Red Mountain Mining Strikes Gold at South West Breccia
High-grade gold produced from the South West Breccia (SWB) resource drilling is predicted to firm up Red Mountain Mining's (ASX: RMX) shares. The SWB is a component of the Lobo Project carried out by Red Mountain as part of the larger Batangas Gold Project based in the Philippines.
The SWB drilling resource statistics are as follows: Metallurgical hole intersects: 6.7 metres at 11.6 g/t gold; and 18 metres at 6.85 g/t gold, including 6 metres at 11.5g/t gold. Drilling below current pit design intersects: 6 metres at 7.16g/t gold, including 3 metres at 11.5g/t gold. (All intersections are downhole widths). As these were just the results from preliminary drilling, ASX: RMX investors are understandably eager for what will be produced from deeper drillholes.
The SWB shoot hosts an Indicated and Inferred 194,000 tonnes at 7.2g/t gold for 45,000 ounces of gold. This includes an Indicated Resource of 178,000 tonnes at 7.4g/t gold for 42,000 ounces and an Inferred Resource of 16,000 tonnes at 5.3g/t gold for 3,000 ounces.
“These drilling results are encouraging because they indicate continuity of the high grade resource below the current pit design. Further drilling, in progress, may lead to the location of deeper extensions of this high grade zone,” says Managing Director Jon Dugdale.
Exploration success here will have an even greater effect on the increasing momentum behind the resource upgrade case at SWB, providing an enhancement to the initial Scoping Study economics. One of Red Mountain’s most recent scoping studies produced a low pre-production capital cost estimate of approximately $16.7 million. This was paired with a fetching 70 percent IRR. The longevity of the mine revenue is forecasted to produce A$134 million for Batangas. This revenue is estimated over the initial 4.5-year mine life on production of 90,000 ounces of gold. Net cash flow is estimated at $40 million. Payback is anticipated in 1.2 years. Average C3 are A$1050 per ounce while C1 cash costs are about A$769 per ounce.
Anglo American: FutureSmart Mining
Anglo American’s approach to technology, digitalisation and sustainability is changing the nature of the way the company mines. These are the step-change innovations that will transform the nature of mining – how the company sources, mines, processes, moves and markets its products – and how its stakeholders experience that business. Anglo American is transforming its physical and societal footprint with FutureSmart Mining.
“FutureSmart Mining is our innovation-led approach to sustainable mining,” Anglo American’s Tom McCulley told Mining Gllobal. In his role as CEO for Anglo American Peru & Group Head of Projects he has overseen investment of more than $5bn at the company’s Quellaveco copper project in Peru.
“These are the step-change innovations that will transform the nature of mining – how we source, mine, process, move and market our products – and how our stakeholders experience our business. It’s about transforming our physical and societal footprint.”
Anglo is undertaking a feasibility study to assess the possibility of rolling out one of its FutureSmart technologies, Coarse Particle Recovery (CPR), at Quellaveco. “CPR crushes particles to 2.5 times larger than normal, reducing energy consumption and mill time, leading to a 20% increase in throughput and 85% water recovery - a key issue in Peru given the concerns around water scarcity,” says McCulley.
“By allowing water to release from the much coarser particles, CPR will reduce the risks associated with wet tailings and ultimately help eliminate them altogether. When combined with low cost additives, it is possible to dewater residual waste and produce dry stackable tailings. This technology remains a focus area for us as water sent to tailings facilities often represents the largest water loss at a mine.”
Quellaveco is going to be the first mine to run the FutureSmart operating model from day one. Anglo’s idea is to build a stable base on which it can layer new technologies, CPR being one of them.
“We will also be a fully digital mine, which brings us future benefits in terms of understanding and applying changes in real time,” adds McCulley. “Our trucks and our drills will be automation-ready. We have taken the approach that, when we decide to move into an autonomous operation, no jobs will be lost, but the nature of some people’s jobs will have to change.”
FutureSmart is a blend of technology and sustainability,” said McCulley in an interview with Global Business Reports. “If you go back to the vision and design of Quellaveco, it has really been focused on the long-term sustainability of the mine through effective use of things like water, energy and the environment. Quellaveco has been focused on technology such as automation, with digital and analytical tools all coming together. We will be looking at future technologies to bolt on as we go to ensure that we are optimizing the sustainable use of resources and remaining cost-effective.”
Anglo American’s Quellaveco copper project in Peru has created 15,000 jobs during construction and approximately 2,500 jobs are planned for operations, increasing Peru’s copper production by a forecast 300,000 tonnes per year. The mine’s first copper production is expected in 2022. To learn more about Anglo American's Quellaveco copper project read our feature here.