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Thursday, January 14, 2010
Today's News Headlines
* Century ramping up San Juan in 2010 - Peru
* Mining regulator starts operations - Ecuador
* Junior roundup: Ventana, Duran, Brazauro, Canadian Shield, Quaterra - Regional
* Investment in Salta mining hit US$75mn in 2009 - Argentina
* Endeavour Silver raises output 11% in 2009 - Mexico
* IMZ wraps up Ventura takeover - Peru
* Esperanza unveils new drilling results from Cerro Jumil - Mexico
* Codelco to invest US$2.3bn in growth this year - Chile
* Codelco's Gaby performed well in 2009, says general manager - Chile
* Cosayach workers block access to Cala Cala plant to demand wage raises - Chile
* IN BRIEF Sonami meets with mining associations from regions II-VI - Chile
* IN BRIEF Anglo American, Aguas Antofagasta aim to settle dispute through arbitration - Chile
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* Century ramping up San Juan in 2010 - Peru
US-based Century Mining (TSX-V: CMM) aims to produce 19,000oz of gold this year at its San Juan mine in Peru, starting a gradual expansion process to a rate of 30,000oz/y in 2012, CEO Margaret Kent said Wednesday.
"We are going to be growing Peru little by little, with about 19,000oz of production in 2010, 22,000-23,000oz in 2011, and then we should bump to about 30,000oz in 2012," Kent said during a conference call presentation.
San Juan produced some 18,000oz last year.
The company is also working to start producing in April at its Lamaque gold mine in Quebec, where 2010 guidance is 40,000-50,000oz. Lamaque is designed to ramp up to 100,000-110,000oz/y by 2013.
"We are hopeful that as we get Lamaque started up and we start cash flowing that we are going to be able to inject some serious money into exploration in Peru," said Kent.
Century aims to bring a power line to San Juan and eliminate diesel generation with a view to reducing cash costs, which for this year are expected to be US$550-570/oz.
"We would probably tie that in with a jump to 30,000oz/y," the CEO said, adding the cost of the power line is still under evaluation but seen at US$6mn-10mn.
Exploration targets at San Juan include the Erika copper-gold-silver porphyry system, which Century geologists believe holds more than 500Mt of ore; the Veta Clara, Santa Clarita and Lily-La Huaca gold veins similar to the veins now being mined; and the Golden Champune stockwork area.
"We've got some wonderful exploration potential," Kent said.
By Laura Superneau
Business News Americas
* Mining regulator starts operations - Ecuador
Ecuadorian mining regulator ARCM has started operations under the country's new mining code, an official from the country's non-renewable natural resources ministry told BNamericas.
"The agency will be in charge of auditing and regulating the mining activities that the Empresa Nacional Minera [national mining company] and other sector companies carry out," the official said.
ARCM supervision, which includes social responsibility, regulating concessions and a mining area registry, will also apply to small and medium-sized companies in Ecuador.
The new organization will be responsible for making sure the new mining law is properly applied and providing rules and technical plans for sector development.
By Harvey Beltrán
Business News Americas
* Junior roundup: Ventana, Duran, Brazauro, Canadian Shield, Quaterra - Regional
Vancouver's Ventana Gold (TSX: VEN) reported the results of 14 drill holes on the La Bodega gold project in Colombia, including 93.5m grading 15.8g/t gold at the La Mascota zone.
The La Mascota infill drilling consisted of nine holes and also yielded 72.0m grading 9.7g/t gold and 14.0m of 20.5g/t gold, Ventana said in a statement. The company also drilled three exploration holes at the Coloro property, one at the El Cuatro property and one at the Las Mercedes zone, all of which intersected gold mineralization.
All holes also returned silver and copper mineralization.
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Toronto-based Duran Ventures (TSX-V: DRV) reported that drilling has resumed at its Aguila copper project in Peru, with the latest hole returning 444m grading 0.36% copper and 0.2% molybdenum, including 224m of 0.51% copper and 0.02% molybdenum.
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Houston-based Brazauro Resources (TSX-V: BZO) has signed an option agreement with a private individual to acquire a 7,404ha area adjacent to its Piranhas gold property in northern Brazil, the company said in a statement.
The area covers 149 applications for artisan mining licenses, and a request has been put in to convert these into a single exploration license. The deal will increase Brazauro's land package at Piranhas to 34,533ha.
The company will make scaled payments totaling 2.50mn reais (US$1.43mn) over three years, and the individual will retain a 0.5% NSR.
