Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Mineros SA (TSX: MSA) has temporarily suspended all operations at its Nechí Alluvial property due to ongoing protests by groups unassociated with the company against the Colombian government, which have caused disruptions throughout the Bajo Cauca region.
The Medellin-based gold miner said it will resume operations when it can ensure the safety and security of its employees and contractors, adding that an extended suspension of operations may “negatively impact” the company’s ability to meet its production guidance from the Nechí Alluvial project.
The Nechí Alluvial property is comprised of alluvial gold deposits found in the Nechí River lower basin that are predominantly mined through suction and bucket line dredging.
Dredging operations are carried out 24 hours a day, every day, at an extraction rate of 73,400 m³. Planned annual production from mid-2021 until the end of mine life in 2034 is 27 million m³, resulting in an average hourly production of more than 4,000 m³.
A 2021 technical report on Nechí Alluvial shows that the property hosts 376 million m³ in proven and probable mineral reserves at a grade of 109 milligrams per cubic metre, for 1.17 million ounces of contained gold.
