The El Nino underground mine under construction at South Arturo – a joint venture (JV) operated by Barrick Gold and Newmont Goldcorp’s newly formed Nevada Gold Mines – is progressing ahead of schedule.
This is according to 40% owner in South Arturo, TSX-listed Premier Mines, which on Wednesday reported that production at El Nino would ramp-up during the second half of the year.
The company said that the JV was considering moving the processing of ore forward in the overall processing schedule and that it could be brought forward to this quarter.
“Processing of El Nino ore is a favourable development that is expected to positively impact on the timing of production, cash flow and overall economics associated with the mine,” Premier said in a statement, announcing its second quarter results.
During the three months ended June, processing of stockpiled material at the South Arturo mine yielded 917 oz.
Premier’s Mercedes mine, in Mexico, produced 15 532 oz of gold and 56 552 oz of silver in the quarter under review. Production at Mercedes is predominantly from the Diluvio, Rey de Oro and Lupita zones.
Production from Mercedes during 2019 was weighted heavily toward the second half with output from Diluvio planned to account for about 52% of ounces produced.
Premier said that it would look to draw more from the Rey de Oro and Lupita zones, where grades ranged from 30% to 60%.
"Our recent progression into the lower grade Diluvio zone demands a very focused mining approach in order to realise Mercedes full potential," stated Premier executive chairperson John Begeman.
"We will continue to adjust to the challenges associated with lower grade ores while we exploit opportunities elsewhere in the mine.”