***
Torontonian Canadian Shield Resources (TSX-V: EXP) reported 2010 plans for its gold properties in Peru include drilling to expand mineralization and an updated technical report at Colpayoc.
The company also aims to complete a technical report, additional geological studies and modeling at the Estrella property. Further plans include seeking alliances for four projects, Canadian Shield said in a statement.
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Vancouver-based Quaterra Resources (TSX-V: QTA) has finalized an option agreement with Mexican company La Cuesta International to acquire a 100% interest in the Santo Domingo copper-gold prospect in Durango state.
Quaterra's near term plans include geological mapping and geophysical surveys to define drill targets, the Canadian said in a statement. The company will pay US$7.5mn in staged payments and issue 100,000 shares, and La Cuesta will retain a 1% NSR.
By Business News Americas staff reporters
* Investment in Salta mining hit US$75mn in 2009 - Argentina
The mining ministry of northwest Argentina's Salta province announced that investments in the sector, in both exploration and developing projects, reached US$75mn in 2009.
The ministry also said that indirect and direct sector employment increased 17% in 2009.
Exports were up 5.5% in volume to 97,991t but dropped 19.1% in value because of the fall in international prices, the ministry stated without providing further details.
The ministry also reported that it received 853 environmental impact reports in 2009 and 597 of these had been processed and released.
Salta province is said to contain deposits of lithium, uranium and gold.
The mining and exploration companies that operate in Salta include Mansfield Minerals (TSX-V: MDR), Cardero Resource (TSX: CDU), Hochschild Mining (LSE: HOC), Silver Standard (TSX: SSO), Antares Minerals (TSX-V: ANM) and Rio Tinto (LSE: RIO).
By Business News Americas staff reporters
* Endeavour Silver raises output 11% in 2009 - Mexico
Vancouver-based Endeavour Silver (TSX: EDR, Amex: EXK) increased its output 11% in 2009 to 2.6Moz silver while gold production rose 66% to 13,298oz, the company reported in a statement.
In Q4 the company produced 779,345oz of silver, 12% higher than in Q3 and a new record. Gold output rose 90% from Q3 to 4,591oz, Endeavour said.
Both in the full year and in Q4 the rise in output was largely due to recent expansions at the company's Guanajuato and Guanacevi mines, in Mexico's Guanajuato and Durango states respectively.
"We are happy to announce that Endeavour delivered its fifth consecutive year of production growth in 2009," said CEO Bradford Cooke. "We also succeeded in driving our cash costs of silver production down to almost half of where they were 18 months ago. Our mine operations teams are to be congratulated for doing a great job in 2009, notwithstanding the difficult start to the year thanks to the global financial crisis and various operating issues that resulted in several days of lost production."
By Business News Americas staff reporters
* IMZ wraps up Ventura takeover - Peru
Scottsdale-based International Minerals (TSX: IMZ) has wrapped up its acquisition of fellow Arizona company Ventura Gold (TSX-V: VGO) by way of a statutory plan of arrangement, the former said in a statement.
IMZ has taken up 100% of Ventura's outstanding common shares at a price of 10 IMZ shares for each Ventura share, issuing 13.7mn shares in the transaction.
IMZ shares were trading at Cdn$4.24 on Wednesday morning, which would mean a deal price of some Cdn$58.3mn (US$56.2mn).
Former Ventura shareholders now hold some 12.9% of IMZ's nearly 107mn shares outstanding. Another 1.26mn IMZ common shares are issuable to Ventura shareholders through purchase warrants and stock options.
The acquisition gives IMZ a 51% stake in the Inmaculada gold-silver project in southern Peru and an option to increase the stake to 70%. IMZ aims to finish a feasibility study for the project in mid-2011.
By Business News Americas staff reporters
* Esperanza unveils new drilling results from Cerro Jumil - Mexico
Vancouver-based Esperanza Silver (TSX-V: EPZ) has reported new drill results from its Cerro Jumil project in Mexico including 25.5m grading 1.34g/t gold, 22.5m of 1.09g/t, 24m of 1.09g/t and 15.0m of 1.37g/t.
"These are very positive results as the drill holes are largely contained within the open pit defined by our recent preliminary economic assessment. The drilling identifies new gold mineralization much of which falls in areas previously categorized as waste or inferred resource. This should result in not only additional resource ounces but a lowered strip ratio," Esperanza CEO Bill Pincus said in a statement.
