Member Info for Cowichan

That's aprox. how much & how long it should take Centamin to get their solar project up and running — assuming they stick with the 30 MW option

Modified on October 3 2019
The installation of this 30 MW solar power plant is expected to require an investment of $38 million. B2Gold plans to release $20 million before the end of 2019. The construction of the solar off-grid will therefore begin this year with an expected commissioning date of August 2020. The Fekola solar park will then be one of the largest off-grid solar power plants on the African continent.

It will be of greater importance to B2Gold as three heavy fuel oil generators will be shut down during the day, saving the mining operator 13.1 million litres of heavy fuel oil per year, not to mention the environmental benefit of operating the plant. The solar power plant is also expected to reduce gold processing costs by at least 7%. In fact, the Canadian company assures that it could recover its investment over a 4-year period.

https://www.afrik21.africa/en/mali-b2gold-to-upgrade-fekola-gold-mine-with-30-mw-hybrid-off-grid-solar-power/

Point taken Rebess!

We've had our hopes dashed so many times it seems improbable anything will ever change for the better.

But the one thing that has already changed is the new exploration push around Sukari. For the benefit of those who've not perused the Q3 report:
Exploration Review
There has been a notable increase in exploration activity across Sukari in Q3, with approximately 20,000 metres drilled in Q3 from surface and underground platforms. Systematic drilling of the underground remains the exploration focus with regional drilling and seismic programmes carried out in parallel.

The mine strikes 2.7km within the greater 160km2 license area. In 2018, the Company began assessing the viability of a 2D and 3D geo-seismic programme. The objective of the seismic programme is to create a detailed 3D structural architecture of the entire license block to a depth of 1.5km. Additional airborne and ground geophysics techniques (such as magnetics, gravity, ZTEM/VTEM, AMT, IP and EM) are planned for Q4 through 2020 to explore for buried porphyries, sulphide lodes and corridors of enhanced fluid with which to generate prioritised drill targets.

In Q3, geophones were marked, situated and calibrated across the three 10km seismic lines. The HiSeis vibe truck arrived on site in early Q4. Field 2D seismic acquisition has commenced.

In Q3, an exploration campaign commenced with two surface rigs at the V-Shear deposit, located less than 5km from the Sukari processing plant. Interpretation of the drill results identified a new gold mineralised shear zone striking more than 200m northeast-southwest and sub-vertical dipping to the southeast. The zone consists of two parallel shears. Further drilling of this zone is scheduled for Q4.

I am of the opinion management has held off on these moves until such time as the Egyptian gov't got its act together regarding royalties & taxes - which is now.

I am also of the opinion there will be many millions of ounces discovered in the near term - i.e. more Sukari size/type deposits adjacent to the current operations.

Here's a look at the technology employed on site even as we speak
https://www.youtube.com/watch?v=9nur6VWHQxM&feature=youtu.be
http://www.hiseis.com.au/

Step aside Canada, Australia and South Africa: West Africa is fast becoming the hottest ticket in gold mining.

Producers and prospectors are pouring money into the region as prices rally and the industry at the southern tip of the continent keeps shrinking. While gold miners face a dearth of new discoveries globally, large parts of West Africa have barely been explored. The deposits tend to be shallow -- meaning easy access -- and relatively low-cost.

At least two new projects started up this year and a further two are scheduled for 2020...

https://www.bloomberg.com/news/articles/2019-10-23/gold-s-rally-is-driving-a-rush-to-one-of-metal-s-final-frontiers

Article Summary —The Egyptian government plans to add the taxes and royalties system to the new amendments of the Mineral Resources Law, thus replacing the current production-sharing system in place.

October 27, 2019
CAIRO — A large number of investors and firms are awaiting the issuance of the executive regulations of the Mineral Resources Law that Egyptian President Abdel Fattah al-Sisi ratified the amendments of in August, with the aim of generating large investments in Egypt’s gold mining. According to the government’s forecast, this sector’s share in the gross domestic product is expected to amount to $7 billion in 2030, with 110,000 new jobs and $700 million worth of investments.

During an Oct. 4 meeting of the consultative committee tasked with amending the law’s executive regulations, Minister of Petroleum and Mineral Resources Tariq al-Mulla said, “Efforts are made to amend the law’s executive regulations in a way to avoid any negative aspects for investors in mining activity, and help promote governance and transparency via a balanced legal framework that regulates the work mechanisms in mines and quarries, incentivize and encourage investors, and preserve the state’s rights and returns from tapping the mineral wealth at the same time.”

He added, "It is important that the law’s executive regulations involve a mechanism facilitating the licensing procedures needed to do business," El Watan newspaper reported Oct. 4.

