Name of the Project
Salares Norte gold project.
Location
The project is located in the Atacama region of northern Chile.
Project Owner/s
Minera Gold Fields Salares Norte Ltda (MGFSNL), in which Gold Fields indirectly holds a 100% interest.
Project Description
Salares Norte has a maiden reserve of 21.1-million tonnes grading 5.1 g/t gold and 57.9 g/t silver. The definitive feasibility study (DFS) for the project, which includes Brecha Principal and Agua Amarga, has been completed and peer reviewed.
The DFS envisages an openpit mining operation using conventional mining equipment.
Mining and blasting services will be undertaken by contractors.
The DFS estimates an initial 11.5-year mine life, with production, on average, of 450 000 oz/y for the first seven years. At peak production, the project is expected to produce 550 000 oz/y of gold.
There will also be a significant stockpiling strategy.
An estimated 308-million tonnes of waste mining is expected over the mine life.
The company will introduce tailings filtration before it is dry-stacked at the tailings facility, which is 1 km away from the processing plant. The tailings will be transported hydraulically for filtration, and from there on trucks to the storage facility.
The plant will start with two filters, with a third to be added at a later stage.
The DFS includes plans for an on-site diesel-generated 14 MW power station.
The company plans to introduce renewables in stages as the project progresses, with an ultimate target of 20% of power consisting of renewables.
Potential Job Creation
It is estimated that about 2 700 jobs will be created during the construction of the mine. About 900 workers are expected to be employed once the mine is operational.
Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 7.5% discount rate, of $654-million and an internal rate of return of 25%, with a payback of 2.2 years.
Capital Expenditure
The project is estimated at $834-million.
Planned Start/End Date
Construction is scheduled to begin later this year and be completed in early 2023.
Latest Developments
Gold Fields has reported that the Salares Norte project continued its positive momentum during the third quarter. About $78-million had been spent so far this year on the project, including predevelopment costs of $11-million, district exploration of $11-million, Phase 1 camp construction costs of $13-million and initial capital expenditure of $43-million.
At the end of September, engineering progress on the project was 85.3%, compared with the 83% that was envisioned in the company’s plans for the end of the quarter, while construction progress was 8.8%, compared with the plan’s expected 4.9%.
The Phase 1 camp construction was completed during the quarter, while Phase 2’s construction was three months ahead of schedule.
At the end of September, the company’s total district exploration metres around Salares Norte amounted to 10 108 m for the year, compared with the planned 9 084 m.
Key Contracts, Suppliers and Consultants
Fluor (engineering, procurement and construction management).
Contact Details for Project Information
Gold Fields, email Investors@goldfields.com.