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REGIONAL NEWS - LATIN AMERICA
Caspiche Project Study Positive on Oxide-Sulphide Development
Korean JV to Buy 20% of Cobre Panama Project Inmet Mining announced that Korea Panama Mining Corp. (KPMC) has elect- ed, under an option agreement, to acquire a 20% interest in the Cobre Panama development project in Panama, leaving Inmet with an 80% interest. KPMC is a joint venture between LS- Nikko Copper (LS-Nikko) and Korean Resources Corp. (Kores). The option agreement was announced October 28, 2009, and enables KPMC to acquire a 20% interest in the project for invest- ment of approximately $155 million. The transaction was expected to close by the end of February 2012.
Development of Exeter Resources' Caspiche gold/copper/silver project, pictured here, in northern Chile will cost an estimated $4.8 billion for an open-pit mine/heap-leach operation.
Exeter Resource Corp. has reported the results of a positive prefeasibility study (PFS) for combined development of the oxide and sulphide ores at its Caspiche gold-copper-silver project in northern Chile. The study follows an earlier, posi- tive, stand-alone, oxides-only PFS that the company completed in June 2011 (
, July-August 2011, p. 16). The new study predicts an average annual production of 696,000 oz of gold, 244 million lb of copper, and 844,000 oz of silver over a 19-year mine life. The study is based on proven and probable gold reserves of 19.3 million oz and proven and probable copper reserves of 4.6 bil- lion lb.
Capital expenditures to develop the project are estimated at $4.8 billion. The oxides-sulphides PFS evaluated three mining and processing options for the Caspiche deposit. All options in- cluded an open-pit to mine the near-sur- face, heap-leachable ore. The preferred development option is an open-pit opera- tion processing 150,000 mt/d of sul- phide ore and a heap-leach operation at an initial design production rate of 72,000 mt/d. The PFS envisages the heap leach operation will start before the main concentrator, with the leachable ore
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being removed as part of the pre-strip- ping operation.
A key component of the PFS is the inclusion of high-tonnage, in-pit crushing and conveying (IPCC) systems for the movement of waste rock. The cost savings per ton of total material moved using the IPCC system instead of a large truck fleet is estimated at about $0.25/mt, or $0.80/mt of ore mined. In addition to the operational savings, Exeter estimates an initial and sus- tainable capital saving of approximately $1 billion by building the tailings dam wall largely from a conveyor-stacker system rather than using conventional truck haulage for material movement. The waste dump would form the backbone of an engi- neered tailings dam face and provide a sig- nificant margin of safety in the event of an earthquake or other event.
The oxide ore and some low-copper sulphide ore would be treated in a con- ventional valley-fill heap leach operation. The sulphide orebody would be pro- cessed through a conventional concen- trator. The copper concentrate produced would be treated in an offsite roaster to ensure that its arsenic content is below 0.2%. Additional gold recovery would be achieved by leaching the flotation scav- enger tailings.
After closing, KPMC will continue to fund its 20% of development costs and will enter into an off-take purchase agreement, enabling KPMC to purchase 20% of Cobre Panama's concentrate pro- duction on arm's-length market terms, subject to KPMC arranging for related financing.
Inmet announced in December 2011 that the government of Panama has approved the Environmental and Social Impact Assessment required for develop- ment of the Cobre Panama copper pro ject, including the mining operations and related infrastructure, a port facility, and a coal-fired power plant. Inmet Mining announced on July 25, 2011, its board of directors approved development of Cobre Panama (
, September
2011, p. 18). Production is forecast at 255,000 mt/y of copper, 90,000 oz/y of gold, 1.51 million oz/y of silver, and 3.2 million lb/y of molybdenum in concen- trate over a 30-year mine life.
Hochschild Advancing Two Projects in Southern Peru Hochschild Mining has received positive feasibility studies from Ausenco for its Inmaculada and Crespo projects in southern Peru. During the coming year, work will focus on engineering, permit- ting, and construction activities at both projects, with startup of both projects planned for the fourth quarter of 2013.
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