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Monday, January 18, 2010
Today's News Headlines
* Codelco presents EIA for Chuquicamata underground project - Chile
* Junior roundup: Apogee, Int'l Northair, Zincore, Pacific Rim, Pediment, Colombian Mines, Brazil Potash - Regional
* Vale in talks with Bunge for fertilizers assets acquisition - Brazil
* Mining claim requests sink 46.5% in 2009 - Peru
* Baja updates El Boleo's economics - Mexico
* Kinross Gold expects to produce 2.2Moz this year - Brazil, Chile
* SQM plan to grow lithium output by 20% blocked - Report - Chile
* IN BRIEF G-Mex could be hiring workers for Cananea - Report - Mexico
* IN BRIEF Minera Carola union rejects pay offer - Chile
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* Codelco presents EIA for Chuquicamata underground project - Chile
Chile's state copper producer Codelco presented an EIA to environmental authorities for a project to configure block caving for its plan to convert the Chuquicamata open-pit mine into an underground operation.
As has been previously reported by BNamericas, Codelco intends to start mining underground at Chuquicamata in about 2018 and has already commissioned the Hatch firm to carry out an US$83mn feasibility study on the project.
Converting Chuquicamata into an underground mine with 340,000t/y output will call for US$2.0bn in investment.
The world's largest copper producer, Codelco put out 1.21Mt in the first three quarters of last year, of which the Codelco Norte division - which includes Chuquicamata - contributed 613,000t.
By Business News Americas staff reporters
* Junior roundup: Apogee, Int'l Northair, Zincore, Pacific Rim, Pediment, Colombian Mines, Brazil Potash - Regional
Toronto's Apogee Minerals (TSX-V: APE) reported it has awarded a contract for diamond drilling at its Pulacayo deposit in southern Bolivia to La Paz-based Compañía Sondeos Fujita, which previously carried out a successful 20,000m program at the deposit.
The deal is initially for a minimum of 4,000m and 10 holes and aims to expand the high-grade portion of the current mineral resource to the east. A scoping study based on current resources is due for completion during Q1.
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Vancouver-based International Northair Mines (TSX-V: INM) plans to begin the first drill testing of the La Cigarra silver project in Mexico during the first quarter, and has requested bids from three contractors for a minimum 1,000m RC program, the company said in a statement.
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Vancouverite Zincore Metals (TSX: ZNC) reported it has entered an option agreement to earn 100% of compatriot Pembrook Mining's Cariboo and Sajapampa zinc-lead properties in Canada and Peru, respectively.
The Sajapampa property covers 6,000ha and sits 200km southeast of Lima. Surface exploration by Pembrook in 2007 showed grades of up to 41.1% zinc and 30.0% lead, Zincore said in a statement.
Exploration at the Peru property in 2010 will include geological mapping and sampling, followed by geophysical surveys and drilling. The deal says Zincore must spend Cdn$875,815 (US$850,589) on exploration in the first year between the properties and issue 5mn shares over three years. Pembrook will retain a 2% NSR, which Zincore can buy back.
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Vancouver-based Pacific Rim Mining (TSX: PMU) has closed a private placement of 11.8mn units for Cdn$2.36mn, the company said in a statement.
The company has the El Dorado gold project and grassroots exploration properties in El Salvador.
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Vancouver's Pediment Gold (TSX: PEZ) said it is beginning an 11,000m drilling program at its San Antonio gold project in Mexico's Baja California Sur, aimed at identifying and exploring new targets and further studying the existing gold zones near Planes and Colinas.
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Channel sampling at Vancouver-based Colombian Mines' (TSX-V: CMJ) 9,000ha El Dovio project in Colombia has returned 9.29g/t gold, 54.3g/t silver and 10.3% copper over roughly 7.0m at the Sábana Blanca area, the company reported.
Composite samples of stockpiled mineralization from historic mining showed 25g/t gold, 60g/t silver, 11.5% copper and 2.8% zinc, Colombian Mines said, adding it plans to reopen the historic Sábana Blanca mine workings for sampling, and carry out property-wide mapping, geochemistry and geophysical surveys.
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Privately owned, Belo Horizonte-based Brazil Potash has begun drilling at its property in Amazonas state with two diamond drill rigs, the company reported.
The aim is to establish an NI 43-101 compliant resource estimate.
By Laura Superneau
Business News Americas
* Vale in talks with Bunge for fertilizers assets acquisition - Brazil
Brazilian mining major Vale (NYSE: VALE) is in talks with US agribusiness and food company Bunge (NYSE: BG) for the acquisition of the latter's fertilizer assets in Brazil, including the 42.3% stake Bunge holds in Brazilian fertilizer producer Fosfertil, Vale said in a filing with the São Paulo Bovespa stock exchange.
The deal is estimated to be worth up to US$3.8bn, Vale said.
Assets include phosphate rock reserves and production units of phosphorus and nitrogen-based fertilizer intermediates.
Vale added negotiations may or may not result in the acquisition of Fosfertil.
Rio de Janeiro-based Vale is the world's largest iron ore miner and has assets in other minerals and metals, as well as logistics.
By Business News Americas staff reporters
* Mining claim requests sink 46.5% in 2009 - Peru
Peruvian geology, mining and metallurgy institute Ingemmet received 5,235 mining claim applications in 2009, down 46.5% from 9,793 applications in 2008 as the global economic crisis wilted mining stocks and financing options.
