Micon was engaged by shareholders of a company that owned a dormant gold mine in the Rouyn-Noranda district of Quebec. The owners lacked access to the capital necessary to redevelop the mine. Our brief was to prepare an estimate of fair market value (FMV) of the property in order to facilitate a proposed share transaction.

Micon’s Approach:

The Property is located in a jurisdiction where transactions involving gold properties frequently involve publicly-listed companies. Therefore, it was possible to gather the details of several comparable transactions, and the Market approach using comparable transactions was adopted as the most appropriate valuation method in this case.

The property had no current mineral reserves or production plan, so the Income method was inappropriate for use in establishing FMV. Nevertheless, Micon used an earlier published study as the basis of a conceptual cash flow model for internal use, in order to test the reasonableness of a valuation based on comparable transactions.

The property is a past producer with a long history of exploration and development. However, Micon concluded that any valuation based on historical costs would not properly reflect FMV of the Property, and the Cost approach was not applied.

Results:

Using a set of comparable transactions, Micon was able to derive a FMV for the property by determining the statistical relationship between the grade of gold resources and their market value per ounce of gold. The range of FMV of the resource was then estimated from statistical error in the estimate at the 90% confidence level. Lastly, reasonableness of the FMV results was confirmed by comparison to the net present value of the conceptual cash flow projection.

The Client successfully effected a transaction that has led to renewed development of this property.

The post (Confidential) Valuation of a Dormant Gold Mine appeared first on Micon International.

Micon has been engaged on numerous occasions to provide litigation support and expert witness services in the mining and mineral resource sector. Our clients include mining companies, legal firms, government departments, and investors requiring independent technical opinions or expert analysis in support of litigation, arbitration, or regulatory proceedings. Commodities covered through this work have included gold, tin, phosphate, zinc, lead, silver, copper, iron ore, and potash. These engagements have involved projects located in a range of jurisdictions, including Canada, the United States, Peru, Panama, Russia, Mongolia, and other regions such as Chile, Argentina, and Alaska. The scope of our support has ranged from the preparation of expert reports and independent technical opinions to the review and critique of third-party reports and testimony, as well as courtroom participation.

Micon’s Approach:

Micon takes a clear, practical approach to litigation support. Depending on the case, we may be asked to prepare our own expert reports or to review and comment on work done by others. This can include technical reports, resource and/or estimates, project valuations, or engineering studies. We focus on whether the methods used are appropriate, whether the conclusions are reasonable, and if accepted industry standards are adhered to. Where appropriate we conduct site visits to aid in our understanding of the project and the client’s needs.

We work closely with legal teams to make sure our work fits the needs of the case and is presented clearly. If needed, our team is experienced in giving testimony and attending hearings to explain our findings.

Results:

Micon’s litigation support services have contributed to the resolution of complex disputes by providing clear, well-reasoned, and objective technical analysis. Our work has supported successful outcomes for clients in matters involving project valuations, ownership disputes, environmental liabilities, and claims of misrepresentation or negligence. The credibility of our reports and the qualifications of our experts have been instrumental in establishing trust and confidence in both private and governmental proceedings.

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Micon has been working with Anglesey Mining on their Parys Mountain Project since 2006, providing ongoing support through various phases of project development. This work has included the preparation of a Scoping Study in 2017 and a Preliminary Economic Assessment (PEA) in 2021, including comprehensive reviews of the project’s geology and mineralisation, mineral resources, mining, metallurgical testwork, and processing and associated economic analyses.

In 2023, Micon was commissioned to prepare an updated Mineral Resource Estimate (MRE), incorporating results from the latest 2022 drilling campaign on the Morfa Dhu Zone to assess the viability of the Cu-Pb-Zn-Au-Ag sulphide deposits.

Micon’s Approach:

Micon first reviewed and assessed the QAQC data for the new infill drilling to confirm its suitability for use in resource modelling. The geological wireframes, provided by the client, were validated to ensure they appropriately captured the extent of potentially mineralised material. This process involved cross-referencing the wireframes with assay grades, lithological logs, and broader geological interpretations. Within these geological wireframes, Micon constructed grade domain wireframes to distinguish between high-grade mineralisation, lower-grade zones, and internal waste, thereby providing a solid framework for grade estimation.

Ordinary Kriging was used to interpolate copper, lead, zinc, gold, and silver grades into a rotated block model in three passes. For each pass, search ellipse parameters were adjusted to reflect increasing search distances, and restricted neighbourhood parameters were employed to limit the influence of isolated high-grade assays and reduce the risk of grade smearing. The block model was then validated using a combination of visual inspection and statistical analysis, including comparisons against de-clustered composite data and swath plots. Bulk density was estimated through a regression model based on interpolated copper, lead, and zinc grades, allowing for spatially variable density values that reflect the mineralisation characteristics.

