There's Still Gold in Them Thar Hills: Industrial Info Tracks $608 Million in Third-Quarter North American Gold Mine Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--Gold mining is alive and well in North America, with Industrial Info tracking 11 active projects, valued at $608 million, that are scheduled for construction kickoffs in the quarter beginning in July.

The U.S. has eight of the projects, valued at $404 million. Canada follows with two projects valued at $197 million, and Mexico comes in third, with one project valued at $7 million.

With a total investment value of $300 million, stage one of Newmont Mining Corporation's (NYSE:NEM) (Denver, Colorado) Long Canyon open pit gold mine and heap-leach operation, located near Wells, Nevada, is the most prominent of the third-quarter kickoffs. The mine is expected to process high-grade oxide ore, in order to produce 100,000 to 150,000 ounces of gold per year over an eight-year mine life. Completion of the mine's construction is planned in second-quarter 2017. When operational, the mine is expected to employ 250 workers.

In announcing the project, Chief Executive Officer Gary Newmont said: "Taking a phased approach to developing Long Canyon gave us the means to lower development capital to between $250 million and $300 million; generate an internal rate of return of about 17% at current gold prices; and reduce the payback period to just over four years after first commercial production, which we expect to reach in the first half of 2017."

For related information, see June 10, 2015, article - Newmont Mining to Acquire Colorado Gold Mine, and February 23, 2015, article - Newmont Mining Takes Hit from Prices, Divestments in 2014, Puts 2015 Sustaining Capex as High as $950 Million.

In Canada, Industrial Info is tracking the planned third-quarter kickoff of the grassroot Hope Bay Doris Gold Mine and Mill project, located in Cambridge Bay, Northwest Territories. With a total investment value of $175 million, the project is part of plans by TMAC Resources Incorporated to develop a 715,000 ton-per-year mining operation to produce 160,000 ounces of gold per year over a 20-year period in the Hope Bay Greenstone Belt, an 80-kilometer by 20-kilometer property.

The project involves developing the local Doris Deposit as an underground cut and fill/longhole stoping operation and a 2,000 ton-per-day gravity/flotation/cyanide leaching process plant. Initial production and mill start-up is slated for fourth-quarter 2016. TMAC is working on the project with Gekko Systems (Ballarat, Victoria, Australia), Roscoe Postle (Toronto, Ontario) and SRK Consulting (Johannesburg, South Africa).

Meanwhile, Alaska is home to the planned third-quarter kickoff of the $25 million Chandalar-Placer gold mine and mill expansion near Fairbanks. Goldrich Mining Company (Spokane, Washington) and joint venture partner NyacAU Placer (Anchorage, Alaska) plan to expand the recently opened gold mine and mill from 10,000 ounces of gold per year to 20,000 ounces. The project involves expansion of processing capacity from 125 cubic yards per day to 250 cubic yards, and then to 600 cubic yards by 2016.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.