(Aris Mining, 27.Nov.2023) — Aris Mining Corporation (TSX: ARIS) (NYSE-A: ARMN) announces updated mineral reserve estimates for its Segovia Operations in Colombia effective 30 Sep. 2023 (the “2023 Mineral Reserve”).
This updated mineral reserve estimate follows the updated mineral resource estimate announced on 2 Nov. 2023. Aris Mining is also increasing the capacity of the Maria Dama processing plant within the Segovia Operations from 2,000 to 3,000 tonnes per day (tpd). As we have an existing unutilized ball mill on site, the costs for the plant expansion are estimated at $11mn and completion is expected by early 2025.
Neil Woodyer, CEO of Aris Mining, commented “We are pleased to announce a 75% increase to the high-grade mineral reserves at the Segovia Operations to 1.3 million ounces of gold at 11.63 grams per tonne. Based on our current operating profile, the updated estimate extends the reserve-only mine life to nearly seven years. Like other operations with extensive vein systems within a large mining title, we expect to continue to extend mine life through ongoing exploration programs.
Based on the increased mineral resource and reserve estimates, we are implementing a small-scope project to increase the processing capacity by 50% to 3,000 tpd at the Maria Dama plant by utilizing a previously purchased ball mill that is already on-site. This creates the potential to gradually increase annual gold production from 200,000 to 300,000 ounces, as we fill the extra capacity by increasing our mining rates. A portion of this extra capacity will be allocated to our artisanal and small-scale mining partners, offering processing solutions to them, while mitigating the environmental impacts of informal mining in Segovia.”
Segovia Operations – Maria Dama processing plant expansion
The capacity of the Maria Dama processing plant is currently 2,000 tpd following an expansion project from 1,500 tpd completed in 2022. The plant includes crushing, grinding, gravity concentration, gold flotation and regrind, cyanidation, Merrill-Crowe precipitation, and smelting of the precipitate and gravity concentrate to produce gold-silver doré.
The current project to expand to 3,000 tpd includes a previously purchased ball mill which is already onsite and the re-location and upgrade of the facilities that receive material from our artisanal and small-scale mining partners. The costs for construction are estimated at $11mn, with the construction timeline forecasting completion by early 2025. The addition of the ball mill to the existing circuit enables both higher throughput and more effective use of the current facilities, thereby enhancing the overall gold recovery rate for all processed materials. The new receiving facility for partner mined material is designed to increase volumes and efficiency.
Segovia Operations – mineral reserve estimates
Table 1 summarizes the 2023 Mineral Reserve effective 30 Sep. 2023, a comparison to the 2022 Mineral Reserve effective 31 Dec. 2022, and several years of previous mineral reserve estimates.
The significant increase in the 2023 mineral reserve estimate as compared to 2022 is primarily the result of the increase in the measured and indicated mineral resource estimate effective 30 Sep. 2023, as described in the news release of 2 Nov. 2023.
The Segovia Operations’ current operating profile within the mineral reserve zones includes owner mining at a rate of 1,050 tpd and partner mining at a rate of 350 tpd. The shallowly dipping, 1.2 m wide veins are first mined by Aris Mining employees using room and pillar and long wall methods to extract around 70% of the high-grade ore with a minimum mining height of approximately 1.2 m to optimize ore recovery and minimize dilution. The remaining pillar material is then extracted by our contractor and artisanal and small mining partners and purchased by Aris Mining based on the prevailing market price of gold and the recoverable gold grade of the mined material, incentivizing both productivity and higher grade material. Overall, this mining method achieves total ore recovery of between 90 and 95%. In addition, approximately 500 tpd is purchased by Aris Mining from partners operating outside the Segovia Operations’ mining titles.
Aris Mining will file an updated NI 43-101 compliant technical report in support of the 2023 Mineral Reserve and mineral resource estimates for the Segovia Operations on or before 17 Dec. 2023.
Technical Disclosure and Qualified Person
The technical information in this news release was reviewed and approved by Pamela De Mark, P.Geo, Senior Vice President, Geology and Exploration of Aris Mining, who is a Qualified Person as defined by NI 43-101. Ms. De Mark has verified the sampling, analytical, and test data as well as the geological interpretation underlying the information or opinions disclosed in this news release. Ms. De Mark has fully verified the sampling, analytical, and test data as well as the geological interpretation underlying the information or opinions disclosed in this news release by way of analysis of the data and the geological interpretations while preparing the mineral resource estimate and reviewing the mineral reserve estimate.
Unless otherwise indicated, the mineral reserve estimates, scientific disclosure, and technical information included in this news release are based upon information included in the following documents and NI 43-101 compliant technical reports:
- for the mineral reserve estimate effective 31 Dec. 2017, the technical report entitled “NI 43-101 Technical Report, Prefeasibility Study, Segovia Project, Colombia” dated May 10, 2018 and prepared by SRK Consulting (US), Inc.;
- for the mineral reserve estimate effective 31 Dec. 2018, the technical report entitled “Amended NI 43-101 Technical Report, Prefeasibility Study Update, Segovia Project, Colombia” dated 8 Jul. 2019 and prepared by SRK;
- for the mineral reserve estimate effective 31 Dec. 2019, the technical report entitled “NI 43-101 Technical Report, Prefeasibility Study Update, Segovia Project, Colombia” dated 14 May 2020 and effective as of 31 Dec. 2019 and prepared by SRK;
- for the mineral reserve estimate effective 31 Dec. 2020, the technical report entitled “NI 43-101 Technical Report, Prefeasibility Study Update, Segovia Project, Department of Antioquia, Colombia” dated 13 May 2021 and effective as of 31 Dec. 2020 and prepared by SRK;
- for the mineral reserve estimate effective 31 Dec. 2021, the technical report entitled “NI 43-101 Technical Report, Prefeasibility Study, Segovia Project, Antioquia, Colombia” dated 6 May 2022 and effective as of 31 Dec. 2021 and prepared by SRK; and
- for the mineral resource estimate effective 31 Dec. 2022, the mineral reserve estimates of the Segovia Operations is summarized, derived, or extracted from the news release of the Company dated 3 Mar. 2023.
All of the documents referenced in this news release are available for review on the company’s website at www.aris-mining.com and on the company’s profile on SEDAR+ at www.sedarplus.ca
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