The Ixtaca Deposit: Exploration and
Mining Process
Exploration
Almaden is an exploration company that searches for new unknown mineral resources.
Exploration starts with concepts about where mineral deposits could be. Concepts need to be
proven. Almaden has invested a lot of time and money into proving a new geologic concept in
Mexico. The company has focused for more than 10 years in Eastern Mexico, evaluating
thousands of locations before selecting areas with potential for minerals to acquire.
The area of the Tuligtic project had not been claimed and in 2001 Almaden was able to acquire a
mineral lease over a 14,000 hectare area from the Federal Government of Mexico. In Mexico
mineral leases can be acquired any Mexican individual or company. Mineral leases give rights to
the minerals under the ground, subject to government royalties and taxes, but do not allow access
to the surface, the right to explore or mine. Surface access requires agreement with surface land
owners if any. Exploration and Mining require permits from Mexican government agencies. In
order to keep mineral leases taxes need to be paid and since 2001 Almaden has paid over
$US200,000 dollars in claim taxes.
No gold or silver mineralization was evident at Tuligtic when Almaden acquired the claims,
however subtle geologic indications like clay deposits suggested that gold and silver could be
below the surface. To prove this concept Almaden drilled a hole in 2001 using its ecologically
low impact diamond drill rig. This first hole showed that significant gold and silver exists
underneath the ground. Since 2010 Almaden has drilled over 400 holes to understand the size
and shape of the gold and silver mineralized body. This program has cost about $US20,000,000.
In the exploration phase the Mexican environmental agency SEMARNAT issues permits for
exploration work to be conducted. These permits require the Company to submit its exploration,
impact and remediation plans with respect to flora, fauna and surface and subsurface water.
Preliminary Economic Assessment
In April 2014, Almaden released a Preliminary Economic Assessment (PEA) for the Tuligtic
project. The PEA is commonly referred to as a scoping study that is conceptual only and
prepared to evaluate whether or not a mineral deposit has the chance to be an economic mine.
The PEA was positive and identified the case for the potential development of a mine. It also
recommended further studies to reduce uncertainties identified with the available information
and what additional information and work is required before proceeding further. The PEA does
not provide the plan for development of a mine.
Pre-feasibility
The positive PEA means that a more detailed examination of the property is warranted. The next
step is a detailed engineering and environmental study called a Pre-Feasibility Study, designed to
examine environmental, social and economic issues. The purpose of pre-feasibility study is to
determine what additional data is needed for a full feasibility study. It’s important to note that
these studies do not indicate whether a mine may be developed. This is simply an exercise in
gathering as much empirical data as possible to make the most informed and responsible
decision.
Feasibility
After the pre-feasibility study has been completed, a full feasibility study can be done. As
required by Mexican law an environmental review known as an Environmental Impact Statement
(EIS) is conducted. An EIS is an assessment tool that describes the positive and negative effects
of the proposed mining project. The EIS may list a series of alternatives for such project aspects
as facility location, access routes and mitigation measures. The Plan of Operations and resulting
EIS work in concert to outline the economics and profitability of the mining project while taking
into account environmental mitigation and specific plans of operation. After these documents
have been prepared they are submitted to the government regulatory agencies for review,
comment and approval.
Permitting
If the decision to move forward with the project is made then an extensive permitting process
with federal, state, and local agencies is required to develop the site as well as all of the activities
associated with a potential mine.
Construction
If the participating agencies approve the project permits and if all the necessary funds are
secured, then construction of the mine may proceed in accordance with the Plan of Operations
and other permits. During construction the highest numbers of workers are employed and
depending on the size of the project, construction can take a number of years to complete.
Production
After construction a mine management team takes over the operation and runs the daily process.
It’s important to note that in some cases exploration could still continue on the property
depending on the project.
Mine Closure
Depending on the project, mine closure can take several years. The conversion process involves
three main phases:
1.
Dismantling the infrastructure. This phase involves removing structures such as
the mill site, offices, and other structures used during exploration, development and
production.
2.
Environmental reclamation. This is the process by which land is restored to a
natural or economically usable purpose to ensure the site is physically and chemically
stable. The preparation and planning for reclamation takes place prior to a mine being
permitted and reclamation activities continue throughout the life of the operating mine
3.
Post-closure management. This phase will monitor the success of reclamation and
closure activities.