The Egyptian government is in the process of amending the gold ore exploitation agreements, by adding the taxes and royalties system to the new amendments of the Mineral Resources Law, thus replacing the current production-sharing system in place that shunned large investment firms in the 1990s.

https://www.al-monitor.com/pulse/originals/2019/10/egypt-amend-law-mineral-resources-boost-investments-gold.html

A positive from Q3 results — management knows (Andrew gets a parting nod) that goodwill and social license are extremely important to run a successful company - and perhaps to run a successful mining company more than others. That said I think it's important to have a look at the items listed as social and economic contributions listed in the Q3 report;

'Within the local communities we operate, good progress and delivery against our social initiatives was made in Q3, including but limited to the annual advanced internship programme at Sukari, welcoming over 100 university science students from across Egypt, providing practical and theoretical mining experience; completion of a further two boreholes providing drinking water in the Doropo community; and commissioning an MFP system, providing a reliable source of local power within the Batie West community. '

1) Welcoming 100 Egyptian students to an active mine site is no easy matter. Not only is it a risk to safety (think of the personal liability issues!) it has the potential to slow down production, a risk I suppose is well worth taking when you consider the Egyptian government's eagerness to get the mineral resource sector and by default Centamin to expand production.
2)Doropo - water is life, enough said
3) Batie West power for the people - don't anybody write off this ore body - management has their reasons to keep the soup simmering on the back burner...

And all this good work was apparently just for Q3 - not too shabby...

The executive regulations for the Mineral Resources Act will be completed at the beginning of next month, an official source from the oil sector told Al Masry Al Youm on the sidelines of the Mediterranean Offshore Conference in Alexandria. The government has completed 80% of the regulations, which reportedly address specific complaints made by investors. Industry players have said the recent amendments to the Mineral Resources Act have made Egypt’s mining sector more attractive for investors.

https://www.almasryalyoum.com/news/details/1435048

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Mineral Resources Tariq Al-Mulla met with Jeremy Crozier, President of Principle Wharf International and Brian Rudd, CEO of Capital Drilling.

During the meeting, the Minister of Petroleum and Mineral Resources reviewed investment opportunities and new features after the amendments of the new mineral wealth law, especially as the two companies have a long history of nearly 30 years in the field of mineral exploration and mining industry in Europe, North America, Africa and Australia. Mining sector through cooperation with one of the global expertise houses to develop a mechanism for the optimal exploitation of Egypt's natural resources, especially gold ore.

Al-Mulla also reviewed Egypt's geological advantages and open mines, which can be operated throughout the year due to the existence of infrastructure that helps and encourages mining work and the ministry's desire to have more than one investor working in the field of mining.*

((* that would be Centamin))

The two heads of companies expressed their willingness to invest and work in the field of exploration and extraction of gold and their willingness to pump investments in the search for gold in Egypt in light of the political and economic stability and future plans of the Ministry of Petroleum to develop the mining sector in Egypt as well as investment opportunities.

The meeting was attended by Fekry Youssef, Undersecretary of the Ministry of Petroleum for Mining and Geological Affairs, Osama Farouk, Chairman of the Mineral Resources Authorit

http://www.petroleum.gov.eg/ar/MediaCenter/LocalNews/pages/mop_03102019_01.aspx

My thoughts: How is it that Capital Drilling and Aton Resources are touting their connections with the EMRA yet the only real freaking miner in Egypt is as dumb as a mole? If that is some sort of strategy I've had quite enough, thank you.

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Oct 9 2019
Mark Campbell, President and CEO “Over the past months we have been primarily focused on securing our mining licence at Hamama and working with the Government and Wood Mackenzie on mining reform in Egypt, but importantly we continue to develop the overall exploration potential of the Abu Marawat Concession”

https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1485-tsx-venture/aan/68117-aton-samples-up-to-102-5-g-t-au-at-safaga-south.html

My thoughts: Hmmm....

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Tuesday, 8 October 2019
British Principal Verve International President Jeremy Crozier and London’s Capital Drilling CEO Brian Rudd expressed their interest in gold mining and extraction investments in Egypt during a meeting with Oil Minister Tarek El Molla on Thursday, according to a ministry statement. The execs said the recent amendments to the Mineral Resources Act have increased the appeal of Egypt’s mining sector. El Molla separately met with the committee preparing the executive regulations to the new legislation, which he said will aim to remove “all obstacles” facing investors in the sector. The statement made no mention of when the regs are expected to be published in the Official Gazette.

