United States
Cripple Creek & Victor (CC&V)
Key statistics
| Cripple Creek & Victor | 2010 | 2009 | 2008 | |
|---|---|---|---|---|
| Pay limit* | (oz/t) | 0.007 | 0.008 | 0.008 |
| (g/t) | 0.23 | 0.28 | 0.27 | |
| Recovered grade | (oz/t) | 0.013 | 0.013 | 0.014 |
| (g/t) | 0.43 | 0.46 | 0.49 | |
| Gold production | (000oz) | 233 | 218 | 258 |
| Total cash costs | ($/oz) | 493 | 376 | 309 |
| Total production costs | ($/oz) | 610 | 475 | 413 |
| Capital expenditure | ($m) | 73 | 87 | 27 |
| Total number of employees | 646 | 562 | 421 | |
| Employees | 403 | 367 | 350 | |
| Contractors | 243 | 195 | 71 | |
| All injury frequency rate | (per million hours worked) | 12.26 | 15.80 | 30.19 |
* Recoverable pay limit based on recovered grade.
| Outlook for 2011 | ||||
|---|---|---|---|---|
| Production | (000oz) | 300 – 314 | ||
| Total cash costs | ($/oz) | 541 – 561 | ||
| Capital expenditure | ($m) | 72 |
Gold production
(000oz)
Capital expenditure
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Total cash cost
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Total number of employees*
Description
Located in the state of Colorado in the United States, CC&V's Cresson Project is an open-pit operation which treats extracted ore through a heap-leach pad, and is one of the largest in the world. Production at this operation began in 1994. AngloGold Ashanti holds a 100% interest in CC&V.
In 2009, construction began on the mine life extension (MLE1) project. The project will provide four additional years of production capacity to the heap-leach pad. Production from the expanded heap-leach pad area is expected to begin in 2011 and proceed through to 2016 at current mine production rates.
Operating performance
Production increased by 7% to 233,000oz from 218,000oz in 2009. A total of 20.7Mt of ore was placed on the heap-leach pad, compared with 18.7Mt in 2009.
The increase in production resulted from the greater availability of the pad area near the liner following the removal of a truck load-out bin to another location. This change shortened the percolation time of the gold-bearing solution from the ore placed in this small, newly-lined area. In addition, successful test programmes were undertaken to improve leach conditions at depth via deep injection into the pad to remediate an issue identified during the 2008 pad drilling programme. The injected solution improves alkalinity and cyanide availability at depth to allow favourable conditions for leaching residual gold into solution. The injection programmes are to be expanded, given their early success. Given the size of the pad, recovery of residual gold is expected to continue for several years.
Total cash costs increased 31% to $493/oz, due primarily to the higher unit cost for the new ounces placed, rising commodity prices (diesel fuel in particular), and increased royalty costs, driven by higher gold prices.
Capital expenditure for the year amounted to $73m (2009: $87m), spent mainly on equipment and pad facilities for the implementation of the MLE1 project.
Growth prospects
In 2008, CC&V was granted permits from the State of Colorado and Teller County for a mine-life extension (MLE1) that includes the development of new sources of ore and an extension to the heap-leach facility. The permits extend the operation of the expanded valley leach facility and closure and reclamation activities. Development drilling continues to further define areas of interest. Engineering analysis and permitting requirements were evaluated as part of a prefeasibility study for a second mine-life extension (MLE2) completed in late 2010. This new project will involve milling the higher-grade ores and heap-leaching the lower-grade ores in a new valley leach facility. The MLE2 project will, after receiving all required approvals, extend the mine life to 2025 and possibly beyond.
Outlook for 2011
Gold production is expected to increase to between 300,000oz and 314,000oz, at a total cash cost ranging from $541/oz to $561/oz as MLE1 implementation places new ore on the new pad space near the liner. Capital expenditure of $72m is scheduled for the year, to be spent mostly on major mine equipment purchases and the implementation of the MLE1 project.
Sustainability
Safety
CC&V continued to report a strong safety performance. The all injury frequency rate for 2010 improved to 12.26 per million hours worked (2009: 15.80). There were no fatalities during the year.
CC&V has implemented various safety programmes in recent years, including the Safety Transformation Programme in 2009. In 2010, the mine developed and implemented its own Safety & Environmental Observation Programme where all employees provide written observations on best practices, as well as on deficiencies at the operation. In addition to immediate responses to these deficiencies, the employees’ observations are reviewed and acted on by the management team at weekly meetings. The programmes have been implemented to ensure continued improvement in the safety performance at CC&V. Project ONE was rolled out in 2009 and further positive results are expected over the two-year implementation process.
Community and environment
CC&V and the Victor Lowell Thomas Museum finished a successful season of mine site tours. The museum managed reservations, safety training and advertising while CC&V provided tour guides and buses. Tour fees collected were donated to the museum. The 2010 tours were 96% full, doubling revenues and visitation for the museum. The greater number of visitors to the museum has increased Victor’s foot traffic, leading to increased sales for local businesses. This initiative by CC&V contributes to the town’s viability and sustainability.
CC&V continued to be recognised as a Gold Leader in the State of Colorado’s Environmental Leadership Programme, the first mine in Colorado to attain that level of recognition. In addition, CC&V’s Environmental Management System was again recommended for continued certification under the ISO 14001 standard. In September 2010, the operation was recognised by the International Cyanide Management Institute (ICMI) to be recertified “In Full Compliance” on all nine principles of the International Cyanide Management Code (ICMC). No reportable environmental incidents took place in 2010.