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Hits and misses as production reports roll in

11th January 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – Several North American miners issued fourth-quarter and full-year 2016 production reports on Wednesday, with some reporting better-than-expected results and others missing the mark.

TSX- and NYSE MKT-listed streaming and royalty firm Sandstorm Gold sold record volume of 13 200 attributable gold-equivalent ounces (GEOs) during the fourth quarter and more than 49 500 GEOs for 2016. Both the fourth quarter and yearly production results are records for the company. The attributable GEOs were generated from 21 streams and royalties, with more than 70% of the ounces coming from operations run by major and midtier mining companies.

TSX-listed Copper Mountain Mining reported total copper output of 103-million pounds of copper equivalent, including 83-million pounds of copper, 30 800 oz of gold and 291 900 oz of silver for the full year. This was a 33% improvement over 2015 figures.

"2016 has been a challenging and pivotal year for the company. The mine team has achieved outstanding numbers by increasing mill throughput well above the design capacity while continuing to minimise operating costs. The favourable mine performance coupled with the recent rise in the copper price bode well for the company to increase the cash balance on hand,” president and CEO Jim O'Rourke commented.

Copper Mountain expects to produce in the range of 75-million to 85-million pounds of copper, based on a mill throughput rate of 38 000 t/d and a mill feed grade of 0.30% copper, in 2017. The planned mining rate is 180 000 t/d for the year. The 2017 mine plan calls for a majority of ore to come from Pit 2 area, the saddle area and the Oriole deposit. 

Fellow TSX-listed company Capstone Mining announced production of 29 900 t of copper in the fourth quarter and 114 600 t of copper in the year-to-date period, with additional by-products of zinc, molybdenum, lead, silver and gold.

Copper output at Pinto Valley, in Arizona, exceeded expectations, with throughput above plan for the quarter and year. Throughput averaged 56 800 t/d and 56 200 t/d for the fourth quarter and full year, respectively. The operation continued to demonstrate the mine's potential, achieving a new daily throughput record of over 64 000 t/d in December.

At Cozamin, in Zacatecas, Mexico, the average grade for the quarter of 1.63% copper offset lower than planned mill throughput, with production ending the year at the previously lowered guidance target. Development rates continued to improve through the fourth quarter. At Minto, in Canada’s Yukon Territory, copper production for the quarter met expectations while full-year throughput, grade and recoveries all exceeded plan. In the fourth quarter the mill processed stockpiles, supplemented by underground mining, which continued through the quarter.

Junior precious metals producer Great Panther Silver reported production results from its two Mexican silver mining operations – the Guanajuato Mine Complex, which includes the San Ignacio mine, and the Topia mine, in Durango.

For the full year, consolidated output fell 7% to 3.89-million silver equivalent ounces with silver output decreasing 14% to 2.05-million silver ounces, and gold output rising 2% to 22 238 oz - a new yearly record. Metal production was down for the fourth quarter and 2016 owing to lower grades at San Ignacio and shutdowns at Topia, with the most recent to accommodate tailings expansion and plant improvements.

TSX- and Nasdaq-listed Silver Standard Resources said it has achieved production guidance for the fifth consecutive year, producing 393 325 GEOs in 2016, as all three operations met or exceeded previously improved production guidance. During the fourth quarter it produced 110 130 GEOs.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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