Orogen Gold Ready to Begin 3,000-Metre Drill Programme at Armenian Mutsk Project
Orogen Gold has announced the mobilisation of a drill rig to commence its 2014 diamond drilling programme at its Mutsk gold project in Armenia.
The UK public company is targeting extensions of previous gold intercepts and several large newly discovered geophysical anomalies in a plan involving a minimum of 3,000 metres of drilling.
Ed Slowey, Chief Executive of Orogen, commented: "Following on from our encouraging diamond drilling campaign in 2013 and recent geophysics programme which has generated several strong new targets within the permit area, we are pleased to announce the mobilisation of a rig to commence the 2014 follow-on drilling programme at Mutsk. We anticipate an active news flow from the property as work progresses."
The Mutsk Project is located in southern Armenia at about 2,000m elevation and is three hours' drive from the capital Yerevan. Orogen has an exclusive agreement with Georaid CJSC to earn an 80 percent interest in the property by spending a total of US$2.5m by the end of August 2016.
The project was optioned by the exploration experts early in 2013 to follow-up reports of a new epithermal discovery within an established gold district.
It also has interest in exploring for gold in Serbia, at Deli Jovan, the historic high-grade gold mining camp which was last in production prior to World War II and significantly under-explored since.
More on the Armenian project can be found at: http://www.orogengold.com/projects/mutsk-armenia/
Low carbon world needs $1.7trn in mining investment
According to a new report from consultancy Wood Mackenzie, mining companies need to invest nearly $1.7trn in the next 15 years to help supply enough copper, cobalt, nickel and other metals needed for the shift to a low carbon world.
Cutting carbon emissions
The United States, Britain, Japan, Canada and others raised their targets on cutting carbon emissions to halt global warming at a summit in April hosted by US President Joe Biden.
Meeting those targets will need large-scale deployment of electric vehicles, storage for power generated from renewables and electricity transmission, all of which require industrial materials, such as lightweight aluminium and metals used in batteries such as cobalt and lithium.
Wood Mackenzie analyst Julian Kettle calculated miners needed to invest about $1.7trn during the next 15 years to “deliver a two-degree pathway - where the rise in global temperatures since pre-industrial times is limited to 2°C”.
“At an industry level, there seems to be reticence around investing sufficient capital to develop future supply at the pace and scale demanded by the energy transition (ET),” he said.
Mining firms are wary of making heavy investments after their experience of the last decade when they invested in new capacity just as demand peaked, leading to a collapse in prices and revenues. They also need to please investors, who are unlikely to want to see dividends diverted to capital spending.
Rising demands of investors related environment, social and governance (ESG) issues further add to the challenge.
Australia, Canada and Western Europe carry a low ESG risk but some of the best resources are in high-risk areas, such as Democratic Republic of Congo, which sits on about half the world’s cobalt reserves according to the U.S. Geological Survey. “Given the need to meet tough decarbonisation and ESG targets, Western governments, lenders, investors and consumers will need to get comfortable operating in jurisdictions where ESG issues are more complex,” Kettle said.
Kettle said government support was needed to help miners comply with ESG issues to ensure production from high-risk areas was conducted in an acceptable way to consumers.
“Then, and only then, will the West be able to secure sufficient volumes of the raw materials needed to pursue the energy transition in the timescales envisaged.”