Toronto- and New York-listed Aris Mining expects to achieve the lower-end of its full-year production guidance of 220 000 oz to 240 000 oz, having produced just short of 100 000 oz in the first six months of the year.
The Colombia-focused miner’s production dipped to 99 983 oz in the first half of 2024, from 104 906 oz in the same period last year.
The Segovia mine produced 88 613 oz and the Marmoto Upper mine yielded 11 370 oz in the six months.
"Our Segovia processing facilities performed well during Q2, consistently achieving over 2 000 t/d of throughput. As previously disclosed, the Segovia Operations were moving through relatively low-grade zones in the production schedule, and higher-grade zones are now being mined,” said Aris CEO Neil Woodyer.
During the second quarter Aris made meaningful progress with its expansion projects at Segovia and Marmoto. These expansions would push the company’s production to about 500 000 oz/y by the second half of 2026.
At Segovia, expansion of the processing plant will increase throughput capacity by 50% from 2 000 t/d to 3 000 t/d, enabling the mine to produce 300 000 oz/y of gold.
“We are on track for construction completion in early 2025, followed by a ramp-up period. Our updated capital cost estimate for the project is $15-million, resulting in an excellent return on invested capital,” said Woodyer.
At Marmato, as at the end of May 2024, Aris has spent $30-million out of the $280-million construction budget for the Lower Mine. Of the remaining $250-million, $122-million will be funded by stream financing. The stream financing is subject to capital expenditure milestones defined as 25%, which is expected to be achieved in the third quarter of this year, 50% and 75% of projected completion, with $40-million in funding occurring following achievement of each of the first two milestones and $42-million on achievement of the last.
The Lower Mine project is on track for first gold pour by the end of 2025, followed by a six-month ramp-up period.
In addition to the Lower Mine construction progress, Aris is transforming the Upper Mine production plan by transitioning the operation of the Upper Mine to contract mining partners, which mirrors its successful operating model at Segovia.
At Soto Norte, the company now owns 51% of the project following successful completion at the end of June 2024 of the previously announced transaction to acquire an additional 31% of the project. Since closing, the firm has been focused on integrating the administration and management of Soto Norte into the Aris Mining structure. Feasibility level studies are under way on a new, smaller scale development plan, and results are expected in early 2025.
“We are excited about the transformational near-term growth we will deliver over the next two years through the Segovia and Marmato expansions, while progressing Soto Norte to unlock our next growth project for 2027 and beyond."