Nicaragua miners target gold output surge

Nicaragua’s miners are targeting a further step up in production as the country’s gold boom advances, with projects delivering significant new output in the coming years.

Mining companies are progressing a pipeline of projects capable of boosting production by 300,000oz/y, doubling the Central American nation’s total 2018 exports of the metal.

This gold surge is already well underway, with exports reaching 472,000oz in January-November last year, up from 379,000oz and 355,800oz in full-year 2020 and 2019, respectively, according to latest central bank data.

Gold has cemented its position as Nicaragua’s most valuable export, with shipments worth US$799mn in the first 11 months of 2021, ahead of beef (US$657mn) and coffee (US$472mn).

Mining chamber Caminic expects gold exports to rise to US$1bn this year, with further projects set to further expand output in 2023-24.

2022 GROWTH

Mako Mining’s San Albino mine will be the major driver of growth in 2022.

While the company does not issue production guidance, San Albino is scheduled for its first full year of operations in 2022, after commercial production began in July.

Production reached 10,291oz in Q4, up from 8,239t the previous quarter on higher grades and throughput, as the mill exceeded nameplate capacity of 500t/d, averaging 507t/d.

Mining has also entered the higher grade Porcelana area of the mine, which will prop up production over the remainder of the San Albino mine life, with further growth expected from nearby Las Conchitas deposit, which Mako aims to begin mining by end-2022, CEO Akiba Leisman told BNamericas in November.

“By 2023 we will be operating at 1,000t/d,” Leisman added.

CALIBRE GROWTH

Calibre Mining – Nicaragua’s top gold producer – is forecasting a marginal rise in output for 2022, based on midpoint guidance, at 180,000-190,000oz, compared to 182,755oz last year.

Production at the company’s two Nicaraguan mines, Limón and Libertad, was up from 136,009oz in 2020 mainly due to higher grades, which rose to 3.2g/t gold from 2.7g/t.

“In 2022 we anticipate that grade increase trend to continue. This has to do with the sequence of where we are mining and new ore bodies coming online,” CEO Darren Hall told BNamericas.

While Calibre has not issued longer-term production guidance, output in Nicaragua is expected to increase further in 2023, after the higher-grade Pavón Central deposit begins operations later this year, supplying additional ore to the Libertad mill.

“We should have a full year of production at Pavón Central in 2023 if all goes well with our development plans, and that’s going to lead to the production increase,” Hall added.

The Eastern Borosi project – another high grade asset – is also due to start up in 2H23.

“A lot of this is new ore sources and mine sequencing that will lead to higher production,” Hall said.

HEMCO STABLE

With Calibre and Mako well placed for production growth, Colombia-based Mineros is expecting roughly stable output at its Nicaraguan operations.

The Hemco property is expected to produce 121,000-127,000oz gold, compared to 127,151oz in 2021, with lower output from artisanal mining partially offset by increased output from the Hemco mine.

“Guidance with respect to artisanal production is based on our operating relationship with the artisanal miners, which since Mineros’ purchase of the Hemco property in 2013 has been consistent and predictable,” the company said in a release earlier in February.

LA INDIA PROGRESS

Condor Gold’s La India asset (in picture) is expected to deliver a further bump-up in gold output in 2023-24.

The company expects to complete a feasibility study in Q1, which will be followed by project financing and construction, expected to take 18-24 months, according to information on the company website.

“Condor’s base case is to produce 100,000oz/y gold before materially expanding production,” CEO Mark Child said in an October release.