Mining News

“El uranio de Cerro Solo asoma como combustible del Plan Nuclear Argentino”, published in “El Patagónico” (Province of Chubut) on 01/04/2011
The Cerro Solo Mine, the largest Uranium reservoir in the country, is located in the Paso de los Indios Department, on plateau of the Province of Chubut. Within the reactivation of the Argentine Nuclear Plan promoted by former President Néstor Kirchner, the mine’s resources will allow Argentina to stop importing uranium for Argentine nuclear reactors. Cerro Solo has demonstrated a 6,000 ton estimate of recoverable uranium reserves and has areas where the mineral can be extracted with underground systems and others where open pit exploitation is necessary. The deposit is property of the CNEA (Comisión Nacional de Energía Eléctrica –Electric Energy National Commission) -foreign firms have obtained concessions in the nearby areas– and the intention is to collaborate with the national nuclear industry.

“Impulsarían la ley minera después de las elecciones”, published in “Diario de Madryn” (Province of Chubut) on 01/04/2011
The Government of the Province of Chubut plans to amend Law 5001 during next April, which prohibits open pit metal mining and the use of cyanide in the mining production processes, if it wins the general elections programmed for March 20. Versions mention an agreement beyond political party affiliations among the current members of the legislature, in order to give this amendment a green light. The famous “Navidad” project is in the “spot light” of the strategy, with a value of 3.5 billion dollars, and is a precedent for other multimillion dollar projects.

“En el 2010, entró más del triple de regalías”, published in “Diario de Cuyo” (Province of San Juan) on 01/05/2011
Last year the coffers of the Province of San Juan received more than three times the sums they received in 2009 for mining royalties. AR$161,091,103.88 (around USD41M) were paid, which means an increase of 238.52% more than the AR$47,586,198 that were paid during the same period in 2009. “The reasons are that production improved in the Veladero and Gualcamayo mines, and that the price of gold increased”, explained the province’s Technical Secretary for Mining Affairs, Juan Bustamante. The greatest improvement in production occurred in the Veladero mine, exploited by Barrick, where extraction increased from 600,000 gold ounces in 2009 to 1,300,000 ounces in 2010. As well as the increase in tonnage, the deposit also started to exploit an area with greater gold grade. In total, since 2006 in which San Juan started to collect mining royalties, AR$292,745,577.97 (around USD73M) were received. While the communities receive 33% of those funds, as stipulated by law, the General Revenues office obtain 55% and the Mining Office 12%. In this way, the General Revenues Office collected more than AR$161 million (around USD41M) and the Mining Office earned AR$ 35.1 million (around USD9M).

“El sector ayudó a generar trabajo y la tasa de riquezas triplicó a la de la economía global”, published in “Tiempo Argentino” (City of Buenos Aires) on 01/09/2011
In the last two decades, mining activity in Argentina has registered a deep transformation in its productive structure. The total amount produced and exported has multiplied several times, the wealth growth generated by the mining sector tripled the economy´s global growth rate in the 1994-2009 period; the trade gap had a surplus, the direct jobs created exceed 12,000 and the tax cost/benefit of the mining policy is clearly positive. This happened in the context of an international scenario that in the 90’s and beginning of 2000 has registered long price decrease cycles, even though in the last three years there has been a favorable metal price and demand. This sustained expansion process replicated with different intensity in other countries of the region. Less than ten mining companies (large and medium) pay Argentina more than 4% of their total exports, which means more than USD 2.5 billion, annually. Mining represents 2% of the generated wealth, more than AR$3.5 billion (almost USD1 billion) in annual taxes and due to its size it is the sixth exporter of the country. The phrase against mining “they take it all and leave nothing behind” responds to a very different scenario to what the statistics reflect. Mining activity contributes to the Argentine economy: from the total value produced, 80% stays in the country and only 20% is destined to the purchase of imported supply and/or the distribution of utilities, interest payments, etc. abroad.

“Litio, el mineral "vedette" de los próximos 50 años”, published in “Diario Río Negro” (Province of Río Negro) on 01/10/2011
Argentina participates in the exclusive club of owners of a strategic resource. With different mining ventures already incorporated and others announced, it has been estimated that Argentina could become the first lithium world producer in years to come. The strategic importance of “rare metals” that are applied to the “main” industries sets an enormous international competition. During last November, in the Chinese city of Tianjin, the Chinese Mining Fair was held simultaneously with the III Congress of Argentine Mining. Jorge Mayoral, Argentine Secretary for Mining Affairs, said that “investments for more than USD30 billion are expected for the sector” and that Argentina “will become a world player in copper, silver and gold production and will lead in lithium and borates” as well as becoming one of the “most important” potassium producers, destined for fertilizers.
For the public official, lithium will be the “star” mineral in the next 50 years, due to its characteristics and increasing demand. He also said that the Argentine mines, as well as the Bolivian and Chilean mines form a triangle where most of the world’s reserves are found. Due to the fact it concentrates 85% of the reserves the North American publication Forbes called it “the Saudi Arabia of Lithium”. In the meanwhile, the world’s reserves are estimated to be 11 million tons, 5.4 of them belong to Bolivia. According to United States Geological Survey (USGS), in 2008 the argentine production of lithium increased a 6.7%, going from 3,000 to 3,200 tons and maintained the forth position in the world ranking, close to third place China, behind Chile and Australia.

