Development work and construction of the Phase 1 openpit and the El Nino underground mine at Barrick Gold’s South Arturo operation, in Nevada, have been accelerated, setting the stage for some production from both operations later in 2018, partner Premier Gold Mines said on Wednesday.
The Phase 1 project will be the first openpit mine operated by Barrick using autonomous mining equipment, which Premier said would create an opportunity for reduced mining costs and improved safety.
The joint venture (JV), in which Barrick holds 60% and is the operator, has budgeted $90-million for the entire project, with development capital in 2018 amounting to $17-million.
The run-of-mine material from Phase 1 would be stockpiled, pending a decision on whether to proceed with a processing facility located on the JV property.
Currently, Barrick processes ore from the existing South Arturo operation at its Goldstrike facility, about 5 km to the south.
At the El Nino underground deposit, which is the down-plunge extension of the Phase 2 pit that was mined in 2016/17, ground work has been completed and full construction of the mine will begin next month.
The underground mine is estimated to cost $36.4-million, of which $7.4-million has been earmarked for 2018.
Premier stated that the JV would initiate an underground exploration programme to identify additional mineralisation, which remains open at depth and locally along strike.
“With new mine developments being advanced ahead of schedule at South Arturo, the stage is set for a solid operational future at this strategic property,” commented Premier president and CEO Ewan Downie.
He added that work continued on several additional opportunities that could add to reserves and resources, one of which is a potential Phase 3 openpit.
Drilling last year identified mineralisation below the current pit design and demonstrated continuity with higher-than-expected grades in the southern extent of the current resource model. Drilling will primarily follow-up high-grade results from the 2017 programme.