http://www.petroleum.gov.eg/ar/MediaCenter/LocalNews/pages/mop_03102019_01.aspx

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Tarek El Molla, Minister of Petroleum and Mineral Resources, chaired the meeting of the advisory committee formed to amend the executive regulation of the Mineral Resources Law

the meeting was attended by representatives of the Ministries of Defense, Petroleum, Mineral Resources, Finance, Trade, Industry and Local Development, Administrative Control Authorities, Mineral Resources, Military Space, New Urban Communities, Central Auditing Organization, Chairman of the Chamber of Petroleum and Mining of the Federation of Egyptian Industries, the Chamber's agent for mining, and representatives of the Export Council for Building Materials, Refractories and Metal Industries.
During the meeting, Eng. Tariq Al-Mulla stressed that the executive regulation of the law is being amended so as to avoid all negatives facing investors in the mining activity and help promote transparency and governance through a balanced legal framework that controls the mechanisms of work in mines and quarries and contributes to stimulate investors and protect the rights of the state. At the same time, the executive regulation of the mining law should include a mechanism to facilitate the procedures of granting licenses and approvals necessary for conducting business,

He added that the regulation will work to achieve the flexibility that the mining law aims to achieve after it has been amended so as to facilitate keeping pace with any changes or developments in the mining activity, stressing the need for full clarity in the provisions of the regulation for all matters relating to the management and practice of mining activities before investors to contribute to removing ambiguity
https://www.facebook.com/EgyptianCabinet/posts/1370308023147559

China has added more than 100 tons of gold to its reserves since it resumed buying in December, reinforcing its standing as one of the major official accumulators as central banks stock up on the precious metal.

The People’s Bank of China picked up more gold last month, raising holdings to 62.64 million ounces in September from 62.45 million in August, according to data on its website. In tonnage terms, the latest inflow totals 5.9 tons, and follows the addition of about 99.8 tons over the prior nine months.

https://www.bloomberg.com/news/articles/2019-10-07/china-s-gold-buying-spree-tops-100-tons-amid-prolonged-trade-war

Bob Dudley @BP_plc
Dave Lewis @Tesco
Martin Gilbert @SLA_plc
Alison Cooper @ImperialBrands
Vernon Hill @MetroBank

MENAFN - Daily News Egypt) The Central Bank of Egypt (CBE) obtained about 1.3 tonnes of gold bullion produced from the Sukari mine between October 2017 to August 2019, to increase the bank's gold reserves while preserving foreign currency.

Youssef El-Raghy, general manager of Centamin Egypt and managing director of Sukari gold mine, told Daily News Egypt that the CBE gets 65 to 70 kg of gold per month in exchange for EGP 50m.

He explained that the CBE pays for the gold in Egyptian pound, not US dollar, to reduce the pressure on the hard currency.

In November 2017, the CBE and Sukari signed an agreement whereby the CBE would provide the company's monthly needs in local currency, estimated at EGP 50m, while the company supplies 99.99% pure gold in an equivalent value.

El-Raghy said this step comes within the framework of supporting the Egyptian economy through increasing the bank's gold reserves without pressure on foreign currency.

He noted that the SukarI's gold output ranges between 490,000 to 520,000 ounces during the current year.

The SukarI's gold reserves are estimated at 15.5m ounces, making it one of the largest gold mines in the world.

Tarek El-Molla, Minister of Petroleum and Mineral Resources, said in a previous statement that the state is seeking to increase Egypt's gold reserves at the CBE relying on the gold production of Sukari.

Andrew Pardey, chief executive of Centamin, said earlier that gold production is expected to continue to improve as production will be higher in the second half of this year as a result of increased open-grade mining.

About 55% of Centamin's profits from the Sukari mine goes to the Egyptian Mineral Resources Authority, after the company recovers investment costs. The authority also receives 3% royalty, which is supplied twice a year.

https://menafn.com/1099055462/Egypt-CBE-receives-13-tonnes-of-gold-from-Sukari-mine-until-August

According to this particular report Egypt, Burkina Faso & Cote D'Ivoire are as safe as Canada & Australia when it comes to the likelihood of resource nationalization.

Tanzania has lurched up the risk scale to number 2 representing extreme risk - good luck to Mark Bristow over at Barrick!

https://www.mining.com/rising-resource-nationalism-in-africa-ups-stakes-for-miners-report/

A new report from the World Gold Council with lots of charts and data sets comparing gold to other commodities, cash, stocks...

One point I see as interesting: When the day comes the world uses much less oil (10-20 years?!) what will replace oil as the world's most traded commodity? (Right now gold is a not too distant second) All that hot money (tens of billions a day) will need an alternate roulette wheel...

https://www.gold.org/goldhub/research/gold-when-investing-in-commodities

https://wsw.com/webcast/dgf19/company-webcast/#76

For those who want to compare CEO communication skills (I think Andrew Pardey is better than this guy - how that is possible I don't know!)

test

As Centamin makes a push into solar for the processing plant power needs cleaner options are now available for the mobile side of their mining infrastructure.

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Epiroc says it has recently secured orders for its second generation battery-electric machines from miners in Finland, Australia and Canada.

