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By: Salma Tarikh and the Shahuindo mine. The agreement includes Tahoe’s right to match any superior bids, and termination fees of $37.8 million payable to Tahoe and $20 million payable to Lake Shore, if the other party breaks the contract. “We’re at our full production numbers now. The Mine includes two deposits, the Timmins Deposit and Thunder Creek Deposit, which are approximately 800 metres apart and are connected by two drifts. The Bell Creek mill processes ore from both operations. The increase in production at Timmins West Mine compared to a year earlier was primarily a result of higher average grades. Tahoe Resources (TSX: THO; NYSE: TAHO) is set to buy Toronto-based junior producer Lake Shore Gold (TSX: LSG; NYSE-MKT: LSG) in a $945-million, all-share bid, with analysts on both sides of the deal approving.
On the acquisition news, Lake Shore Gold shares rose 5% to $1.57, and Tahoe shares fell 6% to $10.91. Last year, it produced a total of 179,600 oz. And obviously, Lake Shore is going to benefit on the back of a strong cash-generating machine in the form of Escobal,” he says, adding that Tahoe is paying a “fair price” for the Canadian junior. Shahuindo, an initial 10,000-tonne-per-day operation, is set to hit commercial production in the second quarter.
Raymond’s Thompson agrees that chances for a competing bid are low, noting majors tend to go for bigger producers, and that the intermediate players are “all pretty pregnant in terms of what they are working on.” He points out that B2Gold (TSX: BTO; NYSE-MKT: BTG) is busy expanding into Africa, Eldorado Gold (TSX: ELD; NYSE: EGO) has its “boat full” with Greece and that Lake Shore would have been a “great acquisition” for OceanaGold (TSX: OGC) if it hadn’t picked up Romarco Minerals last year. non-commercial production from the 144 Gap zone, near the Timmins West mine. “There aren’t many companies that have the horsepower Tahoe has … a clean balance sheet and cash-flow capability, and the need to acquire a North American asset,” Thompson says. Timmins West Mine was in commercial production as of January 1, 2012. The shaft at Bell Creek won't mean adding to its workforce, though.
Broken ore is removed from the stopes using remote controlled LHDs, loaded into trucks and hauled to the main shaft rockbreaker station prior to skipping to surface.
If the deal closes, Tahoe’s 2016 gold count would total 370,000 to 430,000 oz., at all-in-sustaining costs of US$950 to US$1,000 oz. Tahoe’s gold production will come from La Arena (170,000 to 190,000 oz.) The Bell Creek Mill processes ore from both operations. “Our near-term goal will be to increase gold production to over 500,000 oz.
This year, Lake Shore is targeting total production of 170,000 to 180,000 oz. The Q1/15 production was 27% higher than the 33,900 ounces produced during Q1/14 (215,900 tonnes at an average grade of 5.1 grams per tonne). During Q1/15, the Company mined a number of higher-grade stopes in the Rusk and Ultramafic zones due to mine sequencing, and also benefited from improvements in grade control, which lead to positive grade reconciliations in several areas. producer. A crowd of people were gathered to see the nontraditional ribbon cutting for the mine shaft, which involved the ribbon being cut by the cage travelling up the shaft. In addition, there are several royalties applicable to various land areas comprising the Timmins West Mine. The understanding of the West Timmins Camp is evolving rapidly and the West Timmins Mining Inc. is positioned to be a major player in this evolution. The shaft at Bell Creek won't mean adding to its workforce, though. “It is a decent, reasonable bid,” Haywood Securities’ analyst Kerry Smith, who covers Lake Shore, writes in an email. Timmins West Mine has potential for growth.
Most of the additional royalties do not cover areas of known mineralization, with the exception of a 1% NSR royalty applicable to production at the Thunder Creek Deposit. In the first quarter of 2015, a total of 43,000 ounces of gold was produced at Timmins West Mine, as a result of processing 230,600 tonnes of ore at an average grade of 6.0 grams per tonne. “Geologically, the area has long been considered favourable for the finding of gold deposits, as it lies directly along the strike of formations exposed in the Porcupine fields, in which the famous Hollinger and McIntyre mines are located.” Once in full swing, it would be an annual 75,000 oz.
Escobal. February 10, 2016 The project includes 30 known zones of gold mineralization and has two active joint ventures, one with Lake Shore Gold Corp. and the other with Goldcorp Inc. Timmins West Mine is an underground mining operation that produces ore using a 710 metre, 5.5 metre diameter shaft, with a 6,000 tonne per day total hoisting capacity. Ore from the Mine is trucked approximately 42 kilometres to the Bell Creek Mill for processing (see Bell Creek Mill section). It will require approval from two-thirds of Lake Shore’s shareholders, and from a simple majority of Tahoe’s shareholders. “We’re at our full production numbers now. The Timmins Mines include the Timmins West Mine and the Bell Creek Mine and Mill complex, located in Timmins, Ontario, one of the world's most prolific gold camps. gold from La Arena. Mine rescue volunteers from Tahoe Canada Timmins West & Bell Creek Mines did not earn the most silverware, but they did earn gold hard hats from Ontario Mine Rescue, a part of Workplace Safety North (WSN), as the overall winners of the 69th annual Provincial Competition in Matachewan, near Kirkland Lake. Last year Tahoe cranked out 20.4 million oz. Your email address will not be published. Unfortunately, we could not get stock quote LSG this time. — “are too small to do it.” While Goldcorp (TSX: G; NYSE: GG) is rumoured to be interested, Smith reasons, it is unlikely the major will make a move, as it has a new CEO and Lake Shore is a “pretty small” producer.
“We’re just over 200 people here, (and) 670 in the camp as a whole,” he said. Almost 80 years later the results of the Ontario Government’s Discover Abitibi Project have confirmed that the rocks of the Lower Tisdale Group, which host the world famous Hollinger, McIntrye and Dome Mines, are also exposed in the West Timmins Camp.
Volume 102 Number 1 Feb 15 - 21, 2016. (Commercial production at 144 Gap should begin in the second half.) Production in 2014 was largely from the Ultramafic Zone at Timmins Deposit and Rusk Zone at Thunder Creek. Tahoe plans to keep paying a monthly dividend of US2¢ per share. The mill can treat 4,000 tonnes per day, with Tahoe looking to expand to 5,500 tonnes next year for US$30 million. at all-in sustaining costs of US$870 per oz., below its US$950 target. Timmins West Mine. Primary mining methods include longitudinal longhole mining at Timmins Deposit and Thunder Creek Rusk Zone, and transverse longhole mining at the Thunder Creek Porphyry Zone. “It seems a win-win for both companies,” Raymond James analyst Chris Thompson, who covers Tahoe, says in an interview.
gold a year; and expanding the Bell Creek mill. – J. E. Hawley, 1926 describing the geology of the West Timmins Camp Marie MPP Ross Romano, Timmins-James Bay MP Charlie Angus, Timmins MPP … The increase would come from moving 144 Gap to production; ramping up Shahuindo to 36,000 tonnes per day in 2018 to produce up to 170,000 oz.
Lake Shore operates the Timmins West and Bell Creek gold mines near Timmins, Ont. Once combined, Tahoe would boast four low-cost mines; a global resource of 10.4 million oz. The West Timmins Gold Project covers over 114 square kilometres completely surrounding Lake Shore Gold’s TimminsWest discovery. In Timmins, Tahoe also operates the Timmins West mine. Production at Timmins West Mine is subject to a 2.25% net smelter returns (“NSR”) royalty in favour of Franco-Nevada Corporation.
Both Timmins Deposit and Thunder Creek have considerable exploration potential both at depth and along strike.