|
| Currently viewing: Nalunaq > Next: Maco |
|
| Nalunaq
Nalunaq Gold Mine in southern Greenland was officially opened on August 25th 2004 after nearly ten years of exploration and development. Initially, Crew had a 67% joint venture interest in Nalunaq but this increased to a majority share of 82.5% in 2001, and to 100% in November 2007. Improvements to mining efficiencies and production rates were realised throughout 2007 as a result of new upgraded equipment, purchased and installed in 2006. The focus on maintaining this equipment is a priority as evidenced by the introduction of a detailed preventative maintenance program. Annualized production for Nalunaq is expected by management to stabilize at between 80,000 and 90,000 ounces. The gross gold content of ore processed in the 12 months to 31 December 2007 was 77,036 ounces, representing an average grade of 14.8 g/t. Location The mine is located approximately 40 kilometers from Nanortalik in southern Greenland. Nalunaq Mountain, which hosts the gold deposit, is 1,340 m high and located in a wide glacial valley reaching into the Saqqa Fjord about nine kilometers from the mine site. The fjords are deep and usually ice free, allowing easy access for shipping, and the moderate overall climate allows full year-round operations. Geology of Nalunaq
Resources Indicated resources total 535,000 tonnes at 18 g/t for approximately 315,000 oz gold and are based on data derived from underground drifting and systematic sampling at 1-3 m intervals. Indicated resources have a payability factor of 80% recoverable, in line with previous production performance. A total of 5,000 m of on-vein development has been completed in strike drives and raises within the Main Vein structure. A total of 2,440 channel and chip samples have been collected during the exploration stages and a further 3,400 chip samples have been taken in the faces of strike drives and slot raises since production commenced in 2004. Indicated and inferred resources at Nalunaq are summarized in the following table. The most significant difference to previous estimates is that indicated resources are now included from the Upper Block. This is due to the fact that mining development has advanced into this area and therefore activated substantial indicated resources, which are based on continuous sampling along surface outcrops. In addition, a small contribution is added from underground development near the 500 m level. The South Block is slightly expanded due to new underground development while the Target Block shows a reduction of approximately 50,000 ounces, largely due to mining depletion.
Nalunaq Ore Resources as at December 31, 2006
Reserves Probable reserves are a subset of indicated resources and are defined where stope layouts have been completed following sublevel drift and raise development. The design of stopes is based on closely spaced sampling and assignment of actual grades from at least three sides of individual blocks, using a cap of 300 g/t Au. Current probable ore reserves total 205,000 tonnes at 18.8 g/t Au for 124,000 ounces contained gold. A mining recovery factor of 84% has been applied for expected losses in pillars and other unrecoverable areas. A gold price of USD 575 per ounce has been used in the estimation of ore reserves. Nalunaq Ore Reserves as at December 31, 2006
Quality Assurance and Control and Qualified Person and notes to resource and reserve estimates
Ore processing Ore from Nalunaq is shipped to the Nugget Pond processing facility in Newfoundland, Canada. The Atlantic crossing to Nugget Pond is 600 miles. Before the acquisition of the Newfoundland facility, the ore had to journey for a substantially lengthier distance to the El Valle plant of Rio Narcea in Spain. Nugget Pond has proved to be an excellent choice of processing facility as shipments can occur more frequently than before, Crew has more control over costs, and the local workforce is experienced in the running of the mill. The company has invested approximately $8 million in refurbishing and modifying the Nugget Pond plant. The first shipment of ore to Nugget Pond left Nalunaq in February 2007 and the first gold pour occurred a month later. For the twelve months ended December 31, 2007, 161,514 tonnes of ore was shipped to Nugget Pond for processing. Drill results and inventory The exploration strategy for Nalunaq, ongoing since 2005, aims at continuously demonstrating more resources than are being mined out, so that measured and indicated resources can be maintained at a level of at least 200,000 ounces. In 2006, two areas were targeted as areas of potential expansion and each of these was identified as having the potential for expansion of resources to replace ore that has been mined. Resources at Nalunaq cannot be defined by drilling alone. In the past drilling has often proven to be an unreliable grade indicator. Low-grade intercepts have frequently been found in areas that subsequently proved to be of a higher grade. However, higher-grade drill intercepts have historically proven to be a good sign of higher-grade areas. This irregularity is the result of the high nugget effect of the narrow vein, which makes systematic sampling of drift faces the only viable source for resource calculations. Outlook for Nalunaq The Nalunaq operation is developing a solid platform from which to deliver improved performance and then stable production in the years to come. Management believes the improvements shown in the Nalunaq operation can be maintained through the continued implementation of the mine optimization project and associated cost reductions. See Page 29 for Crew’s health, safety, and environmental policies as they apply to Nalunaq and Nugget Pond and Pages 34 and 35 for Nalunaq and Nugget Pond’s social responsibility programs.
|
