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BARRICK GOLD CORP. FINALIZES ACQUISITION OF HOMESTAKE CAMBIOR INC. TO DEVELOP GROSS ROSEBEL IN SURINAME TVX GOLD INC. TO RESUME OPERATIONS IN GREECE
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Gateway to Discoveries Cordilleran Exploration Roundup 2002 January 2125, 2002 Fairmont Hotel, Vancouver British Columbia, Canada Contact: www.chamberofmines. bc.ca/rdup2002 Investing in African Mining, Indaba 2002 International Investment Conferences February 1214, 2002 Cape Town, South Africa email: johnpanaro@iiconf.com Minerals for the Future @ SME 2002 SME Annual Meeting & Exhibit February 2527, 2002 Phoenix Civic Plaza Phoenix, Arizona email: meetings@smenet.org International Convention, Trade Show & Investors Exchange Prospectors and Developers Association of Canada March 1013, 2002 Metro Toronto Convention Centre Toronto, Canada email: info@pdac.ca
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BARRICK GOLD CORP. FINALIZES ACQUISITION OF HOMESTAKE The end of an era occurred on December 14, 2001 when Barrick Gold Corporation completed the merger with Homestake Mining Company to create the second largest gold mining company in the world after AngloGold. The merger increases Barricks annual production to approximately 5.7 million ounces gold, from a revised mineral reserve base for the combined company, of 84.3 million ounces, with cash gold production costs of US $165 per ounce. The merged company is expected to have a market capitalization of approximately US $9.0 billion. The new company will have additional assets in Australia including a portion of the Superpit at Kalgoorlie, in South America where the Veladero project will be combined with the Pascua-Lama project, and in North America where operations in Nevada will be combined. The merger also enhances Barricks gold sales program, with the inclusion of Homestakes hedge position, and this is expected to generate approximate US $200 million annually in premiums for the merged company. CAMBIOR INC. TO DEVELOP GROSS ROSEBEL IN SURINAME In October 2001, Cambior Inc. announced an agreement to acquire the 50-percent interest in Gross Rosebel owned by Golden Star Resources Ltd. for C$8 million, so that they would control 100 percent of the project. The undeveloped gold property in Suriname in the Guyana Shield has been re-evaluated by Cambior in a recent pre-feasibility study, which examines only the mining and processing of soft rock and transition ore. This new scope of work would provide 3.6 million tonnes per year of ore material for processing from a resource base of 25.2 million tonnes grading 1.7 grams gold per tonne, for an annual production of 170,000 ounces. Mine life is expected to be 7 years for this operation, gold price is calculated at US $300, and production is tentatively scheduled for 2005.
of sulfur dioxide or, potentially, about 4.2 tonnes of sulfuric acid. Traditionally, most of the sulfur dioxidealong with various other airborne pollutantswas discharged to the atmosphere. Growing concerns regarding the deleterious impact on the environment brought about increasingly stringent restrictions on gaseous emissions, such that the sulfur dioxide became either a minor credit (where the gasses are used to make sulfuric acid and there is a market for sulfuric acid) or a serious liability, depending on the location of the pyrometallurgical plant and the nature of the sulfur dioxide bearing gases. It also caused many companies to consider hydrometallurgy as an alternative to pyrometallurgy for treating copper sulfides. Commercial Introduction of Pressure Hydrometallurgy for Base Metal Sulfides The first commercial applications of pressure hydrometallurgy for the treatment of base metal sulfides came onstream in the 1950s. Sherritts nickel refinery at Fort Saskatchewan, Canada, was commissioned in 1954, and employed ammoniacal pressure oxidative leaching for the extraction of nickel, cobalt and copper from a pentlandite-chalcopyrite concentrate. The refinery is still operating today, at a much higher throughput than the original design, on relatively high-grade nickel-cobalt sulfides. Nickel and cobalt are both recovered as high purity metals, copper as a sulfide by-product, and the sulfur is converted to fertilizer-grade ammonium sulfate. The 1950s also saw the first two sulfuric acid pressure oxidative leach-based plants come onstream, both in the United States, for the treatment of cobalt-containing sulfide concentrates. The Garfield Cobalt Refinery (Utah) of the Calera Mining Co. came onstream in 1953, for the treatment of a cobaltite (CoAsS)- chalcopyrite-pyrite concentrate, and the Fredericktown Metals Refinery
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(Missouri) of National Lead Co. commenced operations in 1954, for the treatment of a siegenite ([Co,Ni]3S4) chalcopyrite-pyrite concentrate. Both used an elevated temperature (190 to 245C), elevated pressure-leach process with compressed air as the oxidant, developed by the Chemical Construction Co. (Chemico), primarily for the extraction and recovery of the cobalt. Under the aggressive leach conditions, all of the contained sulfide sulfur was fully oxidized to sulfate. Metals recovery from solution was by hydrogen reduction, developed by Sherritt and Chemico. These plants were partly dependent on various economic concessions, and ceased operation in the late 1950s, due both to economic considerations and shortage of feed supply. Early Process Development on Copper Sulfides Dynatec (and formerly, as Sherritt) has conducted numerous research programs on laboratory, miniplant and pilot-plant scaleseeking to develop economically competitive and environmentally acceptable acid oxidative pressure leach processes for the treatment of copper-iron sulfide ores and concentrates. The major objectives included high recoveries of both copper and precious metals, and conversion of sulfur to the elemental state or, alternatively, its fixation as gypsum. In the 1960s The earliest work, in the early 1960s, was on a chalcocite-pyrite concentrate, containing 23-percent copper, 28-percent iron and 39-percent sulfur. Mineralogically, the concentrate comprised about 29percent chalcocite and 60-percent pyrite, with the pyrite accounting for about 90 percent of the total sulfur. Pyrometallurgical processing would have resulted in the generation of about 3.4 tonnes of sulfur dioxide for each tonne of copper. The hydrometallurgical process involved a mild oxidative pressure leach in dilute sulfuric acid (at between 80 and 105C under 140 to 350 kPa oxygen overpressure). This enabled selective
TVX GOLD INC. TO RESUME OPERATIONS IN GREECE TVX Gold Inc.s Greek subsidiary TVX Hellas has been granted permission to resume mining and milling operations at its Stratoni base metal operation. Since 1995, when TVX acquired the Kassandra mines, it has performed all tasks and acquired all permits in accordance with the stated regulations. However, the company has been prevented from mining in the last 3 weeks by the imposition of a suspension order from the mining inspector, because of lack of permits for the extension of operations at Stratoni, which should have been approved by November 26, 2001. The threatened force majeure has been averted.