Mineral Resources were classified as Measured, Indicated, or Inferred in accordance with the JORC Code (2012), based primarily on drill hole spacing and the continuity of geological and grade data. The final MRE incorporated a Net Smelter Return (NSR) cut-off grade of US$45.15/t to meet the requirement for reasonable prospects for eventual economic extraction (RPEEE). Tonnages and grades were further constrained by applying diluted stope shape wireframes, providing a realistic basis for future mine planning and project evaluation.

Results:

Micon declared Measured, Indicated and Inferred Mineral Resources for the Morfa Dhu Zone. The Measured and Indicated Mineral Resources totaled 5.3 Mt (23% Measured and 70% Indicated) and contained 213,000 t of combined Zn/Pb/Cu, 4.8 Moz silver and 48 koz gold, including 1.6 Mt at 2.5% CuEq in the Engine Zone.

The updated MRE will provide the Client with a foundation for the Project Pre-Feasibility Study, which will incorporate an optimized mine design layout, results from recently commenced metallurgical testwork and preliminary engineering designs for a dry-stack tailings facility.

The Client intends to undertake a similar resource update process for the large Northern Copper Zone including additional drilling.

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Polymetal International PLC (now Solidcore Resources) engaged Micon to prepare an independent Competent Person’s Report (CPR) on a selection of its producing gold assets in Kazakhstan to support a proposed primary listing of those assets on the London Stock Exchange (LSE). The CPR was required to meet the disclosure standards outlined in the UK Financial Conduct Authority’s Technical Note 619.1 and follow the JORC Code (2012) reporting framework.

Micon’s scope involved site inspections and technical assessments of the Bakyrchik deposit and processing plant at the Kyzyl Operation in eastern Kazakhstan, and the Varvarinskoye and Komarovskoye deposits and infrastructure at the Varvara Hub in the west. The CPR had to provide an independent and transparent evaluation of the assets’ technical and economic parameters based on historical and current data, updated Mineral Resource and Ore Reserve estimates, and long-term mine planning. It also needed to reflect operational strategies in place, including the planned transition to underground mining at Kyzyl and the continued development of open pit operations at Varvara.

Micon’s Approach:

Micon conducted site visits to both the Kyzyl and Varvara operations to observe mining activities, processing facilities, and supporting infrastructure, and to meet with site personnel. At Kyzyl, the team reviewed the Bakyrchik deposit and refractory ore processing plant. At Varvara, the team assessed the open pit operations at Varvarinskoye and Komarovskoye and the central processing facilities. These inspections informed the review of current mining practices, plant performance, and future development plans.

A detailed technical review followed in line with JORC Code (2012) and UK FCA guidance. The CPR included assessments of geology and exploration data, Mineral Resources and Ore Reserves, open pit and underground mining methods, metallurgical testwork, plant performance, infrastructure, ESG factors, and economic analysis. Micon also reviewed the proposed transition to underground mining at Kyzyl, confirming the suitability of the planned cut-and-fill method for the deposit’s geometry and geotechnical conditions.

Results:

Micon’s review confirmed that the Kazakhstan operations are supported by reliable geological data, sound mine plans, and consistent plant performance. The Bakyrchik deposit is currently mined by open pit, with a planned shift to underground mining around 2030. The cut-and-fill method was deemed appropriate for selective extraction of irregular ore bodies. Gold recoveries from the Kyzyl plant ranged from 88% to 90%, with concentrate grades of 77–99 g/t Au, depending on feed grade. These figures were supported by testwork and plant data from 2018 to 2022.

At Varvara, the Varvarinskoye open pit is planned to produce 9.4 Mt of ore over 11 years at an average grade of 1.15 g/t Au and 0.64% Cu, with a strip ratio of 8:1. The Komarovskoye pit is expected to operate until 2030, mining 17.9 Mt of ore at 1.61 g/t Au and a strip ratio of 12:1. Micon concluded that the Life-of-Mine plans are realistic and achievable based on past production and current plant performance. The CPR established a clear technical foundation for Solidcore’s proposed listing, with a valuation effective as of 1 April 2023.

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Micon was engaged by AzerGold CJSCo to conduct a DFS on the Front End Engineering Design (FEED) of the Chovdar Integrated Gold Project, Azerbaijan. Micon’s scope consisted of providing technical support during drilling and metallurgical testwork, performing an independent Mineral Resource and Ore Reserve estimates in accordance with the JORC (2012) Code and undertaking the FEED and cost estimation.

The main challenge of the Chovdar Integrated Project was the complexity of integrating various ore types from different deposits and the construction of new infrastructure. Specifically, the project had to account for transitional sulphide and oxide ores from the Chovdar deposit and multiple surrounding satellite deposits, and the integration of a new processing plant, tailings management facility and associated infrastructure.

