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MAG Silver reports positive PEA for world-class silver project Juanicipio!
A couple of days ago, MAG Silver announced the results of an independent National Instrument 43-101 Technical Report encompassing a new Mineral Resource estimate and Preliminary Economic Assessment (“PEA”) for the stand-alone Juanicipio Joint Venture Project in Zacatecas State, Mexico, owned 44% by MAG and 56% by the operator Fresnillo plc.
Video : Dr Peter Megaw COO MAG explains the latest PEA Precious Metals Summit Zurich
2017 MINERAL RESOURCE HIGHLIGHTS were:
- High grade silver-rich Bonanza Zone (basis for development to date) containing:
- 8.2 million (“M”) Indicated Resource tons at 550 grams per ton (“g/t”) silver; and,
- 2.0 M Inferred Resource tons at 648 g/t silver.
- Significantly expanded Mineral Resource for the base metal-rich Deep Zone, containing:
- 4.7 M Indicated Resource tons with 209 g/t silver, 2.96% lead, 4.73% zinc, and 0.23% copper; and,
- 10.1 M Inferred Resource tons with 151 g/t silver, 2.69% lead, 5.05% zinc, and 0.31% copper.
- Consistent gold across both zones, containing:
- 12.8 M Indicated Resource tons at 2.10 g/t gold; and,
- 12.1 M Inferred Resource tons at 1.44 g/t gold.
The new 2017 PEA outlined below stems from the new Mineral Resource estimate and confirms the Juanicipio Project as a robust, high-grade, high-margin underground silver project exhibiting low development risks.
Within the expanded scope of the new PEA the Juanicipio Project is projected to produce a payable total of 183 million silver ounces, 750 thousand gold ounces, 1.3 billion pounds of zinc and 812 million pounds of lead over an initial 19 years of mine life.
Video: News Spezial: MAG Silver meldet robuste PEA basierend auf wesentlich erhöhter Mineralressource
2017 PEA BASE CASE HIGHLIGHTS were:
- 4,000 tons per day (“tpd”) production rate with an initial 19 years of mine life;
- Enhanced project engineering, including: new plant and tailings location on flat, open ground; underground crusher and ore conveyor system; ramp expansions and internal shaft (winze);
- Low All-In Sustaining Costs (“AISC”) of $5.02 per ounce (“oz”) of silver;
- $360 M initial capital cost from January 1, 2018 to projected production start-up in H1, 2020;
- Payback in less than two years after plant start-up;
- Pre-tax Net Present Value (“NPV”) at a 5% discount rate of $1.86 billion and an Internal Rate of Return (“IRR”) of 64.5%; and;
- After-tax NPV at a 5% discount rate of $1.14 billion and IRR of 44.5%.
Uranium: Let’s get the party started!
With a – for Cameco – negative news, the world’s largest uranium-producer should have born a turnaround for the uranium spot price and the whole uranium sector.
As Cameco announced last Wednesday, the company plans to temporarily suspend production form its McArthur River mine and the Key Lake mill from the end of January 2018 on for a minimum of 10 months. The reason for this is the continuous low uranium spot price. Should the upscaled long-term-contracts run out and not be renewed, Cameco would lose money from the beginning on. Therefore, the company pulled the ripcord.
The announcement is for that very reason such important, because McArthur River and Key Lake produced 11.1 million pounds of U3O8 in the first 9 Months of 2017 alone. On a one-year-basis we speak about 14.8 million pounds, which amounts for at least 9% of the world-wide production of 2016.
Cameco is not the first one who announced production reductions. Since early 2017 a whole bunch of well-received production cuts has been published, like Areva’s Niger mines, Paladin’s Namibian Langer Heinrich mine and Kazakhstan’s 10% reduction in output. The 10% reduction in output from Kazakhstan is particularly significant, as Kazakhstan is the world’s largest producer of uranium, accounting for about 40% of global mine supplies. Clearly, the move signaled a new disciplined and responsible market approach. Earlier this year, Kazakhstan also announced that progress to date on that goal amounted to a solid 13% production reduction based on 1st quarter 2017 results. Furthermore, a senior Kazatomprom representative also announced at an industry meeting that “further production cuts are not off the table”, as they navigate through this difficult market environment.
Cameco’s recent announcement is the icing on the cake and led to a jump of more than 10% for the spot-price and partly more than 20% at the correspondent uranium stocks.
Should now also the first buyer tumble down, we should see a new uranium gold-rush…!
Video: Uranium Energy: Well Cashed Up To Develop Further ISR Deposits In The US
Sierra Metals reports quarterly numbers
A couple of days ago, Sierra Metals announced the filing of Sociedad Minera Corona S.A.’s unaudited Financial Statements and Management Discussion and Analysis for the third quarter of 2017.