INDUSTRY UPDATE
Will the British Columbia Government Eliminate the B.C. Geological Survey Branch?
Since its election in mid 2001, the new British Columbia (BC)
government has been undertaking a Core Services Review to refocus government functions and eliminate non-core activities, so that taxpayer dollars are directed to expanding investment in BC. Within this sphere in the last few weeks, the possibility of the elimination of the British Columbia Geological Survey Branch (BCGSB) over the next 3-year period has been rumored. The BC mining community believes that the BCGSB is not an optional activity, but a very necessary core service to provide geoscience data for the mineral industry in BC. Investors must be able to have access to new mapping and surveys, and to information that will lead to new mineral discoveries, or re-evaluation of mines that were previously closed. Under the previous government, the rich mineral endowment of BC was ignored as many investors took their search overseas to countries where large amounts of money were being expended on rapidly upgrading mineraldatabase inventories to attract foreign investors to their resources (e.g.: Argentina, Chile and Peru). The new BC government has implemented flow-through share tax credits, eliminated provincial sales tax on production machinery, and reduced corporate income and capital taxes for mining in an effort to revitalize the mineral and mining exploration community. However, the new government is also indicating that they will focus on a public-private partnership model. Budget targets have not been released but funding for the BCGSB will no doubt be reduced.
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accelerated the development of more efficient, high intensity pyrometallurgical processes. Developments such as flash smelting and continuous converting enabled a much higher and more efficient capture of sulfur than from the older smelters using reverberatory furnaces, such that many of the environmental concerns and the emission guidelines were readily addressed. Early Commercial Applications of Pressure Hydrometallurgy for Copper Sulfides Only two hydrometallurgical plants reached the commercial, or semicommercial, scale for direct treatment of copper sulfide flotation concentrates in the 1970s, both in the United States. One was Anacondas Arbiter Plant, commissioned in 1974, with a design capacity of 36,000 tonnes/year of cathode. The process was based on the ammoniacal oxidative leaching of a concentrate comprising a mixture of chalcocite, bornite and chalcopyrite, with a significant portion of pyrite. Copper recovery from the ammonia leach liquor was by solvent extraction and electrowinning. The ammonia leach was designed to extract the easily leached copper of chalcocite and bornite (70 to 80 percent of the copper), recover the chalcopyrite (and most of the gold and silver) from the leach residue by flotation for treatment in a smelter, while rejecting pyrite, which accounted for almost 70 percent of the sulfur of the original concentrate. The plant was shut down in 1977, as a result of high maintenance costs, due partly to changes in the mineralogy and also to complications associated with sulfate disposal. The second plant was the chloride based CLEAR Process of Duval, developed for the treatment of chalcopyrite concentrates, which came onstream in 1978. It reached its design capacity of 32,000 tonnes/year of copper and was considered a technical success, although modifications were required to achieve economic viability. The plant, considered by Duval as a demonstration or prototype plant, was also shut down after several years. Although the hydrometallurgical processes developed for the copper-iron-sulfides did not live up to expectations, there were a number of acid pressure leach processesfor simple copper sulfideswhich did achieve commercial success. One of these is at Incos CRED (Copper Refinery Electrowinning Department) plant at Sudbury, Ontario, where the feed material is a precious metals (PM) concentrate containing copper sulfide, resembling chalcocite in composition. The plant, commissioned in 1973, was designed to leach the solids in spent electrolyte at 105C with oxygen, to generate a copper sulfate solution for electrowinning, and a residue containing the PM and elemental sulfur, for further upgrading by organic extraction of the sulfur. Difficulties with the latter operation precipitated a change in the leach conditions, to a sulfuric acid deficient system, for oxidation of the sulfide sulfur to sulfate, and conversion of the copper to a basic copper sulfate salt. The basic salt was then dissolved in spent electrolyte, leaving a high grade PM residue. Dynatec/Sherritt developed acid pressure leach processes for the treatment of
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