First Majestic discovers gold-silver veins at Ermitaño in Mexico
Crews discovered the Navidad system during exploration to test the west side of the Ermitaño deposit at the 1,000-sq.-km Santa Elena site in Sonora.
Agnico Eagle Mines (TSX, NYSE: AEM) and Teck Resources (TSX: TECK.A, TECK.B, NYSE: TECK) announced Thursday that the previously announced joint venture to advance the San Nicolás copper-zinc development project has closed.
Teck and Agnico Eagle have inked a joint venture shareholders agreement whereby Agnico Eagle, through a wholly-owned Mexican subsidiary, will take a 50% stake in Minas de San Nicolás (MSN) for $580 million. Teck and Agnico Eagle are now 50/50 joint venture partners at San Nicolás, working together to advance permitting and development of the project in the state of Zacatecas.
Two of Canada’s biggest mining companies teamed up last year in Mexico at San Nicolás — one of the country’s largest undeveloped volcanic-hosted massive sulphide deposits and among the largest globally.
Teck estimated in 2021 that San Nicolás contains proven and probable reserves of 105.2 million tonnes grading 1.12% copper, 1.48% zinc, 0.4 gram gold per tonne and 22 grams silver per tonne, or more than 2% copper equivalent.
Teck completed a prefeasibility study in March 2021 on San Nicolás, which contemplated an open-pit, truck and shovel, processing and flotation operation. The study estimated first production in 2026, a mine life of 15 years, and, during the first five years, annual production of 63,000 tonnes of copper and 147,000 tonnes of zinc in concentrate.
Average life of mine head grades, the study found, would come in at 1.13% copper and 1.49% zinc, and average C1 operating costs were pegged at 16¢ per lb. copper during the first five years of production and 44¢ per lb. over the life of mine, net of byproduct credits.
Development capital costs were forecast to run to about $842 million with a 2.6-year payback period. At $3.50 per lb. copper and $1.15 per lb. zinc, the study estimated an after-tax internal rate of return of 33%.
The companies are planning to submit an environmental impact assessment and permit application for San Nicolás in the first half of 2023 and are targeting completion of a feasibility study in early 2024.
