Tahoe Resources

Tahoe Resources Inc. (TSX: THO, NYSE: TAHO) is a mining exploration company founded in Vancouver, BC by Kevin McArthur - former CEO of Glamis Gold and Goldcorp. It is now headquartered in Reno, Nevada.[1] Tahoe Resources is in the Industrial Metals and Minerals industry, and has more than 800 full-time employees[2]

Escobal Silver Mine

The Escobal project is a high-grade silver discovery located in Southeast Guatemala approximately 70 km. southeast of Guatemala City. In addition to silver, the mine contains sizable reserves of gold, lead, and zinc.[3] Tahoe Resources Inc. acquired the project in mid-2010 from Goldcorp for $505 million (USD) in stock and cash. In November 2010, Tahoe Resources released a Preliminary Assessment[4] of the project completed by M3 Engineering. As of 2012, it was estimated that the Escobal mine contained indicated resources of 27.1 million tonnes of ore graded at 422g/t silver, 0.43g/t gold, 0.71% lead, and 1.28% zinc. The mine contains an estimated 367.5 million ounces of silver, 373,000oz of gold, 192,000t of lead and 347,000t of zinc.[3] These figures have caused mining experts to suggest that the Escobal mine could become one of the largest silver producers in the world.[5] The Escobal mine is estimated to have a lifespan of 18 years, and it's expected that in its first 10 years, the mine will produce 20 million silver equivalent ounces per year.[3]

Underground development on the mine began in May 2011, and the exploitation license was granted in April 2013. Roughly 500 construction jobs were created with the mine's development. Mining operations began in September 2013, and the first precious metal concentrate shipment was sent on October 15, 2013. For the year ending December 31, 2013, Tahoe Resources announced that its net earnings for the year were $65.6 million ($0.45/share). During 2013, the company incurred $36.4 million in expenses for the Escobal Mine project.[6] Commercial operations began in January 2014.[3] Tahoe Resources announced a merger with Rio Alto Mining on February 9, 2015 for $1.12B. The merger was completed on April 1, 2015.

Escobal Mine Geology

The Escobal Mine is located outside the town of San Rafael las Flores, an area that ranges in elevation from 1,300 meters on the western end of the Escobal Vein to 1,800 meters in the drilled east extension. To the north and east, the Montaña Soledad Grande mountain range rises to an elevation of 2,600 meters.[7] The mine lies in the southern portion of the Motagua fault system, an area that has experienced numerous volcanic events that have deposited dacitic, andesitic, and basaltic flows. The flows lie in layers, and are separated by layers of fine- to medium-grained sediments. The silver, lead, gold, and zinc deposits are contained within quartz veins.[3]

Experts suggest that the mine's width enables bulk-style mining methods, resulting in ease, and therefore lower costs, of production.[8] Economic assessments performed a few months after production began estimate that the life-of-mine total cash costs should be less than $5 per ounce, after byproduct credits from gold and base metals are taken. This creates profit margins that are among the highest in the industry.[9]

Alleged Role in Violence Related to Escobal Mine

Local residents' resistance to the El Escobal silver mine project led to violent clashes in Spring 2013. Fears about pollution and water contamination, and about potential damaging effects to the way of life in the area, which is primarily agricultural, caused many local residents to protest the mine's development. The surrounding communities voted against the project in 2011, but the vote was non-binding, and development proceeded.[10]

In April 2013, a series of peaceful protests began, in which residents of San Rafael held stand-ins on the public road near the mine. On April 27, seven people were shot when security guards working at the Escobal Mine opened fire on 20 protesters. The media reported that Alberto Rotondo, Tahoe Resources' Security Chief for the Escobal project, was caught in a wiretap giving direct orders to murder local opponents of Tahoe's mining project.[11] On April 30, Rotondo was arrested at La Aurora Airport in Guatemala City, apparently trying to flee.[12] Tahoe Resources representatives claimed that Rotondo was not fleeing the country to avoid prosecution, but rather that his attempt to leave shortly after being recorded ordering the murder of local residents was a "coincidence."[13] Another member of the security team also was arrested and charged with concealment.[12]