The core business objective was for the project to be able to produce a combined total of 60,000 oz of gold per annum.

Micon’s Approach:

Micon conducted Mineral Resource Estimates for Chovdar and its surrounding satellite pits to determine what could be considered to have reasonable prospects for eventual economic extraction (RPEEE), in accordance with JORC (2012).

Detailed pit optimisation was completed for all deposits which exhibited RPEEE, and final pit and pushback designs were generated. The financial and operating conditions inputs were based on current production data and detailed engineering estimates. Micon defined a LOM plan which fulfilled Azergold’s objective of 60,000 oz of gold per annum.

In terms of metallurgical processing, Micon conducted various tests to determine the most effective treatment options for different ore types, including heap leach, conventional CIL (Carbon-In-Leach), flotation, and BIOX® process. For the comminution process, several flowsheets were examined, including various crushing and milling configurations, to optimize the plant’s efficiency.

The design of the process plant itself considered factors such as equipment grouping, maintenance access, gravity flow, and material flow, all aimed at maximizing operational efficiency and minimizing costs.

Results:

Micon declared Indicated and Inferred Mineral Resources and Probable Reserves for the deposits which make up the Chovdar Integrated Project. Indicated Mineral Resources totaled 37.1 Mt and contained 1,365 koz gold. Inferred Mineral Resource totaled 9.9 Mt and contained 324 koz gold. Probable Reserves totaled 11.53 Mt at a gold grade of 1.60 g/t Au. In addition to the ore, the pit contains 37.13 Mt of waste resulting in a strip ratio of 3.22 waste tonnes per tonne of ore.

An 8-year strategic LOM plan was defined to exploit the Chovdar deposit and its Satellite deposits. The total gold ounces estimated to be produced over the LOM from the Integrated Project is 452,000 ounces (187 koz from heap leaching and 264 koz from CIL).

The DFS and FEED determined that the preferred process to recover gold from low-grade oxide material is through standard heap leaching and to treat high-grade oxide, transitional and sulphide ore using conventional CIL. Furthermore, the DFS concluded that the optimum gold extraction and economical return is achieved when the gold and sulphur contents are used to classify the ore from the various deposits for extraction through heap leaching or CIL.

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As a globally integrated commodity trading and investment group, Traxys Europe S.A. routinely evaluates opportunities for debt financing, equity participation, and offtake agreements across a wide portfolio of mineral projects. These opportunities span various commodities, technical maturities, and jurisdictions, often under tight decision-making timelines.

To support its investment strategy and commercial partnerships, Traxys requires independent, techno-economic due diligence to assess the technical, operational, and financial viability of prospective projects. This includes identifying key risks, validating public and internal technical disclosures, and assessing the project’s alignment with Traxys’ strategic and commercial objectives.

Micon has been engaged on multiple occasions to conduct tailored due diligence reviews across polymetallic, base, and industrial metal projects. These assessments have covered underground and open pit operations, processing facilities, and projects at various stages. Projects assessed include ramp-up, restart and expansion scenarios  in countries such as North Macedonia, Australia, Turkey, Finland, and Mexico. Each engagement required a bespoke approach, depending on the nature of the opportunity and the role Traxys intended to take, from financing to operational partnership.

Micon’s Approach:

Micon applied its Technical Due Diligence Framework – a structured, risk-based methodology tailored to the scope and commercial context of each engagement. The process began with a high-level “fatal flaw” screening, focused on core technical pillars such as mineral resources and reserves, mining methods, processing design, infrastructure readiness, and ESG factors. Where warranted, this was followed by targeted, site-based investigations to evaluate critical risks and validate key assumptions.

Each discipline was assessed using specialised methodologies. In geology and resources, Micon reviewed or constructed 3D geological models, evaluated QA/QC protocols and classification logic, and assessed the reliability and relevance of historical data. For mining and life-of-mine planning, our reviews examined method suitability, dilution and recovery assumptions, stope or pit design criteria, and operational efficiency.

Metallurgical due diligence focused on the adequacy of testwork, recovery projections, and flowsheet logic. Where relevant, Micon cross-checked financial model inputs against technical findings, benchmarked CAPEX and OPEX estimates, and assessed permitting status and ESG compliance.

This integrated approach, linking technical analysis to commercial outcomes, enabled Traxys to make informed decisions, identify and mitigate legacy risks, and move forward with confidence in complex and often fast-moving opportunities.

Results:

Micon’s due diligence analyses provided Traxys with technically grounded evaluations that directly shaped investment decisions and informed risk mitigation strategies. Across multiple projects, Micon identified material deficiencies in geological data quality, reserve classification practices, and grade control execution. These findings triggered targeted remediation efforts in areas such as resource modelling, permitting approach, and mine planning.