EnWave steps into the profitable cannabis market
- Revenues of US$39.6 million vs US$29.5 million in Q3 2016
- Adjusted EBITDA of US$ 18.8 million vs US$13.9 million in Q3 2016
- Total tons processed of 268,178 vs 237,429 in Q3 2016
- Net production revenue per ton of ore milled increased by 23% to US$147.65
- Cash cost per silver equivalent payable ounce higher by 36% to US$9.24
- All in sustaining cost (“AISC”) per silver equivalent payable ounce higher by 19% to US$14.60
- Silver equivalent production of 2.1 million ounces vs 2.1 million ounces in Q3 2016
- Copper equivalent production of 18.2 million pounds vs 17.7 million pounds in Q3 2016
- $24.5 million of cash and cash equivalents as at September 30, 2017
- $31.0 million of working capital as at September 30, 2017
EnWave signs license contract with chip manufacturer
A short time ago, EnWave reported that it has signed an exclusive, sub-licensable, royalty-bearing commercial license with a major Canadian medical cannabis Licensed Producer (“LP”). The License grants the LP an exclusive right to use and sub-license the Company’s proprietary Radiant Energy Vacuum (“REV™”) dehydration technology to dry and decontaminate cannabis in Canada. This license expands the application of EnWave’s REV™ technology to the rapidly growing global cannabis market.
The License includes the purchase by the LP of a large-scale 60kW commercial REV™ machine to initiate commercial production and a small-scale 10kW commercial REV™ unit to enable advanced product development.
News: EnWave Signs Commercial Royalty-Bearing License with a Major Canadian Cannabis Licensed Producer and Announces Overnight Marketed Equity Financing
Uranium Energy acquires Reno Creek North Project
Furthermore, EnWave announced that it has signed a commercial royalty-bearing license with AvoChips LLC. AvoChips is led by an executive management team with combined snack food industry experience that spans over three decades in the North American markets. Through collaborative product development, AvoChips and EnWave have developed an innovative new avocado snack product using the Company’s Radiant Energy Vacuum (“REV™”) technology.
AvoChips submitted a purchase order to obtain a small commercial-scale REV™ machine to initiate production. AvoChips plans to conduct market trials for the Snack Product during 2018 prior to pursuing broad commercial distribution.
News: EnWave Signs Commercial Royalty-Bearing License with AvoChips LLC and Receives Purchase Order for REVTM Machinery
Rye Patch Gold reports record month
A few days ago, Uranium Energy announced that the Company has entered into a definitive Purchase Agreement with Uranerz Energy Corporation, a wholly owned subsidiary of Energy Fuels Inc., to acquire 100% of its advanced stage North Reno Creek project located immediately adjacent to and within UEC’s existing Reno Creek Project permitting boundary in the Powder River Basin, Wyoming. The North Reno Creek leases and claims acquired through the transaction consolidate UEC’s land and resource position in the region.
The addition of North Reno Creek adds further scale to an already large, fully permitted, and construction ready ISR project located in the United States.
News: Uranium Energy Corp Consolidates Reno Creek Uranium District with the Acquisition of the North Reno Creek Project
Rye Patch Gold recently reported that it has completed a record setting month at the Company’s flagship Florida Canyon mine in Pershing County, Nevada.
Production Highlights for the month of October 2017 as compared to the Company’s preliminary economic assessment “plan” were:
Sibanye-Stillwater signs 3-year-agreement with leading unions
- Placed 9,100 ounces of gold on the pad (48 percent above plan);
- Produced 2,911 ounces of gold and 1,626 ounces of silver;
- Mined 815,400 tons of ore (35 percent above plan);
- Crushed 821,100 tons of ore (37 percent above plan);
- Maintained a grade of 0.011 opt of gold including over liner material; and
- Achieved a low strip ratio of 0.43 for the month (77 percent below plan).
Sibanye-Stillwater recently announced, that it has signed a three-year wage agreement with all three unions at its Kroondal PGM operations in South Africa.
The agreement is effective from 1 July 2017 and includes a R1,000 per month increase year on year for the next 3 years for the category B employees (lower category employees) with CPI related increases for the next 3 years for category A employees. Medical aid subsidies will also increase from R300 by R50 per month year on year for three years for category A and B employees. The increase represents an average escalation of about 7% in the wage bill for the Kroondal operations.
Therewith, Sibanye-Stillwater has now planning dependability for the next three years.
News: Sibanye-Stillwater signs three year agreement at its Kroondal operations
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