The seven men who were shot filed a civil lawsuit against Tahoe Resources in June 2014, alleging that Rotondo ordered the shooting, and that Tahoe Resources was legally responsible for the shooting. The suit alleged battery and negligence, and that the shooting, during which security personnel in riot gear emerged from the mine and opened fire, pursuing the fleeing protesters down the public road, was premeditated. Rotondo was criminally charged in Guatemala with obstruction of justice, causing minor and serious injuries, and mistreatment of a minor.[12]

Tahoe Resources has maintained that it is not responsible for the shootings. In May 2013, the company released a statement that said its own investigation had uncovered that security had taken only non-lethal measures—tear gas and rubber bullets.[14] Tahoe Resources CEO Kevin McArthur commented in the statement that, "While many of these [anti-mining protests] have been peaceful and respectful, violence from outside influences has escalated in the past weeks since we received our operating permit." The statement also indicated that the 20 protesters were armed with machetes, and that the protest had turned hostile. McArthur stated that the government was investigating the incident, with Tahoe Resources' full cooperation. As of May 2013, the mine employed 665 workers, 96 percent of whom were Guatemalan.[15]

Key People[16]

Board of Directors[16]

A. Dan Rovig, Board Chair
Kevin McArthur
Lorne B. Anderson
Paul B. Sweeney
Jim S. Voorhees
John P. Bell
Kenneth F. Williamson
Tanya Jakusconek

Offices

Vancouver, BC, Canada
Reno, Nevada, USA
Guatemala City, Guatemala
San Rafael las Flores, Santa Rosa, Guatemala, CA

Company Website

See also

References

  1. ↑ "Tahoe Resources Inc. Company Profile". Yahoo! Finance.
  2. ↑ "Working at the Escobal Mine - More than Just a Job". Nosotros - Tahoe Resources' Corporate Social Responsibility Blog. Tahoe Resources, Inc. Retrieved 6 August 2014.
  3. ↑ 3.0 3.1 3.2 3.3 3.4 "Escobal Silver Mine, Guatemala". Mining Technology. Kable. Retrieved 14 July 2014.
  4. ↑ "Tahoe Resources Inc. Associated Documents". Sedar Preliminary Assessment. Sedar. Retrieved November 2010.
  5. ↑ Jamasmie, Cecilia (Jan 14, 2014). "Tahoe’s Escobal silver mine reaches commercial production". MINING.com. Retrieved 14 July 2014.
  6. ↑ Tahoe Resources, Inc. http://www.tahoeresourcesinc.com. Retrieved 5 August 2014. Missing or empty |title= (help)
  7. ↑ "Escobal". Tahoe Resources, Inc. Retrieved 5 August 2014.
  8. ↑ Groh, Doug. "Interview with Doug Groh". The Gold Report. Streetwise Reports. Retrieved 5 August 2014.
  9. ↑ Wright, Scott. "Tahoe Resources: A New Silver Major Is Born". Seeking Alpha. Retrieved 5 August 2014.
  10. ↑ "Guatemalan officer killed in clash at Tahoe Resources mine". Agence France-Presse. The Globe and Mail. Retrieved 17 May 2013.
  11. ↑ "Malditos perros". Prensa Libre. Retrieved 17 May 2013.
  12. ↑ 12.0 12.1 12.2 "Guatemalans file lawsuit against Canadian Tahoe Resources for 2013 shooting". Mining.com. June 18, 2014. Retrieved 5 August 2014.
  13. ↑ "Tahoe denies security chief arrested, calls media reports inaccurate". Mineweb. Moneyweb Holdings Limited. Retrieved 17 May 2013.
  14. ↑ The Canadian Press Staff (June 18, 2014). "Guatemalans sue Vancouver's Tahoe Resources Inc. after mine shooting". The Canadian Press. Retrieved 5 August 2014.
  15. ↑ Gostin, Ira (May 1, 2013). "Tahoe Clarifies Reports Regarding Incidents Near Escobal Project". Tahoe Resources, Inc. Retrieved 5 August 2014.
  16. ↑ 16.0 16.1 "Management Team". Tahoe Resources, Inc. Retrieved 5 August 2014.

External links