Micon’s independent assessments supported recalibration of mine designs, processing flowsheets, and throughput assumptions, contributing to more accurate asset-level valuations. In selected cases, cost benchmarking and input sensitivity analysis enabled scenario testing of project viability and operating flexibility. These insights allowed Traxys to quantify technical and commercial risks, sharpen deal structuring, and prioritize high-impact improvements post-acquisition. Micon’s work helped ensure alignment between project fundamentals and Traxys’ strategic investment criteria under real-world operating conditions.

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The client required a fast-tracked Preliminary Economic Assessment for the Blue Moon project, a zinc-copper deposit located within a geographically constrained site in California. With an aggressive timeline of approximately three months, the goal was to develop a credible, high-quality PEA that could also support ongoing permitting and exploration planning.

Micon’s Approach:

To meet the client’s tight three-month timeline, Micon employed a focused and collaborative execution strategy. Our multidisciplinary team worked efficiently across mining, processing, and infrastructure disciplines to keep all key components moving in parallel.

For the mining scope, Micon completed MSO analysis, mining method selection, and detailed mine design using Datamine StudioUG and EPS. Long-hole stoping with paste backfill was selected as the preferred method, with a production rate of 1,800 tonnes per day. Ramp access, ventilation planning, scheduling, and portal location were all tailored to the site’s constrained footprint.

In processing, a conventional circuit was defined based on historical metallurgical testwork, including SAG and ball milling, copper and zinc flotation, and concentrate filtration. Tailings were directed to a dry-stack storage facility, with a portion used for paste backfill.

Infrastructure planning addressed power supply from a nearby hydroelectric source, water recycling systems, and road upgrades. The design emphasized environmental protection, operating efficiency, and compatibility with future permitting and development phases.

Results:

The Preliminary Economic Assessment was delivered on schedule, highlighting a compelling economic case for the Blue Moon deposit, with an After-Tax NPV8% of US$244M, and an After-Tax IRR of 38%. Beyond the core deliverable, Micon continued to support the client with technical guidance for permitting processes and facilitated engagement with a contractor for a follow-up exploration development program.

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A critical first step in the project was the development of a comprehensive and JORC-compliant mineral resource estimate. This involved the integration of extensive historical and recent drilling data into a validated geological model, providing a robust foundation for classifying Indicated and Inferred resources and supporting the overall technical and economic viability of the project.

The primary challenge was identified as the assessment of the technical and economic feasibility of developing an underground potash mine with minimized environmental impact, while taking advantage of existing nearby infrastructure. The project required alignment with strict environmental regulations and community expectations.

 From a geotechnical standpoint, particular emphasis was placed on the long-term stability of underground openings within potash-bearing formations. These deposits, especially those rich in sylvinite, were recognized to exhibit time-dependent creep behavior, where continuous deformation and convergence occurred under sustained stress over time.

Micon’s Approach:

Micon initiated its work by developing a detailed and defensible mineral resource estimate in accordance with the JORC (2012) Code. This process involved the rigorous validation and integration of historical and modern drill hole data, construction of a 3D geological model, and definition of estimation domains. A geostatistical block model was then generated to support resource classification, resulting in a well-constrained estimate comprising both Indicated and Inferred categories. This resource model provided the technical foundation for subsequent mine design, scheduling, and economic evaluation.

Multiple mining methods were then evaluated. A hybrid approach combining Continuous Miner (CM) units using a Chevron extraction pattern with Drill & Blast (D&B) was selected to optimize resource recovery, reduce labor intensity, and improve safety. The CM method was prioritized in areas with favorable geometry, while D&B was reserved for zones where CM application was less effective.

To reduce surface disturbance and capital costs, underground ore processing was proposed. This included underground crushing and leaching, with slurry transport to the surface. This strategy eliminated the need for costly shaft refurbishment and minimized the project’s surface footprint.

The process plant site was strategically located near existing rail infrastructure to optimize logistics. Additionally, the mine and plant layout were heavily influenced by environmental and permitting requirements, with a goal of achieving zero brine discharge and full backfilling of tailings underground.

From a geotechnical perspective, Micon accounted for the time-dependent creep behavior of sylvinite seams. This behavior was integrated into mine design, support strategies, and the backfilling plan to ensure the long-term stability of underground openings.

Results:

Micon’s work resulted in the development of a robust, JORC-compliant mineral resource model that provided a sound basis for mine planning and economic assessment. This was followed by the design of an optimized life-of-mine extraction strategy using advanced modeling tools, supporting the implementation of a hybrid Continuous Miner and Drill & Blast approach. By relocating ore processing underground and leveraging existing infrastructure, the project significantly reduced capital and operating costs. Additionally, the integration of a full backfilling strategy and elimination of surface brine discharge contributed to a substantial reduction in the project’s environmental footprint compared to previous designs.

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