“Récord en perforaciones”, published in La Nación (City of Buenos Aires) on 01/11/2011
The Secretariat for Mining Affairs informed, yesterday, that exploration ventures in the mining sector registered a new record in 2010, with more than 730,000 meters of drilling in the whole country, implying a 340% increase compared to 2003, year of recovery for the mining sector. The official agency also mentioned that the exploration programs imply investments for more than AR$ 400 million (around USD100M), and that the greater number of operations are concentrated in the provinces of Santa Cruz, Chubut, San Juan, Mendoza and La Rioja.

“Avances exploratorios en Santa Cruz. Cerro Cazador confirmó inversiones en reunión con Mayoral”, published in “La Opinión Austral” (Province of Santa Cruz) on 01/11/2011
“Our company is evaluating a surface area of more than 280,000 hectares, between its own mining rights and associations with third parties”, said Danilo Silva to Jorge Mayoral (Argentine Secretary of Mining) about the exploration works that will take place in Santa Cruz. The Chairman of the mining company Cerro Cazador informed the Secretary for Mining Affairs about the company’s investment projects. The company’s President, associated with Fomicruz for the development of the La Josefina and La Valenciana projects, confirmed the end of the exploration work’s financing process for 34 million Argentine Pesos. Concerning La Josefina, since 2007 Cerro Cazador has performed more than 37,000 meters of diamantine tests, as well as lifting 416 kilometers of geophysical lines using the IP method and more than 10,000 rock samples were obtained. With the information gathered in the exploration campaign, Cerro Cazador made a calculus of mineral resources, which resulted in 197,374 equivalent ounces of gold, with 155,562 of them corresponding to the measured categories, 41,812 to the indicated categories and 6,744 to the inferred ones. Silva also mentioned that during the first semester of 2011, the company plans to drill no less than an extra 10,000 meters, in “strategically chosen sites, with the purpose of increasing the mineral resources”, assuring that, in the case of reaching the desired objective, all will be set to enter the pre-feasibility and feasibility stages of the project”. In the current year, the company will also start the exploration and development of the recently awarded La Valenciana Project (also Fomicruz S.E. property), that is located west of La Josefina as well as a “determined exploration work” in the Bajo Pobre project, located in the center north of the Deseado Massif.

“Argentina prevé nuevos proyectos mineros por más de 130 mil millones”, published in “El Independiente” (Province of La Rioja) on 01/12/2011
The National Secretariat for Mining Affairs published the last data of 2010 showing a new historical record with more than 730,000 drilled meters in the whole country; signifying 340% more than in 2003, year in which the mining activity started to recover. It should be clarified that the exploration programs that are measured in drilled meters exceeded the 730,000 meters, implicating investments for more than USD100M, according to current market values. This data also shows an increase of 21% over 2008’s last exploratory record, with 603,000 drilled meters. In the same way, exploration works promote potential new mine deposits, mainly in provinces such as Santa Cruz, Chubut, San Juan, Mendoza and La Rioja, among others. With the new drilling stock, that exceeds 3,000,000 meters, the sustained increase of the mining activity is ensured, which foresees the construction of at least 15 new projects in the following years with investments for over USD30 billion and 115,000 new jobs in the whole country.

“Santa Cruz: Mirasol halla más plata en Virginia”, publised in “Mining Press – Daily Newsletter” (City of Buenos Aires) on 01/14/2011
The Canadian mining company Mirasol Resources found a large amount of silver mineralization in phase 1 of its Virginia Project in Santa Cruz. According to the company, 21 mine shafts were opened; most of them returned intersections of 9 to 26.6 m with degrees ranging from 250 to 1,000 g/ton of silver, which includes higher grades of gaps between 1,000 and 6,298 g/ton of silver. Lengths of 2,200 m were explored in the Julia vein in shafts of 25 to 50 meters deep. As in seven previously reported drillings, all the mineralized material is strongly oxidized with abundant iron oxides. The only observed sulphur is galena in small quantities. The North Julia segment of the structure was tested through 14 shafts and an inclination angle of 50 to 80 degrees west. The best findings include shaft VG-014, that returned a width of 26.59 m of 348 g/tn of silver, including a gap higher than 5.91m with 1,208 g/tn of silver; also the VG-028 shaft, located at 498m south of the shaft described before, with a width of 9.33m of 654 g/tn of silver, including a greater gap of 5.05 m of 1.152 g/tn of silver. This demonstrates the continuity of the above mentioned 500m long and 60m deep mineralization. The majority of the drillings have returned impressive widths and silver grades, in every case exceeding the anticipated widths through surface samples. The mineralization is clearly open to the north and in depth. New shafts in central Julia and South Julia also contain significant intersections. The widest of them was found in south Julia where the VG-023 shaft measured a width of 7.57 m containing 245 g/tn of silver that include a gap of a higher grade than 2.62 m of 560 g/tn of silver. The mineralization of south Julia continues to be allocated in competent rocks with a good recovery nucleus. The methods used in the register and quality control are consistent with the best industrial practices. New drillings confirmed the indicated tendencies from the seven shafts of phase 1. As a group, the 28 shafts have provided consistent mineralizations of economic interest. Mirasol has resumed its works on the surface with mechanical ditch opening that will begin with the veins and objectives that are around the Julia Vein. It is the mining company’s intention to restart the explorations during this trimester.

