21,” he told the event.

7. Fruta del Norte mine, Ecuador

Lundin Gold is planning to boost throughput at its US$692mn Fruta del Norte mine in Ecuador.

The mine began commercial operations in February and restarted production following a three-month COVID-19 shutdown in July.

“We think we can really look at increasing throughput even in 2021, assuming we have environmental approval to move forward up into 4,100-4,200t/d from the current 3,500t/d, and then we think we can even go a bit higher, up to 4,500t/d but that would be a little bit later, probably in 2022,” CEO Ron Hochstein told the forum.

8. Aurizona mine, Brazil

Equinox Gold is evaluating possible expansions of its Aurizona gold mine in Brazil, while planning a three-year exploration program, CEO Christian Milau told the event.

“We just put it into production last year and we are now looking at underground and open pit opportunities to expand it, plus regional exploration,” he said.

9. Los Filos expansion project, Mexico

The Equinox chief executive said the company is continuing to evaluate an upsizing of a carbon-in-leach (CIL) plant, as part of its Los Filos expansion project in Mexico.

The company is considering doubling the capacity of the plant to 8,000t/d, with the option for further expansion to 10,000t/d.

The company currently expects the expansion to cost US$200-300mn.

“It will probably take us 1.5 years to put that into place and construct it, so we’re still a little way out but that mine, we are really excited about it because there’s another 6Moz in resource and you will start to convert some of that to reserves,” Milau added.

10. Santa Luz project, Fazenda mine, Brazil

Equinox is also considering how best to advance its US$82mn Santa Luz project in Brazil and the Fazenda mine in Brazil, which are around 100km apart.

“They are not exactly a district or complex but they are almost close enough and there are a bunch of exploration concessions in between,” Milau said.

“When we get Santa Luz up and running, which should be around end-2021, we have got an area we can be exploring and trying to extend mine lives,” he added.