In September, Esperanza released the results of the preliminary economic assessment of Cerro Jumil, forecasting US$72.2mn startup capex for 52,000oz/y gold for 7.6 years.
The company estimated the mine's cash costs would average US$418/oz, using a conventional open-pit heap leach operation.
By Business News Americas staff reporters
* Codelco to invest US$2.3bn in growth this year - Chile
Chile's state copper company Codelco aims to carry out US$2.30bn in investments this year, versus US$2.05bn in 2009, the company confirmed to BNamericas Wednesday.
Of this year's amount, US$1.37bn will go towards advancing "structural" projects aimed at increasing the company's output to 2Mt/y of copper. During the first three quarters of 2009 Codelco produced 1.21Mt from its fully owned mines.
In order to finance its portfolio of projects, Codelco said it might seek funding internationally.
The investments include spending on feasibility studies to convert the Chuquicamata open-pit mine in northern region II into an underground operation, a new mine in the same region to be called Ministro Hales, the establishment of a new underground level at the El Teniente mine in central region VI and the second phase of expansions at the Andina division in central region V.
Codelco is the world's largest producer of copper.
By Business News Americas staff reporters
* Codelco's Gaby performed well in 2009, says general manager - Chile
The Gaby mine owned by Chilean state copper producer Codelco achieved positive results in 2009, the mine's general manager Eliseo Pérez Delard told local daily El Mercurio de Calama.
Pérez declined to provide details about Gaby's production, saying Codelco CEO José Pablo Arellano would do so formally during the company's next quarterly results conference.
Commissioned in May 2008, Gaby is Codelco's newest mine and last year was expected to produce 150,000t of copper cathode. The mine is also in the process of being expanded to about 170,000t/y.
During the first three quarters of 2009 Gaby, located in northern region II, produced 110,000t out of the company's total 1.21Mt during the period from its fully owned mines.
By Business News Americas staff reporters
* Cosayach workers block access to Cala Cala plant to demand wage raises - Chile
Workers belonging to union 2 at Chilean non-metallic miner Cosayach have blocked access to the company's Cala Cala plant in a protest related to pay negotiations, according to a report by local paper La Estrella de Iquique.
The conflict began nearly a month ago when 183 workers from union 2 started negotiations with the company to obtain increases in pay and benefits, according to the report.
Cosayach, a privately owned company not listed on a stock market, produces all non-metallic minerals including iodine.
By Business News Americas staff reporters
* IN BRIEF Sonami meets with mining associations from regions II-VI - Chile
Chile's private miners trade group Sonami met with mining associations from regions II through VI to discuss tariff amounts for this year, according to a statement by Sonami.
During the event, held in the region IV city of La Serena, Sonami president Alberto Salas also gave his projections for global copper and gold markets this year.
Representatives from roughly 50 local producers were present at the event.
By Business News Americas staff reporters
* IN BRIEF Anglo American, Aguas Antofagasta aim to settle dispute through arbitration - Chile
External arbitration has been called for to settle a dispute in Chile between multinational resource group Anglo American (LSE: AAL) and water utility Aguas Antofagasta, owned by the Luksic group that also controls copper producer Antofagasta Minerals.
The arbitration has been requested to settle affairs pending related to a water transport contract dated December 26, 2002, according to a statement by Aguas Antofagasta sent to Chile's securities regulator SVS.
By Business News Americas staff reporters
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In-deph interview
* "We'll have a number of projects on the go in Latin America in 2010"
Robert Quartermain
CEO
Silver Standard
Argentina, Chile, Mexico, Peru
http://www.bnamericas.com/interviews/mining/Robert_Quartermain_,Silver_Standard,/169883951
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Main companies covered in today's news
* Ecometals Limited
http://www.bnamericas.com/company-profile/en/Ecometals_Limited-Ecometals/169883951
* U3O8 Corp
http://www.bnamericas.com/company-profile/en/U3O8_Corp-U3O8_,Canada,/169883951
* Solitario Exploration & Royalty Corp.
http://www.bnamericas.com/company-profile/en/Solitario_Exploration_*_Royalty_Corp,-Solitario_Exploration/169883951
* Hochschild Mining PLC
http://www.bnamericas.com/company-profile/en/Hochschild_Mining_PLC-Hochschild/169883951
* Antares Minerals Inc.
http://www.bnamericas.com/company-profile/en/Antares_Minerals_Inc,-Antares/169883951
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