The Northern Miner March 28 2016 Issue

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Geotech_Earlug_2015_VTEM_Colour3.pdf 1 2015-09-25 9:59:47 AM

VTEM™ ZTEM™ Gravity Magnetics Radiometrics Data Processing Interpretation 905 841 5004 | geotech.ca

GOLD RUSH CHALLENGE

ZONTE METALs

SGS Geostat team takes the top prize / 5

Bogged down in Colombia dispute / 11

BRENT COOK

Problems facing retail investors / 16

MARCH 28-April 3 , 2016 / VOL. 102 ISSUE 7 / GLOBAL MINING NEWS · SINCE 1915 / $3.99 / WWW.NORTHERNMINER.COM

Barrick fined for Veladero cyanide spill

Building confidence in Argentina will take time

Argentina

policy

| Key players gather to negotiate

| Court moves forward with criminal charges

By Trish Saywell & Elena mayer

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or the last 25 years, Charles Koppel, a law student-turnedbusinessman born in South Africa and based in London, has evaluated and invested in business opportunities around the world. He set up his first company — a media concern — in China in 1992. His other interests have spanned telecoms, sports (he co-owned the Wimbledon Football Club until 2004), entertainment, gaming, oil and gas, and mining (his family has been involved in South Africa’s mining industry since the 1970s). Ten years ago, an acquaintance invited Koppel to Argentina to look at an oil project. It was Koppel’s first trip to the South American country. He didn’t think the oil project was a good fit and settled on finding mineral projects instead. He brought over a South African team that he knew and trusted to evaluate opportunities and set up Samco Resources in 2006. A year later, he crossed into northern Chile, acquiring properties in the Antofagasta region and near Copiapo in partnership with Manuel Feliu — a successful Chilean businessman and a former minister of mines in that country. It was a good partnership. Feliu introduced opportunities and Koppel arranged financing. In 2008, Koppel looked at mining opportunities in Peru. Assets from all three countries were combined into the privately held Samco Resources Ltd. Koppel was about to take Samco Resources and its Chilean properties public on the London Stock Exchange in mid-2008, but the financial crisis got in the way. In 2009, Samco Resources sold its Chilean assets to a wealthy Chilean family looking to diversify their assets and Samco Resources officially exited Chile. Koppel retained Samco Resources’ assets in Peru and spun off the Argentine assets into Samco Gold Ltd. In early 2011, Koppel acquired what is today considered the company’s primary asset in Argentina, the 80 sq. km El Dorado–Monserrat epithermal gold project in Santa Cruz province’s Deseado Massif region, 10 See argentina / 2

Drilling at the Veladero gold project in Argentina in 2008.   Barrick Gold

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By Trish Saywell & Elena Mayer BUENOS AIRES, ARGENTINA

arrick Gold (TSX: ABX; NYSE: ABX) has been fined $9.8 million for a cyanide spill that took place at its Veladero gold mine in Argentina’s San Juan province in September 2015. A provincial court is also moving forward with criminal charges against nine current and former Barrick employees in connection with the spill. The accident occurred when a valve failure released solution into the Potrerillos River, a small waterway next to the mine’s leach pad. Barrick says the solution held freshwater and diluted cyanide. The Potrerillos River runs alongside the mine and into the Las Taguas River, which f lows into the Rio Blanco River. The nearest communities are 150–185 km downstream from the mine. In a press release on Sept. 30, Barrick estimated that 1,072 cubic metres (1.1 million litres) of the solution entered the river, but that cyanide “made up only a small fraction of the total volume.

“At no time did cyanide levels in the downstream river system, near communities, exceed 0.1 part per million total cyanide — the legal limit for safe drinking water in Argentina, and in line with international standards,” the company stated. In the days after the Sept. 13 spill, Barrick reported that no cyanide had been detected in the river system downstream from the mine since Sept. 15, and that even though no risks to human health were identified, it provided drinking water to three small communities downstream on the Blanco River. Barrick ran a water-monitoring program and dispatched a team of leading technical and environmental specialists to help with the response. Since the spill, Barrick says it has implemented a “comprehensive action plan to strengthen controls and safeguards at the mine, while addressing the causes of the solution release.” Among

these actions are intensified water monitoring, adding heat controls and pressure-sensing equipment to manage freezing risks, new procedures related to leach-pad operations and more water management controls. The company said in its news release on Sept. 30 that while the investigation was ongoing, preliminary results determined that solution from the failed valve entered the mine’s Northern Diversion Channel, next to the heap-leach pad area, and that a gate on the channel was open at the time of the leak “for reasons that are still being investigated.” The open gate helped the solution bypass a containment pond and enter the Potrerillos River. “We recognize that we have disappointed many of our partners in San Juan province and we deeply regret this incident,” Kelvin Dushnisky, Barrick’s president, said in a March 11 press release announcing the fine. “Undoubtedly the incident that took place at Veladero has contrib-

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See barrick / 3

Interview: One-on-One with the NWT PREmier / 4

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