Sydney Mining Club News & Events

Rewind back to 2006 and mining executive Wayne Hubert liked the look of Andean Resources’ Cerro Negro gold project in Argentina so much that he recommended the company he then worked for, Meridian Gold, to buy the project.  Meridian’s board didn’t agree, so Hubert quit the company he’d been with for 14 years and joined Andean. Hubert’s hunch that Cerro Negro looked very similar to Meridian’s outstanding El Penon discovery/operation continues to firm with Cerro Negro rapidly evolving into what many would say is the most exciting gold exploration project on the planet.

High grade gold continues to be found with each campaign and projected production cash costs are less than $US200 an ounce.  At the current gold price and planned production rate of 250,000oz per annum, Cerro Negro will be printing money.  Analysts are tipping accelerated exploration could significantly boost the 2.5-3 million ounce gold-silver resource inventory and support an even more aggressive development.   However,  Salt Lake City-based Hubert, a chemical engineer from South Africa, isn’t keen to overplay his hand – for now.  “I’d prefer to start smaller and expand it, build something good and profitable, get the workforce up to speed, and then expand incrementally,” Hubert says. “I think that is a more prudent approach than trying to hit the ball out of the park.”

The big question though is, does Hubert have time on his side?  At Meridian, El Penon proved so attractive the company was ultimately bought out by Yamana Gold for $US3.5 billion the year after Hubert exited.  In a world short of quality gold discoveries, are there other Victor Kiam’s lurking in the M&A teams of the majors and aggressive North Americans?  Hear Wayne Hubert’s take on Cerro Negro and its role as the flagship of the new gold province shaping up in windy Patagonia at the Sydney Mining Club in May – not to be missed!