The Australian
Pnina Feldman’s Diamond Rose has released details of its purchase of a Chiean copper-gold project and associated assets from Kinross Gold.
The Sydney-based diamond explorer said yesterday it would pay in advance royalty of $1 million to the Chilean state mining company Empresa Nacional de Mineria by March 15, and ongoing royalties to Kinross and Empresa Nacional amounting to $6.5 million in all. As well, it will pay Kinross a so-called net profit interest.
Diamond Rose is 49 per cent owned and chaired by Mrs Feldman, who is the sister of mining magnate Joseph Gutnick.
The company said it had budgeted about $2 million to convert known resources at the Guanaco project to reserves to start mining.
First gold is due in December, at an initial rate of 50,000-100,000 oz a year, and an average cash cost of production of less than $200 an oz. The Guanaco gold resource currently amounts to more than 1.5 million oz.
Diamond Rose plans to raise $4 million through the sale of convertible notes and shares. Diamond Rose shares resume trading tomorrow.
Diamond Rose buys Guanaco Gold
Minebox Magazine
Perth-based Diamond Rose today announced that it has concluded a sale agreement with Kinross Gold Corporation to purchase their Guanaco gold operations in
Pnina Feldman, Chair and Managing Director of Diamond Rose stated that she sees “this acquisition as fast tracking Diamond Rose’s intention os becoming a significant producer of precious metals.”
“The purchase includes all of Kinross’s Guanaco assets including its gold mine and surrounding areas, associated plant, equipment and infrastructure,” she said.
Apart from the mine, the company has exploration and mining rights over the 150sqkm Guanaco property, which covers most of the historic Guanaco Gold District in
According to independent geologist, Terry Walker, “the current gold resource is in excess of 1.5 million ounces with very significant further potential.”
General Manager of
Leighton further projected that production cash costs would be at an average below US$200 per ounce.
The company has processing facilities with a capacity to crush and heap leach 6000 tonnes per day.
International financing has been secured for the project, which is underwritten by PrimeGlobal LLC of Beverley Hills,
Feldman said: “We all feel privileged that the company is involved in a project of such magnitude at such an opportune time for gold production. We are encouraged by the enthusiasm shown by the local and overseas investment community for this project.”
Diamond Rose unveils new string to its bow
Mining News
Diamond Rose has finally released details of its acquisition of the Guanaco gold-silver-copper mine in
Diamond Rose, which made the acquisition through its Golden Rose International unit, will pay a 3% royalty on gold and silver production and a 2.5% royalty on copper produced to Kinross and state-owned mining company Empresa Nacional de Mineria (ENAMI), which owns a lease agreement for mining concessions.
The advance royalties will be paid over three years with US$1 million due before March 15.
Golden Rose will also pay a net profit interest which equates to either US$75,000 per quarter, 10% of metals or concentrates produced from mining concessions previously owned by Kinross, or 5% of the metals or concentrates produced from a mining concession previously owned by ENAMI.
Golden Rose can purchase the net profit interest fro US$7.5 million.
Guanaco contains a gold resource of 1.58 million ounces, 721,000oz of which is categorized as indicated resources and 860,000oz as inferred. Golden Rose hopes to begin production within 12 months at a production cost of below US$200 per ounce.
Production is targeted at 50,000-100,000oz for the first year and increasing thereafter. The Guanaco mine and processing facilities, currently under care and maintenance, are capable of crushing and heap leaching 6000 tonnes of ore a day.
Individual mineralized zones on the 150sq.km Guananco property range up to 180gpt gold and between 5% and 45% copper in the lower copper zones.
Overseeing the operations and development of the project are general manager Gary Leighton and senior independent geologist Terry Walker.
Leighton has spent more than 30 years in the mining industry, including as BHP’s manager of engineering and construction for the Escondida copper mine, general manager of the Zandivar copper project, construction manager at the Collahuasi copper mine, and most recently as Bema Gold Chile’s general manager of the Cerro Casale project.
Diamond Rose has budgeted A$2 million to convert the known resource into reserves before commencing mining. It plans to raise $4 million by issuing a $2 million convertible note and $2 million in shares through a prospectus underwritten by PrimeGlobal LLC.
The directors of diamond Rose, who include 49% stakeholder Pnina Feldman – sister of mining magnate Joseph Gutnick – said they view the acquisition as a fast tracking of the company’s aim to become a significant precious minerals producer.
Diamond Rose shares will recommence trading on the Australian Stock Exchange tomorrow after a trading halt was called on Christmas Eve in anticipation of the acquisition announcement.
