Modern Mining June 2019

The processing plant of the Mako gold mine. Metallurgical recoveries in Q1 were in line with expectations at 94 % (photo: Toro Gold). whilst maintaining a strong safety record, and we remain on track to meet production guidance for 2019 of 157 koz,” com- ments Martin Horgan, Toro’s Chief Executive Officer. “The team has not rested on its laurels and over the past six months, has completed the Optimisation Study for the mine. This has led to an updated Life of Mine (LoM) plan that has not only increased the reserve base at Mako, but also allows us to run the mine at an increased capacity to further improve its already robust economics. Importantly, this increased throughput does not shorten the mine life and can be achieved without the need for additional capital expenditure.” The Optimisation Study, which was finalised in April this year, utilised a combination of drilling and operational data gath- ered over 2018 to assess the possibility of increasing both the total reserves for Mako, whilst simultaneously increasing the through- put rate of the process plant to utilise additional milling capacity. In the event, these objectives have been achieved. The study has added 105 Koz to the reserve for a total of 893 koz over the life of mine. At the same time, mill throughput has been increased to 2,3 Mt/a which maintains a 6,5-year mine life. The LoM plan can be achieved using the existing mining fleet and mine infrastruc- ture (tailings, waste rock and water storage facilities) without the need for any significant capex. Starting from 1 January 2019, the new LoM plan envisages total ore mined of 14,7 Mt at 2,01 g/t Au with a strip ratio of 5,4 tonnes (waste) to 1,0 tonnes (ore). The stockpiling cut-off strategy success- fully employed in 2018 is utilised and results in an annual mill feed of 2,3 Mt/a with metallurgical recoveries of 93,8 % leading to an average annual production of 144 koz Au over the first six years. This leads to an average cash cost forecast of US$754/oz over the remaining mine life using current consumable and fuel pricing – some US$90/oz lower than the previous LoM plan. Further exploration has been undertaken since November 2018 at Mako and the surrounding area, with the aim of adding further mill feed to the reserve base. 

June 2019  MODERN MINING  39