Spotlight: Top LatAm gold resource estimates

Mining and exploration companies reported a flurry of resource estimates for large Latin American gold deposits in recent months, as firms seek to advance their assets toward production.

Companies reported at least six updated estimates of 1.4Moz-plus gold since May, with aggregate contained metal of over 17Moz, according to figures compiled by BNamericas.

Gold exploration and development activities are underpinned by strong prices of the metal, which has traded around US$1,800/oz this year.

While down from a peak north of US$2,000/oz last year, prices are substantially higher than the US$1,200-1,400/oz range seen from 2014 to mid-2019.

TOP GOLD RESOURCE ESTIMATES

1. Titiribí, Colombia

Gold resources: 5.54Moz

GoldMining’s July updated mineral resource estimate confirmed Titiribi’s status as a significant gold-copper deposit.

Total measured and indicated (M&I) resources contained 5.54Moz gold, with a further 3.16Moz inferred. Average grades were around 0.4g/t.

The estimate also showed 1,061Mlb (481,000t) copper in M&I resources, and 776Mlb inferred.

GoldMining also reported 660,000oz gold in the indicated category and 290,000oz inferred at its La Mina project about 17km away from Titiribi, which CEO Alastair Still said could provide potential synergies.

2. Media Luna, Mexico

Gold resources: 3.43Moz

Torex Gold released an updated resource estimate for its US$496mn Media Luna project in June, which reflected the upgrading of 8.3Mt of inferred resource material to the indicated category.

Gold resources in the indicated category totaled 2.15Moz, up from 1.32Moz in the previous estimate, at end-2019.

Gold in the inferred category was 1.28Moz, down from 2.68Moz.

The update also showed 492Mlb copper in the indicated category, and 431Mlb inferred, compared to 322Mlb and 686Mlb in the earlier estimate.

Torex aims to upgrade additional resources to the indicated category in the 2021 infill drilling program, for inclusion in a feasibility study planned for 1Q22.

3. Cerro Blanco, Guatemala

Gold resources: 3.09Moz

Bluestone Resources posted an updated resource estimate for Cerro Blanco in July, which will form the basis of a feasibility study which is currently underway.

The estimate showed M&I resources containing 3.09Moz gold, an increase of 142,000oz from the previous estimate, with average grades of 1.5g/t.

Measured resources were up 88% at 2.38Moz.

“Cerro Blanco is arguably one of the highest grade undeveloped gold projects globally and is in the pipeline as the next big development project for the Lundin Group,” CEO Jack Lundin said.

4. Candelones, Dominican Republic

Gold resources: 2.26Moz

Unigold filed an updated resource estimate for its Candelones project in the Dominican Republic in May, as the company pushes the asset toward production.

Candelones forms part of Unigold’s Neita concessions.

The estimate showed 1.16Moz gold in measured and indicated resources and 1.10Moz in the inferred category.

The bulk of the gold was in sulfide ore. Oxide gold resources, which form the basis of a proposed starter oxide project, were 91,000oz M&I and 36,000oz inferred.

“The delivery of this sulfide resource, in conjunction with the recent delivery of a PEA [preliminary economic assessment] for our starter oxide project, fulfils a key step in our strategy to become a producer in the Dominican Republic,” CEO Joe Hamilton said at the time.

The estimate will be used to inform drilling aimed at converting more inferred mineralization to the M&I category, it added.

5. Taguas, Argentina

Gold resources: 1.50Moz

Orvana Minerals updated the mineral resource estimate for Taguas in July, two months after acquiring the San Juan province asset.

The company plans to complete an updated PEA later in 2021.

The estimate showed 1.50Moz gold in the inferred resource category, along with 40.5Moz silver and 324Mlb copper.

Grades were 0.35g/t gold, 9.42g/t silver and 0.11% copper.

Resources include 686,000oz in oxide ore, which will be prioritized for development, the company said.

The estimate established Taguas as the foundation of a new operation for the company, CEO Juan Gavidia said.

6. São Jorge, Brazil.

Gold resources: 1.43Moz

In addition to Titiribi in Colombia, GoldMining posted an updated resource estimate for São Jorge in Brazil’s Pará state in June, results of which prompted the company to launch further studies.

The estimate showed 711,800oz gold in the indicated category and 716,800oz inferred, at average grades of 1.55g/t and 1.27g/t, respectively.

“Building upon this solid foundation, the company has launched a PEA and plans to initiate further work with the goal to upgrade and expand resources and evaluate underground mineral resource potential beneath the current open pit model at São Jorge,” CEO Alastair Still said.