Montage Gold Launches Construction of Ivory Coast's Largest Gold Mine with $835 Million Budget

 Montage Gold has officially launched the construction of the largest gold mine in Ivory Coast, a project with an estimated budget of $835 million. This major endeavor, aimed at bringing the Koné gold mine into production by the second quarter of 2027, involves multiple subcontracting companies, although specific details on the Ivorian subcontractors have not yet been disclosed.

Australian engineering firm Lycopodium has been awarded a significant contract worth A$56.7 million (approximately $35.3 million) to manage engineering, procurement, and construction (EPCM) for the processing plant and associated infrastructure at the mine. Lycopodium is set to begin work immediately, as the project moves forward with the goal of commencing production by mid-2027.

The project is expected to have a substantial local impact, with Montage Gold emphasizing the involvement of the local community. The company has hired personnel who were previously trained at the Lycée Technique de Mankono, and there is a dedicated team of 350 people working on the construction.

Syrah Resources Declares Force Majeure at Balama Graphite Mine Amid Civil Unrest in Mozambique

Syrah Resources Declares Force Majeure at Balama Graphite Mine Amid Civil Unrest in Mozambique

Syrah Resources Ltd., an Australian mining company, has declared force majeure at its Balama graphite mine in Mozambique due to escalating civil unrest, leading to significant disruptions in its operations. The announcement triggered a sharp decline in the company’s stock price, with shares falling by as much as 32% before closing down 28% at 19 Australian cents, a steep drop from their November 2022 value of around A$2.62.

The unrest in Mozambique began in early October, following protests against a disputed election, and has led to violent clashes. Over 100 fatalities have been reported, most of them demonstrators who were shot during confrontations with police. In addition to the fatalities, hundreds of people have been injured, and thousands have been arrested. The protests have severely impacted transport routes and the operation of Syrah’s Balama mine, which is a key supplier of graphite, a critical material for electric vehicle (EV) batteries.

Syrah Resources has been unable to maintain the usual operations at the mine due to these disruptions. The company has confirmed that transport to the Balama mine and the operation of its processing plant have been interrupted. As a result, workers have been sent home, and the company has stationed security personnel at the site to ensure the safety of its operations.

The force majeure declaration has also triggered a default on two significant loans the company had secured. In October 2023, Syrah signed a $150 million binding loan agreement with the U.S. International Development Finance Corporation (DFC) to provide long-term capital for its operations at Balama. In addition, the company had secured approximately $98 million from the U.S. Department of Energy (DOE) to build a downstream processing facility in the United States. However, the ongoing unrest has now led to a default on these loans, as the company has been unable to fulfill its obligations due to the disruptions at the mine.

The Balama mine is essential to Syrah’s business, particularly as the company has an agreement with Tesla to supply graphite for EV batteries. The situation is creating uncertainty for Syrah, which faces challenges in meeting its supply commitments and managing its financial stability. As of now, the company is focusing on resolving the disruptions and securing its operations in Mozambique, but the outlook remains uncertain.

Barrick said to seek buyer for Tongon mine as bullion soars

Barrick Gold Corp. is exploring the sale of its Tongon gold mine in Côte d'Ivoire as part of a strategy to offload its aging assets while gold prices are reaching record highs. The mine, which is set to cease operations by 2027 due to declining resources, accounted for approximately 5% of Barrick’s total gold production last year, producing 204,000 ounces. Barrick owns nearly 90% of Tongon, with the remaining shares held by the Côte d'Ivoire government and local investors.

To facilitate the sale, Barrick has partnered with Toronto-Dominion Bank to identify potential buyers and gather bids since late November. Both Barrick and TD have declined to comment on the sale. This move aligns with a trend in the gold mining sector where producers are seeing increased valuations due to record-high gold prices, driven by central-bank buying, geopolitical uncertainties, and interest-rate cuts. Barrick's competitor, Newmont, successfully sold its Akyem mine in Africa for $1 billion to Zijin Mining Group, far exceeding its initial target for asset sales.

Barrick previously looked into selling Tongon in 2019 but did not find a buyer. However, the company has reiterated that Tongon is no longer central to its strategy and sees selling the asset as a way to strengthen its portfolio and reduce costs by over $50 per ounce. Sebastiaan Bock, Barrick’s COO for Africa and the Middle East, mentioned that disposing of Tongon would enhance the quality of the company’s overall asset portfolio.