In terms of area, 2009 requests covered 2.34Mha compared to 4.93Mha the year before, the Ingemmet figures show. The 2009 figures were also lower than those recorded for 2006 and 2007, but surpassed the 5,052 requests over 2.25Mha made in 2005.
In December 2009, requests totaled just 290, the second lowest of the year after June's 281 and down 16.2% year-on-year. However, looking back at 2005-08, December was also the month of fewest applications submitted every year.
Peru captured 5% of global exploration spending of US$12.6bn last year, according to the Halifax-based Metals Economics Group, which has estimated that 2009 budgets sank to US$8.4bn.
By Business News Americas staff reporters
* Baja updates El Boleo's economics - Mexico
Vancouver-based Baja Mining (TSX: BAJ) has updated the economics for its 70%-owned El Boleo copper project in Mexico's Baja California Sur state to include capex of US$889mn for annual output of 56,697t copper cathode, 1,708t cobalt cathode and 25,364t zinc sulfate monohydrate for the first six years of mine life.
The project has a resource of 265Mt grading 1.50% copper equivalent in measured and indicated resources and 159Mt at 1.15% in the inferred category.
El Boleo has an after-tax internal rate of return of 25.6% using the guidelines of the US Securities and Exchange Commission (SEC) or 27.9% at present market prices, the company said.
El Boleo's net present value at an 8% discount rate is US$1.31bn using SEC guidelines or US$1.47bn at market values.
"This update now provides a strong foundation for completing construction financing and recommencing construction of the mine and processing facility in order to move to production as soon as possible," Baja CEO John Greenslate said.
By Business News Americas staff reporters
* Kinross Gold expects to produce 2.2Moz this year - Brazil, Chile
Toronto-based Kinross Gold (TSX: K, NYSE: KGC) has issued a preliminary output guidance for 2009 and 2010 of 2.23Moz gold equivalent and 2.2Moz respectively. Both estimates are in line with previously stated guidance, the company said in a statement Friday.
"As gold demand surged and prices hit record levels, Kinross delivered its highest-ever quarterly output in the fourth quarter of 2009, and expects to produce a record 2.23Moz equivalent for the full-year 2009, a 21% increase over 2008," CEO Tye Burt said.
Costs for last year are expected to have averaged US$435-450/oz of gold equivalent and are forecast at US$460-490/oz for 2010.
By country, in 2009 gold equivalent production from Brazil is expected to have been 430,000oz, Chile 465,000oz, Russia 690,000oz and the US 650,000oz.
As for capital expenditures this year, Kinross said it aims to spend about US$550mn, of which US$225mn will be for mine development, US$90mn for a new ball mill at the Paracatú mine in Brazil and US$48mn for new projects, the company said.
By Business News Americas staff reporters
* SQM plan to grow lithium output by 20% blocked - Report - Chile
Chile's nuclear energy commission has blocked an initiative by local non-metallic miner SQM (LSE: SQM) to increase by 20% its current 40,000t/y lithium output, according to a report by Santiago daily El Mercurio.
The commission rejected the request because the company did not calculate the amount of reserves that would need to be extracted from its deposit in the Atacama salt flat in order to carry out the expansion, along with the tonnage that would need to be returned to the salar to guarantee its sustained existence, according to the report.
Chile's lithium production is regulated by the nation's nuclear energy commission.
SQM, the country's largest non-metallic miner, produces about 30% of the world's current lithium supply. The company also puts out iodine, potassium and other non-metallic minerals.
By Business News Americas staff reporters
* IN BRIEF G-Mex could be hiring workers for Cananea - Report - Mexico
Mexico's national mining union has received information that Grupo México has been hiring workers in Sonora state to send to its Cananea copper mine, which has been halted for about 2.5 years due to a strike, according to a report by local paper El Semanario.
If the company is indeed hiring workers with the aim of replacing ones on strike it would be a violation of a legally approved work stoppage, according to the report.
By Business News Americas staff reporters
* IN BRIEF Minera Carola union rejects pay offer - Chile
Unionized workers at privately owned Chilean midscale copper mine Minera Carola have rejected management's latest pay offer during negotiations for renewal of labor contracts, according to a report by local daily Diario de Chañarcillo.
By Business News Americas staff reporters
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In-deph interview
* Recently in production and on its way towards growth
Robert Quartermain (part II)
CEO
Silver Standard
http://www.bnamericas.com/interviews/mining/Robert_Quartermain_,part_II,_,Silver_Standard,/170324206
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Main companies covered in today's news
* Fertilizantes Fosfatados S.A.
http://www.bnamericas.com/company-profile/en/Fertilizantes_Fosfatados_S,A,-Fosfertil/170324206
* Comisión Chilena del Cobre
http://www.bnamericas.com/company-profile/en/Comision_Chilena_del_Cobre-Cochilco/170324206
* International Northair Mines Ltd.
http://www.bnamericas.com/company-profile/en/International_Northair_Mines_Ltd,-International_Northair_Mines/170324206
* Colombian Mines Corporation
http://www.bnamericas.com/company-profile/en/Colombian_Mines_Corporation-Colombian_Mines/170324206
* Excellon Resources Inc.
http://www.bnamericas.com/company-profile/en/Excellon_Resources_Inc,-Excellon_Resources/170324206
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