“La producción de cemento y cal fue récord en 2010” published in “TELAM News Agency” (City of Buenos Aires) on 01/18/2011
The National Secretariat for Mining Affairs informed, yesterday, that the production of lime and cement made a record during 2010, with 2.6 and 10.5 million tons respectively, reaching commercial value of more than AR$6 billion. In the case of cement, the production increased to a value of AR$4,98 billion and exceeded the previous records of 2008 (9.7 million tons) and 1980 (9.3 million). This increase is parallel to the consumption increase of 20%, “which means going form 4 to 5 bags of cement per person”, indicated the National Secretariat through a press release.

“La Argentina y Turquía firman acuerdo de cooperación minera” published in “El inversor Energético & Minero – Daily Newsletter” (City of Buenos Aires) on 01/21/2011
The Secretary for Mining Affaire, Jorge Mayoral, signed yesterday, in Ankara, Turkey, a memorandum of understanding about mining cooperation with the Turkish Sub-Secretary of Energy and Natural Resources, Metin Kilci. The subscribed agreement, in the context of President Cristina Fernández de Kirchner’s visit, also involves cooperation in exploration matters and geothermal energy production, the Ministry of Federal Planning informed in a press release. According to TELAM news agency, in this type of energy, the Ottoman nation generated 100 megawatts (Mw), and expects to sum around 300Mw more this year. The memorandum includes the promotion of cooperation for the production and industrialization of ornamental rocks, including marble and granite, materials in which Turkey is the fourth largest producer in the world. It also contemplates the development of experiences in technical satellite images and sea geology, in which Argentina can provide its larger experience. Finally, both countries agreed on reciprocity in both markets and to deepen their mining trade relationship. The presidential tour to Turkey took place after the Head of State had visited two other Middle Eastern nations, Kuwait and Qatar, with which important agreements in energy integration were signed.

“En marzo, China profundiza acuerdos mineros con La Rioja”, published in “NOA Noticias – Digital Newspaper” (Province of La Rioja) on 01/25/2011
During March an economic mission led by the Chinese Vice-Minister of Natural Resources and representatives of Chinese mining companies will come to Argentina to analyze new investment alternatives, informed the National Secretariat for Mining Affairs. To date, there have been four commercial missions between Argentina and China, in which mine deposit exploration risk investments agreements were made. In the China Mining fair, the largest business filed for Asian mining, the signing of an agreement was made between the largest gold producer in China, the giant Shandong Gold, and the province of La Rioja to advance in the exploration development of mines in Famatina.

“Las exportaciones mineras de Salta crecen un 18% durante 2010”, published in “Mining Press – Daily Newsletter” (City of Buenos Aires) on 01/25/2011
The Secretariat for Mining Affairs of the province of Salta published a summary of a statistic analysis that shows that the province’s mining exports increased by 18% during 2010, in comparison with the year before. The report shows that during 2010 almost 111,000 tons of minerals were exported, while in 2009 the same exports reached 95,000 tons. The same report says that foreign sales signified more than 70,000,000 dollars (FOB value), which means an increase of 18% respecting the approximate 60,000,000 dollars in 2009. In volume the increase was of 15%, which indicates a lower price for these mineral products in the markets. The Mining Secretariat says that the products of the province of Salta reach 42 countries and the 5 continents. The most required minerals have been lithium chloride, boric acid, hydroborite, colemanite, dehydrated borax, penta dehydrated borax, unhydro borax, octaborate sodium, unhydro ulexite and perlite. From that group of minerals the largest participation of the economic value was made by lithium chloride, with an export of US$ 23,853,232, which represents a 57% increase from 2009, followed by boric acid with US$ 23,156,542.

“Minera en producción”, published in “Diario La Nación” (City of Buenos Aires) on 01/26/2011
The Australian mining company, Troy Resources, finished the first silver-gold fusion metal export from its Casposo mine in the Province of San Juan. The company sent 4142 ounces, according to the provincial authorities. With this exportation, Casposo became the third producing mine in San Juan, after Veladero and Gualcamayo. The Casposo mine is located 2400 meters above sea level and produces a silver-gold fusion, although a second production stage incorporating gold bullon and refined silver is expected.