 TOMRA's XRT Technology Leads to Discovery of 2,492-Carat Diamond at Lucara's Karowe Mine

Lucara Diamond Corp. recently recovered a remarkable 2,492-carat diamond at its Karowe mine in Botswana, marking it as the second-largest diamond ever discovered, after the 3,106.75-carat Cullinan diamond. This extraordinary find, however, is the largest diamond ever recovered directly from run-of-mine ore. The discovery was made possible by TOMRA’s X-Ray Transmission (XRT) technology, which has been integral to the mine's success since its installation in 2017. The XRT system is integrated early in the recovery process, allowing for the extraction of large, high-value diamonds before further processing, which reduces the risk of damage and enhances revenue recovery.

The 2,492-carat diamond adds to a series of record-breaking finds at Karowe, where TOMRA XRT technology has helped recover several of the largest diamonds in history, including the 1,758-carat Sewelô and the 1,109-carat Lesedi La Rona. In fact, TOMRA XRT has contributed to the recovery of 15 of the 23 largest diamonds (over 400 carats) discovered since the technology’s introduction to the diamond industry in 2014. Thirteen of these were found at Karowe, solidifying the mine’s reputation as one of the top producers of exceptional diamonds.

This latest achievement not only underscores TOMRA’s role in transforming diamond recovery but also highlights the company’s ongoing commitment to innovation in mining. The 2,492-carat diamond and other recent discoveries, including a 391.45-carat diamond in Sierra Leone, demonstrate the global reach and effectiveness of TOMRA's XRT technology in revolutionizing the diamond mining industry.

 Shareholders Approve Star Minerals’ Earn-In Agreement for Cobra Uranium Project in   Namibia

Shareholders of ASX-listed Star Minerals have approved the Cobra uranium project earn-in, in the Erongo region of Namibia, at a general meeting held on December 6. Earlier this month, Star announced that it had entered into a binding agreement with Canadian-listed Madison Metals for an earn-in and joint venture to acquire up to 51% of the company holding exploration permit EPL 8531, comprising the Cobra uranium project, which is located in close proximity to the Rössing uranium mine. 

Ground radiometric surveys completed by Madison have identified a continuation of the Area 3 mineralisation. Madison has submitted and obtained approval to drill an initial six drill holes, testing for further uranium mineralised alaskites. “Star is excited following shareholder approval obtained last week, allowing the company to earn into the Cobra uranium project with Madison,” says chairperson Ian Stuart. The exploration team has reviewed drill planning to begin further exploration activities at the project to progress towards resource definition. 

The project has permits in place to drill immediately and the evaluation of the strike potential and twinning some of the existing holes which make up the foreign uranium estimate are expected to form early work programmes at the project, he informs. “Star will liaise closely with Madison’s in-country team to get the first programme under way, subject to completion of the conditions precedent of the earn-in. Star looks forward to updating its shareholders as the transaction progresses,” Stuart says.

Key Details from the Announcement:

• Location: The Cobra Uranium Project is located in the Erongo region of Namibia, near the Rössing Uranium Mine, one of the world's largest and longest-running uranium producers. This strategic location adds significant potential for resource discovery and development.

• Earn-In Agreement: Under the terms of the agreement, Star Minerals will earn into the Cobra Uranium Project by acquiring up to 51% of the project. This move is part of Star's broader strategy to build a uranium-focused portfolio and capitalize on the growing demand for uranium, especially for nuclear energy production.

• Exploration Work: Madison Metals has already completed ground radiometric surveys, which have identified a continuation of the Area 3 mineralization. This provides positive indications of uranium mineralization and potential for further discoveries in the region.

• Initial Drilling Program: Madison Metals has obtained approval for an initial drilling program to test for uranium mineralized alaskites, with plans to drill six holes. The program will help to further assess the potential of the Cobra project and gather more data for resource estimation.

• Star Minerals’ Plans: With shareholder approval secured, Star is poised to begin its exploration activities. The company's exploration team is reviewing drill plans and aims to focus on resource definition, including evaluating the strike potential of the project. They will also look to twin existing drill holes that have contributed to the foreign uranium estimate.

• Progress and Next Steps: Star Minerals aims to initiate its first work program following the completion of the conditions precedent for the earn-in. The company will closely coordinate with Madison’s in-country team to begin exploration activities, with updates expected for shareholders as the project advances.

