Mega Precious Metals Pushes Forward with Monument Bay Project
Headquartered in Ontario, Canada, Mega Precious Metals is an exploration company with a pipeline of high quality gold and copper project throughout Canada. The company has a record of delivering rapid resource growth through their focused and low cost approach to exploration and resource development.
The company’s flagship Monument Bay Gold Tungsten Project has been a great example of how the company operates. By focusing on environmental and socio-economic programs with local communities, and finding new and innovative ways to do things, the company is moving forward successfully, no matter the circumstances.
Monument Bay Project
Located northeast of Winnipeg near Manitoba, the Monument Bay Project. The 100 percent-owned property, which was picked up in 2010, consists of high grade gold and tungsten.
“We kick-started the project with the help of the University of Manitoba including professors and students,” says Glen Kuntz, CEO of Mega Precious Metals.
“We brought in a bunch of heavy equipment and determined there was large deposit. From there we started processing and found we had a million ounces in reserve. At first, no one knew about tungsten but the combination of gold and tungsten on average has increased the grade equivalent by 30 percent.”
Earlier this month, the company announced an updated mineral resource estimate for the project with a significant increase in grade and resources. The increases in grade at surface appear to be amenable to open-pit mining, assuming the viability of the project is established by a preliminary economic assessment (PEA) study. Upcoming PEA analysis will further assess the potential to establish economically viable mineral resources of both gold and tungsten can be permitted.
“We’re still in exploration but the next stage of work is to de-risk the project,” says Kuntz. “We still have some environmental work to do and more drilling. It should be ready in the next few years.”
The success of the Monument Bay Project can be contributed to the company’s ability to build strong partnerships.
“We started the project by engaging with Red Sucker First Nation community,” says Kuntz. “Having a partnership with First Nation is a huge component to the success of the project.”
One of the reasons for the project’s success is utilizing local people.
“Sixty percent of our workforce is First Nation. Most of our employees are from Manitoba so it’s a local, home-grown team,” says Kuntz. “They want to see this project move and do well. They’re much more willing to work together which helps create a team environment that is united.”
He adds, “We hire people that want to work here and be here. It’s their attitude and willingness to work here that makes us successful.
Another major advantage for Mega Precious Metals is their relationships with contractors. The company strives to maintain close working relationships with all their contractors, keeping vision and communication transparent.
“Partnerships are like a marriage, it takes a lot of work and a lot of communication,” Kuntz explains. “The goal is to find a company that aligns with the same core values of your business.”
The company’s willingness to build solid partnerships and relationships has helped Mega Precious Metals to continue moving forward with the project.
Mega Precious prides itself on creating value through innovation. It’s been instrumental in de-risking projects and lowering costs and the company is continuously looking to find new ways of doing things.
Helping Precious Metals continue to move forward is its motivation to prove itself. By having the right people in the right places, the company’s problem-solving ability has been crucial to continuing the project even when many people doubted its talent.
“I’m surrounded around smart people,” says Kuntz. “We’ve partnered with the right people and companies that have helped us facilitate the success of this project.”
He adds, “A lot of gold mining companies stopped doing work because the gold prices became quite restrictive. We’ve adapted to the market and we’re making it work for us. We have a unique deposit and it gives us a chance to push on even though gold prices are low.
Finding new solutions to problems is something Mega Precious Metals excels at. The company maintains an optimistic attitude and is continuously looking to find constructive and innovative solutions to problems, no matter the situation.
According to Davis, the company is the first in Manitoba to get a permit for fuel bladders.
“By utilizing fuel bladders we were able to cut our diesel costs significantly. We also wanted to reduce and improve our greenhouse footprint and because fuel drums are very environmentally unstable, we removed 95 percent of them at our work site.”
Kuntz adds, “By doing all this work, it gives us a chance to showcase our creativeness. The various innovations we use have paid for themselves in how we do our business. We’ve dropped our operating costs so it’s paying off big time.”
Along with partnerships and innovation, the success of the company is based on having the right approach. Thanks to the company’s board of directors, Mega Precious Metals has been able to use creative solutions to problems, implementing new and innovative ideas to get the job done.
“I’ve got a really creative board around me that helps gives us direction,” says Kuntz. “Our board members are engaged in the project at different times and I’m very humble and blessed that we have a board willing to have faith in us. Their contribution has been vital for our success.”
Global iron ore production to recover by 5.1% in 2021
Global iron ore production fell by 3% to 2.2bnt in 2020. Global production is expected to grow at a compound annual growth rate (CAGR) of 3.7% to 2,663.4Mt between 2021 to 2025. The key contributors to this grow will be Brazil (6.2%), South Africa (4.1%), Australia (3.2%) and India (2.9%). Key upcoming projects expected to commence operations include South Flank in Australia (2021), Zulti in South Africa (H2 2021), Serrote Da Laje in Brazil (H2 2021) and Gudai-Darri (2022), according to GlobalData, a leading data and analytics company.
Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Declines from Brazil and India were major contributors to the reduced output in 2020. Combined production from these two countries fell from a collective 638.2Mt in 2019 to an estimated 591.1Mt in 2020. The reduced output from the iron ore giant, Vale, was the key factor behind Brazil’s reduced output, while delays in the auctioning of mines in Odisha affected India’s output in 2020.
“Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government, while a speedy recovery in China led to a significant 10.4% increase in the country’s iron ore output.”
Looking ahead, the global iron ore production is expected to increase by 111.3Mt to 2,302.5Mt in 2021. Rio Tinto is expected to produce up to 340Mt of iron ore, while BHP has released production guidance of 245–255Mt, supported by the start of the Samarco project in December, which is expected to produce between 1–2Mt.The company has retained its guidance for Australian mines at 276–286Mt on a 100% basis, due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine.
Bajaj added: “The remaining companies are expected to produce more than 600Mt of iron ore, including FMG, whose production is expected to range between 175–180Mt supported by its Eliwana mine that commenced operations in late December 2020, and Anglo American, which is expecting to produce between 64–67Mt. Vale is expected to resume 40Mt of its production capacity, taking its overall production capacity to 350Mt in 2021, with production guidance of 315-335Mt.”