Chile files four environmental charges against Anglo American mine
The charges could carry a fine of nearly 17 billion pesos ($17.17 million).
Austral Gold (ASX: AGD) (TSXV: AGLD) has provided an updated mineral reserve and resource estimate for its Guanaco-Amancaya operation in Chile. The estimates were prepared by SLR Consulting in accordance with CIM Definitions, National Instrument 43-101 and the Joint Ore Reserves Committee Code.
The Guanaco-Amancaya operation is located 220 kilometres southeast of Antofagasta. It consists of the Guanaco mine and Inesperada satellite deposit, the Amancaya mine, and the Guanaco heap leach pads, also known as the heap reprocessing project.
The latest report by SLR shows Guanaco-Amancaya has proven and probable reserves of 12.1 million tonnes grading 0.84 g/t gold and 4.89 g/t silver, containing 326,000 oz. gold and 1.91 million oz. silver. The Guanaco heap reprocessing material provides the majority of the increase from its previous estimates.
Measured and indicated resources for the Guanaco-Amancaya operation are estimated at 14.9 million tonnes grading 1.03 g/t gold and 5.89 g/t silver, while inferred resources total approximately 2.4 million tonnes grading 1.18 g/t gold and 3.93 g/t silver.
According to SLR’s estimates, the mineral reserves will be able to sustain a mine life of 12 years, with annual average production of 17,400 oz. recovered for gold and 52,800 oz. for silver.
The entire project has an after-tax net present value (at 6.89% discount rate) of $77 million, generating post-tax cash flows (undiscounted) of $102.6 million with all-in sustaining cost (AISC) of $1,050/oz. gold. Capital over the mine life totals $20.9 million, consisting of installation of a new crusher and heap leach pad for heap reprocessing, capitalized waste stripping, and closure costs.
“We are excited at the prospect of continuing to increase shareholder value by extending the mine life of Guanaco-Amancaya. The heap reprocessing project is expected to utilize excess processing capacity to provide a solid long-term basis for mine operations, covering costs and providing a return at current financial inputs,” Austral Gold CEO Stabro Kasaneva said in a news release.
The Guanaco mine was commissioned by Austral in 2010 and began mining in 2011. However, mining at Guanaco was discontinued in February 2020.
The Amancaya project – located 75 km southwest of Guanaco – was acquired by the company in 2014 from Yamana, which retains a 2.25% royalty over its precious metal production. It currently remains in production.
The Guanaco heap reprocessing and Inesperada are new projects that are anticipated to begin operations in 2023. By then, Amancaya’s mineral reserves are expected to be exhausted, while it is anticipated that the Inesperada open pit reserves will be exhausted by the end of 2025.
Reprocessing of the heaps is scheduled to commence in 2023 and continue through to the end of mine life in 2033.