Strategic Importance:

The Cobra Uranium Project is an exciting opportunity for Star Minerals as it positions itself within the uranium sector, which has been gaining momentum due to the increasing global demand for clean energy, particularly nuclear power. The project’s proximity to the Rössing mine, a long-standing uranium operation, further strengthens its potential, making it an attractive prospect for exploration and development.

Given the global interest in uranium as a clean energy source, this joint venture could serve as a valuable growth opportunity for both Star Minerals and Madison Metals, particularly if the exploration efforts lead to significant discoveries.

Next Steps:

• Drilling: The planned drilling activities will be a key milestone for both companies. Star will likely focus on evaluating the continuity of the mineralization and expanding the resource base at the Cobra project.
• Resource Definition: The work will aim to define a resource that could be developed into a commercially viable operation, which would be a major achievement for Star in its uranium ambitions.

This development signals Star Minerals’ commitment to expanding its presence in the uranium sector, and with the expertise and in-country support from Madison Metals, there is significant potential for growth at the Cobra Uranium Project.

Harnessing Solar Power: South African Mines Embrace Sustainability Through Local Procurement

The energy landscape in South Africa is undergoing a transformation as many mines turn to solar power ventures amid the country's persistent energy crisis. This transition, fueled by recent legislative changes facilitating large-scale solar projects, underscores the importance of local procurement in ensuring the sustainability and success of these endeavors.

Mines, possessing vast surface land unsuitable for development but ideal for solar plant installation, are partnering with engineering, procurement, and construction (EPC) firms to execute these projects. However, the article highlights a critical concern: the potential for EPC companies to prioritize short-term cost savings over the long-term viability of the solar plants. This risk arises from a lack of specific directives from mines regarding local procurement and aftersales support, leading to the sourcing of potentially substandard equipment from foreign suppliers.

The advantages of local procurement are manifold. Proximity to local suppliers and service providers enhances operational efficiency and reliability, mitigating risks associated with transportation damage and limited after-sales support from international suppliers. Furthermore, engaging local suppliers and labor not only supports economic growth and job creation but also strengthens the relationship between mines and surrounding communities.

This community engagement is crucial, aligning with initiatives like the Just Energy Transition (JET) initiative, which aims to facilitate a smooth and sustainable transition to renewable energy sources. By involving local communities and supporting local businesses, mines contribute to broader socio-economic objectives while fulfilling their corporate social responsibility.

Moreover, solar plant projects offer opportunities for skills transfer to local employees, empowering them to pursue alternative sources of income as mining activities evolve. This emphasis on skills development and employment opportunities aligns with broader efforts to address South Africa's unemployment crisis.

In summary, the adoption of solar power by South African mines represents a significant step towards sustainable energy solutions. However, the success of these ventures hinges on prioritizing local procurement, community engagement, and long-term sustainability over short-term cost considerations. By embracing these principles, mines can not only address their energy needs but also contribute to broader socio-economic development and environmental stewardship.

Copper 360's Strategic Funding Moves and Corporate Developments Propel Growth in the Mining Sector

Copper 360, a company previously known as Big Tree Copper and listed on the JSE, has recently made significant strides in its funding strategy and corporate developments. A key highlight is the successful raising of additional funding totaling R99.8 million through the issuance of shares for cash. This capital injection is pivotal for Copper 360's strategic objectives, particularly its plans to acquire Nama Copper and enhance production at the Rietberg mine situated in South Africa's Northern Cape region.

Shareholders granted the board of directors authority to issue shares for cash during the company's annual general meeting on September 4, 2023, aligning with Copper 360's funding strategy. Moreover, through internal reorganization, Copper 360 acquired assets previously held by Cape Copper Oxide, leveraging its own shares as part of the exchange agreement.

The JSE approved the listing of 37.7 million shares, categorized as treasury shares, with effect from February 15. Additionally, Copper 360 successfully placed 29.4 million shares for trading over a 30-day period ending on February 14, raising R99.8 million in new equity. These treasury shares are currently utilized to expedite settlement through a scrip lending arrangement between Copper 360 and Cape Copper Oxide. This agreement will persist until the JSE grants approval for the listing of the additional 29.4 million shares. Upon approval, these shares will be returned to Cape Copper Oxide and retained as treasury shares.