The orders come less than a year since the mining original equipment manufacturer launched the new range at an event in Örebro, Sweden.

In Finland in the September quarter, Agnico Eagle Mines ordered the Boltec E Battery rig for use at its Kittilä mine, Europe’s biggest gold operation.

The company, as part of the EU-led Sustainable Intelligent Mining Systems (SIMS) project where Epiroc is serving as a coordinator, has also been testing Epiroc battery-electric equipment. A Boomer E2 Battery has been operating for some months at the mine and, in August, a Minetruck MT42 Battery (42 t truck) and a Scooptram ST14 Battery (14 t LHD) arrived as part of the project.

Jari Kolehmainen, Production Manager at Agnico Eagle Mines, said the Boomer E2 Battery had been performing well and a diesel engine had not “been missed”.

“Operator feedback has been positive and we are looking forward to expanding our fleet with more electrical powered equipment in the near future. Therefore we are also very excited to be testing the battery-powered mine truck and loader. These tests are giving us the confidence to be a successful early adopter of this new and exciting technology.”

In addition to the orders and testing at Kittilä, several orders from other companies have been booked in previous quarters for battery-electric versions of the Boltec rock bolting rig, Boomer face drilling rig, Scooptram loader and Minetruck hauler, the company said.

Epiroc, upon launching its second generation machines in November 2018, said it had clocked up more than 60,000 hours of operating time with these electric machines. It is being helped along the way by battery maker Northvolt and ABB. Epiroc has committed to its Batteries-as-a-service offering that sees the mining OEM provide a warranty for the battery and provide both software and hardware updates on an annual basis.

The company launched its first battery-electric machines in 2016, adding, in November 2018, 14 t and 18 t LHDs, a 42 t truck and a mid-sized drilling family including face drilling, production drilling and rock reinforcement rigs. Epiroc aims to be able to offer its complete fleet of underground mining equipment as battery-electric versions by 2025.

https://im-mining.com/2019/09/19/epiroc-books-battery-electric-orders-mines-finland-australia-canada/

DENVER — Canadian miner Iamgold Corp. would fit well with China Gold International Resource Corp. Ltd.’s acquisition strategy as the Chinese state-run company seeks to buy producing gold mines, an executive with the overseas arm of China National Gold Group said on Wednesday.

China Gold is aggressively looking to add to its project pipeline, and Iamgold would be a good fit, Jerry Xie, executive vice president, told Reuters on the sidelines of the Denver Gold Forum.

“You can take that as an example. We feel comfortable for that size, as a corporate acquisition,” he said.

China Gold is eyeing deals in Canada, Latin America and Africa in the US$1 billion to US$2 billion range but would also consider partnering on projects and smaller deals around US$500 million

https://business.financialpost.com/commodities/mining/china-gold-sees-canadas-iamgold-as-good-fit-executive-2
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My thoughts: I find it astounding that a company with a market cap of 500 million Canadian is talking about buying out multiple miners in the 1 - 2 billion US dollar range. I don't know how Chinese state-run enterprises can 'establish' limited companies abroad — it seems dodgy and counter to the principals of a free market

http://www.chinagoldintl.com/investors/presentations/

- some things Mr Pardy said:
- the solar plant to be installed at Sukari likely the largest solar plant of any miner at 40MW
- there are now TWO exploration rigs drilling outside of Sukari hill
- remarked that there is currently lots of Egyptian media coverage of changes to the mining regulations & they'd be very excited to build another mine in Egypt under new terms...
- never mentioned BF exploration except to answer a Q&A regarding safety concerns
watch it here ---> https://wsw.com/webcast/dgf19/company-webcast/#29

Australia’s Newcrest Mining (ASX: NCM) and South Africa’s Harmony Gold (JSE: HAR) (NYSE: HMY) are facing fresh challenges in Papua New Guinea, as the administration is asking to keep 40% of gold extracted at the companies’ Wafi-Golpu project.

The joint venture partners had been hoping to secure a mining lease for the $5.4 billion gold-copper deposit this year. A new government, however, has brought delays in the permitting process as James Marape’s administration has vowed to “take back” PNG’s mineral resources.

“They get 60% of the production, we get 40%. If they don’t like it, we’ll mine it ourselves – we own the resources.”

As part of ongoing lease-renewal talks with miners, the PNG government has also approached Barrick Gold and Zijin Mining for a larger share of their Porgera gold mine.

https://www.mining.com/png-demands-40-of-the-output-from-newcrest-harmony-wafi-golpu-project/

A telling chart — comparing gold miners who have debt vs cash, production, market cap... with a little boost to output Centamin's metrics will regain their shine...

https://twitter.com/kristiebatten/status/1169842447997792258?s=20